Janine Cox, Wealth Within

BUY RECOMMENDATIONS

Fairfax Media (FXJ)

Chart: Share price over the year to versus ASX200 (XJO)

The share price fell from an all time high of $5.78 in March 2000 to 35 cents in 2012. From a technical perspective, provided the share price holds above 52 cents, the probability of a recovery grows stronger. Note that FXJ is a high risk play, but the current analysis indicates that it has the potential to trade between 70 cents and 78 cents in the second half of 2014. The shares were trading at 63.5 cents on December 5.

Stockland (SGP)

Chart: Share price over the year to versus ASX200 (XJO)

One way for young people to get exposure to property without having to pay hefty sums in stamp duty is through property stocks, which have a long way to go to catch pre-GFC prices. Stockland is a property stock that has pulled back to take a breather along with the market. It has the potential to continue up towards $4.50 into 2014. The shares were trading at $3.79 on December 5.

HOLD RECOMMENDATIONS

Sydney Airport (SYD)

Chart: Share price over the year to versus ASX200 (XJO)

SYD has been trending up nicely to challenge its all-time high of $4.36 in October 2007. The gap up on the weekly chart in September indicated that short term, the price would come back to fill that gap. It was trading at $3.83 on December 5. So watch carefully and consider selling some shares to take profits if the price continues to retreat.

Investa Office Fund (IOF)

Chart: Share price over the year to versus ASX200 (XJO)

Investors holding IOF experienced a wild ride over the past year, with the share price trending to $3.44 by May 2013 before falling to $2.72 in just seven weeks, followed by a rebound to $3.29 in November. The stock is due to go ex-dividend in late December, which could lead to a further fall. However, provided the price holds above support at around $3, the recommendation stands. The shares were trading at $3.07 on December 5.

SELL RECOMMENDATIONS

Caltex (CTX)

Chart: Share price over the year to versus ASX200 (XJO)

CTX is still trading in a holding pattern below resistance at $20. Therefore, the sell recommendation is conditional on a breakout below $18 as this would mean the share price is likely to head lower. CTX can be incredibly volatile, but a great set of trading rules can be found by back testing. The shares were trading at $19.03 on December 5.

National Australia Bank (NAB)

Chart: Share price over the year to versus ASX200 (XJO)

If you are looking to take some profits, recent rises in the big banks are quite extended, having broken into all-time highs, or, in NAB’s, case being near historical levels. NAB has dipped below the weekly trend line, which is generally followed by a further decline. The shares were trading at $34.10 on December 5.

 

Sean Conlan, Macquarie Private Wealth

BUY RECOMMENDATIONS

Ozforex Group (OFX)

Chart: Share price over the year to versus ASX200 (XJO)

OFX is a high quality business with a strong growth outlook. It shares several similarities with other successful online businesses that have gained significant market shares from entrenched incumbents through providing a focused, more efficient and lower cost service.

QBE Insurance (QBE)

Chart: Share price over the year to versus ASX200 (XJO)

Following uneventful hurricane and crop seasons, QBE will likely have scope to strengthen the balance sheet at the 2013 financial year result through boosting risk margins back to, or above, 90 per cent.

HOLD RECOMMENDATIONS

James Hardie Industries (JHX)

Chart: Share price over the year to versus ASX200 (XJO)

This building products company continues to provide investors with exposure to the US, Australian and New Zealand residential construction sectors. All end markets are showing improving performances. JHX offers investors continuing exposure to the US housing recovery.

Qantas Airways (QAN)

Chart: Share price over the year to versus ASX200 (XJO)

Given the ongoing competitive environment and sluggish economy, QAN is yet to see the benefits from numerous cost improvements, efficiency gains and the ongoing agreement with Emirates.

SELL RECOMMENDATIONS

Forge Group (FGE)

Chart: Share price over the year to versus ASX200 (XJO)

We believe Forge, an engineering group, requires equity and history indicates that the first estimate for contract losses on fixed price contracts isn’t often the last.

AMP (AMP)

Chart: Share price over the year to versus ASX200 (XJO)

All indications are that challenges within the life insurance industry are yet to bottom. Despite share price underperformance, AMP isn’t at an attractive enough valuation to disregard further earnings risks.

 

Andrew Arvanitopoulos, Alpha Securities

BUY RECOMMENDATIONS

Sydney Airport (SYD)                     

Chart: Share price over the year to versus ASX200 (XJO)

We expect growth to be supported by more arrivals and new services. October traffic on the international and domestic fronts was solid. The company offers several revenue streams from car parking to retail. Any improvement in the global economy should help.

QBE Insurance Group (QBE)

Chart: Share price over the year to versus ASX200 (XJO)

The recent profit downgrade in its US division caught the Australian market by surprise. However, we expect the insurance giant will recover over time under new management. After Monday’s news, the stock isn’t for the risk averse. But this may be a good entry point for those wanting to take a chance on the longer term. The shares were trading at $11.22 on December 10. 

HOLD RECOMMENDATIONS

BHP Billiton (BHP)                       

Chart: Share price over the year to versus ASX200 (XJO)

We see the US onshore business making a significant longer term contribution to the company against the backdrop of strong US gas demand growth from 2016 onwards. This global diversified miner is worth holding in a balanced portfolio.

Vision Eye Institute (VEI)

Chart: Share price over the year to versus ASX200 (XJO)

Provides laser eye surgery and other related services. The company’s significant cash flows provide organic growth and acquisition opportunities. On most of our investment metrics, Vision is undervalued relative to its peers.       

SELL RECOMMENDATIONS

Webjet (WEB)                             

Chart: Share price over the year to versus ASX200 (XJO)

Since late July, the share price has significantly fallen after disappointing full year results followed by a subdued outlook. Webjet announced that earnings (EBITDA) would be basically flat at $21.5 million, when previous estimates had been for a 15 per cent-to-20 per cent increase and well below market estimates of $26.5 million.

Qantas Airways (QAN)                     

Chart: Share price over the year to versus ASX200 (XJO)

The business continues to face challenges in Australia and abroad. Plans by Virgin Australia to add more capacity is just one reason there appears to be little respite ahead.

Click on the links below to read other articles from this week’s newsletter

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Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.