Janine Cox, Wealth Within

BUY RECOMMENDATIONS

BlueScope Steel (BSL)

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

In 2011, the Federal Government provided emergency funds for BlueScope, as workers were being laid off. Now with global markets improving and the Australian dollar in decline, BSL’s share price is on the rise with potential to achieve $7.60 this year. The shares were trading at $5.58 on January 23.

Ten Network (TEN)

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

Media stocks have been catching my eye lately. It was Fairfax Media, which has done well. Now Ten is attempting to make its move out of a sideways trend at the bottom of a long term low. I caution this stock is for traders with knowledge of risk management.

HOLD RECOMMENDATIONS

National Australia Bank (NAB)

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

In the past 12 months, the big four Australian banks have delivered share price growth of at least 20 per cent. NAB has been the exception – outperforming by about 30 per cent. Why has NAB outperformed? In my opinion, it’s been seen as the underdog and, from a technical perspective, was catching up to the pack.

Fortescue Metals Group (FMG)

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

When a company’s performance is relying on its ability to drive down costs, does this mean lives could be put at risk? Two people have died at one FMG operation in the past six months and shareholders ought to be concerned. Technically, FMG has buyer support between $4.50 and $5. The shares were trading $5.26 on January 23.

SELL RECOMMENDATIONS

Transurban Group (TCL)

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

The toll road operator has enjoyed a good run, from a low of $4.54 in August 2011, but now may be the time to take profits. In October 2013, TCL appeared to be breaking out of a short term consolidation above $7.18, but the run failed and the price reversed. Historically, resistance at this level is strong and therefore the price needs to head back above $7.18 before I consider changing my view. The shares were trading at $6.77 on January 23.

Crown Resorts (CWN)

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

Crown achieved a very important price target at $18 this month. Therefore I believe that a profit stop ought to be in place to protect returns against a possible fall. If CWN closes at the end of any week below $16.50, it might be a good time to take part profits, or at $16, you might decide it’s time to take the lot off the table. The shares were trading at $17.72 on January 23.

 

Gavin Wendt, MineLife

BUY RECOMMENDATIONS

Legend Mining (LEG)

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

Recently announced the disposal of its vast Ngovayang iron ore project in Cameroon to India’s Jindal Steel and Power. The deal is a strong outcome. Legend’s current market value is $15.7 million, which includes cash and investments of $8.2 million. This will be boosted by $12 million of sale proceeds to $20.2 million and potentially by a further $5.5 million to $25.7 million if the deal’s second phase is completed.

Lamboo Resources (LMB)

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

Target 1 at the McIntosh graphite project in Western Australia has been upgraded to a JORC inferred and indicated resource of 7.135 million tonnes. Grading 4.73 per cent TGC (total graphitic carbon) for 337,700 tonnes, confirming potential for a 20-year mine life with further upside from targets 2, 5 and 6. The current resource is estimated from only 20 per cent of the graphite schist horizon at Target 1.

HOLD RECOMMENDATIONS

Ventnor Resources (VRX)

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

The company has executed a landmark funding deal with Sandfire Resources that will fast track development of its Thaduna/Green Dragon Copper Project. The deal removes the need for Ventnor to raise additional funding for mine development and comprises a farm in, funding and toll treatment agreement with Sandfire, utilising Sandfire’s modern production facilities at DeGrussa. 

Artemis Resources (ARV)

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

The company has achieved a significant milestone with its maiden JORC resource estimate at its Eastern Hills Antimony Lead Project in Western Australia. The resource is based upon results from the initial RC (reverse circulation) drilling program and comprises a combined indicated and inferred resource of 1.3 million tonnes at 1.7 per cent Sb (antimony) and 2.5 per cent Pb (lead). The higher confidence indicated resource has returned higher grades than expected.

SELL RECOMMENDATIONS

Kimberley Diamonds (KDL)

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

The company was one of the best performing stocks of 2013 and has continued its extraordinary run into 2014. It’s revamped what was an underperforming asset (the Ellendale diamond operation) and restored it to profitability. The company continues to remain one of our core portfolio holdings, but taking some profit can also be a shrewd move.

Paladin Energy (PDN)

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

The company has reached an agreement with lenders to refinance its Langer Heinrich and Kayelekera project finance facilities, reducing debt repayments by US$59 million over the next 18 months. The arrangements buy the company more time while waiting for a uranium price recovery, as it effectively extends the period at which Paladin can survive at the recently weak spot price of US$35 a pound. Nevertheless, the stock remains a sell.

 

Les Szancer, Blueribbonoptionsonline.com

BUY RECOMMENDATIONS

Lamboo Resources (LMB)

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

LMB recently announced it has entered into a memorandum of understanding with China Hengda. Hengda is one of the few suppliers of flake graphite in China. The MOU will give Lamboo access to new markets and reduce its costs, as Hengda will purify flake graphite at no extra cost.

Newcrest Mining (NCM)

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

This company was hit hard last year after disappointing on the earnings and production fronts. The softer gold price didn’t help, but I believe the precious metal will improve in 2014. NCM was trading at $9.36 on January 22. I believe this is likely to be a good entry point.

HOLD RECOMMENDATIONS

Woodside Petroleum (WPL)

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

This company recently signed a sales and purchase agreement with Japanese utility Chubu Electric Power to supply 1.5 million tonnes of liquefied natural gas. The share price has held up well. There is, however, quite a bit of resistance around $39.20. The shares closed at $38.15 on January 22.

Lynas Corporation (LYC)

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

A long time in the making, which seems to be a fact of life with rare earths mining companies. Lynas is producing and selling. Production is increasing each quarter. The shares tumbled during 2013, but the price started to pick up this year from its low of 28 cents. The shares closed at 32 cents on January 22.

SELL RECOMMENDATIONS

Ausdrill (ASL)

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

The company has lowered its 2014 full year profit forecasts. It now expects to report a net profit after tax of between $35 million to $45 million. In my view, this company faces too many challenges to remain in the stock. Investors could do better elsewhere. 

GPT Group (GPT)

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

This property group is financially strong. The dividend may persuade you to retain GPT, but I believe Telstra is a better option. The share price moves between $3.40 and $3.80 and is approaching resistance at $3.75. The shares were trading at $3.65 on January 23.

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.