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Jonathon Howe, Red Leaf Equities

BUY RECOMMENDATIONS

Urbanise.com (UBN)

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

Offers a unique cloud based software product that’s changing the way facility management companies manage building services. UBN recently signed a hosted services agreement with NG Bailey, a leading independent engineering, IT and facilities service business in the UK. This is additional to other major contracts UBN signed with companies in Dubai, Australia and the UK. With EBITDA margins of more than 30 per cent, investors should consider adding UBN to balanced portfolios.

Disruptive Investment Group (DVI)

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

This company has multiple interests in online investments, including byojet.com and ibuynew.com.au. Both are showing excellent signs of early stage growth and profits. Byojet.com provides a one stop shop for online travel, such as flights, hotels, travel insurance, car hire and cruises. Ibuynew.com.au is an off the plan domain that only sells new property across Australia. Given the rate of property growth in the past 12 months, there’s ample opportunity for ibuynew.com.au to make serious inroads in this space.

HOLD RECOMMENDATIONS

Flexigroup (FXL)

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

A financial services group, providing finance products and payment solutions to consumers and business. On March 5, the shares were $3.70. On July 30, the shares were trading at $3.06. The stock looks attractively priced going into reporting season. On a recent yield of 5.5 per cent plus franking, it’s a decent income stock with potential to surprise on earnings growth.

Donaco International (DNA)

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

Completed the acquisition of the Star Vegas Resort in Cambodia. The acquisition has been touted as highly earnings per share accretive. Going forward, Star Vegas is expected to generate about 80 per cent of group revenue. Examine the financial results this month.

SELL RECOMMENDATIONS

Webjet (WEB)

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

This online travel agency recently announced total transaction value of $646 million for the six months to June 30, a 41 per cent increase on the previous corresponding period. The share price has also enjoyed a strong run, so now may be a good time to take some profits.

Woolworths (WOW)

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

Woolworths faces challenges on several fronts. Losses have been mounting in the troubled Masters hardware business. Apart from major rival Coles, ALDI is also a worthy competitor in the supermarket space. German giant Lidl is also set to join the Australian supermarket wars. The margins of existing supermarkets may be trimmed in response to a price war. Look elsewhere.

 

Gavin Wendt, MineLife

BUY RECOMMENDATIONS

Pilbara Minerals (PLS)

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

The share price has risen steadily from less than a cent a year ago to a recent two year high around 15.5 cents. The company has painstakingly progressed exploration, appraisal and pre-production activity on its WA tantalum and lithium assets. It continues to generate strong market support on the back of its looming transition to production status over the coming months. The shares were trading at 13 cents on July 30.

Kibaran Resources (KNL)

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

One of our favourite graphite sector exposures. It recently advised that its bankable feasibility study for its Epanko project in Tanzania was delivered on schedule and within budget. The results highlighted a robust production opportunity. Kibaran boasts graphite of the highest quality, opening up a lot more potential doors on the commercial front than many of its peers.

HOLD RECOMMENDATIONS

Talisman Mining (TLM)

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

In June, we recommended this company to thebull.com.au readers as a buy. On June 16, the share price was 17 cents. On July 30, the share price was trading at 70 cents. The share price has soared in response to further outstanding drilling results on its Sandfire Resources joint venture acreage in Western Australia. Diamond drilling has intersected massive sulphides containing visible chalcopyrite and copper mineralisation that’s similar in nature to the massive sulphides previously identified at Sandfire’s high grade DeGrussa mine.

Orinoco Gold (OGX)

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

An attractive emerging Brazilian gold producer, with outstanding project fundamentals. Orinoco’s Cascavel gold project is set for commissioning in early 2016, and will see the initial development of a relatively small scale, low cost start-up mining operation. Plans exist to increase both the gold resource base and mine life through cash flow funded exploration, minimising capital expenditure costs and overall risk exposure.

SELL RECOMMENDATIONS

Energy Resources of Australia (ERA)

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

Rio Tinto’s decision to shelve the planned Ranger 3 Deeps uranium development resulted in three ERA independent directors resigning. The development was to be ERA’s key value driver. With uncertainty over title, development appears unlikely anytime soon. We see little reason for investors to hold the stock.

Newcrest Mining (NCM)

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

Exposure to the problematic Lihir Island operation, acquired via its takeover of Lihir Gold a few years back, has been a burden. Despite an enormous gold resource base, the operation is both geologically and technically challenging. Free cash flow from the operation has been lean since its commissioning during the 1990s.

 

Janine Cox, Wealth Within

BUY RECOMMENDATIONS

Stockland (SGP)

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

Recently, property sector stocks have been sold off and many are close to confirming lows around long term trend lines, or major historical price support levels. Consequently, companies like Stockland are likely to rise over coming months. A strong rise above $4.30 is likely to represent the start of the next run. The shares were trading at $4.23 on July 30.

Challenger (CGF)

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

From a financial services perspective, there’s much to like about CGF to justify a higher price. The stock has risen from a recent low of $6.46 in June 2015 to be trading at $7.07 on July 30. Resistance is between $7.10 and $7.20. To confirm the rise is likely to continue, CGF must push through this zone.

HOLD RECOMMENDATIONS

National Australia Bank (NAB)

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

Banks have been challenged with holding higher capital levels to counter an increased risk from lending. However, as expected, they aim to recover some of the costs with higher fees. The NAB is holding above important support levels and is rising from recent lows. Retain the stock.

Commonwealth Bank (CBA)

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

Has been the strongest of the banks, and is one of the biggest lenders. CBA has been rising recently and, in the short term, it’s likely to continue higher to around $91. The stock was trading at $87.18 on July 30.

SELL RECOMMENDATIONS

Flight Centre Travel Group (FLT)

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

The shares were punished in response to a cut in profit forecasts. The company expects underlying profit before tax to be between $355 million and $365 million for the year to June 30, 2015. That’s down from $376.5 million in 2013/14. Lower gross margins and revenue are contributing factors to the downgrade. Given the shape of the chart and resistance overhead, FLT is more likely to struggle in the medium term.

OZ Minerals (OZL)

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

With the copper price still on the slide and trading below a long term trend line, OZL has fallen heavily below resistance around $4.10 to $4.20. Although OZL may rise in the short term, there’s a greater probability the share price will fall this year in our view. If this happens, OZL may trade below $3. The shares were trading at $3.78 on July 30.

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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.