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Janine Cox, Wealth Within

BUY RECOMMENDATIONS

Coca-Cola Amatil (CCL)


Chart: Share price over the year 

CCL is currently trading in a long term downtrend and below a trend line on the monthly chart, leaving potential further downside. But as CCL is trading above 50 per cent of its all-time high price of $15.40, a very important level, an opportunity may present. But first, it must break the downtrend line.

Stockland (SGP)


Chart: Share price over the year 

Property stocks have held up well relative to other sectors. Looking at the long term chart, a rise above this month’s high of $4.20 would indicate that SGP is on its way to the next high of around $4.50. The shares were trading at $4.09 on February 17.

HOLD RECOMMENDATIONS

Sydney Airport (SYD)


Chart: Share price over the year 

Short term, SYD is likely to trade sideways, which means it may be quite volatile in coming weeks. The share price may pull back to $6.30 or $6.05 in the short term. For medium to long term trades, consider managing SYD with a trend line on the monthly chart. The shares were trading at $6.43 on February 17.

Treasury Wine Estates (TWE)


Chart: Share price over the year 

TWE has enjoyed an incredible run, but recently reached an important milestone at around $9. Given this, now’s the time to prepare plans to manage risk in case the stock falls strongly from this level. The stock was trading at $8.875 on February 17.

SELL RECOMMENDATIONS

Boral (BLD)


Chart: Share price over the year 

Last year, BLD formed a bearish pattern on the monthly chart and provided several exit opportunities. Although the share price has been rising, a fall back below $5.25 would indicate that risk to the downside is significant. Shares in the building materials company were trading at $5.78 on February 17. 

Qantas Airways (QAN)


Chart: Share price over the year 

Although QAN may continue higher in the short term, be vigilant with exit rules and consider taking some money off the table if QAN completes a weekly close below $3.67, as this would indicate greater potential for further downside. The shares were trading at $3.905 on February 17.


Michael Gable, Fairmont Equities 

BUY RECOMMENDATIONS

Altium (ALU)


Chart: Share price over the year 

The electronics design software provider has been in an uptrend for the past few years, most recently bouncing off support several weeks ago near $4.40. Since then, it’s managed to rally more than a dollar, gapping up a few weeks ago above resistance. As long as any weakness is contained above $5, then ALU should continue to trend higher from this point. The stock was trading at $5.38 on February 17.

Goodman Group (GMG)


Chart: Share price over the year 

This integrated commercial and industrial property group has been respecting the uptrend since the 2009 low, including the recent market jitters. GMG could possibly head back to the lower part of the range near $6, but price action is starting to tighten, so downside is likely to be limited. If we see a solid break above the $6.50 region, then that should cause GMG to rally hard to above $7. We would turn negative on the GMG chart if we see it trade below $5.80. The shares were trading at $6.415 on February 17.

HOLD RECOMMENDATIONS

Cochlear (COH)


Chart: Share price over the year 

We looked at this hearing implants maker in November 2015 when it was at $80 levels and suggested it was due to join the $100 club. Now that COH has hit our target, we move to a neutral stance on the stock. Its first half results suggest the stock isn’t expensive, but around fair value. Because of better numbers, it now looks like the stock can head even higher than first thought to just above $110 before profit taking comes in. The shares were trading at $103.77 on February 17.

The Star Entertainment Group (SGR)


Chart: Share price over the year 

We tipped SGR here as a buy last month and it’s managed to go up 10 per cent while the overall market fell. The recent good half year results confirm our bullish bias and we can see SGR pushing up towards the high $5 levels from here. Shares in the casino and hotel operator were trading at $5.45 on February 17.

SELL RECOMMENDATIONS

QBE Insurance Group (QBE)


Chart: Share price over the year 

QBE had recently come back to the longer term support level just above $10. Instead of seeing good buying support, it managed to break below it. This could be a false break and may represent a low in QBE. However, the support level is a strong one, so if the buying doesn’t quickly return, then we’re inclined to think that QBE could fall towards the next support level near $8. The shares were trading at $10.05 on February 17.

REA Group (REA)


Chart: Share price over the year 

We have traded REA in the past year, taking profits as it hit resistance near $50. It managed to break that and rally to mid $50 levels, but that was short lived. REA reversed last month and formed a bearish engulfing pattern on the weekly candlestick chart. After trending higher for a while, the appearance of this reversal sign now indicates weakness for REA in coming months. The market’s reaction to its results was also disappointing, selling the shares down on large volume. We would expect to see lower support levels come in near $45 and then at $40. The shares were trading $50.96 on February 17.


Jeremy Hook, TMS Capital

BUY RECOMMENDATIONS

Amcor (AMC) 


Chart: Share price over the year 

This global packaging company has been a strong performer in recent years. With a solid 2015 behind it and offering a strong return on equity, 2016 shapes up as another year of growth. Trading on undemanding multiples, it should continue to rise toward $15. The shares were trading at $14.055 on February 17.

Macquarie Group (MQG) 


Chart: Share price over the year 

The company has been oversold in the recent market turmoil. Its diverse investment banking operations throughout the Americas, Europe and Asia are performing well and recent weakness provides a useful buying opportunity.

HOLD RECOMMENDATIONS

CSL (CSL) 


Chart: Share price over the year 

The blood products group reported an excellent profit, without delivering the short term earnings growth that would excite the market and drive the stock higher in coming weeks. We think the sleeper in this business is China. While the rest of the operation is performing strongly, a Chinese market option will be the reward for holding after an already strong share price performance this financial year.

ANZ Bank (ANZ)  


Chart: Share price over the year 

The bank has been heavily sold this year, while regulatory inquiries and business culture issues have resulted in negative publicity. But shareholders are more concerned about the Asian businesses failing to meet expectations. But at recent prices, these fears are overblown. We expect an 8 per cent per annum fully franked dividend yield, which should more than reward investors who hold the stocks.

SELL RECOMMENDATIONS

Sydney Airport (SYD) 


Chart: Share price over the year 

Although we like the stock and have been holding it for three years, SYD has become overvalued. Falling bond yields again have been the main contributor. Although passenger growth has been strong, we think revaluations based on bond yields at generational lows are risky and could result in the stock pulling back soon.

AMP (AMP) 


Chart: Share price over the year 

In our view, AMP is a chronic underperformer and continues to represent less value than alternative stocks in the diversified financial sector. Its return on equity is lower than other listed fund managers by some margin, and competitors outflank its various other businesses. Trading at $5.235 on February 17, we believe there’s better value elsewhere.

 

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