Janine Cox, Wealth Within
BUY RECOMMENDATIONS Monadelphous Group (MND)
#FOTO:306865758:300#Chart: Share price over the year
This engineering group has been trading in a long term decline, which began in February 2013. But it now appears poised to move higher in the short term. A trade above $8 would provide an early indication of a move up. This isn’t a stock for the uneducated, rather a short term proposition for a trader with solid entry and exit rules, including sound money management. The shares closed at $7.93 on June 23. Virtus Health (VRT)
#FOTO:306865759:300#Chart: Share price over the year
This assisted reproductive services provider offered a solid entry in April 2016, when it broke clear of a sideways move. Short term resistance around $7.10 is holding the share price back, but a strong close at the end of any week, well clear of the line, would increase the probability of a further rise to around $8.40. The shares finished at $6.78 on June 23. HOLD RECOMMENDATIONS Goodman Group (GMG)
#FOTO:306865760:600#Chart: Share price over the year
Property stocks have been the solid performers in the past four years, and GMG is no exception. It’s risen by around 90 per cent since July 1, 2012. Looking at potential upside for the medium term, it’s likely to continue rising towards $10. The stock closed at $7.28 on June 23.
BHP Billiton (BHP)
#FOTO:306865761:600#Chart: Share price over the year
The global mining giant moved up in a flurry of buying between March and late April 2016. However, the share price was recently trading below a confirmed downtrend line on the monthly chart, which can provide resistance to a further rise. A strong rise above $20 would see BHP in the clear. But traders should check their stop loss if it falls below $17.80. The shares closed at $19.05 on June 23. SELL RECOMMENDATIONS Abacus Property Group (ABP)
#FOTO:306865762:600#Chart: Share price over the year
ABP has formed three significant peaks around $3.40. This may represent temporary resistance to a long term rise, so ABP must clear $3.40 to continue long term. A retreat below $3 would significantly increase the probability of a further fall. The stock finished at $3.18 on June 23. TPG Telecom (TPM)
#FOTO:306865763:600#Chart: Share price over the year
The saying, “the trend is your friend” couldn’t be more apt when you look at the TPM chart. While, as a sector, telcos are good investments, it’s important to apply a risk management strategy in case of a fall. A trailing stop loss under a prior trough on the weekly or monthly chart, depending on whether you’re trading medium or long term, is a reasonable plan.
Jonathon Feil, Morgans
Austex Oil (AOK)
#FOTO:306865764:600#Chart: Share price over the year
An oil and gas player operating low cost vertical wells in the US. The share price has been punished in response to a weak oil environment. Looking closer, the company exhibits a strong balance sheet, with net cash. AOK is well managed and is capable of taking advantage of the current downturn to buy cheap assets.
Ashley Services Group (ASH)
#FOTO:306865765:600#Chart: Share price over the year
Provides training, recruitment and labour hire. The share price has suffered due to earnings downgrades and negative sentiment in the vocation space. Stewart Cummins, who took on the chief executive’s role earlier this year, is regarded as a turnaround specialist. With a strategic review completed, the company’s five businesses are staring at second half profitability, and there’s potential for further contract wins as the number of players in the space diminishes.
GARDA Diversified Property Fund (GDF)
#FOTO:306865766:600#Chart: Share price over the year
Offers investors exposure to east coast office and industrial property. We’re happy to hold on a 9 per cent yield, payable quarterly, with a 12 per cent discount to net tangible assets. It recently announced portfolio revaluations, with a $12.35 million, or 8.8 per cent increase in the value of its property due to increasing rent and cap rate compression.
ALS Limited (ALQ)
#FOTO:306865767:600#Chart: Share price over the year
This Australian laboratory testing and analytical services firm recently rejected a $A2.7 billion takeover offer from private equity suitors Advent International and Bain Capital. In our view, ALQ has made the right decision to reject the $5.30 a share bid, as it materially undervalues ALQ’s mineral business, which is trading at cyclical lows. We believe ALQ investors should continue holding and wait for either a higher bid or a cyclical improvement to earnings.
Medibank Private (MPL)
Chart: Share price over the year
The Australian Competition & Consumer Commission has instituted legal proceedings, alleging misleading conduct by MPL in 2014 for failing to notify members it would limit benefit payments for in-hospital pathology and radiology services. Already trading at a pricey multiple since its IPO in November 2014, this may impact revenue growth in the June quarter, or for longer as proceedings progress.
Chart: Share price over the year
ORE has enjoyed a stellar run due to the lithium boom, with the LCE (lithium carbonate equivalent) price moving from $US5500 a tonne in 2014 to a recent $US7500 a tonne. However, at current levels, we’re happy to take profits, as the company moves through the notoriously haphazard ramp-up phase of operations.
Les Szancer, AXL Capital Partners
Botswana Metals (BML)
#FOTO:306865770:600#Chart: Share price over the year
The company is mostly focused on lithium, cobalt and nickel. It has a good portfolio of metals, including gold. Because the share price is so low, I believe there’s potential upside. It’s speculative, but worth a punt. The shares were trading at less than a cent on June 23. Platypus Minerals (PLP)
#FOTO:306865771:600#Chart: Share price over the year
Explores and evaluates projects, focusing on copper, gold and lithium. We expect strong demand for lithium going forward in response to forecasts of a global shortage by 2020. Another speculative buy for those with an appetite for risk. HOLD RECOMMENDATIONS
#FOTO:306865772:600#Chart: Share price over the year
What I find appealing about this tech developer is Microsoft integrating Thred into Office 365 and its cloud based Azure platform. Good to have support from the business giants. Incitec Pivot (IPL)
#FOTO:306865773:600#Chart: Share price over the year
From a February low of $2.72, the stock had been in a gentle uptrend to $3.54 before retracing to trade at $3.235 on June 23. Higher highs and higher lows recently could spell another move up for this commercial explosives and fertiliser company. The dividend is no big deal, but at least it’s fully franked. SELL RECOMMENDATIONS ANZ Bank (ANZ)
#FOTO:306865774:600#Chart: Share price over the year
The ANZ doesn’t look promising. Trading below that 50 day moving average, it’s been very much range bound for at least six months or more. A potential trade is to sell covered calls to at least get some income apart from the dividend. Growth isn’t happening at the moment. Lendlease (LLC)
#FOTO:306865775:600#Chart: Share price over the year
As far as returns go, this property and infrastructure company hasn’t met my expectations since 2008. Today, it’s dividend, which I believe is ordinary, is also unfranked. Investors can find better growth and income opportunities elsewhere.
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.