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Darren Jackson, Sanlam Private Wealth
BUY RECOMMENDATIONS Berkut Minerals (BMT)
Chart: Share price over the year

After our recent success in Empire Resources, we’re looking for the next undervalued gold stock with significant upside. Berkut Minerals appears to meet these criteria. Berkut is a recent IPO, with a market capitalisation of about $8.5 million on September 8. It has $3.5 million in the bank. Its flagship Cairn Hill project lies along the strike from Northern Star’s Paulsens gold mine and has strong historical gold intercepts that will be further explored in drilling programs starting in October. Eclipx Group (ECX)
Chart: Share price over the year

Eclipx Group is a leader in vehicle fleet leasing, fleet management and diversified financial services in Australia and New Zealand. It offers a strong growth profile and sales momentum. We like Eclipx Group, as acquisitions within this space have been well received by the market (see SGF and SIQ share performance post acquisitions). ECX management has an acquisitive nature. ECX recently acquired Right2Drive.  HOLD RECOMMENDATIONS Transaction Solutions International (TSN)
Chart: Share price over the year

We recently completed a capital raising in TSN at 1.6 cents and continue to hold. TSN operates ATMs across India on behalf of major Indian banks and also provides bill payment solutions. We view TSN as a proxy to the emerging middle class in India. Currently, bank account ownership is relatively low in India when compared to the developed world. A key catalyst would be TSN acquiring the balance of TSi India.      Tegel Group Holdings (TGH)
Chart: Share price over the year

We’re still holding Tegel, a poultry producer, since our original buy recommendation in May 2016. Recently, China has reinstated a duty on all American imported chicken meat, which may help strengthen Tegel’s position in the Hong Kong market, while it’s expanding to the Philippines. Tegel recently reported and beat prospectus guidance. Its valuation still remains very reasonable to us.   SELL RECOMMENDATIONS iSelect (ISU)
Chart: Share price over the year

Revenue was up 9 per cent to $171.9 million for the 12 months to June 30, 2016. Net profit after tax rose 34 per cent to $12.9 million. It has a strong balance sheet and no debt. iSelect generates good revenue from people switching private health insurance providers. But we’re concerned that people may drop out of private health insurance altogether if premiums continue to rise.    
Aconex (ACX)
Chart: Share price over the year

Aconex is the leading online collaboration platform for the global construction industry. Aconex’s operating and share price performance have been exceptionally strong since listing in December 2014. We like the company, but believe it’s overvalued. Market capitalisation was recently about $1.2 billion. Yet EBITDA was $13.6 million. Aconex’s earnings need to play catch up to valuation, which should happen in time.

Michael Gable, Fairmont Equities 
BUY RECOMMENDATIONS
Gateway Lifestyle Group (GTY)
Chart: Share price over the year

Offers designer homes in a community environment. After its full year results, GTY was sold off in response to conservative guidance. We expect the company to make new acquisitions, which should be positive for the share price going forward. We believe a low is now in place. The shares were trading at $2.275 on September 8. 
Northern Star Resources (NST)
Chart: Share price over the year

The gold chart looks bullish and I expect it to trend up to a new high for the year within the next few weeks. Gold producer NST has been oversold and support is coming back to the stock. With markets looking more volatile, gold should prove to be a good hedge for investors. 
HOLD RECOMMENDATIONS
SAI Global (SAI) 
Chart: Share price over the year

SAI seems to have formed a double low on the chart and we’re seeing positive divergence with the relative strength index. Recent results met expectations, so I expect the stock to head higher from here. We have resistance levels around $3.90 and near $4.50. Shares in this risk management business were trading at $3.47 on September 8.
Vocus Communications (VOC)
Chart: Share price over the year

The stock has plunged more than $1 since it reported on August 23. This weakness means VOC could re-test the longer term uptrend line at low $7 levels. I recommend holding in anticipation of a bounce. The shares were trading at $7.415 on September 8.
SELL RECOMMENDATIONS
BHP Billiton (BHP)
Chart: Share price over the year

In August, the global miner managed to surpass the high point achieved in April. However, it then gapped back down. This island reversal on the chart is the sign of a top. By going to a marginally new high for the year, BHP is now vulnerable to re-testing the post Brexit low. That is, it will threaten the June intraday low of $17.29. The shares were trading at $20.15 on September 8.
The A2 Milk Company (A2M)
Chart: Share price over the year

Having spent much of this year forming a large flag, A2M finally broke out near $1.60 and had a quick run to above $2.20. But a bearish engulfing reversal signal has emerged on the weekly candlestick chart. I expect the share price to fall. The first level of support will come in at the $1.60 level. If that can’t hold, then I am looking at $1.40. The shares were trading at $1.97 on September 8.

Warwick Grigor, Far East Capital
BUY RECOMMENDATIONS
Pacific American Coal  (PAK)
Chart: Share price over the year

Coking coal prices have broken the downtrend and I believe it’s time to be reweighting into this sector. PAK has 257 million tonnes of quality coking coal in British Columbia, Canada, which I believe is undervalued. There’s upside potential in what I believe is a good growth story. 
Santana Minerals (SMI)
Chart: Share price over the year

Remember Bolnisi Gold, which was taken over for about $900 million in the last cycle? Well, chairman Norm Seckold has the sequel with Santana Minerals. The target is between 80 million to 100 million ounces at better than 80 grams per tonne silver.  Previous explorers were chasing high grade narrow veins, but SMI recognises this as a larger tonnage play amenable to bulk mining. SMI has just raised $2 million to fund the next round of drilling at its silver project in Mexico, after confirming its model in a 15 holes program a few months back.  
HOLD RECOMMENDATIONS
Anova Metals (AWV)
Chart: Share price over the year

We have been waiting for a corporate play with AWV while the gold price has lifted the share price. The recent $7 million placement introduces a new angle. It’s about to drill extensions of the high grade ore bodies, thereby adding significantly to the resources. Gold production is finally about to happen through a tolling arrangement. 
Lucapa Diamond Company (LOM)
Chart: Share price over the year

Lucapa shares have been quiet recently as we have been waiting for a renewal of the kimberlite exploration licence. Meanwhile, production from the alluvial deposits has been running at record levels. The exercise of more than $15 million of the 30 cents options back in April has taken some time for the market to digest. But we expect to see positive drilling results. 
SELL RECOMMENDATIONS
Berkeley Energia (BKY)
Chart: Share price over the year

BKY has been a good performer, but this is out of step with the spot uranium price, which keeps falling. The uranium market is likely to be over supplied for the next two to four years, presenting a dour picture for producer profits. Getting a new mine up and running will be very difficult given the economics of the sector.  
Talga Resources (TLG)
Chart: Share price over the year

This was previously a preferred stock due to its ability to produce low cost bulk graphene. But another company First Graphite is a lower cost player and, in my view, that’s had an impact on TLG. It’s gone quiet on the graphene front. There’s more talk about micro graphite, leaving the future direction somewhat confused. The sellers have been jamming the exit.

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