Janine Cox, Wealth Within
BUY RECOMMENDATIONS Coca-Cola Amatil (CCL)
In recent months, the tide has turned for CCL shares. The trend is up and the share price recently broke through psychological resistance at around $10 and is now pulling back to test support for a further rise. A strong close back above $10 would be a good sign the market continues to support the vision of CCL’s chief executive Alison Watkins. The shares closed at $9.88 on October 13. Karoon Gas Australia (KAR)
This is a highly speculative stock to trade. Big price fluctuations in a single week are normal, so trading requires a high level of skill. The share price has gapped up on news about a possible deal with Woodside Petroleum involving two overseas oil fields. If not already in a trade, as it broke above $1.45, a second entry opportunity may soon present. Stay tuned. The shares finished at $1.775 on October 13. HOLD RECOMMENDATIONS Harvey Norman Holdings (HVN)
This year, the retail giant broke through an important level of resistance at around $5 and is trading in a long term uptrend. In the short term, the price may come back to a support level. HVN is likely to build momentum towards the festive season, with a further rise to between $6 and $6.30. The shares closed at $5.12 on October 13. Monadelphous Group (MND)
This engineering group rose from $7.50 on July 1 to $11.92 on August 9. It then fell to $8.35 on September 1 before recovering part of the decline. This illustrates the importance of being able to read price history and understanding the inner workings of a stock. The shares finished at $9.82 on October 13. SELL RECOMMENDATIONS Sydney Airport (SYD)
In the past two months, SYD has provided several technical exits on the weekly chart. If it remains below $6.60 this month, it will have broken the angle of the longer term trend line. The best time to be in this share may have passed for now. We believe it would be reasonable to expect a fall to between $5.70 and $6.10. Consider taking some profits. The shares closed at $6.58 on October 13. Virtus Health (VRT)
VRT broke up through an important level at around $8 in August before slipping back to recently close below an important level at $7.55. This may be a good time to take some profit off the table and leave this stock on the watch list for a future opportunity. The shares finished at $7.29 on October 13.
Michael Gable, Fairmont Equities
Vocus Communications (VOC)
We’ve been positive about VOC for several weeks, but hesitant about buying while it was falling. Given the valuation is now attractive and hitting our technical targets in the mid $5 levels, we’re happy to start buying VOC. Despite short term volatility, we’re taking a medium to longer term view that it will be trading much higher than at current levels. The shares were trading at $5.67 on October 13.
IPH Limited (IPH)
IPH is the holding company for intellectual property and associated companies. It offers a wide range of IP services and products. We’ve been watching IPH for a few months now. We like the company fundamentals, but there had been shorter term weakness on the chart. However, the past few weeks look bullish and indicate a possible reversal is taking place. We’re happy to be buying IPH now. We would look to exit if IPH took out the September low.
Tassal Group (TGR)
The salmon producer was sold off earlier this year. It’s tried to rally, but is finding a lot of resistance near the 50 per cent retracement mark around $4.30. The chart is neutral at this point. Clearing $4.30 would be positive, but we can see a possible re-test of the $3.50 support level. We’re waiting for one of these scenarios to play out before buying any more. The shares were trading at $3.96 on October 13.
Beach Energy (BPT)
The price action is bullish. We can see a clear flag formation on the chart. A break above this flag means that BPT could rally above 90 cents. The shares were trading at 75 cents on October 13.
JB Hi-Fi (JBH)
JBH is starting to look negative on the chart. It shot up nicely on news of The Good Guys acquisition, but since then the market has been unsure about what to do next. The weekly chart shows any move above $30 is met with selling. It may not fall immediately, but we expect a period of consolidation. The $22 mark seems to be a good level for this consumer electronics giant. We expect it to fall back towards that level before heading higher from here. The shares were trading at $28.56 on October 13.
For the past two months, we viewed the price action as a large five wave decline with a target below $5. It hit our initial target, but the potential unwinding of the yield trade has made us re-assess our TLS targets. We see TLS possibly falling even further towards $4.50. The shares were trading at $5.07 on October 13.
Jonathon Howe, Red Leaf Securities
Australian Pharmaceutical Industries (API)
Operates more than 400 Priceline stores throughout Australia. The company has significantly reduced debt in the past 12 months. API reports full year results on October 20. We’re expecting net profit after tax of about $51 million. We’re accumulating.
4DS Memory (4DS)
Although extremely speculative, this micro cap is developing a new way data is stored via ReRam – in contrast to traditional flash drive storage – for the multi billion dollar information technology market. The company has a strategic partnership with Western Digital, a major player in the memory space. The pair have been researching and developing the technology for the past 10 years. If 4DS can deliver on its objectives, it will be a game changer.
Telstra continues to be a large sleepy giant with plenty of cash and consistent dividends. TLS is always a solid addition to any portfolio. We continue to hold.
OneVue Holdings (OVH)
OneVue is developing a platform called FUND.eXchange. It will enable retail investors to electronically buy and sell managed funds. The company also has a funds under administration business of almost $3.5 billion.I own shares in OVH.
BHP Billiton (BHP)
The global miner’s shares have been on the rise. An opportunity exists for investors to bank some profits and potentially buy back on a pull back.
JB Hi-Fi (JBH)
This electronics giant has enjoyed an extremely good run since the demise of Dick Smith. We believe the stock price is starting to show slim value at current levels. Take some profits at these levels. The shares were trading at $28.38 on October 13.
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