6min read
PREVIOUS ARTICLE 18 Share Tips - 14 November 20... NEXT ARTICLE 18 Share Tips - 28 November 20...


Ryan Gale, PAC Partners
BUY RECOMMENDATIONS Red River Resources (RVR)
Chart: Share price over the year
 Stronger demand for zinc has pushed up the price to near seven year highs. RVR is one of my preferred plays in the sector. Besides a defined resource, the company’s Thalanga Zinc Project in Queensland will have low operating costs, low pre-production capital costs and a short timeline to production. Select Harvests (SHV)
Chart: Share price over the year
 SHV is one of Australia’s largest almond growers and exporters. We expect growing global demand for healthy snacks to push up almond prices in the medium term. We believe SHV offers value to investors with a long term view. 
HOLD RECOMMENDATIONS Vaneck Vectors Gold Miners ETF (GDX)
Chart: Share price over the year
 Has enjoyed a solid run in 2016 as gold again proved to be the safe haven asset class in times of uncertainty. The price of gold recently plunged as equity markets soared following the US election. However, I believe the next six months will continue to be volatile and that supports retaining gold in your portfolio. Transurban (TCL)
Chart: Share price over the year
 The toll road operator is a solid defensive stock. After taking a dive from $12.50 in August, TCL still has merit to retain. Based on historical correlations, bond proxies or yield plays usually go down when interest rates rise. However, TCL has been oversold based on sentiment and an overreaction to interest rate predictions.
SELL RECOMMENDATIONS Paladin Energy (PDN)
Chart: Share price over the year
 The potential sale of a 24 per cent interest in its Langer Heinrich mine for $US175 million is unlikely to happen before the end of 2016. Sale discussions are continuing. This uranium company is exposed to too much debt. 
Technology One (TNE)
Chart: Share price over the year
 The software provider operates in Australia, New Zealand, Asia, South Pacific and the United Kingdom. While competition is fierce, TNE has built a solid reputation over many years as a proven performer. But it was recently trading on a fiscal year 2017 price/earnings multiple of 39 times, which, in my view, is too expensive.

Daniel Han, Alpha Securities
BUY RECOMMENDATIONS DUET Group (DUE)
Chart: Share price over the year

Owns energy utility assets in Australia. The share price has fallen from a 52 week high of $2.745 on August 2 to trade at $2.195 on November 16. The company posted a 29.1 per cent increase in revenue to $1.638 billion for the 12 months to June 30, 2016. Net profit after tax, excluding significant items, rose 153.5 per cent to $195.2 million. We believe the share price is undervalued at these levels. REA Group (REA)
Chart: Share price over the year

A multinational digital advertising company specialising in property. REA faced headwinds as listing volumes fell during the year. While we’re not forecasting a major improvement in listings, the stock looks undervalued from a longer term perspective, as we believe the real estate market still offers growth opportunities. HOLD RECOMMENDATIONS Flight Centre Travel Group (FLT)
Chart: Share price over the year

The travel agency reached a yearly high of $45.37 on March 14. It was trading at $29.88 on November 16. We believe the share price was punished by investors disappointed in the first half result. We believe the shares have been oversold and forecast the price to rise to $33 levels. Bendigo and Adelaide Bank (BEN)
Chart: Share price over the year

The shares have rebounded and we believe BEN is almost fully priced. Cash earnings rose 1.6 per cent to $439.3 million for fiscal year 2016. Hold for modest increases in dividends.   SELL RECOMMENDATIONS Collection House (CLH)
Chart: Share price over the year

It was priced at $1.75 on January 4. It was trading at $1.30 on November 16. In fiscal year 2016, the company only participated in about 12 of 75 PDL (purchased debt ledger) new bidding opportunities due to perceived pricing issues. We expect that to have an impact on the number of accounts available for collection in 2017. We believe the shares will follow a bearish trend in the short term given the negative sentiment. Platinum Asset Management (PTM)
Chart: Share price over the year

The company has been in a strong downtrend since early 2015 after hitting a high of $9.38. We’re concerned about net outflows and believe the growth outlook is subdued. We expect the share price to remain under pressure. The shares closed at $5.37 on November 17. 

Simon Herrmann, wise-owl.com
BUY RECOMMENDATIONS 
Cooper Energy (COE)
Chart: Share price over the year

Has oil assets in the Cooper Basin and gas resources in the Gippsland and Otway basins. We’re attracted to the scale of undeveloped resources, its upcoming funding decision and balance sheet. Cooper Energy is well positioned to address a tightening gas supply in eastern Australia. The upcoming offtake agreement for the Sole Gas Project could transform the company and be a near term driver. A speculative buy. 
Heron Resources (HRR)
Chart: Share price over the year

Heron has delivered a robust feasibility study for its Woodlawn zinc-copper project, which confirmed its viability and mine life. Management will now advance its program to secure project finance in order to start production in 2018. The stock may consolidate in the medium term until financing is completed. But we remain positive about the long term outlook. 
HOLD RECOMMENDATIONS
OZ Minerals (OZL)
Chart: Share price over the year

It has a fundamentally healthy balance sheet and provides profitable exposure to demand for copper while increasingly shifting its focus to the gold sector. During the September quarter, OZL completed a $19.1 million share buyback and distributed $18.2 million in dividends. OZ Minerals generates free cash flow at its Prominent Hill mine, while the pre-feasibility study at the Carrapateena project is progressing as expected.  
Woolworths (WOW)
Chart: Share price over the year

The stock has recently bounced off its low and we believe plenty of negativity has been factored into the valuation. After agreeing to sell its home improvement business, management can now focus on its core business and return the company to sustainable growth. The dividend yield is appealing for income investors. 
SELL RECOMMENDATIONS
Teranga Gold Corporation (TGZ)
Chart: Share price over the year

A rising gold price has helped lift revenue by 19 per cent to $152.76 million in the first half of 2016. The company produced 123,267 ounces and is on track to meet its 2016 production and cost guidance. Teranga remains fundamentally sound, but the balance of risk in the industry has increased and we believe it makes sense to lock in some profits. We’re downgrading our view to sell.  
SMS Management & Technology (SMX) 
Chart: Share price over the year

The share price of this information technology and solutions provider has crashed by about 70 per cent during the past 12 months. Revenue and earnings fell substantially during fiscal year 2016 due to disruption in the company’s sales channels, cancellation of a major program and subdued conditions in Western Australia. EBITDA declined 45 per cent to $15.7 million, while net profit after tax fell 43 per cent to $9.7 million. Weak sales have flowed through to the 2017 first half, indicating the worst may not be over.

>> BACK TO THE NEWSLETTER: Click here to read other articles from this week’s newsletter

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.