Darren Jackson, Calibre Investments
BUY RECOMMENDATIONS
Sirius Resources (SIR)
Chart: Share price over the year to versus ASX200 (XJO)
A blue-sky nickel and copper explorer that’s made exponential gains on the back of its Nova discovery in Western Australia. SIR represents a high risk, high return speculative play. However, we expect further near-term upside to flow from additional stellar assay results.
NuEnergy Gas (NGY)
Chart: Share price over the year to versus ASX200 (XJO)
An illiquid, micro-cap company that holds prospective coal seam gas acreage in Indonesia. Major companies surround the acreage at Sumatra, and they have the infrastructure in place to export gas to energy-hungry south-east Asia. Lately, NGY appears to be gaining traction on the back of positive news flow.
HOLD RECOMMENDATIONS
Billabong (BBG)
Chart: Share price over the year to versus ASX200 (XJO)
Beleaguered retailer Billabong has received a rival bid from Bain Capital at $1.45 a share, matching the offer by TPG. BBG’s unique and relatively cheap assets may attract a higher offer. Continue holding.
Aurora Oil and Gas (AUT)
Chart: Share price over the year to versus ASX200 (XJO)
Longer term, we hold a bullish view on depressed Henry Hub LNG prices in the US. We expect higher prices as the US economy slowly improves and new infrastructure comes online. Aurora is operating in the world famous Eagle Ford Shale and would be an obvious beneficiary of higher US gas prices.
SELL RECOMMENDATIONS
ANZ Bank (ANZ)
Chart: Share price over the year to versus ASX200 (XJO)
The banks have outperformed the S&P/ASX 200 index in the past three months. Of the big four banks, ANZ has the lowest trailing dividend yield, making it the cheapest to short sell. Now may be the time to lock in a profit.
Iress (IRE)
Chart: Share price over the year to versus ASX200 (XJO)
Supplies sharemarket and wealth management systems in Australia and overseas. IRE’s trailing price/earnings multiple was about 25 times on September 12 – well above its sector or index average. Technically, it appears to be over-bought. Fundamentally, IRE is operating in a difficult industry, generating revenue in the broking and investment banking industry. Take a profit.
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BUY RECOMMENDATIONS
Genetic Technologies (GTG)
Chart: Share price over the year to versus ASX200 (XJO)
A genetic testing business, aiming to uncover the impact of DNA on health. Its patents are generating revenue from contracted users. GTG has released a breast cancer test, BREVAGen, which should sell well. The test is now marketed in California and Europe.
Bell Financial Group (BFG)
Chart: Share price over the year to versus ASX200 (XJO)
HSBC white labelled the Bell Direct platform in June. Since then, BFG directors have added to their shareholdings. The share price is near its 52-week low. We anticipate a stronger performance going forward. The shares were trading at 42.5 cents on September 12.
HOLD RECOMMENDATIONS
AMP (AMP)
Chart: Share price over the year to versus ASX200 (XJO)
Even in the absence of an improving market, AMP is a good defensive share to hold. Federal Government superannuation changes going forward should increase funds under management. A stronger sharemarket would also help AMP shares.
ANZ Bank (ANZ)
Chart: Share price over the year to versus ASX200 (XJO)
The ANZ, like the other majors, appeal to investors because they offer modest capital growth on the back of reporting bumper profits. The dividend yield is also attractive and astute investors know the returns are better than term deposits. The price action has been solid and we expect an uptrend.
SELL RECOMMENDATIONS
Heron Resources (HRR)
Chart: Share price over the year to versus ASX200 (XJO)
At June 30, 2012, this mineral exploration and development company had $43.1 million in cash. It’s spending about $6 million a year on exploring and drilling. A decline in commodity prices won’t help a company in the absence of revenue.
Admiralty Resources (ADY)
Chart: Share price over the year to versus ASX200 (XJO)
This diversified mining company, with interests in Australia and Chile, is up against softening commodity prices. Investor interest in this stock is waning. It may be a good time to reduce exposure.
Mark Lennox, Halifax Investment Services
BUY RECOMMENDATIONS
National Australia Bank (NAB)
Chart: Share price over the year to versus ASX200 (XJO)
The stock has rallied almost 15 per cent in the past three months on interest rate cuts. As we have seen in the past, banks don’t always pass on the full Reserve Bank rate cut to customers, which is good for the company bottom line. We’re moving to a buy on NAB ahead of its full year result later this year.
Westpac Bank (WBC)
Chart: Share price over the year to versus ASX200 (XJO)
Westpac has also rallied strongly on lower rates. We’re moving to a buy recommendation based on the company’s sustainable fully franked dividend. It reports later this year. Also, investors may switch to the banks on signs of slowing growth in China leading to lower commodity prices.
HOLD RECOMMENDATIONS
TPG Telecom (TPM)
Chart: Share price over the year to versus ASX200 (XJO)
This company’s a leader in ADSL2+ and is showing signs of growing its consumer and corporate client base. Hold for now.
Fortescue Metals Group (FMG)
Chart: Share price over the year to versus ASX200 (XJO)
Earlier this year, when the shares were trading at $5.34, we recommended a sell in thebull.com.au because we believed the iron ore price would probably fall. It did and FMG hit a low of $2.81 on September 6. We have now moved to a hold recommendation as the company has delayed expansion plans and cut jobs.
SELL RECOMMENDATIONS
Atlas Iron (AGO)
Chart: Share price over the year to versus ASX200 (XJO)
Weaker iron ore prices put pressure on this company’s margins. Should the iron ore price stay below $US100 a tonne for a sustained period, then Atlas’s share price is likely to suffer.
Ainsworth Game Technology (AGI)
Chart: Share price over the year to versus ASX200 (XJO)
We recommended a buy in this publication on May 14 when the shares were trading at $1.85. The shares hit a high of $2.75 on September 7. The shares were trading at $2.62 on September 12. It’s time to lock in profits.
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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.
