In this Report on Saturday, I noted that Wall Street is showing that a reopening rotation is in process, where stay at home star stocks, which have done well in 2020, have been losing ground to companies bound to benefit from the escalation of vaccinations around the world. Last week, American Airlines rose 9.5% and Carnival Cruise Lines spiked 21.6%!

I previously identified a number of top 100 ASX-listed stocks, where the analysts surveyed by FNArena thought there’s 20% or higher upside. So this week I’ll do two things. I’ll look at the stocks listed 101 to 200 to see if there are big gains tipped by the expert company assessors. And then I’ll check if any of these classic companies look like they’ll be reopening beneficiaries.

Let me give six interesting conclusions from my drooling over the data:

1. Out of 100 stocks in the list, 76 have a positive outlook, if the analysts know what they’re talking about.
2. This reinforces my view that the overall index should easily add 10% plus this year. (I think it will be more but I’ll play this conservatively.)
3. 15 companies had a negative outlook.
4. Nine companies weren’t covered by analysts.
5. 18 companies had 20% upside or more. And given nine companies aren’t covered, that’s 18 out of 91 which is about 20% of companies. This sounds like another great reason to believe stocks will go higher this year.
6. And 56 out of 91 had 10% plus upside.

If you need more encouragement, the AFR reported today that one of the country’s most well-known fund managers, Chris Stott (of 1851 Capital), says he has never been so bullish on stocks. That’s industry lingo for he wants to buy more stocks and doesn’t fear another crash of the market any time soon, despite stocks rising 54% since March 23. That’s huge but we’re still below where the market was before the Coronavirus crashed stocks. In fact, we’re 2.7% below that level. And Chris Stott says low interest rates and the great economic data coming out now says the economy will be strong going forward, so stock prices will benefit.

But you’ve heard me say this before in my previous communiques.

So what are the potential big stock price risers out of the list?

So what companies would be beneficiaries of the reopening rotation? And do I like them?

1. What do I think of Appen?

Appen is a stock that should benefit from vaccinations and the world getting back to normal. It previously warned that the pandemic would hit earnings, with a slowdown in digital advertising spending, IT spending, reductions of services from smaller customers, interruptions to global supply chains and the suspension of face-to-face projects, such as audio data collection.

APPEN (APX)

Looking at the chart, I’m not seeing the turnaround story yet but I’d give this a speculative chance of coming good this year.

2. What’s my view on Corporate Travel Management?

Corporate Travel Management was a company I tipped would benefit from the reopening trade at least nine months ago. But it has surprised me how well it has done, despite a lack of travel! I’m with the analysts here, thinking the share price has upside but I wonder whether some of the gains are baked in.

Corporate Travel (CTD)

Given the previous peak was around $32 and the current share price being just under $19, normalcy via vaccinations could easily help this business head back to old share price levels. But it will be a wait!

3. What do I think of NRW?

NRW is a provider of contract services to the resources and infrastructure sectors and should be helped by the commodity boom that everyone’s expecting. It’s not so much a reopening trade stock but will be a beneficiary of the economic growth that will come out of vaccinations. Its five-year chart is promising.

NRW

4. And my take on Ooh!Media?

Ooh!Media is a company that has been hurt by COVID-19 restrictions. People staying at home and not travelling to work, going to shopping malls and airports as well as taking elevators, reduces the exposure of their clients to ads displayed on their properties. These guys would love normalcy coming back to the Australian economy.

It hasn’t been a reliable company to invest in but the reopening of our economy, no lockdowns and no hard border bans will help a company like this. And the market agrees, with its share price up 11% today!

Ooh!Media (OML)

5. Do I like Tassal more than just for eating?

I love eating the produce of salmon smoker business Tassal and it should benefit from the opening up of hospitality, travel and food services businesses. The more people go out, the more they’re likely to send revenue to a company like Tassal. But it has been a tricky company to invest in. A lot can go wrong with fish and any food-cultivating business, so this is a bit of a punt.

Tassal Group (TGR) 5-year

As you can see, this company doesn’t create a long-rising trend but pricewise it’s at $3.26. Its previous five-year peak was around $5.10 and before the Coronavirus crash it was $4.47.

If the vaccinations take us back to pre-COVID times, then that would be a 37% gain. But, as I say, this can be a fishy business to be too confident about. The stock was up 1.7% today so there are those in the market who see the company’s reopening trade potential.

These five stocks aren’t my best recommendations but they have big upside and should do well out of a world being jabbed into normalcy over time.

Many of the big upside stocks in my table above are miners, which have potential with the positive outlook for mining. But I do tread carefully with smaller miners after what I learnt from Mark Twain, who once said: “A mine is a hole in the ground and its owner is a liar.”

A bit harsh, but the sector can be disappointing at times.

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