Last week was a sell-off week, where growth stocks copped it as bond yields rose and the fears of recession increased globally. So, I thought I’d look at seven of the biggest loser stocks and see if the analysts think the longer-run view on these companies is better than the reactions we saw last week.
Here are those seven losers. Let’s see what the analysts say:
- The biggest loser: Magellan Financial Group (MFG).
The biggest loser was Magellan Financial Group (MFG). The 18.5% loss was driven by the company losing another $4 billion in funds, especially from advisers, who are probably still looking at other fund managers for their clients.
Despite better returns of late, the attitude of advisers towards the fund manager looks very negative, but what do the analysts say?
The consensus call says “up 35.8%”, but a lot of this would have been calculated before the latest update on funds under management (FUM).
The analysts must believe the outflows of funds will eventually stop and inflows will improve, but I think this company’s woes will be around longer than these guys think. A bounce back of tech and growth stocks will help returns, but how long will it take advisers to re-love MFG again? I’d say a year or two, maybe more!
- Thumbs up for Syrah Resources (SYR)
Syrah Resources (SYR) lost 9.1% last week. It wasn’t helped by its latest report where sales of its graphite product were disappointing. However, given this company plays in the promising battery space, the analysts give it a big thumbs up. It’s the third most shorted stock nowadays.
The consensus view is up 141%. Four out of four company watchers like the business going forward
I think SYR is a buy-and-wait company, though the whole battery space could come with curve balls, with alternative resources and evolving technological alternatives bound to spring a few surprises for investors going forward. This is for speculators and true believers, and you have to be prepared for some stock price surprises.
- PEXA Group (PXA) is liked by analysts
PEXA Group (PXA) has been a disappointing stock, despite its perceived potential. It’s Australia’s online property exchange network and was established specifically to assist lawyers, conveyancers, banks and other professionals lodge transfer documents with Land Registries and complete financial settlements digitally.
Last week, PXA lost 7.43%, but the consensus call is up 44%. Five out of five analysts give the company a big nod. In fact, the consistency of their calculations for the stock suggests there’s a big agreement about how this company should perform.
Against this positivity, the 5-year chart is very discouraging for a company with so much potential and with so few market rivals.
PEXA (PXA)
I’ll get Michael Gable from Fairmont Equities to assess the charts on PXA on my TV show tonight. At this stage, the only real leg up for the stock is the collective views of the experts!
- Core Lithium (CXO) is also popular
Core Lithium (CXO) is a the sixth most-shorted stock at the moment. It dropped 5.4% last week. Again, this is in the battery play space and despite the views of short sellers, the analysts like the company, with a 39% upside call on a consensus basis. Here are the individual views of the company’s objective assessors:
What you see is that two out of three analysts are only lukewarm on CXO, but Macquarie has ‘the hots’ for the company.
- Chalice Mining (CHN) gets big support from its Chairman
One I’ve been watching closely is Chalice Mining (CHN), after its chairman Tim Goyder after a big fall in its share price a couple of months ago prophesised that there’d be a turnaround within about six months. The fact he was prepared to be specific about the timing of better days for the business was both surprising and brave. On 12 September, The West Australian reported: “Mining billionaire Tim Goyder is making the most of a slump in the share price of Chalice Mining, spending more than $30 million over the past week to grow his stake in the nickel explorer.”
That’s why this is so memorable for me. Did I say Tim was brave? Chalice Mining is targeting magmatic nickel-copper-PGE deposits, however, the pundits say there’s also potential for other deposit types within the largely unexplored mineral province.
Last week, CHN dropped 5.3%, but against this, the analysts see a big 99% gain. Four out of four like the company. Interestingly, Morgans has downgraded the company to a ‘hold’ from an ‘add’ but still predicts a 61.2% gain in its share price.
- IGO gets big support
In the nickel space, IGO copped a 4.4% drop last week, but the analysts are big supporters, with a 33.8% predicted rise. Like many of these stocks, four out of four experts like the company but there’s a big range in their enthusiasm for the business.
While Macquarie sees a big 62.7% gain ahead, Morgan Stanley’s tipping only a small 4.8% rise.
- Imugene (IMU) for the thrill seekers
Finally, if you want to really gamble, though Imugene (IMU) fell 4.4% last week, it has impressed Bell Potter, as that analyst can see a whopping 388.3% gain somewhere out there in the deep, deep blue yonder!
Final word…
With all these stocks above, if you invest in them, understand the risks and give yourself some time because they might need a world economy with falling interest rates, no significant recession threat and growing economic activity globally.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances
