An interesting stock that has made an appearance in our “likes” for this week is Mayne Pharma (MYX). It develops, manufactures and distributes generic and pharmaceuticals.
“Mayne Pharma’s acquisition of Doryx assets from Actavis is a positive one for the Australian pharmaceutical company,” Bell Direct’s Julia Lee says.
“Doryx is used to treat acne and the acquisition means the establishment of a US specialty division. It gives the company direct access into the US market and a foot into the higher margin branded drug market as opposed to the lower margin generic drug market.”
Chartist Gary Stone still likes Boral, which he mentioned in our first survey.
Today he says it has recently consolidated a breakout above a key resistance zone between $5.80 and $6.15.
“It should head towards its all-time high of $9.13 over the coming months but will encounter resistance along the way around the $6.80 – $7 zone, at the $7.45 – $7.65 zone and again around the $8.30 zone,” he says.
Elio D’Amato is a big fan of Carsales.com for its strong financial health.
“Despite some challenges in the new vehicle marketplace and a subdued economy, the core business remains sound and Carsales has maintained its dominant position domestically in online automotive classifieds,” he says.
“We also view investments in Brazil, South-East Asia and Korea as good long-term opportunities.”
And Macquarie is still a favourite of Evan Lucas, who can’t get away from its strong momentum, outlook, and the low Aussie dollar in the markets it operates. These factors “see it wanting to break out to the upside and back to the 2008 high. Something I think it will hit in the next few weeks,” Lucas says.
The Atlas Iron announcements that it will be cutting production as it is no longer viable for it to produce iron ore at these prices, has had a definite impact on our Super Stock Selectors this week.
Lucas has a blanket “don’t like” for anything in the junior/mid-cap iron ore space that is producing ferrous contents of 55% to 58%.
“These plays are receiving as much as US$15 a tonne haircuts on the spot price. That means based on C3 (all in) cash cost some iron ore names are trading up to US$45 under water for every tonne produced.”
Paul Rickard is of the same mind but includes all iron ore producers in his dislikes, not just the small/mid ones, with a focus on Fortescue and Rio.
Raymond Chan doesn’t like Fortescue either but is big on ANZ.
“It’s going ex dividend in four weeks and this may appeal the yield investors,” he says.
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