National Australia Bank is still in our list of likes this week, with Michael Heffernan from Phillip Capital reiterating that a recent capital raising, plans to exit the UK and a new CEO are all working in its favour. A fully franked dividend in excess of 5% is also pretty nice too.
Still in financial services, an interesting one from Michael McCarthy is his like of IOOF Holdings (IFL). That company was hit by allegation of compliance breaches within its research department last week and dropped 20% as a result.
“The swiftness of the company response, their flat denial that any clients were harmed and their commissioning of big four accountants PwC to analyse and report to both APRA and ASIC points, to a high level of confidence in IFL’s overall position,” McCarthy says.
Another like is the childcare healthcare education and government property trust Arena REIT (ARF).
CEO of Lincoln Indicators, Elio D’Amato says it is well positioned to maintain a stable dividend yield in excess of 6%.
“A combination of low interest rates and a buoyant property market puts ARF in a good position to increase distributions and increase capital returns as it expands with its tenant’s operations,” he said.
On the dislike side chartist Gary Stone says he doesn’t like CSR because it has just fallen below a strong support zone between $3.80 – $3.90.
“This is the third occasion on which this zone has been tested and hence is likely that it won’t hold this time. The next support zone for CSR is the $3.10 – $3.20 zone which is nearly 15% below the current price,” he said.
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
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