As disposable incomes rise, and pets become more and more a part of our lives, they will continue to be pampered and treated to lavish lifestyles. This trend is one of the reasons why Ric Spooner of CMC Markets likes veterinary and pet product group Greencross this week. Even after a solid rally last week, he says there is still value in the stock.
“The trend towards higher spending on pets and plenty of capacity for new stores and further acquisitions makes this a solid growth prospect,” he says.
Surfstich is another interesting company in our likes list this week. ST Wong from Prime Value says that its been sold down during recent market weakness but might be cheap at these prices.
“The company’s extensive inventory, together with its ability to generate strong organic traffic and high conversion rates is a key positive to gain market share,” he says.
Our chartist, Gary Stone of Share Wealth Systems, likes Cimic Group (the former Leighton Holdings). The chart below shows that the share price has battled to break through a resistance zone between $22.25 to $23.25 since August 2011.
“This time the probabilities appear higher as a sequence of higher lows have occurred since January 2014, forming a text book bullish ascending triangle, as Cimic has launched this assault of the $22.25 – $23.25 resistance zone.
“Friday’s close at $23.68 took CIM above the resistance zone, which if it can hold, may see an advance to around the next resistance level of $25.82,” Gary says.
And Paul Rickard reminds us of his call on bank hybrids a month ago.
“There is still some value in bank hybrids – although as usual, the papers have come to this story very late,” he says today.
He says NAB Capital Notes (NABPC) are currently better value, and are 2.5 years shorter in maturity, than CBAPD (Perls VII).
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