This week, our super stock selectors are eyeing off buying opportunities on the local market.
Raymond Chan of Morgans identified share price weakness in Westpac as one such opportunity, with a forecast yield of 5.9% for FY17.
Last week, the big banks did most of the damage on the local market, which lost 1.2% over the week.
Of the big banks, ANZ fell the most, losing 4.14% over the week to $29.40.
CBA eased 2.72% to $81.58, while NAB and Westpac both shed more than 3% to $30.16 and $31.85 respectively.
Westpac Banking Corporation (WBC) 1-year chart
Source: Yahoo!7 Finance
Below $4, Michael McCarthy of CMC Markets sees value in Northern Star Resources.
While he’s not a gold bull, he acknowledges that risks this year are higher, and could justify holding a gold producer in a portfolio.
“Having a gold producer in the portfolio can offset losses if a left field market event occurs,” he notes.
Northern Star previously closed at $3.92, below its 52-week high of $5.89.
Northern Star Resources (NST)
Source: Yahoo!7 Finance
Founder of Share Wealth Systems Gary Stone says Infigen Energy is displaying a “classic technical setup for an imminent rise.”
“Following the price run-up from 20 cents to $1.235 over nearly a year to July 2016, a text-book 50% retracement occurred down to 72 cents in October 2016. From then, a bullish ascending triangle has formed, with a potential imminent breakout above the resistance zone between 95 cents and $1.”
“Given the move on Friday on strong volume, there is a high probability that IFN’s share price will breakout and move higher to test its previous all-time high of $1.235”.
However, Stone says that if this anticipated breakout is delayed, a retracement to about 90 cents may occur in the interim.
“Of course, if the trend line doesn’t hold, then a position should not be held thereafter until a new setup forms,” he explains.
Infigen Energy (IFN) 1-year chart
Source: Yahoo!7 Finance
Supply-chain logistics group Brambles is in the dislikes list for Chan this week, after announcing a profit downgrade.
This morning, the company lowered its full-year earnings guidance due to revenue and costs pressures in its North America business. Brambles plunged 15% in early trade to $10.44.
Brambles (BXB) 1 –year chart
Source: Yahoo!7 Finance
McCarthy doesn’t like blood products giant CSL this week, but only because at current prices, he’s not interest in buying in.
Over the past week, the company was a standout mover on the local market, surging 13.4% to $114.60 on the back of a profit upgrade.
“I like the company, I like the prospects. I just don’t like buying at current share prices…” he says.
“Investors who missed buying CSL when it was weak may need patience.”
CSL 1-year chart
Source: Yahoo!7 Finance
Stone dislikes Mantra Group Limited this week after its share price fell below a key support zone of $2.95 to $3.20 that has been in place for seven months.
“[It] now looks likely to continue falling further,” he says.
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
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.
