The share price of Blackmores went for a serious tumble last week after company profits fell by 47% in the first three months of 2016-17.
The supplement supplier – a market darling in 2015 – fell through the $100 mark in Thursday trade, before finishing the week at $107.80.
“An emphatic rejection of levels below $100, and a PE close to 18x, puts this fallen angel on my radar,” says Michael McCarthy of CMC markets.
And since McCarthy provided this tip, Blackmores has bounced back, up almost 5% in early trade on Monday to $113. Watch this space.
Blackmores
Source: Yahoo!7
On McCarthy’s dislikes list this week is AMP, after the company posted a $668 impairment against its wealth protection (insurance) business.
“Another disappointing operating performance, another huge write down. In my view, this stock is a perennial turn-around story that never gets there. Even after Friday’s 9% plummet, I’ll avoid AMP until there is significant change at the top,” he says.
AMP’s share price fell through the $5 mark on Friday to close at $4.68.
AMP
Source: Yahoo!7
However not all of the financials are out-of-favour this week.
Raymond Chan of Morgans likes National Australia Bank after it released its full-year earnings. At $6.48bn, they were up 4.2% on the previous year. And after some market speculation on whether the final dividend payment would be cut, they held steady at 99 cents.
But Chan’s dislike – ANZ – is at odds with Gary Stone of Share Wealth Systems.
Stone likes ANZ as its share price continues to strengthen, “making new highs and lows along the way.”
“ANZ’s share price has also been relatively much stronger than all the other banks since June 2016,” he notes.
ANZ
Source: Yahoo!7
The technical signs aren’t as promising for salary packaging and leasing services group, McMillan Shakespeare, says Stone.
“MMS’s share price has fallen sharply below a key support level between $12.00 and $12.30. The next support zone is around the $9.00 to $9.20 area.” McMillan Shakespeare shares closed at $10.90 on Friday.
Source: Yahoo!7
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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