Among this week’s likes and dislikes are a miner, a TV station, an investment management business and an insurance company.
CMC Markets’ Michael McCarthy like rare-earths miner Lynas Corporation (LYC).
“After years in the wilderness, LYC appears to be lining up its ducks – operations are running and underlying commodity prices (neodymium praseodymium oxide) have swung sharply higher,” he says. “[It’s] in the higher risk, higher potential reward category.”
Lynas Corporation (LYC)
Source: ASX
On his dislikes list this week is Nine Entertainment (NEC).
“[NEC] rallied last week as TEN’s re-structure became more complicated, but longer term trends still a major threat,” he says. “Investors may take advantage of what could be temporary strength.”
Nine Entertainment (NEC)
Source: ASX
Michael Wayne from Medallion Financial Group says Janus Henderson is a buy. While the company faced challenges after the Brexit vote, it “appears to have reached an inflection point”, he explains. According to Wayne, Janus Henderson delivered better than expected fund under management, fund flows and investment returns when it reported results recently.
“The recent merger not only brings together two asset management businesses (Janus & Henderson) with excellent reputations and track records, but should also offer the new entity an opportunity to cut costs ($57 million cut so far),” he says.
Janus Henderson Group (JHG)
Source: ASX
Wayne is not as keen on Insurance Australia Group (IAG).
“IAG delivered a result that slightly missed expectations, however the business trades on 17 times one year forward earnings, a premium that is hard to justify for a mature business with declining margins and minimal room for growth across the consumer and business divisions as well as its New Zealand based operations.”
Insurance Australia Group (IAG)
Source: ASX
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