Likes
This week, Michael McCarthy from CMC Markets likes A2 Milk.
“This major NZ success story has traded at rich multiples, reflecting higher growth prospects. I would prefer to buy closer to $9.00, but $10.00 may be as good as it gets,” he says.
And our chartist Gary Stone from Share Wealth Systems likes Woolworths (WOW).
The Woolworths shares rose above the $27.40 to $27.95 resistance zone on May 3, and have since consolidated above this zone. There is a high probability that Woolworths is heading towards its next resistance zone between $30.10 and $31.
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Dislikes
Michael doesn’t like Mirvac Group (MGR) and sees a constrained outlook for the business in a potential rising interest rate environment.
“The recent rally ahead is, in my view, an opportunity to exit, regardless of the June distribution,” he says.
And our chartist is negative on National Australia Bank Limited (NAB).
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The NAB share price has fallen below two key support levels – the support zone between $27.60 and $28.20 and the lower trend of the down trending channel. The breach is just two days in the making and a short-term rally is likely.
However, this negative price action makes it unlikely that NAB will rise up the list of preferred share investments in the next few weeks, or even next few months, compared to other better opportunities available, such as stocks mentioned in recent weeks including Aristocrat Leisure, CSL, BlueScope Steel, Computershare and Macquarie Group.
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