Among this week’s likes and dislikes is a building materials company, an entertainment retailer and a bank.

Michael McCarthy of CMC markets likes James Hardie (JHX) this week. “After a disappointing H1 profit on increased turnover, and the announcement of a European acquisition, the market first sold then bought JHX,” says McCarthy.

“Regardless, better growth prospects, exposure to a strengthening US economy and leverage to a falling AUD, makes this one attractive to me.”

 James Hardie (JHX)

Source: ASX

REA Group (REA) made it into McCarthy’s ‘not-so-good-book’ this week. “While the business is going well, expansion plans and the imminent listing of Domain could see REA knocked down from what is a lofty PE, in spite of its higher growth prospects. Am selling now to buy back lower,” he says.

REA Group (REA)

Source: ASX

Michael Heffernan from Phillip Capital likes Macquarie Bank this week, which he says is more diversified than the four majors and has been a strong market performer over the last 12 months.

“Macquarie’s recent profit result beat expectations and its links to improvements in overall share market activity should be of material assistance to both its future revenue and profit.”

Macquarie Group (MQG)

Source: ASX

JB Hi-Fi (JBH) is a dislike of Heffernan’s. “The soon-to-be arrival of Amazon is already harming the operating environment,” he said.

“While JB Hi-Fi has been an outstanding share market performer over the years, the sector generally is out of favour with the market.”

JB Hi-Fi (JBH)

Source: ASX

Michael Wayne from Medallion Financial likes Janus Henderson Group. “The recent merger between Janus group and Henderson global investors will be a far more diversified global enterprise, providing the opportunity for growth through an imposing transatlantic distribution platform,” says Wayne.

“The entity brings together two asset management businesses with excellent reputations and track records, but has allowed the opportunity to cut costs by more than expected. JHG trades on far less challenging multiples and for that reason it offers superior value.”

Janus Henderson Group (JHG)

Source: ASX

Coca-Cola Amatil Limited (CCL) isn’t in Michael Wayne’s good books. “The business has been experiencing soft volume growth, declining margins and falling revenues from its Indonesia business,” he says.

“The trend of consumers shifting away from unhealthy fizzy drinks will remain a headwind for some time to come with increases across water, dairy and energy drinks only partially offsetting declines in carbonated and sugary drinks. Competitor pricing pressure and intense competition across the grocery industry have the potential to further compress margins.”

Coca-Cola Amatil Limited (CCL)

Source: ASX

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