This week Michael McCarthy, chief market strategist at CMC Markets, likes Cleanaway (CWY) following the announcement It would buy Tox Group last week.
Cleanaway (CWY)
“The stock has tripled in two years supported by earnings momentum,” he says.
“A positive outlook is bolstered by the acquisition of the Tox Group (TOX), and the enthusiastic take up of the entitlement issue. It’s difficult to make a case against individual shareholders taking up their entitlements at an approximate 20% discount to market.”
Also, appearing on Switzer TV last week Raymond Chan from Morgans picked Macquarie (MQG) as a good company to benefit from stronger growth in Europe and potentially a stronger euro versus the Aussie dollar.
Macquarie Group
“They’ve got quite an established earnings business in Europe and are involved a lot in infrastructure,” he told Paul Rickard on Switzer TV.
If it fell back down to around the $90 mark it would be even more attractive.
But McCarthy doesn’t like Brambles (BXB) because it might be a tad overvalued.
Brambles
“The stock has benefited from an improving global outlook and a strengthening US dollar,” he says.
“A falling US dollar could see a re-rating of the stock which in my view looks expensive on most metrics.”
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.