Michael Wayne from Medallion Financial likes Speedcast International (SDA) this week. SDA is an emerging business that provides satellite-based communication networks and services in the satellite service provider industry.
“The business is one of the worlds most trusted providers of end to end Communications and IT Solutions to businesses operating in remote locations,” Wayne said
“The company has won a number of key contracts in recent times highlighting the businesses strong industry position and their ability to provide networks, communications and support in remote locations, both on and offshore”.
Speedcast International (SDA)
Source: ASX
In Michael’s ‘not so good books’ is Coca-Cola Amatil (CCL) which has been experiencing soft volume growth, declining margins and falling revenues from its Indonesia business.
“The structural 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,” Wayne said.
“Competitor pricing pressure and intense competition across the grocery industry have the potential to further compress margins.”
Coca-Cola Amatil (CCL)
Source: ASX
Westfield Corp (WFD) is in Michael McCarthy’s good books this week.
“A $10 takeover bid and a stock price close to $9? Hard to see the deal not proceeding. The assets are not strategic, many are outside Australia and the target board agrees to the deal”, he said.
McCarthy labels it as “a potential quick alpha boost for portfolios”.
Westfield Corp (WFD)
Source: ASX
McCarthy doesn’t like Woolworths (WOW) as it is near the $28 resistance.
“The forward PE is around 21x and in my opinion WOW cannot be considered a defensive investment at these prices. Long term fans may wish to see now to buy back later”.
Woolworths (WOW)
Source: ASX
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