In Hot Stocks this week Julia Lee of Bell Direct points out that her last hot stock – Flight Centre back in January – has been doing very well.
“It was trading around $49 at the time and is now above $56. I’d be happy to exit around $60,” she says.
Likes
This week Julia likes Lynas (LYC), the major supplier of Neodymium and Praseodymium to the free world. Together these two rare-earth elements are known as NdPr and are used in magnets for electric motors.
“There is around 25000 tonnes per annum produced globally with Lynas responsible for around 6000 tonnes. With positive cashflow, operating efficiencies and the outlook for the underlying commodity strong, Lynas is looking strong,” Julia says.
Michael McCarthy, chief market strategist at CMC Markets, likes Super Retail Group (SUL) this week.
“The recent share price tumble makes Super Retail look attractive to me,” he says.
“[It’s] trading on just 10 times earnings, dividend yield (last two divs, including franking) of 9.5% and a nice “rounding bottom” on the charts.”
Chartist, Gary Stone of Share Wealth Systems, likes Aristocrat Leisure Limited (ALL).
“Aristocrat’s share price has risen above the key resistance zone between $24 and $24.50. Last week it retraced and tested this zone, which has now become a support zone. This technically completes a 9-month sideways moving consolidation pattern, with the potential for a significant advance just as occurred from May to August in 2016 and March to June in 2017,” he says.
Dislikes
Julia dislikes Isentia (ISD) this week. She says that while media monitoring would appear to have defensive cashflows, Isentia is not immune from the technological disruption that is occurring in the media space.
“Companies look to be seeing additional competition in this space from newer, cheaper players. Isentia is not only seeing revenue and customer numbers coming under pressure but also margins,” she says.
Michael doesn’t like Bingo (BIN), which although has been listed for less than a year, has seen a doubling in share price.
“Even after factoring in the 30% leap in H1 profits it’s trading on a PE of 23-24 times. Well known issues in the recycling industry could be coming to a head. Investors should consider taking advantage of recent share price gains,” he says.
And finally our chartist’s dislike is Woodside Petroleum Limited (WPL).
He says its share price is floundering below its long time support zone between $29.50 and $30.50.
“A short-term support zone has formed around the $28 to $28.50 area but a fall below this zone could see another fall to the mid $20s where it spent most of 2016. Any rise is bound to meet resistance at the $29.50 to $30.50 zone,” he explains.
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