Among this week’s likes and dislikes is a medical device company, a travel outlet and a health care facility.
Michael McCarthy of CMC Markets likes Ramsay Health Care (RHC) this week. He says “the current sell down brings it to a support level and a better PE/growth reading.”
“In my view, estimates of an overhang from Ramsay Foundation selling are overdone. Also, it gets a kicker from a lower AUD.”
Source: ASX
On McCarthy’s ‘not-so-good’ list is medical device company, Cochlear (COH). At least, he says, at current prices.
“Trading at all-time highs, COH is now on a forward multiple around 38 x, and long term growth estimates only 15%,”says McCarthy.
“The cash dividend yield is less than 2%, and a shock could see this stock plummet. Good company that is potentially very risky at current share prices.”
Source: ASX
Michael Wayne from Medallion Financial Group likes technology company Nextdc (NXT) this week, which he says has retraced in recent weeks, offering investors an opportunity to take a position.
“The company is in the process of investing heavily to upgrade capacity and develop market leading 5-star energy efficient centres, giving the business a significant competitive advantage.
“FY18 will be a year of heavy investment, with the benefits to flow through from FY19 onwards once scale is achieved,” says Wayne.
Source: ASX
Wayne thinks Flight Center (FLT) is a ‘Sell’ this week, which he argues has been “overambitious” in its transformational targets by management.
“Business margins continue to fall in the face of stiff competition from a number of avenues,” says Wayne. This as it “looks to improve its blended online and physical models,” he says.
Source: ASX
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