Likes
This week, Platinum Asset Management (PTM) makes it onto the good list for CMC Market’s Michael McCarthy.
“As the market cycle turns and investors examine their 2017/18 performance, it’s my view there will be a shift back to active management – and at $5.50, PTM may be the right way to benefit,” says McCarthy.
Source: ASX
Gary Stone of Share Wealth Systems likes Bluescope Steel Ltd (BSL). Here’s what he had to say about it:
“Bluescope has now broken through the long term resistance zone between $16.00-$17.00. This resistance zone was established in mid-2009 and has now been tested on numerous occasions between January and April this year.
More recently the stock moved through that resistance zone which is now acting as support. This is a positive sign for the stock. It can also be seen that a new zone of resistance has formed at around the $18.50 level, which has been tested on four occasions. Should that level be broken, look for a move towards $21.00 in the first instance, which would also coincide with the mid channel trend line. Protective stops can be placed between $17.00-$17.50.”
Dislikes
Featuring on McCarthy’s bad books this week is Wesfarmers (WES) following an all-time high surge on the back of optimism that the Coles spin-off would lead to higher share value.
“While this is a reasonable expectation, WES is now trading on 20x next year’s earnings – too rich for me. The stock is showing signs of faltering near $50,” says McCarthy.
Source: ASX
Stone says he’s not a fan of AMP this week. In his words:
“AMP has fallen to its 2009 long-term lows which are currently acting as the last remaining support level before a further fall is possible. If this were to occur, AMP could fall to the $3.00 zone, a level not seen since 2003. The stock needs to show signs of consolidating at this current level, and we would need to see a steady series of higher highs and higher lows initially, followed by a series of higher peaks and higher troughs. That appears to be a long way off at the moment.”
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