Like: Metcash (MTS)
“I like Metcash (MTS) and we hold it in the Burman Australian Concentrated Shares Fund.
Metcash has supermarket, liquor, and hardware businesses. All three have been outperforming in 2020 due to people working from home and spending more on eating, drinking and working on their homes,” Julia said.
“While the strong hardware trend is at risk from stimulus payments reducing, a strong trend in food and liquor is expected to continue. Metcash is also benefitting as household footprints become smaller and consumers choose to shop locally or online.
“Trends such as these tend to be sticky and Metcash should continue to benefit into the new financial year,” Julia added.
Source: Google
Dislike – Challenger (CGF)
“I don’t like CGF (CGF),” Julia said. “Challenger is Australia’s largest provider of annuities. While its share price is trading at the lowest levels in seven years, we’re still not fans.
“The last set of numbers by the company demonstrate the difficult conditions in annuity sales with the old vertically integrated model unwound by the big traditional players in the market.
“That has led to a near $1 billion fall in annuity sales. Add into the mix life insurance margin headwinds and the outlook is too difficult to touch this company,” Julia added.
Source: Google
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