LIKE
Julia likes the online lottery business Jumbo Interactive (JIN), which has operations in Australia and Germany. Its flagship product is OZlotteries.com, which sells lottery tickets. “This company had a solid FY19 result and yet the market sold it off harshly,” Julia says. “The business looks to be in a good position heading into the new financial year.
“It has a substantial cash surplus, some of which is likely to be returned to investors.
“The downturn in pricing for this company is unlikely to last long,” she adds.
Source: Google
DISLIKE
On the other hand, Julia doesn’t like Bluescope (BSL), Australia’s largest steel producer, which has key production facilities in Australia, the US, New Zealand and Asia, though it could be worth another look in six months.
“The key to this stock is steel spreads and the company has said that in the 1st half of FY20, steel spreads would continue to weigh on earnings,” she says.
“There’s no reason to own this stock unless you think that steel spreads are going see a continuous time of improvement,” she maintains.
“It looks like this company has confirmed that it’s still locked in a downgrade cycle.
“It’s one stock to re-evaluate in 5-6 months, if a bottoming out of steel spreads is in sight,” she adds.
Source: Google
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