Like
While disclosing that he’s a shareholder, Michael likes Galaxy (GXY): “The Wesfarmers bid for lithium producer Kidman Resources returns attention to the sector.
“The 45% bounce in KDR’s shares rubbed off on other producers. GXY is the second most short sold stock on the ASX (17.2% short), and any upward momentum could start a scramble,” he says.
“It is speculative,” he stresses.
“With higher risk but higher potential reward,” he adds.
Dislike
Although Resmed’s Q3 report last week showed an impressive turnaround (sales +12%, profit +15%), Michael says while he likes the company, he doesn’t like its share price level currently. “From the troubled Q2, the share price bounce of 10% + was in my view an overreaction,” he says.
“Even after upward revision, the PE/growth ratio is close to 3 times, making the sleep apnoea device maker potentially expensive.
“Additionally, the failure to breach the all-time high at $16.57 gives a technical sell signal,” he adds.
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