LIKE
Michael likes A2 Milk (A2M). “The cleaner food of Australia and New Zealand is an important long-term thematic in my portfolio,” he says.
“Analysts are worried about increased competition for A2 products, especially baby formula in China.
“However, the northern hemisphere competition lacks the “pure food” edge that companies like A2 enjoy.
“A2 Milk has been on my radar since the sell down from $17 and the break back above $12 is my buying trigger,” he adds.
DISLIKE
Michael doesn’t like Carsales.com (CAR). “The automotive distributor AP Eagers reported that new vehicle sales are down for the 19th month in a row,” he says.
“There is an argument about whether this is a cyclical or structural decline in car ownership.
“My money’s on structural and I think CAR at all-time highs near $16 is a selling opportunity,” he adds.
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