LIKE
“I like Santos (STO),” Michael says. “Rising production, falling costs and $1.1 billion in free cash flow in the fourth quarter are all good reasons to consider STO, despite the gains from below $7 to touch $9 per share.
“However, the Joint Federal/state announcement of co-operation puts STO’s CSG assets at Narrabri in a new light.
“Current pullback below $9 could be a buying opportunity,” he adds.
Source: Google
DISLIKE
However Michael doesn’t like Coles (COL). “The grocer is trading near all-time highs on a PE multiple around 25x, with estimated long-term growth around 3.5%.
“Some may consider this too expensive, and the chart is showing a “double-top” formation.
“Investors may consider locking in gains,” he adds.
Source: Google
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