Like
Michael likes Speedcast (SDA), the satellite data delivery company that has fallen from $6.80 to trade below $2.
“A number of operating difficulties have knocked the earnings outlook lower, the most recent in early July,” he says.
“It’s very unusual to see a tech company trading on a P/E below 10x, and investors who see a high moat around this business, and an eventual operating recovery, may see current share price levels as a buying opportunity,” he contends.
Source: Google
Dislike
On the other hand, Michael doesn’t like CSL, despite its terrific track record.
“It’s a great Australian success story and is now trading closer to all-time highs. However a number of its US units sell into China and any slip up on the earnings line at its half year report could see a 10% to 20% pull back,” he says.
“Active investors could consider locking in recent gains, with a view to buying back in around $180,” he adds.
Source: Google
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