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Peter Switzer is keeping his eye on Flexigroup, with an improving economy.

Switzer Super Report director Paul Rickard is in ‘wait’ mode at the moment.

“Last week’s rally of 3.6% was quite a rise. On dips, Telstra around the $5.00 mark looks like value,” he says.

If you can take a slightly medium-term view, Primary Health Care (PRY) was oversold last week. But again, Rickard cautions, buy in dips.

Second in charge at Montgomery Investments, David Buckland, talking on Switzer TV during the week, was quite impressed with the earnings numbers coming out of Credit Corp (CCP), Sirtex (SRX) and G8 Education (GEM).

“Sirtex has come out with a very very good volume announcement for the December quarter,” he said.

Montgomery buys companies when they fall below their intrinsic value, and one such company that has emerged from the reporting season is JB Hi-Fi (JBH).

“Same-sourced sales are up about 3%, the actual sales are about 6%,” Buckland said.

That should increase the earnings number by about 10 percentage points. Montgomery has a valuation on the company of $23 and it is currently sitting at around $18, which means there is a $5 potential for outperformance. Carsales.com (CRZ) is also on their radar.

“We quite like that result and that got down to sub $9 fairly recently and our valuation on that is probably north of $11,” Buckland said.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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