On the short list this week, Peter likes Computershare. He says with momentum stocks being sold off in the US, high-tech stocks like Computershare could be a good buy, if they fall too.
“A lot of people like the company on the basis that it is linked to IPOs, high-tech companies, etc. but these are now being dumped in the USA but it could be a temporary thing,” he says.
As well as Computershare CSL, Dulux and CSR are also on Peter’s radar.
Both Dulux and CSR are linked to a housing boom, and with new home sales up 4.6% in February and up 29.2% for the year, this looks pretty likely.
Paul Rickard agrees with Charlie’s call on Telstra.
“I am not chasing it – but around $5.00, it is yielding 5.8% fully franked, and I feel that is pretty attractive,” he says.
He is also upbeat on Toll Holdings and bought some at $5.17 last week.
“I expect that while this stock will stay under pressure in the short term, these sort of levels represent good long term value.”
It was hard to draw it out of him, but Peter managed to get Rudi Filapek-Vandyck on his Switzer TV show last week, to provide his view on the big miners.
“Buy BHP and Rio for the capital management and the dividends because the growth will be modest,” Rudi said.
“BHP is not a $50 stock but high $30 – yes.”
Having just read Michael Lewis’ Flash Boys, or the story of high frequency trading in the US, we should expect a lot of attention from regulators on the practice here.
In a note to Bell Direct clients on Friday, Switzer Super Report expert Charlie Aitken said that Bell Direct had never done a trade for an HFT client, and never would.
He called on the regulators to take more notice of the practice and for investors to consider shorting ASX.
“I encourage you to read Charles Schwab’s letter [on the ‘growing cancer’ of HFT]. Everything that Schwab mentions in his letter happens here in Australia as well. Once you have, short ASX shares..,” he told clients.
The regulators might also take note from one of the themes of Lewis’s book, which is although the high frequency traders might be front-running the system through their speed advantage, they are able to because of the unintended consequences of a new market regulation implemented in the US in 2007 – Regulation National Market System or Reg NMS.
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Also in the Switzer Super Report:
- Peter Switzer – DRPs – Great or crap?
- Paul Rickard – SSR portfolio review for March
- James Dunn – The next carsales.com, REA Group or Seek
- Tony Featherstone – Austbrokers best long-term bet in changing insurance space
- Rudi Filapek-Vandyk – Buy, Sell, Hold – what the brokers say
- Staff Reporter – Sydney property market strong, Melbourne dips
