Woolworths (WOW)
This week, Paul Rickard reminds us of the great run that Woolworths has had so far this year – up from $33.85 at the start of the year to $37.74 on Friday.
If you’d followed Paul’s tip back in February, you would have had a happy couple of months.
“Now a market darling, my sense is that Woolworths is starting to look expensive – around these prices look to take some profits,” he says.
Wesfarmers (WES)
But he has not been impressed with Wesfarmers.
“On the other hand, Wesfarmers have made no headway – closing on Friday at $43.94 compared to $44.04 at the start of the year,” he said.
Stockland (SGP)
On Switzer TV last week, JB Were executive director Mike Kendall chatted about the market and the economy. He believes that there will continue to be bouts of volatility but stocks will head higher during the course of the year.
“What we’re seeing is the market pause, recalibrate,” he said.
He also expects Stockland to improve its informal $2.4 billion offer for Australand, which was rejected last week.
“Certainly I think the combination of both is a pretty exciting one because they’ve got a lot of complimentary assets,” Kendell says.
“Long term, I’d probably put my shares with Stockland, but they’ve got to get through this takeover first of all and it’s all going to depend on price.”
Greencross (GXL)
One stock I’ll be keeping a close eye on is Greencross. Formerly a company of veterinary practices, with the acquisition of Petbarn through its parent Mammoth Pet Holdings earlier this year, it now has a diversified exposure to the growing pet industry – an industry estimated to have generated $8 billion last year. The company is optimistic the acquisition could triple EBITDA in this financial year.
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.
Follow the Switzer Super Report on Twitter
Also in the Switzer Super Report:
- Paul Rickard: The next hot IPO – Genworth
- Peter Switzer: Dollar to fall – buy these stocks
- Rudi Filapek-Vandyk: Buy, Sell, Hold – what the brokers say
- James Dunn: Dividend cutters to be aware of
- Staff Reporter: Is the property market cooling?
