FN Arena editor Rudi Filapek-Vandyck is not as bullish as some Switzer Super Report experts and appearing on Switzer TV last week said the current market was “exceptionally frustrating”.
He hasn’t been too impressed by the run of profit warnings, particularly in media and IT, but says in this kind of environment it’s a good idea to buy the traditional “bellwethers” or the stocks “that have very little chance of announcing a profit warning” on dips.
“I’m still very much in favour of Flight Centre,” he said when asked to name his top picks.
“I still like Invocare and if I had to think of a third one I would still add, on weakness, .. more Amcor to my portfolio because you do get the international exposure and lets not forget CSL.”
One of Peter’s favourites ever since he met its CEO a few months back has been Ardent Leisure (AAD).
At the beginning of March Peter told SSR readers that: “I was impressed with Ardent Leisure’s Greg Shaw, when I interviewed him this week on Switzer.” he said.
“His subtle positivity about his company’s prospects were not all Dreamworld, in my opinion. This was a stock I brought to you via Geoff Wilson a few months back and it does look like the ducks are lining up nicely for the company.”
Since then, the stock has rocketed from $2.30 to over $2.70 and that’s from a base of about $1.70 this time last year.
Ardent Leisure (AAD)
Last week Equity Trustees chief investment officer, George Boubouras drew our attention to James Hardie, which closed on Friday at $13.77. He has a price target on the company of around $15.50 by mid July next year.
EQT added the company to its portfolio to get additional exposure to the housing and building construction cycles in Australia and also offshore.
“Current valuations, while not cheap, are justified following ongoing recovery within their markets,” he says.
“The building cycle continues to have upside and the current accommodative monetary policy will continue to act as a tailwind over the coming year. A stock like this would be a potential sell when global conditions require some tighter monetary policy. That would be more of a 2016 issue.”
James Hardie (JHX)
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