It’s starting to look a lot like Christmas. And this year Paul Rickard says that means we’re in for a real pick up in retail stocks.
“The government is getting on top of things, it’s spring, people must be feeling a little richer with their property rising in value – I think we’re in for a strong Christmas,” he says.
The consumer discretionary sector had a pretty poor year, and a number of retailers have been hit pretty hard. Companies like JB Hi-Fi, Harvey Norman and Super Retail Group – might just be ready for a comeback.
Another stock that is leveraged to our retail spending and a favourite of Peter’s is carsales.com.au.
“It’s becoming the stock a lot of my experts seem keener on,” he says.
Miner makeover
Appearing on Switzer TV last week, and also in the Switzer Super Report on Thursday, Charlie Aitken was talking up the big resource companies that have managed to get a handle on costs.
“BHP’s grossed up perspective yield on consensus for FY15 of over 5% – it’s not the same as a bank, it’s not the same as Telstra but it’s a damn sight better than it used to be,” he said.
Woodside is looking even better.
“It is going to yield close to 8% grossed up and that is better than a bank, and pretty much better than Telstra,” Charlie said.
“I think some of these big, low-cost, long-life, long-duration resource stocks are now finding yield support.”
He’s definitely in the optimism camp with Peter and while he did get a bit negative on banks earlier this year, he correctly points out that a correction changes everything.
“If you predict a correction and it happens, you’ve got to react to it,” he explains.
“The last thing you want to do when the market corrects is get more bearish. You’ve got to switch it around.”
And for a Christmas stocking stuffer, he says that the new book about Kerry Stokes – Kerry Stocks: The Boy from Nowhere, by Andrew Rule – is an excellent read and very educational from a business point of view with some real lessons about making money.
On the Cup
And for the race that stops a nation, Peter says: “The Japanese Admire Rakti looks a class above but I do like the local Lucia Valentina on weight, barrier and its finish in the Caulfield Cup.”
If you want to take a trifecta, he suggests throwing in Fawkner (Tom Waterhouse’s tip) and Signoff.
“If you want a fifth for a trifecta, I’d throw in Cavalryman,” he says.
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