As we head towards the end of the year (this is our last full week of the Switzer Super Report) today we’re going to recap our Experts’ picks for 2015.
The picks
You’ll see a lot of them in today’s report but to summarise we’ll start with Peter’s.
He likes betting on the smart guys and suggests WAM Capital, Geoff Wilson’s company, as a clever pick.
Geoff likes betting on the smart guys too and one of his favourites is Hunter Hall Global Value (HHV). It is a listed investment company trading at a discount to Net Tangible Assets.
“It has two main drivers of growth. First, it is exposed to international stocks, with 52% of its assets listed outside of Australia, where we see stronger drivers of economic growth in the main. Second, its largest holding, medical device group Sirtex (ASX: SRX) is currently undergoing trials for its major product, SIR-Sphere, to be used at an earlier stage of liver cancer upon diagnosis, with results expected mid-2015,” he says.
He’s not the only one that likes Sirtex. It’s also one of fund manager Roger Montgomery’s stocks.
“Sirtex’s business in the Asia Pacific is still very much in its infancy but has enormous potential and they continue to create a foothold in new markets,” he says today.
He also points out that there has not been a failed study into Sirtex’s revolution cancer treatment devices, which are called SIR-Spheres microspheres. It’s up by over 100% this year alone.
Another favourite of Roger Montgomery’s is CSL. Two weeks ago [1] we wrote about its 34% share price rise since March.
It’s certainly been a big year for IPOs. Medibank is finally trading above its first day’s high and the listing of surf, skate and action sports retailer SurfStitch Group on Tuesday is expected to make waves as well – with at least one fund manager saying it could be an ‘Alibaba’ for its founders.
One of Geoff Wilson’s favourite IPOs this year was intellectual property services firm IPH Limited (IPH), better known as Spruson & Ferguson. It has highly predictable revenue streams, good cash flow and a capital light structure.
It’s hard to know which IPOs will do well, so our tip for this one is to make sure you read Tony Featherstone’s article [2] on making money from new listings.
Energy ETFs
Last Monday [3] Peter suggested something for the brave – an energy ETF.
He said it was “only worth thinking about if you are prepared to wait possibly two years for the big payoff. What payoff? Well, go back and reread what history tells us and then think LONG and hard about it.”
Switzer Daily expert and economist David Bassanese says there are a few commodity/energy ETFs on the local market.
“One being QCB which is a broad currency hedged commodity ETF with 40% weighting to energy,” he says.
“Betashares also offers a currency hedged crude oil ETF for those bullish on oil (OOO). The beauty of currency hedging is that you don’t take currency risk – it is a pure play on the $US commodity price.”
Here is a list of the oil/energy ETFs and structured products available on the local market.
On overseas markets, there are tens of Energy ETFs. Here are the 10 of the leading ETFs trading in the USA:
On Thursday we’re going to have a look at our Experts’ best calls from 2014. Sirtex isn’t the only company that has been a profitable pick for our subscribers.
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