It’s earning season and given the response by the market to JB Hi-Fi’s result (see James Dunn’s earnings preview for more), there are going to be some interesting opportunities.
Switzer Financial Group director, Paul Rickard, is urging caution on Ardent Leisure (AAD) after its recent run up. Ardent pre-announced their result last week.
Ardent has a portfolio of leisure and entertainment venues, including the Dreamworld theme park, AMF Ten-Pin Bowling, Main Event in the USA, Goodlife Health Clubs and d’Albora Marinas.
“After completing an institutional placement at $2.41 to fund the purchase of eight fitness clubs in Western Australia, the stock was one of the few to rise on Friday, finishing the week at $2.66. Now trading on a PE of 18.5, Ardent looks priced for near perfection. Take profits,” Paul says.
And Peter wonders about Oz Minerals.
“Some courageous experts think Oz Minerals can be trusted! It has hurt a lot of investors in the past but have things changed?”
Its share price over the past 12 months shows that it has risen, but with a fair bit of volatility.
Oz Minerals (OZL)
Source: Yahoo!7 Finance
Our chartist Gary Stone of Share Wealth Systems points out that CSL has been acting exactly as he predicted two weeks ago.
“From here, the odds are that CSL’s price will make a new low below $66.16 and move lower or consolidate in a wide ranging sideways movement for some weeks or even months,” he said in his technical analysis [1] then.
Since then, CSL has dropped to as low as $63.94 this morning.
CSL
Source: Yahoo!7 Finance
Speaking on Switzer TV [2] last week, chief investment officer of Equity Trustees, George Boubouras, said that if you believe the Aussie dollar is going to fall then you should be looking at companies like Ansell, Brambles, Crown Casino, Oil Search or Macquarie Bank.
“That’s what you’re doing for a lower Aussie dollar but at the moment that’s not happening,” he says.
It may not be happening yet, but here at SSR we believe it will happen later in the year when the US starts raising interest rates. Peter will let you know exactly when in his regular Monday missive.
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.
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Also in the Switzer Super Report:
- Peter Switzer: Know who you are and invest accordingly [4]
- Paul Rickard:How much cash is enough? [5]
- Rudi Filapek-Vandyck: Buy, Sell, Hold – what the brokers say [6]
- James Dunn: Earnings season preview – CBA and Telstra [7]
- Gary Stone: ASX/S&P 200 to head to 6000 by 2016 [8]
- Staff Reporter: Melbourne market pushes clearance rate down [9]