We have a few people away this week so not as many responses to the Super Stock Selectors but the results we do have are telling.
Michael McCarthy says he likes Santos but then clarifies by saying: “That’s not true – I rate Santos as the least among the major oil and gas plays. However, at current pricing it is compelling. A share price close to $7 implies not only further falls in oil prices, but a sustained time at those lower levels.”
Paul Rickard is also eyeing Santos. He is targeting just under $7 as the price to start nibbling. He feels that the shorters are going to continue to make life hard for Woolworths – and in any rally, Woolworths will underperform.
ST Wong likes My Net Fone (MNF) because it’s about to acquire the global wholesale voice business of Telecom New Zealand International (TNZI) for $21m.
“The acquisition appears to be of strategic importance and earnings accretive to My Net Fone. On completion of the transaction, My Net Fone will have an established voice network with a substantial international capability and customer reach.”
But he doesn’t like the health site comparator iSelect, saying it has an unproven long-term business model.
Peter joins our panel this week and his favourite is Orora because it’s a solid company, with good management. A lower dollar should also help, along with an improving Australian economy over next 12 months.
Fortescue is still not very popular, with two dislikes.
“This is a contrarian play and it could even be a takeover target but it’s a speculator stock and not the reliable kind I want to own, especially with its debt,” Peter says.
Evan Lucas remains big on Macquarie Group. He says the company has benefited from increased activity in funds under management (FUM), asset deals and banking over the past 18 months.
“However, recent activity in the European and US markets has seen its transaction-based businesses – particularly its fixed income, commodities and currency (FICC) division – returning to double-digit revenue and EPS growth, which in turn is further ramping up FY15 expectations.”
Elio D’Amato says that the recent share price weakness in Caltex, following on from the Chevron sell down, could in fact be an opportunity.
“The company’s operations are unaffected by the Chevron transaction and Caltex is now better placed to distribute its franking credits, pursue growth opportunities and advance on indices from the larger free float,” he says.
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