There has been a lot of hype around the IPO of accounting software firm MYOB today and it features on our list of likes from our Super Stock Selectors this week.
IG Markets’ Evan Lucas expects it to get a bit of a lift during its first week of trade. But he’s fast losing patience with Westpac after some lacklustre results this morning.
“Results are weak and it has now corrected (-12%). I think it’s likely to head lower this week before bouncing later in the month,” he says.
Paul Rickard also does not like Westpac after their poor result.
“They were priced as the second most expensive bank – on the back of today’s result, they don’t deserve that premium,” he says.
But for our list of favourable stocks, our chartist Gary Stone picks JB Hi-Fi this week.
“After some weakness during 2014 JB Hi-Fi is in a short, medium and now recently started long-term trend,” he says.
In addition, JB Hi-Fi has held up well in the recent market weakness, has a trailing PE Ratio of 15.2, which is below the overall market PE, and has a yield of 4.5%. That certainly makes it a stock to watch.
Paul Rickard still continues to like Telstra as a yield play and Raymond Chan still likes ANZ. He says its recent share price weakness is a reason to buy. It will report half-yearly results tomorrow.
Another cheap stock this week is SEEK, Michael McCarthy’s pick. Recent management changes and a disappointing report in February have brought the company’s PE multiple down from the mid thirties to the high twenties, which makes it a cheaper proposition. McCarthy also likes its long-term growth prospects.
Elio D’Amato from Lincoln Indicators lists debt collector Credit Corp Group as his like for the week because of its good track record and growth trajectory.
“Credit Corp provided a trading update last week and marginally increased their Purchased Debt Ledger (PDL) acquisition guidance citing improved pricing structure. The group also tightened their earnings guidance range and now expect net profit of $37-38 million for FY15,” he says.
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.
