This week we bring you the first week of our Super Stock Selectors survey. Each week we will survey around 10 to 15 analysts, fund managers and strategists to find out what companies they’ve got their eyes on.
These aren’t recommendations, merely companies they are watching on the upside or downside. Our first survey has seven respondents with a varied range of different stocks.
Food is definitely a theme this week, with Julie Lee singling out Yowie Group.
“Who doesn’t love chocolate with little animals inside,” she says. “Yowie’s product is being rolled across the US with potential rollout across over 19000 stores.”
That certainly must be good for its bottom line.
And Raymond Chan is a big fan of Capilano Honey.
“Export is a strong growing market as Capilano exports to more than 32 countries and the demand for honey is increasing globally due to heath benefits. We also see further high margin opportunities emerge from increasing production of manuka honey,” he says.
Raymond doesn’t like Fortescue, saying that although it has established itself as one of the biggest iron ore producers globally, its debt profile relies heavily on strong cash flow from a robust Iron Ore price which is unlikely to rebound in the near future.
Michael McCarthy presents the opposite case for the company, which he says was one of the most interesting stocks last week as Andrew Forrest reminded us that he is that rare individual – a disruptive miner.
“Why do markets applaud disruptive behaviour from technology companies and condemn it in more traditional businesses,” he wonders.
“Combined with a share price at six year lows, near record short sold positions, and clear signs of stabilisation in commodity prices generally, Fortescue is the most interesting stock,” he says.
Chartist Gary Stone presents the following analysis for reason for liking Boral.
“In mid-February Boral’s share price broke above a previous resistance zone of $5.70 – $5.90, one that Boral has attempted to break through on a number of occasions since October 2009 (see chart below),” he says.
Boral’s share price has also held up well during recent market weakness.
On the downside of the ledger, Myer gets two mentions from Evan Lucas and Elio D’Amato.
“Since relisting five years ago, the iconic department store has struggled with its turnaround strategy, suffering from stagnant sales and growing costs, which we have seen repeated in its latest financial results,” D’Amato says.
And Lucas says that Richard Umbers “has a monumental task in turning around the embattled retailer”.
We hope our panel of Super Stock Selectors has provided some food for thought when it comes to your investment process.
Next week we plan to have a few more members join the panel and we’ll keep tabs on all their answers so we can provide regular updates during the year.
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.
