Question: What is your opinion on S32? I’m 75 and was thinking of having this in my portfolio.
Answer (By Paul Rickard): Tony Featherstone covered South32 a few weeks back. So far, he has been right on the money.
I am not rushing into buy South32 (yet,) as I think there will be more pressure on commodity prices (caused by a higher US dollar). Long term, there is probably some value.
The brokers are pretty positive on South32. According to FN Arena, the consensus target price is $2.54 (a premium 40.5% to its last closing price of $1.805). Sentiment is +1.0 (scale is -1.0 most negative, to +1.0 most positive).
Question 2: What are your thoughts on whether Woolworths (WOW) Shares as a buying opportunity for around the $26 – $27 range?
Answer 2 (By Paul Rickard): I think you will see Woolworths cheaper than $26 to $27. And, while the dividend for the second half of 14/15 will probably hold up, a cut to the dividend in 15/16 can’t be ruled out.
Even if they don’t fall in price from here, I think Woolworths shares will lag in any market rally (underperform). The supermarket wars are by no means over.
Have a look at my article on Switzer Daily.
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.
