After a bumper comeback in commodity prices, Gary Stone says there are many stocks on the charts that he likes at the moment.
“Of a long list and a short list I chose Evolution Mining (EVN) which has recently filled a gap between $1.05 and $1.25 and achieved a new 52-week high,” he says.
“Its upside potential is to run all the way to $2.”
Another company on our likes list in a related sector is AWE – Michael McCarthy’s pick for the week.
Last week it announced that ongoing test drilling is indicating strong reserves at its key WA green fields project.
“Stabilising oil prices should lift the sector, increasing reserves could see AWE outperform,” McCarthy says.
Raymond Chan still likes ANZ after its recent changes –the announcement that CEO Mike Smith would step down at the end of the year. He points out that with its upcoming result in November, its PE is at the lower end of historical averages.
REA Group makes an appearance too.
“REA still is the dominant player in its chosen markets and appears to have held market share domestically, even with the presence of Fairfax-run Domain,” Lincoln Indicators’ Elio D’Amato says.
On the dislikes list, we’ve got Macquarie Atlas Roads, which may be affected by the rising Australian dollar in the very near term. Telstra also gets a mention.
“I don’t like Telstra (TLS) – or more precisely, I don’t like the price action,” McCarthy says.
Its competitors are beefing up and he believes a pull back to $5.20 is on the cards.
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
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