The high-profile bidding for Asciano (AIO) has grabbed the attention of CMC Markets Michael McCarthy this week who likes the stock.
“Two different groups are bidding for this stock above $9.20, while it trades around $8.80. A deal here is complicated, but in my view, it is also compelling, and may come at a higher price than currently indicated,” McCarthy says.
While Stantos (STO) got an upgrade in today’s Buy, Sell, Hold broker report, McCarthy does not like Santos, despite a bullish outlook for the sector.
“Santos shares are cheap for a reason, and the potential for further disappointment is real.
Elio D’Amato from Lincoln Indicators likes the consumer discretionary stock Collins Foods.
D’Amato says the company’s strong interim result puts it on a solid footing for fiscal 2016.
“There has also been reported improved contributions from across the company’s operating segments, most notably the earnings attribution from the KFC portfolio, D’Amato says.
Although Coca Cola Amatil (CCL) looks cheap, D’Amato still does not like the stock.
“We feel there is currently is not enough risks involved with the continued restricting program to outweigh the potential gains. This is compounded by the recent announcement that the Indonesian government is potentially looking to introduce a sugar tax that could affect the group’s Indonesian operations,” D’Amato says.
*SSR at 3 December 2015
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.
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.
