This week, Senetas Corporation Limited (SEN) – designer and manufacturer of encryption hardware – gets the thumbs up from the CEO of Lincoln Indicators, Elio D’Amato.
“The company reported a solid FY15 result, with Senetas Corporation’s net profit before tax and significant items for the year at $5.673 million, up 109.9% on the $2.716 million reported during the previous corresponding period (PCP),” he says. “Management expect both profit growth and cash flow to be driven from strong industry fundamentals…”
Another company on the likes list is Australian retailer Harvey Norman (HVN) – Michael McCarthy’s pick. He says the stock is attractive at levels anywhere below $4.
A recovering milk price also justifies Raymond Chan’s pick – MG Unit Trust (MGC) – while Gary Stone says Australian online foreign exchange and payments company OzForex (OFX) is “in a text book uptrend and should challenge it’s all time high of $3.50 after taking a breather at around $3.00”. Julia Lee likes three of the big four banks and says there are signs pointing to higher share prices before the year’s end.
“With the probability that the RBA will continue to cut rates, this should be a positive for the banks. While slowing growth in residential property, rising capital requirements and a turn in the bad debt cycle are all negatives, in the short to medium term, the selloff is overdone and the banks should bounce back,” she says.
On the dislikes list, we’ve got Woolworths (WOW), which, after an 11% rally, provides an opportunity for McCarthy to sell out. “No credible strategy, further management renewal required and earnings growth below system mean there is no reason to hold WOW shares,” he says.
*SSR on 15 October
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.
