This week, Elio D’Amato of Lincoln Indicators likes Australian telecommunications retailer and leading channel partner to Telstra, Vita Group (VTG). “[Vita Group] operates 100 of Telstra’s 365 retail stores and 21 Telstra Business Centres. It sells a range of products and services on to Telstra’s network.”
“Vita Group Management has demonstrated a track record of strong performance via the execution of the strategic shift from company branded stores to the Telstra branded format, with significantly improved revenue and profitability generation across this segment of the business,” D’Amato says. He will be looking out for Vita Group’s management to deliver on a track record of revenue and earnings growth in the telco sector, and expects a successful closure of their NextByte brand to improve overall business profitability.
Also in the likes list this week is listed investment fund, Platinum Asset Management (PTM). Michael McCarthy from CMC Markets says a pullback in prices puts this company on the radar. “In my view, this is a well-managed firm that is likely to continue to command a P/E premium.’’
Our resident technical expert, Gary Stone, says media intelligence company, ISentia Group (ISD), has strongly bounced off a support and resistance zone between $4.20 and $4.30. “Technically, it looks like it’s attempting a new high and heading towards the $5.20 level from its current price of $4.60.”
Raymond Chan likes the Commonwealth Bank, which will announce its results for the half year to 31 December 2015 on Wednesday 10 February. But he is still concerned about Fortescue Metals Group’s (FMG) debt profile. The company has featured consistently on Chan’s dislikes list for over six months.
Law firm Slater and Gordon (SGH) is in the bad books for Michael McCarthy, with no clarity on the company’s valuation. “Despite a share price slashing from above $8 to below $1, there is no clarity around company earnings, and therefore valuation,” he says.
[1]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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