Morgans’ Raymond Chan today likes the look of CBA after its recent pullback. And after being pegged as one of the companies to reach the $100 mark, at just over $75 it certainly looks cheap.
Paul Rickard likes BHP, which is looking more and more like an income stock (see Paul Rickard’s analysis today), and Telstra and NAB also as long-term income stocks for investors.
[1]Julia Lee from Bell Direct has an interesting one. She likes sandlewood producer TFS Corporation.
“With the average realised sandlewood oil price at US$4385/kg and the harvest in FY16 expected to increase, TFS Corporation is an attractive proposition,” she explains.
“In addition, the move into pharmaceutical products opens up a logical growth area.”
After a strong annual report, Elio D’Amato likes the Arena REIT (ARF), which invests in properties in childcare, education, healthcare and government facilities.
“Looking forward, ARF have provided FY16 distribution guidance of 10.71 cents per security (up 7% on FY15) taking into account the expected rental growth from the existing portfolio, the full benefit of overhead savings and the completion of new childcare centres,” Elio says.
Our chartist Gary Stone has an interesting play today. He likes Incitec Pivot after its share price completed a 61.8% retracement back to its previous breakout zone between $3.30 to $3.40 (see chart). He says that zone formed the upper boundary of a two-year range.
[2]
“The first test of this zone has passed and I suspect if tested again should pass again,” he says.
He likes patterns like these due to the potential for a high reward to risk payoff.
“A medium term horizon investor would place an initial stop loss at around $3.25 to cut out at a small loss if the share price retreats, but hold on to a rising position that should re-test the high again at $4.40 for a potential 30% gain for risking around 5% to 7%, a 4 or 6 to 1 reward to risk,” Gary says.
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.