This week, three of our Super Stock Selectors are backing the big bank, CBA.
Julia Lee says CBA looks attractive with a yield of 5.5% and a fully franked yield of 7.7%, not to mention a dividend payment due in August.
“It’s time to start accumulating around and below $80,” she says.
Along with CBA, Switzer Super Report expert Paul Rickard likes the look of NAB at current prices.
The Budget’s small business incentives are also swaying some of our stock pickers, with Michael Heffernan tipping electronic retailer, JB Hi-Fi.
“It has attractive share market fundamentals and a 4.3% fully franked dividend,” he adds.
Michael McCarthy likes global biotech company Cochlear, with a management shift changing the company’s investing focus.
“After product hiccups and competition concerns, COH has pulled back from highs above $93. Imminent management changes point to further focus on the North American business, and in my view, estimates of slowing sales are misplaced,” he says.
“Forecast USD strength this week may see buying interest, and investors may find COH attractive around $80, leaning on established support at $78.”
Elio D’Amato likes REA Group.
“Despite a recent quarterly earnings release that did not live up to market expectations, REA is a business that we believe remains well placed to grow earnings at healthy double digit rates (earnings per share growth) for the foreseeable future.”
Gary Stone likes AGL as it has started to break out of a strong resistance zone of $16.
[1]“The AGL share price has been stuck in an eight year period of consolidation potentially making this an even more significant price breakout.”
Dislikes this week include mining groups Arrium and Newcrest, along with Southern Cross Media.
“Perennially operationally plagued, Newcrest still stands 50% above last year’s lows, despite a spot gold price just a few percent from five year lows. Reality must bite at some stage, and expected USD strength this week may catalyse a significant fall for NCM shares,” says McCarthy.
[2]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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