This week, two of our super stock selectors are eyeing off James Hardie (JHX) on the back of solid earnings results.
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For the fiscal year 2017 first quarter, James Hardie announced an adjusted net operating profit of US$66.7 million, an increase of 5% compared to the prior corresponding period.
“A good result with above-system growth in a low return environment,” McCarthy said.
“The share price has pulled back to upper trend line, and is likely supported by strong building approvals in US and any AUD weakness.”
The share price is currently at levels around $22.00.
“Despite the lofty price … results look very solid,” Evan Lucas of IG Markets said.
Source: Yahoo!7
On the flipside, McCarthy is less enthusiastic about Fairfax Media.
“This result shows why there is no need to be in this company,” he says.
Lucas will continue to watch the banks closely, after NAB posted a 3% drop in third quarter unaudited cash earnings to $1.6 billion on the back of rising bad debts.
“NAB is likely to suffer this week as cash earnings begin to slow,” Lucas said.
Gary Stone likes what he’s seeing with the share price movement of The A2 Milk Company (A2M).
“A price breakout with increased volume occurred on Friday 12th August above a minor resistance zone between $1.90 and $1.95. After a 7-month run-up from 45 cents to a $2.15 high close on 29th December 2015, A2M has taken a 7-month breather since then, while also completing a 61.8% Fibonacci retracement to $1.28.”
“A2M could be starting a new 7-month price rise, but first needs to rise above its previous all-time high of $2.36.”
And A2M appears to be moving in that direction, with the share price currently standing at levels around $2.00. Watch this space.
Source: Yahoo!7
Stone says Regis Healthcare failed to surpass a resistance zone between $5.05 and $5.30 has since fallen back to levels around $4.94.
“There is a high probability that the REG share price will retrace again to the support between $4.20 and $4.30, some 14% below its current price.”
Source: Yahoo!7
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