It’s a mixed bag of stock selections this week, with everything from healthcare to banks and major oil giants featuring in our experts’ stable of picks.
Energy company Origin is in the good books for Morgans’ managing partner Raymond Chan. He says the company’s Australian Pacific LNG (APLNG) project is “ramping up OK,” and that the balance sheet looks good after last year’s capital raising.
Chan has also placed two large-cap health stocks – Ramsay Health Care and Sonic Healthcare – in his bad books. He says that while they have run along with the local market (up 8% over the past month and 9.3% over the past quarter – similar to the ASX performance) earnings growth remains subdued and valuation “appears stretched.”
But Senior Portfolio Manager at Prime Value, ST Wong, has a different opinion on Sonic Healthcare.
He’s optimistic on the concessions pathologists have received from the Coalition to defer changes to the bulk billing incentive, along with the “assistance to reduce rentals related to pathology collection centres.’’
BlueScope Steel is out of favour with Wong, as the company’s share price will likely be dented from the softer Chinese data in April.
The strong financial health of online automotive classifieds business, carsales.com, has earned its position in the likes list of Lincoln Indicator’s Elio D’Amato.
“With the aim of being the number one provider in all markets, the company continues to extend its presence internationally, particularly in Latin America.”
He’s not concerned the company’s domestic operations look relative mature, due to expectations that future growth will come from its overseas exposures.
Evan Lucas of IG Markets says Macquarie Group is on his watch list and is the best way to play the falling Aussie currency.
Lucas’ optimism was mirrored by our Switzer Super Report expert Paul Rickard, who made the call that Macquarie was in the buy zone at levels around $65.
Just one week after making that call, the share price has surpassed $71!
CMC markets’ Michael McCarthy said that with Papua New Guinea up and running and a bit of sniffing around Oilsearch from global energy giants, it’s possible the company could receive a potential takeover bid (should the company’s price fall substantially).
“On the other hand, upward pressure on gas prices may see some PNG gas diverted to Australia. In my view, limited downside and huge long-term upside potential.’’
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