This week, Evan Lucas of IG Markets says he doesn’t have a clear ‘’like’’ or ‘’dislike’’ call. Instead, he’ll be closely watching CBA’s earnings results (out on Wednesday) and Rio Tinto’s results (released on Thursday).
“The question will be – is CBA’s expected clean results enough to see the market piling back in?” says Lucas.
CBA’s half-yearly cash profit is expected to be $4.7 billion, a 2% increase on the previous year’s first-half, while the CET ratio is expected to come in at 10.5%.
“What I feel may create headaches is blurred guidance or even the mere mention of the current conditions being ‘tough’.”
He says he’ll be watching the cost, CAPEX expectations and debt of Rio Tinto in the company’s full-year numbers.
“Rio continues to get away from long-term planning initiatives to be concentrating on a short-term continual trading platform. I just can’t get excited by Rio in the current market.”
Chief Market Strategist at CMC Markets, Michael McCarthy, says despite suffering some pain after buying in at higher and lower levels, he likes BHP.
“…this is a rare opportunity to weight my portfolio towards one of the world’s best operating miners. In my view, we have seen the low in commodity prices, and the charts are now suggesting a BHP bottom is in place.”
He’s less excited about gaming giant Tatts Group, which is trading on a “hefty premium.”
Raymond Chan likes the BetaShares Crude Oil ETF (OOO), with oil entering into a seasonal strong period.
Ansell’s profit downgrade put this company in Chan’s dislikes list.
Elio D’Amato from Lincoln Indicators says REA Group’s main driver of revenue and profits growth over the first half of FY16 was its premium listings growing strongly across the board.
“The growth in premium listing penetration in the domestic market and further product innovation should help deliver the growth and allow for the potential further expansion of margins,” D’Amato says.
“Looking forward, the investment into the Asian (IPP) and US markets (Move) remain potential avenues for growth.”
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.
