This week, Raymond Chan of Morgans likes Rio Tinto in the wake of its earnings results, which were in line with market expectations.
For the first-half, the miner reported earnings of US $1.56 billion, down 3% on the second half of 2015 and 47% during the corresponding half in 2015. Analyst forecasts were around US $1.47 billion.
Despite these better-than-expected results, the big miner did express caution about China and the outlook for commodity prices.
You can read Paul Rickard’s analysis on the company’s results – and the stock as a ‘bet on China’ – here [1].
[2]Raymond’s ‘dislike’ remains Virgin Australia Group. For the second week running, he says that the company is “still operating in a very challenging environment,” despite bouncing back from a recent low.
The stock is currently trading around $0.25.
Virgin Australia
Source: Yahoo
One stock features in the ‘likes’ and ‘dislikes’ column of our respective contributors this week – the BHP spin-off, South32.
It’s out of favour for CMC Markets’ Michael McCarthy, but only because it looks like profit-taking time!
“The BHP spin-off has rallied back, doubling in 6 months and trading to one-year highs. It’s meeting resistance at $2.00. In my view, a good time to take profit.”
That share price rally is why Gary Stone of Share Wealth Systems has placed it in his good books.
“On July 11, the S32 share price broke out above the resistance zone of $1.65 and $1.75. The share price has since retraced to form a short-term rounding bottom well above this previous resistance zone, which has now become a support zone.”
He’s optimistic on the outlook for the share, and believes it could test its all-time high of $2.45 from current levels.
South32
Source: Yahoo
Stone gave the thumbs down to Japara Healthcare.
“The JHC share price remains well below its resistance zone of $2.75 to $2.85 and continues to weaken,” he says.
Japara Health Care
Source: Yahoo
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.