Bell Direct’s Julia Lee sees a value play in listed law firm Shine (SHJ). Lee says the stock has been sold down due to concerns about the other listed law firm – the embattled Slater and Gordon (SGH).
“Shine has no UK exposure and therefore no UK regulatory risks. The company has a strong balance sheet and low levels of debt. It’s time for Shine Lawyers to shine,” Lee says.
Lee, however, does not like the funds management sector and in particular does not like Macquarie Financial Group (MFG) because of the shaky markets.
“It’s going to be a difficult time for traditional money managers to increase funds under management, maintain performance and collect performance fees, Lee says.
This week, Elio D’Amato from Lincoln Indicators does not like the iconic surfing brand, Billabong International (BBG).
“Operations continue to struggle with the company recently seeing long-term US head Ed Leasure leave the business,” D’Amato says.
A stock that D’Amato does like is Blackmores (BKL) and believes that the company is not only positively linked to the Chinese market but its joint venture with Bega Cheese (BGA) and entry into the Indonesian market are all positives for Blackmores.
Chartist Gary Stone likes Trade Me Group (TME).
The company has “traded above a key support and resistance zone of $3.65 to $3.75 over the last month even during tough market conditions”.
However, he does not like Origin Energy, noting that its “weak share price has fallen below a support zone over the past month”.
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