This week, chief market strategist at CMC Markets, Michael McCarthy, is backing Platinum Asset Management (PTM).
“The stock sold down from above $8 to current levels around $6 on fears about earnings as funds under management (FUM) declined. The most recent date – May 2016 – shows FYM increased by 2.95% month-on-month.”
He says the estimated dividend yield and franking of around 9% looks appealing.
On the other side of the coin, Asaleo (AHY) is out-of-favour with McCarthy.
“Fast moving consumer goods tend to provide steady earnings profiles, usually with growth in line with the broader economy,” he says.
“After hitting an all-time high last week, it’s trading on a Price-Earnings ratio (PE) around 16x with a long-term growth estimate closer to 5% pa. Sell on valuation.”
Technical expert, Gary Stone of Share Wealth Systems, is impressed by Macquarie Group after its early-May share price bounced off a strong support zone between $59 and $61.50.
Since early May, Stone says Macquarie “has enjoyed higher-highs and higher-lows” and indeed completed a higher-low last week.
“Macquarie trends strongly in both directions. It appears such as trend is now establishing in the upwards direction. Look for Macquarie to rise above its recent peak of $75.11 in the next week or so.”
And what happens if it cracks the $75.11 mark?
Stone says there’s a high probability Macquarie shares will continue to rise and potentially challenge their $86.72 high achieved in November 2015.
A less impressive trend has been occurring in the share price of Tabcorp (TAH).
Stone says Tabcorp has confirmed the down trend by challenging, but remaining below, a strong resistance zone between $4.40 and $4.55.
“Tabcorp could move to the bottom of its down-trending channel which is around $3.65”.
Morgans’ managing partner Raymond Chan likes Origin (ORG) because cutting or suspending its dividend will allow more cashflow for debt repayment.
But Chan has put Slater & Gordon in his bad books because debt levels still appear too high.
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.
