Today in our Super Stock Selectors, we’re including some of our top expert picks from last week’s newsletter.
Charlie Aitken is a big favourite of our subscribers and his pick of the big four banks last week I’m sure will be a favourite too. Two of the big four banks – ANZ and NAB – are on James Dunn’s list of five battered blue chips for today as well.
If you’re underweight financials and thinking you need to add a few more, these battered prices are well worth considering. As is dollar-cost averaging if you’re worried prices will go down further.
Raymond Chan likes the look of Telstra at these prices. He says the yield is starting to look defensive. And Elio D’Amato likes Harvey Norman.
Elio says that the company provided a strong annual report recently with total operating revenue for FY15 growing by 6.3%. That drove net profit after tax to $261.8 million or an 18.9% increase on the previous corresponding period.
“We continue to expect future growth to be underpinned by continuing strength in the Australian housing market in the short and medium term. We were advised that FY16 started on a positive note with Australian Franchisee sales up 6.6% (like for like basis) in the eight weeks to 27 August,” he says.
If you want to see what the boss has to say about the company, watch Peter’s interview with Gerry Harvey last week here.
* 3 September 2015 Switzer Super Report
Unlike Harvey Norman, Myer failed to impress following its annual results and its share price has suffered as a result. Michael McCarthy was not impressed.
“Any company board that dilutes shareholders by 40% at the lowest share price recorded should, in my opinion, resign,” he says.
“The company’s strategy has repeatedly failed, and while the plunge in earnings has stopped for now, the latest strategy statement is long on buzzwords and short on details.”
Our chartist Gary Stone has an interesting like – Village Roadshow (VRL).
He points out that it has shown price strength during a volatile period and has risen above an important support/resistance zone between $6 to $6.40 over the last two weeks.
Village Road Show
Source: Yahoo!7 Finance, 7 September 2015
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.
