This week, Michael McCarthy from CMC Markets is branching out from his core portfolio of dividend paying stocks.
He’s buying gold producer, Northern Star Resources (NST), as a portfolio hedge.
“The recent downturn in the broad market gave me an opportunity to broaden my portfolio…” he says.
“Although my base investment case is that globally economies and markets are improving, I’m buying this gold producer in case a crisis emerges. Despite a strong rally over this year, it’s still trading on a single digit PE ratio.”
Managing Director at Morgans, Raymond Chan, thinks momentum is strong for toll-road operator, Transurban Group (TCL), while Bell Direct’s Julia Lee says Bega Cheese (BGA) could be worth considering, as milk prices appear to be at cyclical lows. “Diversification into a higher value add area – infant formula – is also a positive,” Lee says.
Evan Lucas of IG Markets remains bullish on TPG Telecom (TPM), and says the company’s integration of iiNet is “tracking well.”
“…Broadband and bundle is a clear future of telecoms,” he says.
But what stocks are the experts less keen on?
Raymond Chan has placed Fortescue Metals Group (FMG) on the dislikes list, and Michael McCarthy says, despite liking the business, Blackmores’ performance last week indicated a “blow off top”.
And that’s a fair comment, as Blackmores surged to over $200 in intra-day trading on Thursday before falling back to close at $167.67 on Friday. He says he’ll be looking to buy again at levels around $155.
*SSR as at 29 October 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.
