This week, ST Wong of Prime Value has placed Westpac in his good books. He sees the stock as a buying opportunity with the big banks being sold off amidst the messy Federal Election, a negative outlook on Australia’s AAA credit rating, and discussions of higher capital requirements.
Primary Health Care is out of favour on the back of lower profits.
“On-going re-basing of business by CEO Peter Gregg will result in lower than expected profits for FY16, whilst underlying trends still appear soft,” Wong says.
And wouldn’t you know it, Raymond Chan of Morgans echoes the same stocks as ST Wong this week. He’s after the opportunity to capitalise on a 6.5% projected yield during Westpac’s current bout of weakness.
Westpac Banking Corp
Source: Yahoo!7
Yield is the message tying the experts’ tips together this week, with Evan Lucas remaining positive on dividend-paying stocks like Telstra. He’s also bullish on gold for the short term and says Northern Star Resources is one to watch.
“Macro themes show that sovereign negative yields are turning gold into ‘yield play’ at 0%,” Lucas says.
He remains concerned on stocks exposed to Europe.
“Italian banks are going to create a massive stir over the coming months on Brexit, EU funding and non-performing loans (NPL),” he says. “MQG, QBE, HGG and the like will get caught up in these top down thematic issues, so have taken profit and moved out of the exposure until this issue calms down.”
Technical expert Gary Stone likes Whitehaven Coal, which has enjoyed a nice run-up recently.
Whitehaven Coal
Source: Yahoo!7
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