Last week’s Switzer Report raised question marks over the future stock price of Guzman y Gomez. After a sensational first day 36% spike, on Friday the company saw its share price slide $2.23 to $27.42, which was a 7.52% slump! Meanwhile, Fairmont Equities’ Michael Gable saw Santos as a “hot stock” and this stock rose 0.79% over the week as the market lost 0.37% after a higher-than-expected CPI didn’t help market confidence that interest rates should soon fall.
It was also a week when Resmed’s share price fell from $29.01 to $27.36 on Monday. Paul Rickard looked at the reason for the slide and the consensus view of analysts. Paul pointed out that US pharmaceutical giant Eli Lilly announced trials for weight loss drug Tirzepatide, which were successful. This made overreacting market players think: “Less fat people, less snoring and that’s bad for Resmed”. Paul pointed out that while Citi cut its target price from $36 to $30, Morgan Stanley left it unchanged at $33.70. More importantly, FNArena’s report on the consensus target price now sits at $33.23, about 20.2% higher than the last ASX price of $27.65.
Interestingly, the share price actually rose 0.31% over the week and while Paul didn’t recommend selling, holding or buying Resmed, his article in this Report has actually laid out the options you have as a share player. Right now, you could take profit or wait for more upside on the basis that rate cuts will help a growth stock, and that this belief in the potential of diet drugs to impact on obesity and snoring is greatly exaggerated.
For Michael Gable’s view on Resmed, check out Switzer Investing TV from last week. The hint is that the chart looks positive for those long Resmed. This week’s comeback in its share price after the early fall implies that. At least you’ve been warned and that’s the point of The Switzer Report!
On Monday last week, I looked at seven stocks that analysts have given the thumbs up to and I later ran these by Michael Gable on last week’s Switzer Investing TV show. These seven stocks were:
1. Ai-Media Technologies Ltd (AIM): down 2.86% for the week but up 1.49% on Friday when the market was down. The consensus view on this stock is a whopping +81% but it’s only for the thrill seeker.
2. Telix (TLX): up on Friday, +1.36% and 1.58% for the week, and up 67% for the year! Gable on my TV show thinks this bolter can go higher!
3. Boss Energy (BOE): saw analysts tipping an average rise of 30.4%. Last week it rose 0.73% but on the down day for the market on Friday it surged 2.74%! Where there’s smoke, there could be fire for this uranium play!
4. Audinate (AD8): had a bad week losing 5.89% but Friday saw a 1.02% rise, which suggests there are dip buyers out there. This stock has a lot of fans and could prove a beauty for the future when interest rates fall, and growth/tech stocks pick up.
5. Light & Wonder Inc. (LNW): only has a 7.3% consensus rise tipped but it rose 1.44% last week and seems to have fans, after rising 53% this year. Gable thinks the stock’s chart isn’t flashing any warning signs.
6. Nuix (NXL): has been an annoying stock but rose 5.12% last week. Again, Gable on Monday indicated that the chart was saying there could be another ride higher and that’s what happened.
7. EchoIQ (EIQ): rose a big 9.09% on Friday and put on 5.88% for the week. Once again, Gable didn’t have a bad word for this stock but suggested it was a buy at 10 cents and possibly a sell at 18 cents, where it is today.
Also on Monday, James Dunn specked three AI stocks and let’s see how they fared over the week:
1. Straker (STG): no change over the week at 48 cents but there hasn’t been many upside moves this year and it’s down 26.68% over the past 12 months.
2. Beamtree Holdings (BMT) is a better story, up 4.55% over the week, though it dropped 4.17% on Friday!
3. DUG Technology (DUG): This had a good week rising 0.72% on the down day Friday but for the five trading days the gain was a nice 6.15%!
The rough count for the week was the one stock we bagged was GYG. It headed south, while out of the 10 that the experts gave a thumbs up to, eight had nice rises over the week.
The Switzer Report aims to give you insights that we get from expert connections we have, who are people whose work it is to identify buying opportunities or time to sell occasions.
It’s a valuable companion for anyone who wants to see ‘stuff’ about stocks that the professionals are looking for 24/7. Bgut you do need to read it, think about the best ideas and then take action.
Important informati on: 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. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
