Why our Super Stock Selectors like Treasury Wine Estates and Ansell

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The goodies

This week, Michael McCarthy has placed global wine producer Treasury Wine Estates on his likes list.

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“Despite recent rises, the long-term growth estimates around 15% make a 27x P/E (price-earnings ratio) buyable. Looking for new highs,” he says.

Treasury Wine Estates

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Source: Yahoo!7 Finance

Manufacturer of protective solutions – Ansell – is also in the good books with our selectors this week.

Ansell’s share price completed a “rounded bottom pattern” last week that found a key support zone between $21.50 and $22, notes Gary Stone of Share Wealth Systems.

“This zone was previously a strong resistance zone that Ansell broke above nearly two months ago.”

“All-in-all, Ansell is potentially set up for a continuing rising share price that has been rising since February 2016, when Ansell completed a 61.8% retracement of its prior strong uptrend that lasted six years to February 2015.”

It’s this technical pattern that’s made Stone bullish on the direction of Ansell’s share price over the coming months. He thinks there’s a high probability it could test levels around $30 – watch this space.

Ansell

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Source: Yahoo!7 Finance

Raymond Chan kept Regis Healthcare on his dislikes list this week, but BHP made it on to his likes list after cracking the $23 mark.

BHP has continued to climb after hitting levels around $14 in February this year.

BHP

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Source: Yahoo!7 Finance

Out of favour

This week, McCarthy placed Syrah Resources on his dislikes list after the sudden departure of the MD possibly being a bad omen.

“The Mozambique miner is shifting from exploration to production – but that doesn’t explain the sudden departure of the MD. This is usually a sign of more bad news to come,” he says.

Macquarie Atlas Roads features on Stone’s dislikes list because “nothing keeps rising forever.”

“Last week, MQA completed a 23.6% retracement of that six-year up trend and fell below a support zone between $4.80 and $4.90.

Technically, there is a high probability that MQA will complete at least a 38.2%, or more likely a 50% retracement of that up trend,” he says.

“This could take MQA’s share price to the $4 to $4.15 zone or more likely to the $3.35 to $3.60 zone to complete a technically higher probability 50% retracement.”

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.

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