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18 Share Tips - 5 March 2012

18 Share Tips - 5 March 2012

18 Share Tips to BUY, SELL & HOLD from Australia's leading brokers

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By Anthony Black 05.03.2012

Richard Batt, Shadforth Financial Group

BUY RECOMMENDATIONS

Blackmores (BKL)

CHART

Chart: Share price over the year to versus ASX200 (XJO)

For the 2012 first half, BKL reported a sales increase of 9 per cent compared to the previous corresponding period. Sales in Asia grew by 28 per cent, which is respectable given the difficult retail environment. The company is expecting to deliver modest profit growth in 2012, and is known for achieving guidance, which in an uncertain retail environment can only be seen as a positive. The interim fully franked dividend was held at 44 cents a share. BKL is an ideal exposure to the healthcare sector for long term portfolios.

Woodside Petroleum (WPL)

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Chart: Share price over the year to versus ASX200 (XJO)

The oil and gas giant recently announced a net profit of $1.507 billion for the full year ending December 31, 2011. A key announcement was the Pluto LNG Project - after delays and increasing costs, it’s nearing completion. This is a relief for concerned investors. With a robust balance sheet of $2.2 billion in cash and undrawn debt facilities, the company can proceed with other growth opportunities. 

HOLD RECOMMENDATIONS

Sonic Healthcare (SHL)

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Chart: Share price over the year to versus ASX200 (XJO)

SHL announced an 8 per cent increase in net profit to $146 million for the six months to December 31, 2011. The company indicated that a strong Aussie dollar had softened results, but didn’t impact underlying performance. The company expects to deliver on full year guidance of between 10-to-15 per cent earnings growth.

Seven West Media (SWM)

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Chart: Share price over the year to versus ASX200 (XJO)

Announced a $163 million net profit for the merged group's first full six months of trading. Television is a key contributor to earnings. The recent ratings success, dominating in all key demographics in 2011, is continuing into 2012. Consequently, SWM should retain its share of the advertising market and this should help earnings. The interim fully franked dividend was 19 cents a share.

SELL RECOMMENDATIONS

Ten Network Holdings (TEN)

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Chart: Share price over the year to versus ASX200 (XJO)

Ten recently provided an update to the market in relation to its first half result due in early April. Earnings are expected to fall to $64 million compared with $106 million in the previous corresponding period. Television revenue is expected to fall by 12 per cent. There will be no interim dividend due to difficult market conditions. Better opportunities exist elsewhere.

Sigma Pharmaceuticals (SIP)

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Chart: Share price over the year to versus ASX200 (XJO)

Sigma recently announced that receivers had been appointed to part of the Pulse Group, a major customer of SIP. For Sigma, this will result in an additional $8 million bad debt on top of a $20.2 million bad debt already taken in the second half of 2011. The company is also facing tougher trading conditions in response to price falls in generic pharmaceuticals.

 

Charles Veall, Alpha Broking

BUY RECOMMENDATIONS

Convergent Minerals (CVG)

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Chart: Share price over the year to versus ASX200 (XJO)

A gold explorer planning to mine at the Bounty field in Western Australia. CVG is targeting high grade gold beneath 10 existing open cut mines. It recently started a drilling program, and this may result in positive news. 

Miclyn Express Offshore (MIO)

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Chart: Share price over the year to versus ASX200 (XJO)

The recent result smashed expectations. I believe a private equity bid is likely at some stage for this vessel services provider to the oil and gas industry. Miclyn has virtually no debt, and it’s in the right space. The stock hasn’t run too hard and I don’t consider it a speculative play. It should easily hold $2 amid limited downside. The shares closed at $1.945 on February 29.

HOLD RECOMMENDATIONS

Base Resources (BSE)

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Chart: Share price over the year to versus ASX200 (XJO)

A mineral sands play that’s been treading water after a sensational price rise last year. The company’s Kwale project in Kenya is world class. It should start producing in 2013, when a supply shortfall of rutile and zircon is expected.

Kidman Resources (KDR)

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Chart: Share price over the year to versus ASX200 (XJO)

Kidman was another top performer last year. After a recent capital raising, KDR is developing its Blind Calf asset in New South Wales. Sensational copper intersects haven’t had much impact on the share price. 

SELL RECOMMENDATIONS

Myer Holdings (MYR)

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Chart: Share price over the year to versus ASX200 (XJO)

The retail environment remains challenging. Expect soft conditions to continue in calendar year 2012. After recent strong moves up on the back of potential merger and acquisition activity, it’s difficult to see this trend continuing. Take advantage of the share price rise.

Harvey Norman (HVN)

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Chart: Share price over the year to versus ASX200 (XJO)

The share price action has improved in recent months, from a low of $1.80 (an area of strong support), to a major resistance point of $2.20. I suggest taking advantage of current levels and sell. Consider buying again if the stock retreats to $1.80, which I believe it will. On February 29, the stock closed at $2.07.

 

Michael Heffernan, Austock

BUY RECOMMENDATIONS

Mineral Resources (MIN)

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Chart: Share price over the year to versus ASX200 (XJO)

A well credentialed mining crushing contractor. It also produces iron ore and manganese and delivered a most impressive 28 per cent lift in net profit for the December half year. A particular highlight of its report was the start of iron ore shipments from its Carina mine, following approval of additional port access.

Campbell Brothers (CPB)

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Chart: Share price over the year to versus ASX200 (XJO)

Operates a range of business activities from laboratory analytics for mining companies to the distribution of chemicals. It has attractive sharemarket fundamentals, and is a key beneficiary of the continuing boom in mining exploration expenditure.

HOLD RECOMMENDATIONS

ASX (ASX)

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Chart: Share price over the year to versus ASX200 (XJO)

Provides the major marketplace for dealing in equities and derivatives in Australia. It produced a workmanlike December half year report despite lower equities turnover, more competition and negative investor sentiment. But expectations of a healthier market this year should spark more capital raisings and support ASX revenue streams.

Iress Market Technology (IRE)

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Chart: Share price over the year to versus ASX200 (XJO)

An information provider to brokers and others in the financial services sector.  Recently, it delivered a most satisfactory report and it should benefit from a much brighter sharemarket in 2012. It has attractive sharemarket fundamentals, with no debt and a fully franked dividend yield above 5 per cent.

SELL RECOMMENDATIONS

Ten Network Holdings (TEN)

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Chart: Share price over the year to versus ASX200 (XJO)

This television operator continues to struggle against the much stronger performing Seven Network.  The economy remains subdued, so the prospect of an immediate boost in advertising revenue appears unlikely.  Investors have time on their side.

Qantas Airways (QAN)

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Chart: Share price over the year to versus ASX200 (XJO)

Australia’s flagship domestic and international airline continues to face troubles on the industrial relations front, and from high oil prices and a higher cost structure than its competitors. So long as investing in airlines remains a problematic proposition for risk averse investors, other sectors offer greater appeal. 

 

Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.

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