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18 Share Tips - 20 February 2017

18 Share Tips - 20 February 2017

By Anthony Black 20.02.2017



Michael Gable, Fairmont Equities

 

BUY RECOMMENDATIONS

 

Sandfire Resources NL (SFR)

Chart: Share price over the year

Sandfire has been benefiting from a rising copper price, and the chart is showing possibly higher price levels. As it’s broken above resistance at $6.80, we expect that to trigger a new wave of buying. This could result in the stock climbing to levels above $8. The shares were trading at $6.83 on February 16. 

 

NRW Holdings (NWH)

Chart: Share price over the year

In the past 12 months, this civil and mining contractor has rallied from 5 cents to trade at 78 cents on February 16. The way it’s trading and building on top of its previous highs indicates the run isn’t yet finished. Having bounced off recent support near 67 cents, we expect it to resume the uptrend towards 90 cents. 

 

HOLD RECOMMENDATIONS

 

Premier Investments (PMV)

Chart: Share price over the year

On a weekly candlestick chart, this investment company with a focus on retailing has formed a bullish engulfing pattern, which is a sign the stock is reversing the slide and ready to head higher. We anticipate levels towards $15.50. The shares were trading at $13.95 on February 16.

 

Origin Energy (ORG)

Chart: Share price over the year

Since breaking above strong resistance at $6, ORG has been trending higher. What’s appealing is higher highs and higher lows. The moves up are impulsive and the falls are a correction. We have a price target in the high $8 levels and so far it’s still on track to reach it. The shares were trading at $7.10 on February 16.

 

 

SELL RECOMMENDATIONS

 

Technology One (TNE)

Chart: Share price over the year

The chart shows the TNE share price is at risk of falling further. Since peaking last year, the moves down have been impulsive and it’s become clear a head and shoulders has formed. The neckline has broken and, in my view, the most likely scenario is TNE heading towards levels below $4.50. Shares in this software company were trading at $5.135 on February 16.

 

ARB Corporation (ARB)

Chart: Share price over the year

In my view, this 4-wheel drive accessories manufacturer has clearly formed a head and shoulders. About two weeks ago, we saw the stock break below the neckline for the first time. Unless ARB can quickly recover, we expect it to continue falling towards $14. The shares were trading at $15.755 on February 16.

 


Simon Herrmann, wise-owl.com

 

BUY RECOMMENDATIONS 

 

Peninsula Energy (PEN)

Chart: Share price over the year

A uranium producer, with operations in the US and South Africa. Its most advanced asset is the Lance ISR Project in Wyoming in the US. PEN is positioned to benefit from a structural recovery in uranium markets. The company has demonstrated its ability to deliver premium priced product in a supressed market. It has the financial support of existing institutional shareholders despite challenging operating conditions. Our 12 month target is $1.60.  The shares closed at 75 cents on February 16.

 

InvoCare (IVC)

Chart: Share price over the year

Owns and operates funeral homes, cemeteries and crematoria across Australia, New Zealand, Singapore and the US. InvoCare owns key national brands, including Simplicity Funerals, White Lady Funerals and Singapore Casket. This well managed company offers sound earnings and steady top line growth. Also, management has a strong track record of distributing income to shareholders. IVC is a conservative income play. 

 

HOLD RECOMMENDATIONS

 

MNF Group (MNF)

Chart: Share price over the year

This internet based telecommunication services company has a strong track record. It has lifted revenue each year since listing in 2006. In the past five years, revenue has grown at a compound annual growth rate of 64 per cent. Growth is achieved through a mix of organic expansion and acquisitions. Continuing this trend is the major value driver.

 

Big Un Limited (BIG)

Chart: Share price over the year

This mobile video producer recently launched new technology, enabling the company to produce large volumes of content for clients at a lower cost. User numbers continue to grow and revenue momentum persists. We believe it makes sense to continue holding BIG while it’s above 25 cents. The shares closed at 39 cents on February 16.

 

SELL RECOMMENDATIONS

 

Medusa Mining (MML)

Chart: Share price over the year

December quarter production at the Co-O Gold Mine in the Philippines was lower than we anticipated while costs have increased. All-in-sustaining-costs were impacted by one-off capital costs related to maintenance and exceptional work at the mine. In our view, the stock has underperformed and failed to rebound despite the recent recovery in gold prices. We downgrade our view to a sell, as we believe better opportunities exist elsewhere in the sector.

 

OrotonGroup (ORL) 

Chart: Share price over the year

This apparel and accessories retailer is facing challenging trading conditions, which we expect to negatively impact the company’s half year results in March. Group sales have declined 10 per cent due to generally weaker sales following Boxing Day, a decline in factory outlet store sales and aggressive competition. We expect lower sales and a negative currency impact to reduce EBITDA by between 40 per cent to 50 per cent. The ORL share price has plunged by more than 30 per cent since January 1.

 


Janine Cox, Wealth Within

 

BUY RECOMMENDATIONS

 

Lendlease Group (LLC)

Chart: Share price over the year

This property and infrastructure company continued pushing higher in recent months and now has the potential to trade towards its 2015 high of $17.72. Remember, post GFC is the phase when more money goes into construction and infrastructure and LLC is well positioned to capitalise on this growth. The shares were trading at $14.91 on February 16.

 

Nine Entertainment Co. Holdings (NEC)

Chart: Share price over the year
 

Media shares were hit by hard times several years ago. NEC is but one example of a listed media company continuing to struggle. Generally, I would steer clear of stocks like this, but it’s formed a basic short term trade set up on the weekly and monthly charts. A trade through $1.12 completes the rule, but a lot of experience is required to manage such a volatile share. The shares were trading at 99 cents on February 16.

 

HOLD RECOMMENDATIONS

 

Challenger (CGF)

Chart: Share price over the year
 

Holds a dominant position in the annuities space and has become a market darling. The share price has risen by about 65 per cent in the past 12 months and is likely to go higher. The shares were trading at $11.855 on February 16.

 

Tassal Group (TGR)

Chart: Share price over the year
 

In January, this salmon producer’s share price accelerated higher to above an important level of $4.38. The move indicates the share price is more likely to rise than fall. But if TGR’s share price started falling to below $4, my view would change. The shares were trading at $4.47 on February 16.

 

SELL RECOMMENDATIONS

 

Sydney Airport (SYD)

Chart: Share price over the year
 

As my overall view on the market is quite bullish and many shares have improved, it’s been a challenge to find a noteworthy stock for either a sell, or conditional sell recommendation. However, if SYD closes below $6 at the end of any week, a $5 target wouldn’t be out of the question. The shares were trading at $6.105 on February 16.

 

Oil Search (OSH)

Chart: Share price over the year
 

In the past 12 months, OSH has made four attempts and failed to make a sustainable break above $7.60. A strong move below $6.40 would increase the potential for a lower share price in the medium term. Watch this level. The shares were trading at $7.04 on February 16. 

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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