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Friday 30

June, 2017 2:01 AM



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18 Share Tips - 6 March 2017

18 Share Tips - 6 March 2017

By Anthony Black 06.03.2017



Michael Heffernan, PhillipCapital

 

BUY RECOMMENDATIONS

 

Seek (SEK)

Chart: Share price over the year

This online jobs classifieds provider delivered a most impressive interim report with underlying net profit after tax up 11 per cent on the prior corresponding period to $113.6 million. Its education division and Chinese operations appear to be operating well. This is a standout listed stock in the internet space.

 

Webjet (WEB)

Chart: Share price over the year

This online travel agency posted an excellent interim report with significant growth in revenue, net profit after tax and earnings per share. Consequently, the company increased fiscal year 2017 EBITDA guidance. The outlook is good.

 

 

HOLD RECOMMENDATIONS

 

Ramsay Health Care (RHC)

Chart: Share price over the year

The share price of this private hospital operator has eased since $80 levels in September. But sharemarket fundamentals remain robust, and it looks a sound choice at today’s price levels. Its recent report was most impressive. The shares were trading at $69.18 on March 2.

 

Qantas Airways (QAN)

Chart: Share price over the year

Delivered a satisfactory half year report by beating previous guidance, and its transformation program is bearing fruit. It declared a 7 cent dividend and most areas of its operation are performing well in a challenging environment.

 

 

SELL RECOMMENDATIONS

 

ARB Corporation (ARB)

Chart: Share price over the year

Shares in this 4-wheel drive accessories company were priced above $18 in early January. On March 2, the shares were trading at $14.43. I found its recent interim report and outlook underwhelming. It has lost share price momentum and other companies appeal more.

 

AMP (AMP)

Chart: Share price over the year

The share price of this life insurance and wealth management company has been dismal for years. Its 52 week high was $5.96 on August 8, 2016. The shares were trading at $5.01 on March 2, 2017. The saving grace is an attractive dividend yield above 5 per cent.

 



Gavin Wendt, MineLife

 

BUY RECOMMENDATIONS

 

Rimfire Pacific Mining NL (RIM)

Chart: Share price over the year

The market is paying more attention to its Sorpresa gold-silver deposit in NSW and to its transformational exploration joint venture deal with Canada’s New Gold. The arrangement provides a major funding boost for Rimfire’s regional exploration activities. The joint venture agrees to a multi million ounce discovery objective amid aspirations for an aggregate 4 million plus ounce gold equivalent discovery within the Fifield district over the medium term.

 

AusQuest (AQD)

Chart: Share price over the year

AusQuest has entered into a strategic alliance agreement with diversified global miner, South32 (ASX: S32). Both companies will work together to develop a pipeline of high potential exploration opportunities in Australia and abroad, comprising base and precious metals. This arrangement proves AusQuest’s technical ability to procure, explore and appraise resource projects of sufficient size and scale to be of interest to resource heavyweights.

 

HOLD RECOMMENDATIONS

 

Rox Resources (RXL) 

Chart: Share price over the year

Teck Australia has acquired Rox’s 49 per cent stake in the Reward Zinc Project in the Northern Territory. Rox has received cash proceeds of around $16 million from the sale, with a further deferred payment of $3.75 million. Rox’s sensible decision to monetise its Reward stake has provided a successful outcome. The sale proceeds allow Rox to evaluate new growth opportunities.

 

Metalicity (MCT)

Chart: Share price over the year

The company has provided recent market updates on two of its commodity endeavours – Admiral Bay zinc and Kyarra cobalt. Metalicity is looking to pursue pre-feasibility study appraisal activity at its advanced Admiral Bay project in Western Australia (potentially with Chinese investment), while it’s identified 25 km of cobalt anomalies at its Kyarra project, also in WA. It’s rare to find a company offering exposure to the three hottest commodities at present – zinc, cobalt and lithium.

 

SELL RECOMMENDATIONS

 

Gascoyne Resources (GCY)

Chart: Share price over the year

The company has risen from a low of 8 cents in late 2015 – when we first initiated coverage – to a recent high of 66 cents this month. It’s benefiting from an increasing awareness in its large and ever growing WA gold resource base, comprising 2.12 million ounces – involving two advanced projects on granted mining leases – which are being rapidly progressed to production status. Corporate interest remains high in what will be the next significant domestic gold miner. However, some investors will naturally consider locking in some profits. The shares closed at 55 cents on March 2.

 

Oklo Resources (OKU)

Chart: Share price over the year

The company has enjoyed immediate success with respect to its gold exploration activities on its properties in western and southern Mali in West Africa. Oklo has assembled a portfolio of seven strategically located projects, which encompass a total of 1389 square km. Results from initial air core, reverse circulation and diamond drilling have returned high grade mineralisation. This is reflected in the company’s share price rise from our initial coverage at 8 cents in late 2015 to 20 cents on March 2, 2017. Some investors might consider taking profits. 


Ryan Gale, PAC Partners

 

BUY RECOMMENDATIONS

 

AusCann Group Holdings (AC8)

Chart: Share price over the year

Restrictions on medicinal marijuana are easing in Australia. This medicinal cannabis producer is well prepared in terms of research and targeting conditions, such as chronic pain, chemotherapy-induced nausea and treatment-resistant childhood epilepsy.

 

Cape Lambert Resources (CFE)

Chart: Share price over the year

CFE has recently signed an agreement to form a 50/50 joint venture to develop cobalt and copper projects in the Democratic Republic of Congo, including near term production assets and three further projects. We believe the joint venture should add value to these projects and return significant upside to investors. We believe cobalt has a positive future. The shares were trading at 3.8 cents on March 3.

 

HOLD RECOMMENDATIONS

 

Ramsay Health Care (RHC)

Chart: Share price over the year

Australia’s largest private hospital operator delivered a 12.8 per cent increase in core net profit after tax to $267.8 million for the half year ending December 31, 2016. The fully franked interim dividend rose 12.8 per cent to 53 cents. We expect earnings growth to be bolstered by an ageing and growing population, clinical innovation and increasing consumer expectations. 

 

Select Harvests (SHV)

Chart: Share price over the year

An optimistic outlook for US almond production has contributed to almonds trading at a 40 per cent discount to cashews and walnuts, as opposed to a normal discount of 20 per cent. However, SHV is sound enough to absorb this low almond price phase and we expect internal growth.

 

SELL RECOMMENDATIONS

 

Slater & Gordon (SGH)

Chart: Share price over the year

Reported a half year loss of $425.1 million. The law firm’s sizeable debt exceeds total assets. The company is the subject an ugly shareholder class action and a regulatory probe into its accounting practice. 

 

AMP (AMP)

Chart: Share price over the year

Another disappointing result despite a late surge in the stock price. The company reported a 2016 fiscal year net loss of $344 million and a wealth protection loss of $415 million, reflecting a negative claims experience. Regulatory uncertainty regarding superannuation hasn’t helped.

 

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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WHAT’S ON THIS WEEK

week 30 June 2017
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    • ANZ Roy Morgan Consumer Confidence weekly survey | 9:30 AM
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    • APRA Wayne Byres speaks at ACC in Australia event | 9:30 AM
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    • ABS Job vacancies for May | 11:30 AM
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