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December, 2017 7:01 PM



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18 Share Tips - 27 March 2017

18 Share Tips - 27 March 2017

By Anthony Black 27.03.2017



Janine Cox, Wealth Within

 

BUY RECOMMENDATIONS

 

Sandfire Resources NL (SFR)

Chart: Share price over the year
 

On numerous occasions, this copper producer has challenged resistance at around $6.70. This level is proving to be a real stumbling block for a further advance. Last month, it again attempted to push through, but failed. Given this, the price may fall away again. But a strong close above $6.85 would signal the potential to move higher. The shares closed at $6.48 on March 23.

 

Wesfarmers (WES)

Chart: Share price over the year

For many years, this industrial conglomerate has continued to hit a glass ceiling at around $44. That said, the price hasn’t crashed, but finds support at around $40 before climbing back to $44. Consequently, another strong move above this hurdle would confirm the longer term trend is heading up. The shares closed at $43.40 on March 23.

 

HOLD RECOMMENDATIONS

 

Woodside Petroleum (WPL)

Chart: Share price over the year
 

The gas giant formed a low in April 2016 and now appears to be settling into its 2017 low. If it holds support at around $30, the stock is likely to be very strong in this year’s second half. However, the current decline may continue to between $28 and $29 in the next month or so. The shares finished at $30.83 on March 23.

 

Perpetual (PPT)

Chart: Share price over the year
 

In August 2016, the wealth manager was trading in an uptrend, indicating the price rise was likely to continue. More recently, PPT has pushed through an important psychological level at $50. In the short term, PPT may pull back to around this level or marginally below to test buyer support for a further rise. The shares finished at $50.99 on March 23.

 

SELL RECOMMENDATIONS

 

Harvey Norman (HVN)

Chart: Share price over the year
 

Recently, HVN shares were sold off heavily and the move broke the long term uptrend, which is a bearish sign. However, HVN is a good trading stock for the watch list. Recent selling of the company’s shares by two senior executives, the threat of Amazon’s launch in Australia and a routine ASIC review of HVN’s financial report for the financial year ending in June 30, 2016 appear to have led to the sell-off.

 

Alumina (AWC)

Chart: Share price over the year
 

AWC recently retreated towards a level of support between $1.62 and $1.72. This stock has broken the uptrend and an important level of support at around $1.80. Given the recent price fall, a trader would see it’s time to take some profits. The shares finished at $1.785 on March 23.

 


Matthew Litchfield, PhillipCapital

 

BUY RECOMMENDATIONS

 

Xero (XRO)

Chart: Share price over the year
 

The largest provider of accounting software as a service (SaaS) to small and medium sized enterprises in Australia and New Zealand. Our research finds the shares are undervalued. The company should be able to leverage its strong position and continue to grow into other regions, including the US and the UK.

 

Ardent Leisure (AAD)

Chart: Share price over the year
 

Despite the theme park tragedy, Ardent Leisure boasts a well balanced portfolio of entertainment assets. We believe this company offers value. The group outlook is positive and management expects Dreamworld to recover over time.

 

 

HOLD RECOMMENDATIONS

 

APA Group (APA)

Chart: Share price over the year
 

This natural gas infrastructure business posted a solid set of numbers for the six months ending December 2016. Revenue was up by 17.5 per cent to $954.3 million. Net profit after tax jumped 40.5 per cent to $139.8 million and distributions to shareholders rose by 7.9 per cent to 20.5 cents. APA also achieved organic growth of 4 per cent and has substantial growth opportunities in the future, including renewables.

 

ResMed (RMD)

Chart: Share price over the year
 

This tech driven medical device company and global leader in connected care is performing strongly. We remain comfortable with our forecasts given the strong quarterly financial result. Revenue for the second quarter of fiscal year 2017 increased by 17 per cent to $530.4 million. The stock also benefits from a weaker Australian dollar versus the US dollar.

 

 

SELL RECOMMENDATIONS

 

Myer Holdings (MYR)

Chart: Share price over the year
 

While the retail giant is considered a turnaround story, there’s better opportunities growing at a stronger pace without headwinds, in my view. Myer net profit after tax rose by 5.3 per cent to $62.8 million for the half year to January 28, 2017. However, sales were sluggish.

 

Brambles (BXB)

Chart: Share price over the year
 

Its North American pallets business experienced revenue and cost pressures in the first half, which the company says is partly due to US retailer destocking, which impacted volumes and resulted in higher transport and plant costs. The update was disappointing in a segment that should be performing better. I see no catalysts to get excited about the Brambles recovery at this stage and see better opportunities elsewhere.

 


Les Szancer, AXL Capital Partners  

 

BUY RECOMMENDATIONS

 

 

Core Exploration (CXO)

Chart: Share price over the year

A diversified lithium, copper and uranium play with assets in Australia. Lithium is hot at the moment. Expect strong demand to be driven by electric cars and electricity storage via the appropriate batteries. Uranium also seems to be making a comeback, as alternative forms of energy creation are sought.

 

ikeGPSGroup (IKE)  

Chart: Share price over the year
 

IKE and its subsidiaries design, develop, market and sell smart laser measurement solutions. The company is growing its customer base and I expect it to perform well going forward as product demand increases. The shares closed at 34 cents on March 23.

 

HOLD RECOMMENDATIONS

 

Black Rock Mining (BKT)

Chart: Share price over the year
 

BKT has the largest high grade flake graphite resource in Tanzania, which is the fourth largest resource in the world. Its purity reduces the environmental impact. The 52 week low was 4 cents on April 19, 2016. Its yearly high was 21.5 cents on August 1, 2016. The shares were trading at 11.5 cents on March 23, 2017. Keep an eye on this stock. 

 

Aura Energy  (AEE)

Chart: Share price over the year

This is a pure uranium play and we expect the uranium price to rise. The company has projects in Europe and Africa. We expect AEE to benefit from the construction of more nuclear power plants. The shares were trading at 3.2 cents on March 23.

 

SELL RECOMMENDATIONS

 

Domino’s Pizza Enterprises (DMP)

Chart: Share price over the year

On March 23, 2016, the shares were priced at $56.13. The shares were trading at $56.21 on March 23, 2017. In between, it’s had a nice run up. But the stock has fallen from $64.05 on February 10, 2017. Will the stock be subjected to more profit taking? Consider your position and perhaps lighten. 

 

Fletcher Building (FBU)  

Chart: Share price over the year

On March 20, 2017, the company downgraded earnings guidance by tens of million of dollars for the 2017 financial year. The company identified additional forecast losses and downside risk in the building and interiors business unit of the construction division. On Thursday, March 16, the shares were priced at $8.34. The shares were trading at $7.32 on March 23. 

 

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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