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Tuesday 19

September, 2017 9:49 PM



TheBull PREMIUM

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18 Share Tips - 17 July 2017

18 Share Tips - 17 July 2017

By Anthony Black 17.07.2017



Simon Herrmann, wise-owl.com

 

BUY RECOMMENDATIONS

 

Trade Me Group (TME)

Chart: Share price over the year

Operates New Zealand’s largest online auction and shopping website. In the past four financial years, revenue grew at a compound annual growth rate of 10 per cent. Trade Me is expected to increase its full year dividend this year, taking the annual yield above 3.5 per cent.

 

Kelly Partners Group Holdings (KPG)

Chart: Share price over the year

A chartered accounting services company, operating in Sydney and Hong Kong. In our view, KPG is one of the best IPOs this year. It listed in June. It offers attractive value, an historical growth trajectory and good capital structure. We see a favourable balance of risk in this stock. The shares were trading at $1.45 on July 13.

 

HOLD RECOMMENDATIONS

 

MACA (MLD)

Chart: Share price over the year

Provides contracting, infrastructure and civil services to the resources industry in Western Australia and Brazil. The company is consolidating ahead of full year results, but MACA’s attractive order book of more than $1 billion provides good financial visibility. We believe MLD is worth holding.  

 

GALE Pacific (GAP)

Chart: Share price over the year

Makes branded screening and shading products for domestic, commercial and industrial applications. This company is rapidly reducing debt. The on-market share buyback supports the stock. The company’s valuation appears undemanding. The balance of risk is favourable.

 

SELL RECOMMENDATIONS

 

Ardent Leisure Group (AAD)

Chart: Share price over the year

This entertainment and theme park operator has been battling the fallout from the fatal tragedy at Dreamworld on the Gold Coast in October last year. In our view, management and executive changes are designed to kick start a new chapter, but it may take a long time to recover from the tragedy. From an investment perspective, we believe the cost of holding exceeds medium term growth potential. We prefer others.

 

Automotive Solutions Group (4WD)

Chart: Share price over the year

In our view, Automotive Solutions has disappointed since listing in December 2016. In April, the company announced it had missed prospectus forecasts and the share price was punished. Automotive Solutions Group directors recently recommended its shareholders reject a takeover offer from AMA Group. In any case, we can’t see any significant value for shareholders going forward at this point. 

 


Janine Cox, Wealth Within

 

BUY RECOMMENDATIONS

 

Lendlease Group (LLC)

Chart: Share price over the year
 

The share price of this construction and property giant has continued to rise in recent months and has the potential to trade to a 10 year high around $20. LLC is well positioned to capitalise on growth from what we expect to be further investment in construction and infrastructure projects. The shares were trading at $17.18 on July 13. 

 

AMP (AMP) 

Chart: Share price over the year
 

This financial services company has been disappointing performer for a long time. It reported a full year loss of $344 million for 2016. However, from a technical perspective, if the price trades strongly through $5.30 in coming months, a short term growth opportunity may emerge. The shares were trading at $5.235 on July 13.

 

HOLD RECOMMENDATIONS

 

Nine Entertainment Co. Holdings (NEC)

Chart: Share price over the year
 

The share price may meet some resistance around $1.40 before I expect it to move higher to about $1.60. Remember, this is a volatile stock and not for the faint hearted. The shares were trading at $1.39 on July 13.

 

Bega Cheese (BGA)

Chart: Share price over the year
 

In June, the share price accelerated above an important level of around $6.40 before achieving a high of $7.06 this month. Short term profit takers may be taking some money off the table, while retaining a parcel in anticipation of capital growth in coming months. The current view may change if the price was to fall below $6.30. The shares were trading at $6.745 on July 13.

 

SELL RECOMMENDATIONS

 

Oil Search (OSH) 

Chart: Share price over the year
 

In the past 12 months, OSH has made numerous attempts and failed to make a sustainable break above $7.60. The share price has fallen away and may be trading in a structural decline. The price must rapidly move back above $7 to avoid a further slide. The shares were trading at $6.55 on July 13. 

 

Tabcorp Holdings (TAH) 

Chart: Share price over the year
 

The fizz appears to have gone out of the $11 billion TAH/Tatts Group merger. The Australian Competition and Consumer Commission recently applied to the Federal Court for a judicial review of the Australian Competition Tribunal’s decision to authorise Tabcorp acquiring Tatts. It could take time before the issue is resolved. 

 


Warwick Grigor, Far East Capital

 

BUY RECOMMENDATIONS

 

Anova Metals (AWV)

Chart: Share price over the year

Anova has been sold down heavily after announcing a merger deal with Exterra Resources (EXC). This disappointed shareholders looking for a simple takeout by Sprott at Big Springs in Nevada. Nevertheless, the deal gives AWV a second gold income stream and makes it a stronger company. Investors should take advantage of the share price slump. The shares were priced at 9.3 cents on July 14.

 

Pantoro (PNR)

Chart: Share price over the year

A most successful Australian-based gold production company with the Nicolsons mine near Halls Creek in Western Australia. It’s consistently achieving better grades than forecast and is finding additional ore positions in underground workings. New pits are leading to multiple underground mines. 

 

 

HOLD RECOMMENDATIONS

 

Aguia Resources (AGR)

Chart: Share price over the year

In my view, Aguia has struggled to gain traction on the ASX, notwithstanding good progress with its phosphate projects in Brazil. The Tres Estradas project looks good on paper, offering a potential domestic phosphate supply in Brazil and strong profit margins for Aguia. 

 

Orinoco Gold (OGX)

Chart: Share price over the year

Troubled operations at the Cascavel gold mine development in Brazil were suspended before new company management recommenced mine development in May. The pain has already been taken with a fall in the share price, but good management and high grades could lead to a much better result in the months ahead. 

 

SELL RECOMMENDATIONS

 

Alacer Gold Corp. (AQG)

Chart: Share price over the year

Alacer Gold is a strong company with good geology and mines, but uncertainty exists due to their location in Turkey. In the past, Turkey has been a good country to operate, but political unrest has now significantly increased the geopolitical risk profile. In my view, it would be better to watch from the sidelines. 

 

Base Resources (BSE)

Chart: Share price over the year

 

The company has benefited from successful commissioning of its ilmenite mine in Kenya and stronger commodity prices. Consequently, the shares rose from a low of 5.8 cents in 2016 to a high of 36 cents in April 2017. Looking at the charts, the uptrend has broken. Shareholders should lock in profits. Sentiment may also be negatively affected due to changes in investment laws in neighbouring Tanzania. The shares were trading at 26 cents on July 14. 


>> BACK TO THE NEWSLETTER: Click here to read other articles from this week's newsletter


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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