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18 Share Tips - 9 October 2017

18 Share Tips - 9 October 2017

By Anthony Black 09.10.2017



Ryan Gale, PAC Partners 

 

BUY RECOMMENDATIONS

 

Northern Cobalt  (N27)

Chart: Share price over the year
 

The cobalt sector represents a growing opportunity for investors as increasing global demand for electric vehicles drives demand for cobalt-based lithium-ion batteries. Northern Cobalt has started preparations for a 20,000 metre cobalt drilling program in the Northern Territory. Drilling by Rio Tinto in the mid 1990s defined a cobalt dominant resource, with copper and nickel also present. The company listed in September this year. The shares closed at 21.5 cents on October 5.

 

Titomic (TTT)

Chart: Share price over the year
 

The recently listed additive manufacturer has been a strong performer. The company was established to deliver industrial scale products manufacturing using the proprietary Kinetic Fusion process and enable companies to leverage advanced materials. It will look at accessing high volume applications, such as sporting goods, automotive and medical equipment. A well backed business in a good sector.

 

HOLD RECOMMENDATIONS

 

The Food Revolution Group (FOD)

Chart: Share price over the year

 

Posted year-on-year sales growth of 72 per cent to $35.9 million for the year to June 30, 2017. The company makes a range of functional juices, fibres, infused fruits and fruit waters. We expect its low cost platform, can do culture and Australian brands to enable sales growth going forward in a flat juice volume market. 

 

Galaxy Resources (GXY)

Chart: Share price over the year
 

The lithium miner has continued to rally in the past three months with gains of up to 60 per cent. Further assays from a drilling campaign at its James Bay Project in Quebec, Canada, can be evaluated as long life, high grade spodumene. Don’t be surprised if GXY ties up a Chinese partner. If so, expect further upside.

 

SELL RECOMMENDATIONS

 

Australian Vanadium (AVL)

Chart: Share price over the year
 

This vanadium junior has recently increased its mineral resource by 96 per cent to 179.6 million tonnes at 0.75 per cent vanadium pentoxide. Despite the lift, the market has continued to trend down since February when the price of vanadium was increasing. I believe this is due to an increase in early stage vanadium explorers focusing more on grade rather than tonnage. Stay in vanadium, but consider selling AVL.

 

Myer Holdings (MYR)

Chart: Share price over the year
 

General retail sentiment has been weak given the impending arrival of Amazon. Sales for the year to July 29 were down 1.4 per cent. The challenged performer faces even stiffer competition from traditional and online competitors. Better value elsewhere. 

 


Michael McCarthy, CMC Markets 

 

BUY RECOMMENDATIONS

 

Seven West Media (SWM)  

Chart: Share price over the year
 

Reforms freeing up media ownership laws change the game. SWM is well positioned to make deals, although it may become a takeover target at recent trading prices. The shares closed at 64.5 cents on October 5.

 

Macquarie Group (MQG)

Chart: Share price over the year
 

Although earnings are underpinned by annuity income, there is still leverage to the market cycle. As dynamics shift to the positive for corporate Australia, MQG is set to benefit. In my view, MQG is the next $100 stock.

 

HOLD RECOMMENDATIONS

 

Commonwealth Bank of Australia (CBA) 

Chart: Share price over the year
 

The commitment to technological investment is a potential edge for years to come. I’m looking for CBA to regain a premium to other large players.

 

Domino’s Pizza Enterprises (DMP) 

Chart: Share price over the year
 

Has now climbed up through $45 to enter the gap zone. Short position has increased, lifting the chances of a short squeeze. The stock closed at $45.43 on October 5.

 

SELL RECOMMENDATIONS

 

AusNet Services (AST)

Chart: Share price over the year
 

This Victorian energy delivery business could be vulnerable to outages and shortages in the high demand summer season. Additionally, the potential for state and federal government politicking on energy policy increases risks for AST.

 

Orocobre (ORE) 

Chart: Share price over the year
 

The share price of this diversified Argentinian miner has spiked about 60 per cent in the past few months as a recovery in lithium sentiment squeezed the short sellers. However, development risks remain and long term fans may consider taking profits near current all time highs to possibly buy back later at lower prices.

 


Les Szancer, AXL Capital Partners

 

BUY RECOMMENDATIONS


 

American Patriot Oil and Gas (AOW)

Chart: Share price over the year
 

AOW has signed a term sheet for an increased debt facility of up to $US40 million with a New York based institutional investor. If all goes to plan, the debt facility will enable AOW to acquire distressed oil and gas projects. For a company with a market capitalisation of about $6 million, I believe this is an amazing coup.

 

Global Geoscience (GSC)

Chart: Share price over the year
 

Focused on developing the Rhyolite Ridge Lithium-Boron project in the US state of Nevada. The company share price has risen from about 6 cents a year ago to trade at 22 cents on October 6, 2017. A $30 million fully underwritten placement should speed things up.

 

HOLD RECOMMENDATIONS

 

Dongfang Modern Agricultural Holding Company (DFM)

Chart: Share price over the year
 

This Chinese agricultural company is expecting the 2017 harvest to surpass the 2016 record of almost 250,000 tonnes. The company is continuing to assess growth opportunities through acquiring plantations in China. I like its business model and potential growth. 

 

Prima Biomed (PRR)

Chart: Share price over the year
 

An active global biotech developing immunotherapeutic products to treat cancer. Biotech stocks in general carry inherent risk and PRR is no different. The share price has been poor in the past 12 months. It appears 2 cents is the support level. The shares were trading at 2.5 cents on October 6. However, It’s a progressive and proactive firm.

 

SELL RECOMMENDATIONS

 

Northern Star Resources (NST)

Chart: Share price over the year
 

The shares of this gold company were $3.88 on October 6 last year. On October 6, 2017, the shares were trading at $4.84. However, the shares were priced at $4.85 on April 18. It might be time to consider taking a profit. 

 

Evolution Mining (EVN)

Chart: Share price over the year
 

A leading Australian gold miner. It reported a statutory profit after tax of $217.6 million for full year 2017. Its 52 week high was $2.67 on September 8. The shares were trading at $2.215 on October 6.   

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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