Share tips and stock recommendations for the Australian (ASX) share market – buy, hold, and sell. Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.

This post is an extract from the newsletter dated 2 September 2024. You can access the full version of the article HERE.

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Buy Recommendations

ASX:PDN

I remain attracted to uranium’s longer-term prospects here as a lack of supply is starting to meet increased demand. The share price of this uranium producer has come back during the past few months and this is now an opportunity for investors to get set before the next bull run.

ASX:RSG

I remain bullish on gold due to increased central bank buying and the prospect of lower interest rates. This is a gold producer that has seen recent results beat market expectations. Production is growing strongly and net cash is climbing. As a result of this, you have a stock that is trending very nicely on the charts with further upside in store.

Hold Recommendations

ASX:BHP

Commodity stocks are cyclical and at the moment you have BHP near the bottom of the current cycle as investors worry about China and global growth. I believe that the short-side of BHP is a crowded trade and that will unwind as rate cuts appear in the US and investors start to appreciate these historically cheap levels.

ASX:MQG

We expect capital markets to rebound in 2025 and Macquarie will be a key beneficiary of this. We also believe that Macquarie’s Banking and Financial Services segment will continue to grow strongly and add to earnings. The stock chart still looks strong and the uptrend is still in place.

Sell Recommendations

ASX:DMP

Sales continue to struggle and costs continue to climb. The business continues to offer earnings downgrades and this is not providing investors with a lot of confidence that we have seen the lows. As a result, we have a stock that remains in a long-term downtrend on the share price charts.

ASX:CTD

The full year results for CTD disappointed the market and guidance was below expectations. Their overseas businesses are still struggling to hit targets and slowing travel spending is likely to make FY25 another tough year. It is too early to call the end of this downgrade cycle.

 

Michael Gable is managing director of Fairmont Equities.

 

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