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 12 June 2023. You can access the full version of the article HERE.

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Buy Recommendations

ASX:MIN

Recent weakness in the price of iron ore and lithium as seen MIN shares pull back from their February peak. However, lithium prices appear to be finding support and iron ore prices, in our opinion, should also bottom out here. MIN shares are also bottoming on the chart at around these levels.

ASX:LYC

LYC shares were recently oversold on the back of concerns that production would be lost when they switch to their new processing plant in Kalgoorlie. With an extension now granted on their current plant in Malaysia, they will no longer lose any production time. Combined with improved sentiment in the resources space, we expect further buying pressure to occur at these prices.

Hold Recommendations

ASX:BHP

BHP was recently sold down due to soft iron ore prices and bearish sentiment around the Chinese economy. We expect iron ore prices to bottom here and the Chinese economy to start improving. This should lead to a bottoming out in BHP here and a recovery back towards the recent highs.

ASX:SFR

Copper prices have recently eased back and the bearish sentiment around the Chinese reopening has also affected the SFR share price. We believe that these two factors will reverse here and lead to higher share prices again. SFR also remains in a technical uptrend.

Sell Recommendations

ASX:BOQ

We reiterate our sell recommendation. The bank has entered into enforceable undertakings with both APRA and AUSTRAC and this now adds risk to its transformation plans. The shares remain in a long-term downtrend.

ASX:PGH

This packaging company is facing numerous headwinds including soft demand and higher costs. The company has downgraded their earnings and the balance sheet is looking shaky. The shares remain in a downtrend for now.

 

Michael Gable is managing director of Fairmont Equities.

 

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