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 15 February 2021. You can access the full version of the article HERE.

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Buy Recommendations

ASX:PPS

PPS shares have trended very well since the March lows. Most recently we saw them break from a rectangular consolidation on the chart, retest it, and then continue higher. This charting formation is very bullish and it means that PPS shares are likely to head much higher from here.

ASX:ALL

Arisocrat continues to expand into digital gaming and the rest of their business is proving to be more resilient than expected. The shares have found some strong buying support recently and we believe that the share price will continue to trend higher from here.

Hold Recommendations

ASX:AWC

Commodity stocks should do well in 2021, and support for the Aluminium price is translating into support for AWC shares. A recent pullback has resulted in some healthy buying to step back in at current levels and this should result in another rally higher over coming months.

ASX:IPL

Increasing demand for explosives and fertilizer has made IPL an interesting proposition down at these levels. We have seen some good buying support on the chart over the last few months and IPL has now established a sustainable uptrend. This should see the share price continue to edge higher from here.

Sell Recommendations

ASX:SPK

This NZ based telco looks expensive for its very low levels of earnings growth. There is a risk here that increasing competition puts further downwards pressure on its earnings. This means that any future dividends could be more than offset by a decline in the value of the shares.

ASX:APA

This infrastructure stock pays a good yield, but the share price is losing more than what investors gain in the dividend. With the broader economy recovering, there is more potential upside in cyclical stocks and this will be at the expense of low growth companies such as APA.

 

Michael Gable is managing director of Fairmont Equities.

 

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