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 November 2021. You can access the full version of the article HERE.
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A recent update from the FMG has seen the company maintain their cost guidance and operational performance looks solid. An improvement in iron ore prices would have a huge affect on the share price, and we believe that there is now limited downside in the iron ore price. The chart also indicates very good buying support at current prices.
CBA is the highest quality bank out of the big 4. Recent movements in interest rates will have a positive affect on CBA’s net interest margin. From a charting perspective, we can see CBA edging above some major resistance near $108 and that should lead to a further rally.
Rising interest rates is a benefit to CPU, and further increases could see a positive re-rating in analysts share price targets. The shares have also established themselves into a strong uptrend here which implies that the market is now getting behind the stock.
This medical imaging company continues to win new contracts and expand its footprint overseas. Earnings per share also continues to look very impressive, and the company has zero debt. Recent share price action has seen some very healthy buying on any dips and the stock is maintaining its long-term uptrend.
The shares appear cheap. However, each time the company disappoints the market with softer results, we can see that it is cheap for a reason. This means that PNV shares remain entrenched in a downtrend. The recent resignation of the managing director only adds to the uncertainty around the business.
The buy now pay later sector is experiencing a lot of consolidation. That doesn’t mean that players like SZL will benefit, and therefore appear cheap. Instead, it is likely that stocks such as SZL are left behind. The shares remain stuck in a downtrend and the chances of it turnaround are slim.
Michael Gable is managing director of Fairmont Equities.
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