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 17 June 2019. You can access the full version of the article HERE.
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The ongoing transition of customers to cloud underpins a strong longer term growth profile. The troublesome UK business is also becoming less of an issue. The shares now appear to be finding support and this means that current prices represent a good buying opportunity.
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For much of the last few months, WTC was unable to push through the key $24 resistance level. Despite that, the technicals were indicating that it was only a matter of time until this occurred. We have now seen a break through $24 and this has triggered a buy signal on the charts. We advise investors to run trailing stop losses.
NCM has been our preferred gold stock since the start of the year and it continues to steam ahead. With the shares now pushing past the 2016 high, they look set to make a move towards the next major line of resistance. This means that NCM could push beyond $30 in the next few months.
ALL has an attractive medium to long term earnings growth profile, and has an ability to generate strong free cashflows. We also like the way it is trading now on the charts. The recent rally appears to be sustainable and ALL is likely to continue trending higher from here.
We are taking profits in APX as recent price action suggests that the stock is going to struggle to head higher for the time being. Ever since the company revised guidance at the end of May, any rally in the shares have been sold into. We are happy to get back into APX if it falls back to the low $20’s.
We have taken profits in SAR as spike in the share price in early June gave us a sell signal. By heading to a new high, it was then sold down to provide us with a “false break”. This means that there is a high chance that SAR falls back towards the lower end of its recent range which is below $3.
Michael Gable is managing director of Fairmont Equities.
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