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 18 March 2019. You can access the full version of the article HERE.

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Buy Recommendations

GMG
We’ve been positive on GMG for a while and the chart continues to display plenty of positive momentum. It is one of the best quality stocks on the ASX, let alone among the REIT sector. It has very low debt and stable earnings.

FXL
FXL trades on a P/E of 7 and and recent changes being made by management could make the company a turnaround story. The chart for FXL has provided us clues that a low might now be in a place and we expect the share price to spike higher from here.

Hold Recommendations

BHP
We maintain our long-held view that BHP would trade up towards $40 once it broke the $35 level. Recent weakness in the share price has been the result of soft selling and BHP trading and we continue to recommend the stock as a hold.

NCM
We have been bullish on NCM since earlier this year when it broke out of a long term consolidation pattern on the share price chart. Gold prices appear to have found support and are set to head higher again which means the NCM share price should continue rising from here.

Sell Recommendations

FBU
Growth is weak and margins are under pressure. The FBU share price is in a long term downtrend and a recent pick-up in volume on the way down has us concerned that the share price has not found a low yet.

IVC
The recent result was better than expected with deaths moving back towards longer term trends. However, increased competition is still a concern, the stock is now fully valued, and the share price chart is showing us signs of weakness.

 

Michael Gable is managing director of Fairmont Equities.

 

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