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 19 August 2019. You can access the full version of the article HERE.
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Since buying NCM earlier this year, we continue to remain bullish on the company and the gold price. With fear gripping markets once more, it now looks likely that NCM will try to retest its old highs above $40. Any weakness is therefore another buying opportunity.
We like CIP’s mix of assets, its low leasing risk, high occupancy rates, and improving gearing levels. As an interest rate sensitive stock with an attractive yield, it is set to benefit in an environment of decreasing rates. It has show good price support at current levels and we believe the share price is ready to head higher again.
SYD is an interest rate sensitive stock which pays a good yield that can be relied upon. In an environment where interest rates are falling, further investor demand is expected for SYD. It broke above an important resistance level several weeks ago and it looks set to continue rallying higher.
We continue to like the prospects for gold and SAR is a company that has been trending very well during the last 4 months. With the share price at all-time highs, it is difficult to have an upside target. However, while it is trending higher, we would be happy to rate it as a hold.
CIM had a disappointing interim result in July and the market reaction was quite severe to the news. Despite the shares falling to much cheaper levels, we believe that risks remain to the business. We also cannot see any sort of buying support come in around these levels, and this means that the share price is likely to continue falling.
The BEN share price did quite well during the second quarter of this year but a fairly underwhelming full-year result has confirmed our suspicions that it had run too hard. The company is likely to see increased pressure on margins and earnings, and the charting profile of BEN tells us that the market is going to push the share price lower.
Michael Gable is managing director of Fairmont Equities.
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