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 October 2020. You can access the full version of the article HERE.
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The share price took a hit in August on the back of their full year results. However, they have come back to a good level of support in the low $30’s and now look more attractively priced. We like the look of the business longer term, and current levels are now a buying opportunity.
RMD has put in a double bottom on the chart at its $23 support level and is now breaking free of its recent range. It is now highly likely that RMD gets on with it here and starts to rally again. Current levels are therefore a buying opportunity.
GMG is our pick in the REIT sector and it has performed extremely well over the long term. During the last two months, the share price traded sideways to consolidate the prior rally. It is now breaking out of this consolidation and this means that we should now see it continue to rally higher.
We continue to like the travel sector and believe it is well placed for a recovery. SYD shares are rallying here as we get closer to a time when travel restrictions start to ease. The main benefit of SYD compared to other travel stocks is that it has no competitors.
The coal industry continues to be on the nose and WHC shares remain in a long term downtrend. We don’t see any evidence yet that the share price has bottomed and the risk remains to the downside. This means that we should expect to see lower levels from here.
There have been many winners in the retail space because of COVID and MYR is not one of them. Investing in MYR is therefore not the best allocation of capital. The share price is struggling here and the longer term downtrend tells us that more pain is to come.
Michael Gable is managing director of Fairmont Equities.
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