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 2 September 2019. You can access the full version of the article HERE.
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FlexiGroup is a turnaround story and investors will need to be patient. However, they are making progress with signing up new customers and their recent FY results have confirmed that they are on track. Any dips are a buying opportunity and we think there is a strong chance that they retest $2 before the year is out.
Goodman Group has been one of our core holdings for a while now. Their FY results have once again shown that they continue to grow earnings on the back of strong demand and investment. The recent share price dip has more to do with market sentiment and this provides investors with another buying opportunity.
Whilst the energy sector remains weak, Santos is showing some strong price action. From a charting perspective, it has been holding up well these last few months. It appears poised to rally strongly as soon as we see an end to this current oil price weakness. We would be looking for break above $7.45 as confirmation that it will resume the uptrend.
Many commentators believe that the CSL share price is topping out here. However, price action still remains bullish and we believe that it can continue to head higher. We believe that double digit earnings growth can still be achieved and this should underpin further share price gains.
DOW has experienced strong resistance near $8 and once again it has found some selling up at that level. Despite their FY results being slightly ahead of guidance, the shares seem to have found the limit and appear ready to pull back into the range. We would be targeting support back near $7.
The company has once again disappointed the market with their FY results. The shares are likely to struggle further as the market loses faith of an imminent turnaround. The chart for GEM also appears weak and the share price looks set to fall to levels under $2.
Michael Gable is managing director of Fairmont Equities.
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