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 20 April 2020. You can access the full version of the article HERE.

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Buy Recommendations

ASX:ALL

A US recovery will see the business bounce back strong. The company has a history of strong earnings growth and this makes current levels make it look very cheap. In terms of the share price chart, it seems to have found significant support.

ASX:WPL

We believe that current oil prices won’t last forever and this provides an opportunity to pick up energy stocks at cheaper levels. WPL has shown some good support down here on the price chart and it looks like there is good accumulation underway in its shares. Over the next few months or so there could be substantial upside from here.

Hold Recommendations

ASX:CSL

CSL continues to hold in well here, and its share price is not far off it’s all time high. That sign of strength is a positive and the coronavirus situation will have limited impact on their business. We expect CSL shares to continue to outperform in the long run.

ASX:MQG

MQG shares had recently halved in value, but we have seen some very good support step back in. If share markets continue to recover from here over the course of the year, then MQG shares will do well because they are a proxy for equity markets. With the share price still well down from its recent peak, we believe there is further scope for the share price to head higher.

Sell Recommendations

ASX:URW

This retail property trust has bounced off its lows but there are still headwinds ahead for it. Tenancy issues and low consumer spending will take its toll on profitability. Any rallies back above $6 are an opportunity to sell.

ASX:WEB

Webjet shares have a lot of negativity priced into them but we haven’t seen any decent buying step up to the plate yet. This means that the path of least resistance for the share price is still to the downside. With the re-opening of overseas travel remaining an uncertainty, we don’t see there being a catalyst yet for the share price to head higher.

 

Michael Gable is managing director of Fairmont Equities.

 

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