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 March 2023. You can access the full version of the article HERE.

To stay up to date with our best recommendations, sign up to an 8-week FREE TRIAL of our weekly client research.

 

Buy Recommendations

ASX:NCM

We have been positive on gold stocks these past few months and still believe that NCM is a buy at current levels. The share price has been trending well since September and it remains in a reliable uptrend. An easing in rate expectations and a decrease in the US dollar will be a positive for gold prices. We also have the potential of a new takeover bid.

ASX:S32

The price action for S32 is looking very bullish on a weekly chart. it has recently broken above a major resistance level and is retesting it successfully. There is a high chance that S32 continues to trend higher from here. Low inventories in base metals should lead to a spike in prices when demand picks up later this year.

Hold Recommendations

ASX:FMG

Every other analyst is bearish on FMG but we believe that iron ore prices can remain strong as the Chinese economy recovers and further restocking of iron ore takes place. We have also observed very strong buying support for FMG in the past few weeks and the chart therefore continues to look bullish.

ASX:CBA

As CBA approaches the lower end of its recent trading range, it starts to look as cheap as mid-2022 when uncertainty over interest rates and the state of the economy was at its worst. Although CBA is the most expensive bank, we believe that the price premium is justified because of its quality. Over the long-term, it outperforms the other big 4 banks.

Sell Recommendations

ASX:BOQ

The share price of BOQ has underperformed the market for a number of years now. A number of headwinds due to higher interest rates are set to hit the business. We also have uncertainty around the business direction due to the recent sudden departure of the CEO. The share price chart also remains in a downtrend.

ASX:CKF

The shares are trading at a high P/E for such low earnings growth, and even then the stock is pricing in a significant recovery over the next couple of years. We fail to see any catalysts to support this and the share price remains in a downtrend so the path of least resistance is for the share price to head lower.

 

Michael Gable is managing director of Fairmont Equities.

 

Current share prices available here.

You can learn more about technical analysis in this article.

 An 8-week FREE TRIAL to The Dynamic Investor can be found HERE.

Would you like us to call you when we have a great idea? Check out our services.

Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.

Like this article? Share it now on Facebook and Twitter!