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 May 2019. You can access the full version of the article HERE.
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BUY RECOMMENDATIONS
Macquarie Group (MQG)
The share price has fallen in the past few weeks due to a conservative full year result and general market jitters. We believe markets will recover from around these levels. With MQG recently trading back near crucial support levels, we believe current prices represent a buying opportunity for longer term investors. Shares in the diversified financial group were trading at $118.74 on May 16.
Atlas Arteria (ALX)
This global toll road operator generates reliable earnings. From a charting perspective, it’s been in an uptrend for years. Recent price action is telling us there’s renewed interest in the stock and we expect the share price to continue heading higher from here. The shares were trading at $7.21 on May 16.
HOLD RECOMMENDATIONS
FlexiGroup (FXL)
We recommended investors consider buying this diversified financial services firm in March. We concluded it’s a turnaround story with plenty of upside potential. The company is out of its downgrade cycle and is signing up new customers. Despite the recent jump in share price, we believe there’s further upside in the next 12 months.
Fortescue Metals Group (FMG)
Continuing disruption to Vale’s iron ore operations after a dam disaster in Brazil earlier this year provides support to Australia’s iron ore miners. FMG looks bullish on the price chart. The shares soared on May 14 after the company announced a substantial increase in its fully franked dividend, bringing a full year payout to 90 cents a share for 2018-19. The shares were trading at $8.37 on May 16.
SELL RECOMMENDATIONS
Cimic Group (CIM)
In our view, the share price will remain under pressure. The stock bounced off recent lows after the company confirmed it was complying with disclosure obligations and accounting standards. Investors can take advantage of the bounce and move on. Shares in the constriction giant were trading at $46.33 on May 16.
Bank of Queensland (BOQ)
In our view, the shares are still expensive at current levels. The share price is trading near a support level. But recent price action is telling us that it’s likely to break support and continue lower towards $8. The shares were trading at $8.90 on May 16.
Michael Gable is managing director of Fairmont Equities.
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