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 25 February 2019. You can access the full version of the article HERE.

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BUY RECOMMENDATIONS

WSA

We continue to remain bullish on the resources sector and WSA is arguably Australia’s best nickel producer. Like most commodity stocks, the share price has recovered very well from the 2018 lows. We continue to see strong momentum in the stock with volume now starting to pick up. The charts indicate an initial target over $3.

SFR

SFR is a copper producer and the company is benefiting from an uptick in copper prices. Earlier this year the stock bounced off trend-line support, and has recently pushed through a major resistance line. I expect the share price to continue edging higher here to threaten the old high near $10.

HOLD RECOMMENDATIONS

BHP

We have been bullish on BHP for a number of months now and it has finally pushed through those key resistance levels between $35 and $36. The BHP share price has fended off the sellers and our upside target of $40 now comes into play. The stock should be well supported on any dips back near $35.

ORG

We remain bullish on oil and the energy sector. ORG has been making some good progress off the recent lows. The shares have cleared some major resistance near $7.50 and should continue heading higher from here. We expect it to head back towards $9 over the next few months.

SELL RECOMMENDATIONS

PPH

PPH shares have been struggling for nearly a year now with the share price having fallen from a little over $4 to under $3. After bouncing earlier this year, they were brought back to earth with a disappointing market update in early February. Recent weakness confirms to me that PPH is still in a downtrend and shares are likely to head under $3 once more.

BLD

BLD has provided another downgrade and there doesn’t seem to be enough bargain hunting in the market to lift it from current levels. It is hitting resistance again near $5 so for the moment it appears as though the downtrend is still in place and we should continue to see BLD shares drift lower.

 

Michael Gable is managing director of Fairmont Equities.

 

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