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 January 2021. You can access the full version of the article HERE.

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Buy Recommendations

ASX:QAN

The pullback in the QAN share price over December has seen it come back to cheaper levels and now it is finding some very good buying support down here. As fears of a NSW Covid second wave dissipate, we expect the QAN share price to get back into an uptrend here and go on to test $6.

ASX:WPL

The current macro environment is supportive of resources and we expect energy prices to continue higher in 2021. WPL shares staged a breakout two weeks ago by pushing above resistance near $24. Volume has started to pick up again. The stock should now kick on and continue rallying up towards the $30’s.

Hold Recommendations

ASX:COH

COH shares have fallen back during the last few months but they seem to have now found some very strong buying support under $200. The charts indicate that there is a very good chance we have seen a low in COH and we should see the share price head higher from here.

ASX:Z1P

The Buy Now Pay Later space has been fertile hunting ground for traders, but Z1P’s share price has lagged that of Afterpay in the last few months. However, it does appear as though it is starting to stage a recovery. Price action in the last few weeks is looking more positive and we can see some good buying support now come in for Z1P.

Sell Recommendations

ASX:MSB

MSB’s share price has gone nowhere for the last 10 years. Recently we have seen the stock get sold off heavily on the back of disappointing company announcements. The company and management don’t appear to have the right track record to deliver success and the share price continues to look vulnerable.

ASX:QBE

QBE has been a massive disappointment since the GFC. The insurance business continues to be a tough one to invest in and QBE continues to show that it is not up to the task of being able to navigate the insurance space and create shareholder value. Recent price action also suggests to us that the share price will head lower.

 

Michael Gable is managing director of Fairmont Equities.

 

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