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 4 February 2019. You can access the full version of the article HERE.
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Any weakness is a buying opportunity. Commodities should do well this year and a resolution to trade tensions could see BHP push through major resistance near $35.50. From a charting perspective, a move through $35.50 could see BHP attempt a rally towards $40.
GMG shares have been trending very well for several years now. Industrial property is the pick of the REIT’s, and interest rate rises being pushed out is supportive of the GMG share price. Any dips are worth buying into and GMG should do well over the longer term.
We are bullish on gold this year and NCM has finally got back onto our radar. Having spent the last two years trading sideways in a large triangular formation, NCM has now broken free of that pattern. This means that it should start trending higher from here and we can see levels above $30 being achieved.
We continue to believe that oil prices have bottomed and STO gives us the best leverage to that idea. Recent quarterly results fro the company also beat prior guidance. Price action since the December lows has been impressive and the charts indicate that there is much more upside in store.
The prospect of offloading franking credits is seeing a lot of buying support for WOW. However, it is now finding some resistance above $30 and it trades on an excessive P/E for a company with little earnings growth. A disappointing interim result could see the share price slide.
The share price has edged higher since collapsing in early December. A few unknowns remain in the company and this recent bounce is a chance for investors to get out now and move on to where there are many better opportunities in the market.
Michael Gable is managing director of Fairmont Equities.
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