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

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Buy Recommendations

ASX:IGO

Over the past month, IGO was falling quite rapidly towards the bottom of its trading range. The stock is now back near the March lows and finding some very strong buying support. Momentum indicators have also triggered a buy signal. We believe that recent fears over Chinese growth are at extremely negative levels and resource stocks in general are oversold.

ASX:AMC

The AMC share price has been trending lower since the start of the year. At their recent full year result, guidance was disappointing and the shares were sold down on the day. However, they have bounced back strongly since then. From a charting perspective, there is a high chance that the shares have now bottomed out and are ready to head higher again.

Hold Recommendations

ASX:CHC

Office property is very unloved at the moment and now is the time to gain exposure to this sector for a contrarian trade. The price action in CHC shares around their results two weeks ago signifies a potential turning point as the market was heavily positioned for more bad news. With their FY result coming in better expected, CHC shares are likely to continue recovering from here.

ASX:FMG

Despite the negativity around the Chinese economy, iron ore prices have started to rebound in the past couple of weeks. This indicates the smart money is starting to position already for a recovery. FMG is near the bottom of its recent trading range and looks ready to head higher from here along with the recovering iron ore price.

Sell Recommendations

ASX:TLS

Most analysts are optimistic on TLS here but the price action is telling us another story. Despite Telstra’s recent FY earnings meeting analyst expectations, the share price has been sold off on heavy volume. This implies that all the upside was already priced into the share price.

ASX:QBE

The insurance industry remains competitive and the market is overestimating the ability of insurers to pass through further price increases. Investment income is also expected to peak here with interest rates. The recent uplift in the share price is as good as it will get.

 

Michael Gable is managing director of Fairmont Equities.

 

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