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 8 July 2024. You can access the full version of the article HERE.

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Buy Recommendations

ASX:FMG

We see the recent pullback in FMG shares as another buying opportunity. Iron ore prices have fallen this year and with it the price of FMG. However, over the years we have seen that FMG can often be oversold on the back of an iron ore pullback, and the share price charts are once again displaying signs that FMG shares should bounce from oversold levels.

ASX:CMM

We remain positive on the outlook for gold in the next 12 months. CMM is a mid-tier gold producer with operations in Australia. They are a low cost producer with plenty of cash in the bank. The long-term chart of CMM also looks favourable for further upside from here.

Hold Recommendations

ASX:STO

We expect demand for gas and oil to increase over the next 12 months and Santos is well placed to capture that demand. Not only do the shares look undervalued here, but the share price chart is showing solid signs that a low is in place and buyer demand is already stepping up.

ASX:WTC

The logistics business continues to grow and recent acquisitions are also progressing very well. The addressable market for WTC remains a huge opportunity and we expect current rates of earnings growth to continue. The share price chart also looks positive as WTC remain in a strong uptrend.

Sell Recommendations

ASX:PTM

This fund manager continues to see an outflow of funds and this is impacting its earnings and profitability. The share price has been in a downtrend since its peak in 2015 and at this point there is nothing to suggest that this trend is going to reverse.

ASX:CKF

This fast food operator updated the market recently with earnings numbers that were not as bad as expected. The share price initially rallied, only to be sold down heavily as the reality of a negative outlook for consumers started to sink in. There are still too many uncertainty and challenges with the high cost of living to know when the downtrend will end for CKF shares.

 

Michael Gable is managing director of Fairmont Equities.

 

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