These were the weekly buy sell and hold recommendations from Geoff Saffer of the Australian Stock Report that were in the Herald Sun August 4th 2013.
Australian Buy Shares
Infomedia Ltd (IFM) – Experiencing strong demand for its car dealer software, including expansion in key European market. Offers decent value at 5% yield and FY14 P/E of 15x.
Blue Energy (BUL) – Expect to see further reserve upgrades from this small oil developer. Has plenty of cash, operates and owns 100% of its key acreage in QLD.
Australian Hold Shares
ANZ Bank (ANZ) – The banking sector looks fully priced, with added uncertainty from bank deposit levy. Of the majors, ANZ currently offers the best value.
Telstra Corp (TLS) – We see some modest profit growth ahead for Telstra, but valuation looks stretched trading on significant P/E premium to market and yield approaching 5%.
Australian Sell Shares
Qantas Airways (QAN) – Despite recent share price falls, outlook remains bleak. A weak AUD, higher relative oil prices, falling margins and negative free cash flow suggest more pain ahead.
Troy Resources (TRY) – Recent quarterly report shows cash costs rising, with recent takeover of AZH proving to be poor timing with gold in the doldrums.
If you would like more info on Australian Shares, visit the Australian Stock Report today.
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