Morning Report Thursday 28 January 2016
Good morning everyone Overview Over the last month the ASX200 is down a disappointing 7.9% but the three stocks we discuss below have enjoyed an excellent start to 2016. When looking at these stocks a number of questions arise including:1. Do we take profit and move to cash?
2. Do we switch to a stock that we like that has been battered in 2016?
Here are Market Matters’ thoughts: Stock #1 Star Entertainment (SGR) +8.8% Star Entertainment has rallied to all time highs in 2016 – see Chart 1a,while Crown Resorts (CWN) - see Chart 1b, is languishing 34% below its highs of January 2014. The weak Australian dollar and increased number of inbound tourists from Asia has helped both companies hospitality businesses in Australia i.e hotels and casinos. However, Crown Resorts has been hammered by the slowdown in Macau gambling primarily due to the Chinese Government's crackdown on "junkets" - CWN has made significant investments in Macau. Market Matters has 2 thoughts here:1. run stops on SGR at $5.14; and
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