Morning Report Friday 29 May 2015
With the ASX200 sitting within 1% of last Friday’s close, I thought it would be interesting to focus on a few stocks that have bucked the trend and moved over the last 5 trading days. The below winners / losers clearly illustrates two very important points with investing:
• Even in an extremely quiet market, you can experience very different returns between individual stocks.• Stocks that are hated one day, can be loved the next e.g. Fortescue (FMG).
1. Fortescue Metals (FMG) +14.6% - Speculation of a Chinese suitor has created renewed interest in the stock, aided by a bounce in Iron Ore. Technically, I believe the strength will now follow through towards $2.90.2. AGL Energy Ltd (AGL) +8.1% - The P/E of 15.5 and 3.9% yield is not stretched. The sale of assets has begun successfully supporting the stock. Technically in resistance, leaving me neutral at current levels.3. Transpacific Industries (TPI) +6.1% - Investors have welcomed in the management changes, but it remains a simple bounce within a downtrend leaving me with no interest in TPI.
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