Morning Report Tuesday 24 February 2015
Looking at another six companies who reported yesterday
The ASX200 continues to be supported around the 5,900 level as investors continue to seek yield with Australian banks, a major attraction – around 30% of the ASX200 is now banks. However, when we look at performances of some of the stocks below, there are clearly more games in town than just banks. I firmly believe that strong performance, over the coming 18 months will be achieved by identifying quality individual opportunities, as opposed to chasing the mature “yield play”.
1. BlueScope Steel (BSL) $5.10 – Fell over 8% yesterday after reporting. I see no reason to invest in BSL.2. Caltex (CTX) $36.61 – Fell 0.5% even after beating its own guidance. CTX has more than doubled since late 2013 and appears to have further to go. Ideal buying under $35 but hard risk / reward here.3. GPT Group (GPT) – Part of the REITs sector I am keen on. Buy around $4.55 with stops under $4.10.4. Lend Lease (LLC) $17.00 – Looks fantastic, having doubled since mid-2013; I am a keen buyer under $15.5. M2 Group (MTU) $9.46 – MTU has performed excellent over the last year and we enjoyed the majority of the move. The stock remains positive, if we get a sell off -buy under $8 with stops $7.6. UGL (UGL) $1.85 - closed 5.6% lower at $1.85, after reporting a first half loss of $122.5mln. No reason to invest.
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