Thoughts on WES, NEC & JBH

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Question asked 21/02/2021

Thoughts on WES, NEC & JBH

“I am a new subscriber to MM and really enjoying all of the insights and updates. Whilst I realise you can't give personal advice, I wondered what your opinion is in regards to selling out stocks to buy new opportunities? I purchased WES, NEC & JBH when they were at their lows and they are all sitting between 50%-115% of their initial purchase value. As they all pay good dividends I am just not sure if the smart play is to hold on to them or sell them now to get the good returns and invest into new opportunities?” – Cheers Sonja B.

Answer

Morning Sonja,

Welcome onboard! In our opinion you have 3 quality stocks which is demonstrated by them all making fresh highs already this year. There are couple of things to consider in-line with MM’s current market view:

1 – We are bullish at least short-term although we do expect to see a volatile year littered with opportunity. At this stage I believe these excellent businesses will continue to perform strongly within the ASX.

2 – At current levels JB HI-FI (JBH) is the one we would have on the shortest leash but considering the markets cyclical position fresh buying opportunities are slowly but surely becoming thin on the ground.

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Wesfarmers (WES)

LAST UPDATED 21/02/2021 16:18

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