Tom Bleakley, BW Stock
Syrah Resources (SYR)
Syrah is the largest graphite producer in the ASX. Graphite makes up about 20 percent of the weight of a lithium-ion battery. Graphite is a critical mineral for the transition to electric vehicles. The International Energy Agency forecasts strong demand for graphite between 2020 and 2040. We believe that Syrah offers a bright prospect.
Telix Pharmaceuticals (TLX)
This biopharmaceutical company has launched its prostate cancer imaging product. The drug Illuccix has been approved by the US Food and Drug Administration to detect early stage 4 prostate cancer. Initial sales of Illuccix have been strong since the first commercial dose was administered on April 14, 2022. Telix is advancing nuclear medicine trials for the treatment of late-stage prostate cancers.
The A2 Milk Company (A2M)
This infant formula company is generating strong growth in its key Chinese market. A2M increased sales in cross-border trade and in Chinese mother and baby stores. Despite China’s declining birthrate, A2M has a strong brand and the potential to be an M&A target for larger rivals.
Woodside Power Group (WDS)
The energy giant reported an underlying after-tax net profit of $1.819 billion in the first half of 2022, up 414 percent from the previous corresponding period. Operating income of $5.81 billion increased 132% thanks to higher crude oil and gas prices. We expect energy prices to remain elevated and suggest holding Woodside, at least in the short term.
City Chic Collective (CCX)
The clothing retailer reported global sales of $369.2 million for the 53 weeks ending July 3, 2022. This represented a 39 percent increase in top line growth. However, we are concerned about excess inventory of $195 million as of July 3, although the company expects that to be resolved in fiscal 2023. The share price fell from $2.46 on August 24 to close at $ 1.59 on September 1.
Australia Domain Exploitation (DHG)
This digital real estate listing company posted revenue of $356.7 million in fiscal 2022, an increase of 23.2 percent on the previous corresponding period. However, spending of $234.6 million in fiscal year 2022 was up 24.1 percent. Falling house prices may lead to fewer listings in Melbourne and Sydney and could potentially hurt earnings going forward.
Braden Gardiner, Tradethestructure
Worley provides project and asset services to the energy, chemical and resource industries. Delivered a strong full-year 2022 result after increasing revenue, profit and margins. The company has been attracting more support from buyers after breaking above $13. From a technical perspective, the company has enjoyed some favorable momentum recently, so I expect WOR to target fresh short-term highs of up to $20.
Newfield Resources (NWF)
Newfield is a diamond exploration and development company. Its Tongo diamond mine is in eastern Sierra Leone. The company recently obtained a $55 million financing facility to advance the mine towards commercial production. Technically, buyers have been supporting the stock on price pullbacks. I expect any move above 50 cents to start moving the stock price to new highs above 80 cents. The shares were trading at 42.5 cents on September 1.
Syrah Resources (SYR)
This graphite company recently secured a $102 million binding loan from the US Department of Energy for the initial expansion of Syrah’s Vidalia facility in Louisiana. Syrah is positioned for future growth. The news has continued to support a stock price rally. I suggest investors continue to wait to see if any move above $2 builds momentum for a longer-term rally.
Ridley Corporation (RIC)
The stock price of this provider of animal nutrition solutions has been rising steadily to trade at $2.05 on September 1. RIC was priced at about 70 cents in August 2020. Revenue of $1.049 billion in fiscal 2022 was up 13.1% from the previous corresponding period. I hope some traders will consider taking profits. But in my opinion, any pullback will be met with more buying to resume the uptrend.
Alpha HPA (A4N)
Alpha provides high purity aluminum products to leading technology companies. Although the high purity aluminum market is growing, I think the challenging inflationary environment may influence investor confidence in the stock. The stock price has fallen from 69 cents on April 19 to 52 cents on September 1.
Whitehaven Coal (WHC)
The coal miner’s share price rose from $2.75 on January 5 to $7.90 on September 1. The company has benefited from a global energy supply shortfall and strong demand for coal at record prices. The company reported revenue of $4.9 billion for the year ended June 30, 2022 compared to $1.557 billion in fiscal 2021. In my opinion, it may be a good opportunity to consider making a profit as the good news They are already incorporated in the price.
Jed Richards, Shaw and Partners
Duxton water (D2O)
The company buys water rights and leases them to farmers. Earnings are consistent, reliable, and uncorrelated with the rest of the economy. The scarcity of available water rights, combined with a significant increase in demand from the horticultural industry, should increase the value of permanent water assets. The ongoing share buyback will support the price in the short term. The company was recently trading with an attractively high dividend yield of around 5.2 percent.
Ramsay Health Care (RHC)
A consortium of investors led by KKR has withdrawn its non-binding indicative proposal to acquire Ramsay Health Care, an operator of private hospitals in Australia, Asia, the UK and France. Regardless, RHC is well positioned post-COVID-19 to expand its Australian capacity.
Sand Fire Resources (SFR)
The copper miner has consistently delivered on its strategy in recent years. The world is becoming more environmentally conscious. Electrical solutions are gaining more popularity. Copper will be needed in ever-increasing amounts to build future electric vehicles, batteries and power grids. We expect the increase in copper prices to continue.
This packaging giant has outperformed the market by 8.5% in the last 12 months. This is in response to the company’s defensive qualities and a strong balance sheet that allows for more investment for growth. Recently trading with a dividend yield of around 5 percent, I think the current price offers more upside, especially if the market remains volatile and interest rates continue to rise.
The company has performed poorly for many years. In our view, the results for the first half of 2022 showed weak earnings growth in its banking and wealth divisions. While recent asset sales may provide a short-term payoff boost to shareholders, they remove a key growth component from the company’s business strategy. We believe that AMP will require significant reinvestment to regain lost scale.
IRE provides software to the financial services industry. In our view, the latest results were disappointing, with revenue growth offset by cost growth. Previously the market leader, the competition has been growing and improving. Earnings guidance recently dropped to the lower end of the range. In our opinion, the company trades at a high price/earnings ratio, so there is little room for error.
The above recommendations are general advice and do not take into account any individual’s goals, financial situation, or needs. Investors are advised to seek their own professional advice before investing. Please note that TheBull.com.au simply posts broker recommendations on this page. The posting of these recommendations does not in any way constitute a recommendation by TheBull.com.au. You should seek professional advice before making any investment decision.