Home Impact producer 18 Sharing Tips – July 3, 2022

18 Sharing Tips – July 3, 2022

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Philippe Bui, Medallion Financial Group

PURCHASE RECOMMENDATIONS

Goodman Group (GMG)

This integrated commercial and industrial real estate group improved results for the coming fiscal year 2022. He raised the earnings per share forecast to 23%. The stock price is down from its highs for the year in response to investor concerns that rising interest rates could impact margins. The company still has a substantial development pipeline and a track record of increasing rent per square meter by 10% per year over the past six to seven years.

Santos (STO)

The war in Ukraine continues to disrupt oil and gas supplies. We expect energy prices to remain above historical averages, despite the possibility of moderating in 2022. Over the medium term, we expect LNG prices to remain resilient, given an expected reduction in coal energy.

MAINTENANCE RECOMMENDATIONS

HRD1 (HRD)

The company operates Australia’s largest land drill. The company has a diversified exposure across gold, copper, iron ore and nickel. The company focuses on mining production and development, as opposed to exploration, which is more cyclical. The market sell-off leaves the company recently trading at an attractive price/earnings multiple of around 5x.

Hearts and Minds Investments (HM1)

HM1 focuses on a global portfolio of high conviction stocks from several leading fund managers. The society donates investment costs to the beneficiaries of medical research. The company was recently trading at a significant discount to net tangible assets. In the longer term, HM1 remains attractive for investors looking for international exposure.

SALES RECOMMENDATIONS

Whitehaven Coal (WHC)

Coal prices are well above long-term levels. In our opinion, it is difficult to foresee high coal prices in the years to come. WHC’s stock price rose from $2.02 on July 5, 2021 to $4.835 on June 30, 2022. Investors may be looking to cash in on some gains.

Vulcan Energy Resources (VUL)

We remain bullish on the lithium space. While lithium prices remain high, we prefer producers. This emerging lithium producer is aiming for net zero greenhouse gas emissions. Although the technology is exciting, the company is still far from generating significant revenue.

Niv Dagan, Peak Asset Management

PURCHASE RECOMMENDATIONS

Riversgold (RGL)

The explorer recently reported encouraging lithium oxide assay results from recently acquired exploration claims. The key Tambourah project remains underexplored, with only 4% of the real estate lot covered. The booming global battery market acts as a tailwind. RGL has the potential to host a large lithium-cesium-tantalum system at its Tambourah project.

Besra Gold Inc. (BEZ)

Encouraging drill results recently released on its Jugan project point to potential for stand-alone open-pit development. In our view, the impressive analytical results give confidence in the company’s prospects based on exploration and development in South and East Asia. Gold can be a safe haven in times of uncertainty and economic weakness.

MAINTENANCE RECOMMENDATIONS

PointsBet Holdings (PBH)

The online sports betting company has secured a $94.16 million equity investment from SIG Sports Investments Corp. The investment is expected to build on PBH’s operational capabilities and accelerate the company’s technology roadmap. PBH plans to expand its North American operations.

Woodside Energy Group (WDS)

The stock was pushed higher by soaring energy prices stemming from a supply crisis. The merger of BHP Group’s oil and gas portfolio with Woodside has created an energy powerhouse. We expect the merger to shift Woodside’s strategy to a low-cost, low-carbon energy provider.

SALES RECOMMENDATIONS

Harvey Norman Holdings (HVN)

The retail giant reported total system sales revenue of $4.91 billion for the six months ending December 31, 2021. This was down 6.2% from the period. previous correspondent. According to our analysis, HVN has outperformed its peers, but we expect consumer spending to decline across the sector in response to the rising cost of living.

JB Hi-FI (JBH)

External pressures caused by rising interest rates and inflation led to a significant drop in share price for this consumer electronics giant. Spooked investors are turning to safe-haven assets given weakening sentiment regarding the outlook for the retail sector.

Harrison Massy

Harrison Massey, Argonaut

PURCHASE RECOMMENDATIONS

Medallion Metals (MM8)

Medallion owns and operates the Ravensthorpe gold and copper project in Western Australia. The company recently announced a 79% resource increase in the mineral resource estimate. The total resource was increased to 1.37 million ounces of gold equivalent at 2.6 grams per tonne of gold equivalent. The company’s update included an initial copper resource at the project of 50,000 tonnes. The company is awaiting new scan results, with a resource update expected in late 2022.

GR Engineering Services (GNG)

This mining services company updated its guidance, forecasting revenue of between $620 million and $640 million for fiscal 2022. It beat previous expectations of $580 million to $600 million. We expect the company to be diligent in managing cost pressures. We expect the company’s dividend yield to be above 10% in its next report.

MAINTENANCE RECOMMENDATIONS

Commonwealth Bank of Australia (CBA)

Rising interest rates and rising cost of living could affect the bank’s mortgage portfolio in the short term. Slower economic growth and loss of consumer confidence could also affect near-term growth in the banking sector. The bank remains a must in investment portfolios. The medium to long-term outlook for rising cash rates is promising.

Rio Tinto (RIO)

The global miner maintains a strong cash position and we expect it to continue paying attractive dividends. Fundamentally, we believe iron ore demand will increase before the end of 2022 in response to potentially larger stimulus measures in China.

SALES RECOMMENDATIONS

Tabcorp Holdings (TAH)

The gambling service provider recently spun off its lottery business, which we believe will impact the long-term prospects of the business. A highly saturated betting market exposes Tabcorp to fierce competition.

St. Barbara (SBM)

This gold producer is present in Australia and Papua New Guinea. SBM withdrew its production forecast at its Simberi gold mine in February 2022. The company also announced that it was postponing an investment decision on the sulphide expansion at the asset. Any increase in cost pressures will present challenges. The stock price fell from $3.63 on July 6, 2020 to 75.5 cents on June 30, 2022.

The recommendations above are general advice and do not take into account an 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 publishes broker recommendations on this page. The publication of these recommendations does not constitute an endorsement by TheBull.com.au. You should seek professional advice before making any investment decision.