Rudi’s View: Link Administration, Blue Sky And Costa Group

Always an independent thinker, Rudi has not shied away from making big out-of-consensus predictions that proved accurate later on. When Rio Tinto shares surged above $120 he wrote investors should sell. In mid-2008 he warned investors not to hold on to equities in oil producers. In August 2008 he predicted the largest sell-off in commodities stocks was about to follow. In 2009 he suggested Australian banks were an excellent buy. Between 2011 and 2015 Rudi consistently maintained investors were better off avoiding exposure to commodities and to commodities stocks. Post GFC, he dedicated his research to finding All-Weather Performers. See also "All-Weather Performers" on this website, as well as the Special Reports section.

Rudi's View | Nov 09 2017

In this week's Weekly Insights (this is part two):

-Australian Equities: Angels, Falling And Rising
-The Many Joys Of October
-Conviction Calls: Morningstar, UBS, Ord Minnett, Wilson, GS, Bell Potter, DB, Morgans
-RBA Rate Hikes: Slip Slidin' Away

-Sold Out
-No Weekly Insights Next Week

-Rudi On BoardRoom.Media (Updated)
-2016 - L'Année Extraordinaire
-All-Weather Model Portfolio
-Rudi On TV
-Rudi On Tour

[Note the non-highlighted items appeared in part one on the website on Wednesday]

Conviction Calls: Morningstar, UBS, Ord Minnett, Wilson, GS, Bell Potter, DB, Morgans

By Rudi Filapek-Vandyck, Editor FNArena

Morningstar recently updated its list of Global Equity Best Ideas and among the new additions we find three ASX-listed names; Telstra ((TLS)), Aveo Group ((AOG)) and Crown Resorts ((CWN)). Given the share price history for each of these three, we do not have to double check for the reasons behind their inclusion. Hint: it's share price weakness related.

There were no Australian names among those who have been removed, which means the three newcomers join Domino's Pizza ((DMP)), Coca-Cola Amatil ((CCL)), Santos ((STO)), QBE Insurance ((QBE)), CommBank ((CBA)), Healthscope ((HSO)), Ramsay Health Care ((RHC)), Brambles ((BXB)) and Westfield ((WFD)) to make for a total of twelve stocks that have been put to clients across the world to consider buying, in case of any need to put money to work in Australia.

The same twelve stock ideas have been communicated to Australian investors through the weekly report that once upon a time was widely referred to as "Huntleys", but nowadays is titled Your Money Weekly, Issue 42.


Strategists at UBS remain of the view that Australian equities should be able to deliver a total return of 8-10% in 2018, even though their end-of-calendar-year 2017 target for the ASX200 remains at 5875, below where the index is trading at in the second week of November.

Broadly taken, the strategists remain overweight both resources and banks and with investors pushing up share prices across other sectors, UBS strategists has the focus out for growth at a reasonable price (GARP). This month's new model portfolio inclusions are Independence Group ((IGO)), Link Administration ((LNK)) and QBE Insurance ((QBE)) while all of BlueScope Steel ((BSL)), Boral ((BLD)), Incitec Pivot ((IPL)), James Hardie ((JHX)) and Sims Metal Management ((SGM)) have been removed.

Juicy detail: the removal of these five stocks occurred because the responsible analysts left the firm and there's no coverage until a new analyst enters the frame.

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