Rudi’s View: Scentre Group, Origin Energy & Cleanaway

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 | Jun 21 2018

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

-Finding Opportunities In A Heavily Polarised Market
-Growth Or Weakness?
-Conviction Calls
-Morgan Stanley's US Cycle Indicator

-Rudi On TV
-Rudi On Tour

[Note the non-highlighted items will appeared in part two on the website on Thursday]

Conviction Calls

By Rudi Filapek-Vandyck, Editor FNArena

The guardians of Model Portfolios at stockbroker Morgans have been nibbling away at beaten down yield stocks including CommBank ((CBA)) and Telstra ((TLS)) recently. In both cases, Morgans is by no means convinced the bad news is over, but what we are experiencing is most likely "peak negativity" towards banks and telcos, and the stockbroker remains confident no dividend cuts are on the horizon.

[Late addition: Morgans has now changed its tune regarding Telstra dividends post what has been a much worse than anticipated update provided by the company at yesterday's investor day. But the stockbroker has not abandoned its positive view. See today's Australian Broker Call Report for more insights into the latest updates on Telstra.]

The Growth Model Portfolio has increased its exposure to Wagners Holding ((WGN)), while placing Rio Tinto ((RIO)), ALS ltd ((ALQ)) and Beacon Lighting ((BLX)) on the watchlist with the aim of accumulating shares on weakness. Already on that watchlist: Link Administration ((LNK)), Australian Finance Group ((AFG)), and Motorcycle Holdings ((MTO)).

Investors still looking for opportunities in the yield space might be interested to know Morgans favourite remains Aventus Retail Property Fund ((AVN)), with Viva Energy REIT ((VVR)) and Centuria Industrial REIT ((CIP)) also seen as attractive.


Bell Potter analyst Chris Savage has updated his key picks in the local tech sector with Citadel Group ((CGL)), Integrated Research ((IRI)), and TechnologyOne ((TNE)) the three sector favourites. This means Infomedia ((IFM)) is no longer a favourite, thanks to a rally in the share price.

Bell Potter's sole Sell rating for the sector remains with WiseTech Global ((WTC)) with analyst Savage making the extra effort in pointing out he holds the company in high regard; it's just he cannot reconcile the stock's excessive valuation.


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