Rudi’s View: Amcor, Banks, Winners & Losers In Gold

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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 28 2019

In this week's Weekly Insights (published in two parts):

-Crucial Question: Is It 1995 or 2007?
-Conviction Calls
-Gold Stocks: Winners & Losers

-Rudi On Tour
-Rudi Talks


Conviction Calls

By Rudi Filapek-Vandyck, Editor FNArena

Stockbroker Morgans summarised the situation neatly in its Australia Strategy report this week: earnings forecasts are falling, still, for corporate Australia and companies have continued to issue profit warnings, but a surprise outcome in the federal election in May and a sharp fall in government bond yields have injected strong positive momentum into Aussie equities.

Morgans' strategists continue to see "compelling opportunities" in Big Four banks, China exporters and oversold energy stocks.

In addition, the stockbroker summed up its sector favourites, which generated the following list of go-to stocks for investors in Australian equities:

-Among banks: Westpac ((WBC))
-Diversified Financials: Macquarie Group ((MQG)), Afterpay Touch ((APT)), Kina Securities ((KSL)) and Australian Finance Group ((AFG))
-Industrials: Orora ((ORA)), PWR Holdings ((PWH)) and Acrow Formwork and Construction Services ((ACF))
-Healthcare: ResMed ((RMD)) and Sonic Healthcare ((SHL))
-Telcos and IT & Software: Telstra ((TLS))
-Consumer Staples: Woolworths ((WOW))
-Consumer Discretionary: Aristocrat Leisure ((ALL)), Lovisa Holdings ((LOV)), Baby Bunting ((BBN)), AP Eagers ((APE)) and Noni B ((NBL))
-Resources: OZ Minerals ((OZL)), Evolution Mining ((EVN))
-Energy: Oil Search ((OSH)), Origin Energy ((ORG)), Senex Energy ((SXY)) and Cooper Energy ((COE))
-Food, Agriculture and Chemicals: Treasury Wine Estates ((TWE)) and Costa Group ((CGC))
-Infrastructure and Utilities: Sydney Airport ((SYD)), APA Group ((APA))
-Online media: oOh!media ((OML))
-Property: Aventus Group ((AVN)), APN Convenience Retail REIT ((AQR)), Viva Energy REIT ((VVR)) and Centuria Metropolitan  REIT ((CMA))

****

Analysts at Bell Potter have equally lined up their sector favourites for the financial year ahead.

-Among banks and general insurers the top three consists of Macquarie Group, Westpac, and National Australia Bank ((NAB))
-Listed Investment Companies (otherwise known as LICs): WAM Capital ((WAM)), Plato Income Maximiser ((PL8)), and Australian United Investment Company ((AUI))
-Agriculture and Fast Moving Consumer Goods (FMCG): Synlait Milk ((SM1)), Select Harvests ((SHV)), and Elders ((ELD))
-Technology: Integrated Research ((IRI)), TechnologyOne ((TNE)), and Catapult Group ((CAT))
-Discretionary retail and professional services: Lovisa Holdings ((LOV)), Temple & Webster ((TPW)), and Propel Funeral Partners ((PFP))
-Travel and tourism: Flight Centre ((FLT)) and Helloworld Travel ((HLO))
-Resources: Nickel Mines ((NIC)), Pantoro ((PNR)) and Regis Resources ((RRL)) among base and precious metals; FAR ltd ((FAR)), Metals X (MLX)) and Orocobre ((ORE)) in oil, gas & lithium
-Healthcare and biotech: Starpharma ((SPL)), Mesoblast ((MSB)), Pharmaxis ((PXS)), Avita Medical ((AVH)), Paradigm Biopharmaceuticals ((PAR)), and Volpara Health Technologies ((VHT))


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