CMC Markets’ Chief Market Strategist, Michael McCarthy likes Costa Group (CGC). “After a profit warning last week the food group’s shares plummeted almost 40%. Many analyst have pointed to the cyclical nature of their business and the potential for a quick earnings recovery. In my view, the sell down is overdone and a share price around $4.70 is worth examining,” he says.
Michael doesn’t like Growthpoint Properties (GOZ). “Recent speculation of lower-than-expected interest rates has lifted the property sector. However, GOZ is near all-time highs, but has a long term estimated growth rate of just 2.2%. At current levels, it may be an opportunity to lock in gains ahead of the February 21 result,” he says.
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