Hot stocks – Bendigo and Adelaide Bank

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This week, Michael McCarthy from CMC Markets likes Bendigo and Adelaide Bank (BEN).

“The regional bank’s “Local Connection” business may be a big winner from any Royal Commission fall out, and the upswing in rural Australia may support its agribusiness. At close to $10 per share, it’s more attractive than the 2017 highs around $12.50,” he says.

And for a contrarian view on Wesfarmers, our chartist Gary Stone from Share Wealth Systems likes the company at these prices

“Wesfarmers share price broke out to a new all-time high last week after oscillating up and down in a five-year trading range between $38 and $46. This is a high probability event that, in the first instance, would typically see Wesfarmer’s share price retrace in the short term to retest its previous resistance zone of $44 to $46. However, given the long consolidation period of five years, it may just keep rising and develop a juicy uptrend such as seen on the left side of the chart.”



Michael McCarthy doesn’t like Blackmores (BKL) and believes the share price is faltering despite a consensus forecast of 16% long-term growth.

“At a PE of 35 times, any missteps could hurt shareholders badly, and competition (especially in China) is revving up. I’m a seller on risk/reward basis,” he says.

Gary doesn’t like Ramsay Health Care (RHC).

“Ramsay’s share price is still in a strong downtrend. A reversal of this trend is a low probability outcome for the time being, given that RHC’s share price has just fallen below a key support zone between $59 and $61. Last week saw RHC rise to retest this zone, which has now become a resistance zone. The odds are that this test will fail and RHC’s share price will move towards the lower black channel line around $53 to $54.”


Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.

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