Hot stocks – IPH and Sonic Healthcare

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This week CMC Markets’ Michael McCarthy likes intellectual property services firm IPH Ltd (IPH). He says it has rebased after disappointing the market in February.

“With a buyback in place, a dividend yield and a NZ expansion in train, I’m looking for positive earnings momentum, and an appreciating share price,” he said.

Our chartist, Gary Stone from Share Wealth Systems, likes Sonic Healthcare Limited (SHL).

“Sonic Healthcare’s share price has been in a multi-year uptrend since May 2010. A strong breakout occurred last week, to a new all-time high close and above the $24.50 to $24.90 resistance zone, after a two year sideways consolidation period. This is an early stage breakout, which could be an extension of the consolidation range or could be the start of runup to the $28.50 area.”




Michael doesn’t like Seven Group Holdings (SVW).

“Earnings are forecast to jump 60% plus this year and the stock is still trading on a PE of 20 times – too expensive for a holding company in my view,” he says.

Gary doesn’t like CSR Limited (CSR).

“CSR’s share price has fallen rapidly below the $5.20 to $5.10 support zone. There is a high probability that it will now fall towards the $4.30 to $4.40 support zone,” he says.


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