CMC Markets’ Chief Market Strategist, Michael McCarthy likes Ardent Leisure (ALG). “The group is moving on from the Dreamworld disaster. A strong performance by its US arm Main Event and a positive trend in its local Theme Parks business was masked in last week’s half year result by a number of one off factors. including costs flowing from the tragedy and the divestment of its Bowling and Entertainment business. Trading near 7 year lows, it may fit a value investment profile” he says.
Michael doesn’t like Automotive Holdings (AHG). “Although AHG’s first half headline loss is attributable writedowns, underlying operating profit also fell,” he says.
“The company is fighting battles on a number of fronts. Cutting the dividend is potentially a prudent move, but along with cost cutting measures also possibly a signal of difficult times ahead,” he warns.
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