CMC Markets’ Chief Market Strategist, Michael McCarthy likes Automotive Holdings (AHG). “This retail auto parts and logistics group is underpinned by property holdings,” he says.
“A turn around in its share price in December is backed by a solid half year report in February. Despite share price gains it is still well below 12 month highs, and trading at an undemanding PE multiple around 13x,” he adds.
Despite its much reduced share price, which may tempt some investors, Michael doesn’t like Bellamy’s (BAL). “This is a stock that polarises analysts,” he says.
“However, the 14-month wait (so far) for an all clear from Chinese authorities is, in my mind, a warning, and it’s possible the licence may never arrive,” he concludes.
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