Michael likes Nearmap (NEA). “Overenthusiastic analysts helped push NEA’s share price to an unsustainable level,” he says.
“A change in accounting practices and a commitment to continual profit re-investment brought it back to earth.
“Investors with faith in the longer-term growth story may find current levels around $2.70 an attractive entry point,” he adds.
Michael, however, doesn’t like Coca-Cola Amatil (CCL). “At its recent report, CCL revealed revenue growth at 5.2%, a welcome turnaround. However ongoing profits fell again, speaking to volume at the cost of margin,” he says.
“Although a number of analysts revised valuations upward, many are still below current levels.
“The share price has recovered to trade at 5-year highs and the stock is now ex-dividend.
“Investors might consider locking in recent gains,” he adds.