CMC Markets’ Chief Market Strategist, Michael McCarthy likes Whitehaven Coal (WHC), stating that it looks attractive on valuation. “It’s a controversial industry, and not on every investors radar. However for those who believe demand will continue for the cheaper energy source, WHC is worth considering,” he says.
“At its half year result announcement last week, it unveiled a 19% profit lift and a special dividend. Its higher grade of thermal coal also makes it a better choice,” he adds.
Michael doesn’t like Domain (DHG). “An extraordinary 20% rise after it unveiled a terrible set of numbers last week, is, in my opinion, an opportunity for any long-suffering shareholders to get out,” he says.
“Declining underlying profit, a huge write down and further declines in listings in the post reporting period are all negatives. Throw in upcoming elections in NSW and federally (traditionally a drag on housing market activity) and I’d prefer to be out,” he concludes.
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