What would you do?

I am a retired electrician running my own SMSF. I subscribed to the Switzer Super Report for a bit of guidence.

I have the following shares at present:

ACR      AMM      ANZ
AZJ      ALL         ORG
SUN      TEN        WPL

Are there any of these you would off load?

I am looking to invest around another $250,000 to $350,000 into stocks before the end of the year. Can you tell me which 6 stocks from Switzers growth and yield portfolios you would recomend, and maybe a few not on the lists? Iwill be holding these stocks for long term. I would also be interested in a couple of emerging market shares.

Also, I get a little confused when in same newsletter Charlie Aitken says Qantas could double in next couple of years and Rudi Filapek-Vandyck’s What the brokers say has Qantas downgraded. Could you explain the background to these opposite recommendations as I find it confusing.

A: Thanks for the question.


We try hard to ensure that our subscribers aren’t confused, however sometimes there are going to be some contradictory opinions. We report what the major Broker’s do, and yes back on 2 September, a couple of the brokers downgraded Qantas. Independently, on 10 October, Charlie put a big call on Qantas – with a well researched and strong argument.


I hasten to point out that in our experience, the broker analysts get it right about as often as they get it wrong. However, they can be influential – and a change of rating can often lead to a material change in price. Information we believe is worth having.


In regards to your portfolio, I can’t legally provide you with personal advice unless I am appraised of your financial situation, financial goals and particular needs. That said, there is nothing that really stands out as a “must offload” stock. I don’t like TEN much – although Lachlan Murdoch and company obviously see something in it and I guess you are backing their judgement. I just don’t like the industry much – and they are very much the third player in the market. I also don’t know a lot about Accrux – there is some quite divergent opinions about this stock.


For what it is worth, the current consensus broker ratings (+1.0 most positive, -1.0 most negative) and target prices (according to FN Arena) are:


ACR    0.0   $3.62

AMM  0.5   $2.13

ANZ    0.5   $31.22

AZJ     0.5   $4.89

ALL     0.1   $4.49

ORG    0.5   $14.51

SUN    0.4   $12.99

TEN    -0.3  $0.28

WPL    -0.1  $38.81


If you are looking to add some more money to the market, I think the starting point is to look at your sector weights and see what your biases are. Depending on what these are, I would be inclined to look at the major banks (CBA, Westpac), BHP and some of the leading industrial stocks (TOL, BXB etc).


Regards,



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