One of our ‘four fun stocks’ today is Super Retail Group (SUL). James Dunn talks about its exposure to a breadth of activities in sports, leisure and auto and how it’s looking cheap after coming off a high last year.
Charlie Aitken also says it’s “time to pick up the vibrating knife in SUL”
“Interest rates are at record lows, residential property prices have been rising sharply, the share market has performed well over the last two years, employment remains solid and petrol prices are collapsing with the oil price. At the macro level settings for consumers should be positive for sentiment, but discretionary retail share prices have collapsed,” he says.
“However, the seasonal Christmas retailer rally is upon us and I want to bottom fish in one of these beaten up consumer discretionary stocks.”
His main target is Super Retail Group.
Peter liked the call that Michael McCarthy, chief market strategist for CMC Markets, made on biotech Novogen (NRT) on his show last week.
“It’s highly speculative but it’s probably worth having a look,” Peter said.
It is developing a drug that is being used to fight abdominal and ovarian cancers.
“If it does work it’s going to be revolutionary in cancer treatment,” McCarthy says.
And while we’re talking about biotechs, take a look at the performance of Sirtex Medical (SRX) over the past three months. We made a call on this first in a fundie’s favourite from Platypus Asset Management in July last year. Montgomery Investment Management picked up the theme in November and we’ve been following it ever since.
And still on the health theme, the Medibank IPO continues to get a lot of attention. It’s certainly an interesting company and Paul Rickard has been following it closely. He’s looking to buy a little bit but not as much as he would have, if it were better priced. The general consensus appears to be that, at near the top of the range of $2.00 per share, it’s a little bit expensive.
“You’ve got to be a little bit careful of the hype,” Paul says.
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Also in the Switzer Super Report
- James Dunn – Four fun stocks to get serious about
- Peter Switzer – 10 tenets you have to know to invest ahead
- Ben Griffiths – The next big thing in energy – Sundance Energy Australia
- Rudi Filapek-Vandyck – Buy, Sell, Hold – what the brokers say
- Gary Stone – S&P500 short-term outlook
- Staff Reporter – Property growth moves to fringes