Peter Switzer is becoming a bit of a contrarian when it comes to the banks. Listening to business strategist Gary Hamel at a boardroom lunch last week made him think that NAB has the potential to surprise the doubters.
According to Peter, what could work in NAB’s favour is its focus on business banking, and its UK assets could be worth more in the next two to three years.
“I do think they might be a surprise package,” he says.
And if you’re a commodity watcher, you’ve probably noticed the big spike in the nickel price lately.
This is mostly due to Indonesia’s decision to stop exporting nickel in January, and as it accounts for 15% of the world’s supply, that’s kind of a big deal.
However, Switzer Super Report expert Rudi Filapek-Vandyck was already calling a buy on nickel exporter and producer Western Areas (WSA) 12 months ago. Since then. it has doubled in price.
Western Areas (WSA)
But it’s not too late to get in, according to Rudi, the nickel price could keep riding higher for another four years! It will become a momentum stock though, so be prepared for some volatility.
Switzer Super Report director Paul Rickard is keeping his eye on yield stocks, like Telstra.
“In this thirst for yield, Telstra should grind higher (now bounced back from flirting with $5.00) and is up on the year, starting 2014 at $5.25,” he says.
However Paul is a bit nervous about talk of an “offshore earnings drive/offshore acquisitions” and says he will sell out of Telstra if they go on an acquisition spree.
Peter and I are fighting it out for who suggested this one first – but regardless, anyone who did buy Greencross (GXL) earlier this year would be in a pretty good spot now.
Unfortunately I’m not one of those people. I’m sure Peter, being the guru that he is, is.
The chart bellow shows it has gone up nearly 20% since we mentioned it in Shortlisted in April.
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