Shortlisted – Super Stock Selectors 18/5/15

Editorial director of Switzer
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Peter’s like this week, which he also talks about in his story today, is IRESS.

“A lot of my well respected contacts keep telling me IRESS is well placed,” he says.

And they’re right. Because it clips the ticket on each transaction, IRESS does well, regardless of which direction the market is going.

Michael Heffernan, senior private wealth advisor, with Phillip Capital, likes the iconic Dulux. He says it’s performed particularly well since its demerger from Orica.

“It’s set to benefit from the strengthening in the residential building sector, has attractive fundamentals and a dividend yield of over 3% fully franked,” he says.

Elio D’Amato likes customer-billing provider Hansen Technologies.

“The group reported a strong half year result and Hansen’s share price has more than doubled over the last 12 months. We continue to view the outlook as robust for the company and see more growth opportunities ahead,” he says.

Evan Lucas likes Macquarie Group and Michael McCarthy is a big fan of Harvey Norman on the back of Budget stimulus, which should provide a boost to consumption.

Julia Lee likes Greencross, the pet company that has retail, vet clinics and grooming salons, which all allow for substantial cross selling.

“Shares are down 30% from peak this year and shares are looking oversold,” Lee says.

“As pet owners continue to treat their pets like part of the family, spending on pets is likely to continue to rise, with Greencross being a beneficiary.”

But highlighting that one person’s gold can be another person’s garbage, Peter mentions Greencross as his dislike for this week because “former management is no longer running the show”.

20150518 - Super stock selectorsAnd Michael Heffernen points out that it won’t just be the mining companies that suffer from the end of the mining boom. His dislike is Decmil Group Ltd (DCG).

“As it builds accommodation villages for miners, it is adversely affected by cut backs in investment spending by major resources companies. Other sectors are preferred in the current market and economic environment,” he says.

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