Super Stock Selectors – ANZ and Wesfarmers

Editorial director of Switzer Super Report and Switzer Daily
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This week, CMC Markets’ Michael McCarthy makes a big contrarian call – he puts ANZ (ANZ) on his likes list. The stock is currently in the not-so-good books in Buy Hold, Sell – what the brokers say.

McCarthy doesn’t believe the bank confronts a debt crisis after it announced it would take a $100 million in credit provisions and market concerns remain about further doubtful debts. With the share price under pressure, a dividend yield (with franking) close to 11% and the stock trading at a price-to-earnings (PE) around 9.5 times, McCarthy is “happy to add to holdings”.

McCarthy doesn’t like Wesfarmers (WES). While the conglomerate responded quickly to the distortion of revenue numbers at Target, McCarthy says that the “revisions undermine the rationale for viewing WES as superior to Woolworths (WOW)”.

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