Retail and food appear to be a theme this week, with Elio D’Amato naming Premier Investments as his like, and Michael McCarthy listing Select Harvests. Premier Investments released a strong annual report in September. “We believe future growth drivers will be fuelled by further expansion of the Smiggle and Peter Alexander brands in both domestic and international markets, along with continued reinvestment into local brands and cost synergies,” D’Amato says.
I have to add, if the number of Smiggle stores popping up in shopping centres is anything to go by, then Premier Investments is on to a good thing.
Michael McCarthy says he likes Select Harvests because it is already receiving substantial share price support from a falling Australian dollar, rising almond prices and growing demand as consumers shift away from peanuts. “However, analysts are forecasting just a 12% profit increase this year, and around $11.50 the P/E is around 12 x, – cheap to those who see good growth potential,” he says.