Super Stock Selectors – Healthscope

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This week, Julia Lee of Bell Direct thinks retailer Myer looks set to benefit from the Christmas period that’s just around the corner.

“With the all-important Christmas shopping season around the corner, Myer (MYR) is looking like good value,” Lee says.

“Discounting in the sector has eased and Myer’s quality floor space is starting to be viewed by high end brands to expand sales.”

Health is also a theme on our likes list, with two stocks in this sector – Healthscope (HSO) and Estia Health (EHE) – in the mix.

Gary Stone says a classic break out occurred in Estia’s share price on the 30th of October, which is now trading at $7.67 after first listing at $4.74 in December last year.

But not all of the health stocks today are a ‘like.’ In Gary’s view, Blackmore’s euphoric levels have almost had their day. “Whilst the future potential for BKL’s business may certainly exist, such a rise in a stock’s price in a relatively short period of time is unsustainable without a serious pullback,” he says.

Elio D’Amato from Lincoln Indicators has Australian receivables management company, Credit Corp, in his likes list after the company upgraded its profit guidance at their AGM to 12% (NPAT) for the 2016 fiscal year.

“We believe the fundamentals of the business remain positive, with the company well placed to leverage the improved operational efficiencies and increased PDL purchases into earnings momentum,” D’Amato says.

And with a continual fall in oil prices, and improving market conditions, Evan Lucas of IG Markets thinks airline Qantas is set to have a good week.

The devastating disaster in the half BHP-owned iron ore operation in Samarco, Brazil, is also expected to be priced in by the market, Lucas says.

For the second week running, Fortescue Metals Group is a stock less favoured by Raymond Chan of Morgans.


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