Buy, Sell, Hold Recommendations – Herald Sun 4/8/2013

As featured in the Herald Sun on August 4th 2013, here are the latest buy, sell and hold recommendations from Geoff Saffer Equity Analyst & Educational Facilitator at the Australian Stock Report.

Geoff has over 10 years’ experience researching and analysing Australian shares, with a passion for fundamental analysis and specialty in identifying undervalued companies – particularly at the smaller end of the market.

Shares To Buy

Infomedia Ltd (IFM) – Experiencing strong demand for its car dealer software, including expansion in key European market. Offers decent value at 5% yield and FY14 P/E of 15x.

Blue Energy (BUL) – Expect to see further reserve upgrades from this small oil developer. Has plenty of cash, operates and owns 100% of its key acreage in QLD.

Shares To Hold

ANZ Bank (ANZ) – The banking sector looks fully priced, with added uncertainty from bank deposit levy. Of the majors, ANZ currently offers the best value.

Telstra Corp (TLS) – We see some modest profit growth ahead for Telstra, but valuation looks stretched trading on significant P/E premium to market and yield approaching 5%.

Shares To Sell

Qantas Airways (QAN) – Despite recent share price falls, outlook remains bleak. A weak AUD, higher relative oil prices, falling margins and negative free cash flow suggest more pain ahead.

Troy Resources (TRY) – Recent quarterly report shows cash costs rising, with recent takeover of AZH proving to be poor timing with gold in the doldrums.

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