Buy, Sell, Hold Recommendations – Herald Sun 8/9/2013

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.

Buy Shares

Credit Corp (CCP) – Debt collection business boasts robust margins, high ROE yet trades @ 13x P/E. Low interest rates and strong balance sheet will allow more debt ledger purchases.

Pura Vida Energy (PVD) – Speculative energy play is high risk, but Moroccan project offers huge upside. Capital raising and $15m farmout fee provide funding for exploration efforts.

Hold Shares

JB Hi-Fi Limited (JBH) – FY13 results beat expectations, highlighted by same store sales growth in 2H. With 14 new stores set for FY14, JBH looks to be in for solid year ahead.

Santos Limited (STO) – High energy prices have helped cushion dips in production and sales volumes. LNG production in PNG on track for second half of 2014.

Sells Shares

Treasury Wine Estate (TWE) – We see more trouble ahead in the US, where a wine glut led to writedowns. TWE still trades on high multiples and will struggle to boost profit margins.

Paladin Energy (PDN) – Recently raised capital but operations are still leaking cash as prices plummet. Outlook for uranium sector remains bleak, highlighted by failed asset sale.

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