Investing advice for stocks and shares.
Share to buy – APN Outdoor Media (APO)
The evolution of Billboards from static to digital has presented significant growth opportunities for APO.
The company, since IPO (Nov 2014), has secured both existing Static Billboards as well as development options to develop Digital Billboards.
Given the ability to modify advertising on-demand using sophisticated yield management techniques for digital formats, the potential revenue uplift is significant.
This can be observed by recent revenue trends whereby revenues have far exceeded the company's and market's expectation.
Given the scalability of digital formats, this translates strongly for profitability.
At their most recent update, the company has also upgraded guidance due to acquisitions, increased market share and an increase in penetration of digital formats.
The company also confirmed the renewal and expansion of key Airport related contracts, in particular with Sydney Airport.
Share to buy – NIB Holdings Limited (NHF)
- Market cap: $1.48 Billion
- Recent share price: $3.38
- Cash/debt: $58.81 million/$63.89Million
- Trailing P/E: 19.54
NIB health funds is one of Australia’s largest health insurers, providing health and medical cover to more than 1.1 million Australian and New Zealand residents
Private Health insurers are a segment of the market worth watching over the coming 12 months.
Both Medibank Private and NIB have become increasingly vocal about the need to improve efficiencies in the healthcare system and to put a lid on the spiralling cost of care.
With federal reviews into private health insurance and the Medicare Benefits Schedule, among other parts of the health system, there could be significant changes in fortune for the insurers who pay medical bills.
Throughout 2015, NIB shares have been volatile after rising to nearly $3.90 in March before falling to a low of $3 in October.
However, consistent profit and dividend growth has been a regular feature from NIB in recent years helping the company’s share price lift 10% for FY 15/16.
Share to buy – Macquarie Group (MQG)
Activity trends for MQG were positive in the recent quarter and the group should benefit from a medium-term positive earnings upgrade cycle. Optimism about MQG’s upcoming results has been gaining momentum of late, with the investment bank likely to benefit from further growth in FUM, volatility in financial markets and a lower AUDUSD. MQG will report full-year earnings on May 8, with consensus estimates suggesting net profit will come in at $1.51 billion. We wanted to position ourselves appropriately ahead of the announcement, hence our recent buy recommendation. The technical evidence is also strong, with a strong uptrend in place coupled with a recent retest and confirmation of a key round number - $80 – as support. With everything lining up fundamentally and technically, we wouldn’t be surprised to see a move towards $90. Read more tips on Blue Chip stocks on the ASX.
Share to buy – Toll Holdings Ltd
Toll Holdings (TOL) will sell five underperforming businesses, estimated to raise around $100m. We hail this as an improvement for operations and we’re now more confident the company can achieve its potential. Toll has an under geared balance sheet and as there is no need to reduce debt. As such, we suspect that there could be a capital return on the top of monetising the company's Singapore oil & gas supply base. On the technical front, TOL is displaying all the characteristics we would want to see. We have a solid bullish structure place, with the shorter-term EMAs crossed higher and the price action above the longer-term EMA filter, which is positive. Momentum is strong and amid an environment where yield plays are attractive, Toll Holdings fits the bills and should press higher. We’re targeting a move towards $6.80.
VIEW SHARE market recommendations BY CATEGORY
Access our investment insights free
Not understanding the financials of even big blue chips can cost you precious income such as when Telstra reduced their dividends.
This is why our hugely popular Income report has become a must read report for all income investors
Download the Income Report for free to get the top ASX Dividend Stock Recommendations for 2018.
We’re here to help
Need to speak to someone about companies or investing?
Our knowledgeable team is on hand to assist