ADVISOR WATCHLIST
Tony Killer
Senior Investment Advisor – Equities tkiller @ burrell . com . au ( 07 ) 4153 4499
Taking profits and lightening some holdings in the resource stocks that have risen dramatically as a result of the Ukraine situation and the sanctions on Russia should be top of mind with all clients at present . I am not advocating the complete sale as some of these companies are making super profits and paying extraordinary dividends , however the price of oil / gas / coal / iron ore / base metals and LNG are at levels that are not sustainable on a medium or long term basis . Obviously be aware of your own tax positions in doing so , but taking say 20 % off the table will most likely leave many with still more value than what was owned at Christmas time . We could see further rises in this sector yet and dividends at the end of June will be nice , so it ’ s not an easy call , but one you should be considering .
Finding value in this market is difficult as there are many moving parts to the economy due to Covid impacts , price rises , availability of product etc , however I think we need to look beyond the short term and consider the longer term needs . As a result I find companies like Boral ( BLD ) for plasterboard , building products and roads , Costa Group ( CGC ) for diversified food production , Tassal Group ( TGR ) for salmon and prawns and Inghams ( ING ) for chicken products attractive at these levels . Supply interruptions , rising operational costs etc will work their way through the businesses and we as consumers will end up paying more for these products , but the demand for their products and services will remain . When we see a fall in feed costs , oil / transport and other operational expenses these companies will all be in position to benefit .
With the Nasdaq index continuing its recovery for the tech sector in the USA , it is also an opportune time to revisit some of the former higher flying Aussie tech / medical stocks that have fallen from grace as investors exited the sector . Many are excellent businesses that were significantly overvalued by a market happy to pay silly multiples of earnings , however I think some of these multiples are now below fair value for these businesses . Those that I believe are worth a second look are Nanosonics ( NAN ), Appen ( APX ), Ansell ( ANN ), Fisher & Paykel ( FPH ), Altium ( ALU ) and Integral Diagnostics ( IDX ).
Patrick Shannon
CSL Limited ( CSL . XW ) researches , develops , manufactures , markets and distributes biopharmaceutical products in Australia and internationally . Sales were stagnant for the years of COVID ( 2020-21 ) with elective surgeries being delayed and weaker plasma collection . CSL recently completed the acquisition of Vifor Pharma which will complement CSL ’ s existing therapeutic focus areas ( Haematology , Thrombosis , Cardiovascular ). I see upside in CSL over the next two years with tailwinds of the Vifor acquisition and the world reopening . The 2022 full year results to be the catalyst in positive stock price movement for long term holders . I believe CSL is attractive at the current prices of $ 260-270.00 .
Designated Trading Representative Advisor – Equities PShannon @ burrell . com . au ( 07 ) 3006 7243
Page 11 of 22