ADVISOR WATCHLIST
The aim of this watch-list is to provide our clients with an insight as to what some of our Advisors are looking at in the marketplace . Each of the advisors has been asked to nominate at least one stock that they currently have on their watch-list . The securities mentioned below reflect the particular advisor ’ s personal view on the security and does not take account of the appropriateness of the recommendation for any particular client . Accordingly it is recommended that clients seek advice from his or her Burrell Stockbroking advisor on the suitability of the security to their investment portfolio .
Dylan Katzer
Associate Director Senior Portfolio Manager Domestic & International Equities dkatzer @ burrell . com . au ( 07 ) 3006 7228
TPG Telecom ( TPG )
Tailwinds in the telecom sector continue to build as competition in mobile is becoming more rational . Prices are rising , and consumers are getting more value for slightly higher prices , unlike in the past few years when consumers were getting more and more , while paying less and less . The sector should benefit from the 4G to 5G transition as revenue per user increases and the cost per data provided reduces . TPG has suffered significant earnings damage in the past two years , due to migration of fixed-line ADSL subscribers to the NBN and also a decline in voice earnings . There are now minimal ADSL subscribers and voice businesses left to lose . The mobile unit is set to benefit from easing competitive intensity and recovery from various COVID-19 impacts . Other potential tailwinds include : synergies from the recent Vodafone merger ; opportunities from using 4G and 5Gpowered fixed wireless to cherry-pick NBN customers back to TPG ’ s own network ; upside from recent regional network sharing deal with Telstra .
Accumulate TPG below $ 6.50 level .
Michael Bates
Thinking defensive lately ? The ASX has only 7 equities under the index industry label of Aerospace and Defence . With increased focus in Australia ’ s security moving forward , increased government spending will follow . A short list follows : Austal ( ASB ) – ship building with US contracts , Electro Optic Systems ( EOS ) – fire control systems and laser satellite tracking ., Droneshield ( DRO ) – drone countermeasures , Orbital Corporation ( OEC ) – unmanned aerial propulsion systems , PTB Group ( PTB ) – general aircraft maintenance and parts , Xtex ( XTE ) – security products and services to military , govt agencies , space and commercial sectors , Quickstep Holdings ( QHL ) – producer of aero-grade advanced composites to defence , aerospace and commercial sector .
Senior Investment Advisor mbates @ burrell . com . au ( 07 ) 3006 7208
Robert Chan
MotorCycle Holdings Limited ( MTO ) owns and operates motorcycle dealerships in Australia . The company is involved in the sale of new motorcycles , used motorcycles , accessories and parts , and mechanical protection plan contracts ; wholesaling and retailing of motorcycle accessories ; and financing and insurance services for motorcycle purchases through third-party sources , as well as servicing and repair of motorcycles . The company operates 41 retail locations in Queensland , NSW , Vic , and the ACT . With the high price of oil , I see the demand for Motorcycle sales to remain strong . MTO is currently trading at $ 2.85 and on a value PE ratio of 7 and a 7.5 % yield .
Director – Wealth Management RChan @ burrell . com . au ( 07 ) 3006 7220
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