ADVISOR WATCHLIST
Patrick Shannon
Designated Trading Representative Advisor – Equities PShannon @ burrell . com . au ( 07 ) 3006 7243
The announcement of a vaccine that is 90 % effective was announced by Pfizer on Tuesday , 10th November 2020 has rattled markets . The ASX 200 has experienced a transition from growth ( technology , BNPLs , retail ) to value ( travel , financials and oil ). Travel , banks and oil have seen double digit percentage increases whilst technology stocks have been sold down . I am keeping a keen eye over NEXTDC Limited ( NXT ) and will be happy to buy on any weakness as result of the market transitioning . NXT provides data centre outsourcing solutions , connectivity services , and infrastructure management software in Australia . NXT has been a beneficiary of COVID- 19 and people staying inside and utilising more data . The stock has been sold off has been sold off ~ 9 % in two days to $ 12.60 , from an all-time high of $ 14.10 . If the theme continues , I would be happy to pick these up if they got below $ 11.00
Shannon McShane
Nufarm Limited ( NUF ) is a major producer of crop protection products , selling into all major world markets . The company is emerging from a period of sustained headwinds , with mixed seasonal conditions , industry related supply issues and COVID . Seasonal conditions have improved into this financial year , with bumper conditions in Australasia and balanced North America trends pointing to solid conditions . Management believe the European business has reached an earnings trough , following a litany of problems since major acquisitions in 2018 . Nufarm is also commercialising its proprietary omega-3 canola oil , which is likely to add significant value .
Advisor - Gold Coast & Brisbane SMcShane @ burrell . com . au ( 07 ) 5583 7815
Shaun Minahan
CA , Associate - Senior Equities Advisor sminahan @ burrell . com . au ( 07 ) 5583 7800
Buy Downer EDI Limited ( DOW )
Downer EDI Limited is based in Sydney and operates as a global diversified services provider . It builds roads , constructs rail networks , manages power & gas networks , provides water & wastewater treatments and maintains renewable wind & solar assets . They are also involved in stadium catering , commercial laundry , engineering construction and mining engineering services .
Downer EDI stands to benefit from increased government stimulus spending over the next few years . Based on estimated FY 21 earnings , Downer EDI is trading on an earnings multiple 13.4 x and yielding 4.5 % unfranked .
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