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
Senior Portfolio Manager Domestic & International Equities dkatzer @ burrell . com . au ( 07 ) 3006 7228
News Corporation ( NWS )
News Corp has looked to move from the traditional sunset industry of newspaper publishing to more digital facing platforms . A strong suite of online assets , including digital real estate ( REA & Move holdings ), books ( Harper Collins ), subscription video services ( Foxtel & Kayo ) & Dow Jones ( Wall Street Journal ) all form part of the media conglomerate . Strong EBITDA generation , a solid balance sheet with cash & liquids at close to AUD $ 2 Billion and first quarter group results that outpaced estimates due to Dow Jones , Books & Move outperformance sees the company in good operational shape . Traditionally not a high dividend payer , the company is more of an asset play where the market is currently undervaluing the underlying assets . Attractive at current prices .
Accumulate NWS at below $ 23.50 level .
Jamie Elgar
The announcement of a Covid vaccine we have seen the rotation from high growth sectors such as Tech and Retail into sectors that have lagged the recovery such as Banks and Energy . We could see these sectors sell off again before the Vaccine is widely distributed which is an opportunity to add to current holdings . Buy NAB , ANZ below $ 20 , Beach Energy and Santos for Energy sector recovery . NXTDC on further tech sector weakness .
Associate - Head of Dealing Desk jelgar @ burrell . com . au ( 07 ) 3006 7232
Michael Bates
Inghams Group ( ING ) has reported first quarter results ( up 7.5 % on fourth qtr .) to the market and they have been well received generally . Of interest is their belief that feed costs ( significant cost driver ) will reduce in 2 nd half 2021 .
Chicken continues to be a major substitute for beef and demand is reasonably predictable with inventory levels being able to be managed to meet expected demand . As such we are forecasting a yield of 5 % or better over the next year , with a fair value of $ 3.60
Senior Investment Advisor mbates @ burrell . com . au ( 07 ) 3006 7208
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