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
Orica Limited ( ORI )
Orica is a leading global manufacturer and supplier of chemicals and explosives , primarily to the mining industry . It has operations in 50 countries across six continents . Leverage to mining exploration going forward given talk of the beginning of a new commodities cycle . Orica has an approximate 28 % share of the global commercial explosives market . It also provides resins , steel bolts , and other products for underground mining and tunnelling . Recent departure of CEO Alberto Calderon , muddy earnings outlook and tightened balance sheet metrics make this one for the patient investor who should look to the mid-term FY2022 & FY2023 earnings recovery .
Accumulate ORI at below $ 15.00 level .
Jamie Elgar
Ampol ( ALD ) beat expectations for its 1Q 2021 results with consensus price targets held around $ 30 mark . ALD is expected to benefit from improving fuel volumes as travel restrictions in Australia ease and the travel bubble starts up with New Zealand . Add to this is further improvement from the successful execution of its retail strategy . ALD shares price has at current levels in September before running to over $ 30 before it announced an off market buy back . The stock also attracted a bid just before the Covid outbreak . Buy under $ 26 .
Associate - Head of Dealing Desk jelgar @ burrell . com . au ( 07 ) 3006 7232
Michael Burrell
Associate Director Advisor - Individually Managed Portfolios mburrell @ burrell . com . au ( 07 ) 3006 7226
Given the market recovery we have been focusing some attention on the sell side . From a strategic asset allocation perspective clients should consider their cash levels given the current ASX level , and quarterly reporting in the US . Regarding cash levels , it is worth reviewing any longer dated fixed interest investments , such as hybrid securities post 2026 call dates trading above the face value of $ 100 , as there is a risk of capital loss should the long term bond rates rise . Our fixed interest specialists can assist with alternatives .
It is also worth reviewing exposure to generic ASX index funds at this time .
Despite the market recovery we still see many pockets of value . Amcor ( AMC ) still looks attractive given its more defensive revenue from packaging . Our research has a price target of $ 16.30 , happy to buy or top up at the current market price . AMC will pay around a 4.5 % dividend , has a forward PE estimate of 14.4 .
In the larger cap space Woodside ( WPL ) and CSL still look attractive . We have covered both stocks in previous Bourses , the same themes still apply .
For clients looking for more of a punt , we would be happy to discuss Healthia ( HLA ).
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