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
Jamie Elgar
South32 Limited ( S32 )
Spun out of BHP in 2015 , South32 is one of the few global mid-tier diversified miners . Commodity exposures include alumina , aluminium , manganese ore , manganese alloys , coal ( divesting ), nickel , lead , zinc & silver . Led by Graham Kerr , management has been very fiscally astute over the years , returning US $ 1.88B to shareholders by way of buybacks & dividends . First quarter results were positive with net cash increasing by US $ 242M to US $ 517M and USD $ 90M returned to shareholders via the onmarket buyback during the march quarter . YTD production records at Brazil Alumina & Australia Manganese and raised production guidance by 10 % at Cannington . Strategy going forward is to reshape the portfolio for a low carbon future starting with the divestment of South African Energy Coal completed 1 st June 2021 although payments to continue to the buyer of this business going forward . Exited lower margin manganese alloy smelting with divestment of TEMCO and metalloys being placed on care and maintenance . Growth options going forward include development studies and regional exploration at high quality base metals projects ( Hermosa and Ambler Metals ) along with investing in more than 20 exploration partnerships and projects targeting base metals .
Accumulate S32 at below $ 3.15 level .
Worley Limited ( WOR ) released a good market update this week which saw the share price rise to $ 12 . The company has increased its revenue from renewable projects and given the shift towards renewables this is likely to grow . WOR has not participated in the latest market run and is well placed to see a share price rerating if more evidence emerges of revenue pick up from delayed projects now starting . The stock has risen sharply in the last few days but is a buy at $ 11 or below .
Associate - Head of Dealing Desk jelgar @ burrell . com . au ( 07 ) 3006 7232
Robert Chan
Magellan Financial Group ( MFG ) the head Investment Management Business which should not to be confused with their Listed Investment Trust Magellan Global Fund ( MGF ) still looks good value between $ 45.00 to $ 50.00 . The MFG price has weakened over the Financial year due to a lack of performance fees being received as their main managed funds have been underperforming their comparative indexes . Historically the fund manager has outperformed their and we are still seeing good inflows from investors with Funds Under Management increasing from $ 100 billion in December 2020 to $ 110 billion at the end of April 2021 . I would expect a return to outperformance of the Magellan suite of funds and performance fees will reflect in the price in the future .
Director – Wealth Management RChan @ burrell . com . au ( 07 ) 3006 7220
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