3 aggressive plays for November
1. QBE Insurance $9.99
A story we have discussed for a while but now we are a little more cashed up we are watching this one closely. Simply QBE benefits significantly from higher US interest rates and a lower $A, both of which we foresee in years ahead.
QBE is a turnaround story at best having dropped the ball on too many occasions since the GFC, it's trading 30% below its panic GFC low while the ASX200 has rallied over 70% even after the last year's weakness. A good yardstick is companies take 4-years to turn themselves around hence QBE is clearly overdue!
We believe investors who buy QBE under $10 have a strong possibility of enjoying a 50% return in the coming few years.
QBE Insurance (QBE) Monthly Chart
2 TPG Telecom (TPM) $7.56
TPM has been smacked well over 40% in the last few months as investors dumped their overweight / too comfortable holdings in the Telco. The selling appears to have lost momentum and the stock popped 4.7% yesterday.
This is one for the aggressive trader but we believe you can buy TPM under $7.50 targeting over $8.10 with stops under $7.20 i.e. solid risk 2-1 risk reward.
TPG Telecom (TPM) Weekly Chart
3 REA Group (REA) $51.14
REA Group has been sold off over 20% along with many of the high valuation stocks over recent months. REA is not cheap on a P/E basis compared to the market but we believe it has both the pricing power and growth to justify these levels. Worth noting, REA holds its AGM on Friday and the lower risk strategy would be to wait for this to play out.
We are buyers ~$51 as a fairly aggressive investment but ideally would want to average ~$40, traders should exit on a break below $48.
REA Group (REA) Monthly Chart
We deliberately selected 3 stocks which we would / may play in a different manner:
1. QBE is an aggressive but longer term investment. We are buyers under $10, eventually targeting $15. Stops can be run under $9.40.
2. We like TPM as an aggressive trade under $7.50 targeting $8.10 with stops under $7.20.
3. We like REA today as an aggressive entry into a medium /longer term investment or trade. We are buyers ~$51, longer-term investors should average ~$40 but traders should exit under $48.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
3 stocks mentioned
Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...
No areas of expertise
Please sign in to comment on this wire.