Buy Hold Sell: 5 High Flyers at a Discount

Buy Hold Sell

Downgrades can be a double-edged sword; they can ravage your existing positions, but they can provide attractive entry points for stocks on the watchlist. The A2 Milk Company fell nearly 30% following its earnings update, but it’s still up ~200% over the last year; is now the time to jump on the bandwagon? JB Hi-Fi has defied expectations of an e-commerce apocalypse, but can its PE recover following its troubles with the Good Guys acquisition? For Smart Parking, the fall has been severe, down 50% on the back of problems in its UK business, so is this a buying opportunity? Dean Fergie from Cyan Investment Management and Ben Clark from TMS Capital give their view on each of these stocks, as well as sharing one of their own, in this week’s Buy Hold Sell.

Key points:

  • A2 Milk's profitability is being masked by their aggressive expansions plans, but it might be 'priced for perfection'.
  • JB Hi-Fi has a great brand and a low cost operation model; can it withstand the onslaught of online competition?
  • Smart Parking recent lost two key managers from its UK business, where 85% of their revenues come from. Can it turn around its fortunes?
  • Our two panelists each bring along a high-flying stock that's taken a recent tumble.

In case you missed it...

Catch up on the previous two episodes with our panelists:


Buy Hold Sell

Buy Hold Sell is a weekly video series exclusively available through Livewire. In each episode two fund managers are asked for their views 'Buy, Hold or Sell' on five ASX listed companies. The format is meant to be short, sharp, insightful and...

Expertise

buy hold sell ASX:IVC ASX:JBH ASX:A2M ASX:SPZ ASX:EXP

Comments

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Melville Leslie

what does FMCG refer to when used by Dean talking about A2M,please.

Medium screen shot 2017 02 28 at 8.02.18 pm

Patrick Poke

Hi Melville, FMCG is short for Fast Moving Consumer Goods

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Malcolm Mortimer Clark

You should have been a stand up comedian Matthew

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Andrew Schilg

Take a pandadole, everything will be ok. Lol, I’m in tears

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