Buy Hold Sell: Beaten Up Big Caps

Buy Hold Sell

What do Brexit, the NBN, and Star Wars all have in common? They’ve all caused significant falls in the prices of certain ASX stocks. Brexit has weighed on the share price of multinational fund manager, Henderson Group; the NBN and competition in the telcos sector have harmed the stock price of TPG Telecom; while the less popular Rogue One hurt ticket sales when compared with The Force Awakens for Event Hospitality & Entertainment. So, do these price falls offer buying opportunities? We asked Geoff Wilson from Wilson Asset Management, Steve Johnson from Forager Funds, and John Murray from Perennial Value Management for their thoughts for Buy Hold Sell Live. They also share one ‘bruised and battered’ stock that’s caught their attention.

Key points:

  • Henderson Group: Will be one of the world’s biggest asset managers post-merge, good management, and looks cheap. The switch to passive management is a major headwind.
  • TPG Telecom: Strong management and a great balance sheet, but faces challenges with the introduction of the NBN.
  • Event Hospitality and Entertainment: Not cheap at a multiple of around 18x, price inflation at the cinemas is likely over, but benefitting from tourism and entertainment spending tailwinds.
  • Watch the full video to find out which ‘battered and bruised’ stocks the panelists identified as ‘Buys’.

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Disclaimer: The information contained in this presentation is general in nature and should not be relied upon. Before making any investment or planning decisions, you should consult a licensed professional who can advise you whether your decision is appropriate for you. Contributors to this show may have commercial or financial interests in the companies mentioned.


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