Recovery stories
11.26 am Another modest gain as the market rises 16 points to 5737. My book is mixed although BTT has done well with a 3% gain.
I've been thinking about the potential for finding big movers in the large cap stocks and with the economy and market in the doldrums the best bet is probably in the stocks with turnaround potential.
The first one is TPM, TPG Telecom, which has reported this morning. Interestingly NPAT was 9% higher, a little more after adjustments, which is not what you would expect from looking at the weekly chart. FY18 profit estimates have been lowered slightly but given the NBN headwinds are already factored in, the quality of management is high and there are a number of potential growth areas including fibre to the building and Singapore mobile, this stock definitely has turnaround potential. The other catalyst could be technology superseding the NBN so that margins can start to improve again. There is some talk that mobile broadband will prove more attractive to customers than the NBN.
The other one I've been thinking about is STO. Once again, very good management, possibly for the first time in the history of this company and a beaten down share price. There are good assets alongside a lot of debt but the company is assuming lower for longer oil prices and getting breakeven costs down. In addition there are domestic opportunities because of the power fiasco. This could be a company following the Fortescue playbook. There is also an option market in this stock, it could be interesting to buy something long dated though I'd prefer to see a weekly consolidation to provide an entry.
3.32 pm OSH is testing my patience with a sector worst performance of down 7 versus flat elsewhere. It's sitting above the breakout well enough.
I have a new potential long in AGI. Slightly annoying because I haven't bought yet and it's thinly traded, just gapped up 5 cents.
4.27 pm Had to pay 269 on the match for AGI but often a good sign if a stock finishes well bid. Otherwise the market drifted lower. I've almost lost interest in the action of the broader market, just looking at my positions.
I've been thinking about the potential for finding big movers in the large cap stocks and with the economy and market in the doldrums the best bet is probably in the stocks with turnaround potential.
The first one is TPM, TPG Telecom, which has reported this morning. Interestingly NPAT was 9% higher, a little more after adjustments, which is not what you would expect from looking at the weekly chart. FY18 profit estimates have been lowered slightly but given the NBN headwinds are already factored in, the quality of management is high and there are a number of potential growth areas including fibre to the building and Singapore mobile, this stock definitely has turnaround potential. The other catalyst could be technology superseding the NBN so that margins can start to improve again. There is some talk that mobile broadband will prove more attractive to customers than the NBN.
3.32 pm OSH is testing my patience with a sector worst performance of down 7 versus flat elsewhere. It's sitting above the breakout well enough.
I have a new potential long in AGI. Slightly annoying because I haven't bought yet and it's thinly traded, just gapped up 5 cents.
4.27 pm Had to pay 269 on the match for AGI but often a good sign if a stock finishes well bid. Otherwise the market drifted lower. I've almost lost interest in the action of the broader market, just looking at my positions.
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