Fast Money Aussie Style
G’day mate. How they hangin’? Side by side for comfort or back to back for speed?
We went skiing last week, while the weather wasn’t great we had a wonderful time. The trip started with much excitement as we stumbled upon Glenrowan, the tiny town where the famous Australian bush ranger Ned Kelly was shot and captured. My son is studying Ned Kelly so we swung off the highway and emersed ourselves in Kellyland for a while.
Here’s a quick update on some Aussie stocks I’ve had a gander at.
Biota Holdings Limited (BTA)
“Hold on, hold on, hold on
The only way is up, baby
For you and me now, baby”
Despite being a five bagger in the nine months since I first wrote about Biota, the risk/reward picture is almost as good today as it was back then. The results of the PIII LANI trial should be announced this month. [They have been - read more.] Neither good nor bad results actually changes my intrinsic value all that much, but I’m sure it will affect the share price. Biota remains considerably undervalued.
Hunter Hall International Limited (HHL)
Up around 30% since I took my first look. This ethical find manager should release its preliminary final report and dividend announcement around the end of this month. Analysts consensus earnings for 2010 are still a ludicrously low 27.4cents, they must be smoking some wicked weed to come up with those estimates. HHL remains below my fair value estimate; however, since first posting about this company and buying a small position I’ve come to realise how thinly traded the stock is.
Telstra Corporation Limited (TLS)
Telstra annouces their annual results this Thursday the 13th August and goes ex-dividend on Monday 24th August. At the last trasded price of $3.57 the half yearly dividend represents an attractive yield of 7.8%. Telstra continues to be a core holding in our portfolios for the yield alone. Its brand dominance and customer service both continue to improve. Contrary to Crammer’s buy or sell advice I’m happy to hold Telstra for the yield, until I find better opportunities for the funds.
CSL Limited (CSL)
CSL did drop below my $30 pay attention target, but failed to drop anywhere near my $26 buy target. I still see no need to buy CSL at current prices, now $31.60. While investors may get decent returns from this point, there is not enough margin of safety for me. CSL is up around 4% since I first mention it in June and siad wait for a better price.
Remember these are not recommendations and I either directly or indirectly own stakes in most of the companies I write about.
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