AUO austral coal limited

sunday telegraph-"share in a strong market"

  1. 174 Posts.
    From:
    http://www.sundaytelegraph.news.com.au/story/0,9353,7809462-28782,00.html

    These stocks get a mention:
    CCL, AUO, WES, FOA, ANZ, BEN, ALN, BHP, MBL, TOL


    Share in a strong market
    By ANTHONY BLACK
    November 9, 2003

    COCA-COLA Amatil, Foodland and the ANZ Bank are among the companies with the best growth potential, according to some of Australia's leading analysts.

    The Australian share market has put on 22 per cent since mid-March, but the next 12 months could see even more growth.

    Market analysts polled by The Sunday Telegraph identified a group of relatively low-risk stocks that they believed would rise with the market.

    Richard Morrow, director of EL & C Baillieu, said movements in the economy were a good guide to the share market.

    "Interest-rate rises are a symptom of an economy that is becoming stronger," Mr Morrow said.

    "The trick is to choose the companies that profit from a rising interest rate and a stronger Aussie dollar environment, because some companies do better than others.

    "I see the next 18 months to two years as being good for the share market."

    Mr Morrow tipped energy company Alinta, which has expanded its asset base by more than 100 per cent after buying United Energy and Multinet.

    "The Alinta board are hard-nosed managers, and they will cut enormous costs out of these businesses," he said. Mr Morrow said Bendigo Bank was expected to generate earnings between 20 and 30 per cent a year for the next three years because of its community-bank strategy and branch expansions.

    "Compare that with the big banks, which are growing at 10 per cent or slower," he said.

    Strong growth in soft drink, pure water and fruit juice sales would reward Coca Cola Amatil's shareholders, Mr Morrow said.

    Coke had also pursued an aggressive campaign with new releases such as vanilla- and cherry-flavoured Coke, with ads featuring pop star Sophie Monk.

    Foodland stocks were trading at $8.50 three years ago, but closed at $19.30 on Friday.

    "Foodland is significantly undervalued compared with Woolworths and Coles Myer," Shaw Stockbroking senior analyst Scott Marsh- all said.

    "We have a share-price target of $21 in 12 months' time."

    Mr Marshall said Macquarie Bank was undervalued, and he expected the stock to draw closer to $40 in the next 12 months. It closed at $34.35 on Friday.

    Joseph Doyle, of Lands Kirwan Tong, said he expected BHP Billiton's share price to rise on the back of overseas growth projects involving petroleum, copper and aluminium.

    "BHP remains our preferred big-market resource stock," Mr Doyle said.

    Transport and logistics group Toll Holdings had the balance sheet to lift its four per cent share of the $54 billion-a-year domestic freight and logistics market, he said.

    Stefan Whiting, of ABN AMRO Morgans, said there was plenty of share growth left in ANZ.

    "In our view, ANZ's acquisition of the National Bank of New Zealand has delivered the company an improved medium-term earnings profile," he said.

    Michael Heffernan, of F. W. Holst, said Austral Coal's higher share price would come from significant net profit growth flowing from expanding operations at the company's Tahmoor mine, in southern NSW.

    "This is a growth stock that carries more risk than, say, a Coles Myer or a BHP," Mr Heffernan said.

    He said Wesfarmers, a huge, diversified industrial stock, would benefit from a stronger economy, which should boost the profitability of its Bunnings hardware operations.



    The Sunday Telegraph


 
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