The new favourite stocks
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Momentum is a powerful force. Peter Stoop
Analyst recommendations have the power to move share prices. An upgrade from a “sell” recommendation to a “hold” can translate into a surge in the asking price of a stock. A move the other way can be just as dire.
The analysts’ opinions are just that – opinions – but in addition to their undeniable effect on share prices, they are also a useful benchmark for how “the street” views the value and prospects of a particular listed company. And understanding the momentum of a stock can provide a valuable insight into what kind of returns you might be able to expect in the coming months.
In the table below you can see the biggest changes in consensus analyst recommendations over the past three months, according to Bloomberg. We’ve also included the movements over a week, four weeks and six months for added context, and restricted the list to companies with at least three analysts covering them.
| STOCKS MOVING UP THE ANALYST CHARTS… | ||||||||
| Company name | Code | Industry | Consensus recomm’n* |
1-week change | 4-wk change | 3-month change | 6-month change | No. of analyst recomm’ns |
| WDS | WDS | Building construction | 4.7 | 0.00 | 0.00 | 2.00 | 1.00 | 6 |
| MORTGAGE CHOICE | MOC | Mortgage broker | 4.5 | 0.00 | 0.17 | 1.50 | 1.50 | 4 |
| IPROPERTY GROUP | IPP | Online real estate advertising | 4.3 | 0.00 | 0.00 | 1.33 | 0.33 | 3 |
| GROWTHPOINT PROPERTY | GOZ | REITS – diversified | 2.3 | 0.00 | 0.00 | 1.33 | 1.33 | 3 |
| GALAXY RESOURCES | GXY | Diversified minerals | 5.0 | 0.00 | 0.00 | 1.33 | 2.00 | 3 |
| MCPHERSON'S | MCP | Diversified manufacturing | 5.0 | 0.00 | 0.67 | 1.33 | 1.33 | 3 |
| BLACKMORES | BKL | Vitamins & nutrition | 4.2 | 0.00 | 0.20 | 0.87 | 0.00 | 5 |
| AUSTIN ENGINEERING | ANG | Metal processors | 4.7 | 0.00 | 0.00 | 0.86 | 0.46 | 7 |
| CLOUGH | CLO | Heavy construction | 4.5 | 0.00 | 0.30 | 0.70 | 1.10 | 4 |
| ASPEN GROUP | APZ | REITS – diversified | 2.3 | 0.00 | 0.00 | 0.67 | -0.67 | 3 |
| BILLABONG INT’L | BBG | Apparel | 3.2 | 0.00 | -0.01 | 0.65 | 0.84 | 15 |
| BT INVESTMENT | BTT | Asset mgt | 3.8 | 0.00 | 0.50 | 0.63 | 0.75 | 8 |
| HILLGROVE RESOURCES | HGO | Diversified minerals | 4.4 | 0.00 | 0.00 | 0.60 | -0.10 | 5 |
| BLACKTHORN RESOURCES | BTR | Metals – diversified | 4.8 | 0.00 | 0.00 | 0.58 | -0.25 | 8 |
| MIRABELA NICKEL | MBN | Metals – diversified | 3.9 | 0.27 | 0.55 | 0.55 | 0.49 | 15 |
| CSG | CSV | Computer services | 3.0 | 0.00 | 0.00 | 0.50 | 1.00 | 4 |
| VILLAGE ROADSHOW | VRL | Cinemas | 4.5 | 0.00 | 0.00 | 0.50 | 0.75 | 4 |
| RCR TOMLINSON | RCR | Engineering/R&D services | 4.7 | 0.00 | -0.04 | 0.46 | 0.00 | 7 |
| PAPILLON RESOURCES | PIR | Gold mining | 4.3 | 0.00 | 0.00 | 0.45 | 0.58 | 8 |
| GOODMAN FIELDER | GFF | Food – misc | 3.4 | 0.00 | 0.14 | 0.43 | 0.60 | 14 |
| … AND STOCKS MOVING DOWN | ||||||||
| Company name | Code | Industry | Consensus recomm’n* | 1-week change | 4-wk change | 3-month change | 6-month change | No. of analyst recomm’ns |
| UXC | UXC | Data processing/mgmt | 3.5 | 0.00 | 0.00 | -1.00 | -1.50 | 4 |
| GRANGE RESOURCES | GRR | Metal – iron | 3.0 | 0.00 | 0.00 | -1.00 | -2.00 | 6 |
| QBE INSURANCE | QBE | Insurance | 2.6 | -0.71 | -0.71 | -1.00 | -0.57 | 14 |
| AUSTAL | ASB | Shipbuilding | 2.3 | 0.00 | 0.00 | -1.07 | -1.07 | 3 |
| AUST’N INFRASTRUCTURE FUND | AIX | Infrastructure investment | 3.3 | 0.00 | 0.00 | -1.08 | -1.25 | 8 |
| NEW HOPE CORPORATION | NHC | Coal | 3.3 | 0.00 | -0.19 | -1.08 | -0.86 | 8 |
| SARACEN MINERAL HOLDINGS | SAR | Gold mining | 3.2 | 0.00 | -0.30 | -1.13 | -1.23 | 5 |
| M2 TELECOMM | MTU | Telecom services | 3.6 | 0.00 | -0.07 | -1.16 | -0.87 | 9 |
| SMS MANAGEMENT | SMX | E-services/consulting | 3.2 | 0.00 | -0.50 | -1.17 | -1.33 | 12 |
| GINDALBIE METALS | GBG | Metal – iron | 2.5 | 0.00 | -0.18 | -1.18 | -1.64 | 11 |
| LYNAS CORPORATION | LYC | Metal – diversified | 2.8 | 0.00 | -0.46 | -1.23 | -1.08 | 13 |
| CROMWELL PROPERTY | CMW | REITS – diversified | 2.5 | 0.00 | -0.90 | -1.30 | -1.30 | 4 |
| CAPE LAMBERT RESOURCES | CFE | Diversified minerals | 3.3 | 0.00 | 0.83 | -1.33 | -0.33 | 3 |
| KINGSROSE MINING | KRM | Gold mining | 3.7 | 0.00 | -0.67 | -1.33 | -1.33 | 3 |
| SIRTEX MEDICAL | SRX | Therapeutics | 3.7 | 0.00 | 0.00 | -1.33 | -1.33 | 3 |
| BASE RESOURCES | BSE | Metal – iron | 3.7 | -0.33 | -1.33 | -1.33 | -1.00 | 6 |
| NORFOLK GROUP | NFK | Electric products – misc | 3.0 | 0.00 | 0.00 | -1.50 | -2.00 | 4 |
| NORTHERN STAR RESOURCES | NST | Gold mining | 3.5 | 0.00 | -0.50 | -1.50 | -1.50 | 4 |
| FKP PROPERTY GROUP | FKP | Real estate | 2.6 | 0.00 | -0.07 | -1.83 | -1.83 | 5 |
| MACMAHON HOLDINGS | MAH | Engineering/R&D services | 2.3 | 0.08 | 0.02 | -2.21 | -2.37 | 12 |
| Data source: Bloomberg, as at Wednesday, November 14, 2012. *Where 5 is a ‘buy’, 3 is a ‘hold’, and 1 is a ‘sell’. | ||||||||
Patrick Commins Smart Investor
