Which 5 NZX stocks do you think will have a good recovery from now?

For me

Spark - Telecoms strong cashflow arrival of 5G giving business a boost
Meridian - Power strong cashflow good renewable power generation
FBU - yeah I know bad management but with the Govt dishing out cash like candy they cannot help but get some in their pockets
CVT - had a rough few years but with all the health care stuff happening should be good. But I think they need to diversify as well.
Seeka - High debt but the Kiwifruit industry has had a good season despite CV19, they need to diversify their product line a bit as well but should benefit from technological changes in Kiwifruit sector over the next few years.

Feel free to knock me down and put up other stocks.

Quote:

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Originally Posted by Nevl

For me

Spark - Telecoms strong cashflow arrival of 5G giving business a boost
Meridian - Power strong cashflow good renewable power generation
FBU - yeah I know bad management but with the Govt dishing out cash like candy they cannot help but get some in their pockets
CVT - had a rough few years but with all the health care stuff happening should be good. But I think they need to diversify as well.
Seeka - High debt but the Kiwifruit industry has had a good season despite CV19, they need to diversify their product line a bit as well but should benefit from technological changes in Kiwifruit sector over the next few years.

Feel free to knock me down and put up other stocks.

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When people talk about “dishing out candy” or a lolly scramble it says much more about the ethics and morals of those using those phrases than it does about the government.

I think cash from the government should be based on need not greed and businesses are in the best position to determine whether they have other resources to fall back on, which is one of the criteria.
Mainfreight's decision to fully stand on its own feet and return the $10.6 million wage subsidy, rather than milk taxpayer subsidies, is refreshing.
So too, Fletcher Building's decision not to seek an extension of the wage subsidy in June even though parts of its business where revenue is down 50 per cent would qualify.
https://www.nzherald.co.nz/business/...ectid=12335946

Moka - how about not hijacking a thread straight away, Nevl proposed a simple question - which you ignored with an off topic rant.

Back to the question posed.....

I would say possibly IFT as well, utilities and the like.

Hopefully Retirement stocks which got hammered possibly from the fallout of huge numbers of Nursing Home deaths from Covid in the US & UK.

Quote:

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Originally Posted by Chinesekiwi

I would say possibly IFT as well, utilities and the like.

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Definitely IFT. Vodafone similar to Nevl's Spark reasons plus they are building two data centres in Auckland which I presume is where Microsoft's NZ cloud will be hosted from. Also, they soon will be getting capital back from TLT for further investment elsewhere.

ATM - Look to continue strong growth and as they look to a dividend in 2022 I expect we will see the price push towards $30-35

OCA - Got hammered, by a sledge hammer, at the start of CV-19 panic, has rebounded quickly to mid .80's but expect to see this push past $1 in the next month. Forsyth Barr have target of $1.08 in the next 12 months, I think that will be blitzed by August and we will see $1.50 by end of 2020. It is the best deal on the NZX currently and has a huge future. I would be unloading on this. (Disclaimer: I am not a financial advisor...Or am I?)

FPH - I expect this will come back slightly as CV-19 ramps down and some reality is put into its price. Its not all it (at its current price) is cracked up to be.

BLT - Little underdog of the NZX - based on its cash flow it should actually be up towards .20 - .30 which puts in anywhere from 50% - 70% undervalued. It just has an inability to report and announce properly. Focuses too much on the numbers it has produced and likes to celebrate with balloons for that, instead of also imparting some wisdom on what its forward guidance is - I suspect it is just so unsure of its own strategy and how they will maintain growth that they are to scared to put out guidance and then look sill when they have to pull back. There is some argument though that if they can really put their probiotic skincare range on the market that this could push them towards the next ATM, on a small scale however.

TLT - this one is like a bucket without a bottom at the moment in terms of cash. Well placed to capitalise on its full wallet position and dominate the renewable energy market.

AIR - If you have taken out a second mortgage to unload into this beauty, then be prepared to be broke. Wouldn't touch this until end of FY2022 with a pole, even if that pole had a 2nd, 3rd and 4th pole tied to it. So much delusion built into this at the moment. Wait for it to come crashing down on reporting or at the next market crash. Very sad to see the old girl struggling but that is the nature of their business.

Gtk
plx
ift
ebo
mnf

Don’t know if recovery is the right word, but I think PLX is placed for strong growth.

I'm not sure if this is a simple question to answer. For my part, I expect the recovery to be uneven. Some sectors will recover sooner than others and that timing makes balance sheet strength critically important – companies that need to raise capital should, IMHO, be avoided for the simple reason that placing shares at a discount to market effectively screws the existing shareholders.

The two biggest questions which I have no idea how to answer are (i) when will the border reopen to allow enough tourists/visitors/students in without having to suck up 2 weeks of quarantine and (ii) what extra taxes we will have cough up in the not too distant future.

On my potential "buy" list at the moment (in no particular order) are:

FRE
CDI
MET

I'm wary about the power companies – the risk of Tiwi being **** down + lower consumption as we head into a recession but CEN would probably be my fist choice at the moment

The port companies may do okay on the back of exports but are all quite expensive. I hold MMH.

Quality companies like ATM, EBO, MFT, POT, FPH are all very expensive ... but then they always have been.

I'm not convinced the prices of the major property companies yet reflect the reality of reduced rents on valuations (even allowing for lower funding costs) and, apart for CDI, am giving them a miss at the moment.

I blow hot and cold on FBU.

I'm still trawling though the smaller cap space.

I'm also on my second glass of wine for the evening ...

No its not a simple question, just one that I thought might bring up new ideas for others and of course myself. Thanks for giving your input.