Icarus Signal New Entries For Today

This story features MCMILLAN SHAKESPEARE LIMITED, and other companies. For more info SHARE ANALYSIS: MMS

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Accountancy software developer Reckon ((RKN)) has regained the attention of investors amidst doom and gloom for retail-oriented industrials and sluggish progress for China-leveraged base materials and energy stocks. Shares in Reckon touched price levels above $2.70 in May -triggering an Icarus Signal- and they quickly retreated to $2.20 since. In recent sessions Reckon shares are ostensibly back in favour, hot on the heels of the company announcing it now has launched a cloud-solution for users of its software and cloud, as we all know, is the latest "must have" in technology land.

Reckon shares approached consensus target on Thursday, got knocked back on Friday, but are making a renewed effort to go for the target in a rather subdued market on Monday. The shares are not cheap, trading on 17.7x times projected earnings per share for this year and on 15.6x times projected EPS for FY12, but the same can be said about McMillan Shakespeare ((MMS)). Clearly, investors do not mind paying up for high quality, resilient growth in a market that contains lots of shrapnel and bomb shells from the Big Consumer Fallout in Australia.

Note shares in McMillan Shakespeare are finding the going tougher of late, despite still being at respectable distant from the consensus target and -equally important- on lower multiples and higher implied dividend yields than Reckon shares.

Rubber glove and condom manufacturer Ansell ((ANN)) equally got knocked back on Friday. The list of stocks trading in the vicinity of consensus target now counts eight names with perpetual yoyos Treasury Wine Estates ((TWE)) and Austbrokers ((AUB)) making their re-entrance.

The list of stocks trading above target contains 24 names after the departure of Treasure Wines and Reckon.

Horizon Oil ((HZN)) makes its presence known in the Bottom 50.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 TWE $ 3.45 $ 3.47 0.49% 2 AUB $ 6.45 $ 6.64 2.91%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%)

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 HZN $ 0.32 $ 0.48 49.38%

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