Treasure Chest: Selected Oz Equities For 2012

This story features NATIONAL AUSTRALIA BANK LIMITED, and other companies. For more info SHARE ANALYSIS: NAB

By Rudi Filapek-Vandyck

What?

As reported last week, quant analysts at Citi have selected their "lucky few" for the year 2012; stocks in the Australian share market that should perform much better than most others. In addition, market strategists at Goldman Sachs have also offered their favourites for the year ahead.

Which stocks are we talking about?

The quant team at Citi nominated Flight Centre ((FLT)), Fortescue Metals ((FMG)), Fairfax Media ((FXJ)), National Australia Bank ((NAB)), OneSteel ((OST)), Rio Tinto ((RIO)), Seek ((SEK)), Sims Metal Management ((SGM)) and TPG Telecom ((TPM)).

Goldman Sachs' strategists chose Brambles ((BXB)), News Corp ((NWS), Sims Metal Management, Woodside Petroleum ((WPL)), Lend Lease ((LLC)), Qantas ((QAN)) and Wesfarmers ((WES)).

What's the motivation?

In both cases, (cheap) valuations play a key role, but Goldmans' strategists are also paying attention to relative robust/defensive operations and leverage to the fact that China is anticipated to start stimulating again, at some point in the year.

Citi's quant selection is equally based upon the expectation the world will not see a repeat of 2008 next year.

 

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