Seek A Conviction Buy, ASX A Conviction Sell

Array
(
    [0] => Array
        (
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            [1] => ((AQP))
            [2] => ((AIO))
            [3] => ((BKN))
            [4] => ((EQN))
            [5] => ((MGX))
            [6] => ((NWS))
            [7] => ((PBG))
            [8] => ((PNA))
            [9] => ((TEN))
            [10] => ((WES))
            [11] => ((ASX))
            [12] => ((BXB))
            [13] => ((RIO))
            [14] => ((BLY))
            [15] => ((QBE))
            [16] => ((ANZ))
            [17] => ((CBA))
            [18] => ((WBC))
            [19] => ((BKL))
            [20] => ((CCP))
            [21] => ((MIO))
            [22] => ((NFK))
            [23] => ((RFG))
            [24] => ((SLM))
            [25] => ((WTF))
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    [1] => Array
        (
            [0] => SEK
            [1] => AQP
            [2] => AIO
            [3] => BKN
            [4] => EQN
            [5] => MGX
            [6] => NWS
            [7] => PBG
            [8] => PNA
            [9] => TEN
            [10] => WES
            [11] => ASX
            [12] => BXB
            [13] => RIO
            [14] => BLY
            [15] => QBE
            [16] => ANZ
            [17] => CBA
            [18] => WBC
            [19] => BKL
            [20] => CCP
            [21] => MIO
            [22] => NFK
            [23] => RFG
            [24] => SLM
            [25] => WTF
        )

)

This story features SEEK LIMITED, and other companies.
For more info SHARE ANALYSIS: SEK
The company is included in ASX50, ASX100, ASX200, ASX300, ALL-ORDS and ALL-TECH

By Rudi Filapek-Vandyck

Market strategists at Goldman Sachs (technically speaking still operating as GSJB Were) have elevated Seek ((SEK)) to a Conviction Buy this morning. A move that seems justified as the stockbroker's projections imply a total investment return of no less than 42% for the year ahead. Goldmans forecasts a return for the Australian share market of some 28% over the next twelve months.

The view underpinning positive projections for Seek and for the Seek share price is the fact that demand for labour is expected to remain strong and this will underpin job ads in the year ahead.

Other stocks on Goldmans' list of Conviction Buys are Aquarius Platinum ((AQP)), Asciano ((AIO)), Bradken ((BKN)), Equinox ((EQN)), Mt Gibson ((MGX)), News Corp ((NWS)), Pacific Brands ((PBG)), PanAust ((PNA)), Ten Network ((TEN)) and Wesfarmers ((WES)).

RBA watchers might be interested to know that economists at the stockbroker predict the June quarter headline inflation number is likely to surprise to the upside (that would be a negative). Goldmans banking analysts have shaved off another 0.5-1% of their earnings forecasts for the years ahead.

Over at Macquarie, the Australian Stock Exchange ((ASX)) has now joined Brambles ((BXB)) as an Underperform with Conviction.

Macquarie's Marquee Idees (the equivalent of Goldsmans' Conviction List) also contains (in a positive sense) Rio Tinto ((RIO)) News Corp, Boart Longyear ((BLY)), QBE Insurance ((QBE)) and the advice to switch from either ANZ Bank ((ANZ)) or CommBank ((CBA)) into Westpac ((WBC)).

Meanwhile, small cap specialists at JP Morgan published their list of preferences, containing Blackmores ((BKL)), Credit Corp ((CCP)), Miclyn Express ((MIO)), Norfolk ((NFK)), Retail Food Group ((RFG)), Salmat ((SLM)) and Wotif.com ((WTF)).

All the while, earnings forecasts for ASX-listed companies continue to drop. On our own (adjusted) calculations, average earnings per share (EPS) growth for the top 200 companies in Australia has now fallen to less than 3.5% in FY10 and to less than 19% for FY11. A few months ago corresponding numbers were for 6% growth and more than 20% respectively.

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