Icarus Signal New Entries For Today

This story features GROWTHPOINT PROPERTIES AUSTRALIA, and other companies. For more info SHARE ANALYSIS: GOZ

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

What is happening at Goodman Fielder ((GFF))? The producer of questionable quality bread (my personal assessment) and high quality breakfast cereals (according to other sources) has a long checkered history for investors who once upon a time turned into shareholders on the eternal promise that the future looked much more promising than the past, a promise that was, however, never met. Today, consensus forecasts remain of the view that growth for shareholders will remain largely absent in years ahead, and that is reflected in the share price performance over the past year or so.

Goodman Fielder shares have de-rated and only a blind man would not have noticed. Most stockbrokers, with the exception of one (Citi), believe a share price valuation not too far off the $1 mark seems but appropriate and that is exactly where the share price has been trading since May. Sometimes above consensus target, sometimes below.

What is supporting the share price at these levels? Take-over speculation? There is always speculation one of the global majors will pick up the pieces, it just never materialises. No doubt, following another severe de-rating for the stock, there is speculation in certain corners of the market that this time, where there's smoke et cetera. FNArena's assessment is, however, that support is likely related to the 8%-plus in dividend yield that is now on offer. The Icarus Signal has put the focus on property trusts and infrastructure plays recently, both sectors offering solid dividend yields.

It doesn't take too much imagination to put Goodman Fielder in the same basket.

Note that another stock that has now joined the group of names trading above consensus target, Growthpoint Properties ((GOZ)) equally offers a solid dividend yield of close to 9%. The third name joining after Friday's session is Swick Mining Services ((SWK)), which is another play on next year's mining capex tsunami. There are now 24 stocks trading above target.

Meanwhile, the group of stocks trading just below target has become the terrain of perpetual yoyos such as Nomad Building Solutions ((NOD)), Lycopodium ((LYL)), Iress ((IRE)), Australian Pipeline Trusts ((APA)) and Bunnings Warehouse ((BWP)). The last two are, again, solid dividend payers.

These stocks all freshly joined the group of stocks near target, together with Campbell Bros ((CPB)), which is also a capex leverage, Ramsay Healthcare ((RHC)), Centrebet International ((CIL)) and Perth-based Ammcom Telecom ((AMM)). Ammcom is being re-rated after it decided to sell its stake in fellow internet and telecom operator iiNet ((IIN)). Centrebet is still in play.

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 NOD $ 0.10 $ 0.10 0.00% 2 APA $ 4.31 $ 4.31 0.07% 3 LYL $ 5.90 $ 5.98 1.36% 4 IRE $ 9.19 $ 9.37 1.99% 5 CPB $ 45.13 $ 46.04 2.01% 6 RHC $ 18.31 $ 18.78 2.54% 7 AMM $ 0.37 $ 0.38 2.70% 8 CIL $ 1.98 $ 2.03 2.78% 9 BWP $ 1.83 $ 1.88 2.90%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 GOZ $ 1.95 $ 1.93 – 1.03% 2 SWK $ 0.45 $ 0.45 – 1.11% 3 GFF $ 1.06 $ 1.05 – 1.42%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 SAR $ 0.57 $ 0.90 57.89% 2 IVA $ 2.81 $ 4.40 56.58%

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