Icarus Signal New Entries For Today

This story features WOOLWORTHS GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: WOW

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

What's the ultimate safe haven in the Australian share market? Is it Woolworths ((WOW))? Telstra ((TLS))? I'd argue investors should look in the direction of REITS with office exposure (rather than a retail focus). But the underlying problem remains the same for those wishing to still jump on board, it's the one that starts with "v" and ends with "aluation".Yesterday I highlighted Commonwealth Property Office Fund ((CPA)) and the securities managed to end the session pretty close to consensus price target on the day. Today I note ING Office Fund ((IOF)) is closing in on its target as well.

Remarkably, recent price action for both looks pretty similar. Icarus registered a peak at or above target a little over one month ago, then a rejection and a minor retreat and now we're back closing in on the target. Too late to jump on board, would be my suggestion, but buying into safety after the next rejection seems like a better strategy (assuming one is looking for the better defensives in today's market). Mind you, as IOF securities are closing in on target, the implied dividend yield is now touching 6% "only". For CPA, which is relatively more expensive, the forward looking dividend yield has now fallen to 5.8%.

Probably better retail investors and Smurfs (SMSF-ers) don't try to play the game of bigger funds managers and stay away from these securities altogether.

Meanwhile, yesterday's price action caused some serious re-shuffling of the Icarus tables, and judging by the price action on Wednesday morning, it will be similar in tomorrow's update. A total of 15 stocks was trading below, but close to target yesterday, including newcomers Sandfire Resources ((SFR)), Reckon ((RKN)), Treasury Wine Estates ((TWE)), Tabcorp ((TAH)), Macmahon ((MAH)), Premier Investments ((PMV)), Coffey International ((COF)) and the above mentioned IOF.

Investors should note Premier Investments, and Coffey as well, is only in there because stockbrokers have been lowering their targets.

Reckon, Treasury and Tabcorp have descended from the group trading above target. Expect more of the same in tomorrow's update. There are at present 27 stocks left trading above target. Amongst these are solid dividend payer Metcash ((MTS)), Regis Resources ((RRL)) and Nomad Building Solutions ((NOD)).

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 COF $ 0.70 $ 0.72 2.86% 2 IOF $ 0.65 $ 0.67 2.92% 3 MAH $ 0.60 $ 0.61 1.17% 4 PMV $ 5.79 $ 5.95 2.71% 5 RKN $ 2.60 $ 2.61 0.31% 6 SFR $ 8.55 $ 8.57 0.18% 7 TAH $ 3.22 $ 3.26 1.15% 8 TWE $ 3.39 $ 3.41 0.53%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 MTS $ 4.18 $ 4.18 – 0.05% 2 NOD $ 0.11 $ 0.10 – 4.76% 3 RRL $ 2.89 $ 2.85 – 1.38%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 AQP $ 4.15 $ 6.33 52.60% 2 COK $ 0.44 $ 0.66 51.72% 3 ELD $ 0.36 $ 0.54 51.27%

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