FYI | Aug 22 2011
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck
Alacer Gold ((AQG)) has surged above consensus target and may well remain above target for a while to come yet as global uncertainties keep gold in focus for the global investment community. Alacer is one standout stock in the Australian gold sector if we can rely on expert views.
Interestingly, two of the four brokers who cover the stock in the FNArena universe hold a rather benign view on the stock's valuation, but the other two have price targets well above today's share price. Hence why positive sentiment towards gold stocks can potentially keep Alacer shares above target for a while, in my view.
Numero Uno gold producer in the Australian share market, Newcrest ((NCM)), on the other hand has hardly booked any gains into 2011 thus far and the share price remains well, well, well below consensus price target. Is it the curse of being a large cap stock or is there more to it?
Kingsgate Consolidated ((KCN)), on the other hand, may well be readying itself to soon join Alacer. Kingsgate has one conservative stockbroker (out of four) covering, but recent price action showed rejection did follow at the consensus price target regardless. Right now, the shares seem to be staging a come-back suggesting another attempt to join Alacer Gold above target is but a matter of time. Will this coincide with another rejection?
Price action this week will likely reveal something about Kinsgate's inner strength in the face of Icarus' warning.
Another stock which deserves our attention is -once again- Monadelphous ((MND)). It's a good business carried by positive market dynamics. One only has to observe how Monadelphous shares, in difficult and volatile times, continuously try to break the barrier of the consensus price target, but fail each and every time. On Friday, Monadelphous shares encountered more sellers than buyers and the result is the shares have now disappeared from all lists generated by the Icarus Signal. For how long?
The same question can be asked with regards to Cochlear ((COH)) shares trading above a sharply lowered target. For how long?
Friday's price action left only five stocks trading close to target, including newcomers Foster's ((FGL)) and Kingsgate. Life sciences hopeful Pharmaxis ((PXS)) enjoyed a boost to the price target, but nevertheless met with more sellers than buyers and the result is similar to Monadelphous's.
The list of stocks trading above target has now shrunk to 17 and we think the odds remain in favour of further shrinkage today.
No surprise, the Bottom 50 welcomes Billabong ((BBG)) and Virgin Blue ((VBA)), as well as Hillgrove Resources ((HGO)). The latter is a result of JP Morgan initiating coverage.
Investors should consider the information and data are provided for research purposes only.
Stocks <3% Below Consensus
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Stocks Above Consensus
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Top 50 Stocks Furthest from Consensus
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To see the full Icarus Signal, please go to this link
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