Icarus Signal New Entries For Today

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

It wouldn't be 100% honest to make Cochlear ((COH)) the prime subject of today's update on FNArena's Icarus Signal, but as stated here before: Cochlear shares seemed too expensively priced, even after their tumble from $84 to the mid-$70s. Today's market response to the company's statement regarding a voluntary recall for the Nucleus C1500 products range has rapidly taken care of the rest. It'll be interesting to see what securities analysts come up with in their research updates in tomorrow's Australian Broker Call Report.

Incidentally, healthcare analysts at Deutsche Bank had already drawn the conclusion that for investors seeking exposure to Australian healthcare stocks, the prime focus should shift to local operations as opposed to international players, such as Cochlear. Deutsche Bank is pointing investors in the direction of Ramsay Healthcare ((RHC)), Sonic ((SHL)) and Primary ((PRY)) though CSL ((CSL)) was nevertheless upgraded to Buy this morning.

With trading in equities resuming on a firm Risk Off note on Monday, it is difficult to draw any conclusions, other than that junior gold companies remain firmly on investors' menu card. Observe, for example, how Regis Resources ((RRL)) has worked its way to the $3 mark this quarter, while holding its value when everything else seems to be falling victim to gravity.

Consensus forecasts show Regis Resources should report its first profits this year and growth should be forthcoming in years ahead. Key question: does Icarus law also apply to gold producers? My best guess is "yes, but". The "but" applies when things turn out much worse than is priced in today and gold will have its parabolic rise into financial Armageddon reflections. When that happens all else will fail, including Icarus law of gravity.

Investors should note analysts at Morgan Stanley have turned positive on gold, in particular on listed gold stocks as the equities have not been able to keep pace with the shiny metal (currency?) over the year past or so. Morgan Stanley is assuming a catch-up at some stage. I am anticipating more wobbles in the short term for gold futures. Maybe we can both be correct in the medium term?

Meanwhile, Metcash ((MTS)) had already started to gradually return to earth. There are now 14 stocks trading close but below target (after Friday's price action). There are 20 stocks trading above target. Both lists will shrink this week, so much seems but certain.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 CQO $ 3.32 $ 3.41 2.71% 2 EQT $ 12.94 $ 13.17 1.78% 3 GNG $ 2.00 $ 2.03 1.50% 4 MTS $ 4.20 $ 4.21 0.14% 5 SPN $ 0.94 $ 0.96 2.78% 6 TSO $ 0.51 $ 0.52 0.98%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 RRL $ 3.00 $ 2.97 – 0.90%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 RUL $ 0.40 $ 0.64 60.00%

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