Treasure Chest: Expert Favourites Dusted And Updated

Array
(
    [0] => Array
        (
            [0] => ((MIO))
            [1] => ((DUE))
            [2] => ((AMC))
            [3] => ((AGO))
            [4] => ((RIO))
            [5] => ((DJS))
            [6] => ((ORG))
            [7] => ((WTF))
            [8] => ((BEN))
        )

    [1] => Array
        (
            [0] => MIO
            [1] => DUE
            [2] => AMC
            [3] => AGO
            [4] => RIO
            [5] => DJS
            [6] => ORG
            [7] => WTF
            [8] => BEN
        )

)

This story features MACARTHUR MINERALS LIMITED, and other companies.
For more info SHARE ANALYSIS: MIO

By Rudi Filapek-Vandyck

Commodities trading guru Dennis Gartman is back in the gold futures market, buying additional exposure denominated in USD. Yesterday's edition of his daily The Gartman Letter also included one other snippet that might prove of high value to other traders in financial markets: Gartman suggests a bounce in EUR/USD now looks like the path of least resistance. He considers 1.2950-1.30 as the logical target for such a corrective bounce.

But make no mistake: once this bounce has run its course, EUR/USD should once again find gravity starting to pull it lower, reminds Gartman.

Over at Citi, the team of quantitative analysts that compile the Quant Focus List for the Asia Pacific region have now added Centro Retail ((CRF) to their list of Idols. Past performances show selected Idols tend to perform significantly better than selected stocks on the Double Trouble list.

A quick run down through the Idols list reveals a few other Australian names: Graincorp ((GNC)), Miclyn Express ((MIO)) and iron ore pellet producer Grange Resources ((GRR)). The presence of Grange in particular stands out as the list with 50 Idols stocks, ranges from financiers to equipment providers, to property developers, to producers of consumer electronics, to car manufacturers, to agricultural commodities, but there are no producers of oil, natgas, bulk commodities or base metals on the list. That is, with the notable exception of Grange.

Over at JP Morgan, where analysts compile a so-called Asia Analyst Focus List, the recommendation remains to stay long AGL Energy ((AGK)) but short Treasury Wine Estates ((TWE)).

Investment strategist Tim Rocks at BA-Merrill Lynch updated his thoughts on Wednesday morning and the recommendation is to stay Underweight both banks and resources. Instead, Rocks believes solid dividend payers will continue to enjoy re-rating. His list of personal favourites are now Sydney Airport ((SYD)), DUET ((DUE)) and the earlier mentioned AGL Energy.

Rocks has one additional recommendation for investors in Australia: try to avoid profit warnings and downgrades in the run up to the August reporting season. Sectors most at risk, he believes, include building, transport and insurance sectors including stocks such as Boral ((BLD)), OneSteel ((OST)), Fletcher Building ((FBU)), FKP ((FKP)) and Toll Holdings ((TOL)). Also at risk of large downgrades are mining services and materials stocks (resources), he predicts.

Given his mediocre view for the world in the second half this year, Rocks believes there's a chance the AUD might be punished very hard in the months ahead. This is why his investment idea for H2 is to be Overweight stocks that make their profits offshore and operate in non-cyclical sectors. BA-ML's model portfolio is now Overweight stocks such as Amcor ((AMC)), Treasury Wine Estates, Westfield ((WDC)) and other yield stocks plus stocks in the healthcare sector.

Stocks that have now been removed from the portfolio: Atlas Iron ((AGO)), Seven Group ((SWM)), Crown ((CWN)) and FlightCentre ((FLT)).

Market strategists at Macquarie do not share the subdued BA-ML view on pick and shovel services providers. Their Emerging Leaders list of preferred exposures consists solely of such services providers. Macquarie likes Mermaid Marine ((MRM)), Miclyn Express, RCR Tomlinson ((RCR)), Ausdrill ((ASL)) and NRW Holdings ((NWH)).

Macquarie strategists also updated their Marquee Ideas this week. This saw QR National ((QRN)) and GPT Group ((GPT)) being added. Other stocks on the list are (in no particular order): SAI Global ((SAI)), Rio Tinto ((RIO)), Seven Group, Newcrest ((NCM)), AGL Energy, Virgin Australia ((VAH)), David Jones ((DJS)), RCR Tomlinson, Origin Energy ((ORG)), Wotif.com ((WTF)), the pair trade Long Bendigo and Adelaide Bank ((BEN))/Short Bank of Queensland ((BOQ)), NZ-listed Ryman Healthcare ((RYM.NZ)), Mermaid Marine, Alacer Gold ((AQG)) and Incitec Pivot ((IPL)).

At least Macquarie's favourites contain a few miners and energy stocks, but then again, David Jones is on the list as well, and so is Virgin Australia.

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