Icarus Signal New Entries For Today

This story features AUSTRALIAN CLINICAL LABS LIMITED, and other companies. For more info SHARE ANALYSIS: ACL

Update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Are resources equities cheap?

Judging by the Bottom 50 table of FNArena's Icarus Signal the question not only is rhetorical in nature, it also appears to be a grave understatement. Scrolling through today's table (closing prices yesterday) it does seem like a lot of effort to find non-resources stocks in between the Bandanna ((BND)), the Texon Petroleum ((TXN)) and the Molopo Energy ((MPO)) stocks that populate the tabel. This becomes even more so when we casually include sector services providers such as Boom Logistics ((BOL)) and Resource Equipment ((RQL)).

Having said so, the two names that are currently on top of the table belong under the life sciences label; new entrant Pharmaxis ((PXS)) is trading no less than 80% below consensus price target, but if thought that was gigantic then consider Alchemia ((ACL)) is currently trading more than 100% below target.

Even if we were to assume that on the back of a retreat in risk appetite and analysts having to play catch-up with a deteriorating global environment for these stocks, it's probably still safe to assume that most of these assets are currently gravely undervalued. Investors should keep in mind though this doesn't automatically mean any opportunities amongst these beaten down equities now come risk free. Never a free lunch in the share market, remember?

So who else is there to be discovered in the Bottom 50 that is not a miner, and explorer, an energy play or services provider to any of the three first mentioned?

Jetset Travelworld ((JET)), Onthehouseholdings ((OTH)), PaperlinX ((PPX)), Symex ((SYM)) and ThinkSmart ((TSM)). Is that all I hear you thinking – and yes, that's all!

On the opposite side of the ledger we now find funds manager Perpetual ((PPX)) which is hardly a surprise given take-over speculation. There are 18 stocks in total which are presently trading in the vicinity of consensus targets and those 18 consist of solid dividend payers and relative safe-havens in turbulent times. Think Australian Infra ((AIX)), ASG Group ((ASZ)) , Commbank ((CBA)) and Wesfarmers ((WES)).

There are a total of 48 stocks trading above target and for many on the list this means "well above target". Try Treasury Wine Estates ((TWE)), or Cochlear ((COH)), or Dominos Pizza ((DMP)). Webjet ((WEB)) is there too, as are today's newcomers Sydney Airport Holdings ((SYD)), G8 Education ((GEM)), Slater & Gordon ((SGH)) and Specialty Fashion Group ((SFH)).

Chase at your own peril.

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 PPT $ 23.82 $ 24.40 2.45%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 GEM $ 0.98 $ 0.98 – 0.51% 2 SFH $ 0.52 $ 0.47 – 9.62% 3 SGH $ 1.88 $ 1.86 – 0.80% 4 SYD $ 2.94 $ 2.93 – 0.44%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 PXS $ 1.05 $ 1.90 80.95%

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