Dale Gillham top pick today is A2 Milk Company (ASX:A2M), a stock which has gone up nearly 25 per cent since November.
Mr Gillham studies the charts and graphs for his weekly Wealth Within Hot Stock Tips, presented in partnership with HotCopper.
“A lot of people might look at this chart (A2M) and go it looks sick, but I actually look at this chart and get quite excited about it because we’ve seen it move up since that low in November,” he said.
“It has been really on the nose, I suppose, since way back through that 2020 high, now obviously prior to that it was really bullish with all the buying of its products in China and then obviously that all changed and it hit these really big lows.”
Mr Gillham explains his interest in A2M, which has traded below $4 this month, down from highs around $20 in 2020.
Proceed with Caution
Mr Gillham’s Proceed with Caution pick for this week is The Star Entertainment Group (ASX:SGR) which gained momentum last week.
It’s fallen more than 90 per cent in recent years. Mr Gillham discusses his concerns around the low volumes of trade.
What’s Not Hot
This week Mr Gillham’s ‘Not Hot’ stock pick is imaging and pathology play, Healius (ASX:HLS) and he said he was ‘not convinced its down move is over’.
HLS traded at $10 in February 2007 and has fallen 88 per cent from its all time highs.
“I’m not convinced it’s fallen enough, I think it could go to 90 per cent, I think it could even get down to that previous all time low which is August 1998 – around 80 cents,” he said.
“This is why I’m saying be careful of this stock at the moment, it’s a big move down there are not too many moves up.”
Mr Gillham also discusses Polynovo (ASX:PNV) – the best performing last week up 13.56 per cent – followed by Alumina (ASX:AWC) and Iluka Resources (ASX:ILU).
For more from Dale Gillham and investment analysts Janine Cox and Filip Tortevski, you can also see the interactive Wealth Within TV live on YouTube every Tuesday at 7pm (AEDT).
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