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This week’s HotCopper Hot Stock from Wealth Within analysts Fil Tortevski and Pedro Banales is one of the simplest sells on the ASX – and “everyone knows about it” – because it leads the bourse: Commonwealth Bank (ASX:CBA).
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“The CBA has been the hot topic of recent weeks,” Mr Tortevski explained today.
Importantly, the index leader is right in the middle of the rate cut storm coming through this week (which, for the record, has now hit: The RBA cut rates to 4.1%). “This bank is one of the biggest players there,” he added.
Mr Tortevski explained it’s not a long hold though: “It’s a potential Hot Stock tip that has short-term potential… I’m not thinking long on CBA at all here, especially if we do go through another easing cycle shortly as well.”
“Why it is looking good right now for the short term is while it’s running through, ask yourself how it’s getting there. It could be moving to a new all-time high.”
“There is a bit of a double-edged sword to the rate cut of course,” Mr Banales warned.
That warning proved prescient; CBA lost as much as 1.1% after the RBA’s Tuesday rate cut call, with much of the ASX dipping as it shaved value.
By close, the market bellwether was selling for $163/share.
Proceed With Caution
Sydney-based AMP Ltd (ASX:AMP) has been dubbed the “cautious” pick from the Wealth Within duo this week, especially because it’s reported “and the market has not taken kindly to the reporting,” Mr Tortevski explained.
“We are looking at a scenario with AMP where it’s in a line-in-the-sand moment,” he added. “Though… buyers are now dominating, so that’s a nice change in sentiment.”
Mr Banales pointed out there’s only one thing you need to figure out with this stock if you want to buy AMP: “[Is it an] opportunity… or a failed run?”
The financial services company traded 0.9% down on Tuesday, to $1.41 a share.
Not Hot
The duo were very clear on their “avoid” – heavyweight CSL (ASX:CSL).
“It’s stuck sideways,” Mr Tortevski warned. “You don’t have to be a rocket scientist to get a very clear gauge that this stock is stuck sideways right now.”
CSL last traded at $262.02/share, up 1.44% today. It’s lost 6.76% this past 12 months.
This show comes in the lead-up to Wealth Within’s live YouTube show tonight at 7pm AEDT.
You can join conversations on Wealth Within’s tips on HotCopper here.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He’s also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.
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