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Wealth Within senior analyst Fil Tortevski and analyst Pedro Banales have named their first HotCopper Hot Stock tip of the year, and it’s one there’s going to be “some risk” to get the rewards: Magellan Financial Group (ASX:MFG).
“You might be scratching your head thinking, why this one?” Mr Tortevski joked.
The point though, he continued, is that “where there’s risk, there’s reward” – as long as you can time it right to get it around the investment manager’s lows.
Mr Banales went on to suggest there may be some resistance around $21 (the financial stock was selling at $11.77 today after a 2.2% rise) which has popped up in the historical charts several times since the mid-2010s.
“Not often do you see markets come out of lows and just springboard up,” Mr Tortevski explained, “and with Magellan, it’s still just in the run-up.”
There’s as much as 80% to go towards that next resistance level, they agreed.
Even more so as an added bonus, Mr Banales concluded, is that financial shares have been quite solid through 2024 and are likely keeping that up in 2025; so “this will be the best opportunity to invest in financials [for the next big rise].”
“We saw that big run in financials last year,” he added, “and so what you want to do is look at second-tier banks and these kinds of financial instruments now.”
Proceed With Caution
You should proceed with caution on Nickel Industries (ASX:NIC) this week, Mr Tortevski and Mr Banales agreed – though there is some value to be had there.
“What’s so intriguing is there are two key levels, 70c and $1.09, the latter of which it failed to get through at different times,” Mr Tortevski said.
Mr Banales added: “I’ll be interested to see what that risk-to-reward ratio is here… probably not the best time to buy, it’s definitely a caution [but] a lot here is the uncertainty around nickel. Those prices aren’t going crazy.”
If anything, he continued, “short-term traders could find something” – but be careful.
Nickel Industries last sold at 86.3c a share today after a 0.88% gain.
Not Hot
While Collins Food Limited (ASX:CKF) “is quite interesting” – and could easily become Mr Tortevski’s Hot Stock tip in the future, he admitted – the KFC operator has been slowly fading towards below $7 in January.
“There is going to be a significant low there,” Mr Tortevski warned.
Especially problematic is the fact Collins Food nearly touched its all-time price high between 2023 and 2024 before diving quite brutally.
“Right now we’ve got that overlying momentum where it’s on the way down… nothing is promising about it. Maybe sometime this week there’ll be some short-term bullishness but a lot needs to happen before we get excited.”
Collins Food has been $7.22 today; it lost a modest 0.2% through Tuesday’s trade.
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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