Wholesale distribution company Metcash Limited (ASX:MTS) is Dale Gillham and Filip Tortevski‘s ‘Hot Stock’ in the Wealth Within Top Stock Tips show for HotCopper this week.
The stock’s all-time low was in October 2015 and it has trended upwards, with two rallies since. Mr Gillham and Mr Tortevski analyse Optuma graphs to read buy and sell trends.
“I wouldn’t suggest it’s a ‘buy now’, but it’s ‘stick on my watchlist now’, with a view to putting some buy rules around it now, and it might be 2 to 4 weeks, it could be even 6 weeks before you buy it, but I do like it at the moment,” Mr Gillham said.
Metcash yesterday closed at $3.91.
The ‘Proceed with Caution’ stock is Nickel Industries (ASX:NIC) which Mr Tortevski said he’s watching, while the ‘Not Hot’ pick is Healius (ASX:HLS)
Mr Gillham and Mr Tortevski discuss the nature of price and sector processes and market cycles.
“The markets aren’t random, it’s the traders that are random,” Mr Gillham said.
“A lot of people guess, they tell us they’re traders, but when somebody like you or me, or Janine (Janine Cox), starts asking questions, we find out it’s like they’re thin ice – what they think are rules and strategies are really not. They’re not necessarily traders.”
They also warn the market may have reached a short term peak last week.
Material and energy stocks led the way last week, topped by Emerald Resources (ASX:EMR) and Chalice Mining (ASX:CHN).
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is 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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