Stocktake table
Cameron Securities client adviser Jake Burgess five long term stock picks.
Cameron Securities client adviser Jake Burgess five long term stock picks.
Pima Mining (Speculative)
Currently developing the SAMAG magnesium deposit in South Aus-tralia, its production costs are said to be among the lowest in the world. Magnesium is one of the world’s best emerging metals stories. Car manufacturers are looking to guarantee supply because of substantial cost savings. Pima is yet to sign up a joint venture partner to absorb the estimated $400 million capital cost for the mine, which will improve it’s risk profile.
Formida Holdings (Speculative)
This stock has run in recent times, but still represents good value, if management fulfils its potential. Formida offers on-line mapping soft-ware for asset management, land use and telecommunications indus-tries. It recently won some major contracts and is gaining marketplace credibility through its partnership with Oracle. Its revenue model offers true blue sky potential and it plans to list on NASDAQ by year-end.
Telstra
Sentiment towards Telstra soured recently. This is an ex-government monopoly with enormous cash generating potential. The market should not be surprised if it loses market share to highly efficient competitors and due to government actions. Yet, Telstra is still Australia’s leading Internet service provider and its most recognised brand, next to Coke. At recent levels it represents a good portfolio play.
PMP Communications
An overlooked player in the content provision market, PMP was sold down when Lachlan Murdoch said he might re-enter the magazine game, possibly threatening PMP’s market position. PMP is a consistent performer with a good fully franked yield. Assets are biased towards magazines, but it is also into technology and the Internet. Speculation surrounding Newscorp, PBL and Fairfax has left PMP a forgotten stock within the sector.
Fosters Brewing
Consistently a strong performer, it has huge brand recognition in the US, UK and Europe. The hotel network provides good distribution fa-cilities. The divestment of the loss making Chinese breweries about a year ago removed a large millstone from around Fosters’ neck, while the consolidation of the Mildara Blass crushing facilities will have an on-going positive impact on earnings. The company is well run, and has strong market position.
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