General | Feb 03 2006
Mortgage Choice (MOC) has been dropped from Credit Suisse’s so-called Australian Focus List, in essence a short list of trading ideas, both with perceived upside and downside share price potential.
Credit Suisse itself formulates it as follows: [The] “Australian Focus List identifies stocks where our research has highest conviction as to the potential of risk-adjusted upside or downside.”
Mortgage Choice shares were in decline on Monday, but they have gradually climbed from above $1.50 to past the $2.50 mark since early February. They have now surpassed the broker’s twelve month price target of $2.45.
Interestingly, Credit Suisse’s target price is significantly above what the other experts dared to put forward with other price targets ranging between $2.20-$1.80 for the shares. As one would have expected, the broker has also pulled back its recommendation for the shares to Neutral.
The broker’s current best short ideas (meaning investors should expect the share price to weaken) are limited to two stocks: Metcash (MTS) and Coles Myer (CML).
As is usual the case, the Long List (expected to gain over time), contains far more stocks.
As of today (Monday) Credit Suisse’s best ideas for those investors looking to benefit from share price appreciation (in relationship to risks perceived with the investment) are Harvey Norman (HVN), Orica (ORI), Macquarie Infrastructure (MIG), James Hardie (JHX), Promina (PMN), Macquarie Bank (MBL), Rinker (RIN), Origin Energy (ORG), Macquarie Airports (MAP), Oil Search (OSH) and Telstra (TLS).
