\n\tBy Rudi Filapek-Vandyck<\/p>\n
\n\tMarket strategists at BA-Merrill Lynch have been busier than usual this week. First they had to remove Macquarie Group ((MQG)) from their Most Highly Recommended Stocks, because, you know, two profit warnings in a matter of weeks is not what a Conviction Buy rated company is supposed to do.<\/p>\n
\n\tToday, the strategists report they also believe the recent run in shares of Macquarie Airports ((MAP)) has now made the stock less attractive and thus MAp shares are no longer on the list either. What will come as a surprise to most market watchers, no doubt, is the fact that Telecom New Zealand ((TEL)) shares have been added to the list instead.<\/p>\n
\n\tTelecom NZ?<\/p>\n
\n\tWell, defends BA-ML, the shares are cheap and the market is at present underestimating what value can be created through the demerger of Chorus and a possible win in the bidding proces for the NZ government's Ultra Fast Broadband project.<\/p>\n
\n\tThe strategists are talking a potential value turnaround in the order of 25%, and that has now led to the company's inclusion in the stockbroker's so-called Australia Focus 1 List. Other brokers talk about “Buys with Conviction” or something similar, but it's all the same idea: these stocks stand out in projected returns for the year ahead (or at least the next few months).<\/p>\n
\n\tOther stocks on the list include Ten Network ((TEN)), Asciano Group ((AIO)), Tabcorp Holdings ((TAH)), Newcrest ((NCM)), National Australia Bank ((NAB)), Oil Search ((OSH)), Stockland ((SGP)), Downer EDI ((DOW)) and Rio Tinto ((RIO)).<\/p>\n
\n\tOver at RBS Australia, where market strategists call their selection of preferred stocks High Conviction Calls, no changes were made this week. This effectively means CommBank ((CBA)) remains the sole stock on RBS's list of shorts with a conviction (negative stance) while on the positive side (long) we continue to find Fortescue Metals ((FMG)), Suncorp-Metway ((SUN)), Origin Energy ((ORG)), News Corp ((NWS)), Southern Cross Media ((SXL)) and Myer Holdings ((MYR)).<\/p>\n
\n\tOver at Macquarie, things have equally remained unchanged on the Buys with Conviction front, or as Macquarie prefers to label its selection of Best Buy Ideas; Macquarie Marquee Ideas.<\/p>\n
\n\tThis, we have to admit, we find curious because amongst Macquarie's Marquee Ideas has been for a while the recommendation to trade in ANZ Bank ((ANZ)) shares for either shares in the above mentioned CommBank or in Westpac ((WBC)).<\/p>\n
\n\tThis, we find very curious indeed.<\/p>\n
\n\tOther Highly Recommended Things To Do, suggests Macquarie, is being short ASX ((ASX)) and short Stockland (also mentioned above).<\/p>\n
\n\tOn the positive side of the list we still find Rio Tinto, News Corp and JB Hi-Fi ((JBH)).<\/p>\n","protected":false},"excerpt":{"rendered":"
Market strategists at BA-ML, RBS Australia and Macquarie have updated their Best Ideas.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/57162"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=57162"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/57162\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=57162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=57162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=57162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}