BUY – James Bay Minerals (JBY)
This recently listed lithium explorer holds a 100 per cent interest in prospective lithium projects within the James Bay region of Quebec in Canada. The area covers 224 square kilometres. Also, the company is focusing on an extensive exploration program in the highly prospective La Grande sub province. With an experienced management team and quality neighbours, we believe the possibility of exploration success is potentially high. JBY is more suited to the higher risk investor.
BUY – Viva Energy Group (VEA)
The share price of this petroleum distributor and operator of Coles Express has been weaker recently amid a major shareholder Vitol Investment Partnership selling a 16 per cent stake in VEA. Vitol Investment Partnership remains the biggest shareholder in Viva Energy and has indicated it doesn’t intend to sell any further stake in VEA in the short to medium term. The share price fall provides long term investors with a buying opportunity in a high quality business seeking growth. The historical fully franked dividend yield is about 7.55 per cent.
HOLD – Johns Lyng Group (JLG)
This company operates in the insurance building and restoration space in Australia and the US. The company recently reported results ahead of expectations. The company posted a net profit after tax of $62.8 million in fiscal year 2023, up 64.3 per cent on the prior corresponding period. The company also reported strong cash flows and improving margins. The balance sheet is strong and net cash has increased substantially on the prior corresponding period.
HOLD – Sims Limited (SGM)
The metals recycler reported statutory net profit after tax of $181.1 million in fiscal year 2023, a fall of 69.8 per cent on the prior corresponding period. Sims released a trading update recently, noting challenging conditions are continuing. It expects 2024 first quarter earnings before interest and tax to be approximately breakeven. Short term headwinds are likely to persist, but we expect stronger market dynamics moving forward.
SELL – Chalice Mining (CHN)
Chalice Mining is a green metals explorer and developer. The company recently released results on a scoping study for its Gonneville nickel-copper and platinum group element project in Western Australia. The findings disappointed the market. The shares have fallen from $5.04 on August 29 to trade at $2.60 on September 21.
SELL – Carsales.com (CAR)
The share price has risen from the $23.86 on July 3 to trade at $29.29 on September 21. Private and dealer listings continue to remain strong, and the company has enjoyed a solid start in the new financial year. However, at these price levels, it may be time to consider taking some profits.