Hunting for high conviction catalysts

About the author:

Author name:

By Tom Sartor

Job title:

Senior Analyst

Date posted:

22 October 2014, 3:34 PM

Sectors Covered:

Junior (Emerging) Resources, Bulk Materials

Several of our large cap High Conviction picks have pulled back materially on recent volatility and now offer compelling buying as markets normalise.

We've identified near term catalysts we expect to assist the re-rating of our key High Conviction picks. Challenger, Seek and Oil Search look like the stand-outs:

• Seek (SEK)
  • We know Job ad volumes have increased 10-12% ahead of the prior corresponding period so we see the potential for inferences of a mild earnings surprise via the AGM on November 27.
• Challenger (CGF) 
  • Removal of short term distractions to the Fin Planning channel (affecting lower Retail annuity sales this quarter) is likely heading into 2015 and would help to stabilise the share register after the August capital raising.
• Oil Search (OSH)
  • The next OPEC meeting scheduled for November 27 has potential to rebalance supply-demand dynamics, stabilising oil prices and potentially unwinding net short position in oil futures which have spiked to extreme (short) positioning.

For more upcoming catalysts on our other large cap High Conviction stocks, please login to view full report.

More information

Morgans clients can access detailed reports on all of our high conviction stock picks. If you would like more information, please contact your nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.