# Oversold stocks that will perform well in July?



## ta2693 (5 July 2007)

I just find some of the oversold shares which is Ok with fundamental analysis. but a lot of ppl sell in June for tax reason, which negatively affect their true value.  e.g. EDN, KGL. PXR
Does anyone here know you what shares is oversold in June?


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## powerkoala (5 July 2007)

most of uranium stocks are oversold
nru, ntu, gbe, xst, ura, pnn, etc.....
maybe market waiting for uranium hype again
currently most  of them driffting lower with small volume trade.


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## Joe Blow (5 July 2007)

Please do not simply post ASX codes in this thread. 

If you are going to claim a stock has been oversold please provide some reasons/analysis for your view.


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## wllmtrish (5 July 2007)

AGS, Heathgate do not alot $14M to a 12 month drilling campaign to prove up a resource unless it is money well spent. dyor I hold AGS AGO CUL EMR FAR NUP URA


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## chicken (5 July 2007)

AGM oversold....see Chinese have bought 11% of company for 80c or 41million shares for $33million....anything below 80c is oversold...as there is a delay of production due to finishing the ballmill on time..company upgraded Ni by another 10k or $350million if it stays around present price...Stainless news said that Ni will sell around the $35k to $37.5k a tonne for the next 12 months or 2007 to 2008....as when production starts in early january AGM is the only new mine of the block..At present 75c.... SPwill see better days soon as the market starts buying again....I hold and will buy more if SP should retract further....daytraders are shorting here


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## steven1234 (5 July 2007)

I'm holding and have been accumalating TRF which has been oversold.  

It had hit a high of $2 but fell back into the 80's upon the farming off of its Iron assets to the Ironclad (IFE) IPO.  TRF is holding 50% of IFE and will hold 20% of the iron resource and get all the credits.  IFE should list next week.  Alot of TRF holders sold out to buy into IFE and allocations have been annouced of only 70%.  Once they the refunds come through there should be some more interest in getting into TRF or IFE upon listing.  In light of the $20mil $1 shares held in IFE TRF is a bargain.  

Those that bough on the way down from $2 would have sold for tax purposes and bought back in taking the tax loss to offset some of the great gains we have had in the market last year.  

I bought in on the weakness and am enjoying the benefits and much more upside to come if IFE lists at a premium.  TRF has risen recently and i expect it to keep rising as we get closer to the listing of IFE.


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## brendan87 (5 July 2007)

Anything with exposure to the high dollar I think has been oversold - especially when you look at the hedging they do, their payout ratio and capital investment/R&D requirements abroad. A high dollar means acquisitions of foreign companies can be bought on lower multiples. ABS is IMO oversold - US expansion proceeding as forecast, most earnings are AUD/NZD and further acquisitions in the US would be otherwise cheaper. But then I've always looked at this company through rose-coloured glasses. Also, BXB and CTX hit hard over "downgrades" when really their previous guidance was not revised down. CSL down significantly from highs due to high $A and worries about Gardasil despite continuos upgrades and no fundamental change in the company's position. MBL also well down off highs despite very bullish half yearly results. I think overall there are still excellent bargains to be had with many sectors off 5% or more from their highs, which in a bull market is 'cheap'. Industrials are out of favour despite strong domestic and overseas demand, LPTs also out of favour despite booms in QLD and WA and a tight rental markets and booming industrial and commercial portfolios. Also financials more broadly have underperformed - insurers particular have not kept pace with excellent market conditions for their investments and a generally quiet claims environment. I think alot of money has been taken off the table lately (excluding the Materials sector and M&A hotspots like media) and the next correction will be short and shallow - to the point where it will be over before some people realise and opportunities to accumulate will be missed - which explains the quick and strong recovery from the February 'blip'.


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## ta2693 (5 July 2007)

I can not agree AGM and TRF are the oversold shares.
AGM is weak because the Commodity price of cu is weak.
TRF, I can not see the price been put down in June by panic people.


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## chicken (5 July 2007)

ta2693 said:


> I can not agree AGM and TRF are the oversold shares.
> AGM is weak because the Commodity price of cu is weak.
> TRF, I can not see the price been put down in June by panic people.




Just to point out.....AGM is not a CU play....so do your research please....


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## ta2693 (5 July 2007)

chicken said:


> Just to point out.....AGM is not a CU play....so do your research please....




Sorry, I am confused. It is Ni player. Ni is just as week as Cu. Every commodity is weak, except Lead.


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## jonojpsg (5 July 2007)

How is Nickel weak?  $37k a tonne is where it started the year, and with demand the way it is, its hard to see it going too much lower.  AGM started out doing their BFS based on about $15k a tonne (or even less!) and forecast PE ratio for 07/08 is  about 4!! Leaves a lot of room for improvement i say


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## macca (5 July 2007)

PSH Penrice Soda

Oversold after bad 1H, better announcements recently, appears to be back on track.

Exhaustion type volume on lows around end F/Y

SP around $1.42, forecast divi this year 11.5c FF gives a return of about 11% grossed up

I hold


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## macca (5 July 2007)

LGD Legend Electronics 

Close 45c

Turn around story, oversold at end F/Y

Bad 1H, company had much better 3Qtr with 2.1c eps

Forecast 2008 eps ~7c per share, 2009 ~ 9c-10c eps

I hold


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## ta2693 (5 July 2007)

macca said:


> PSH Penrice Soda
> 
> Oversold after bad 1H, better announcements recently, appears to be back on track.
> 
> ...




Thanks for you information. It is indeed very interesting. It is the only manufacture of soda ash in Australia. I like the word "only".  Still need to do more research.


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## Ken (5 July 2007)

I think the money is going into the big boys...

ZFX, OXR, RIO, BHP, WPL 

All setting records....


Go figure... who would have thought... now the top 5 resource/energy companies in a portfolio could very well be those stocks...

They are all pretty much blue chip.

Have put on 54 % since last December...

Not saying its not going to change... but now is the time where I would be looking to put my funds into some defensive sectors. IF it wasnt for RIO and BHP and WPL the all ords would be back to 5900-6000 or pretty close to.

The last time the resource sector ran this hard, it got very spooked.

Personally I would have my shorting methods sorted, as what goes up, comes down, and we know that.. everything has a price. Any pressures on base metals, and it will be felt. I'd love BHP to get to $40.. but everything happens in cycles correct???


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## reece55 (5 July 2007)

Ken said:


> I think the money is going into the big boys...
> 
> ZFX, OXR, RIO, BHP, WPL
> 
> ...





Ken
Aren't we talking about oversold stocks here mate...... ??????

CDR  -Below book value at present (although much of it is an intangible). 2x downgrades, but realistically a bargain if it were split, cash flow issues however. But plenty of substantial holder appeal.

CEY - Centennial Coal - Still my favorite little stock, Anvil Hill now approved and whilst it is a risky stock, it has an absolute ton of upside.

ILU - Iluka Resources - Never really done very well, but look at the recent price action and substantial shareholder list. My uncle works for ILU and things are happening IMO - sure, not a great history, but not much risk from here.

These are the ones that come to mind to me. However, bottom picking is always an extremely difficult affair...... Patience and foresight is require, but it's the later that is always difficult to capture.....

Cheers
Reece


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## redandgreen (8 July 2007)

don't know whether it will perform well in July but I do know that it is appears 

OVERSOLD.  Unless there is something that I'm missing, we have had only 

good news in the last 4 months (refer ASX anns) but for  some inexplicable 

reason it just gets dumped.

The selling cant go on forever, I would expect this to turn sometime in the 

near future.

I  hold.


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## nioka (9 July 2007)

redandgreen said:


> don't know whether it will perform well in July but I do know that it is appears
> 
> OVERSOLD.  Unless there is something that I'm missing, we have had only
> 
> ...




It would be interesting if you named the stock you are talking about.


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## redandgreen (9 July 2007)

apologies....re previous post  was referring to KIM


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## Go Nuke (9 July 2007)

Clearly an oversold stock of late (especially today) would have to be Paladin (PDN)
Hit a low of $7.40 today. With such great projects as the Langer H mine in Nambia and the Malawi Uranium mine to come online next year (just to name but 2), this stock HAS to be classed as oversold.

Ok the heat has gone out of Uranium of late, but undoubtable will come back in time to come.


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## Nicks (17 July 2007)

SIP - got hammered recently (25% in one day) - downside appears to be all chewed up.
SIP had a couple of set backs, one being the failed bid for Symbion and the other being that they announced a reduced profit guidance *BUT this is the important part - they did so whilst still positing an increase over the previous year of 5%.* Now they have too much cash, so they are buying back shares (like many of the over cashed blue chips are doing). This is good, they have plenty of spare cash to invest if the see any targets and are also increasing the value of shares via the buy back.

Good Value IMO and the market seems to tihnk so too, SP up strong in the last 2 days, plenty more upside still though to make back.


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## Narkov (22 July 2007)

Nicks said:


> SIP - got hammered recently (25% in one day) - downside appears to be all chewed up.




I don't know about that. The most recent announcement said that the generic market has dramatically changed with significantly reduced margins. I don't think that situation will be resolved...ever. I'm not sure generics have much margin to play with anyway.

Unsure??!!


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