Should you be staying away from buying these four stocks?

CSL Ltd


CSL Details

Strong Biotherapies Products:CSL Ltd (ASX: CSL) got approval from US Food and Drug Administration for the Influenza Vaccine FLUCELVAX QUADRIVALENT against the A viruses and B viruses which would further broaden their influenza coverage. The group also got the USFDA approval for AFSTYLA® [Antihaemophilic Factor (Recombinant), Single Chain], the group’s Behring’s novel long-lasting recombinant factor VIII single-chain therapy for adults and children with haemophilia A. Moreover, the group’s initiated a share buyback of up to A$1 billion, supporting to the stock rally. CSL has been granted seven years of marketing exclusivity in March 2016 by the U.S. Food and Drug Administration for IDELVION. IDELVION is also approved in the European Union and Canada. Regulatory agencies in Australia, Switzerland and Japan are also currently reviewing CSL Behring's marketing applications for IDELVION. The group has completed the acquisition of Novartis' influenza vaccine business, and integrated the subsidiary, bioCSL, to create Seqirus, the second largest influenza vaccine business in the US$4 billion global industry with major manufacturing plants in the US, UK and Australia and has a commercial presence in approximately 20 countries. Given such strong performance, the stock rallied over 6.45% in the last four weeks and surged over 29.52% (as of June 07, 2016) in the last one year placing the stock at higher levels. Currently, we give “Expensive” recommendation at the current price of  $117.21, and would review the stock at a later date.
 

CSL Daily Chart (Source: Thomson Reuters)
 
ResMed Inc.


RMD Details

Growing business via Acquisitions & Expansions: ResMed Inc. (CHESS) (ASX: RMD) acquired Brightree for $800 million which is a leader in business management and clinical cloud-based software applications for the post acute care industry. This acquisition would add to ResMed’s global leadership in connected healthcare solutions. The company, in the first quarter 2016 has closed the Inova transaction, which would help the company to expand the respiratory care offerings to include portable oxygen concentrators. RMD’s revenue for the three months ended March 31 jumped 7% to $US453.9 million, indicating a 9% rise excluding currency movements. However, there was a 3% fall in third quarter net income to $US88.5 million.


ResMed Financial Performance (Source: Company Reports)
 
On the other hand, the stock already rallied over 5.34% (as of June 07, 2016) in the last four weeks. We give an “Expensive” recommendation on the stock at the current price of $8.06, and would review the stock at a later date.
 

RMD Daily Chart (Source: Thomson Reuters)
 
Coca-Cola Amatil Ltd


CCL Details

Aggressive Cost Cutting Initiatives: Coca-Cola Amatil Ltd (ASX: CCL) issued a forecast of its earnings per share to grow in mid to single digit while the growth would depend on the success of revenue initiatives in Australia and Indonesian economic factors. The company is targeting dividend payout ratio of over 80% while CCL is ahead of schedule with the three year of $100m cost savings plan in Australian Beverages.
 

CCL Value proposition (Source: Company Reports)
 
Moreover, CCL has diversified its portfolio into bottled water, coffee, and alcoholic drinks. Trading at a reasonable dividend yield and P/E, we give a “Hold” recommendation on the stock at the current price of  $8.67
 

CCL Daily Chart (Source: Thomson Reuters)
 
Macquarie Group Ltd


MQG Details

Rising Australian dollar & lower trading activity might hurt the stock sentiment: Macquarie Group Ltd (ASX: MQG) asset-quality might be under pressure impacted by the stress in its commodities-related exposures, based on a Moody's report. Despite the group’s efforts of building an operational flexibility and balance-sheet strength, the ongoing volatile global financial market conditions coupled with tough economic environment in Australia, might hurt the group’s performance. The group also clarified that, as at 30 April 2016, the number of ordinary shares on issue was 340,302,389. Meanwhile, the bank expects the profit for FY17 to be in line with FY16 and if the Australian dollar continues to weaken in the 12 months then Macquarie is likely to comfortably beat last year’s result as a 10% drop in the Australian dollar would boost its full-year net income by 7%. On the other hand, the bank’s asset-management business is expected to post lower performance fees for the first time in FY 17. The profit for the six months ending 31 March 2016 was down 7% on the first half of the financial year, which is a result that reflects a stronger Australian dollar, lower trading activity, and an uptick in impairments. As a result, MQG stock has fallen 10.42% (as of June 07, 2016) in the last six months and we believe that the pressure in the stock could continue in the coming months. Accordingly, we maintain our “Expensive” recommendation on the stock at the current price of  $73.65
 

MQG Daily Chart (Source: Thomson Reuters)

---

Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.