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Brokers' Top Picks for 1994 Sharemarket Gains

Strategic Insights

— 2 min read

As the Australian sharemarket enters a new year, brokers are forecasting a promising outlook, with many confident that the market will see significant gains. According to a survey of 24 Melbourne private client brokers, the top four picks for 1994 include Boral, TNT, News Corp, and Laser Holdings. These stocks are expected to perform well due to a combination of factors, including improved economic conditions, new management appointments, and successful takeovers.

Key Takeaways:

  • Boral, a building materials and energy group, is expected to perform well due to the improved outlook for the building industry and the company's successful takeover bid for Sagasco.
  • TNT, an airline and transport stock, is considered a "recovery" stock that will benefit from an economic upturn, with strong domestic revenue from its associate Ansett and a rejuvenated management group.
  • News Corp is expected to lift earnings in 1994 due to rapid profit growth in its overseas television interests, improved earnings from BskyB, Ansett, and 20th Century Fox, and improved efficiencies.
  • Laser Holdings, a high-tech player, has "tremendous potential" due to its recent purchase of an American company that is developing a remote-control unmanned marine craft, known as the Owl.
  • The gold sector is a strong favorite among brokers, with many expecting a substantial bull run in the next six to 12 months, led by companies such as Anglo-American Group Normandy Poseidon, Newcrest Mining, and Aurora.
  • Technology stocks are also expected to perform well, with brokers recommending companies such as Laser Holdings, Vision Systems, Shomega, Datacraft, and Biota Holdings.
  • Other stocks that received one vote from brokers include AAPC, Amcor, ANZ Bank, Aurora, and BRL Hardy.

Statistics:

  • 20%: predicted percentage gain in the Australian sharemarket by Bain and Company.
  • $1.55: market capitalization of Laser Holdings.
  • $2.30: market capitalization of TNT.
  • $4.24: market capitalization of Boral.
  • $9.65: market capitalization of News Corp.
  • $816 million: value of Boral's takeover bid for Sagasco.
  • 166%: increase in the gold index in 1993.
  • 6-12 months: expected duration of a substantial bull run in the gold sector, according to Melinda Moore from Hambros Equities.

Sources:

  • ANZ McCaughan, Austock Brokers, Day Cutten, McIntosh, Victoria Street, Melbourne (broker survey)
  • Bain and Company (predicting 20% gain in Australian sharemarket)
  • Boral (market capitalization and takeover bid)
  • Falkiners Stockbroking (research on TNT)
  • Hambros Equities (research on gold sector and companies)
  • J.B. Were (research on News Corp)
  • Johnson Taylor (research on Poseidon Gold and Perilya Mines)
  • McKinley Wilson (research on Anglo-American Group Normandy Poseidon and North Territory miner Zapopan)
  • News Corp (market capitalization and company profile)
  • Shaw Stockbroking (research on News Corp)
  • Vinton Smith Dougall (research on TNT and Laser Holdings)
  • Werrie Gold NL (market capitalization)

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