18 Share Tips - 10th June 2024 - The Bull

18 Share Tips | 10th June 2024 | The Bull https://thebull.com.
au/18-share-tips/10-june-2024/
ANTHONY BLACK
09 Jun 2024
John Athanasiou, Red Leaf Securities
BUY RECOMMENDATIONS
BUY – Tinybeans Group (TNY)
TNY operates a private photo-sharing app and media platform that connects millions of users.
The company recently completed a capital raising to fund growth initiatives. We like the
company’s outlook. We are confident chief executive Zsofi Paterson has the skills, experience
and management team to generate growth. In our view, the stock offers an attractive entry
point as it was priced at 7.5 cents on June 6.
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18 Share Tips | 10th June 2024 | The Bull https://thebull.com.au/18-share-tips/10-june-2024/
BUY – REA Group (REA)
REA Group holds a dominant position in the online classifieds real estate market. The
company’s strength is reflected in an impressive track record of consistently delivering annual
earnings growth in the past decade. Looking ahead, possible interest rate cuts paint a bright
outlook for the real estate market and REA’s prospects.
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HOLD RECOMMENDATIONS
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HOLD – IDP Education (IEL)
The company provides international student placements. It co-owns the world’s most popular
English language tests. IDP Education remains a quality business, but we have regulatory
concerns about possible cuts to net migration in Australia. Also, the company expects the
international education market to decline between 20 per cent and 25 per cent in the next 12
months. It remains confident about the longer term. While IDP’s fundamentals are robust, the
company recently announced that adjusted earnings before interest and tax in fiscal year 2024
are expected to be broadly in line with the prior year. The company is implementing a cost
cutting program. We suggest monitoring developments closely.
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HOLD – Sigma Healthcare (SIG)
Sigma Healthcare is undergoing a proposed merger with Chemist Warehouse, a development

that bears potential, but also carries regulatory risk. The proposed merger is subject to
approval by the Australian Competition and Consumer Commission (ACCC) and shareholders.
We are optimistic a merger will proceed, but remain cautious until the ACCC reaches a
decision.
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SELL RECOMMENDATIONS
SELL – BrainChip Holdings (BRN)
Shares in this artificial intelligence company rose from 17.5 cents on January 3 to close at 49
cents on February 26. The shares were trading at 22.5 cents on June 6. BRN is a speculative
stock. The company posted a net loss after tax of $US28.9 million for the year ending
December 31, 2023. Other stocks appeal more at this stage of the cycle, so investors may want
to consider cashing in some gains.
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SELL – Zip Co (ZIP)
Revenue of $219.2 million in the third quarter of fiscal year 2024 was up 26.6 per cent on the
prior corresponding period. The revenue margin improved to 9.1 per cent. The shares have
risen from 59 cents on January 3 to trade at $1.185 on June 6. We believe the share price has
risen too rapidly and is trading at a premium. We’re also concerned about inflationary
pressures in the US impacting consumer spending. Investors may want to consider taking a
profit at these levels.
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Philippe Bui, Medallion Financial Group
BUY RECOMMENDATIONS
IG - Extensive product array and user-friendly platforms - Read our review

eToro - market-leading social trading platform - Read our review
IC Markets - experienced and highly regulated - Read our review
Quadcode Markets - multi-asset CFD broker - Read our review
BUY – Audinate Group (AD8)
AD8 is an audio-visual networking software developer. This technology company still appears
to be in the early stages of a long-term growth trajectory. The business is now growing quickly
in the video segments. The share price has retreated to an attractive entry point after reaching
an all-time high of $23.51 on the back of a strong report in February. AD8 is currently the top
holding in our Australian equities growth fund. The shares were trading at $16.17 on June 6.
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BUY – Challenger (CGF)
CGF is the largest provider of annuities in Australia. The company went through a tough cycle
when interest rates were at all-time lows. In today’s environment, its products are much more
attractive for older investors looking for an income stream. The business was recently trading
on an undemanding price/earnings multiple and a fully franked dividend yield of almost 4 per
cent. CGF recently re-affirmed full year results at the top end of its guidance range.
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HOLD – Evolution Mining (EVN)
EVN is one of Australia’s lowest cost gold producers After acquiring an 80 per cent interest in
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EVN is one of Australia s lowest cost gold producers. After acquiring an 80 per cent interest in
the Northparkes mine in early December, the company now has significant exposure to
copper. Recent gold and copper prices have more than offset spikes in operating and capital
expenditure. With little company hedging in place, EVN can take advantage of strong spot
prices. This should help the business to continue deleveraging its balance sheet and reduce
debt costs.
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HOLD – Telix Pharmaceuticals (TLX)
This commercial stage biopharmaceutical company has been a star stock. Recently, TLX
announced promising trial results for its prostate cancer drug therapy candidates. Since
getting approval for its diagnostic product two years ago, the company is generating revenue
of almost $150 million a quarter. In our view, this is a stock with long term potential that
could easily continue to impress.
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SELL – Yancoal Australia (YAL)
YAL is involved in nine producing coal mines across Australia. The shares have risen from
$4.57 on November 7, 2023, to trade at $6.33 on June 6, 2024. Company performance can
hinge on the underlying thermal coal price. The overall realised coal price declined 8 per cent
for the quarter ending March 31, 2024, when compared with the fourth quarter of fiscal year
2023. We’ve been selling the stock on behalf of investors to crystalise gains amid exploring
other opportunities.
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SELL – Adairs (ADH)
ADH is a furniture and homewares retailer. Statutory revenue from continuing operations for
the 27 weeks ending on December 31, 2023, was down 6.7 per cent on the 26 weeks in the
prior year. Profit after tax from continuing operations was down 18.9 per cent. The cost-of-
living crisis is impacting retail spending. The shares have fallen from $2.60 on March 27 to
trade at $1.717 on June 6. Better growth options exist elsewhere, in our view.
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Harrison Massey, Argonaut
10 of 19 18/06/2024, 7:10 am
BUY RECOMMENDATIONS
BUY – Patriot Battery Metals Inc (PMT)
Patriot is a hard rock lithium exploration company. It owns the tier 1 Corvette property in
Canada, with a current JORC resource of 109.2 million tonnes at 1.42 per cent lithium oxide.
The company is due to release an updated resource estimate in the third quarter of calendar
year 2024. Corvette has the potential to underpin a spodumene concentrate project of more
than 1 million tonnes per annum, with further exploration results the key catalyst for the share
price moving forward.
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BUY – Genesis Minerals (GMD)
Genesis is in an enviable position with 3.3 million ounces of gold in group ore reserves amid a
potential production profile of 3 million ounces during the next 10 years. The company is fully
funded with cash and bullion of $181 million and zero debt. The company is well positioned
for more merger and acquisition opportunities in the future. Company chief executive Raleigh
Finlayson has a strong track record in the sector.
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HOLD – Coles Group (COL)
The supermarket giant posted sales revenue from continuing operations of $10.033 billion in
the third quarter of fiscal year 2024, a 6.4 per cent increase on the prior corresponding period.
This was a solid result, in our view. Its market share should assist in sustaining performance
despite any potential political headwinds it may face from inquiries into supermarket prices.
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HOLD – Inghams Group (ING)
This poultry company lifted revenue and net profit after tax in the first half of fiscal year 2024
compared to the prior corresponding period. The fully franked interim dividend was 12 cents a
share. Core poultry volumes were up 2.2 per cent. In response to the recent bird flu outbreak
in Victoria, the company has implemented enhanced biosecurity measures on top of already
strict standard protocols throughout its Victorian operations. The company announced on
May 22 that it has no commercial broiler farms in the affected region.
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SELL X (XRO)
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SELL – Xero (XRO)
This accounting software provider posted a solid fiscal year 2024 result, with free cash flow
more than tripling during the period. Operating revenue grew twice as fast as subscriber
numbers, highlighting the company’s aggressive growth strategy. Yet, the company didn’t pay
a dividend. The share price has risen strongly since late November 2023 to trade at $126.32 on
June 6, 2024. Given the strong share price run, it may be prudent to take a profit.
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SELL – The a2 Milk Company (A2M)
The share price of this infant formula company has performed strongly between mid-April
and June 6, 2024. Company revenue was up 3.7 per cent in the first half of fiscal year 2024
compared to the prior corresponding period. Continuing growth in the China and other Asia
segment helped drive revenue growth. Net profit after tax was up 15.6 per cent. However, the
company didn’t declare a dividend. Investors may want to consider taking a profit on share
price strength.
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18 Share Tips | 10th June 2024 | The Bull https://thebull.com.

John Athanasiou, Red Leaf Securities

BUY – Tinybeans Group (TNY)

BUY – REA Group (REA)

HOLD – IDP Education (IEL)

HOLD – Sigma Healthcare (SIG)

Sigma Healthcare is undergoing a proposed merger with Chemist Warehouse, a development

SELL – BrainChip Holdings (BRN)

SELL – Zip Co (ZIP)

Philippe Bui, Medallion Financial Group

IG - Extensive product array and user-friendly platforms - Read our review

BUY – Audinate Group (AD8)

BUY – Challenger (CGF)

HOLD – Evolution Mining (EVN)

HOLD – Telix Pharmaceuticals (TLX)

SELL – Yancoal Australia (YAL)

SELL – Adairs (ADH)

Harrison Massey, Argonaut

BUY – Patriot Battery Metals Inc (PMT)

BUY – Genesis Minerals (GMD)

HOLD – Coles Group (COL)

HOLD – Inghams Group (ING)

SELL – Xero (XRO)

SELL – The a2 Milk Company (A2M)

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