Top 5 long term buys
Broker's Pick:
Top 5 long term buys. 30 September 1999
Broker's Pick:
Top 5 long term buys. 30 September 1999
From Peter Greentree, portfolio manager for Deutsche Asset Management's recently launched Australian Equities Alpha Fund.
1. Aristocrat Leisure
With 75 per cent of the market share for new machines in Australia and world-class software capabilities, Aristocrat is well positioned to take advantage of significant growth opportunities in the US, South Africa and Japan.
2. CSL
A recent contract to supply bio-plasma products to the American Red Cross, which has 30 per cent of the 3 million litre per annum US market, has provided CSL with the potential to triple its output for an incremental capital expenditure of just $70 million. The company also has an extensive research and development pipeline.
3. Macquarie Bank
The value-adding acquisition of BT and increased fee income from all areas of its business underpins a strong outlook for Australia's only listed investment bank. It also stands to be a major beneficiary of tax changes, scrip for scrip takeover relief and privatisations. Offshore opportunities also provide growth opportunities.
4. Primary Health Care
Australia's largest operator of 24-hour medical clinics currently captures 1 million of the 100 million GP visits made each year, and its strategic business plan and strong management team is on track to substantially increase penetra-tion of this market.
5. Seven Network
Management issues and an inflated cost base have affected Seven's margins. The station has good ratings and the initiatives of Kerry Stokes should see costs decrease and the impact of overpriced programming run off over the next 2-3 years.
AUTHOR
Zilla Efrat
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