iInvest Trading & Advisory Top Stock Picks | October 2016

iInvest Trading & Advisory monthly Best Stock Ideas highlights high-quality large capitalisation Australian and New Zealand companies, which are currently trading at discounts to our assessed fair values. The ideas, chosen from our coverage universe of about 220 companies, are intended to have broad application in a variety of equity strategies, but individuals should consider their personal investment goals and positioning before investing. We provide brief descriptions of each best idea in this report and also encourage investors to read our most recent stock reports for a more detailed appraisal.

This month we have 12 companies in our Best Stock Ideas list. Since last month, we have added Vocus Communications and Abacus Property Group, and removed Ainsworth Game Technology, Commonwealth Bank of Australia and Westpac Banking Corporation from our list.

We have removed Ainsworth Game Technology from our Best Ideas list. The firm’s removal is due to persistent weakness in its domestic operations and the absence of a near-term share price catalyst. While Ainsworth’s international businesses, in particular North America, are performing well, the Australian operation’s performance is suffering from a slower-than-anticipated recovery.   We have removed Commonwealth Bank of Australia and Westpac Banking Corporation from our Best Ideas list because of weakness in the outlook for near-term earnings growth and increasing political scrutiny of Australia’s highly profitable major bank oligopoly. We are maintaining our positive long-term view but the absence of a near-term share price catalyst prompts the removal from our Best Ideas.  On the positive side we expect operating cost growth to lag revenue growth, resulting in improved cost/income ratios.

Download the Top Stock Picks report for October 2016 here