Australian Shares

Eight housing and consumer stocks to short

David Llewellyn-Smith
Friday 12 June 2015
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The AFR has another of those terrible Deutsche stock stories today, “Eights housing and consumer stocks to buy”:

  • Asciano. The stock is cheap (below 15x), and offers decent growth and a good yield (around 4 per cent).
  • Boral. The closest to a large cap pure-play housing exposure on the Australian market.
  • Echo Entertainment. Domestic gaming trends continue to improve, in both Sydney and Queensland.
  • Fletcher Building. See Boral
  • Flight Centre.
  • Harvey Norman. Housing leverage as well as exposure to improving consumer spending and offers a good div yield.
  • REA Group. The stock has de-rated substantially, with the PE ratio now at 21x vs the 2-year average of 30x.
  • Stockland. Below market PE and superior dividend yield on offer.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.