Joe Magyer: I’m going to put a hold on this one. Gold isn’t really our bread and butter, so I’m just going to kind of let that one sit out there.
James Gerrish: We’ve got a buy on this stock. It’s obviously had a good run up in January. They’ve got pretty cheap assets.They’re exposed over in Turkey. There’s been some concern around the delivery on those assets as they ramp up production, they’re starting to deliver on that. So it’s a buy and it should be trading around the four dollar mark in my view.
Murray River Organics
James Gerrish: Understatement. Now it’s been off the boards, it’s come back on, it’s done a restructure, it’s got new management, etc. So this is a speculative buy in my view. It’s trading around 12 cents, it’s got conservative NTA of about 16 cents. It’s got a pile of debt, so it carries about 70 million dollars worth of debt.
So the management team now is starting to deliver on that, but if they do, it’ll be multiples of where it is trading at now. But it obviously has risks involved as well. So a speculative buy at this stage, James.
Joe Magyer: No I’m going togo sell. I think it’s very cheap for very good reasons. With the balance sheet, underlying assets aren’t all that attractive. Makes me wonder about the NTA.James Marlay:Okay. Well this is your chance to pitch your idea for 2019. Can you sling us a stock that you think looks good for the year ahead?
Joe Magyer: Sure I’m going to say Afterpay Touch. Business is going great guns in the U.S. I think there’s a decent shot they might have more users outside of Australia by the end of 2019 than they have here.
James Gerrish: Yeah I’m going togo with something that’s been smacked in the start of this year. So Costa Group, large fresh fruit and vegetable grower and distributor here in Australia. They came out earlier in the year with a downgrade its earnings, I think that was more cyclical rather than structural. The markets crimp their expectations on margins, and the stock’s dropped as a result of that. So, around five dollars, Costa Group’s a buy to me James.
James Marlay: Okay. Well there it is. There’s the verdict on the fundie’s favourites for 2019.