MENU

Why Greencross Limited (ASX:GXL) is among 3 possible sells this week

Each week it’s not only pertinent to check out possible buys, but those stocks you might be holding onto that could be screaming out for you to take some profit from.

I take a look at three possible sells this week below.

Greencross Limited (ASX: GXL)

Pet care retailer Greencross Limited is an interesting one and its share price appears to be recovering somewhat from its dramatic bottoming out in May to $3.89.

Investors reacted as expected to the May FY18 trading update that included a number of write downs, which has certainly impacted overall sentiment, with Greencross shares down 1% at the time of writing to $4.43.

But while some still think there is plenty of life left in the stock I’m wondering if it might be time to cash in and take some profits.

Greencross has been unable to increase its earnings per share for some time, and although a recovery on all fronts is expected by FY19, those with skin in the game now might want to scale back their shareholding somewhat soon.

There might even be a further low point yet to buy back in at later, if you believe in the company’s long-term potential.

CSR Limited (ASX: CSR)

CSR Limited manufactures and supplies building products across Australia and New Zealand.

But with a slowdown in housing figures evident across both markets CSR may face some headwinds, with heftier than expected costs also coming into play and the combination of these factors possibly indicating CSR shares may be at the top of a cycle.

CSR shares are up 0.8% to $4.63 at the time of writing, with sector brother Brickworks Limited (ASX: BKW) also booking gains – up 0.7% to $15.75 at the time of writing.

All eyes have been on James Hardie Industries plc (ASX: JHX) in recent times when the stock went ex dividend earlier this month with shareholders expected to be paid out 31.9c per share on August 8.

James Hardie shares are down 1% to $22.43 at the time of writing – up from $20 at this time last year with some volatility in between.

CSR, and stocks across the entire building and materials sector, may be ones to watch if you’re looking to scale back your shareholding sometime soon and take some profit.

Bega Cheese Ltd (ASX: BGA)

The household name cheese maker and dairy products producer Bega Cheese Ltd produced a fairly promising half-year report back in February, with its Tatura milk business travelling along well and the acquisition of Vegemite last year also a sound strategic move.

Its share price has climbed up steadily from an April low of $6.36 to $7.37 at the time of writing, but demand has come under pressure in 2018 and it might be time to consider taking some profit in case a fall like April’s repeats itself.

While the Mondelez acquisition was a key driver in the first half of FY18, Bega will rely on its Tatura Milk business to deliver impressive growth going forward, but that market has some dominant all stars such as A2 Milk Company Ltd (ASX: A2M) to compete against.

The loss of its supply contract with Wesfarmers Ltd (ASX: WES) will hurt Bega for some time yet and the company will have to work hard to offset the loss.

One to think about cashing some in on.

If you're freeing up some funds from sell-off's it could be a good opportunity to focus on the best shares to offer up solid dividends.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited and Wesfarmers Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Brickworks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.