MENU

3 shares I would probably sell this week

Looking to make some room in your portfolio for some new buy-ins?

I think these 3 stocks are possible sells this week.  Here’s why.

Metcash Limited (ASX: MTS)

Wholesale distribution and marketing company Metcash Limited is still smarting from the announcement its FY18 results would recognise a $352 million impairment to goodwill and other net assets in its supermarkets and convenience segment.

Citi retained its sell recommendation on Metcash back in late June with a $2.55 price target on its shares, which opened today at $2.58.

Citi didn’t see much merit in Metcash’s $125 million off-market share buyback at a price discount between 8% and 14% with a fixed capital component of 61c and the remainder a fully-franked dividend.

And with the loss of its major South Australian customer – Drakes Supermarkets – Metcash sure has a lot of challenges on the horizon at present, no doubt leaving many investors wondering if they should take some profit soon.

With its current price still slightly above Citi’s target it might be time.

Retail Food Group Limited (ASX: RFG)

Challenging market conditions continue to plague the beleaguered Retail Food Group – with its share price bottoming out – down 90% from this time last year to sit at 43c per share at the time of writing.

If you haven’t already jumped ship on Retail Food Group it might be time.

The company is considering asset sales to help solve its debt issues and has UBS on the case to oversee the situation. Nothing good is going to happen here anytime soon unless a significant capital raising is undertaken.

Selling out this low does defy the age-old “buy on a low, sell on a high” advice, but it’s unclear whether another high will ever eventuate for Retail Food Group given its current condition.

CSR Limited (ASX: CSR)

Building approvals are down across Australia, and when your core business is to manufacture and supply building materials, this isn’t a good sign.

Overall market trends are playing against CSR at present, and its share price could be in for even greater declines, despite already dropping 22% from a 52-week high of $5.74 in early May to $4.47 at the time of writing.

With such industry headwinds, it’s likely the whole building materials sector will suffer, and those who have interests in Brickworks Limited (ASX: BKW) and James Hardie Industries plc (ASX: JHX) should be doing their due diligence on these companies too to figure out if there is profit taking opportunity in sight.

Still need some blue chip stock ideas to round out your portfolio?

Check our our top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!