Invest
IML’s top stock picks for 2020
A strong rally in sharemarkets over 2019 means it’s time to be more selective, according to IML.

IML’s top stock picks for 2020
A strong rally in sharemarkets over 2019 means it’s time to be more selective, according to IML.

The asset manager highlighted the Coles Group and Telstra as some of its top picks for 2020, saying the companies are poised for a turnaround.
IML received Coles shares as a result of the Wesfarmers demerger but made the decision to increase its weighting sizeably after the stock listed – something they say was a wise decision given the company’s shares have rallied more than 30 per cent over 2019.
The company is also focused on updating work practices and policies at a number of “outdated and poorly located” distribution centres across the eastern seaboard.
“While the full impact of these efficiencies will not be seen until 2023-24, we estimate that the company can achieve cost savings of around $1 billion per annum once the new centres are up and running,” IML said in a note.
“In addition, Coles is rolling out a new store format which, to date, has shown early promise.”
IML also highlighted Telstra, saying the company had weathered Optus’ aggressive price cuts by lowering its prices. While that hurt its earnings, it helped the telco maintain its subscriber numbers.
The company is also set to be the market leader in the rollout of 5G technology, something IML believes will help drive profits.
Of course, not all of IML’s picks have performed as well.
Pact Group, the largest rigid plastics packaging company in Australia, saw its shares fall 25 per cent over 2019 as the company was impacted by higher input costs.
But IML hopes to see turnaround there as well as input costs normalised due to new global supplies and the stabilisation of electricity supplies.
“At IML, we continue to look for and invest in companies that fulfil our stock selection criteria, companies that we believe represent value and that we believe should do well in the next three to five years,” IML said.
“Stocks that fall into this category may not always be popular with many other investors – but if we assess a company to be of sound quality and good value, we are prepared to be patient and own it for the long term.”

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more