Capital harvest Brokers Limited believes the New Zealand Market, gives investors access to secure and long- term investment opportunities. While small in size, companies represented in the NZX carry heavy global weightings and as such opportunities for capital gains and a long-term view on dividend income past the reach of the current Covid restrained economic outlook. The companies below have been identified as strong investment opportunities. While all investment comes with risk, we believe in a long term, fundamental and Qualitative approach to analysing potential investments.
With that in mind, we look for opportunities less effected by Covid restrictions, or in fact those that may benefit from it, our long-term view is that worst is yet to come for global economies, however there are still a number of opportunities to provide, security and long term gains.
A2 Milk Company – ATM.nzx / A2M.asx
Share Price – as at 01/09/2020
ATM: $18.47 NZD
A2M: $16.86 AUD
The a2 Milk Company is a premium dairy company marketing and selling products that only contain the a2 protein. A genetic test developed by a2 determines whether a cow produces the a2 or a1 type protein in its milk. The test allows a2 to license milk producers once proven their cows produce only a2 beta-casein protein in their milk. They operate globally throughout Australia, New Zealand, China, the United Kingdom, and the United States. Continuing to grow Market share in Both Australia and the Greater China area, A2 Milk Financial results for 2020 continue to impress, Revenue up 32.8% and earnings per share of 52.39c continue to show the strength of the company. Its balance sheet possessions great strength with $854 Million cash on hand. Current share price is trading down on all time highs, while allowing for short term pains with distribution and warehousing, the share price represents significant opportunity.
For an up to date share price, or for more information please contact a Capital Harvest Advisor.
Genesis Energy Ltd – GNE.nzx
Share Price – as at 01/09/2020
GNE: $3.02 NZD
Target Price: $3.68 NZD
Genesis Energy Limited is an energy company involved in the generation of electricity, retailing and trading of energy, and the development and procurement of fuel sources. Recently announced closure of Tiwai point smelter, the aluminium smelter in Southland New Zealand, operated by Rio Tinto, positions GNE as relatively unaffected and in a good position amongst local Gentailer. Genesis has significant diversification into production, including renewable. Recent dry periods locally have lowered forecasts on production through hydro, however we will expect a strong target price of $3.68 NZD in the coming period, as local investors move to security of funds over larger capital gains.For an up to date share price, or for more information please contact a Capital Harvest Advisor.
