In this section we provide readers with three stocks that have attracted the interest of the broking community or the ‘herd’. Broker recommendations tend to be biased and highly optimistic. We try and breakdown these barriers and give our own honest opinion. It is important to keep in mind that technical analysis is only one part of the investment process and any recommendations do not give consideration to the underlying fundamentals of each business. Sydney Airport (SYD) – $6.78 – Last week Sydney Airport posted record traffic numbers. It was another stellar year for the company which saw 43.3 million passengers though our three terminals, an increase of 3.6% compared to 2016. International passenger numbers were outstanding growing by more than one million, or 7.2% on 2016. Strong growth was underpinned by capacity development predominantly on the Middle Eastern, Asian and US routes. International passenger traffic in December increased 5.6% compared to the prior corresponding period (pcp).  Domestic passenger traffic also performed well growing 2.1%, resulting in 3.5% growth in total passenger traffic. This strong December result was driven by both seat capacity growth and stable load factors. Broker View:  Macquarie (OUTPERFORM $7.46) – The broker has a positive review of the company. It says Sydney’s end of year traffic numbers were strong. That means there is a big possibility that upgrades will flow through this year as confidence in the price path and traffic growth comes to light. Unconventional View: We agree with Macquarie. We’ve been bullish on Sydney Airport for quite some time, in-fact we hold the stock in our model portfolio. SYD’s traffic numbers were outstanding. The company had a stellar year which saw 43.3 million passengers come through its terminals. That’s a rise of 3.6% from the previous year. The highlight was a rise in the number of Chinese travellers that prompted two Chinese airlines to increase the frequency of their flights to Sydney. That’s a huge plus. This increases the number of Chinese nationals travelling through the airport and will only continue to rise throughout this year. The two airlines that have come on-board are Tianjin Airlines and Hainan Airlines. SYD now operates services to 17 Chinese cities which makes up 90% of all travel on the China-Sydney route. SYD are due to post their results on the 21 February. We think the result will be a beat on expectations driven by strong international growth and solid guidance. On the StockOmeter the company rates extremely high at 86. That’s because its ROE is high and rising, its dividend is high and its EPS is high. It loses a few points for high gearing. But we think that’s ok…

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