BUY Wesfarmers (WES) WES recently announced its intention to demerge its biggest division Coles. The demerger makes sense. The performance of Coles has been underwhelming and it’s in a highly competitive space. Too much of Wesfarmer’s capital was being wasted on Coles. A simplified and easier to manage Wesfarmers can now allocate a higher proportion of capital to the rest of its businesses to improve returns, become more nimble and seize new opportunities. Treasury Wine Estates (TWE) Shares in the iconic Australian wine company are at all-time highs following a solid interim result. The company has only started to scratch the surface in China. Exports can grow exponentially as the Chinese middle class expands. The status conscious Chinese are gradually drinking more wine as a sign of status and prestige. Australian wines are still under-represented in China, so there is enormous upside potential for TWE to capture this market. HOLD Synlait Milk (SM1) Is an innovative NZ based dairy processing company that produces a range of nutritional milk products. SM1 has long-standing links with China through its shareholders Bright Dairy and customer a2 Milk. With demand for clean and green food set to rise, infant formula manufacturers such as SM1 is in prime position to reap the benefits. Shares have come off following Nestle’s entry into…

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