JBH – (BUY)
JB Hi-Fi’s stock went on a tear last week, gaining 10.4%. JBH confirmed its 2016 guidance of A$3.9 billion in sales and net profit of A$143-A$147 million, which buoyed investor confidence in the stock. This was compounded by the unexpected rate cut decision by the Reserve Bank of Australia (RBA) on Tuesday, raising expectations of increased consumer spending. The Federal Budget announcement of new tax cuts to small businesses, and news that JBH has taken over Dick Smith’s locations in Sydney Airport, also helped the stock.
JBH looks to have strong momentum behind its upward move as it closed at an all-time high of A$24.25 on Friday. Last week, it managed three consecutive closes above its upper Bollinger band, and also closed above technical resistance at A$23.60.