Month: November 2017

Recent Algo Engine buy signals in AMC and AMP are now presenting a buy-side opportunity.

Sonic Healthcare has found support at $21 and now provides a low risk income trade for client portfolios. Buy at the current price and sell a covered call option into June 2018.

Combined with the February dividend, we’re  generating 10 – 12% cash flow on an annualised basis.

In May this year we had an Algo Engine buy signal on ING at 3.50, since then the stock has rallied to $3.90 and has recently retraced back to $3.50 – 3.60.

The price action is likely to retest $3.50 and begin building a new base.

NAB delivered FY17 cash earnings of $6,642m, just below consensus estimates.

2H17 dividend of 99¢ was flat on the pcp and total annual dividends in FY18 will be $1.98, placing NAB on a forward yield of 6.2%.

NAB has a dividend payout ratio of ~79%, which may prove to be unsustainable. 

The market may have concerns following NAB announcing additional investment spend of $1.5bn over the next three years and a large restructuring provision in FY18.

WPL has traded to our medium-term price target and we recommend taking profit.

NCM is finding support as US interest rate expectations re-adjust lower.

SYD & TCL are rallying ahead of their December dividend payment period.

As the market re-prices for a slower trajectory in the increase of US interest rates, yield sensitive sectors are finding renewed buying interest.

Our Algo Engine remains long SYD & TCL. We recommend covering the position with an out-of-the money call option.