BOQ Is Back Below $12.00

Posted on | by Todd | Leave a Comment on BOQ Is Back Below $12.00

Our ALGO engine triggered a sell signal for BOQ at $12.74 on February 27th.

The technical “lower high” price structure is related to the November 30th high at $13.20 and the November 1st high at $13.40.

We expected the $13.10 resistance level to hold before reverting back below the $12.00 handle.

CFD traders who took this trade can look to cover short positions in the $11.90/95 area.

We maintain our short bias on the banking sector in general, but consider BOQ mildly over-sold.

Bank of Queensland

 

 

Bega Is Looking Better

Posted on | by Todd | Leave a Comment on Bega Is Looking Better

Shares in Bega Cheese Ltd are up .75% at $6.75  after UBS released a positive market note on the company over the weekend. 

BGA had dropped about 8% since the half-year results released  last Wednesday, despite an improvement in all key financial metrics over the previous corresponding period.

However, it seems the market might have been too harsh on the dairy company.  Bega’s first-half normalised EBITDA of $70 million exceeded the $64 million forecast by the street.

We see scope for BGA to reach $7.42 a share and find the stock attractive at the current price, based on 20X earnings.

Our ALGO engine triggered a buy signal in BGA at $6.81 on January 16th. BGA will go ex-dividend tomorrow paying 5.5 cents per share, fully franked.

Bega Cheese

 

 

ALGO Update: LLC Is Approaching Overbought Territory

Posted on | by Todd | Leave a Comment on ALGO Update: LLC Is Approaching Overbought Territory

Our ALGO engine triggered a sell signal in LLC into the ASX close at $17.88.

The “lower high” pattern is referenced to the October 17th high of $18.70.

Shares of LLC have risen about 16% since posting solid H1 results three weeks ago, which included a $500 million share buyback scheme over the next 12 months.

However, the internal momentum indicators are now approaching overbought territory.

We see strong technical resistance in the $18.15/20 area and expect the share price to revert back to the $17.20 support area over the near-term.

Lend Lease

 

ALGO Update: Buy Fortescue Metals

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Shares of FMG are flat after the company announced a refinancing package which will lower their annual borrowing costs by more than US$130 million per year.

The package is in the form of US$ 500 million of senior unsecured notes at 5.125%.

This is a significant improvement to FMG’s capital structure, reflects confidence from senior management,  and should give the share price a boost over the near-term.

FMG is part of our ASX Top 50 model portfolio and our ALGO engine triggered a buy signal at $4.70 on May 15th.

We prefer the long side of FMG from $5.00 and suggest that inventors add the stock to their portfolio holdings.

Fortescue Metals Group

 

 

 

BlueScope Shares Retreat On US Tariff Threat

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Shares of BlueScope Steel rose to an eight-year high of $16.80 just after the ASX open today.

However, after Mr Trump’s announcement earlier to impose sweeping tariffs on imported Steel and Aluminium, BSL shares have slipped back to $16.35.

In its current form, the legislation would put a 25% tariff on the cost of imported steel to the US, regardless of the country of origin.

BSL is the sole exporter of Aussie steel to the US market which is worth about US$130 million per year.

Our ALGO engine triggered a buy signal for BSL on February 6th at $14.15.

At this point, we suggest that investors either exit their long positions outright, or look to sell the $17.00 calls into April for 42 cents to enhance portfolio returns.

BlueScope Steel