ALGO Update: Stay short CCL

Posted on | by Todd | Leave a Comment on ALGO Update: Stay short CCL

Our ALGO engine triggered a sell signal for CCL on December 15th at $8.60.

As illustrated in the chart below, the share price has formed a “triple top” formation at the $9.10 level over the last 8-weeks.

In their last report, CCL booked a 10% rise in earnings for its alcohol and coffee business, while the soft drink, juice and energy business fell 6.5%.

We see the first level of support at $8.50, followed by $8.10.

Investors trading on our SAXO Go platform can look to sell CCL with a stop order just above $9.20

Coca-Cola Amatil

 

 

 

IAG – Buy-write Producing 10-12% Cash-Flow

Posted on | by Leon Hinde | Leave a Comment on IAG – Buy-write Producing 10-12% Cash-Flow

The key take-away from the this week’s AGM is that IAG remains confident of reducing its cost base by >A$250 million from A$2.5 billion to A$2.25 billion by 2020.

The company also reaffirmed the outlook for 10% EPS growth over the next 3 years.

IAG provides a solid buy-write opportunity with the stock retracing back from recent highs and now finding support at $7.50.

FY19 profit is forecast to be $1billiWn, EPS $0.45 and DPS $$.36, placing the stock on a forward yield of 4.8%.

 

 

 

Newcrest Firms As Spot Gold Approaches The Top Of The Range

Posted on | by Todd | Leave a Comment on Newcrest Firms As Spot Gold Approaches The Top Of The Range

The price of Spot Gold has been trading in a broad “pennant” formation since early January.

The range of this pennant are bound by the January 25th high of $1365 and the March 19th low of $1307.

We believe that the balance of fundamental and technical analysis supports the idea that the pennant will be resolved to the upside with Gold trading back above $1365.

The share price of NCM has been beaten down about 15% since a tailing dam failure at their Cadia mine in NSW in early March.

With their quarterly production report scheduled to be released on April 26th, we believe the stock has found a solid base in the $19.40/50 area for a move back into the $22.00 handle over the medium-term.

Newcrest Mining

Spot Gold

OZL Firms On Higher Copper Prices

Posted on | by Todd | Leave a Comment on OZL Firms On Higher Copper Prices

Since posting a low of $2.90 per pound on March 26th, the price of US High Grade Copper has risen over 6% and closed at $3.08 in NY Today.

This is good news for shareholders of OZL as the share price has traded back over $9.20 in early trade.

Our ALGO engine triggered a buy signal in OZL on December 12th at $8.60, and the stock is also included in our ASX Top 100 portfolio.

We see a key resistance area in the $9.35 area; once that level is broken, we expect to see solid range extension back into the $10.00 handle.

OZ Minerals

 

 

Seven Group vs Seven West Media

Posted on | by Leon Hinde | Leave a Comment on Seven Group vs Seven West Media

We have reviewed the performance of Seven Group holdings versus Seven West Media.

Whilst Seven Group Holdings is a well performing growth business, Seven West Media is the free to air television business, which faces structural headwinds.

It’s worth highlighting the performance of the recent ALGO signals and the contrast with Seven Group last displaying a buy signal within a strong uptrend and Seven West Media displaying a recent sell signal on the “lower high” formation within the ongoing downtrend.

SWM
SVW