ANN Nears $22.00 Support Area

Posted on | by Leon Hinde

Shares of ANN reached a 52-week low at $22.06 in early trade today.

This represents a 25.5% drop since the share price traded an intraday high at $29.65 on July 27th.

ANN is currently under ALGO Engine buy conditions from $24.80.

As illustrated in the chart below, the price has reached the value target near $22.00.

 

 

BHP Is Back In The Value Area

Posted on | by Leon Hinde

BHP is under Algo Engine buy conditions from $31.20.

Shares of the mining giant have dropped over 12% during the last three weeks and have reached a value area.

Over the next few weeks, we expect the company to make an announcement about the completion of their shale divestment and its plans for the cash.

It’s widely believed that BHP will announce a special dividend and a share buyback program.

Buy The Dip In QANTAS

Posted on | by Todd

QAN released their Q1 trading update today.

With total revenue up 6.3% and forward bookings up 8% on the same period last year, we expected the share price to have risen in early trade.

However, with widespread downside pressure across the ASX today, QAN has slipped to $5.40.

This is in the middle of our recent $5.45 to $5.35 buy zone. As such, we suggest investors add to long positions with a medium-term price target in the $7.20 range.

QANTAS

 

 

Woodside Is Nearing The Buy Zone

Posted on | by Todd

Our ALGO engine triggered a buy signal for WPL into yesterday’s ASX close at $34.30.

This “higher low” structure is referenced to the intraday low of $31.90 posted on June 5th.

The crude oil market has been extremely volatile over the last few weeks as prices rallied when Saudi Arabia threatened to cut production, only to fall sharply after the Kingdom back flipped and pledged to increase production to 10.7 million barrels per day.

We aren’t bullish crude oil, but now that WPL shares have dropped over 15% in two weeks, we see scope for near-term consolidation.

We will update WPL in a future post with more specific entry levels.

Woodside Petroleum

 

ETF Watch – Cyber Security

Posted on | by Leon Hinde

Betashares ETF, HACK provides diversified exposure to the global leading cyber security companies.

We covered this name in the recent “Opportunities in Review” webinar and suggested adding it to  your watch list.

With the market sell-off, we’ve now seen HACK move into our forecast “value” range.

Investors with a medium term outlook can consider accumulating within the $6.00 – $6.50 range.

HACK

Stay Long Tabcorp Into Investor Day

Posted on | by Todd

Shares of Tabcorp are noticeably quiet in front of their Investor Day event tomorrow.

With the share price contained in a 10 cent range for the last week, it’s reasonable to expect investors to react to any forward guidance announcements tomorrow.

TAH shares are up over 6% since posting an intraday low of $4.52 on October 12th.

Our bullish case for the stock is based on continued cost savings from the merged entity and steady growth in the digital gaming sector.

TAH is part of our ASX Top 100 portfolio. We prefer the long side from these levels and look for a near-term upside target of $5.35.

Tabcorp

 

 

GPT – Higher Low In Place

Posted on | by Leon Hinde

GPT has been a high conviction “yield sensitive” stock recommended in the Monday morning “Opportunities in Review” webinar.

As the stock nears our $5.25 target, we recommend investors look to sell the $5.25 covered calls and strip-out the income through the call option and upcoming dividend.

GPT

BXB – Trading Update

Posted on | by Leon Hinde

Brambles reported 1Q FY19, which guided towards flat 1H EBIT growth.

With the stock trading 16 x earnings and 3% yield, we believe there is only limited upside to the share price in the short-term.

The attractive story here is the upcoming spin-off of the plastic pallet pooling business. We expect this to go to a shareholder vote and be finalized early next year.

Buy BXB and sell covered call options to enhance the yield.

Brambles