CYB – Long-term Value

We continue to see long-term value in CYB following the recent share price correction.

Should CYB deliver on its original cost synergy targets, (following the Virgin Money acquisition), this implies a material potential uplift to the share price valuation.

FY19 forward dividend yield is now running at 4.5%.




Aristocrat Leisure Reports FY18 Earnings

Aristocrat Leisure reported a 30% increase in FY18  after tax earnings at A$730m.

The result was slightly below consensus and recent digital acquisitions were offset by lower than anticipated margins in the Americas.

The outlook commentary remains positive and FY19 EPS growth is forecast at 10%+. Aristocrat continues to invest for the future, with an additional $100m identified for digital acquisitions.

On a forward basis, we have ALL trading on a 2.2% yield into FY19 and we see price support at $22.50

Based on FY20 PE of 18x earnings we can justify an upside price target of $26.00


James Hardie – Oversold

James Hardie is a current holding in the ASX 100 model portfolio and is under  Algo Engine buy conditions.

In the last Opportunities in Review webinar we identified a series of “GARP” or growth at a reasonable price investment opportunities and JHX was one of those.

The share price is now finding buying interest and we recommend buying JHX with a stop below the recent pivot low.

There is a price gap at $19.50 which may get filled.


Gold sell off weighs on Newcrest

As the US dollar rebounded last night, gold sold off -0.6% to $US 1214.

NCM has been under Algo Engine sell signals since forming a lower high pattern on the 25th of October.

Other large cap resource names under current Algo Engine sell signals include, Oz Minerals, RIO & Fortescue Metals.



Crown, Tabcorp & Star Entertainment

We highlight the buying interest that is starting to build in Crown, Tabcorp  and Star Entertainment.

Crown and Tabcorp are current holdings within our ASX 100 model portfolio, whereas, Star was removed under the Algo Engine sell signal back in September, when the stock was trading at $5.65

We remain buyers in Crown and Tabcorp with stop losses below the recent pivot low.