Bendigo reported earnings slightly below market consensus.
1H19 cash profit came in at $220m, however, we continue to see challenging conditions for the regional banks.
BEN and BOQ both display lower high formations and are under Algo Engine sell signals.
Downer EDI recently moved into Algo Engine sell conditions after forming a new lower high at $7.50.
Downer reported 1H FY19 revenue of $6.6bn, EBITDA of $413mn and underlying NPATA of A$146mn, up 11% on the same time last year. Full year FY19 earnings are likely to be around $330mn.
We will take another look at the buy-side of Downer on a pullback below $6.80.
AMC reported 1H19 sales of US$4.6bn, EBITDA of US$678mn and underlying NPAT of US$330mn.
These numbers reflect a relatively flat outcome, based on the same time last year. The key for growth will be the integration of the Bemis business and the $180mn in cost synergies.
Amcor should return to a 3 – 6% EPS growth environment from next year, this supports the 4.4% dividend yield.
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This coming Monday, I will run a live Webinar at 12:30pm NSW time.
I will be reviewing my high conviction ASX buy and sell opportunities from the recent algo engine and model portfolio signals.
If you’re interested in attending, or watching the video replay at a later time, then please fill in this form to register.
In the following brief video we look at the large number of sell signals in the ASX market and how to protect the downside in your portfolio, whilst staying exposed to the upcoming dividends.
Using in-the-money European covered calls. For more information please call our office on 1300 614 002.
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Amcor reports on Monday, we expect the earnings result to support the current share price rally. AMC has been a high conviction call, expressed on the blog and in the “Opportunities in Review webinar”.
Bendigo Bank, (BEN) reports on Monday, we’re cautious of this name and see the money being made on the short side.
Origin Energy (ORG) reports next Friday, we feel the LNG related income will surprise on the upside.
For more detail on the earnings season, register for Monday’s Opportunities in Review webinar.
Clydesdale & Yorkshire Bank, the UK spin-off from NAB, recently acquired Virgin Money. Their trading update for the December quarter was released overnight and there are some encouraging signs on increased cost synergy savings and improved margins in their loan books.
We see long-term value in CYB, despite the short-term volatility around the Virgin Money integration and Brexit impact.
We recommend adding Resmed to your watch list.
RMDis a global company involved in the development and manufacturing of medical products for the treatment of respiratory disorders. Global mask sales increased 10%+ on the same time last year.
Low returns from new acquisitions, disappointed investors and the soft 2Q19 earnings update resulted in the stock falling by over 10%
It’s difficult to say with certainly where buyers will step back in, but we are confident of the long-term story with Resmed.
The chart below illustrates the lower band where we see deep value for investors willing to take a 1 – 3 year outlook.
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