Origin Energy – Get Ready to Take Profit

Posted on | by Leon Hinde

Origin Energy is under Algo Engine sell conditions, however, we’ve been expecting stronger earnings to support another leg in the share price rally.

ORG reported its 1H19  with EBITDA of $1.73bn, which is ahead of market consensus. The dividend was reinstated at $0.10 per share.

We see the balance sheet improving which will lead to ongoing increases in the dividend. Based on FY20 earnings we have ORG now trading on a 5.5% yield.

We’re sellers “short term” on a push above $8.00 in ORG.

 

Crown Resorts – Upside Surprise

Posted on | by Leon Hinde

Crown Resorts remain under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

A cautious approach is to sell covered call options and run the position as an income contributor to portfolios, (10% cash flow), or the more aggressive play would be to hold the stock for the potential of a concrete takeover offer from Wynn or another rival.

Assuming 5% EPS growth into FY20, we now have the stock on a 4.3% forward yield.

 

Boral – FY19 Trading Update

Posted on | by Leon Hinde

Boral has been under Algo Engine sell conditions since late 2017. The stock made a new low last month following the company downgrading FY19 earnings.

Weather and project delays were cited as the main reasons for earnings  coming in below prior forecasts.

With the share price falling from $8.00 in February 2018, to a low at $4.40 in March, value continues to stand out in historical terms.

Based on expected FY20 earnings, we have Error with ischart shortcode. No symbol attribute defined.trading on 10x PE offering a 6% dividend yield.

Accumulating the stock throughout this year, will likely prove a long term  discounted entry level.

 

 

 

 

IPL – Opportunity Ahead

Posted on | by Leon Hinde

Incitec Pivot is under Algo Engine buy conditions and is a current holding in the ASX 100 model.

The FY19 earnings of IPL will be impacted by the Queensland floods and we’ll see the numbers revealed in the coming weeks. There’s a chance the impact will be greater than current consensus, which may result in short term selling. If this occurs and an opportunity to buy IPL sub $3.00 eventuates, we would consider this a “high conviction” accumulation play.

Add IPL to your watch list.

 

 

 

Cochlear – Algo Sell Signal 

Posted on | by Leon Hinde

Cochlear is under Algo Engine sell conditions following the lower high formation at $200. The share price has since traded lower on concerns surrounding competition in the hearing implant market.

We expect COH could suffer from increased competition in cochlear implants, sound processors and bone anchored implants. Earnings have been downgraded over next few years to reflect this.

JP Morgan – 1Q Earnings

Posted on | by Leon Hinde

NYSE:JPM is under Algo Engine buy conditions and is a current holding in  our Dow 30 model portfolio.

JPM reported March quarter earnings with revenue up 5% to $29.9b and profit also up 5% to $9.18bn.

Growth was most evident in the group’s retail lending business, where profit surged 19 percent to $3.96bn.

Investment banking and asset management divisions were weaker.

Overall, J.P. Morgan’s results show the firm is still benefiting from the Fed’s four rate hikes last year. It remains our preferred US bank stock with strong buying support near the $105 level.