Amcor – Opportunity Builds

Posted on | by Leon Hinde

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

The stock made a high last week at $16.75 and has since corrected back to $15.50.  Investors should add AMC to their watchlist and we suggest looking for an entry level once the short term indicators turn positive.

 

 

Flight Centre – Valuation Review

Posted on | by Leon Hinde

Flight Centre Travel Group is under Algo Engine buy conditions and is a current holding in the ASX 100 model.

It is, however, in negative returns. We hold 38 stocks in the ASX100 model, with only two names showing negative returns. AGL down 1.15% and FLT down 17%. Otherwise, all holdings are performing positively.

So, can FLT recover from here? Flight Centre is on track to deliver within the FY19 guidance range of $335-360mn in earnings before tax. This places the stock on 18x earnings and 3.8% yield.

We see technical support at sub $40 and are sellers into the high $40 price range.

S&P500 – Technical Review

Posted on | by Leon Hinde

The S&P500 and Dow Jones indices are under sell conditions and we’ve now had a close below the first of the short-term momentum indicators in both indices.

The NASDAQ shows greater relative strength and remains under buy conditions, although we’re beginning to see deterioration in some of the  market “favorites” such as Netflix, Tesla & Nvidia.

 

BHP – Valuation Review

Posted on | by Leon Hinde

BHP Group is trading near fair value and investors should consider selling $42.18 Euro call options into Sept, to add to the cash flow returns.

The highlight of the June quarter production update was petroleum volumes outpacing estimates. Iron ore and copper were in line, while coal disappointed.

FY20 revenue is forecast to be $46bn and net profit $12bn, supporting a 5.5% yield.

The surging iron ore prices creates the potential for BHP to announce a special dividend when it reports its full year result next month.