QBE – Algo Buy Conditions

Posted on | by Leon Hinde

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

Recent earnings update shows QBE delivering ahead of consensus. Growth should remain strong and upgrades to 2020 earnings are now likely. The balance sheet remains robust, with A$1bn buyback over three years being executed.

Higher yields in US treasuries are helping to lift investor sentiment towards QBE and financial stocks in general.

Buy QBE and look for a move into the $13.50 price range.

Northern Star – Buy Signal

Posted on | by Leon Hinde

Northern Star Resources is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.

Gold remains under pressure as US yields push higher during the current “risk on” phase in the market. We are also experiencing selling in the “yield sensitive” securities such as consumer staples, utilities, infrastructure and REITs.

We now forecast price support developing in NST near $8.00.

 

NAB – Algo Buy Conditions

Posted on | by Leon Hinde

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

NAB reported FY19 cash earnings of $5.1bn and opted to operate a discounted DRP as well as partially underwrite the DRP, instead of discounted equity raising, as was the case with WBC.

ANZ, WBC, NAB and MQG all offer yield support but little in the way of near -term earnings growth.

 

 

 

Downer EDI

Posted on | by Leon Hinde

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

The company reaffirmed FY20 net profit after tax guidance of $365m, which represents 7% growth on the same time last year.

Dow trades on a forward yield of 3.7%.

We see value in accumulating the stock within the $7.50 – $8.00 price range.

 

 

Amcor – High Conviction Buy

Posted on | by Leon Hinde

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

Amcor will provide an investor update on the 8th of November.  We anticipate the commentary around cost synergies, post the Bemis acquisition and the share buyback will help renew buying interest in the stock 

Buy Amcor for a move back towards $15.50