US Durable Goods

Posted on | by Leon Hinde

U.S. business equipment spending strong even as new orders flat in July
New orders for key U.S.-made capital goods were unexpectedly flat in July amid supply constraints and a shift in demand to services, suggesting that business spending on equipment could slow in the second half after robust growth over the past year.

Bega – FY21 Earnings

Posted on | by Leon Hinde

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

Accumulate within the $5.00 – $5.25 price range.

Update: 27/8 Bega FY21 Earnings release: Performance highlights

 Reduction in normalised EBITDA to net debt leverage
ratio from 2.35 times to 2.25 times
 Normalised EBITDA increased by 38% to $141.7 million
 Statutory EBITDA increase by 108% to $182.7 million
 Operating cash flow $111.4 million

Reece – FY21 Earnings

Posted on | by Leon Hinde

REH achieved a 4% increase in sales to $6,271m, 11% increase in underlying EBITDA to $720m and underlying NPAT increased 25% to $285m.

Reece beat market consensus across all numbers, however, the valuation is looking stretched at 44x earning.

Be patient and wait for the next Algo Engine buy signal.

Ansell – FY21 Earnings

Posted on | by Leon Hinde

ANN:ASX is under Algo Engine sell conditions, however, we’re expecting a switch to buy conditions in the near term.

FY21 results were at the low end of guidance, with EPS US$1.92 on record sales of US$2bn.

FY22 is likely to be 5 – 10% below FY21 and the downgrade is driving the current share price correction. Be patient with this opportunity and wait for the Algo Engine to trigger a buy.

The 3% yield is well supported and buying interest will rebuild as the valuation becomes more attractive.