The company is currently authorised to purchase up to 32,372,676
shares under the buy-back. The remaining shares that may still be
bought under the buy-back would be up to 25,659,911.
Support at $20 is now building and the short-term indicators have turned positive.
AbbVie is now under Algo Engine buy conditions. We’re looking for buying support to build within the $85 – $95 range.
AbbVie reported Second-Quarter 2020 earnings with worldwide net revenues $10bn, an increase of 26% on a reported basis, or a decrease of 5% on a comparable operational basis, due to the COVID-19 pandemic.
AbbVie announced it completed its acquisition of Allergan, which was acquired on the 8th May, 2020.
Bega Cheese remains under Algo Engine buy conditions and we highlight the recent higher low formed at $4.40.
1H20 earnings are posted below and we’d expect to see improvement in the 2H20 numbers.
ETFS S&P Biotech is now under Algo Engine buy conditions.
CURE ETF offers investors exposure to US biotechnology companies. These are companies engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Examples include the development of immunotherapy treatments and vaccines to treat human diseases.
CURE aims to provide investors with a return that, (before fees and expenses), tracks the performance of the S&P Biotechnology Select Industry Index. CURE uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index. It is equal-weighted, meaning each holding makes up the same portion of the portfolio and therefore, contributes equally to the overall performance.
Brambles is now under Algo Engine buy conditions and has been added into our ASX 20, 50 & 100 model portfolios.
Seek is under Algo Engine sell conditions and we remain on the short-side of the trade.
Two negatives we focus on;
1}Surprise need to raise money in the bond market; and
2} Announcing they were dumping the final dividend in a bid to preserve capital, blaming the “uncertain environment” for the decision.
CSL is under Algo Engine buy conditions and remains one of the best-performing stocks in our ASX model portfolios.
The technical indicators show the recent higher low formation with support at $270.
Commonwealth Bank of remains under Algo Engine sell conditions and we see resistance building near the $74 price level.
CBA reports FY20 earnings on 12 August, at which time the market will focus on CBA’s dividend and any capital management commentary. Consensus expectations are for earnings to be $7.8bn, (down 10% on 2019 numbers), and the 2H20 dividend to be cut by 50%.
We remain on the short side of the CBA trade.
Q2 earnings for the S&P 500 are expected to decline by 44%, the worst drop since the fourth quarter of 2008, when profits fell 67%.
This week we’re watching the following results.
Monday AIG
Tuesday Disney, AllState and Fox
Wednesday Metlife
Thursday Bristol-Myers.
Friday
NASDAQ remains above the 10-day average.
Pro Medicus is under Algo Engine buy conditions. We highlight the buying support which is now building near the $22 – $23 level.
NOTE: Leading health imaging company Pro Medicus (ASX: PME) today announced its full year results will be released on Thursday 20 August 2020.
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