Telstra

Posted on | by Leon Hinde

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

We see buying support at $3.00 and highlight the short-term indicators have now turned positive. 

TLS goes ex-div $0.05 28th August. 

Call our office on 1300 614 002 to discuss the derivative strategy to enhance the income return. 

Coles – Value Emerging

Posted on | by Leon Hinde

Coles Group is under Algo Engine buy conditions and the recent pullback to $15.00 provides an attractive entry-level.

Coles reported March quarter sales with total supermarket sales growth up a record 14%.  With the stock trading on a forward dividend yield of 3.5%, we expect the share price to remain well supported.

Buy Coles and consider selling a covered call option to enhance the income return.

For more details on the option strategy, please call our office on 1300 614 002.

Alumina

Posted on | by Leon Hinde

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

We see price support building at $1.38 and suggest traders watch the short-term momentum indicators and stay “long” AWC whilst the indicators trend higher.

Stop loss on a break below $1.38.

CIMIC Group

Posted on | by Leon Hinde

Cimic Group

CIMIC provided no update on 2020 guidance, but reported its 1Q20 result with revenue of A$3.3bn, down 3% on the same time last year. NPAT was down 8% to $166mn.

We forecast 2020 full year NPAT to be in the range of A$700 – A$750mn.

Buy above $22.50 support.

Aristocrat Leisure

Posted on | by Leon Hinde

Aristocrat Leisure has now switched to Algo Engine sell conditions and has been removed from our ASX 100 model portfolio.

Aristocrat delivered 1H20 net profit, (NPATA), of A$368mn which was down 13% on the same time last year. Growth in digital earnings was not enough to offset weak revenue in the Americas.

We’re not willing to look at shorting ALL as we see a normalization of the business conditions by 2022, we’ll revisit this name should we see a “buy on the dip” opportunity later this year.

NRW Holdings

Posted on | by Leon Hinde

ASX:NRW has been among the best-performing stocks over the past few sessions following a strong trading update.

NWH indicated they have a strong pipeline of new projects as an acceleration of public infrastructure spending occurs.

Based on FY21 earnings of $160mn we have the stock on a forward yield of 4.1%.

BHP

Posted on | by Leon Hinde

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

Declining port stocks and concerns over Brazil supply support a positive outlook for iron ore prices. A combination of strong iron ore prices and the recovery in the energy complex should continue to support the BHP share price.