Woodside – Algo Buy

Posted on | by Leon Hinde

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

Woodside is expected to issue almost 1 billion new shares to pay for the acquisition of BHP’s petroleum business under the $41bn merger deal. BHP shareholders will receive shares in WPL and we may see some overhang of selling for the market to absorb, however, we view the deal as a vote of confidence in the new merged entity, given BHP’s decision to merge their energy assets rather than pursue a cash deal.

  • Woodside will acquire BHP’s oil and gas business in a proposed $41 billion merger deal
  • The merger will relieve pressure on Woodside whose existing assets are depleting

TWE – Buy

Posted on | by Leon Hinde

Treasury Wine Estates is under Algo Engine buy conditions.

TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.

FY22 EBIT growth is forecast to be in the mid to high single-digit range.

8/11 update: Buy above the $11.50 support range and place the stop loss below the recent pivot low of $11.48.

18/11 update:

TWE – Buy

Posted on | by Leon Hinde

Treasury Wine Estates is under Algo Engine buy conditions.

TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.

FY22 EBIT growth is forecast to be in the mid to high single-digit range.

8/11 update: Buy above the $11.50 support range and place the stop loss below the recent pivot low of $11.48.

18/11 update:

Bega – Algo Buy

Posted on | by Leon Hinde

Bega Cheese is under Algo Engine buy conditions.

The FY21 result beat forecasts on a number of key metrics, with FY21 sales +38%, underlying EBITDA increased +38%, and NPAT up 24%.

FY22 BGA is targeting further earnings growth and to realise the synergies from the LD&D acquisition.

BGA buying support to increase above the $5.00 support level.

1/11 update: Bega has rallied from the $5.26 entry-level and the current higher low at $5.32 is likely to see strong buying support.

18/11 update: BGA is now trading $5.70 and the price action remains above the 10-day average.