Lendlease – FY22 Outlook

Posted on | by Leon Hinde

Lendlease has warned of a challenging year to come as COVID-19 puts a dampener on development and construction globally.

FY21 net profit after tax of $377 million was in line with the company’s guidance, largely due to divesting its loss-making engineering and services.

We expect to see an improvement in earnings towards the end of FY22.

Note: Buying LLC is a high-risk turnaround story, an alternative to buying the stock is the purchase of $11 March call options. Call 1300 614 002 to learn more about this strategy.


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.

Pexa – Accumulate

Posted on | by Leon Hinde

Pexa Group has helped transform conveyancing from a clunky paper-based process into a digital one. PXA was recently listed on the ASX with a market cap of $3bn.

FY21 underlying earnings doubled to $110 million and analysts are forecasting a further 20% increase in FY22.

CBA & Link are major shareholders.

ASX 200 Resources Fund

Posted on | by Leon Hinde

OZR:ASX is under Algo Engine buy conditions and we anticipate buying support to increase within the accumulation range of $10.50 to $12.50.

A sector sub-index of the S&P/ASX 200 Index, this index provides investors with exposure to the Resources sector of the Australian equity market as classified as members of the GICS® resources sector. Resources are defined as companies classified in the Energy sector (GICS® Tier 1), as well as companies classified in the Metals and Mining Industry (GICS® Tier 3).

Northern Star 432% Gain

Posted on | by Leon Hinde

Northern Star Resources has been in our model portfolio since 2015 and has now been sold for a 432% gain.

The Algo Engine has identified a lower high formation which is enough to remove it from the model for the short term. I expect to see it added back again in 2022.

GOR shifts to the top of the preferred gold holding list, with the momentum structure remaining positive.

The above chart shows the original entry signal from 2015 and the subsequent buy signals, as the 5-year rally developed in NST.