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.
Evolution Mining is under Algo Engine buy conditions.
Trader instructions
Buy: @market above $3.50 support
Sell: stop loss $3.45
Northern Star Resources is under Algo Engine buy conditions and is our preferred gold exposure.
Trader Instructions
Buy: @market above $9.00 support
Sell: stop loss $8.90
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.
Reliance Worldwide Corporation was added to our model portfolio on 29 September and it’s now up 25.3%
James Hardie Industries was added to our model portfolio on 12 October and is now up 14.6%.
REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 67% since being added in September last year.
REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.
REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.
5/11 update: REA Group delivered 22% revenue growth for Q1 FY22.
Link Administration Holdings reported FY21 profit of $112m. FY22 guidance is now low single-digit revenue growth and flat EBIT.
The downside in the share price is underpinned to a certain degree through the announced buyback of $150m.
The forward dividend yield is 2.7%.
5/11 update: Carlyle Group has returned for a renewed buyout offer of $5.38 per share which values the target at around $2.8 billion.
New ETF listing BetaShares Crypto Innovators
EXPOSURE TO THE GROWTH POTENTIAL OF THE CRYPTO ECONOMY
The crypto economy has been growing strongly, aided by the performance of Bitcoin, Ethereum
and other digital assets over the past ten years, with this growth anticipated to continue. The
companies within CRYP are seeking to build on that success.
EXPOSURE TO THE BROAD CRYPTO-EQUITY ECOSYSTEM
CRYP is designed to capture the full breadth of the crypto ecosystem by investing in pure-play
crypto companies (such as cryptocurrency exchanges, crypto mining companies and mining
equipment firms), companies whose balance sheets are held at least 75% in crypto assets, and
diversified companies with crypto-focused business lines. CRYP invests in up to 50 crypto leaders,
including Coinbase, Riot Blockchain and Microstrategy
Wesfarmers is under Algo Engine buy conditions and is a current holding in our model portfolio.
Wesfarmers now holds 19.3% of Australian Pharmaceutical Industries. The acquisition has less than two weeks left in confirmatory due diligence. The battle between Sigma and Wesfarmers for the API business and final offers will be worth watching.
Accumulate.
1/11 update: Retain long exposure and traders may decide to shift the stop loss to Friday’s low.
4/11 update
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