U.S. Home Building Stumbles

Posted on | by Leon Hinde

U.S. home building unexpectedly fell in September and permits dropped to a one-year low amid acute shortages of raw materials and labor, supporting expectations that economic growth slowed sharply in the third quarter.

A separate report from the Mortgage Bankers Association on Tuesday showed mortgage applications for new home purchases decreased 16.2% in September from a year ago.

Permits for future home building plunged 7.7% to a rate of 1.589 million units last month.

Despite the recent weak data the SPDR home builder ETF remains well supported.

CIMIC – Buy

Posted on | by Leon Hinde

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high-risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

Update 21/10: CIMIC Group today announced its financial result for the nine months to 30 September 2021:
 NPAT of $303m for 9m of 2021
 Group revenue growth of 9.2%2 YoY to $10.9bn, revenue increase of 6.8% YoY to$7.1bn
 Revenue growth achieved in Australian Construction and Services
 EBITDA, PBT and NPAT margins resilient at 9.6%, 5.1% and 4.3% respectively, despite 3Q21 COVID-19 impact

VanEck Global Healthcare Leaders ETF

Posted on | by Leon Hinde

VanEck Vectors Global Health Leaders is under Algo Engine buy conditions.

HLTH invests in a diversified portfolio of leading international developed markets (ex-Australia) companies with the best growth at a reasonable price (GARP) attributes from the global healthcare sector with the aim of providing investment returns, before fees and other costs, which track the
performance of the Index.

US Earnings

Posted on | by Leon Hinde

Monday, October 18: State Street

Tuesday, October 19: Johnson & Johnson and Procter & Gamble

Wednesday, October 20: Verizon, Biogen, and IBM.

Thursday, October 21: Dow, Intel, and Snap

Friday, October 22: American Express and Honeywell