Lendlease – Recovery Opportunity!

Lendlease is under Algo Engine buy conditions.

Last week’s profit warning could be the first stage of the
new CEO’s company reset. A review, covering the restructuring of operations and impact of market uncertainties will likely lead to further divestment of less-core businesses and re-prioritization of the existing 23 urbanization projects.

FY22 NPAT is forecast to increase, although still remind 20% below pre-pandemic levels. LLC will provide the FY21 results on 16 August.

Our preference is to own LLC via long call options. For further details please call 1300 614 002.

A2 Milk – Call Options Jump 200%

The New Zealand Overseas Investment Office (OIO) has given approval to A2Milk’s plan to buy 75% of Mataura Valley Milk.

Full-year 2021 sales are expected to be between $NZ1.2 billion to $NZ1.25 billion and EBITDA margins will fall from 30% to 12%.

We’ve closed out the August $6.00 strike calls at $0.92 after purchasing them in early June at $0.30.

Tabcorp – Demerger

Tabcorp Holdings will demerge its lotteries and keno business. The lotteries and keno business has a low capital intensity and a track record of strong cash flows.

Wagering & Gaming Co will remain the largest gaming services provider in Australia.