We add IAG to our “high risk” recovery basket, which also includes CIM & A2M.
We expect IAG to see improved earnings into FY22 & FY23. It’s likely we’re nearing the inflection point, where investors begin pricing in the anticipated recovery.
Buy IAG with stops below $4.60
Ampol has reported its financials for the 12 months ending 31 December 2020, with full year earnings of $401 million. Earnings were down from $607 million in the year prior.
1Q21 EBIT was A$150mn, but included an A$18mn FX gain.
ALU:ASX is under Algo Engine buy conditions and has now rallied 20% from the recent low. Our interest in the business has increased and the stock is now under review.
RSG:ASX is under Algo Engine buy conditions and is a high-risk recovery opportunity.
RSG enters our radar, supported by a positive back drop for gold prices and the recent announcement that the Mali mine is now projected to produce between 250,000 to 300,000 ounces of gold.
15/4/21
Since writing the above post RSG has rallied 30%. The company has announced that Bibiani’s mining license has been restored.
Deleveraging of RSG’s balance sheet remains a priority and will be reliant on operational cash flows to achieve this.
RSG is a high risk gold play, whereas NST and GOR offer less balance sheet risk.
Cleanaway Waste Management is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Cleanaway will move forward with the buyout of just the NSW assets of Suez Australia which it had negotiated as a fallback deal for $501 million.
Cleanaway’s plan to acquire Suez Australia’s business is now off the table.
We recommend accumulating CWY on any weakness into the $2.30 – $2.40 price range.
Amcor is under Algo Engine buy conditions. We expect buying support to increase around $14.50 – $15.00
CURE:AXW is under Algo Engine buy conditions and the current pullback provides another buying opportunity.
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Northern Star Resources is under Algo Engine buy conditions. The expected rally from sub $10 is now underway.
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