Lendlease – Buy Signal
Lendlease is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The stock is also part of our ASX “high conviction” portfolio.
Orica – Buy Signal
Orica is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Goldman Sachs raised $500 million in acquisition funding for ORI via an institutional placement.
The funds will be used for the acquisition of Exsa, Peru’s No. 1 manufacturer and distributor of industrial explosives and provide greater balance sheet flexibility.
We see strong buying support at $20.
CBA & CPU – Time to Cover the Shorts
Our short positions in Commonwealth Bank of and Computershare have now switched to Algo Engine buy conditions and we can see approaching support levels in the charts.
CPU at $14 – cover short exposure
CBA at $77 – cover the short exposure.
New S&P/ASX All Technology Index
The new S&P/ASX All Technology Index highlights a unique and
an innovative segment of the Australian market.
The index is weighted by float-adjusted market cap, subject to a 25% single stock cap, and is rebalanced quarterly.
From the above list, the following companies are under buy conditions, Xero, Computershare, Afterpay, RE Group, NextDc & Appen.
Sonic Health – Value Emerging
Sonic Healthcare is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
We see value emerging and upgrade SHL to accumulate.
TCL – Buy
Transurban is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
As TCL trades closer to $15 we see a compelling buying opportunity.
Short “High Conviction” Ideas Revisited
Over the past month, we’ve focused on a handful of short positions. Commonwealth Bank of, Computershare, Perpetual, Platinum Asset Management and IRESS.
We continue to see weakness across these names.
ASX – Buy “High Conviction”.
ASX is under Algo Engine buy conditions.
Higher levels of equities and futures trading, along with growing demand for its data services, have lifted ASX Limited’s earnings and revenue over the half year. Net profit 2H19 to December was up 1.8% to $250mn on revenue of $454mn, which was up 7%, EBIT rose 6% to $315.
We expect growth to remain in the 1 – 4% range and we see the stock as a “high conviction” buy on the dip during the current market sell-off.
Cleanaway – Buy
Cleanaway Waste Management is a holding in our “high conviction” ASX portfolio.
1H20 earnings were above forecasts with 2.5% growth on the same time last year.
Buy at $2.20
Beach Energy – Buy
Beach Energy is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Buy BPT in the $1.80 to $2.10 price range.
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