Resmed – Q4 Earnings

Posted on | by Leon Hinde

ResMed is under Algo Engine buy conditions and is a current holding in our ASX top 100 model portfolio.

RMD announced 4Q20 earnings, which were better-than-expected, underpinned by robust COVID-19 ventilator demand. However, modest revenue growth is expected in the near-term, implying limited near-term growth.

The 40x PE multiple looks too rich for the current earnings outlook. The forward dividend yield is 1%.

We suggest waiting for the next Algo buy signal to re-enter RMD on a pullback. Our new entry target is $22.

CIMIC – Buy

Posted on | by Leon Hinde

Cimic Group

The company is currently authorised to purchase up to 32,372,676
shares under the buy-back. The remaining shares that may still be
bought under the buy-back would be up to 25,659,911.

Support at $20 is now building and the short-term indicators have turned positive.

AbbVie – Buy Signal

Posted on | by Leon Hinde

AbbVie is now under Algo Engine buy conditions. We’re looking for buying support to build within the $85 – $95 range.

AbbVie reported Second-Quarter 2020 earnings with worldwide net revenues $10bn, an increase of 26% on a reported basis, or a decrease of 5% on a comparable operational basis, due to the COVID-19 pandemic.

AbbVie announced it completed its acquisition of Allergan, which was acquired on the 8th May, 2020.

S&P Biotech ETF

Posted on | by Leon Hinde

ETFS S&P Biotech is now under Algo Engine buy conditions.

CURE ETF offers investors exposure to US biotechnology companies. These are companies engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Examples include the development of immunotherapy treatments and vaccines to treat human diseases.

CURE aims to provide investors with a return that, (before fees and expenses), tracks the performance of the S&P Biotechnology Select Industry Index. CURE uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index. It is equal-weighted, meaning each holding makes up the same portion of the portfolio and therefore, contributes equally to the overall performance.

CBA – Reports 12 Aug

Posted on | by Leon Hinde

Commonwealth Bank of remains under Algo Engine sell conditions and we see resistance building near the $74 price level.

CBA reports FY20 earnings on 12 August, at which time the market will focus on CBA’s dividend and any capital management commentary. Consensus expectations are for earnings to be $7.8bn, (down 10% on 2019 numbers), and the 2H20 dividend to be cut by 50%.

We remain on the short side of the CBA trade.