Insurance Australia Group is now showing an Algo Engine buy signal and remains a long term holding in our ASX 100 model portfolio.
We see value emerging and consider the $7.50 price range as support and expect buying interest to remain solid.
Look for a move higher into the $8.00+ range and then sell covered call options to enhance the income return.
For more detail on the option strategy, please call our office on 1300 614 002.
Silver Lake Resources is under Algo Engin buy conditions and we now add the name to our watch list.
Silver Lake is a gold producer with its cornerstone asset the Mount Monger Gold Camp, located in Kalgoorlie, Western Australia. The Mount Monger Camp produced ~158,000 ounces in FY18 and has a proven history of Reserve replacement and discovery.
The chart below shows SLR finding support at $0.90 and the short-term indicators are turning higher.
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
A review of the valuation metrics show FY20 revenue is forecast to be $1.6bn, EBITDA jumps to $940mn on net income of $390mn.
This places EVN on 16x forward earnings and a 3.5% dividend yield.
Buy EVN $4.70
Gold Price Chart
Downer EDI is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see buying support building at the $7.50 level. Watch for the short-term indicators to turn positive.
Cleanaway Waste Management provides a solid growth outlook in a defensive sector.
FY20 earnings will grow at double digits and the stock is now on 2.8% forward yield. We see further upside potential for the share price.
Cleanaway Waste Management remains under Algo Engine sell conditions but we feel a buy-side opportunity is approaching. Cleanaway provides a solid growth outlook in a defensive sector.
Watch for a switch to buy conditions near $1.85 or a move higher in the short-term indicators.
Starbucks is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
We see price support developing near the $88 level.
PayPal Holdings is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
We see price support developing near the $103 level.
Amazon is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
We see price support developing near the $1735 level.
ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see upside in ASX to $86.00, at which time investors should consider selling out-of-the-money call options to enhance the income return.
ASX goes ex-div $1.14 on 7 March.
For more information on the derivative strategy, please call our office on 1300 614 002.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453