{ASX:SKI) is under Algo Engine buy conditions.
The company report 1H19 result EBITDA $412m and the dividend was as per guidance at $0.075 with $0.15 reiterated for the full year. Spark Infrastructure remains attractive in a low-interest-rate environment, offering 6.5% forward yield.
Ramsay Health Care is under Algo Engine sell conditions and we may see further weakness in the share price down to the $62 level.
FY20 earnings outlook suggests 2 – 4% EPS growth supporting a forward dividend yield of 2.3%.
OZ Minerals is on our radar following the price retracement back to $8.60.
We expect buying support to build and the short-term indicators to turn positive.
1H19 EBITDA of $163m and NPAT of $44m were broadly in line with consensus and the interim dividend was 8c. Forward yield is 4.5%.
Accumulate OZL.
Fortescue Metals Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The FY19 earnings result was solid with underlying EBITDA US$6b, the strong result helped to drive down net debt to US$2.1b which reflects a gearing ratio of 16%.
A final dividend of A$0.24 was declared, lifting the full-year payment to
A$1.14, translating to a yield of 16%.
Volatility in spot iron-ore prices continues to be a key driver of the share price. Iron ore futures are now trading at their lowest price in more than six months.
Note: RIO at $83 is now on our watchlists and we suggest tracking the short-term indicators for a reversal higher.
FMG
RIO
Coles Group remains under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has rallied 6% over the past week and we now recommend selling covered call options to enhance the income return.
COL goes ex-div $0.24 on the 28th of August.
Northern Star Resources is under Algo Engine buy conditions and a current holding in the ASX 100 model portfolio.
The stock has recently retraced from $14.00 back down to $11.50. We expect to see buying support increase for Northern Star and other gold produces.
Also, review EVN & GOR.
Long-term graph of the gold price.
The NASDAQ remains a key Index to watch as a reference for equity markets. Whilst the index trades below the mid-week high of 8050, investors should be cautious.
Move to an overweight position in defensive sectors such as healthcare, infrastructure and consumer staples. Also, focus on individual companies conducting large scale share buybacks.
Consider hedging using index futures or the inverse ETF BBOZ.
Going forward, track the close in the NASDAQ against the short-term momentum indicators as your hedging reference.
GPT remains a high conviction buy. The share price has rallied 5% over the past week and we now recommend selling covered call options to enhance the income return.
GPT goes ex div $0.13 on the 28th of December.
Crown Resorts is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The group announced its results for FY19 with NPAT down 5% to $370mn. A final dividend of $0.30 cents was declared.
Despite the short-term headwinds from lower VIP revenue, we see value in Crown shares as investors are effectively getting free upside in the Barangaroo project.
Buying support at $11.00
Origin Energy is a holding in our portfolio, based on the strong anticipated earnings coming from the group’s investment in the Australia Pacific LNG project.
The result announced today shows an increase in profit from the APLNG of 40% plus. Overall group earnings are ahead of market consensus at $1bn and the company declared a $0.15 dividend.
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