GPT Group – Buy & Add Call Options

Posted on | by Leon Hinde

GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio. The share price is up 30% since being added back in October 2018.

The recent price retracement from $6.50 to $6.10 is temporary weakness following the rights issue this month. We suggest investors take advantage of the pullback in the share price and begin accumulating.

GPT goes ex-div $0.1285 on the 28th December 2019.

CIMIC – Up to 10% Share Buyback

Posted on | by Leon Hinde

Cimic Group is under Algo Engine sell conditions since forming a lower high back in February at $50.

A weak first-half earnings result has seen the sell-off accelerate in the past few days. We’d normally give this name a wide berth, whilst we wait for confirmation of earnings and in particular, free cash flow improvements.

However, we draw your attention to the “up to 10%” share buyback which the company will recommence in August.

 

 

Alphabet – High Conviction Buy

Posted on | by Leon Hinde

Alphabet is a current holding in our US S&P100 model portfolio.

Shares of Alphabet rose after its second-quarter earnings announcement with earnings and revenue beating market expectations.

The strong earnings came from higher ad sales and growth at its cloud unit.  Google reported advertising revenue of $32.6 Bn for the second quarter, compared to $28.09 Bn during the second quarter last year.

Revenue came in at $38.94 Bn up 19% from last year and earnings per share were $14.21, up 21%.

Alphabet said its board of directors approved a re-purchase of up to an additional $25 Bn of its Class C capital stock.

Alphabet is on our high conviction buy list, underpinned by strong revenue growth and the large scale share buyback.

Suncorp – Buy

Posted on | by Leon Hinde

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

We see buying support building at $13.25 and our upside target for the stock is $14.00+.

SUN goes ex-div $0.40 on the 15th August and adding a covered call option into November will help boost the cash flow return.

 

Oz Minerals – Buy the Dips

Posted on | by Leon Hinde

ASX:OZL} is a current holding in our ASX 100 model portfolio.

The 2Q 19 production result was solid with higher copper production
offset by lower gold output. OZL produced 28kt of copper and 27koz of gold during the quarter.

Construction work on Carrapateena is progressing well, with the process plant nearing completion.

OZL is to release its earnings result on 28 August.

Based on FY20 earnings we have OZL trading 17x and a 3% dividend yield. Increased production from expanding mine capacity should help to underpin EPS growth 2 – 3 years out.