Insurance Australia Group has been added into the ASX 100 model portfolio following the recent Algo Engine buy signal.
We see buying support for IAG at $7.50
IAG goes ex dividend on the 21st of August for $0.20. Adding a Dec $8.00 call option will generate an additional $0.30 per share of income.
Altium is now under Algo Engine buy conditions.
Altium Limited is an American, Australian domicile owned public software company that provides PC-based electronics design software for engineers who design printed circuit boards. Founded as Protel Systems Pty Ltd in Tasmania in 1985, Altium now has regional headquarters in the United States, Australia, China, Europe and Japan with re-sellers in all other major markets.
As a recent addition to the ASX 100 index we will begin to analyse the financial performance of the business and update you on future research.
OZ Minerals was recently added into our ASX 100 model portfolio.
We’re mindful of the selling pressure base metal prices have been under since the beginning of last month, with copper and nickel prices down 8% and 9%, respectively.
Commissioning of the Carrapateena mine later this year remains a key near-term catalyst to help support the OZL share price. On a valuation basis, we have OZL trading 10x FY20 earnings on a 2.4% dividend yield.
The company goes ex-div $0.08 on the 31st August.
We recommended buying Sydney at $7.45 and the share price is now trading $7.75.
Selling a September $7.76 Euro call option will enhance the cash flow by an additional $0.19 per share.
SYD goes ex-div $0.195 on the 27th June.
We recommend investors add the IAA, (Asia top 50 ETF), and IZZ, (China Large-Cap ETF) to their watch lists.
There is a high probability that we’re now looking at oversold levels on both of these ETF’s and value is beginning to emerge.
Also look at the ASIA ETF, which provides exposure to technology focused companies.
Woodside Petroleum is under Algo Engine buy conditions and the recent higher low at $34.50 provides an attractive entry level.
WPL goes ex dividend $0.72 on the 23rd August. Adding an October $35.50 call option generates an additional $1.35 per share of income.
For more information on the call option strategy, call our office on 1300 614 002.
Our Algo Engine has recently generated buy signals in the leading insurance stocks.
The price pattern is similar in all 3 names, as displayed in the graphs below.
We suggest adding these to your watch list and taking note of the short-term indicators for the momentum to turn positive.
IAG
QBE
SUN
We recommend buying Sydney at current levels and selling a September $7.75 call option to enhance yield.
SYD goes ex-div $0.195 on the 27th June.
Amcor will begin the integration process of the Bemis acquisition and work through the synergy cost savings, which are targeted to deliver US$180mn in savings.
The euphoria of the “search for yield” in the market, (especially in the last few months following US yields trading lower), has seen Amcor’s share price trade at a premium to global peers. We like the long-term prospects of the company and feel AMC’s relatively defensive earnings profile will remain attractive in uncertain markets.
We suggest adding this one to your watch list and we’ll highlight on the blog when the stock switches from sell to buy conditions.
Our target is to buy AMC closer to $15.00
ASK:ILU announced it has finalised a deal with the IFC, (part of the World Bank) whereby, the IFC will invest US$60m to take a 10% stake in the Sierra Leone assets.
We find this news interesting in the context of the Rare Earth Elements, (REE) and the potential implications of China restricting US access.
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