Leon Hinde

We recommend buying GPT and selling an out of the money call option to enhance the income return.

GPT goes ex div  $0.126 on the 28th June.

For more information on the option strategy, please call our office on 1300 614 002.

Following a 10% correction from the April peak, the NASDAQ is now under Algo Engine buy conditions. This is the first of the major indices to switch from sell to buy.

XJO, S&P500 & Dow Jones Index all remain under Algo Engine sell conditions. The conclusion we draw from this is, the bounce in technology may be short lived.

Melco has agreed to purchase 19.99% of Crown Resorts at A$13.00 in two equal tranches on 6 June 2019 and on or prior to 30 September 2019.

The stock is being purchased from the Packer holding.

Melco’s price implies 10x EBITDA for the Perth & Melbourne casinos. It implies about $1.7bn for the Sydney casino which has a net build cost of $1.5bn.

Buy Crown at $12.30

Almost half of the stocks in the major US indices are already in bear territory and we’re now beginning to see the late stage selling in the remaining “high quality” group.

The graphs below of the US indices are under algo engine sell conditions and more recently, (past 10 days), the short-term momentum indicators are now pointing down and supporting the big picture back drop.

Interestingly, the Australian market has held up well, and the explanation lies in the surprise post election rally. Our concern is the sell-off in the ASX may soon catch up to the US.

Dow Jones

S&P500

NASDAQ