NIB Holdings – Earnings Downgrade
NIB Holdings has downgraded FY20 earnings by $30m, owing to claims inflation across the business.
Based on the updated FY20 earnings outlook we now have NHF trading on a forward yield of 3%.
Lendlease – Buy the Dips
Lendlease is under Algo Engine buy conditions.
We remain bullish on the urban redevelopment business model and are further encouraged by the announcement LLC has entered into an agreement with Acciona to sell its engineering business for $180 million.
Buy $17.80
NEC – Short Opportunity
Nine Entertainment Co. Holdings is under Algo Engine sell conditions. We see an opportunity to lean on the short side of this position coming into the February earnings result.
Coca-Cola Income Trade Generates 10%
Coca-Cola Amatil is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see value in buying CCL and selling $12.00 June call options to enhance the cash flow return. CCL goes ex-div $0.26 on the 26th of February.
For more detail on the buy-write, please call our office on 1300 614 002.
American Express – Buy
American Express is under Algo Engine buy conditions and is on our “high conviction” buy list.
Since posting the above trade on the 7th of Dec, Amex has rallied to $133 or +10%.
Pro Medicus – Algo Buy Signal
Pro Medicus is under Algo Engine buy conditions and we add this one to our watchlist. With the stock trading on almost 100x PE, it’s expensive even after the share price correction from $38 to $22.
Short covering is likely to occur soon and it’s worth watching the short-term indicators for a reversal higher.
About: Pro Medicus are a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS) and advanced visualization solutions across the globe.
Buy range $22.50 – $23.50
Since writing the above post on the 9th of Jan, PME has rallied almost 20%.
The Algo Engine suggests it’s time to take profit. 
QBE – 20% Rally
QBE Insurance Group was discussed in the “opportunities in review” webinar earlier this month. We expressed the view that $12.00 provided support and our bullish call on QBE is now playing out. The stock has rallied from $12.00 to $13.20 and we see further upside to $14.00.
The above text was last updated on the 16th of Dec and QBE has now hit our $14 price target.
NIB Holdings – Value Emerging
NIB Holdings is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
With the stock now trading at $6.35, we see value emerging heading into the February earnings result. The company has guided towards 6% EPS growth and now trades on a 4% dividend yield.
Note: We’re mindful of the price gap back to $6.00, but we’re assuming this may not get filled at this stage.
Goodman Group – Buy
Goodman is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
In its first-quarter update, Goodman reaffirmed its expectation of a 9% lift in earnings over the 2020 financial year.
Buy $13.80
GPT – Algo Buy Signal
GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see value in buying GPT at $5.75 and waiting for a rally back to $6.00 before selling out-of-the-money call options.
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
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