Caresales.com – Technical Bounce

Posted on | by Leon Hinde

CAR is one of the “GARP” (growth at a reasonable price), names that we’ve been tracking.

With the stock bouncing off the $11.00 price level, we suggest running a tight stop-loss below the recent “pivot low” and giving the upside momentum a chance to develop.

Within the back drop of market volatility, it is difficult to know how this trade plays out in the short-term. Therefore, we highlight the need to run a stop loss.

We consider ALL & TWE as similar technical opportunities.

Carsales.com

Buy BHP At Current Levels

Posted on | by Leon Hinde

Our Algo Engine recently  generated a buy signal in BHP  and with the share price retracing back to $32, (following the sell-off in oil), we recommend investors accumulate the stock.

BHP trades on a forward yield of 5.2%, allowing for a 20% lift in FY19 earnings.

BHP

 

 

 

Bluescope – Where Are The Buyers?

Posted on | by Leon Hinde

Bluescope has sold off from $19 (mid-year), to now be trading at $12.10. The stock was expensive and we’re now back in fair value range.

The outlook is uncertain as US and Asian steel spreads contract and lower steel prices negatively impact forward earnings.

Also, leading indicators for the domestic residential construction market are creating investor concerns.

We expect cautious outlook comments from the AGM trading update on Friday, 23 November.

Watch for buying interest to build above the $10.50 support level.

Bluescope

 

Buy Sonic Healthcare

Posted on | by Leon Hinde

In a volatile market, we continue to like Sonic Healthcare and recommend accumulating the stock with a view towards selling covered call options to enhance the income return.

SHL goes ex div $0.32  on the 6th March.  June $23.50 strike call option generates an additional $0.75 per share of income.

 

 

 

Macquarie Upgrades Earnings

Posted on | by Leon Hinde

Macquarie Group is a current holding in the ASX100 model portfolio.

Macquarie upgraded their earnings guidance for FY19 profit to be up 15% from a previous estimate of 10%.

Now that the ACCC has given the green light for Santos to acquire Quadrant Energy, MQG stands to collect about $500 million for their 22% stake in Quadrant.

Macquarie Group

 

Buy Wesfarmers

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in Wesfarmers into the ASX close on Friday at $44.40.

This “higher low” pattern is referenced to the intraday low of $43.70 posted on May 10th.

We see value for investors emerging in the $44.50 range.

Following the spin-off of Coles, look to sell covered call options to enhance the income return.

Wesfarmers