Our Algo Engine generated a buy signal in Seek at $19.70 back in July.
With the current share price finding support, (at a new higher low formation), we see this as a viable buy-write opportunity.
June $22.50 call option will generate an additional $0.75 per share of income. Seek goes ex-dividend $0.24 on the 26th of March.
Oil prices continue to rise as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
Recent signals in OSH and STO continue to push higher. Also, the OOO ETF, (Oil ETF), is now up almost 20% from the recent Algo Engine buy signal.
Oil ETF OOO
Our Algo Engine generated a buy signal in SCG going into Friday’s close at $3.97
The chart below shows the value range and SCG is now on our radar as a defensive buy-write strategy.
A combination of the 22 cent annual dividend and the option premium is generating 10 – 12% cash flow on an annualised basis.
Scentre Group
We draw your attention to the recent Algo Engine buy signal in Titomic.
Titomic was originally developed by CSIRO and has the world’s largest 3D printing facility using titanium.
TTT has the exclusive rights to a proprietary and patented process for the application of cold-gas dynamic spraying of Titanium.
The applications of this process have a broad spectrum including sporting goods, automotive and medical equipment, as well as, precision components for the aerospace and military sectors.
The company was listed on the ASX in September 2017 at 37.5 cents.
Titomic
Following a recent Algo Engine buy signal, Seek has been added to our ASX100 & ASX50 model portfolios.
We see buying support near $20.50.
Seek
After posting an intra-day low at 6096 on September 10th, The XJO Index has built an initial base near 6100.00
Over the last two weeks, the index has been trading within an ascending wedge formation.
The next level of resistance will be in the 6227 area. A break of the 6096 support will likely triggered a measured move back to the April lows just below 5800.00
XJO Index
We recommend accumulating shares in Crown Resorts as the price finds support near $13.50.
FY19 EPS growth will be around 8%, placing the stock on a forward yield of 4.3%.
Crown goes ex-dividend for $0.30 on the 20th March 2019.
Selling December $14.25 call options will add a further $0.21 of income per share.
Crown Resorts
With US interest rates pushing higher, low growth defensive names have been under recent selling pressure.
We’ve seen this reflected in other yield sensitive names, within the property and infrastructure sectors as examples.
With Healthscope likely to grow forward earnings at 5% and trading on a 3% yield, it’s hard to be excited about the short-term investment returns, however, we’re confident investors will be rewarded over the next 2 – 5 years with income plus capital growth.
Accumulate HSO near the $2.10 price level.
Healthscope
Crown is likely to find buying support within the $13 – $13.50 price range.
As such, we recommend investors accumulate the stock and look to sell a covered call option to enhance the yield.
Crown Resorts
Healthscope has retested the $2.07 price gap and has seen strong buying support.
We see HSO as a good long-term value play with improving earnings over the next 2 – 5 years.
Healthscope
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453