Oil prices and stocks to watch

Posted on | by Leon Hinde

Oil prices remain well supported by recent platform closures in the Gulf of Mexico ahead of Hurricane Gordon, and Exxon’s warning of a supply crunch in Nigeria. 

We recommend buying the dip in Santos near the $6.50 level and also accumulating Origin on the current share price weakness.

OOO.ASX Oil ETF was added to our ETF model back in June and the ETF is now up 8.5%.

WPL and OSH look expensive at current levels and we’ll wait for the  next Algo Engine buy signal before considering these names.

STO

 

Evolution Mining – Buy

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in EVN, following the recent higher low formation.

Via our “Opportunity in Review” webinars and blog commentary, we recommended an entry level at $2.65.  The stock now looks to have found support and we suggest holding the position.

Apply a stop loss an a break of the recent low.

Evolution Mining

Boral’s FY18 Results

Posted on | by Leon Hinde

Boral reported FY18 results which were ahead of market consensus , with net profits of $514 million.

North American guidance was a little weak, with one-off costs and
operational issues creating a drag on earnings, the market remains hopeful the risks on the Headwaters integration recedes.

Based on FY19 earnings growth of 12%, Boral now trades on a 3.8% forward yield. We remain cautious whilst the the lower high price formation and ALGO sell signal is in place.

Boral goes ex-div $0.14 on the 4th September.

Our preference in this sector remains CIM and DOW.

Boral

Warren Buffet’s top 25 holdings

Posted on | by Leon Hinde

Over the next month we will run a special coverage segment on US stocks and review the performance of recent Algo Engine buy signals within our S&P100 model.

To kick-off, what better way to start than looking at Warren’s portfolio?

Here are his top 25 holdings…

 

 

Ramsay Healthcare – FY18

Posted on | by Leon Hinde

Ramsay Healthcare reported FY18 results in-line with market consensus, however, the FY19 guidance was below expectations.

Underlying earnings increased 7% in FY18 and that growth rate is likely to slip to 4 – 5% in FY19. With the stock on a forward yield of 2.7% we see further downside risk to the share price in the short-term.

RHC is a high quality business and we’ll be watching for the next Algo Engine buy signal.

Material earnings benefits from new hospital  projects are expected in the coming years; we see both Healthscope and Ramsay Healthcare as long-term value plays with a defensive yield.

Buy Healthscope today and remain patient for the entry condition into Ramsay.

 

Unibail-Rodamco – 1H18

Posted on | by Leon Hinde

URW reported 1H18 earnings of €6.61 per share, which was ahead of market consensus forecasts.

Full year guidance 12.75-12.90 per share was maintained for the combined entity and synergy cost saving targets were upgraded.

URW will be looking at 3 billion + in asset sales as they rationalise their portfolio, post the Westfield acquisition. Progress on this front, along with more detail in the next earnings update, should help to drive further share price appreciation.

Group EPS growth is forecast at 5% and the the stock is now on a forward yield of 6%.

Unibail-Rodamco

ALGO Update: NCM & EVN

Posted on | by Leon Hinde

NCM reported a strong earnings result and forward guidance will be supported by higher revenue and lower costs.

Gearing is now at 12% and with gold prices likely to rally from the current oversold levels, we see scope for NCM and EVN to find buying support in the near-term.

Both stocks have gone ex-dividend today and paid 15 cents and 4 cents, respectively.