Leon Hinde

QBE and IAG are our preferred exposure within the Australian listed
general insurers.

Both names are now under Algo Engine buy conditions. We see the potential for more upside in QBE’s up coming earnings result, given the deep discount it trades on, relative to peers.

Based on FY19 Net Operating Income increasing by 10%+ to $850m, we have QBE on a forward yield of 5.5%.

We now look to add covered call options to enhance the income and capture the March dividend.

Ansell is under Algo Engine buy conditions and remains a current holding in our ASX 100 model portfolio.

We see support building in the $35 – $38 range. 

Carsales.com is a current holding in the ASX 100 model portfolio and with the share price finding support at $11 we feel value is now on offer.

CAR goes ex-div $0.205 on the 22nd of March.

Tabcorp reports its 1H19 result on 13 February 2019. Consensus forecasts are looking for an EBITDA number between $580 – $600 for the 6 month period. This will represent 12%+ growth on the same time last year.

We have TAH trading on an FY19 yield of 5.2%.

The technical structure in TAH moved into a lower high formation and an Algo Engine sell signal was formed. Our strategy is to hold TAH through to the result.

If we see higher prices next week we’ll consider using a derivative strategy to lock-in returns and protect against the downside.

The post below is from the 11th of December. A review of the real-time charts will show TWE, SEK & ALL finding support at our forecast range.

All three names are now trading higher.

This week, TWE reiterated its forecast for 25% EBIT growth in FY19. This is in-line with market consensus and is positive for the share price.  TWE is up 5% today on the back of the announcement.

We recommend running a buy write strategy with TWE.

Below post is from 11th Dec

TWE, ALL and SEK are current holdings in the ASX 100 model portfolio.

The graphs below show the current price action finding support at the top of the forecast consolidation channel.

TWE – Buy at $14

ALL – Buy at $21.80

SEK – Buy at $16.50

The post below is from December last year and we’re now seeing buying interest pick up in the oversold building names. James Hardie is leading the recovery in percentage terms and remains our preferred exposure.  Please check your charts for a real-time update.

James Hardie is under Algo Engine buy conditions and is our preferred consideration for the sector.

Building stocks have been sold off following this year’s rate increases in the US and weaker construction data both in the US and Australia. There is no doubt that weaker earnings trends are due, however, the question is… how much bad news is priced in?

James Hardie is finding buying support at $15.00

Boral has now sold off by 45% following the $8.20 high created in February.

The blog post below is from the 10th December and a check of the QBE chart today shows the price has bounced from the $10 support and is now trading at $10.55. We recommend selling covered call options or locking in the gains.

QBE is under Algo Engine buy conditions and we see value emerging near the $10 support level.

QBE chart from the 10th Dec.

QBE chart from today.

The post below is from the 15th of December and a check of the charts will show IPL now trading at $3.55. After buying IPL at $3.30, we feel today’s price level is an opportunity to take profit or sell covered call options.

IPL is under Algo Engine buy conditions and we see value emerging in the sub $3.50 price range.

IPL chart is from the 15th December.

IPL chart above is from today.

2018 Sector Performance of the ASX 200

TWE is a current holding in the ASX 100 model portfolio.

We recommend selling covered call options over TWE to enhance the income. $15 Feb call options are generating an additional $0.60 income per share.

TWE goes ex div $0.15 on the 7th of March.