TABCORP Holdings has been added into the ASX 100 Model Portfolio following the recent Algo Engine buy signal.
We see buying support building for Tabcorp at $4.45.
TAH goes ex dividend on the 15th of August for $0.10. Adding a Dec $4.80 call option will generate an additional $0.20 per share of income.
For more information on the covered call strategy, please call our office on 1300 614 002.
Crown Resorts has been a high conviction buy expressed on the blog. The share price made a low at $11.69 and is now trading at $12.80.
Following Melco Resorts (NASDAQ listed) buying 50% of James Packer’s holding in Crown at $13 per share, we see scope for increased VIP flow from Melco’s large high roller customer base.
Whilst there is scope for Melco to make a full takeover of Crown, it is not our base assumption. We suggest investors hold Crown for the 4.5% yield and for those seeking greater cash flow, selling an out of the money covered call option will boost the annualised cash flow to 10% plus.
Scentre is under Algo Engine buy conditions and a name we’ve recently drawn our readers attention to, as a buy write.
The share price has since rallied from $3.80 to $4.08. We still see scope for gains from a buy write strategy, which captures the upcoming dividend .
SCG goes ex div $0.11 on the 14th of August.
Low global bond yields and the announced share buy back by SCG, will help underpin downside risks.
$280 billion in announced public infrastructure projects by 2020 in Australia, will help support growth for Boral, Downer EDI and CIMIC.
Boral & CIMIC are showing Algo Engine sell signals, whereas, DOW is under a a recent Algo Engine buy signal.
All three names are attractive on a fundamental basis, however, the deep discount in Boral makes it our preferred allocation.
Altium switched from sell to buy conditions in July 2018 at $21 and more recently we had an Algo Engine buy condition again in May at $31.00.
ALU is a strong momentum play and the stock is now up 10% in the past 4 weeks. We continue to hold ALU and will look to take profit once the short-term indicators turn negative.
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HUB24 is now under Algo Engine buy conditions with initial price support developing near $11.50 and secondary support at $10.00.
We suggest adding HUB to your watchlist and we’ll update you on our entry point, once we see the short term momentum indicators turn positive.
Webjet comes onto our radar following the recent algo engine buy signal.
The stock is outside our core mandate of ASX 100, however, the above average earnings growth in Webjet warrants keeping watch of price support at the $13 level.
Scentre Group announced an on-market buy-back of outstanding shares, the Company intends to complete the buyback within 12 months. The buy-back will add incremental support to our suggested buy-write strategy.
We recommend buying Scentre and selling covered call options. The stock goes ex-div $0.11 on the 14th of August.
Selling a Sept out of the money call will generate an additional $0.12 per share of income.
Amcor strong share price movement suggests investors are
pricing in an earnings upgrade, but we think a significant EPS upgrade
is unlikely and investors should now take profit or sell covered calls.
Stock price is up 5% from the recent signal low.
GPT strong share price movement now captures the adjusted low bond yield picture and investors should take profit or sell covered calls.
Stock price is up 32% from the original signal low in October 2018.
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