Recent Algo Signals in review
The following group of securities have a high ranking within our screening process.
Buy signals include AMC, FMG, GNC, IPL, STO, CIM, JHX, BSL, MPL, TAH and CIM.
On the short side we are now tracking CGF and DMP.
Buy Medibank Private At Current Levels
Following the recent Algo Engine buy signal, we recommend investors add Medibank to their portfolio at $2.90.
On a move back towards $3.00, look to sell the $3.10 Dec calls to enhance the income return.
Medibank goes ex div 6.75 cents on the 6th of September.
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Aristocrat Leisure – Model Portfolio holding up 519%
Aristocrat Leisure is the best performing stock in our ASX Top-50 model portfolio, up 519%
Aristocrat reported its 1H18 result today and NPAT was up 32% on the same time last year to $362m.
S&P/ASX 200 finished the week down 0.47%
The S&P/ASX 200 Index finished the week down 0.47%.
The best performer was the Health Care sector, up 2.4% and the the worst performer was the Telecoms sector, down 10.1%.
Telstra Corporation down 11.6% and Vocus Group Ltd down 10.9%.
The XJO index is running into resistance at the prior high of 6150, (reached in January). With resources and the banking sector looking fully valued and the industrial sector trading on stretched price to earnings ratio, we see little upside potential for the index.
Investors should be looking at using a derivative overlay to enhance the income from their existing portfolios.
Buy Tabcorp
Tabcorp last had an Algo Engine buy signal at $4.20.
For clients buying now at $4.60 we recommend adding a covered call option to enhance the yield.
Dec $4.80 call options add an additional $0.20 in premium.
Tabcorp goes ex-div $0.125 on 11th August.
Tabcorp
Suncorp – Trending lower
Our Algo Engine recently triggered a sell signal in Suncorp and we highlight the resistance beginning to build at $14.10
The short-term momentum indicator is now trending lower which suggests $13.50 is a reasonable downside target.
Suncorp
ANZ and Westpac removed from our model
ANZ & Westpac have created “lower high” formations this week and as a consequence, have now been removed from our ASX50 model portfolio.
Buy Medibank & sell covered call options
Our Algo Engine recently generated a buy signal in Medibank at $2.80.
With the stock now making a further “higher low” formation at $3.00, we recommend buying MPL and selling December call options to enhance the yield.
December $3.20 call options are generating an additional $0.08 in premium.
Medibank goes ex-div $0.0675 on the 6th September
Medibank Private
Bendigo Bank – Back in the “short” zone
Our Algo Engine has flagged the “lower high” formation in Bendigo Bank and with the stock facing earnings headwinds, we feel this an appropriate short trade to consider
Sell within the $11.00 – $11 .30 range.
Bendigo
Amcor +10% Annualised Cash Flow
Amcor provides a defensive income opportunity through buying the stock and selling a $14.26 (Euro) Dec call option.
The option generates an additional $0.42 of income, whilst remaining exposed to the $0.30 September dividend.
AMC
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453