Tabcorp – Value Opportunity

Posted on | by Leon Hinde | Leave a Comment on Tabcorp – Value Opportunity

The recent drop in Tabcorp shares provides a low risk entry level where future earnings are underpinned by the $110 million synergy cost savings after the Tatts merger.

The FY19 revenue is forecast to be $5.4billion, EBIT $850 milion, EPS, $0.28 and DPS $0.23, placing the stock on a forward yield of 4.9%, (fully franked).

Our ALGO engine triggered a buy signal in TAH on February 13th at $4.47.

TAH shares have reached a high of $4.74 in early trade and we see the next resistance level near $4.90

TabCorp

 

 

Medibank Delivered 1H18 earnings

Posted on | by Leon Hinde | Leave a Comment on Medibank Delivered 1H18 earnings

Medibank delivered 1H18 NPAT of $245 million, which is an increase of 6% versus the same time last year.

Operating conditions are expected to remain largely unchanged and we expect revenue and underlying profit to remain flat in FY19.

With the stock trading 20x earnings and 4.1% yield, investors should add an at-the-money-call option to strip out the maximum cash flow from dividends, call option premium and franking credits.

Medibank

 

 

 

Star and Crown Casino – Back On The Radar

Posted on | by Leon Hinde | Leave a Comment on Star and Crown Casino – Back On The Radar

Star reported normalised NPAT of $120m, up 12% on the same time last year and revenue growth was strong, up 16%.

FY19 revenue is forecast to be $2.9b, EBIT $430m, DPS $0.16, placing the stock on a forward yield of 3%.

Investors should watch for the next Algo Engine buy signal in both Star and Crown as they approach a new higher low formation, which will provide a good entry level.

Star Casino

Crown Casino

 

 

 

 

Sonic Healthcare Firms On 1H18 result

Posted on | by Leon Hinde | Leave a Comment on Sonic Healthcare Firms On 1H18 result

Sonic Healthcare delivered 1H18 revenues of $2.7 billon, which was up about 8% versus last year.

Group EBITDA margin missed forecasts and therefore, at 21 x forward earnings and only a 3.4% dividend yield, we view SHL as full value.

The stock was removed from our ASX 50 model a few weeks back when the Algo Engine triggered a sell signal.

Investors looking for cashflow should look to buy SHL on a pullback below $23 and then sell $24 December call options; whilst remaining exposed to the Mar and Sep dividends along with collecting the added option premium.

This strategy  delivers 12% cash flow on an annualized basis.

Sonic Healthcare

 

Welcome to our Morning Review video report

Posted on | by Leon Hinde | Leave a Comment on Welcome to our Morning Review video report

We look at the likely point of price resistance, as the Dow Jones Index reverses from Friday’s session lows.

CBA & WFD were recently added to the ASX Top 20 model portfolio.

In addition,  OSH & STO have now been added to the ASX Top 50 model.

Add to your watch-list RMD, CIM, MPL, AGL & AMC.

Also, watch the IZZ.AXW (China Large-Cap) ETF to see if $59 support will hold.

The video runs for 4 minutes and if you’d like to discuss the ideas presented,  please call our office on 1300 614 002.

Welcome to our Morning Review video report.

Posted on | by Leon Hinde | Leave a Comment on Welcome to our Morning Review video report.

Welcome to our Morning Review video report.

We look at the reversal in Dow Jones overnight and the BBUS, BBOZ & Yank ETF’s which benefit from further US equity market weakness.

CBA & WFD were recently added to the ASX 20 & 50 model portfolio.

RMD, CIM and MPL should be added to your watchlist.  .

The video runs for 10 minutes and if you’d like to discuss the ideas presented,  please call our office on 1300 614 002.