AMP Continues to Grind Higher
AMP continues to trade higher as the price action builds on the “higher high & higher low” formation.
AMP was added into the ASX50 model in June at $5.00. Our upside target for the stock is $5.40 – $5.50.
AMP
Algo Update – South 32
South 32 has rallied from the recent support level, as buying increased at $3.20.
S32 is in the ASX 50 model following the Algo Engine buy signal back in February.
We see further upside toward the $3.50 level.
ANZ announces $1.5b share buyback
ANZ announced a $1.5bn on-market buyback, which is expected to commence in January 2018.
Our Algo Engine triggered a buy signal in ANZ on the recent higher low price formation.
ANZ
Algo Update – Short AZJ
Our Algo Engine flagged the recent “lower high” structure in AZJ, and we’ve been highlighting the trade on the blog as one of our preferred shorts.
The stock is $0.40 lower today from last weeks $5.40 high.
Our concern with AZJ, relates to the unsustainable payout ratio.
The downside momentum looks to be increasing for a move to the early October lows near $4.75.
AZJ
TCL Entitlement Offer
TCL is undertaking a 3 for 37 entitlement offer at $11.40 per share to raise $1.9b of new equity. The retail offer will close on 24th January.
The TCL share price has hit an all-time high today at $12.93.
And while the internal momentum indicators on the daily charts are approaching an overbought reading, we expect prices to move higher and consider TCL a cornerstone holding in the model portfolio.
Transurban
S&P/ASX 200 finished the week up 0.04%
The S&P/ASX 200 Index finished the week up 0.04%.
The best performer was the Property Trusts sector, up 1.8% and the the worst performer was the Utilities sector, down 3.8%.
ETF Watch – Buy Signal in Gold Miners ETF
Our Algo Engine has triggered a buy signal in the Vaneck Vectors Gold Miners ETF with the ASX symbol GDX.
The price of Spot Gold has been very active and has traded in a $50.00 range between $1290.00 and $1240.00 since December 1st.
We estimate that a move back to $1290 in Spot Gold will translate to a share price of $30.40 in GDX.
Transurban – Preferred Holding
TCL announced a $1.9bn fully underwritten renounceable entitlement offer to
fund WestConnex & West Gate Tunnel Project in Melbourne.
We continue to see high single digit growth in dividends with FY18 guidance at $0.55, placing TCL on a forward yield of 4.8%
TCL & SYD are current holdings in our ASX 50 model portfolio, following the recent Algo Engine buy signals.
ANZ divests Life Insurance business
ANZ announced the divestment of its Life Insurance business for $2.8bn.
We see the transaction as incrementally positive for ANZ and maintain the holding, along with NAB & WBC in our ASX 50 model.
CBA and Suncorp remain our preferred short banking/insurance exposure.
ANZ
Westfield Corp – Takeover 17.8% Premium
Unibail-Rodamco (Europe’s largest listed commercial property company) has entered into an agreement to acquire all the outstanding shares in WFD.
The offer consideration is equivalent to $10 per share and represents +17.8% premium to the last close.
Westfield Corp
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