Scentre Group will deliver 3% EPS growth in FY18 and trades on a 5% forward dividend yield.
The stock price has rallied from $3.85 to $4.28 over the last two months and we feel the price now reflects full value for SCG.
Sell $4.30 covered calls into June and maintain exposure to the February dividend.
Our Algo Engine generated a buy signal in AGL on 23/8/17 at $22.64.
We continue to like AGL as an income trade in portfolios. Buying at these levels and selling a slightly out-of-the-money call option, (whilst keeping exposure to the $0.41 dividend paid on the 23rd February), generates 10 – 12% cash flow on an annualised basis.
Aristocrat Leisure is forecast to grow earnings in FY18 at 18%, placing the stock on a forward yield of 2% and price to earnings ratio (PE) of 23x. Whilst, the stock is expensive, the valuation is supported by a “top tier” earnings growth profile.
Our Algo Engine triggered a buy signal in ALL on 28/7/17 at $19.83, the strong buying interest in yesterday’s session, (ALL went ex div $0.20), provides confidence that the upside momentum will continue.
Crown has made an aggressive push higher after finding renewed buying support at the $11.93 low in yesterday’s session.
Our Algo Engine generated a buy signal in Crown on the 28/9/17 at $11.13
If you missed our Webinar last night, then you can catch up by watching it here.
Our next Webinar is this Thursday night – Register Now.
Join us in this webinar as we explain the new features and best ways to navigate through the research, charts, algo engine & new model portfolio features. You’ll also be invited to a 30-day free trial of the technology.
Don’t miss the opportunity to build your understanding on how to benefit from our new technology, as your window to the market.
Join us in this webinar as we look at shorter-term trading strategies for both long & short positions & we review how we utilise the Saxo Trader Go platform to take advantage of trading opportunities within the ASX top 50 stocks. We explore the features, how to place and manage orders and look at how short term traders can use the Investor Signals’ research to trade both long and short signals using CFD’s.
Don’t miss the opportunity to learn how we apply proven techniques to shorter term trading on ASX 50 CFD’s.
ASX 200 REIT index was up 5.3% for the month of November, outperforming the broader ASX 200 index, which was up 1.6%.
The strong performance within the REIT’s can be attributed to the flattening yield curve and doubts over the reflation trade.
Our preference has been, WFD, SCG, GPT and the SLF property ETF.
Telstra’s future earnings are sensitive to delays in the NBN payments The latest announcement will see $600m in earnings pushed out to later years.
FY18 EPS reduces from $0.32 to $0.29. The good news is TLS has reiterated its $0.22 DPS guidance for FY18.
Further, we expect Telstra to develop additional long-term revenue streams through growth in Mobile as well as products within 5G and Big Data solutions.
However, as tempting as it is to accumulate TLS at these levels, it may prove prudent to wait for the “higher low” formation and the next Algo Engine buy signal.
US 3Q GDP grew faster than originally estimated, at 3.3%. The improvement was on the back of improved readings for business investment and government spending.
For the first time since 2010, the world economy is outperforming consensus exceptions and 2018 outlook for global GDP forecast now stands at 3.6 – 4.0%.
iShares Global 100 ETF is up 20% in 2017.
The S&P/ASX 200 Index finished the week to Friday up 0.12%.
The best performer was the Utilities sector, up 4.5% and the worst performer was the Materials sector, down 1.2%.
Our Algo Engine has triggered a number of buy signals in ORG, as the two year downtrend reversed and a new uptrend of “higher lows” commenced in early 2016.
The recent buy signal at $6.75 means the stock is still in our ASX 50 Model Portfolio, however, shorter-term investors may wish to consider taking profit, as the stock now looks fully valued.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453