Tabcorp – Oversold

Posted on | by Leon Hinde | Leave a Comment on Tabcorp – Oversold

Tabcorp is likely to trade higher, into the $4.50 range following independent expert Grant Samuel indicating the proposed $11 billion merger of gaming giants Tatts Group will deliver fair value for Tatts shareholders.

Tabcorp says the merger is expected to deliver at least $130 million in annual earnings from what it calls synergies and business improvements, tech integration, corporate cost savings and other consolidations.

It will take about two years to fully integrate the old Tabcorp and Tatts businesses,  according to Tabcorp.

 Tabcorp

 

Algo Update – Macquarie Bank

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Macquarie Bank

Our Algo Engine triggered a buy signal in MQG near the recent low of $82.28.

During an outlook update provided to the market, MQG re-affirmed guidance for its FY18 result to be broadly in line with FY17.  Management noted that, strong revenues in the FUM business will help underpin FY18 earnings.

FY18 cash earnings of $2.3b, EPS $6.70 and DPS $4.70, represents 3 – 5% earnings growth on FY17 and places the stock on a forward yield of 5.4%.

There appears to be short-term upside price momentum from the recent signal, however, stop losses below the $82.28 low are advised.

Chart Watch – IAG & SUN

Posted on | by Leon Hinde | Leave a Comment on Chart Watch – IAG & SUN

The Insurance sector in the US rebounded in Friday’s session, following oversold levels which were caused by concerns about weather related claims.  

We’re expecting the local insurance companies to find buying support near the current price levels. This will likely be a short-term trade higher, as we anticipate the sector will then make a “lower high” formation.

Our two preferred names are IAG and SUN.

Algo Buy Signal in Healthcare Names

Posted on | by Leon Hinde | Leave a Comment on Algo Buy Signal in Healthcare Names

Resmed formed a “higher low” at $8.94 and found buying interest within our “buy zone”, as advised on the blog.

Sonic Healthcare should find buying support at $21.55. Apply a stop loss below the $21.55. SHL – Ex-Div 8/9/2017 (Div 46c, Franking 20%)

Ramsey Healthcare –  Strong reversal of yesterday’s low at $65.

CSL – Algo Engine buy signal at $125.00   CSL – Ex-Div 12/9/2017 (Div $0.91 Franking 0%)

Medibank – Now looks expensive. Take profit!