S&P/ASX 200 finished the week up 0.12%.
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%.
Origin Energy – Hits Profit Target
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.
Algo Buy Signal – ANZ, NAB & WBC
Following the recent sell-off in the major banks, we’re now seeing the Algo Engine flag the short-term “higher low” formation.
We’re cautious about entering these positions on the long-side due to the regulatory risks the banks face & the limited top-line revenue growth outlook for the sector. However, the search for yield may support another push higher in prices.
ANZ, NAB & WBC are buy signals, (place stop loss below signal low), CBA & SUN are showing sell signals.
Algo Buy Signal – WPL
We recommend buying WPL as a new “higher low” formation builds at $31.50.
The last Algo Engine buy signal was triggered back in June, with WPL bottoming-out in September at $28. The recent retracement and higher low at $30.60 now looks to be a solid base.
December Webinars
In December, we are conducting the following webinars. Please register your interest by using the register link below. We will email you, one hour before each Webinar begins, with the link to join in.
Global Equities Overview and ASX 2018 Market Outlook
Join us in this webinar as we recap on the major trends of 2017 and explore which ones will continue in 2018 and which ones have come to an end. Find out what stocks to add and what stocks to remove from your portfolio, before it’s too late.
- Host: Leon Hinde, Head of Equity Strategy at Investor Signals
- Date: 5th December 2017
- Time: 7pm Qld Time, 8pm NSW/Vic Time, 5pm WA Time
- Duration: 45 min
Don’t miss the opportunity to build your understanding of the big trends impacting equities and, more importantly, which stocks should and shouldn’t be in your portfolio heading into 2018.
Investor Signals – Charts & Algo Engine Explained
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.
- Host: Leon Hinde, Head of Equity Strategy at Investor Signals
- Date: 7th December 2017
- Time: 7pm Qld Time, 8pm NSW/Vic Time, 5pm WA Time
- Duration: 45min
Don’t miss the opportunity to build your understanding on how to benefit from our new technology, as your window to the market.
Trading ASX 50 CFD’s with Saxo Go
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.
- Host: Leon Hinde, Head of Equity Strategy at Investor Signals
- Date: 13th December 2017
- Time: 12:30pm Qld Time, 1:30pm NSW/Vic Time, 10:30am WA Time (Daytime Session)
- Duration: 45min
Don’t miss the opportunity to learn how we apply proven techniques to shorter term trading on ASX 50 CFD’s.
Aristocrat – FY17 Earnings
ALL delivered $543m, (37% increase), in underlying profit for FY17.
A good result was offset by a negative response to their announced acquisition of Big Fish Games. The acquisition of Big Fish is the second deal this year where Aristocrat is expanding into social gaming.
FY18 is forecast to deliver a further 20% growth with net profit of $650m, EPS $1.05, DPS $0.42 placing the stock on a forward yield of 1.9%.
We hold ALL in our ASX 50 model portfolio, following the Algo Engine buy signal triggered in July at $20.25.
China Factory Activity
China factory activity expanded at a quicker pace in November, with the official manufacturing PMI coming in at 51.8, while the services PMI accelerated to 54.8.
Chinese GDP grow close to 7% in the 9 months to September.
iShares China Large Cap ETF has rallied from $40 to $62 in the last 12 months, we now look for the next Algo Engine buy signal.
Algo Short Signals – CBA, SUN & QBE
QBE, SUN and CBA are recent examples of the “lower high” formation being identified by the Algo Engine.
SEEK – Valuation Review
SEEK provided a trading update at its AGM yesterday, upping its guidance for
EBITDA growth to 13% and reaffirming NPAT guidance of $220-230m.
FY18 Revenue $1.3b, EBIT $340m, EPS $0.63, DPS $0.44, placing the stock on a forward yield of 2.4%.
Our Algo Engine last triggered a buy signal back in June, when SEEK was trading at $16.40. A pullback to $17 will provide a lower risk entry level.
SEEK
BHP – Valuation Review
BHP’s medium-term cost guidance for iron-ore and coal is better than expected and will help to underpin EPS targets into FY18 and FY19.
FY18 revenue will be up slightly to $40b, EBIT $13b with reported profit in FY18 forecast to increase 10% to $6.4b.
Assuming dividends per share of $0.80, BHP is placed on a forward yield of 4%.
We see upside in BHP’s share price to $30 and suggest selling a March $29.50 call option to enhance the yield.
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Investor Signals Pty Ltd
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