Our Algo Engine triggered buy signals in both WOW and SOL; both opportunities are worth further consideration. Buying support is likely to increase at or near the current entry levels.
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Our Algo Engine generated a “short” or sell signal in General Electric back in mid December, when the stock was trading $32. In last nights sell-off in the US, GE was the worst performing stock within the Dow Jones index.
The overnight selling is a continuation of the downtrend that has been in place since the December high.
The Australian Competition Tribunal has approved the proposed merger of TAH and Tatts Group (TTS), on the basis that they are satisfied that the merger will result in substantial public benefits and on the condition that TAH divests its Odyssey gaming business.
We see scope for upside in TAH share price as a result of synergy cost savings and the prospect of a large scale share buy back program in 2018.
The XJO has formed a minor lower high and lower low formation. 5836 now acts as resistance.
At 20x forward earnings and 2.5% dividend yield, we feel Computershare is overvalued.
The market is too bullish on the cost out story and anticipated earnings growth. The August earnings result will likely be a reality check.
Amcor has remained one of our preferred portfolio holdings. We see 8% EPS growth over the next 12 months and the stock trades on a forward yield of 3.8%.
The current price is beginning to approach full value and we recommend selling the $17 call options into December to enhance the return.
We’ve been buying QBE and IAG over the past few weeks. further upside is likely to be limited from the current level and therefore, taking profit or selling covered call options is advised.
The XJO has now created a “lower low and a lower high” formation. We remain cautious on the index unless the price action can trade back above 5850.
We’ve recently been buying RMD, AMC, ANN, CIM, RHC and TWE.
In particular, RHC is worth holding with a reasonable upside target to $75.00.
The other names mentioned are now at a price point where either taking profit or selling tight covered call options is recommended.
The sell-off in oil back to US$45 per barrel has seen WPL, OSH, STO, and ORG all come under selling pressure.
Origin remains one of our preferred exposures among the energy names and after taking profit recently at $8.00, we’ve been buyers again on last weeks pullback to $7.30.
We now add WPL to our buy-list; we believe it’s back within a price range where buying interest is likely to start picking up.
The Algo Engine triggered a buy signal on Friday in WPL, at or near $30.00
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