The S&P/ASX 200 Index finished the week down 0.5%.
The best performer was the Telecoms sector, up 1.4% and the worst performer was the Consumer Discretionary sector, down 3.2%.
The XJO remains in a “lower high” pattern, with 5836 acting as resistance.
Our Algo Engine has triggered a sell signal in Goldman Sachs.
We maintain a negative outlook and advise running a stop-loss should the price action trade above the signal high of $235.
Following the Algo Engine short signal in General Electric, the price action continues to carve-out lower levels.
Should we see GE trade down to $22, we would consider this price target as an oversold and providing a suitable entry point for new long exposure.
The FY17 result was slightly ahead of expectations and underlying EBIT rose 11% to A$302m
ORA’s ability to execute on its growth strategy should help to underpin top and bottom line growth of 5%, resulting in EBITDA in FY18 increasing from $420m to $450m.
ORA trades on a forward yield of 3.8%.
Orora
AGL Energy recorded a solid FY17 NPAT.
However, the market has reacted negatively to the board de-prioritised capital management. This has happened less than 12 months after launching its buy-back program.
AGL provided FY18 Underlying NPAT guidance in the range of $940-$1,040m. Earnings growth forecast is driven predominantly by higher wholesale electricity prices.
FY18 EPS increases from $1.20 in FY17 to $1.40, placing AGL on a forward yield of 4.6%
We have previously expressed our concerns with regards to AGL being overvalued and we continue to maintain our $22 price target.
AGL
Recent Algo Engine buy signals in ANN and SHL are now finding buying support.
We maintain our medium-term price targets near the June 29th high of $24.00 in ANN, and the July 4th high of $24.50 in SHL .
Following the recent Algo Engine buy signal, Amcor has now formed a solid base at $15.40. We have an upside target of $16 – $16.50.
We recommend adding December covered calls to the Amcor holdings to increase cash-flow and enhance portfolio returns.
We continue to hold Caltex in our model portfolio with an upside target of $33.00.
Scentre Group announced their estimated distribution for the six month period ended 30 June 2017 will be $0. 10 cents per ordinary stapled security.
Scentre Group will announce its results for the half year ended 30 June 2017 on Thursday, 24 August 2017.
The chart of Westfield below illustrates the price action is now in an oversold range.
Our Algo Engine triggered a buy signal in the SPDR Property Fund ETF.
Our Algo Engine triggered a buy signal on Invocare and it now appears that the stock is finding buying support. The share price is pivoting higher after making a low at $13.60 on August 3rd.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453