Ansell – FY21 Earnings

Posted on | by Leon Hinde

ANN:ASX is under Algo Engine sell conditions, however, we’re expecting a switch to buy conditions in the near term.

FY21 results were at the low end of guidance, with EPS US$1.92 on record sales of US$2bn.

FY22 is likely to be 5 – 10% below FY21 and the downgrade is driving the current share price correction. Be patient with this opportunity and wait for the Algo Engine to trigger a buy.

The 3% yield is well supported and buying interest will rebuild as the valuation becomes more attractive.

COH – Algo Buy Signal

Posted on | by Leon Hinde

Cochlear is now under Algo Engine buy conditions and has been added to our ASX 100 model portfolio.

We expect 10% EPS growth over the next 12 months. Although, the stock remains expensive at 40x earnings and trading on a 1.8% yield.

Since writing the above post in Dec last year, COH has rallied from $175 to a high of $257. The subsequent pullback which bottomed on Monday this week has seen buying interest rebuild at the higher low of $222.

This is the second cluster of Algo Engine buy signals and we’ve taken the opportunity to add to our original allocation.

iShares Asia 50 ETF – Buy

Posted on | by Leon Hinde

iShares Asia 50 is under Algo Engine buy conditions and is a current holding in our iShares ETF model.

INVESTMENT OBJECTIVE: The fund aims to provide investors with the performance of the S&P Asia 50TM Index, before fees and expenses. The index is designed to measure the performance of the 50 leading companies listed in China, Hong Kong, Macau, Singapore, South Korea and Taiwan.

Wesfarmers – Buy

Posted on | by Leon Hinde

Wesfarmers is under Algo Engine buy conditions.

FY21 result was slightly above expectations with underlying EBIT up 21% to $3.55bn.

WES has proposed a A$2.3bn (A$2.00 per share) capital return that is expected to be paid in December (subject to shareholder approval).

WES advised that its retail divisions have been affected by recent lockdowns with trading restrictions and several store closures.

WES trades on a forward yield of 2.5%.

Accumulate WES within the $50 – $57 range.

Wesfarmers – FY21 Earnings

Posted on | by Leon Hinde

Wesfarmers is under Algo Engine buy conditions.

FY21 result was slightly above expectations with underlying EBIT up 21% to $3.55bn.

WES has proposed a A$2.3bn (A$2.00 per share) capital return that is expected to be paid in December (subject to shareholder approval).

WES advised that its retail divisions have been affected by recent lockdowns with trading restrictions and several store closures.

WES trades on a forward yield of 2.5%.

Accumulate WES within the $50 – $57 range.