TWE – Buy

Posted on | by Leon Hinde

Treasury Wine Estates is under Algo Engine buy conditions.

TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.

FY22 EBIT growth is forecast to be in the mid to high single-digit range.

8/11 update: Buy above the $11.50 support range and place the stop loss below the recent pivot low of $11.48.

Lendlease – FY22 Outlook

Posted on | by Leon Hinde

Lendlease has warned of a challenging year to come as COVID-19 puts a dampener on development and construction globally.

FY21 net profit after tax of $377 million was in line with the company’s guidance, largely due to divesting its loss-making engineering and services.

We expect to see an improvement in earnings towards the end of FY22.


REA Group is up 67%

Posted on | by Leon Hinde

REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 67% since being added in September last year.

REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.

REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.

5/11 update: REA Group delivered 22% revenue growth for Q1 FY22.

Link – Algo Buy

Posted on | by Leon Hinde

Link Administration Holdings reported FY21 profit of $112m. FY22 guidance is now low single-digit revenue growth and flat EBIT.

The downside in the share price is underpinned to a certain degree through the announced buyback of $150m.

The forward dividend yield is 2.7%.

5/11 update: Carlyle Group has returned for a renewed buyout offer of $5.38 per share which values the target at around $2.8 billion.

BETASHARES CRYPTO INNOVATORS ETF

Posted on | by Leon Hinde

New ETF listing BetaShares Crypto Innovators

EXPOSURE TO THE GROWTH POTENTIAL OF THE CRYPTO ECONOMY


The crypto economy has been growing strongly, aided by the performance of Bitcoin, Ethereum
and other digital assets over the past ten years, with this growth anticipated to continue. The
companies within CRYP are seeking to build on that success.


EXPOSURE TO THE BROAD CRYPTO-EQUITY ECOSYSTEM


CRYP is designed to capture the full breadth of the crypto ecosystem by investing in pure-play
crypto companies (such as cryptocurrency exchanges, crypto mining companies and mining
equipment firms), companies whose balance sheets are held at least 75% in crypto assets, and
diversified companies with crypto-focused business lines. CRYP invests in up to 50 crypto leaders,
including Coinbase, Riot Blockchain and Microstrategy