U.S. Home Building Stumbles

Posted on | by Leon Hinde

U.S. home building unexpectedly fell in September and permits dropped to a one-year low amid acute shortages of raw materials and labor, supporting expectations that economic growth slowed sharply in the third quarter.

A separate report from the Mortgage Bankers Association on Tuesday showed mortgage applications for new home purchases decreased 16.2% in September from a year ago.

Permits for future home building plunged 7.7% to a rate of 1.589 million units last month.

Despite the recent weak data the SPDR home builder ETF remains well supported.

CIMIC – Buy

Posted on | by Leon Hinde

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high-risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

Update 21/10: CIMIC Group today announced its financial result for the nine months to 30 September 2021:
 NPAT of $303m for 9m of 2021
 Group revenue growth of 9.2%2 YoY to $10.9bn, revenue increase of 6.8% YoY to$7.1bn
 Revenue growth achieved in Australian Construction and Services
 EBITDA, PBT and NPAT margins resilient at 9.6%, 5.1% and 4.3% respectively, despite 3Q21 COVID-19 impact

VanEck Global Healthcare Leaders ETF

Posted on | by Leon Hinde

VanEck Vectors Global Health Leaders is under Algo Engine buy conditions.

HLTH invests in a diversified portfolio of leading international developed markets (ex-Australia) companies with the best growth at a reasonable price (GARP) attributes from the global healthcare sector with the aim of providing investment returns, before fees and other costs, which track the
performance of the Index.