Lendlease – Recovery Opportunity!

Lendlease is under Algo Engine buy conditions.

Last week’s profit warning could be the first stage of the
new CEO’s company reset. A review, covering the restructuring of operations and impact of market uncertainties will likely lead to further divestment of less-core businesses and re-prioritization of the existing 23 urbanization projects.

FY22 NPAT is forecast to increase, although still remind 20% below pre-pandemic levels. LLC will provide the FY21 results on 16 August.

Our preference is to own LLC via long call options. For further details please call 1300 614 002.

A2 Milk – Call Options Jump 200%

The New Zealand Overseas Investment Office (OIO) has given approval to A2Milk’s plan to buy 75% of Mataura Valley Milk.

Full-year 2021 sales are expected to be between $NZ1.2 billion to $NZ1.25 billion and EBITDA margins will fall from 30% to 12%.

We’ve closed out the August $6.00 strike calls at $0.92 after purchasing them in early June at $0.30.

Tabcorp – Demerger

Tabcorp Holdings will demerge its lotteries and keno business. The lotteries and keno business has a low capital intensity and a track record of strong cash flows.

Wagering & Gaming Co will remain the largest gaming services provider in Australia.

Gold Roads – Buy

Gold Road Resources is now under Algo Engine buy conditions.

Gold Road anticipates gold production for the 2021 calendar year will be within the lower half of guidance (260,000 to 300,000 ounces on a 100% basis).

AISC for the 2021 calendar year is anticipated to be between $1,325 and $1,475 per attributable ounce, with lower June 2021 quarter production and higher maintenance and labour costs the main contributors to an increase from the guidance of between A$1,225 – A$1,350.

FY21 revenue forecast is for $300mil generating EBIT of $100mil.