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.

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China’s Property Market

Posted on | by Leon Hinde

The significance of Chinese house prices to world markets cannot be overstated. For twenty years China has been powering world growth.

There are many times in the past China has been successful in re-inflating its property market and we think that on the balance of probability, they’ll achieve this again.

Relative to other global equity indices, the iShares China Large-Cap looks to offer value. The risks are high in the short term, however, an opportunity presents for the long-term investor to consider accumulating the IZZ ETF over the next 6 months.

iShares Asia 50 is our preferred Asia sector ETF.

Bega – Algo Buy

Posted on | by Leon Hinde

Bega Cheese is under Algo Engine buy conditions.

The FY21 result beat forecasts on a number of key metrics, with FY21 sales +38%, underlying EBITDA increased +38%, and NPAT up 24%.

FY22 BGA is targeting further earnings growth and to realise the synergies from the LD&D acquisition.

BGA buying support to increase above the $5.00 support level.