Brambles – Buy
Buy Brambles within the $10.50 – $10.75 price range.
Newcrest – Buy
Newcrest Mining remains under Algo Engine buy conditions and we recommend investors accumulate between $30 – $32.
CURE ETF Rallies 20%
ETFS S&P Biotech is under Algo Engine buy conditions and was added to our “high conviction” model following the low formed at $52.
The ETF has since rallied 20% and the buying momentum among biotech stocks remains strong.
Global Infrastructure ETF
Vanguard Global Infrastructure Index is in our “high conviction” portfolio and has now rallied from the $52 support level.
We see continued upside for the fund, which offers investors diversified exposure to infrastructure sectors, including transportation, energy and telecommunications.
CIMIC – Funding Update
CIMIC’s global parent, Grupo ACS, will receive a cash injection of at least $4.5 billion if it accepts an $8 billion offer from French infrastructure group VINCI for its industrial services business.
Should the above transaction proceed, it will relieve pressure on its global cash flows.
The class action lawsuit filed against CIMIC, which alleges the group used supply chain financing to mislead investors about its cash flows and did not fully disclose the financial problems in its Middle Eastern joint venture, remains a negative overhang.
The share price has rallied 10% over the last week, which can be attributed to the funding news for the parent entity. We continue to like the investment theme and exposure to local infrastructure development, which CIMIC offers.
Cleanaway – Update
Cleanaway Waste Management found buying support at the $2.07 support level.
Bega – Update
Bega Cheese found buying support at the $5.00 support level.
Northern Star and Saracen Merger
NST and SAR have announced a board-supported A$16bn merger of equals. Under the deal, SAR shareholders would receive 0.3763 NST shares for every SAR share held.
The deal is subject to SAR shareholder approval, Saracen will be merged into NST and no longer exist. The deal is expected to be completed in February 2021.
Iluka – Demerger Vote
Iluka Resources is under Algo Engine buy conditions.
Iluka shareholders will have the opportunity to vote on the demerger at a meeting on 16 October 2020.
If the demerger proceeds, eligible shareholders will receive one share in Deterra for every Iluka share held at the demerger record date. Iluka will retain a minority shareholding interest of 20 percent in Deterra as a long-term investment.
The demerger will result in two independent ASX-listed companies – Iluka Resources Limited, a global leader in the mineral sands industry and Deterra Royalties Limited, the largest independent royalty company listed on the ASX, with the MAC iron ore royalty as its cornerstone asset.
Gold Road – Algo Buy
Gold Road Resources is under Algo Engine buy conditions and we expect buying interest to rebuild near the $1.50 support level.
A combination of lower gold prices in the spot market and the recently announced interruption to production has seen the GOR share price fall from the $2.00 highs reached in July.
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