Coles Group is now under Algo Engine buy conditions following the sell-off from $19.30 down to $17.50.
We expect Coles share price to track sideways within the $17 – $19 price range and suggest investors consider overlaying a covered call option to enhance the cash flow return.
For more information on the strategy, please call our office on 1300 614 002.
The A2 Milk Company is under Algo Engine buy conditions and we highlight the price support at $16.50.
Watch for the short-term momentum indicators to turn higher.
Following the entitlement offer Sydney net debt position will reduce from $9.1 billion to $7.1 billion. Post the capital raising, available cash will increase to $4.6 billion.
New securities under the final allotment commence trading on 14 September.
Sonic has corrected from $38 down to $32 and we expect to soon see buying interest rebuild.
Look for the short-term momentum indicators to turn higher within the price range indicated on the chart below.
Bega Cheese is under Algo Engine buy conditions following the recent signal at $4.50.
FY20 Full year earnings exceeded consensus and the key numbers are;
Revenue increased by 5% to $1.5 billion
Operating cash flow $138 million
Net debt reduction by $52 million to $236 million
Export sales increased 15% to $523 million
Inventory reduction by $15 million to $257 million
Normalised EBITDA decreased by 2% to $103.0 million
Buy Ramsay Health Care within the $61 – $65 price range.
1H20 earnings are lower due to a reduction in sales of petrol and jet fuel.
Look for buying interest to rebuild within the $25 – $26.50 price range.
Despite disruptions from COVID-19 Cleanaway reported an underlying EBITDA of $516m, up 12% on the same time last year.
FY21 EPS growth is forecast to increase by 2 – 3%, placing the stock on a forward yield of 1.8%.
The valuation is looking expensive at 30x earnings, however, the defensive exposure remains attractive in a low yield environment and the balance sheet is in good shape.
Afterpay is under Algo Engine buy conditions after generating the first of a series of buy signals starting in November 2019.
FY20 sales $11bn, income $519m, EBITDA $44m and the net loss after tax $23m.
Momentum continued into 1H21 as expected and active customers increased to 10m.
Market cap now stands at more than 30x forward revenue.
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Investor Signals Pty Ltd
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