APA – Buy
APA is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support at $11.00 and reaffirm our “accumulate” rating.
APA 1H20 results. 
NASDAQ – Leading Indicator
The NASDAQ remains our leading indicator of global equity markets.
We draw your attention to the index breaking below the 10-day average, this provides an early warning for stalling momentum.
For more detail on shorting/hedging strategies, please call me on 1300 614 002.
Beach Energy
Beach Energy is a current holding in our ASX 100 model portfolio. Our preferred exposure within the energy sector is Santos, followed by Beach Energy.
We highlight the price support in Beach Energy at $1.40.
South 32 – Production Results
South32 remains under Algo Engine sell conditions, but we continue to monitor the buying activity following increased speculation that the company could be a takeover target.
S32 reported June quarter production numbers which were in line with market expectations. Manganese and Cannington surprising to the upside and Met Coal disappointing.
June quarter manganese ore production was up on recent revised guidance.
2020 earnings will be down significantly on 2019, caused by lower commodity prices. EBIT will fall by 30 – 40% and EPS falls from $0.20 to $0.05. It’s not until 2022 that markets expect S32 earnings to recapture the levels of 2019.
A slow down in global economic growth would adversely impact prices across aluminium, alumina, manganese, nickel, silver and coal.
IPL – Valuation review
Incitec Pivot operates in explosive/mining services and fertilizers. The stock remains under Algo Engine sell conditions, but we continue to watch the buying momentum and the upcoming earnings result for signs of strength.
We are encouraged by the recent capital raising which has helped to strengthen the balance sheet and should help navigate any short-term COVID-19 volatility.
IPL trades on a forward yield of 2.2%.
Sydney Airport
Sydney is a current holding in our ASX 100 model portfolio.
We’re watching Sydney Airport for buying interest to rebuild within the $5.25 to $5.50 range.
AusNet – Momentum Continues
AusNet Services has now rallied 7% from the recent support level. The short-term indicators continue to trend higher.
The stock price is approaching our $1.80 price target.
Pro Medicus – Buy Signal
Pro Medicus has switched to buy conditions after correcting from the $30 high back in May, to $24 in yesterday’s trading.
INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED
31 DECEMBER 2019. 1H20 revenue increased 15% to $29m and underlying profit before tax jumped 45% to $15m, (compared with $10m for the previous corresponding period).
PME is a high growth business, trading on a lofty PE of almost 100x earnings. Watch for the short-term momentum indicators to turn positive within the $22 – $25 price range.
BGA – Back on Support
Bega Cheese is a recent Algo Engine buy signal and we revisit the opportunity as the price action builds support near $4.40.
BXB – Closes on the High
Brambles Our recent buy advice on BXB is playing out favourably. The stock is now up 5 percent + from our entry-level.
The chart below displays the technical support.
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