Seek is under Algo Engine sell conditions and we remain on the short-side of the trade.
Two negatives we focus on;
1}Surprise need to raise money in the bond market; and
2} Announcing they were dumping the final dividend in a bid to preserve capital, blaming the “uncertain environment” for the decision.
For more information on our Algo Model Portfolio service, please call 1300 614 002.
Disclaimer: The above charts illustrate the simulated historical time-weighted rate of return, (TWRR), of applying our algorithm-based investment model over ASX ETFs, ASX100 & US S&P100 listed securities. Past performance is no guarantee of future returns.
Pro Medicus is under Algo Engine buy conditions. We highlight the buying support which is now building near the $22 – $23 level.
Pro Medicus will announce full-year result on Thursday 20 August 2020.
ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
July trading volumes show cash market: 32.5m, (lower than the 12-month average of 38.4m) and total value traded in July rose to $140.5bn, (July 2019’s $126.8bn).
Derivatives total of 8.6m contracts, down 22% on a year ago and much lower than the past 12-month average.
Volumes are expected to remain below the elevated levels of the past few months.
ASX is a quality business and we look to add to the position at lower price levels.
REA Group reported FY20 revenue of $820m versus $879m and net profit of $112m.
ResMed is under Algo Engine buy conditions and is a current holding in our ASX top 100 model portfolio.
RMD announced 4Q20 earnings, which were better-than-expected, underpinned by robust COVID-19 ventilator demand. However, modest revenue growth is expected in the near-term, implying limited near-term growth.
The 40x PE multiple looks too rich for the current earnings outlook. The forward dividend yield is 1%.
We suggest waiting for the next Algo buy signal to re-enter RMD on a pullback. Our new entry target is $22.
The company is currently authorised to purchase up to 32,372,676
shares under the buy-back. The remaining shares that may still be
bought under the buy-back would be up to 25,659,911.
Support at $20 is now building and the short-term indicators have turned positive.
Orica is under Algo Engine buy conditions. We expect to see the share price continue to move higher.
ORI goes ex-div on 12 November 2020 $0.33.
Bega Cheese remains under Algo Engine buy conditions and we highlight the recent higher low formed at $4.40.
1H20 earnings are posted below and we’d expect to see improvement in the 2H20 numbers.
ETFS S&P Biotech is now under Algo Engine buy conditions.
CURE ETF offers investors exposure to US biotechnology companies. These are companies engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Examples include the development of immunotherapy treatments and vaccines to treat human diseases.
CURE aims to provide investors with a return that, (before fees and expenses), tracks the performance of the S&P Biotechnology Select Industry Index. CURE uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index. It is equal-weighted, meaning each holding makes up the same portion of the portfolio and therefore, contributes equally to the overall performance.
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