Boral has been under Algo Engine sell conditions since forming a lower high at $5.75 back in July.
The share price is now down 30% from the July high and much of this selling occurred yesterday following the FY19 earnings result. Underlying NPAT was down 7%, at $440m & EBITDA was down 2%, at $1,037m.
A pick up in US housing and local infrastructure spending should help to underpin Boral’s earnings. The stock trades on 10x earnings and a forward yield of 5%.
Tassal Group is now under Algo Engine buy conditions following the higher low formation at $4.30.
Tassal Group is not a core holding and is viewed as a shorter-term trading opportunity. We’re looking for the momentum indicators to turn higher and buying support to build within the range displayed on the chart below.
Accumulate within the $4.00 to $4.30 level.
{ASX:SKI) is under Algo Engine buy conditions.
The company report 1H19 result EBITDA $412m and the dividend was as per guidance at $0.075 with $0.15 reiterated for the full year. Spark Infrastructure remains attractive in a low-interest-rate environment, offering 6.5% forward yield.
Ramsay Health Care is under Algo Engine sell conditions and we may see further weakness in the share price down to the $62 level.
FY20 earnings outlook suggests 2 – 4% EPS growth supporting a forward dividend yield of 2.3%.
OZ Minerals is on our radar following the price retracement back to $8.60.
We expect buying support to build and the short-term indicators to turn positive.
1H19 EBITDA of $163m and NPAT of $44m were broadly in line with consensus and the interim dividend was 8c. Forward yield is 4.5%.
Accumulate OZL.
Fortescue Metals Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The FY19 earnings result was solid with underlying EBITDA US$6b, the strong result helped to drive down net debt to US$2.1b which reflects a gearing ratio of 16%.
A final dividend of A$0.24 was declared, lifting the full-year payment to
A$1.14, translating to a yield of 16%.
Volatility in spot iron-ore prices continues to be a key driver of the share price. Iron ore futures are now trading at their lowest price in more than six months.
Note: RIO at $83 is now on our watchlists and we suggest tracking the short-term indicators for a reversal higher.
FMG
RIO
Coles Group remains under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has rallied 6% over the past week and we now recommend selling covered call options to enhance the income return.
COL goes ex-div $0.24 on the 28th of August.
Northern Star Resources is under Algo Engine buy conditions and a current holding in the ASX 100 model portfolio.
The stock has recently retraced from $14.00 back down to $11.50. We expect to see buying support increase for Northern Star and other gold produces.
Also, review EVN & GOR.
Long-term graph of the gold price.
The NASDAQ remains a key Index to watch as a reference for equity markets. Whilst the index trades below the mid-week high of 8050, investors should be cautious.
Move to an overweight position in defensive sectors such as healthcare, infrastructure and consumer staples. Also, focus on individual companies conducting large scale share buybacks.
Consider hedging using index futures or the inverse ETF BBOZ.
Going forward, track the close in the NASDAQ against the short-term momentum indicators as your hedging reference.
GPT remains a high conviction buy. The share price has rallied 5% over the past week and we now recommend selling covered call options to enhance the income return.
GPT goes ex div $0.13 on the 28th of December.
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