Buy Downer EDI

Posted on | by Leon Hinde

During our Opportunities in Review webinar series, we’ve been suggesting Downer EDI as a buy at $6.75.

Downer EDI has confirmed 13% EPS growth for the year ahead, which should support a $7.50 to $8.00 initial price target.

Downer EDI

Buy IAG At Current Levels

Posted on | by Leon Hinde

In our Opportunities in Review webinar series, we’be been suggesting IAG as a buy below $7.00.

A recent broker note estimates that IAG will have a further $600 million to spend on shareholders, which could come in the form of a $300 million special dividend and $300 million share buyback.

Look for a rally to $7.50 and sell covered call options.

IAG

Investors Brace For CBA’s AGM Today

Posted on | by Todd

Since posting an intraday low of $65.60 on October 26th, shares of CBA have risen over 5% and reached $69.90 in early trade today.

Investors have cause to be pensive as the banking giant will hold its AGM in Brisbane today and round 7 of the bank Royal Commission will start on November 19th.

We see technical price resistance in the $70.25 area and initial support at $67.30.

Commonwealth Bank

 

 

 

Look For A Bounce In Tabcorp

Posted on | by Todd

It’s been estimated that over $250 million was wagered on yesterday’s Melbourne Cup.

It’s reasonable to believe that many punters would have placed bets using one of the TAH platforms.

TAH has been an enigma for investors over the last three months as the share price has traded in a narrow $4.50 to $5.00 price band.

It’s worth remembering that TAH reported a 71% jump in earnings in their last update and is currently priced at a 4.60% yield.

TAH is part of our ASX top 100 portfolio and we suggest accumulating shares at current levels for a move back over $5.25 over the medium-term

Tabcorp

BHP’s Rally Won’t Be Derailed

Posted on | by Todd

Shares of BHP have slid lower in early trade as the mining giant has suspended all iron ore operations in WA after a runaway train with 268 wagons had to be derailed.

We don’t see this as an impediment to the pace of exports out of Port Hedland or the $14 billion share buy back and special dividend program.

BHP has been on an ALGO buy signal since September 11th at $31.20.

We see good technical support in the $32.85 area and initial resistance just under $35.00.

BHP

Buy Crown Resorts

Posted on | by Leon Hinde

We recommend accumulating Crown Resorts near the $11.75 price range

CWN offers investors an attractive return with a partially franked dividend yield of 4.9% and is trading at 20x FY19’s estimated earnings.

Crown

Buy UniBail-Rodamco-Westfield

Posted on | by Leon Hinde

UniBail-Rodamco is the European property conglomerate which acquired the global shopping center giant, Westfield.

As UniBail continues consolidating their expanded portfolio, investors can expect to hear more about “non-core” asset sales.

The long-term play for UniBail is to keep the best of the high quality assets from the combined groups.

A combination of higher bond yields and impatient retail investors have seen the stock price fall to $12.50.

This places URW on a 6% yield and we’re now looking at a share price that should start to find institutional buying interest.

Unibail

Buy Oil Search

Posted on | by Leon Hinde

Our ALGO Engine generated a buy signal in Oil Search at $7.50 on October 30th.

With LNG prices firming, we recommend investors accumulate OSH shares at current levels.

OSH is our preferred value opportunity even though WPL and STO also look reasonable over the medium-term.

Oli Search

Crown Resorts – Looking Extremely Oversold

Posted on | by Leon Hinde

After testing a 12-month low at $11.90 in early trade, shares of Crown provide an opportunistic entry level for both investors and traders.  The share price has been washing out following last week’s average earnings result.

With the share price sliding over 20% lower since mid-August, we believe we’re now looking at an inflection point with new buying demand ready to build.