Look to accumulate CYB on any weakness near $4.70 ahead of their full year earnings release on the 20th of November.
Considering that CYB has most of its mortgage exposure in the UK, has an net interest margin of 220 basis points and is not being targeted by the Royal commission, we believe the stock is oversold.
CYB
Our Algo Engine has triggered a buy signal in Ansell. And with the share price finding support at $22.50, we recommend accumulating the stock.
Technically, the share price looks to be carving out a “double bottom” pattern dating back to September of last year at $22.10.
Our upside target is $24.50, at which time investors can consider either taking profit or selling slightly out of the money call options to enhance the income.
ANN goes ex div $0.30 in Feb 2019.
Ansell
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
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
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
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
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
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
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
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
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