Buy Healthcare Names: CSL, RMD & SHL

Posted on | by Leon Hinde

Our Algo Engine has triggered buy signals in Sonic Healthcare, Resmed and CSL over the past few trading sessions.

RMD has experienced its first sell-off since rallying from $10 last year to $16 only a few weeks ago.

The ALGO engine is now flagging the new “higher low” at $14 and we suggest buying a 1/2 size allocation here and then waiting to see if we get another ALGO signal to add to the position.

CSL provides good long-term fundamentals. The PE is still expensive, however, 10 – 20% EPS growth is attractive! Accumulate at $180

SHL looks to be good value at $23. We see resistance is $25, so look to sell call options to enhance the return. 

Chart: RMD

Chart: CSL

Chart: SHL

 

 

Brambles Offers Value + Spin-Off

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in BXB last week and we highlight the price gap in the chart down to $10.06.

We’ve  upgraded BXB to accumulate and our buy target range is $10 – $10.40

The potential spin-off of the plastic pallet pooling business will unlock value for shareholders and provides the catalyst for us to have a favorable medium term outlook on the business, along with modest earnings growth showing up in the latest 6-month result.

Brambles

Add Wesfarmers To Your Watchlist

Posted on | by Leon Hinde

Wesfarmers at $46 looks attractive heading into the spin-off of Coles later next month.

Growth in the separated businesses will be limited, so once the spin-off is completed, investors can sell covered call options and strip-out the returns from the dividends and option premium.

Note: WES released its scheme booklet as part of the Coles demerger. The vote is scheduled for November 15th with Coles to commence trading on November 21st.

Wesfarmers

FMG Announces A $500 Million Buyback Plan

Posted on | by Leon Hinde

Overshadowed by the general market weakness, FMG has announced a $500 million on-market share buy back plan earlier this week.

Once completed it will be 4 – 5% earnings accretive by 2020.

Shares in FMG have risen over 6% since the announcement and we see the next significant price resistance level near the July 25th high at $4.60

 

Fortescue Metals Group

ALGO Buy Signal For Brambles

Posted on | by Todd

Our ALGO engine triggered a buy signal for BXB into yesterday’s ASX close at $10.39.

This “higher low”pattern is referenced to the intraday low of $9.55 posted on August 8th.

As illustrated in the chart below, BXB has filled the price gap dating back to mid-August, which will provide good support down the the $10.00 area.

We have an estimated upside price target near $12.75 over the medium-term.

Brambles

 

 

Exit Short CFD Positions in Suncorp

Posted on | by Todd

Our ALGO engine has triggered another buy signal for SUN into yesterday’s ASX close at $13.68.

SUN has been a popular short CFD position on our SAXO Go trading platform since trading at $15.50 two months ago.

We now suggest that investors holding short SUN positions buy them back to close the trade.

After our first ALGO signal on October 2nd, we suggested that SUN would be a reasonable buy/write strategy near the $13.60 support line.

Ongoing deleveraging in the domestic market may challenge the $13.60 price point and we will update SUN in a future posting.

Suncorp

 

 

Technical Buy Signal For Treasury Wine

Posted on | by Todd

Our ALGO engine triggered an initial buy signal for TWE on September 20th at $17.45. Another buy signal was generated into yesterday’s close at $17.15.

The share price has open sharply lower today and has reached a 4-month low of $16.40 in early trade.

We see the recent price action as technically oversold and see good upside potential to the $20.00 area over the medium-term.

It’s worth noting that TWE posted a 33% increase in NPAT in its last report, and has given guidance of 20% growth in volume and a 12% increase in sales for calendar 2018.

Treasury Wine Estates

 

CWY – Buy The Dip To $1.70

Posted on | by Leon Hinde

CWY was recently added into our ASX Top 100 model portfolio.

We covered this name in the recent Opportunities in Review webinar on Monday and identified $1.70 as a price target to begin accumulating the stock.

Call our office at 1300 614 002 if you would like a replay of the webinar emailed to you.

Cleanaway Waste management

Quality On Sale – LLC, ASX, CSL & ALL (Video Link)

Posted on | by Leon Hinde

Lendlease, ASX, CSL and Aristocrat are names that we covered in Monday’s Opportunities in Review webinar.

Again, we draw your attention to these high quality businesses that have seen a recent correction in their share price.

We believe these names are close to finding support and should be the focus of establishing entry conditions. Watch the short-term momentum indicators for a reversal higher.

Click below to watch the short two minute video