Our ALGO engine has shown a sell signal for BOQ since August 31st at $11.50.
The share price got a boost at yesterday’s AGM trading up to $11.35 just after the FY18 NPAT data was released.
However, as the trading day progressed, the lower margins on the current loan book combined with large software write offs pressured the share price back below $11.00.
We still prefer the short side of BOQ with a downside target of $9.60.
Bank Of Queensland
Over the last 24 hours, our ALGO engine has triggered sell signals for both Oz Minerals and Origin Energy.
Both OZL and ORG have been longstanding components in our ASX model portfolio.
As illustrated in the summary below, ORG returned a respectable 30.93% over the 584 day holding period and OZL returned a whopping 144.21% gain, including dividends, since July of 2015.
Both of these names have been popular with investors and we’ll update with current ALGO signals in the near-term.
Oz Minerals
Origin Energy
Our ALGO engine triggered a buy signal for CYB into yesterday’s ASX close at $5.69.
This “higher low” pattern is referenced to the intra-day low of $5.20 posted on June 4th.
CYB at $5.50 – $5.60 appears to be a good buying opportunity. We expect earnings upgrades next year following integration with Virgin Money.
CYB
AGL is a current holding within the ASX Top 50 and 100 model portfolios.
With the share price trading at $19.50, we consider a pessimistic view is now priced in.
We suggest buying AGL and looking to sell covered call options to enhance the cash flow.
Qantas will provide its 1Q19 trading update on 25 October 2018.
QAN was added to our ASX Top 50 model portfolio in July of 2017 at $5.25.
Due to the recent spike in oil prices, the share price has been drifting lower and nearing our original entry level.
Along those lines, we expect the trading update to include how the company’s dynamic hedging program is insulating their bottom line from higher fuel prices.
We see good value at current levels for a move back into the $7.90 area over the medium-term.
Our ALGO engine triggered a sell signal for Iluka Resources into yesterday’s ASX close at $10.14.
ILU was added to our ASX model portfolio on February 7th, 2017 at $7.07
As illustrated in the chart below, ILU remained in the model, with several additional buy signals, as the stock maintained a pattern of “higher lows” over the 603 day holding period.
Further, investors who held ILU through the duration of the buy signal would have picked up 53.12% on their investment.
This 53.12% return is broken down into a 47.17% gain on the share price combined with 41 cents of dividends per share.
We will keep LIU on the radar and update subscribers and clients with future ALGO signals on the stock.
Iluka Resources
Our Algo Engine generated a buy signal in ASX and we’ve identified $60 as price support.
ASX provides a defensive 3.5% dividend yield and EPS growth is tracking at 5%+.
Look to accumulate near the $60 support level.
Our ALGO engine triggered a buy signal for Suncorp into yesterday’s ASX close at $14.20.
This “higher low” pattern is referenced to the intra-day low posted on June 14th at $13.70.
Shares of SUN have dropped over 10% during the last month as the potential for fines and increased regulations from the Royal Commission have weighed on both banking and insurance stocks.
However, the technical picture is beginning to look oversold. As such, we consider SUN a buy/write opportunity near the key support level of $13.60.
Suncorp
Our Algo Engine triggered a recent buy signal in the REIT, Vicinity Centres.
The “higher low” formation suggests buying support should develop around the current $2.60 level. On the same day, we also had a signal in Scentre Group.
Vicinity Centres
Our ALGO engine has been long CIM since June 1st at $40.00.
Since then the share price has risen over 25% and traded at a 10-month high of $51.64 last week.
In addition to posting better-then-expected profit results back in July, CIM has also secured several mining services agreements including a recent $420 million contract extension with Antofagasta Minerals in Chile.
On balance, we see the stock trading in a high-level consolidation pattern over the medium-term.
As such, we consider CIM a buy/write candidate with reasonable upside potential and increased cash flow from the sold call options.
Cimic
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