Recent Algo Signals in review
The following group of securities have a high ranking within our screening process.
Buy signals include AMC, FMG, GNC, IPL, STO, CIM, JHX, BSL, MPL, TAH and CIM.
On the short side we are now tracking CGF and DMP.
Buy And Hold Telstra
Since breaking down through the $3.00 mark on May 15th, shares of TLS have range traded between $2.70 and $2.90.
Much of the negative commentary about the Telco giant has revolved around its ability to hold on to its 47% market share, increase its profit margins via 5-G technology and maintain its dividend.
We feel that these questions will be answered in the affirmative during their business update call on June 20th.
At current prices, TLS has a dividend yield of 7.9% and a P/E ratio of 9.30, which we feel is good value for investors.
Telstra
Opportunities As WFD Exits The ASX Indexes
As the takeover of WFD by Unibail-Rodamco moves into its final stages, the ASX has decided which stocks will be added to their benchmark indexes.
In the ASX 20, WFD will be replaced by ORG: in the ASX 50 index, TAH will replace WFD: and in the ASX 200, ELD will fill in from the departing WFD.
Since many Super funds and managed equity firms have a mandate to hold a percentage of listed index shares, we see good value in these names once the takeover is completed.
We will update these shares with specific entry levels over the next few days.
Origin
TabCorp
Elders
ALGO Buy Signal For Santos
Our ALGO engine triggered a buy signal on STO into yesterday’s ASX close at $5.50.
The “higher low” pattern is referenced to the $4.80 low posted on March 15th.
The share price has dropped over 15% since the company rejected a $6.86 per share takeover offer from Harbour Energy last week.
Since then, there have been internal discussions about a higher takeover price, as well as whether the current management can use their strong balance sheet to increase earnings restore a fully-franked dividend.
Technically, we see solid support near the $5.30 area and initial upside resistance at $6.10
Santos
Gold Is back In The Buy Zone
After falling nearly $90.00 from the April high of $1369.00 to last week’s low of $1281.00, Spot Gold has recovered back over the key $1300.00 level.
With increasing levels of volatility in major stock indexes, as well as simmering geopolitical risks, we expect the price of gold to trend higher over the medium-term.
Some of the local gold names we prefer include NCM, SBM, SAR, NST and EVN.
For more information about trading opportunities in gold, give us a call on 1-300-614-002
Newcrest Mining
Santa Barbara
Saracens
Buy Medibank Private At Current Levels
Following the recent Algo Engine buy signal, we recommend investors add Medibank to their portfolio at $2.90.
On a move back towards $3.00, look to sell the $3.10 Dec calls to enhance the income return.
Medibank goes ex div 6.75 cents on the 6th of September.
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ALGO Sell Signal For Sydney Airports
Our ALGO engine triggered a sell signal on SYD into yesterday’s ASX close at $7.37.
This “lower high” pattern is referenced to the intra-day high of $7.50 on December 19th.
The company expects to meet distribution guidance of 37.5 cents per share, which is up from 34.5 cents last year.
At $7.40, SYD shares are trading on a forward P/E of 44 X and are paying an annual dividend yield of 5%, which is un-franked.
As such, we see a pull back in the shares price as corrective within a broader uptrend, and expect a buy signal around the $6.80 level.
Sydney Airports
Amcor Is Pushing Back To The $14.00 Handle
Shares of AMC have opened over 1% higher at $13.90 as the stock continues to recover from the May 4th spike low near $13.10.
The technical picture improved last week with internal momentum indicators now pointing higher on the daily price charts.
We see the $13.70 level as good support with an upside target in the $14.40 to $14.50 area.
AMC has been in our ASX Top 50 portfolio since July of last year, and is a good candidate for a Buy/Write strategy into the 30 cent dividend on September 4th. 
Amcor
Crude Oil Plunges 4% On Increased Production Plans
The price of West Texas Intermediate (WTI) crude oil dropped 4% overnight to $67.50 on the news that Saudi Arabia and Russia are discussing plans to raise production by over 1 million barrels per day.
Ahead of a key OPEC meeting in Vienna next month, the energy ministers of Russia and Saudi Arabia met in St. Petersburg yesterday to review the terms of a global oil supply pact that has been in place for 17 months.
For the week, WTI tumbled about 4.9%, its biggest loss since early February and a sharp reversal after six weeks of gains. Additional production from US drillers also added weight to WTI prices.
We would expect to see both OSH and WPL trade lower to start the week with key support levels at $7.80 and $31.50, respectfully.
Oil Search
Woodside Petroleum
Buy The Dip In Treasury Wine Estates.
Shares of TWE continue to rebound off of last week’s spike low of $15.65 and have reached $16.60 in early trade today.
The panic about a glut of Australian wine in China, combined with some minor licensing issues in the region appear to be overstated.
TWE officials have reassured shareholders that they are confident in their business model in China and the company will maintain positive earnings momentum globally.
Considering that TWE has been one of the best growth stocks on the ASX over the last 3 years, and traded as high as $20.20 just over a week ago, we suggest investors look to add to holdings at current levels.
Treasury Wine Estates
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Investor Signals Pty Ltd
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