WFD Looks Set To Rally Into The AGM

Posted on | by Todd | Leave a Comment on WFD Looks Set To Rally Into The AGM

With less than 2-weeks until shareholders vote on the $27 billion takeover by Unibail-Rodamco,  WFD shares are trading at $9.15, 85 cents below the $10.00 per share offer.

We haven’t heard any indication that shareholders will reject the offer and see scope for a quick, short-term rally into the $9.75 area before the vote at the AGM on May 24th.

As such, we suggest investors can buy WFD shares in their cash accounts, as well as on the Saxo Go CFD platform.

Westfields

Link Administration Is Approaching Oversold Levels

Posted on | by Leon Hinde | Leave a Comment on Link Administration Is Approaching Oversold Levels

Link Administration has been sold off following the Federal Budget measures aimed at increasing consolidation of inactive super accounts.

Although the announcement now creates a headwind for Link from FY20, we consider the stock “oversold”.

We suggest investors can accumulate Link at or near $7.00 support.

Link

ETF Update- Take Profits In YANK

Posted on | by Todd | Leave a Comment on ETF Update- Take Profits In YANK

The AUD/USD posted an intra-day high of .7810 on April 19th. Since then the Aussie has dropped over 5% and reached an 11-month low of .7410 during the NY session overnight.

And while the longer-term technical outlook remains negative, the current price action suggests that we could see a modest upside correction over the next week.

During this same period of time, the price of AUD EFT with the symbol YANK has traded from $13.10 to $14.55.

We suggest investors holding YANK should take profits at or near $14.40 and look to re-enter in the $13.90 area.

Yank

 

 

 

Westpac – Better than ANZ or NAB?

Posted on | by Leon Hinde | Leave a Comment on Westpac – Better than ANZ or NAB?

WBC’s 1H18 NPAT of $4.25bn was a strong result and beat most analysts expectations.

Margin expansion and strong contributions from markets & treasury income, showed positive trends and helped to deliver total earnings growth of 4%; outperforming both ANZ and NAB.

We highlight the trend across all bank results where bad debt charges are lower than expected. Provisioning is at historical low levels and there is some early stage evidence of trends within 90+ BDD rising.

Investors should use any recovery from current levels in the banks to sell covered call options or to re-balance overweight holdings.

WBC

 

 

Stay Short BOQ and SUN

Posted on | by Todd | Leave a Comment on Stay Short BOQ and SUN

It was announced today that BOQ and SUN will be forced to send executives to face questioning from the royal commission when hearings resume later this month.

According to Kenneth Hayne, the line of questioning will focus on lending practices to small businesses over the last 10 years, many of which were tipped into default.

Our ALGO engine triggered a sell signal in SUN on November 9th at $14.20. Since then the stock has traded as low as $12.60 and is now back in the sell-zone near $14.20.

BOQ shares pushed against resistance at the $10.50 level last week and we have a medium-term downside target of $9.60.

BOQ

Suncorp

Algo Update – Orica Short

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Orica Short

Last week on the blog we looked at the short signal on Orica leading into their earnings result.

1H18 earnings were announced yesterday and they disappointed, with a 37% drop on the same time last year.

NPAT of $124m where as consensus was looking for $149m.

The share price dropped over 5% and reached an intra-day low of $18.70 before recovering to $19.00.

This was a very popular “short” CFD trade on our SAXO Go trading platform;  we suggest taking profits on the short ORI position near the $19.00 area.

 

Orica

 

 

WBC Shares Rise After Solid Profit Report

Posted on | by Todd | Leave a Comment on WBC Shares Rise After Solid Profit Report

Shares of WBC are trading over 2% higher and have reached a 7-week high of $29.70 in early trade.

WBC announced today that their net profit and cash earnings were 7% and 6% higher than the corresponding six-month period.

However, even though the cash earnings equals $1.25 per share, the bank said that they would hold its dividend at 94 cents per share, fully franked.

We see the next key resistance level at $30.40 and medium-term support near the April 27th low of $27.60.

Westpac Bank