CIMIC Takeover Offer for UGL

Posted on | by Leon Hinde | 2 Comments on CIMIC Takeover Offer for UGL

CIMIC (CIM.ASX) announced it intends to make a takeover offer for UGL at $3.15 per share. This is almost a 50% premium to UGL’s last traded price and values the business at $520m.

Pre UGL, FY17 EPS growth in CIM is forecast to increase by 5% to approximately $1.90, assuming they payout around $1.10 in dividends,  it places the stock on a forward yield of 4%, (100% franking credit).

It’s worth adding CIM.ASX to your watch list as the UGL acquisition will help strengthen the investment case.

CIM.ASX

cim

UGL.ASX

ugl

 

 

 

BOQ FY16 Earnings Result

Posted on | by Leon Hinde | Leave a Comment on BOQ FY16 Earnings Result

A quick look at Bank of Queensland and Bendigo following the release of the BOQ FY16 earnings result.  BOQ.ASX Underlying result was weaker than market expectations, predominately driven by greater than expected margin pressure.

BOQ.ASX FY17 outlook now appears to offer flat EPS growth at best, assuming a $0.78 FY17 dividend, it places the stock on a 6.9% fully franked forward yield.

BOQ.ASX

boq

BEN.ASX

ben

A technical summary of where we see price action heading is different in BOQ opposed to BEN, whilst we see short term downside pressure in both names, (despite the yield support), a retracement in BEN.ASX back to $10 will likely trigger a buy signal in our algorithm engines. Whereas, BOQ.ASX remains in a structural downtrend and it’s the current short signal that draws our attention.

 

 

 

 

Resmed 1QFY17 – Get Ready to Buy

Posted on | by Leon Hinde | 2 Comments on Resmed 1QFY17 – Get Ready to Buy

Resmed (RMD.ASX) reports first quarter FY17 results on the 26th of October. The result is likely to meet or exceed market expectations.

RMD is forecast to deliver 10%+ in EPS growth across the next few years. The recent acquisition of Brightree, Inova and Curative Medical will underpin both revenue and future profit growth, within an industry sector where demand continues to grow.

rmd

 

Caltex Continues to Perform

Posted on | by Leon Hinde | Leave a Comment on Caltex Continues to Perform

We hold Caltex (CTX.ASX) across most client portfolios from lower price levels. The algorithm engines triggered the entry signal back on 8th of July when CTX.ASX was trading at $32.00.

Our target was $34+ with a view towards selling covered calls at this point to then achieve an average exit price in the range of $36 to $37 or on a stand still basis, (or unexercised), 10% per annum cash flow from the dividend and option premium.

The investment continues to perform as expected.

FY17 forecast EPS of $2.15 with a forward yield of 3.3%. Underlying growth 5 – 7%.

Chart – CTX.ASX

ctx

 

 

Take Profit on Boral and Buy James Hardie

Posted on | by Leon Hinde | Leave a Comment on Take Profit on Boral and Buy James Hardie

In today’s post we look at stocks recently commented on that require further attention, as profit taking is in sight or the entry level setups are now looking compelling.

NVT.ASX – Lift trailing stop loss to $5.25 support and retain profit target at $5.40

nvt

BLD.ASX – We had a buy recommendation on this at $6.20 and it has now rallied 10%+ to $6.85. Take profit on BLD and switch to JHX.

bld

AMC.ASX – We see value in AMC at $15 only when complemented with a covered call strategy. Target is 7% capital growth, plus 2% from Feb div and 3% option premium. We have a six month time horizon on this trade.

amc

ASX.ASX – Looks better value following the recent pullback and our algorithm engines are flagging a buy point.

asx

The above charts summarise a few opportunities we’re watching. For further detail on our investment ideas, visit the monthly strategy piece or the recent mid week update.

If you have trouble locating the links to either of the above recordings, please email me.

leon@investorsignals.com

 

 

 

 

 

 

Resmed – Buying Opportunity

Posted on | by Leon Hinde | Leave a Comment on Resmed – Buying Opportunity

Out of the three healthcare buy recommendations, (CSL, SHL and RMD),   made in the blog post back on 13th of September, CSL has increased 10% and SHL 10%+, however, RMD has been slower to recover. With the recent price action in RMD, we’re now more confident that a basing pattern, (or reversal), is beginning to take shape. Therefore, today’s post acts as a reminder that a buy opportunity in RMD remains, with an upside target of $9.00+

Resmed (RMD.ASX)

rmd

 

 

 

Oil Search – Price Bounces Following OPEC Agreement

Posted on | by Leon Hinde | Leave a Comment on Oil Search – Price Bounces Following OPEC Agreement

Oil Search (OSH.ASX) remains an attractive recovery story over the next few months with a potential price target back above $7.25. This target is seen as full value and profit should be taken at this point.

The $6.30 entry level was highlighted in the monthly strategy recording and again in yesterdays mid-week video update.

The current driver of oil prices is yesterdays announcement that OPEC reached an agreement to limit crude output. OPEC sources said the group reached a deal to cut its oil production for the first time since 2008.

Oil Search (OSH.ASX)

osh

Medibank – Is Value Emerging?

Posted on | by Leon Hinde | Leave a Comment on Medibank – Is Value Emerging?

Medibank (MPL.ASX) is now trading at a price level that warrants attention. The stock is forecast to pay a fully franked dividend in FY17 of $0.12, placing the stock on a forward yield of 4%+.

We don’t see too much in the way of earnings growth with forecast NPAT in FY17 being similar to FY16, in or around $430m on EPS of $0.16.

The stock is approaching an oversold level and may see a small bounce, otherwise we’re likely to see sideways consolidation at or $2.50 – $2.60 at which time longer term holders should sell covered calls.

For the trader, deeper selling from today’s price will provide an entry level with a likely bounce back to the above stated target range.

mpl

 

 

 

 

 

 

 

 

ASX Mid-Week – Video Update

Posted on | by Leon Hinde | Leave a Comment on ASX Mid-Week – Video Update

I’ve decided this week to replace the usual multiple individual posts with a quick summary video. I think this does a better job of drawing your attention to where the opportunities are in the market and how to utilise the various Investor Signals’ market commentary services to help enhance your portfolio returns.

Please take the time to watch our quick mid-week video market update so you can keep informed from a timing perspective of the opportunities to focus on.