CBA FY16 Result

Posted on | by Leon Hinde | Leave a Comment on CBA FY16 Result

CBA.ASX delivered NPAT of $9.45b an increase of 3% on the same time last year. Fully franked final dividend of $2.22 per share.

Fy17 EPS growth outlook for 3% placing CBA on an FY17 forward yield of 5.5%.

Best risk reward strategy from here with CBA is to sell European calls at the $75.71 level into Sept for a $2.10 credit, which will keep exposure to the Aug dividend and deliver $4.32 of cash flow from each CBA share, whilst providing some downside protection. For help on this one, please email me  leon@investorsignals.com

CBA

 

 

ANZ – 3Q16 earnings

Posted on | by Leon Hinde | Leave a Comment on ANZ – 3Q16 earnings

ANZ.ASX ANZ’s 3Q16 update – earnings trends looked a little soft with a pickup in NPAT growth required in 4Q16 to reach consensus forecasts.

Asset quality trends also looked a little disappointing. FY17 forecast EPS growth 2% which places the stock on a forward yield of 6%.

From a technical perspective it’s worth noting the banks have now taken out the most recent highs of the long established down trend that has been in place since May 2015.

The next round of buy signals in the banks will be worth closer consideration.

ANZ

 

 

 

Bendigo and Adelaide Bank 2H16 result

Posted on | by Leon Hinde | Leave a Comment on Bendigo and Adelaide Bank 2H16 result

Bendigo (BEN.ASX) 2H16 result confirmed that underlying operating conditions remain challenging. Revenue grew by 2% compared to the 1H16 and the outlook remains challenging with subdued volume loan growth and ongoing pressure on margins from competition and lower interest rates.  

FY17 outlook is for cash earnings of around $450m on EPS of $0.96 and dividend payout of $0.67 placing the stock on a forward yield of almost 6.8%.

No signal present.

James Hardie 2Q16 Update

Posted on | by Leon Hinde | Leave a Comment on James Hardie 2Q16 Update

James Hardie (JHX.ASX) reported 2Q16 update and we see nothing here to stop the “buy on the dip” approach. We already hold this name (in client accounts) from lower levels and have sold the Nov $23 call options. For clients not holding this name, keep an eye out for our buy signal, I think we’re not too far away from an entry signal being triggered.

The stock trades on 25X forward FY17 earnings and we’re looking for EPS growth or around 15%. US housing data continues to look strong.

FY17 revenue in USD$1.9b, with EBITDA likely to be around USD$490m and USD$0.45 in dividends.

In AUD terms we’re looking at around 3% forward dividend yield.

JHX

 

 

 

 

Buy Brambles & Sell Call Options

Posted on | by Leon Hinde | Leave a Comment on Buy Brambles & Sell Call Options

Brambles (BXB.ASX) has pulled back from the recent high and now presents a buying opportunity. Leg into this trade in two positions and wait for a rally back to $13. Look to sell the $13.50 November call options to enhance the return from collecting the option premium and the upcoming $0.14 dividend on the 9th of September 2016.

 

 

Suncorp FY16 Earnings Result

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

Suncorp’s (SUN.ASX) FY16 earnings result was below consensus with core earnings of $1.1b. Total FY16 GI margins were down on the same time last year. Banking profit of $390m was ahead of consensus.

FY17 outlook for $1.2b profit with 2- 3% EPS growth and dividends per share (DPS) of $0.76 placing the stock on a forward yield of 5.8%

No signal present.

 

Tabcorp FY16 Earnings Result

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

Tabcorp (TAH.ASX) reported FY16 earnings with earnings in line with market expectations.  Full year dividend of $0.24

FY17 we look for underlying EPS growth of around 8 – 10% on $2.2b in revenue and EBIT of $370m. Forecast dividend of around $0.26 which will place the stock on a 5.2% yield.

There’s a potential buy on a pullback to $4.60 and we’ll be taking close notice of any algorithm signal we generate at or near this level.

TAH

 

 

Buy Westfield 5% cash flow for 4 months

Posted on | by Leon Hinde | Leave a Comment on Buy Westfield 5% cash flow for 4 months

We’re adding WFD.ASX to the model portfolio as an income trade. Buying today at $10.55 and selling an $11 November call option. A combination of the $0.18 August dividend and the $0.32 for the call option, generates approximately 5% cash flow for 4 months exposure.   If exercised, the return increase to almost 10%.