Telstra

Telstra Corporation is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see buying support at $3.00 and highlight the short-term indicators have now turned positive. 

TLS goes ex-div $0.05 28th August. 

Call our office on 1300 614 002 to discuss the derivative strategy to enhance the income return. 

Coles – Value Emerging

Coles Group is under Algo Engine buy conditions and the recent pullback to $15.00 provides an attractive entry-level.

Coles reported March quarter sales with total supermarket sales growth up a record 14%.  With the stock trading on a forward dividend yield of 3.5%, we expect the share price to remain well supported.

Buy Coles and consider selling a covered call option to enhance the income return.

For more details on the option strategy, please call our office on 1300 614 002.

CIMIC Group

Cimic Group

CIMIC provided no update on 2020 guidance, but reported its 1Q20 result with revenue of A$3.3bn, down 3% on the same time last year. NPAT was down 8% to $166mn.

We forecast 2020 full year NPAT to be in the range of A$700 – A$750mn.

Buy above $22.50 support.

Newcrest – Buy

Newcrest Mining has moved to bolster their balance after raising $1.1bn which will be used for growth.

Newcrest’s balance sheet is in good shape with over $1.5bn in cash and about the same in undrawn facilities. Gearing remains low at 15%.

NCM has now rallied to $30+ and we will consider taking profit within the $31 – $32 price range. 

CBA

Commonwealth Bank of Australia – unaudited cash profit fell 23% in the three months ended March 31 to $1.3 billion from $1.7 billion in the year-earlier.

CBA has provisioned $1.5 billion for COVID-19 provisions.

The below graph provides a picture of the trend that short-term traders may be interested in.