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.

Alumina

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

We see price support building at $1.38 and suggest traders watch the short-term momentum indicators and stay “long” AWC whilst the indicators trend higher.

Stop loss on a break below $1.38.

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.

Aristocrat Leisure

Aristocrat Leisure has now switched to Algo Engine sell conditions and has been removed from our ASX 100 model portfolio.

Aristocrat delivered 1H20 net profit, (NPATA), of A$368mn which was down 13% on the same time last year. Growth in digital earnings was not enough to offset weak revenue in the Americas.

We’re not willing to look at shorting ALL as we see a normalization of the business conditions by 2022, we’ll revisit this name should we see a “buy on the dip” opportunity later this year.

NRW Holdings

ASX:NRW has been among the best-performing stocks over the past few sessions following a strong trading update.

NWH indicated they have a strong pipeline of new projects as an acceleration of public infrastructure spending occurs.

Based on FY21 earnings of $160mn we have the stock on a forward yield of 4.1%.