Bluescope Steel – Algo Buy

Posted on | by Leon Hinde

ASX:BL is under Algo Engine buy conditions. BSL provided a trading update and now expects EBIT for 2H FY22 to be $1.375-1.475bn.

The more robust outlook is driven by improved earnings expectations for North America with better-than-expected realised steel prices and spreads in the United States.

Based on FY23 earnings we have Bluescope on a 2.3% forward dividend yield.

Nvidia – Q1 Earnings

Posted on | by Leon Hinde

Nvidia will slow down its hiring pace and control expenses as the company deals with a challenging macroeconomic environment. Revenue for the March quarter came in at $8.29bn on EPS of $1.36.

Forecast revenue for the June quarter is expected to be $8.1 billion.

The company’s operating expenses increased 35% year-over-year. On the positive side, demand for its graphics processors used for gaming and artificial intelligence helped support sales growth of 46% year-over-year. Nvidia’s data center business, which sells chips for cloud computing companies and enterprises, grew 83% annually to $3.75 billion.

Nvidia said its board has authorized an additional $15 billion in share buybacks through the end of next year.

BHP

Posted on | by Leon Hinde

Rebasing investor expectations for BHP without the contribution from its petroleum business places the stock on a forward yield of 6% with flat to lower adjusted EPS into FY23.

Iron ore now represents around 50%, Copper 25%, with Coal and Nickel remaining other key exposures. We expect the eventual divestment of its remaining thermal coal assets.

Tabcorp Demerger

Posted on | by Leon Hinde

Tabcorp split into two businesses yesterday:

  • A wagering business, which will continue to be called Tabcorp (TAH)
  • And a lotteries business, new name The Lottery Corporation (TLC). 

Bitcoin – Sell Signal

Posted on | by Leon Hinde

The rebound in the NASDAQ has been sharp and it’s possible we’re now looking at a level of overhead resistance. For crypto investors, this provides an opportunity to consider hedging or an outright short position.

The strategy requires a stop loss which means any short exposure is closed out if the market rally continues.

7/4/22 update: BTC-USD has rolled over and the technical setup remains negative.

23/4/22 update: The NASDAQ continues to move lower reflecting a risk-off sentiment, which is also impacting Bitcoin. BTC is under Algo Engine sell conditions and we remain short Bitcoin futures as an open trade.

26/5 update: Bitcoin has continued to trade lower and we now identify the overhead resistance at 30590 as the first level to watch for a potential price reversal. Since flagging the “short” setup in Bitcoin on 7 April, the crypto has lost 15,000 in the move from 45,000 down to 30,000.