REA Group – Earnings

Posted on | by Leon Hinde

REA Group is under Algo Engine buy conditions since switching in mid-September at $106.

REA has reported 1Q21 results ahead of analysts estimates with revenue of $196mn nd EBITDA of $124mn.

Although the management outlook statement remains positive, we have some concerns about valuation and consider the stock near resistance.

Woolworths – Valuation Review

Posted on | by Leon Hinde

Woolworths Group has been trading sideways in 2020 within the $35 to $40 price range. This provides a trading range for investors to consider or alternatively, selling calls at the upper band to generate extra cash flow.

On a valuation basis, using 10% EPS growth into 2022, it supports a 3% fully franked dividend yield and places the stock on a 34x forward PE ratio.

Deterra – Explained

Posted on | by Leon Hinde

Deterra Royalties is the new ASX listed company which separated from Iluka Resources. DRR owns Iron Ore royalties as the primary business.

The company is likely to see strong revenue growth over the coming years, generated by increased production from the current assets and new assets through either acquisition or financing development projects.

Based on FY22 earnings we have DRR trading on a forward yield of 5%+

Newcrest – Buy

Posted on | by Leon Hinde

Newcrest Mining remains under Algo Engine buy conditions. NCM has reported an in-line 1QFY21 result with group production of 503koz.

The company expects an improved production performance in 2Q.

We suggest investors accumulate NCM above the $29 support level.

Since writing the above post NCM has bounced off the $29 support level and is now trading at $30.64. The momentum indicators continue to trend higher.

CURE ETF

Posted on | by Leon Hinde

After recently taking profit in the CURE ETF, we again add the name back onto our watchlist and identify the range where we expect buying support to rebuild.

Buy $58.50 target.

Separate to the above opportunity, we see upside in the large-cap biotech stocks in the US. In particular, we like Abbvie, Biogen, Gilead, Johnson & Johnson, Merk, and Pfizer.

If you’d like to discuss setting up a US broking account with Investor Signals, please call me on 1300 614 002.

Since writing the above post CURE has rallied 5% and the large-cap biotech names were among the best performers overnight in the US.

Biogen rallied 44% overnight. This is a holding in our US high conviction portfolio.