Nextdc FY20 revenue $200m, EBITDA $104m and EPS negative $0.12. Nil dividend.
Excluding depreciation and amortization add-backs, NXT operates at a loss. We continue to monitor the recent claim made by a fund manager, regarding the questionable accounting standards adopted by the company.
NXT is now guiding to FY21 revenue to be in the range of $240m – $250m.
Orica has found support after re-testing the $17 higher low price point.
Sonic Healthcare FY21 revenue +5% to $7.4bn and EBIT growth of 5%+ supports a forward yield of 3%.
FY21 EBITDA estimates, range from $1.5bn – $1.75bn.
Buy Sonic within the $30 – $32 price range, as indicated below.
Coles Group is now under Algo Engine buy conditions following the sell-off from $19.30 down to $17.50.
We expect Coles share price to track sideways within the $17 – $19 price range and suggest investors consider overlaying a covered call option to enhance the cash flow return.
For more information on the strategy, please call our office on 1300 614 002.
The A2 Milk Company is under Algo Engine buy conditions and we highlight the price support at $16.50.
Watch for the short-term momentum indicators to turn higher.
Following the entitlement offer Sydney net debt position will reduce from $9.1 billion to $7.1 billion. Post the capital raising, available cash will increase to $4.6 billion.
New securities under the final allotment commence trading on 14 September.
If you missed last night’s webinar, then catch up by watching it here.
Leon will be hosting our next webinar tonight at 7pm. Please register, so we can send you the link, 15 minutes before it commences.
Sonic has corrected from $38 down to $32 and we expect to soon see buying interest rebuild.
Look for the short-term momentum indicators to turn higher within the price range indicated on the chart below.
Bega Cheese is under Algo Engine buy conditions following the recent signal at $4.50.
FY20 Full year earnings exceeded consensus and the key numbers are;
Revenue increased by 5% to $1.5 billion
Operating cash flow $138 million
Net debt reduction by $52 million to $236 million
Export sales increased 15% to $523 million
Inventory reduction by $15 million to $257 million
Normalised EBITDA decreased by 2% to $103.0 million
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