Commonwealth Bank of remains under Algo Engine sell conditions and the only Australian Bank in our model is Westpac.
CBA trades almost 20x forward earnings which is a 30%+ premium to the other major banks.
Our deep value recovery play is the BNKS ETF which captures a broader global exposure.
The A2 Milk Company is now under Algo Engine buy conditions. We are watching for buying support to build near the $18.75 level.
Watch the short-term momentum indicators for a turn higher.
Telstra Corporation is under Algo Engine sell conditions after forming a lower high formation at $3.60 back in July.
Telstra reported revenue for the year down 6% to $24bn, profit down 14% to $1.84bn.
Telstra estimated the coronavirus economic-related impact caused a $200 million hit to earnings.
Telstra is likely to trade within the $3.20 support to $3.50 resistance range until late 2021 when we look for the further action on Infrastructure Co spin-off to result in a break to the upside.
Transurban is under Algo Engine sell conditions and we’ve remained cautious on valuation grounds and the likely reduced dividend payout.
TCL’s earnings were below consensus and risks exist on breached covenants in the US, along with ongoing COVID-19 volume impacts.
Target $12.50
Vaneck Vectors Gold Miners seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index. The Index is intended to track the overall performance of companies involved in the gold mining industry.
Buy GDX within the $50 – $55 price range.
Computershare FY20 earnings are in-line with guidance, down 20% on the same time last year.
What’s now concerning is FY21 guidance has been downgraded and management is now forecasting a further 10% decline next year.
We remain negative on the CPU outlook and retain our “short” exposure.
NASDAQ has closed below the 10 day average following profit-taking in tech stocks.
We continue to see the overall index as “overvalued” given compressed yields and negative revenue growth for a large number of the index constituents.
Bega Cheese remains under Algo Engine buy conditions and we highlight the recent higher low formed at $4.40.
The stock price continues to trade higher heading into the 2H20 earnings result.
Seek is under Algo Engine sell conditions and we remain on the short-side of the trade.
Two negatives we focus on:-
1}Surprise need to raise money in the bond market; and
2} Announcing they were dumping the final dividend in a bid to preserve capital, blaming the “uncertain environment” for the decision.
The above post was from Monday. Following today’s earnings release, Seek is down 13%. Seek has been a high conviction “short” trade expressed on our blog and in our Monday night webinar.
We suggest covering the short and taking profit.
Did you miss last night’s webinar? Catch up by watching it here.
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