AMD vs Intel

Posted on | by Leon Hinde

NAS:INTL disappointed the market on Friday when it’s earnings fell short of consensus and delays in new chip technology were announced.

When we review the Algo Engine signals we can see Advanced Micro Devices is under buy conditions and has rallied from $48 to $69, whereas, Intel was under sell signals, (since making a lower high at $65) and has now collapsed to $49.

We’re inclined to take profit on the AMD trade and look to soon take advantage of Intel falling into oversold levels.

CIMIC – Buy

Posted on | by Leon Hinde

Cimic Group we are often cautious buying stocks that are under primary Algo Engine sell conditions. However, CIMIC may have found support at $21 and the short-term interim indicators have turned positive.

CIMIC focuses on infrastructure projects in Australia, New Zealand, and Asia. The balance sheet has been repaired following the restructuring and exit of their middle eastern businesses.

In general, governments are pushing through infrastructure projects with greater priority, as a way of stimulating the economy.

CIMIC reports earnings on 30 July.

APA – Buy

Posted on | by Leon Hinde

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

We see price support at $11.00 and reaffirm our “accumulate” rating. 

APA 1H20 results.

NASDAQ – Leading Indicator

Posted on | by Leon Hinde

The NASDAQ remains our leading indicator of global equity markets.

We draw your attention to the index breaking below the 10-day average, this provides an early warning for stalling momentum.

For more detail on shorting/hedging strategies, please call me on 1300 614 002. 

South 32 – Production Results

Posted on | by Leon Hinde

South32 remains under Algo Engine sell conditions, but we continue to monitor the buying activity following increased speculation that the company could be a takeover target.

S32 reported June quarter production numbers which were in line with market expectations. Manganese and Cannington surprising to the upside and Met Coal disappointing.

June quarter manganese ore production was up on recent revised guidance.

2020 earnings will be down significantly on 2019, caused by lower commodity prices. EBIT will fall by 30 – 40% and EPS falls from $0.20 to $0.05. It’s not until 2022 that markets expect S32 earnings to recapture the levels of 2019.

A slow down in global economic growth would adversely impact prices across aluminium, alumina, manganese, nickel, silver and coal.

IPL – Valuation review

Posted on | by Leon Hinde

Incitec Pivot operates in explosive/mining services and fertilizers. The stock remains under Algo Engine sell conditions, but we continue to watch the buying momentum and the upcoming earnings result for signs of strength.

We are encouraged by the recent capital raising which has helped to strengthen the balance sheet and should help navigate any short-term COVID-19 volatility.

IPL trades on a forward yield of 2.2%.