Coca-Cola Amatil is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support developing near the $10 level, supported by 4 – 5% EPS growth and a 4.8% dividend yield.
Look for a move back towards $10.75 and then sell call options to enhance the income return. For more information on the derivative strategy, please call our office on 1300 614 002.
US Treasury yields have surged to the highest levels since late July, with the 10-year yield jumping to 1.945%.
The higher rates in the US bonds have seen domestic REITs move lower by an average of 5%, despite a generally better-than-expected earnings season.
An opportunity will soon approach within a number of the yield sensitive names and investors should be watching out for oversold levels to present within REITs, infrastructure, utilities and gold names.
An example of a name we’re watching for a buying point is Dexus Group. We’ll update you on the blog as we see the buying point playout.
QBE Insurance Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Recent earnings update shows QBE delivering ahead of consensus. Growth should remain strong and upgrades to 2020 earnings are now likely. The balance sheet remains robust, with A$1bn buyback over three years being executed.
Higher yields in US treasuries are helping to lift investor sentiment towards QBE and financial stocks in general.
Buy QBE and look for a move into the $13.50 price range.
Northern Star Resources is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
Gold remains under pressure as US yields push higher during the current “risk on” phase in the market. We are also experiencing selling in the “yield sensitive” securities such as consumer staples, utilities, infrastructure and REITs.
We now forecast price support developing in NST near $8.00.
Altium is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We recommend accumulating ALU at $32 following the recent price retracement.
Buy $32
National Australia Bank is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
NAB reported FY19 cash earnings of $5.1bn and opted to operate a discounted DRP as well as partially underwrite the DRP, instead of discounted equity raising, as was the case with WBC.
ANZ, WBC, NAB and MQG all offer yield support but little in the way of near -term earnings growth.
Downer EDI is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The company reaffirmed FY20 net profit after tax guidance of $365m, which represents 7% growth on the same time last year.
Dow trades on a forward yield of 3.7%.
We see value in accumulating the stock within the $7.50 – $8.00 price range.
Amcor is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Amcor will provide an investor update on the 8th of November. We anticipate the commentary around cost synergies, post the Bemis acquisition and the share buyback will help renew buying interest in the stock
Buy Amcor for a move back towards $15.50
Woodside Petroleum is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support developing near the $32 level, supported by a 5% yield.
Betashares Global Cybersecurity is under Algo Engine buy conditions and is a current holding in our All ASX ETF model portfolio.
We see support building at $7.00 and expect 5 to 10% upside in the next 6 weeks.
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