BHP – Algo Buy Signal

Posted on | by Leon Hinde

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

The company reported Q1 production that was below analyst forecasts. The impact was most significant in copper where production was down 9%. Iron production was down 2% and thermal coal was also lower.

Despite the soft quarter, BHP reiterated its full-year production guidance.

Based on FY20 revenue of $43bn, EBITDA $25bn, net income $11bn, we have BHP trading 15x forward earnings and 4.5% yield.

Accumulate BHP within the $30 – $34.50 price range.

 

 

 

Resmed – Buy

Posted on | by Leon Hinde

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

RMD report earnings on the 24th Oct and the market is looking for 10%+ in EPS growth. We expect buying support to increase ahead of the result and see support building at $19.50.

 

 

A2 Milk – Buy the Dip

Posted on | by Leon Hinde

The A2 Milk Company is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

2H19 earnings growth was 39% and FY19 revenue was up 40%. The market was disappointed in the FY20 guidance and consensus earnings growth expectations have come down to 20%.

We look to accumulate  A2M near the $12.50 price level.

 

 

Webjet – Algo Buy Signal

Posted on | by Leon Hinde

Webjet is under Algo Engine buy conditions and see buying interest building, despite the impact of Thomas Cook going into compulsory liquidation.

FY20 revenue should increase by 20% to $440mn, EBIT 20%+ to $138mn and the effective dividend yield will move to 3%.

Buy Webjet $10 – $10.50 price range.

 

 

 

Sydney Airports – Buy Signal

Posted on | by Leon Hinde

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

We see buying support building between $7.80 and $8.00. On a rally back to $8.50, investors should consider selling a European call option into early 2020 to enhance the income return.

SYD goes ex-div $0.19 on the 28th of December.

 

IAG – Algo Buy Signal

Posted on | by Leon Hinde

Insurance Australia Group is now showing an Algo Engine buy signal and remains a long term holding in our ASX 100 model portfolio.

We see value emerging and consider the $7.50 price range as support and expect buying interest to remain solid.

Look for a move higher into the $8.00+ range and then sell covered call options to enhance the income return.

For more detail on the option strategy, please call our office on 1300 614 002.

 

 

Silver Lake Resource – Finding Support

Posted on | by Leon Hinde

Silver Lake Resources is under Algo Engin buy conditions and we now add the name to our watch list.

Silver Lake is a gold producer with its cornerstone asset the Mount Monger Gold Camp, located in Kalgoorlie, Western Australia. The Mount Monger Camp produced ~158,000 ounces in FY18 and has a proven history of Reserve replacement and discovery.

The chart below shows SLR finding support at $0.90 and the short-term indicators are turning higher.