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TPG – Buy
TPG Telecom has traded down to $7.50 following a research report published by a leading investment bank this week, which highlighted a series of risks facing the business.
Despite the report, we see value in TPG and expect the stock to trade higher from the current level.
Since making the above post on 23 July, TPG has rallied to $8.20 and closed near $8.00 on Friday. We continue to see value in TPG and suggest investors watch for another entry opportunity below $8.00.
Apple – June Earnings
Apple July 30, 2020 — Apple announced financial results for its fiscal 2020 third quarter ended June 27, 2020. The Company posted quarterly revenue of $59.7 billion, an increase of 11 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 percent.
Apple has been under Algo Engine buy conditions since forming a low in March 2020.
The board of directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.
Apple declared a cash dividend of $0.82 per share of the Company’s common stock. This places Apple on a forward annualized yield of 0.75%.
CIMIC – 1H20 Earnings
Cimic Group delivered a soft 1H20 result that was below consensus expectations. 1H20 NPAT of A$317mn, down 14% on the same time last year.
Work-in-hand increased to A$38bn and the project pipeline for 2020 and beyond has now increased by 10% to $540bn plus.
CIMIC also announced an agreement with Elliott Advisors (UK) for the sale via a JV for 50% of Thiess, the world’s largest mining services provider. Providing joint control of Thiess to CIMIC and Elliott.
The transaction will help strengthen the CIMIC balance sheet and provide flexibility for CIMIC to resume a share buyback next year.
We see value at $21 – $22 per share.
Santos – Buy Signal
Santos is our preferred exposure within the energy sector. We highlight the price support at $5.00.
ASX 200 & BBOZ
Betashares Australian Equities is up 5% from the recent low as the XJO rolls over below the overhead resistance, which has built up at the 6200 level.
We expect a similar pattern to develop in the S&P500 equivalent BBUS.
Crown – Sell
Crown Resorts is under Algo Engine sell conditions and we see increasing selling pressure due to a weak earnings outlook.
Risks remain elevated coming into the next earnings release.
Amcor – Resistance $15
Amcor is under Algo Engine sell conditions and we see increasing selling pressure due to a weak earnings outlook.
Risks remain elevated coming into the next earnings release.
Aurizon – Trading Lower
Aurizon Holdings has been under Algo Engine sell conditions following the lower high formation at $5.00
Further downside price action is likely and yield support will build at $4.00 – $4.25. We’ll revisit AZJ once it trades into this range.
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