Amcor is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The defensive earnings stream and the prospect of a share buyback next year will help to underpin any near-term share price weakness.
Buy Amcor within the range indicated below.
Betashares Us Eq Strong Bear Hedged as the US markets roll over and the short-term indicators point lower, buying the BBUS which is an inverse ETF x2 on the S&P500 will provide an opportunity to profit from any continued selling.
The BBUS goes up in value if the market goes down and on a multiplier of 2x. If the S&P500 index falls 1% the BBUS goes up in value by 2%.
If you’d like to discuss portfolio protection strategies, please call our office on 1300 614 002.
Betashares Australian Equities is under Algo Engine buy conditions. It’s an inverse ETF x2 on the ASX 200 index. Meaning, it goes up in value if the market goes down and on a multiplier of x2.
If the index falls 1% the BBOZ goes up in value by 2%.
NRW Holdings is now under Algo Engine buy conditions following the high low pattern at $2.10.
The stock is outside our normal radar, however, we notice a number of analysts have recently upgraded their earnings outlook for the company.
The positive sentiment is based on an increase in work under contract and scope from existing contract mining clients to increase.
We see upside risk to forecasts from higher than expected conversion of the group’s resources pipeline, (opportunities from iron ore projects in particular) and the East Coast infrastructure project.
We flag NRW Holdings as worthy of further analysis. Watch the short-term indicators for a turn higher.
Spark Infrastructure is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
We see price support building near the new high low price formation at $2.33
Rio Tinto is now showing an Algo Engine buy signal and has been added into our ASX 100 model portfolio.
We see value emerging and consider the $82 – $87 price range as a good entry-level.
REA Group rallied 5.5% on Friday following a better than expected earnings result. Our Algo Engine triggered a buy signal Thursday after 3.30pm going into the market close.
The chart below shows the entry signal, along with the $87 support level where buying interest began to accelerate.
AGL Energy is a under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
AGL announced FY19 underlying NPAT of $1,040m and lowered FY20 guidance to be A$780-860m. The forecast is below already adjusted market estimates and we’ve seen the share price trade lower as a result.
With the stock at $19 there is value supported by a 5% dividend yield. This trade is an example where investors should look to add a covered call option to enhance the yield to 10% per annum.
For more information on the option strategy, please call our office on 1300 614 002.
Commonwealth Bank of has announced FY19 cash earnings of $8,5bn, slightly below consensus estimates. The full-year dividend of $4.30 was in line with estimates and places the stock on a 5.1% yield.
Weak revenues were a clear issue with and FY20 headwinds on both revenues and costs will see downside pressure build for the CBA share price.
Suncorp Group FY19 cash earnings of A$1.15bn are mostly inline with estimates.
The insurance margins are ahead of forecasts and the positive surprise that has lifted the share price is the announcement of the $0.44 final dividend plus $0.39 capital return.
The capital return of $500m is expected on the 24th of October subject to approval at the AGM.
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