Commonwealth Bank of is under Algo Engine sell conditions and we’ll get insight into the earnings picture when the company reports their FY19 results on Wednesday 7th August.
We remain concerned about the declining profitability in retail banking.
With the stock trading on a 5% dividend yield, we expect to see buying support develop closer to the $75 price range.
Woodside Petroleum is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has found support at $34 and the short-term indicators have now turned positive.
Iluka Resources is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has found support at $9 and the short-term indicators have now turned positive.
GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio. The share price is up 30% since being added back in October 2018.
The recent price retracement from $6.50 to $6.10 is temporary weakness following the rights issue this month. We suggest investors take advantage of the pullback in the share price and begin accumulating.
GPT goes ex-div $0.1285 on the 28th December 2019.
Cimic Group is under Algo Engine sell conditions since forming a lower high back in February at $50.
A weak first-half earnings result has seen the sell-off accelerate in the past few days. We’d normally give this name a wide berth, whilst we wait for confirmation of earnings and in particular, free cash flow improvements.
However, we draw your attention to the “up to 10%” share buyback which the company will recommence in August.
Australia and New Zealand Banking Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Based on $1.60 of dividends per share we have ANZ on a forward yield of 5.8%. The prospect of up to $2.5bn in share buybacks starting next year underpins downside risks.
The NASDAQ index is under Algo Engine buy conditions following the higher low in May. Since the signal was generated, the index has rallied 15% and remains the only major index still under buy conditions.
The instrument to take advantage of the above trade is best represented in the Betashares Nasdaq 100
Alphabet is a current holding in our US S&P100 model portfolio.
Shares of Alphabet rose after its second-quarter earnings announcement with earnings and revenue beating market expectations.
The strong earnings came from higher ad sales and growth at its cloud unit. Google reported advertising revenue of $32.6 Bn for the second quarter, compared to $28.09 Bn during the second quarter last year.
Revenue came in at $38.94 Bn up 19% from last year and earnings per share were $14.21, up 21%.
Alphabet said its board of directors approved a re-purchase of up to an additional $25 Bn of its Class C capital stock.
Alphabet is on our high conviction buy list, underpinned by strong revenue growth and the large scale share buyback.
Suncorp Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see buying support building at $13.25 and our upside target for the stock is $14.00+.
SUN goes ex-div $0.40 on the 15th August and adding a covered call option into November will help boost the cash flow return.
ASX:OZL} is a current holding in our ASX 100 model portfolio.
The 2Q 19 production result was solid with higher copper production
offset by lower gold output. OZL produced 28kt of copper and 27koz of gold during the quarter.
Construction work on Carrapateena is progressing well, with the process plant nearing completion.
OZL is to release its earnings result on 28 August.
Based on FY20 earnings we have OZL trading 17x and a 3% dividend yield. Increased production from expanding mine capacity should help to underpin EPS growth 2 – 3 years out.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.