OZ Minerals is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
OZL generates solid cashflow from established copper production and the company maintains a defensive balance sheet. There’s upside for investors as the new Carrapateena development project is de-risked in FY20.
Iluka Resources is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We expect to see buying interest pick up near the current $7.00 price level.
Buy ILU within the $7.00 – $7.50 price range.
Boral has been under Algo Engine sell conditions since forming a lower high at $5.75 back in July.
The share price is now down 30% from the July high and much of this selling occurred yesterday following the FY19 earnings result. Underlying NPAT was down 7%, at $440m & EBITDA was down 2%, at $1,037m.
A pick up in US housing and local infrastructure spending should help to underpin Boral’s earnings. The stock trades on 10x earnings and a forward yield of 5%.
Tassal Group is now under Algo Engine buy conditions following the higher low formation at $4.30.
Tassal Group is not a core holding and is viewed as a shorter-term trading opportunity. We’re looking for the momentum indicators to turn higher and buying support to build within the range displayed on the chart below.
Accumulate within the $4.00 to $4.30 level.
{ASX:SKI) is under Algo Engine buy conditions.
The company report 1H19 result EBITDA $412m and the dividend was as per guidance at $0.075 with $0.15 reiterated for the full year. Spark Infrastructure remains attractive in a low-interest-rate environment, offering 6.5% forward yield.
Ramsay Health Care is under Algo Engine sell conditions and we may see further weakness in the share price down to the $62 level.
FY20 earnings outlook suggests 2 – 4% EPS growth supporting a forward dividend yield of 2.3%.
OZ Minerals is on our radar following the price retracement back to $8.60.
We expect buying support to build and the short-term indicators to turn positive.
1H19 EBITDA of $163m and NPAT of $44m were broadly in line with consensus and the interim dividend was 8c. Forward yield is 4.5%.
Accumulate OZL.
Fortescue Metals Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The FY19 earnings result was solid with underlying EBITDA US$6b, the strong result helped to drive down net debt to US$2.1b which reflects a gearing ratio of 16%.
A final dividend of A$0.24 was declared, lifting the full-year payment to
A$1.14, translating to a yield of 16%.
Volatility in spot iron-ore prices continues to be a key driver of the share price. Iron ore futures are now trading at their lowest price in more than six months.
Note: RIO at $83 is now on our watchlists and we suggest tracking the short-term indicators for a reversal higher.
FMG
RIO
Coles Group remains under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has rallied 6% over the past week and we now recommend selling covered call options to enhance the income return.
COL goes ex-div $0.24 on the 28th of August.
Northern Star Resources is under Algo Engine buy conditions and a current holding in the ASX 100 model portfolio.
The stock has recently retraced from $14.00 back down to $11.50. We expect to see buying support increase for Northern Star and other gold produces.
Also, review EVN & GOR.
Long-term graph of the gold price.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453