NCM – Valuation Review

Posted on | by Leon Hinde

Newcrest Mining is under Algo Engine sell conditions. Our preferred gold names have been EVN and NST, which remain in our ASX 100 model portfolio.

Whilst there’s upside risk to NCM, if the gold price continues
higher, we remain cautious following the latest earnings update.

FY19 EBITDA of US$1,670m was close to market consensus and FY20 production guidance is similar to FY19, with 2.35-2.5 million ounces.

Our base case is FY20 earnings are unlikely to top FY19 and with the stock trading on an FY20 forward dividend yield of 1.6%, we see better opportunities elsewhere.

We’ll continue to monitor NCM and will review further following the next Algo Engine buy signal.

 

 

 

 

 

 

Amcor – Buy Signal

Posted on | by Leon Hinde

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.

US Markets – Sell Off

Posted on | by Leon Hinde

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.

 

 

NRW Holdings – Algo Buy Signal

Posted on | by Leon Hinde

 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.

REA – Rallies 5.5%

Posted on | by Leon Hinde

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.