OceanaGold is under Algo Engine buy conditions and is seeing increased buying interest as the stock rallies from the $3.90 support level.
Gold prices hit a three-month high this month as investors flee to the safe-haven bullion amid escalated trade tensions and lower global interest rates. Additionally, if we see the US dollar weaken, gold will appreciate as it becomes cheaper for investors holding other currencies.
Buy OceanaGold and look for a rally to $4.50+
Wesfarmers is currently under Algo Engine sell conditions and the recent sell-off from $38.80 may soon see a new buying opportunity emerge.
The market is in the process of repricing Wesfarmers, following tougher trading conditions, which were highlighted during the strategy day presentation.
The earnings update included downward guidance to the department store division and general headwinds across a number of the Wesfarmers businesses. Investors also need to consider the supply chain investment and system upgrades, as capex spending is set to increase.
We anticipate an overreaction to the sell side and therefore, a buy opportunity may soon approach. Keep Wesfarmers on your radar and watch for the next Algo Engine buy signal.
Wesfarmers trades at 21x earnings and on a 4% yield. EPS growth should remain around 4 -5% and we see support for the share price at $34.00
Catapult Group International has now switched from sell to buy conditions and is showing in our “Recent Signals” list.
CAT is a global sports analytics company that provides elite sporting organisations and athletes with detailed, real time data and analytics to monitor and measure athletes. Its products have been used by more than 500 sports teams and organisations worldwide. Its product suite encompasses a range of hardware and software solutions.
Generally, we don’t spend much time on the smaller cap stocks, however, we draw your attention to this one and highlight the need to run a stop loss on a break in price, below the $1.06 support level.
Carsales.Com is under Algo Engine sell conditions following the lower high formation at $13.50.
Earnings guidance provided by Carsales for FY19 are for EBITDA of $210mn and NPAT of A$131mn. Revenue guidance was a little weak, indicating full year profits are being supported by cost out initiatives.
We will review CAR on the price retracement & Algo Engine buy signal.
Crown Resorts is now under Algo Engine buy conditions and we continue to see upside opportunity in the share price.
CWN goes ex-div $0.30 on the 20th September and the stock trades on a forward yield of 4.5%.
Note: There is a price gap back to $11.80. With the stock trading $11.90 today we’ve almost seen the price gap closed. Expect a rally from $11.80, we view this level as a discounted entry point.
Buy Crown between $11.80 & $12.00.
Insurance Australia Group has been added into the ASX 100 model portfolio following the recent Algo Engine buy signal.
We see buying support for IAG at $7.50
IAG goes ex dividend on the 21st of August for $0.20. Adding a Dec $8.00 call option will generate an additional $0.30 per share of income.
Altium is now under Algo Engine buy conditions.
Altium Limited is an American, Australian domicile owned public software company that provides PC-based electronics design software for engineers who design printed circuit boards. Founded as Protel Systems Pty Ltd in Tasmania in 1985, Altium now has regional headquarters in the United States, Australia, China, Europe and Japan with re-sellers in all other major markets.
As a recent addition to the ASX 100 index we will begin to analyse the financial performance of the business and update you on future research.
OZ Minerals was recently added into our ASX 100 model portfolio.
We’re mindful of the selling pressure base metal prices have been under since the beginning of last month, with copper and nickel prices down 8% and 9%, respectively.
Commissioning of the Carrapateena mine later this year remains a key near-term catalyst to help support the OZL share price. On a valuation basis, we have OZL trading 10x FY20 earnings on a 2.4% dividend yield.
The company goes ex-div $0.08 on the 31st August.
We recommended buying Sydney at $7.45 and the share price is now trading $7.75.
Selling a September $7.76 Euro call option will enhance the cash flow by an additional $0.19 per share.
SYD goes ex-div $0.195 on the 27th June.
We recommend investors add the IAA, (Asia top 50 ETF), and IZZ, (China Large-Cap ETF) to their watch lists.
There is a high probability that we’re now looking at oversold levels on both of these ETF’s and value is beginning to emerge.
Also look at the ASIA ETF, which provides exposure to technology focused companies.
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