Evolution Mining – Buy
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The backdrop should now support a rally in gold prices and EVN offers upside from the current $3.80 level.
Star Entertainment – Switches to Buy Conditions
The Star Entertainment Group is now under Algo Engine buy conditions following a recent high low formation at $4.55.
We’re attracted to the longer-term fundamentals for Star but have been reluctant to hold the position whilst the stock was under sell conditions. The recent break higher in price and the shift to Algo buy conditions, means we’ve added Star back into our model portfolio.
The February earnings result will be a key catalyst, where the market will be looking for earnings growth beyond just cost control.
Lendlease – Finding Support
Lendlease is under Algo Engine buy conditions and the recent retracement in price from $20 to $18 provides another entry opportunity.
We expect buying interest to increase between $16.50 – $18.00.
IAG – Algo Buy Signal
Insurance Australia Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support for IAG at $7.50
Coles – Value is Approaching
Coles Group is under Algo Engine buy conditions following the August buy signal at $13.00.
Since then Coles has rallied to $16, supported by investor enthusiasm for the aggressive cost-cutting program. As the stock price settles back we highlight the $14.50 level, as an area where value will again re-emerge.
Buy Coles within the $14.00 to $15.00 price range.
ASX – Algo Buy Signal
ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support for ASX at $78.00
Invocare – Buy Signal
InvoCare is under Algo Engine buy conditions and the short-term indicators are now turning positive.
We see buying support building near $12.50
FY20 EPS growth should be 6%+ and we have the stock on a forward yield of 3.2%.
Treasury Wines – Sellers are in Control
Treasury Wine Estates is under Algo Engine sell conditions and we highlight the recent softness in US sales data as a concern.
Sales within Asia continue to offset the US related weakness, however, we expect the TWE share price to remain under pressure.
Based on FY20 & FY21 EPS growth remaining in the 10 – 15% range, we have TWE EBIT growing from $660mn in FY19 to $850mn in FY21. This supports a forward yield of 3%.
We’re not holding TWE in our portfolio at present and we prepared today’s post on TWE as a reminder of the opportunity that lies ahead when the stock switches to buy conditions. We expect to see this in the first quarter of the New Year.
Downside target $15.50 – $16.50
REA Group – Algo Buy Signal
REA Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see buying support increasing at the $103 level.
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