As the gold price finds buying support our basket of preferred names, Northern Star Resources, Evolution Mining, Newcrest Mining and Vaneck Vectors Gold Miners are among the best percentage performers today.
We continue to like Northern Star Resources as our main gold play.
Australia and New Zealand Banking Group are the first of the big four banks to report annual profits. There was not much to like in the result, Net Interest Margin pressure along with headwinds on cost control, means the outlook was downbeat.
Macquarie Group’s first-half result is due today and it has guided the 2019-20 profit will be “slightly down” on 2018-19.
The market is certain of a dividend cut at Westpac, which reports November 4.
UBS has warned the second-half of 2018-19 will be remembered as the “high watermark” for the sector, ” as the outlook deteriorates in an ultra-low rate environment.
We prefer the short side of CBA.
Raytheon was a “high conviction” buy expressed on the blog in August. The stock price is now up 20%+ following back-to-back strong quarterly earnings results.
Next year United Technology shareholders will vote on the merger with Raytheon. We expect this to proceed and anticipate further shareholder value to be unlocked in 2020.
Raytheon is listed on the New York Stock Exchange. If you would like Investor Signals to manage your international share portfolio, please call us on 1300 614 002.
We highlighted the buying opportunity in Webjet at $10 and the stock is now trading $11.30.
ResMed is a current holding in our ASX 100 model portfolio.
The company reports 1Q20 earnings on 25 October and we expect revenue growth to be 15%+ and EBIT to be up 10%+ on the same time last year.
We look for an entry-level into RMD on the current price weakness and will update our readers further, following the earnings result.
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see a buy-side opportunity approaching following recent price retracement. Look for the short-term indicators to turn positive within the support range indicated on the chart below.
Medibank Private is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
At 19x forward earnings and 2 – 4% earnings growth, Medibank is a strong candidate for a covered call overlay to enhance the investment returns.
The stock trades on a forward yield of 3% and when adding a covered call, we can boost the cash flow to 10% on an annualized basis.
Buy MPL at $3.25 and look for a move higher to $3.50 before selling call options.
For more information on this strategy, please call our office on 1300 614 002.
BHP Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The company reported Q1 production that was below analyst forecasts. The impact was most significant in copper where production was down 9%. Iron production was down 2% and thermal coal was also lower.
Despite the soft quarter, BHP reiterated its full-year production guidance.
Based on FY20 revenue of $43bn, EBITDA $25bn, net income $11bn, we have BHP trading 15x forward earnings and 4.5% yield.
Accumulate BHP within the $30 – $34.50 price range.
ResMed is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
RMD report earnings on the 24th Oct and the market is looking for 10%+ in EPS growth. We expect buying support to increase ahead of the result and see support building at $19.50.
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