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The post below is from December last year and we’re now seeing buying interest pick up in the oversold building names. James Hardie is leading the recovery in percentage terms and remains our preferred exposure.  Please check your charts for a real-time update.

James Hardie is under Algo Engine buy conditions and is our preferred consideration for the sector.

Building stocks have been sold off following this year’s rate increases in the US and weaker construction data both in the US and Australia. There is no doubt that weaker earnings trends are due, however, the question is… how much bad news is priced in?

James Hardie is finding buying support at $15.00

Boral has now sold off by 45% following the $8.20 high created in February.

The blog post below is from the 10th December and a check of the QBE chart today shows the price has bounced from the $10 support and is now trading at $10.55. We recommend selling covered call options or locking in the gains.

QBE is under Algo Engine buy conditions and we see value emerging near the $10 support level.

QBE chart from the 10th Dec.

QBE chart from today.

The post below is from the 15th of December and a check of the charts will show IPL now trading at $3.55. After buying IPL at $3.30, we feel today’s price level is an opportunity to take profit or sell covered call options.

IPL is under Algo Engine buy conditions and we see value emerging in the sub $3.50 price range.

IPL chart is from the 15th December.

IPL chart above is from today.

2018 Sector Performance of the ASX 200

TWE is a current holding in the ASX 100 model portfolio.

We recommend selling covered call options over TWE to enhance the income. $15 Feb call options are generating an additional $0.60 income per share.

TWE goes ex div $0.15 on the 7th of March.

The post below is from the 14th of December. BXB has since rallied from $10.00 to $10.42.

BXB will provide further detail in the coming weeks on the pending spin-off of their plastic pallet pooling business into a separate listed entity.

Our Algo Engine generated a buy signal in BXB following the recent higher low formation at $10.00.

We see scope for BXB to consolidate within the $10 – $11 price range. Adding  a covered call option will help enhance the cash flow return.

BXB goes ex-div $0.145 on the 7th March.  $10.51 March Euro call option adds an additional $0.25 per share.

We recommend buying Tabcorp at $4.25 and holding the investment through to the February reporting result. We feel the market is underestimating the earnings strength in the December half.

S32 is under Algo Engine buy conditions and with the stock finding support at $3.25, we recommend investors buy the stock.

S32 goes ex-div 8 cents on the 8th of March. Adding a  $3.56 March call generates an additional 10 cents per share of income.

Our Algo Engine generated a buy signal in Flight Centre and the stock is a current holding in the ASX 100 model portfolio.

We add this to our watch list, as buying interest builds around the $42 level.

FLT pays a $0.60 dividend on the 22nd of March.

Our Algo Engine has WPL, STO & OSH under current buy conditions and all three names are holdings in the ASX 100 model portfolio.

The following 5YR graph of Crude puts into perspective the 45% sell off we’ve seen in the past 12 weeks. Should Crude continue to find support, as we expect, WPL, STO & OSH are our preferred exposures. 

OOO, the Betashares Oil ETF is another alternative for investors to consider.

Since we started buying the OOO on the 2nd of Jan, investors are now up 7%+

Chart: Betashares Crude Oil ETF.