Flight Centre: Forming A Technical Base Near $46.00

Posted on | by Todd

Since posting an all-time high of $70.50 on August 20th, shares of FLT have dropped over 30% to the current level of $47.00 in early trade today.

Much of the negative sentiment has been focused on the potential loss of market share from other online booking agencies.

However, recent data shows that the investment that FLT made in its in-house online service is starting to pay dividends.

Over the last several months, online flight and hotel bookings have risen to over 20% from just over 5% earlier in the year.

At current levels, FLT is trading at 16X earnings and a 3.7% yield.

Technically, the stock is forming a “rounded bottom” pattern relative to the November 2nd low at $44.20.

We see the first level of resistance at $52.50 with a longer-term target near $57.15. Flight Centre

Macquarie Upgrades Earnings

Posted on | by Leon Hinde

Macquarie Group is a current holding in the ASX100 model portfolio.

Macquarie upgraded their earnings guidance for FY19 profit to be up 15% from a previous estimate of 10%.

Now that the ACCC has given the green light for Santos to acquire Quadrant Energy, MQG stands to collect about $500 million for their 22% stake in Quadrant.

Macquarie Group

 

Buy Wesfarmers

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in Wesfarmers into the ASX close on Friday at $44.40.

This “higher low” pattern is referenced to the intraday low of $43.70 posted on May 10th.

We see value for investors emerging in the $44.50 range.

Following the spin-off of Coles, look to sell covered call options to enhance the income return.

Wesfarmers

 

ASX

Posted on | by Leon Hinde

ASX is one alternative for investors looking for a replacement for bank stocks within their portfolios. ASX offers 3.5% yield, (fully franked) and when combined with a covered call option, the cash flow is boosted to 10% p/a.

Our Algo Engine flagged a recent buy signal on the high low formation at $58.

ASX is also a current holding in the ASX100 model portfolio, up 38% since being added back in September 2016.

 

Local Oil Names Rebound In Front Of OPEC Meeting

Posted on | by Todd

The price of West Texas Intermediate (WTI) Crude oil surged to a 4-year high of $76.90 just over a month ago.

Since then WTI prices have plummeted almost 30% and reached a low of $54.70 this week.

It’s clear that the market overestimated the impact of Iranian sanctions, increases in Non-OPEC production and the forecasts for lower oil demand in 2019 from the EIA.

Aside from the technically oversold conditions, the OPEC producers have hinted that they will take measures to shore up crude oil prices when they meet in Vienna on December 6th.

After trading to 18-months lows earlier this week, both WPL and OSH are now under ALGO buy signals.

We consider a price reversion to higher levels a likely outcome with initial resistance for WPL at $35.05 and OSH at $8.15.

Woodside Petroleum

Oil Search

Ramsay Firms After AGM

Posted on | by Todd

Shares of RHC have been edging higher as investors respond favorably to their recent AGM on Tuesday.

With respect to their Capio AB acquisition, management continues to target overall positive core growth of up to 2% in FY 2019.

With the share price at  22X present earnings, we would have liked to seen a higher rate of expected core growth to sustain a rally from current levels.

RHC remains under an ALGO sell signal but we expect the $51.00 level to show solid support and an ALGO buy signal in the medium-term.

Ramsay Health

 

 

 

 

Crown Resorts Is Oversold

Posted on | by Leon Hinde

Crown Resorts is a current holding within our ASX100 model portfolio.

Following the recent sell-off on the back of global concerns about slower VIP growth, the stock has retraced from $14.50 to $11.75, which forms a “double bottom” pattern dating back to October 2017.

At $11.75 we believe Crown offers value and investors should look to accumulate the stock for a move higher.