Buy Crown Resorts
We recommend accumulating Crown Resorts near the $11.75 price range
CWN offers investors an attractive return with a partially franked dividend yield of 4.9% and is trading at 20x FY19’s estimated earnings.
Crown
Buy UniBail-Rodamco-Westfield
UniBail-Rodamco is the European property conglomerate which acquired the global shopping center giant, Westfield.
As UniBail continues consolidating their expanded portfolio, investors can expect to hear more about “non-core” asset sales.
The long-term play for UniBail is to keep the best of the high quality assets from the combined groups.
A combination of higher bond yields and impatient retail investors have seen the stock price fall to $12.50.
This places URW on a 6% yield and we’re now looking at a share price that should start to find institutional buying interest.
Unibail
Buy Oil Search
Our ALGO Engine generated a buy signal in Oil Search at $7.50 on October 30th.
With LNG prices firming, we recommend investors accumulate OSH shares at current levels.
OSH is our preferred value opportunity even though WPL and STO also look reasonable over the medium-term.
Oli Search
Macquarie Group – Guides Towards 10% EPS Growth
Macquarie Group was added to the ASX model portfolios following the recent ALGO Engine buy signal at $115 on October 12th.
1H19 NPAT is up 5% on the same time last year, and importantly, the group has upgraded its guidance for FY19 profit to be up approximately 10%.
Macquarie Group
Crown Resorts – Looking Extremely Oversold
After testing a 12-month low at $11.90 in early trade, shares of Crown provide an opportunistic entry level for both investors and traders. The share price has been washing out following last week’s average earnings result.
With the share price sliding over 20% lower since mid-August, we believe we’re now looking at an inflection point with new buying demand ready to build.
High Growth Names – Buying Momentum In ALL & TWE
Over the last three years, ALL & TWE have been among the best performing stocks within the ASX100 model portfolio.
Both names now reflect a “higher low” chart formation and Algo Engine buy signals.
TWE’s 20% sell-off post FY18 results provides an attractive entry point. FY19 EPS growth is still likely to be in the range of 15 – 20%.
Flight Center – Value At $45.50
Flight Center is under ALGO Engine buy signal and with the share price retracing from $70 back down to $45.50, we now believe buying demand will increase.
Flight Centre
Amcor – Shorts Will Need To Cover
Shares of Amcor are poised to rally as the Bemis takeover deal is finalised.
Hedge funds who are short Amcor & long Bemis will begin unwinding the trade, which will add to the AMC buy-side demand.
We recommend accumulating Amcor at current levels.
In the local entertainment sector, Crown faced heavy selling last week following soft earnings numbers. With the stock now trading at $12.00, we believe value is now being presented.
Crown
BXB – A Buy Write Strategy For 10% Cash Flow
We recommend buying BXB at $10.50 or better.
Investors can then look to sell the $11.01 Euro covered call option into March 2019, whilst staying exposed to the 14.5 cent March dividend.
Brambles
Wesfarmers – Value Now Emerging
Our Algo Engine generated a buy signal in Wesfarmers following the price retracement from $51 back down to $46.
This “higher low” pattern is referenced to the intraday low of $43.70 posted on May 10th.
WES has been on our watch list with a target entry range of $45 – $46.
We now recommend accumulating the stock, with a view towards selling covered call options to enhance yield.
Wesfarmers
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453