ALGO Buy Signal For Flight Centre

Posted on | by Todd

Our ALGO engine triggered a buy signal for Flight Centre into Friday’s ASX close at $55.40.

This “higher low” formation is referenced to the intra-day low of $54.20 posted on April 24th.

Despite reporting a full-year profit of $384 million on August 20th, the share price has dropped over 20% during the last three weeks.

FLT has one of the strongest balance sheets on the local market with just $35.5 million in debt translating into a respectable $517.5 million net cash position.

As such, we believe the share price has reached oversold territory and will likely find solid investor support near the $54.80 level.

Flight Centre

ALGO Buy Signal For Aristocrat

Posted on | by Todd

Our ALGO engine triggered a buy signal for Aristocrat Leisure yesterday at $28.90.

As illustrated on the chart below, this ‘higher low” pattern is referenced to the May 23rd low at $27.58.

Although a recent earnings update stated that ALL’s digital revenue may not be increasing as fast as expected, revenue from older games continues to accelerate.

The company has forecast earnings of $1.40 per share for FY 2019, which fixes its current price at 20X forward earnings.

Internal momentum indicators have turned positive and we expect a move into the $32.00 area over a 6 to 8 month time horizon.

Aristocrat Leisure

 

ALGO Buy Signal For Santa Barbara Limited

Posted on | by Todd

Our ALGO engine triggered a buy signal for SBM into yesterday’s ASX close at $3.62.

This “higher low” pattern is referenced to the intra-day low price of $3.27 posted December 13th.

In the company’s last report, SBM stated that production costs for Gold were revised to a record low of $907 per ounce, down 3 per cent compared to 2017.

This allowed the gold miner to achieve a record cash flow from operating activities of $303 million for FY 2018.

As such, SBM was able to repay all its debt and the company had almost $200 million cash in the bank after paying its first dividend since 1995.

Overnight losses in spot Gold may pressure the share price back to initial support at $3.50. We have a medium-term upside target in the $4.80 to $5.00 area.

Santa Barbara Limited

ALGO Buy Signal For Suncorp

Posted on | by Todd

Our ALGO engine triggered a buy signal for SUN into yesterday’s ASX close at $14.32.

This “higher low” pattern is referenced to the low of $13.27 posted on January 6th.

As illustrated on the chart below, we still see scope for SUN to probe lower on fundamental headwinds impacting both the banking and insurance sectors.

As such, we will look for the stock to trade lower, into the $13.00 handle, before committing funds to the long side.

Suncorp

ALGO Update: Stay Long Newcrest Mining

Posted on | by Todd

Since dropping to a 10-month low last week at $18.75, shares of  Newcrest have lifted over 4% as the price of gold has stabilized.

It’s worth noting that NCM posted a 2% increase in revenue and a 16% rise in underlying profit in their FY18 results last month.

NCM is still under an ALGO buy signal and was added to our ASX Top 100 portfolio on July 19th at $20.05.

We still prefer the long side of NCM and see initial resistance in the $22.35 area over the medium-term.

Newcrest

 

 

Gold Finds Technical Support As Fundamental Risks Increase

Posted on | by Leon Hinde

After reaching a high of $1370.00 in mid-April, the price of gold dropped over $200.00 and traded as low as $1160.00 on August 16th.

By many technical measures, the 4-month correction in the yellow metal looks to have run its course.

Increased trade tensions, EM currency weakness and Geo-political risks are all fundamental elements which support higher prices for Gold.

The next point of resistance is near $1214.00, with solid support at $1185.00

Our preference within the gold miners is NCM, followed by EVN.

 

MPL Is Back In The Buy Zone

Posted on | by Leon Hinde

Since posting a high of $3.30 on August 20th, shares of MPL have dropped over 12% and posted a low of $2.87 in early trade today.

Internal momentum indicators are now reflecting and oversold condition on the daily charts.

We recommend accumulating MPL in the 2.75 – $2.90 range.

MediBank Private