QBE – Algo Buy Conditions (Update)

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.

IPL – Rallies From $3.25 Support

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.

 

 

Buy Brambles

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.

 

Buy S32

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.

 

Buy WPL, OSH & STO

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.

 

Buy – Downer EDI & CIMIC Group

The below post is from 14th December and a check of the latest charts will show the rally which is now occurring in both names.

Both Downer and CIMIC are current holdings in the ASX  100 model portfolio.

The graphs below show the price action finding recent buying support.

We see a supportive backdrop with increased infrastructure spending, likely to underpin earnings growth in both businesses for the next 3 – 5 years.

NOTE: Today CIMIC Group has announced an on-market buy back of up to 10% of the shares on issue.