BHP’s Rally Won’t Be Derailed

Posted on | by Todd

Shares of BHP have slid lower in early trade as the mining giant has suspended all iron ore operations in WA after a runaway train with 268 wagons had to be derailed.

We don’t see this as an impediment to the pace of exports out of Port Hedland or the $14 billion share buy back and special dividend program.

BHP has been on an ALGO buy signal since September 11th at $31.20.

We see good technical support in the $32.85 area and initial resistance just under $35.00.

BHP

Buy Crown Resorts

Posted on | by Leon Hinde

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

Posted on | by Leon Hinde

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

Posted on | by Leon Hinde

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

Crown Resorts – Looking Extremely Oversold

Posted on | by Leon Hinde

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.

Amcor – Shorts Will Need To Cover

Posted on | by Leon Hinde

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