Amcor – Deep Value Below $13.50

Posted on | by Leon Hinde

Amcor looks oversold and we expect to see a rally back to $14.00 over the next 8 weeks.

Amcor announced a proposal to acquire Bemis in August, when the deal was valued at about $9 billion.

Bemis operates 56 packaging plants in 12 countries but most of its operations are in the USA; Amcor operates 195 packaging plants in 43 countries.

Amcor will shift its main share-market listing to the New York Stock Exchange in the all-scrip buyout, which would make it the world’s largest plastic packaging group.

It will ditch the ASX as its primary home, but still intends to give Australian shareholders exposure through Chess Depository Interests on the ASX.

We expect hedge funds to begin unwinding their short AMC long Bemis position which will create added buy-side demand into the market for AMC shares.

Amcor

 

Looking For More Upside in DOW & CIM

Posted on | by Leon Hinde

We recommend buying both Downer EDI & CIMIC Group at current levels.

Both of these infrastructure names have pulled back materially from their June highs without any negative changes to their growth prospects.

From a technical perspective, we see medium-term upside targets of $7.50 and $51.50, respectfully.

 

MPL: Good Support At $2.60

Posted on | by Leon Hinde

We recommend buying Medibank Private at current levels.

Since trading down to $2.62 on Monday, the stock has risen 6% and reached $2.79 in early trade today.

The internal momentum indicators are now pointing to resistance near $3.10.

Medibank Private

ALGO Buy Signal In South 32

Posted on | by Todd

Our ALGO engine triggered a buy signal for S32 last Friday at $3.51.

This “higher low” patterned is referenced to the intraday low of $3.35 posted on September 5th.

After a solid quarterly report two weeks ago, the share price spiked to a new all-time high of $4.28.

Since then, the share price has dropped over 17%, which is what triggered the ALGO signal last week.

S32 is a diversified miner and exports a range of minerals from Alumina to Manganese.

As such, we believe that S32 shares will find investor support above $3.00 for another run at the $4.00 handle over the medium-term.

S32

 

 

 

CSR: Looking For Earnings Results On Friday

Posted on | by Leon Hinde

CSR reports its 1HFY19 earnings on Friday and the market is looking for EBIT of $170 – $180 million for the 6 month period.

Boral, James Hardie and CSR have all been under pressure from short sellers and we are expecting to see some reversal of this trade.

The building stocks, in general, are looking oversold.

CSR

Ramsay Healthcare Continues To Slip Lower

Posted on | by Leon Hinde

Ramsay Healthcare remains in a Algo Engine “sell” condition, however, after the share price correction from $85 to $52, we now see value beginning to emerge.

Shareholders in Swedish hospitals group Capio have given the approval to RHC’s 51% owned French subsidiary A$1.3bn takeover offer, to proceed.

With all conditions now satisfied, the deal’s expected settlement will be early next month.

Watch for RHC to turn positive and generate an Algo Engine buy signal in the coming months.

RHC

IAG – Finding Support At Current Levels

Posted on | by Leon Hinde

Our Algo Engine triggered a buy signal for IAG at $6.95.

This “higher low” pattern is referenced to the $6.56 low posted last October.

The stock is a current holding in our ASX 50 and ASX100 model portfolios.

With the share price trading sub $7.00 we consider value is now on offer.

IAG recently announced it had sold its operations in Thailand, Indonesia and Vietnam. Following this, the company indicated they would return $592 million of capital to shareholders.

In FY19, IAG will pay $0.195 capital return and a $0.055 special dividend.

 

 

SHL Is Nearing Key Support

Posted on | by Leon Hinde

Sonic Healthcare is looking oversold and we believe buying support will build within the $21.50 – $22.50 price range.

SHL has a large percentage of their diagnostic equipment revenue based in US Dollars. As such, the company  will benefit from the lower Aussie Dollar.

CSL: Still A Blue Chip Stock

Posted on | by Leon Hinde

CSL is one of the best performing stocks within the ASX20, ASX50 and ASX100 model portfolios.

Since being added in May 2015 the share price is up 113% including dividends.

The recent retracement in the share price provides another opportunity for investors to add CSL to their portfolios.

CSL

 

Resmed Reports 1Q19 Growth Over 28%

Posted on | by Leon Hinde

RMD has rallied from $13.75 to $14.75 following last weeks reported strong 1Q19 result, which included EBIT +28% on the same time last year.

The company also delivered robust top-line growth, which came in ahead of market expectations. Gross margins held at 58+%.

We anticipate EPS growing from US$3.70 in FY19 to US$4.50 in FY21 and revenue growing from US$2.9 billion to US$3.5 billion over the same period.

 

Resmed