Caresales.com – Technical Bounce

Posted on | by Leon Hinde

CAR is one of the “GARP” (growth at a reasonable price), names that we’ve been tracking.

With the stock bouncing off the $11.00 price level, we suggest running a tight stop-loss below the recent “pivot low” and giving the upside momentum a chance to develop.

Within the back drop of market volatility, it is difficult to know how this trade plays out in the short-term. Therefore, we highlight the need to run a stop loss.

We consider ALL & TWE as similar technical opportunities.

Carsales.com

Buy BHP At Current Levels

Posted on | by Leon Hinde

Our Algo Engine recently  generated a buy signal in BHP  and with the share price retracing back to $32, (following the sell-off in oil), we recommend investors accumulate the stock.

BHP trades on a forward yield of 5.2%, allowing for a 20% lift in FY19 earnings.

BHP

 

 

 

TWE Has Reached Oversold Territory

Posted on | by Todd

Since posting an all-time high close at $19.85 on September 3rd, the share price of TWE has dropped over 30% reaching a 12-month low of $13.40 in early trade today.

This selloff has come despite the fact that the company has maintained their guidance for EBITS growth of 25% going into 2019.

Technically, the momentum indicators have reached an oversold level last seen in January of this year, which preceded a 23% rally over the following 2 months.

Treasury Wine Estates

 

Bluescope – Where Are The Buyers?

Posted on | by Leon Hinde

Bluescope has sold off from $19 (mid-year), to now be trading at $12.10. The stock was expensive and we’re now back in fair value range.

The outlook is uncertain as US and Asian steel spreads contract and lower steel prices negatively impact forward earnings.

Also, leading indicators for the domestic residential construction market are creating investor concerns.

We expect cautious outlook comments from the AGM trading update on Friday, 23 November.

Watch for buying interest to build above the $10.50 support level.

Bluescope

 

Buy Sonic Healthcare

Posted on | by Leon Hinde

In a volatile market, we continue to like Sonic Healthcare and recommend accumulating the stock with a view towards selling covered call options to enhance the income return.

SHL goes ex div $0.32  on the 6th March.  June $23.50 strike call option generates an additional $0.75 per share of income.

 

 

 

ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

EVN has been under an ALGO buy signal since August 1st at $2.85 and is part of our ASX Top 100 Model portfolio.

EVN has a market capitalization of $5.2 billion and operates mines in QLD, NSW and WA.

Combined, these mines produce about 720,000 ounces of Gold per year at an all-in sustained cost of US650 per ounce.

EVN will hold their AGM in Sydney on Thursday. Good news from that meeting could see the share price trade back above the recent high of $3.45.

Evolution Mining

 

 

Keep QANTAS On The Radar

Posted on | by Todd

Our ALGO engine triggered a sell signal on QAN on November 14th at $6.05.

Since then the stock has traded lower and reached $5.45 in early trade today.

From a longer-term perspective, we believe QAN will benefit from from the 30% drop in crude oil since October. Even if energy prices stabilize near current levels, QAN is well-placed for solid profit growth in 2019.

We expect to see investor interest accumulate in the $5.10 area and will look for an ALGO buy signal in that range.

QANTAS

 

 

 

 

Flight Centre: Forming A Technical Base Near $46.00

Posted on | by Todd

Since posting an all-time high of $70.50 on August 20th, shares of FLT have dropped over 30% to the current level of $47.00 in early trade today.

Much of the negative sentiment has been focused on the potential loss of market share from other online booking agencies.

However, recent data shows that the investment that FLT made in its in-house online service is starting to pay dividends.

Over the last several months, online flight and hotel bookings have risen to over 20% from just over 5% earlier in the year.

At current levels, FLT is trading at 16X earnings and a 3.7% yield.

Technically, the stock is forming a “rounded bottom” pattern relative to the November 2nd low at $44.20.

We see the first level of resistance at $52.50 with a longer-term target near $57.15. Flight Centre