ALGO UPDATE: A New Buy Signal In WFD

Posted on | by Todd | Leave a Comment on ALGO UPDATE: A New Buy Signal In WFD

Shares of WFD are firming today after yesterday’s earnings report failed to inspire any material buying interest.

The company posted a 13.5 % rise in annual profit to US$1.55 billion, shrugging off tough retail conditions and competition from online platforms like Amazon.

Revenue for the year to December 31st rose 17.1% to US$2.1 billion.

Some reports have noted that the lack of specific earnings guidance in yesterday’s announcement has somewhat tempered fresh buying interest.

WFD was added to our Top 20 model portfolio on February 7th at $8.89 and our ALGO engine triggered a buy signal for WFD on February 13th at $8.55.

From a technical perspective, there is a momentum switch-point at $8.75, a break of this price level suggest an extension back into the $9.00 handle.

Westfields

 

 

 

 

 

Inghams Group reports  1H18 Earnings

Posted on | by Leon Hinde | Leave a Comment on Inghams Group reports  1H18 Earnings

Inghams Group reported  1H18 NPAT of $65 million versus $51 million the same time last year, whilst revenue of $1.2 billon was down 1.7%.

The company announced an interim dividend of $0.095

FY19 EPS growth is forecast to increase by 5.5% and DPS will increase slightly to $0.20, placing the stock on a forward yield of 5.6%.

After buying ING at lower levels, we’ve locked-in profit as we don’t consider the stock a core portfolio holding.

Inghams Group

 

QANTAS Gets A Domestic Tailwind

Posted on | by Todd | Leave a Comment on QANTAS Gets A Domestic Tailwind

Shares of QAN soared over 9% higher in early trade, reaching a 3-month high of $5.78, as the airline reported a record $976 million profit for the December half.

The  company also announced a $500 million share buyback scheme.

Earnings from the domestic operations grew by over 20%, which offset the 5.5% fall in international flights due to higher fuel costs.

We posted a report on Tuesday suggesting QAN was a buying opportunity at $5.25 in front of today’s earnings report.

We see technical resistance at the $5.81 level and suggest taking profits and looking for a lower level to buy back in front of the March 7th dividend.

QANTAS

ALGO UPDATE: Woodside Is In The Buy Zone

Posted on | by Todd | Leave a Comment on ALGO UPDATE: Woodside Is In The Buy Zone

With the company announcing a rights issue last week and going ex-dividend for 62 cents today, shares in WPL have been very active.

Our ALGO engine triggered a buy signal on Monday at $28.63.

This signal has a technical basis on the “higher low” structure relative to the $28.20 low posted in September and the $22.90 low from November 2016.

From a fundemental perspective, we believe the company’s decision to raise money to secure a bigger stake in the Scarborough gas field ensures steady earnings growth during 2018 and beyond.

We expect to see investor support for WPL in the $28.50 area and a move back into the $31.00 handle over the medium-term.

Woodside

 

 

CCL Has Reached The Sell Zone

Posted on | by Todd | Leave a Comment on CCL Has Reached The Sell Zone

Shares of CCL are up 3% in early trade as the company announced an 80% increase in net annual profit to $445.2 million.

Despite the underlying EBIT falling .7%, the share price has reached a 7-month high of $9.07.

In a blog post last Wednsday, we highlighted the bullish technical structure and that a break of the $8.45 level could point to an extention above $9.00.

Internal momentum indicators are now overbought and we suggest exiting long positions and looking to enter again at a lower level.

The company announced a dividend of 26 cents (70% franked) and goes ex-dividend on February 27th.

The first area of technical support for CCL will be at, or around, the $8.65 level.

Coca-Cola Amatil

 

BHP Bumps Dividend As Earnings Slip

Posted on | by Leon Hinde | Leave a Comment on BHP Bumps Dividend As Earnings Slip

BHP’s 1H FY18 earnings result was below market expectations.

Despite the cost pressures, BHP has stepped up cash returns to shareholders, with the US$0.55 interim dividend a positive surprise in the 1H FY18 result.

FY19 revenue and underlying profit is forecast to remain flat, placing the stock on a forward yield of 4.2%.

We own BHP at lower levels and sold the $29.50 March calls for a $0.60 credit to enhance the cash flow. We continue to remain exposed to the March dividend.

BHP

 

 

QANTAS Firms Into H1 Earnings

Posted on | by Todd | Leave a Comment on QANTAS Firms Into H1 Earnings

Since trading as low as $5.00 last week, shares of QAN have gained some altitude to reach $5.37 in early trade today.

The airline is scheduled to release H1 results on Thursday with the preliminary numbers showing a NPAT of $690.4 million and a DPS of 12.5 cents.

From a technical prespective, the internal momentum indicators look positive and the next key resistance level is near the December high of $5.81.

QAN was added to our Model portfolio on July 24th at $5.25, and we prefer the long side from these lelvels.

QANTAS

 

Tabcorp – Value Opportunity

Posted on | by Leon Hinde | Leave a Comment on Tabcorp – Value Opportunity

The recent drop in Tabcorp shares provides a low risk entry level where future earnings are underpinned by the $110 million synergy cost savings after the Tatts merger.

The FY19 revenue is forecast to be $5.4billion, EBIT $850 milion, EPS, $0.28 and DPS $0.23, placing the stock on a forward yield of 4.9%, (fully franked).

Our ALGO engine triggered a buy signal in TAH on February 13th at $4.47.

TAH shares have reached a high of $4.74 in early trade and we see the next resistance level near $4.90

TabCorp