S&P/ASX 200 finished the week down 0.47%

Posted on | by Leon Hinde | Leave a Comment on S&P/ASX 200 finished the week down 0.47%

The S&P/ASX 200 Index finished the week down 0.47%. 

The best performer was the Health Care sector, up 2.4% and the the worst performer was the Telecoms sector, down 10.1%. 

Telstra Corporation down 11.6% and Vocus Group Ltd down 10.9%.

The XJO index is running into resistance at the prior high of 6150, (reached in January). With resources and the banking sector looking fully valued and the industrial sector trading on stretched price to earnings ratio, we see little upside potential for the index.

Investors should be looking at using a derivative overlay to enhance the income from their existing portfolios.

 

 

 

 

 

 

 

 

ALGO Sell Signal For Woodside Petroleum

Posted on | by Todd | Leave a Comment on ALGO Sell Signal For Woodside Petroleum

Our ALGO engine triggered a sell signal for Woodside Petroleum into yesterday’s close at $34.31.

This “lower high” formation corresponds to the $34.98 high posted on January 15th.

WPL announced a rights issue in early February to raise $2.5 billion for further acquisitions, including the Scarborough gas field in WA. This capital raising pushed the share price to a 10-month low of $28.60.

Since then, the stock price has mirrored the recent rally in global crude oil prices and has gained close to 20% as of yesterday’s close.

However, at  current production rates, WPL only has between 12 to 15 years of oil reserves left in its portfolio.

As such, the $2.5 billion dollars it raised for acquisitions looks necessary and it’s likely that without continually spending to acquire additional reserves, the company will not be able to sustain its current level of output.

We see the first key level of support near $32.60 with a further downside target around $31.10.

Woodside Petroleum

 

CCL Loses Its Fizz After Yesterday’s AGM

Posted on | by Todd | Leave a Comment on CCL Loses Its Fizz After Yesterday’s AGM

Shares of CCL are down 4% to $8.60 in early trade as yesterday’s AGM offered little definitive forward guidance about growth and earnings.

Investors were looking for an update on operational margins not only in Australia but in the ventures in PNG, ANZ and Indonesia.

There was no change to the planned 21 cent dividend for August 28th, and we see initial support for CCL in the $8.50 area.

Coca Cola

 

 

Buy Medibank & sell covered call options

Posted on | by Leon Hinde | Leave a Comment on Buy Medibank & sell covered call options

Our Algo Engine recently generated a buy signal in Medibank at $2.80.

With the stock now making a further “higher low” formation at $3.00, we recommend buying MPL and selling December call options to enhance the yield.

December $3.20 call options are generating an additional $0.08 in premium.

Medibank goes ex-div $0.0675 on the 6th September

Medibank Private

 

A2M Drops 15% on Weaker Full-Year Guidance

Posted on | by Todd | Leave a Comment on A2M Drops 15% on Weaker Full-Year Guidance

Shares of A2 milk have opened over 15% lower to $9.80 after reporting lower guidance in their trading update and full year outlook.

The company reported that they expected total revenue near the NZ 920 million mark. This materially below the NZ 950 million the company was shooting for earlier this year.

Technically, we see scope for A2M shares to fill the price gap from February and find support near $9.00.

A2 Milk