Unibail-Rodamco (Europe’s largest listed commercial property company) has entered into an agreement to acquire all the outstanding shares in WFD.
The offer consideration is equivalent to $10 per share and represents +17.8% premium to the last close.
Westfield Corp
BHP & WPL remain in our ASX50 model portfolio. We continue to expect buying support in both names.
IFL has caught our attention again after yesterday’s strong price performance following a number of research houses upgrading the earnings outlook.
The upgrades are supported by aggressive cost savings, post the acquisition of the ANZ advice business.
We’re not convinced IFL is a long-term buy and hold but with the recent upgrades we may see buying momentum create another leg higher in the “higher low” price formation.
We recommend running a stop loss below the recent low.
If we assume FY18 NPAT of $440m, (up 4% on FY17), and $0.12 per share in dividends, Medibank Private is now 20x FY18 earnings on a forward dividend yield of 4.3%.
Medibank continues to drive industry wide reforms, although growth appears limited due to ongoing affordability concerns.
We recommend selling at the money covered call options into June to enhance the yield, whilst keeping exposure to the March dividend.
Our ALGO engine triggered a sell signal in TPM at $6.36 on the ASX close on Friday.
After posting a low of $4.85 on September 28th, shares of TPM have rallied impressively on a series of fiber-optic contracts won from the South Australian state government.
However, the technical chart pattern is still defined by a “lower high” formation which suggests lower prices over the medium-term.
We see the next key support level at $5.90 and suggest exiting long positions at or around $6.40.
TPG Telecom
Aurizon has made a lower high formation and we feel the recent rally from $4.75 to $5.30 will run into selling pressure.
Shares of TWE posted a new all-time high of $16.22 on the ASX close last Friday.
Our ALGO engine triggered a buy signal on TWE back in July at $12.55.
The stock is trading at 40X earnings with the 12 month EPS currently expected at just over 23%.
The internal momentum indicators look good and we would look to take profits on a move into the $16.90 to $17.00 area.
Treasury Wine Estates
The S&P ASX 200 Index finished the week 0.08% higher.
The best performer was the Telecoms sector, up 7.0% (Telstra rising by 7.9%) and the worst performer was the Industrial sector, down 1.3%.
XJO Index
Our Algo Engine generated a buy signal in Lendlease back in October. Since then the stock has moved down to find buying support at $15.50.
LLC is in the ASX 50 model and we expect buying support will soon see the share price recapture $17 in the weeks ahead.
Place a stop-loss order on a break back below $15.50.
Lendlease
Our Algo Engine generated a buy signal in Westpac on the recent “higher low” chart formation.
Place a stop-loss on a break back below $30.50 with an upside target $33.00
Westpac
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