CIMIC Shares Soar After Positive Results

Posted on | by Todd

Shares of CIMIC Group have spiked over 10% higher to reach a 5-month high of $47.50 in early trade.

The company’s H1 2018 results showed an increase of FY 18/19 earnings in the 3% range and a 10% increase in revenue growth specifically in their construction business.

Our ALGO engine triggered a buy signal in CIM at $41.15 on March 9th and the stock was added to our ASX Top 100 portfolio on June 27th at $35.00.

We see the next resistance level in the $48.75 range. CIM goes ex-dividend for 70 cents on September 12th.

Cimic Group

ALGO Update: BHP Continues To Firm Into The $35.00 Area

Posted on | by Todd

Our ALGO engine triggered a buy signal for BHP on March 9th at $28.32.

A recent broker note focused on the mining giant’s increased production of Iron Ore, Coal and Crude Oil as the basis for upgrading their 12-month price target to $37.00.

As mentioned in a previous Blog, we believe these upgrades will also lead to an increase of their dividend to the $1.40 range.

With a potential “double top” resistance in the $35.50 area, we would consider a buy/write strategy at these levels.

BHP goes ex-dividend for 60 cents on September 7th.

BHP

 

 

RIO Tinto Firms On Solid Output

Posted on | by Todd

Shares of RIO are 1% higher at $79.90 in early trade as a recent broker note has reaffirmed their “outperform” rating and set a 12-month target of $94.00.

The report mentions that Iron Ore shipments of 88 metric tons were at the top end of 2018 calendar year guidance.

In addition, shipments of copper and bauxite were also slightly ahead of 2018 guidance.

The company is scheduled to announce their  2018 earnings on August 1st. The forecast numbers are NPAT of $4.6 billion and DPS of $1.36.

RIO was added to our ASX Top 20 portfolio in March of 2017.

RIO Tinto

 

 

ALGO Buy Signal In Evolution Mining

Posted on | by Todd

Our ALGO engine triggered a buy signal on Evolution mining into yesterday’s ASX close at $3.13.

The “higher low” price pattern is referenced to the intra-day low posted at $3.07 on May 21st.

In general, the junior mining stocks have been performing well even as the price of spot gold has traded lower. We expect a turnaround in the spot price would give the mining stocks a lift.

EVN has now been added to our ASX Top 100 Model portfolio. We see good chart support at $3.00 and initial resistance near the $3.60 area.

Evolution Mining

ALGO Buy Signal For Charter Hall

Posted on | by Todd

Our ALGO engine triggered a buy signal on Charter Hall into the ASX close at $4.21.

This “higher low” chart pattern is referenced to the low of $4.06 posted on May 21st.

CLW is an Australian REIT, and a the current price is on a 6.5% dividend yield.

We see strong price support in the $4.00 area and initial resistance near $4.45.

Charter Hall

FMG Is A Buy Write Strategy

Posted on | by Leon Hinde

FMG is oversold relative to BHP and RIO.

Strong production numbers and improving low grade ore pricing discounts should flow through to better near-term share price performance.

We recommend adding a covered call option to enhance the cash flow.

The graph below displays the increase in Ore shipment from the Port Hedland port in WA.

FMG

 

Ramsay Shares Slide After Failed Takeover Bid

Posted on | by Todd

Shares of Ramsay Heath care are down over 2% to $53.30 in early trade.

Last Friday, the private hospital group announced an unsolicited offer for almost a $1 billion to take over Capio AB, a European healthcare company.

Over the weekend, the Capio board unanimously rejected the deal.

Over the last 2 months, the RHC share price has dropped over 16%. Most of this negative sentiment is based on the company’s admission that earnings growth will contract from 8% to 5% over the next year.

At current prices, we see RHC on a 2.9% dividend yield. As such, we consider the stock near fair value and would look to acquire it at lower levels.

Ramsay Health Care

RIO – Likely To Boost Share Buyback Scheme

Posted on | by Leon Hinde

Our Algo engine generated a buy signal recently in RIO at $80.00 and the stock remains in our ASX50 model portfolio.

In the next 12 months, RIO will generate over $10 billion in free cash flow on top of the $7 billion+ from asset disposals. We anticipate the excess funds will be returned to shareholders though an increased share buyback program.

Of the existing $2.9b buyback, RIO has now completed $1.7b.

FY19 revenue $38b, EBIT $13b supporting a  forward dividend yield of 5.6%.

RIO has their June quarter production numbers out tomorrow.

Rio Tinto

 

 

 

Register for Monday’s Webinar

Posted on | by Leon Hinde

In our next webinar, I will review high conviction ASX buy and sell opportunities from the recent algo engine and model portfolio signals.

Opportunities in Review

  • Host: Leon Hinde, Head of Equity Strategy at Investor Signals
  • Date: 16th of July 2018
  • Time: 11:30am Qld/NSW/Vic time, 9:30am WA time
  • Duration: 45 min

Please use this link to register and we’ll send you the event link and a reminder email one hour before the webinar begins.

If you cannot make the time, then register anyway and we’ll email you a link to watch the replay.