ALGO Sell Signal On GPT……3 Yield Names Go Ex-Div On Thursday

Posted on | by Todd

Our ALGO engine triggered a sell signal on GPT on June 21st at $5.36.

This “lower high” pattern is referenced to the high of $5.49 posted earlier this year on January 5th.

It’s worth noting that two other yield sensitive names, TCL and SYD also triggered ALGO sell signals last week. Furthermore, all three of these stocks will go ex-dividend on Thursday, June 28th.

As illustrated in the charts below, all three of these stocks have been in an uptrend since March.  We expect this pull back into their dividend should allow for better entry points for medium-term investors.

We see initial support for GPT at $4.70, with a stronger chart point at $4.50.

GPT

Transurban

Sydney Airport

Suncorp Is Entering The Sell Zone

Posted on | by Todd

Since posting a low of $13.30 on June 1st, shares of SUN have rallied over 11% and reached a 1-year high of $14.80 on Friday.

The selling pressure from the May 25th ACCC report on insurance rates seems to have subsided for now. However,  the scaling back of margins and other industry headwinds are still in play.

Technically, internal momentum indicators show that the share price is in overbought territory and a short-term correction is likely.

We see strong resistance in the $15.00 area and initial support just above $13.80.

Investors can trade the short side of SUN on our SAXO Go CFD platform. For more information about trading opportunities with CFDs, call our office at 1-300-614-002

Suncorp

 

ALGO Sell Signal For BOQ

Posted on | by Todd

Our ALGO engine triggered a sell signal for BOQ into yesterday’s ASX close at $10.50.

The “lower high” chart pattern is referenced to the $10.80 high posted on April 17th.

Recent chart rotation points to a medium-term low at or near $9.40. Investors looking to short BOQ can use our SAXO Go trading platform.

For more information on trading CFD products, call our office at 1-300-614-002

Bank of Queensland

Crude Oil Firms In Front Of Tonight’s OPEC Vote

Posted on | by Todd

Prices of all grades of Crude Oil pushed higher overnight as OPEC members prepare to vote on future production levels today in Vienna.

Reports from the meeting have shown no clear consensus from the cartel with the Saudi’s proposing an increase of 1 million bpd, Qatar suggesting 500,000 and Iran rejecting any increase in the daily quota.

Market reports suggest a 500,000 increase is the likely outcome, which would be moderately bearish for crude prices. The result of the vote is expected by 10:00pm, Sydney time.

Both OSH and WPL have been trading near the top-end of their recent ranges and will likely be driven by OPEC’s decision next week.

Oil Search

Woodside Petroleum

 

Amcor – ASX 20 index

Posted on | by Leon Hinde

Amcor was added to the ASX 20 index this week, replacing AMP.

As an analysis of AMC, we  feel the current share price is trading in line with fair value, based upon FY19 EPS.  Assuming growth of around 6%, places the stock on a forward yield of 4.6%

With Amcor being a beneficiary of a weaker AUD, (95% of sales outside Australia), we see limited downside risks and recommend accumulating the stock.

Amcor goes ex-div $0.30 on the 4th of September.

ALGO Update: Remain Overweight TAH

Posted on | by Todd

Despite the announcement that both WA and VIC will raise race field fees, the share price of TAH continues to build upside support from the $4.50 area.

Several broker notes have suggested that even though the increased fees could lower net profits by close to $5 million, the consensus price target remains in the $5.20 to $5.50 range.

Our ALGO engine triggered a buy signal on TAH at $4.22 on April 4th and the stock was included in our Top 100 Portfolio in early February.

TAH will pay a 12.5 cent dividend on August 11th and we suggest accumulating shares at these levels.

Tabcorp

 

Increased Funding Costs Limit Upside For Local Banks

Posted on | by Todd

The domestic banks have rebounded significantly over the last two weeks with ANZ and CBA both rising over 10% from their lows in early June.

However, this optimism may be short lived as some of the world’s most “Systemically Important Financial Institutions” (SIFI Index) have been trading sharply lower over the last three months.

This banking index includes JP Morgan, Barclay’s and Commerzbank; banks that provide funding to domestic banks in Australia.

Aussie banks are heavily depended on USD-funding from these banks (and others) and will likely feel the pinch on earnings as US rates trend higher and USD liquidity becomes more expensive.

We have been cautious of the local banks and suggest investors look to use this recent rally to off-load long exposure in the banking sector.

SIFI Index

CBA

ANZ

CIMIC – Half Year Profit Announcement

Posted on | by Leon Hinde

Our Algo Engine triggered a buy signal in CIMIC at $40.62. We suggest accumulating the stock within the $4.1.50 to $42.50 range.

CIMIC went ex-dividend $0.75 on the 13th of June.

The next share price catalyst will be the half year profit results due to be announced on the 2nd of July. The market is looking for NPAT to be around $350 million.

CIMIC