CBA Admits To 53,000 AML Breaches

Posted on | by Todd | Leave a Comment on CBA Admits To 53,000 AML Breaches

In what could be described as the largest plea deal in Australian corporate history, CBA admitted it breached the AUSTRAC money laundering regulations over 53,000 times.

The bank’s lawyers argue that a “computer glitch” was the cause for the breach and they are proposing that AUSTRAC prosecutes all of the 53,000 breaches as one infraction, as opposed to each one separately.

CBA also said it will defend more than 100 more serious allegations regarding failure to disclose suspicious transactions.

Our ALGO engine triggered a sell signal on November 13th at $81.52.

The share price has traded down to $79.55 and is still under a “lower high” chart structure. The combination of negative internal momentum indicators and growing fundamental headwinds keeps our trading bias negative on CBA.

The next significant support area is near the December 7th low of $78.30.

 CBA

 

CTX Jumps Higher On ACCC Ruling

Posted on | by Todd | Leave a Comment on CTX Jumps Higher On ACCC Ruling

Shares of Caltex spiked 5% higher at the open as the ACCC ruled against the proposal for Woolworths to sell its portfolio of 527 service stations to BP; an estimated $1.8 billion deal.

After reaching a high of $35.00, CTX shares have now drifted lower but are still up over 4.0% at $34.80.

The price structure is still under the December 5th high of $35.70, which reflects a “lower high” trading pattern.

Caltex

 

Transurban – Preferred Holding

Posted on | by Leon Hinde | Leave a Comment on Transurban – Preferred Holding

TCL announced a $1.9bn fully underwritten renounceable entitlement offer to
fund WestConnex & West Gate Tunnel Project in Melbourne.

We continue to see high single digit growth in dividends with FY18 guidance at $0.55, placing TCL on a forward yield of 4.8%

TCL & SYD are current holdings in our ASX 50 model portfolio, following the recent Algo Engine buy signals.

 

 

IFL – Buying Support Returns

Posted on | by Leon Hinde | Leave a Comment on IFL – Buying Support Returns

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.

Medibank – Private Valuation Review

Posted on | by Leon Hinde | Leave a Comment on Medibank – Private Valuation Review

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.

 

 

ALGO Sell Signal For TPM

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

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