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
Our Algo Engine has flagged the “lower high” formation in Bendigo Bank and with the stock facing earnings headwinds, we feel this an appropriate short trade to consider
Sell within the $11.00 – $11 .30 range.
Bendigo
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
Amcor provides a defensive income opportunity through buying the stock and selling a $14.26 (Euro) Dec call option.
The option generates an additional $0.42 of income, whilst remaining exposed to the $0.30 September dividend.
AMC
We continue to prefer the long side of Crown Resorts and view the stock as a suitable “buy-write” strategy for client portfolios.
$14.01 (Euro) Dec call options generate an additional $0.50 of income per share.
Crown Goes ex-dividend $0.30 on the 21st September.
Crown Resorts
BlueScope has upgraded 2H EBIT guidance to US$680m, this leads to consensus FY18 EBIT of US$1.2bn.
The upgrade driving higher profitability is due to stronger steel spreads in the US.
Bluescope was added to the ASX 100 model on the 6th February and is currently up 26%. 
We consider Caltex a buy at $31 and recommend selling covered call options to enhance the income.
Caltex goes ex-div $0.60 on the 11th of September.
Our Algo Engine generated a buy signal in Tabcorp at $4.20 and we expect to see the share price trading in the $5.00+ range, following the August earnings result.
We’ve been holding Crown Resorts following the recent Algo buy signal at $12.41, back in February.
Crown has a renewed focus on cost control and the supportive back drop of a lower Australian dollar, as well as, increased inbound tourism should lead to the August earnings result surprising on the upside.
Crown goes ex-div $0.30 on the 21st September.
It’s been about 3-weeks since QAN released its Q3 update, which showed a 7.5% increase in revenue versus the previous quarter and an increase in capacity.
Since then, the share price has reached a 10-month high of $6.45 before slipping lower on the recent spike higher in crude oil/ fuel prices.
QAN was added to our Top 50 model portfolio last July at $5.24. We suggest looking for a pullback into the $6.00 area to add to long positions.
QANTAS
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453