NAB Reports Lower Half-Yearly Profits

Posted on | by Todd | Leave a Comment on NAB Reports Lower Half-Yearly Profits

Shares of NAB are down over 1.5% in early trade as the bank reported a 16% drop in half-year cash profit as it booked a restructuring-linked costs related to workforce reduction.

The bank posted cash earnings, that excludes one-offs and non-cash accounting items, of $2.76 billion for the six months ended March 31, compared with $3.29 billion last year.

NAB bank maintained its interim dividend at 99 cents per share, which puts it on 13.2 times earnings.

Our ALGO engine triggered a sell signal for NAB on February 27th at $30.40.

The technical picture is fairly neutral, and with NAB going ex-dividend on May 16th, we see initial support in the $28.50 area.

NAB

 

Medibank + 10 to 12% cash flow

Posted on | by Leon Hinde | Leave a Comment on Medibank + 10 to 12% cash flow

We’ve been recent buyers of Medibank following the Algo Engine buy signal at $2.80.

With the stock now trading over $3.00 we recommend investors look to add a covered call option into December at the $3.10 strike price.

The addition of the option premium combined with the September dividend is generating an annualized cash-flow of almost 12%. The strategy also allows for 10% capital growth, should the call option get exercised at expiry.

Medibank goes ex-div $0.30 on the 21st of September.

 

FMG Continues To Look Attractive

Posted on | by Todd | Leave a Comment on FMG Continues To Look Attractive

Shares of FMG have posted as 6-week high at $4.75 as the Iron Ore miner reaffirmed FY18 shipments of 170 million metric tons.

It’s worth noting the Q4 is typically FMG’s strongest quarter for shipments.

This should continue this year as the company broadens its customer base to include low-grade ore users like India.

We still prefer the long side of FMG and have a medium-term price target of $5.35.

Fortescue Metals Group

Suncorp Near Resistance At $14.20

Posted on | by Todd | Leave a Comment on Suncorp Near Resistance At $14.20

Recent research on SUN has outlined a number of earnings hurdles the company will face for the rest of 2108 and into next year.

The hurdles include a higher trajectory of operating costs, findings of the royal commission on the insurance industry and lower Gross Written Premium growth.

All of these combined will likely lead to a lower underlying profit margin outlook.

Technically, our ALGO engine triggered a sell signal last November at $14.20 and we see price resistance in this area.

Our initial downside target is $13.35, followed by $12.90 over the medium-term.

Suncorp

ANZ Gets A Lift From H1 Results

Posted on | by Todd | Leave a Comment on ANZ Gets A Lift From H1 Results

ANZ posted a 4.1% rise in its half-year cash profit to $3.49 billion, boosted in part by a fall in its credit-impairment charge following the sale of a range of assets.

The bank held its H1 dividend unchanged at 80 cents per share as its impairment charges fell to $408 million from $720 million a year ago.

However, ANZ warned last week of a $620 million loss from the previously announced sale of a pensions and life insurance unit, as well as, a further $80 million in restructuring charges, some of which are related to the banking royal commission legal fees.

The technical picture for ANZ remains soft with daily chart resistance seen in the $27.40 area. 

ANZ

 

Short Orica

Posted on | by Leon Hinde | Leave a Comment on Short Orica

We recommend the short side of Orica heading into 2H18 earnings announcement on 7th May.

The market is looking for significantly stronger 2H performance and is likely to be disappointed. Orica is trading on stretched valuations and offers a 2.6% forward yield.

Look to sell within the range displayed below.

Orica

 

 

IPL Reports 1H18 – Take Profits Now

Posted on | by Leon Hinde | Leave a Comment on IPL Reports 1H18 – Take Profits Now

IPL reports 1H18 earnings  on 9 May.

A key focus in the upcoming result will be the production performance at key locations & progress on formalising the Central Petroleum interim
gas agreement for Gibson Island and gas discovery JV.

IPL was added to our ASX50 model portfolio in May 2017.

Commodities are going through a topping pattern, or at least building resistance at the current level, we encourage investors to take profit in IPL.

2019 EPS $0.23, DPS $0.12 places IPL on a forward yield of 3%.

IPL

 

 

Buy Tabcorp

Posted on | by Leon Hinde | Leave a Comment on Buy Tabcorp

Following the recent Algo Engine buy signal, we view the “higher low” technical setup in Tabcorp as a bullish pattern.

From a fundamental earnings perspective, we also see the stock price strengthening into the August earnings result.   We expect to the stock price supported by post merger cost savings and moderate organic growth.

Tabcorp

GPT Rallies Into Wednesday’s AGM

Posted on | by Todd | Leave a Comment on GPT Rallies Into Wednesday’s AGM

Shares of GPT are up 1.5% in early trade in front of its AGM scheduled for Wednesday.

In the March quarter, GPT reported total shopping center comparable MAT growth of 2.1%, with 34,100 sqm of leasing space signed in the quarter and the acquisition of Sunshine Business Park in Melbourne for $74 million, with an initial yield of 6.1%.

The share price has hit $4.80 so far this morning and will see further resistance in the $5.00 area.

We consider GPT a solid “Buy/Write” strategy at current levels as the sold call option premium will enhance portfolio cash flow.

GPT will pay a 12.3 cent dividend on June 29th, which places its annual yield around 5.00%.

General Property Trust