Buy Signals – Now Trading on Support

Posted on | by Leon Hinde | Leave a Comment on Buy Signals – Now Trading on Support

The following group of stocks offer above average earnings growth, structural uptrends and are currently trading back on support levels that warrant closer attention.

ASX, AMC, BXB, JHX RHC, SEK, SHL, SUN and TWE.

asx
Chart – ASX
Chart - AMC
Chart – AMC
bxb
Chart – BXB
jhx
Chart – JHX
sek
Chart – SEK
Chart - SHL
Chart – SHL
Chart - SUN
Chart – SUN
Chart - TWE
Chart – TWE

More detail on the Investor Signals portfolio allocations and derivative overlay strategy will be provided in the October ASX top 50 Video Market Report.

 

Recent Buy Ideas Revisited

Posted on | by Leon Hinde | Leave a Comment on Recent Buy Ideas Revisited

Sonic Healthcare (SHL.ASX)

shl

Amcor (AMC.ASX)

amc

James Hardie (JHX.ASX)

jhx

Lend Lease (LLC.ASX)

llc

Newcrest (NCM.ASX)

ncm

Resmed (RMD.ASX)

rmd

For more analysis on our recent buy recommendations and market stratagey, please keep an eye out for tomorrow’s mid-week market update video report. It will be sent out tomorrow morning as a blog post.

 

 

 

 

Take Profit on Boral and Buy James Hardie

Posted on | by Leon Hinde | Leave a Comment on Take Profit on Boral and Buy James Hardie

In today’s post we look at stocks recently commented on that require further attention, as profit taking is in sight or the entry level setups are now looking compelling.

NVT.ASX – Lift trailing stop loss to $5.25 support and retain profit target at $5.40

nvt

BLD.ASX – We had a buy recommendation on this at $6.20 and it has now rallied 10%+ to $6.85. Take profit on BLD and switch to JHX.

bld

AMC.ASX – We see value in AMC at $15 only when complemented with a covered call strategy. Target is 7% capital growth, plus 2% from Feb div and 3% option premium. We have a six month time horizon on this trade.

amc

ASX.ASX – Looks better value following the recent pullback and our algorithm engines are flagging a buy point.

asx

The above charts summarise a few opportunities we’re watching. For further detail on our investment ideas, visit the monthly strategy piece or the recent mid week update.

If you have trouble locating the links to either of the above recordings, please email me.

leon@investorsignals.com

 

 

 

 

 

 

Amcor – adding growth

Posted on | by Leon Hinde | Leave a Comment on Amcor – adding growth

Amcor (AMC.ASX) acquired Sonoco’s North American rigid plastics operation for $280m. The acquisition will be EPS accretive by 2 – 3%.  Amcor management expects to save $20m+ in synergy benefits.

FY17 Amcor should generate revenue of USD$9.7b, EBIT USD$1.1b, EPS growth of 8% and DPS of USD$0.44, placing the stock on a forward yield of 3.8%

We like AMC and see this as a suitable buy-write candidate for client portfolios. The stock trades ex-dividend tomorrow AUD$0.29.

Buy today and sell $17.00 calls into January.

AMC

 

Amcor FY16 Earnings Result

Posted on | by Leon Hinde | Leave a Comment on Amcor FY16 Earnings Result

Amcor (AMC.ASX) NPAT US$670m, EPS of $0.57 and final dividend of $0.22 CPS was inline with consensus. The numbers reflect a flat result on the same time last year, however, FY17 should see a return to underlying growth in the range of 5 – 7%.

FY17 revenue forecast of US$10b on EBIT of US$1.1b. EPS US$0.60 & DPS of US$0.55 placing AMC on a forward yield of 3.8%

We continue to see this as a buy on the dip story. Where we own AMC in the model from lower levels, we’ve been selling call options to enhance the yield.

AMC

 

 

News on AMC.ASX

Posted on | by Leon Hinde | Leave a Comment on News on AMC.ASX

News on AMC.ASX

Packaging giant Amcor will take a hit of between $US170 million and $US200 million ($A227.49 million-$A267.63 million) in pre-tax profits over the 2017 and 2018 financial years, after announcing several measures to streamline its flexibles business.

Keep this one on your radar. It’s likely that a buy signal will occur  following the aggressive sell-side  response to the earnings news. This is a market darling and leveraged investors will be getting squeezed. An oversold condition will soon emerge and we expect to see a signal within the $14.25 to $15.00 range.