Tag: ASX:AMC

Our ALGO engine triggered a sell signal for AMC into the ASX close at $14.60.

The “lower high”pattern is referenced to the $14.76 high posted on February 8th.

Since trading as low as $13.10 on May 4th, the share price has risen close to 12%. At this point, we suggest clients either take profits on open positions or use a covered call strategy.

For those interested in the covered calls, we suggest selling the $14.75 calls into October for 35 cents.

This will allow investors to receive the 30 cent dividend on September 4th while increasing cash flow into the portfolio.

Amcor

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.

Shares of AMC have opened over 1% higher at $13.90 as the stock continues to recover from the May 4th spike low near $13.10.

The technical picture improved last week with internal momentum indicators now pointing higher on the daily price charts.

We see the $13.70 level as good support with an upside target in the $14.40 to $14.50 area.

AMC has been in our ASX Top 50 portfolio since July of last year, and is a good candidate for a Buy/Write strategy into the 30 cent dividend on September 4th. 

Amcor

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 recommend investors buy Amcor and hold the position into the September dividend period.

To add to the return, covered call options should be sold at the $15.00 strike into December.

AMC goes ex div $0.295 on 4th September.

We suggested buying AMC in a blog posting on March 7th at $14.06.

Since the start of the year, AMC has been trading in a pennant formation with support in the $13.70 area and firm resistance at $14.50.

The share price traded to $14.26 today and we are looking at $14.50 as a price inflection point.

A break higher could extend to $14.80, which would offer and opportunity to sell the $15.00 calls into December.

This would allow investors to collect the September dividend of 29.85 cents, as well as 60 to 70 cents in option premium for the sold calls.

AMCOR

We recommend buying Amcor and placing  a stop loss below the recent $13.90 low.

AMC will pay $0.30 dividend on September 4th.

At $14.00,  we believe Amcor is oversold and investors should begin accumulating the stock.

As volatility picks-up  in global markets, defensive yield names will begin to outperform in the next 3 to 6 months.

Amcor currently trades on a forward yield of 4.5% and the company pays a $0.26 dividend on the 27th  of February.

AMCOR

Shares of AMC continue to hold above $14.40 after yesterday’s sharp reversal off of the $13.70 low.

After announcing their H1 net profit of USD330 million, versus USD309 million last year, the packaging giant lifted its interim dividend by 8% to 21 cents.

We are holding AMC in our ASX Top 50 model portfolio and consider the stock a “buy/write” name over the medium -term.

As such, we would look to sell the $15.00 call into June, which would allow investors to collect the February dividend of 25.6 cents and enhance portfolio returns with the call premium.

Amcor