Ansell – FY20 Earnings

Ansell is under Algo Engine buy conditions and is a current holding in our ASX 100 model.

FY20 earnings showed revenue up 8% to US$1.64bn, and EBIT up 4% to US$220m. The company upgraded FY21 guidance for 8% underlying EPS growth.

ANN should continue to see strong top line growth and we recommend investors add to the position on the next Algo Engine buy signal.

Forward dividend yield is 2.2%.

Buy Ansell & Add Call Options

Ansellis a current holding in our ASX 100 model portfolio and we continue to see value as a “buy-write” strategy.

ANN goes ex-div $0.26 on the 16th of Feb.  We suggest adding a $24 strike May call option. This will generate an additional $0.70 per share of income.

ANN reports half year 2019 profit on the 18th of Feb.

 

Buy The Dip In Ansell

Our Algo Engine has triggered a buy signal in Ansell.  And with the share price finding support at $22.50, we recommend accumulating the stock.

Technically, the share price looks to be carving out a “double bottom” pattern dating back to September of last year at $22.10.

Our upside target is $24.50, at which time investors can consider either taking profit or selling slightly out of the money call options to enhance the income.

ANN goes ex div $0.30 in Feb 2019.

Ansell

 

ANN Nears $22.00 Support Area

Shares of ANN reached a 52-week low at $22.06 in early trade today.

This represents a 25.5% drop since the share price traded an intraday high at $29.65 on July 27th.

ANN is currently under ALGO Engine buy conditions from $24.80.

As illustrated in the chart below, the price has reached the value target near $22.00.

 

 

Investor Interest Is Returning To Ansell

Our ALGO engine triggered a buy signal for ANN on August 27th at $25.06.

Since then the stock has range traded between $24.30 and $25.80.

Based on their recent disclosures, ANN has a healthy balance sheet, is planning to maintain earnings growth through acquisitions and has outlined plans for a USD600 million share buyback scheme.

We expect to get more clarity on these actions at their AGM on October 18th.

Technically, there is a price gap above the current market from $26.80. We believe this is a realistic price target in the lead up to the AGM.

Annsell