CIMIC – Trade Update

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

24/4 CIMIC breaks above the 10-day average after forming a new trend low mid-week at $16.86.

10/5 Dec 21 $20 call options are now trading at $1.10.

14/5 CIMIC is now trading $19.84 and the Dec $20 calls have jumped from $1.10 to $1.50.


CIMIC – Trade Update

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

24/4 CIMIC breaks above the 10-day average after forming a new trend low mid-week at $16.86.

10/5 Dec 21 $20 call options are now trading at $1.10.


CIMIC – Trade Update

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

24/4 CIMIC breaks above the 10-day average after forming a new trend low mid-week at $16.86.


CIMIC – Trade Update

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

24/4 CIMIC breaks above the 10-day average after forming a new trend low mid-week at $16.86.


CIMIC – Below Expectations

Cimic Group is under Algo Engine sell conditions. Despite this, we’ve held a view that the company has cleaned up the balance sheet and offers exposure to an increasing infrastructure build thematic.

The FY20 earnings result and FY21 guidance was below market consensus and we’ve seen the stock sell off as a consequence.

FY21 NPAT guidance of $400-430m down from FY20 NPAT of $600m.

The silver lining is the business does appear to be de-risking and likely to manage its way through the transition to new, lower risk contract wins.

The forward yield is now 4%, but the free cash flow generation will need to be watched closely.

CIMIC – Earnings Review

Cimic Group has been one of our high conviction ideas expressed to members during our regular Monday night webinars.

CIM offers exposure to above-average EPS growth supported by increased government and private spending on infrastructure in Australia, New Zealand and Asia.

CIMIC is scheduled to report full year earnings on 10 Feb with NPAT estimated to be around $650mil.

CIMIC – Buy Opportunity

Cimic Group is currently trading under Algo Engine sell conditions and therefore, any buy is based on a “counter-trend move”.

The fundamentals support improving earnings growth for CIMIC and we see the dip below $25, as an area where buying interest is likely to rebuild.

Continue monitoring the short-term momentum indicators.

CIMIC – Buy Opportunity

Cimic Group is currently trading under Algo Engine sell conditions and therefore, any buy is based on a “counter-trend move”.

The fundamentals support improving earnings growth for CIMIC and we see the dip below $25, as an area where buying interest is likely to rebuild.

Continue monitoring the short-term momentum indicators.

CIMIC – Buy Opportunity

Cimic Group is currently trading under Algo Engine sell conditions and therefore, any buy is based on a “counter-trend move”.

The fundamentals support improving earnings growth for CIMIC and we see the dip below $25, as an area where buying interest is likely to rebuild.

Continue monitoring the short-term momentum indicators.