Higher Low Pattern Stocks to Add to Your Watchlist

Posted on | by Leon Hinde | Leave a Comment on Higher Low Pattern Stocks to Add to Your Watchlist

The following group of stocks are in either established uptrends or, in recent months they’ve broken downtrends to begin building the early stages of a bullish “higher low” formation.

Many of these names have been mentioned previously in the blog and/or the monthly strategy video report. It’s worth loading these codes into your watch list and considering rebalancing your portfolio to include allocations towards some, or all of these names:

JHX, LLC, MQG, SHL, TWE, ANN, ANZ, ASX, CCL, CIM, COH, QUB, TAH, WOW & WPL.

With the lower growth names within the above basket, such as WOW & CCL, we compliment the position now with tight covered calls to enhance the yield to 10%+ per annum. With some of the other names, we give a little more breathing space as we expect 5 to 10% price appreciation before selling the call option overlay.

 

 

 

 

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

 

 

 

 

 

 

James Hardie 1QFY17 Earnings Update

Posted on | by Leon Hinde | Leave a Comment on James Hardie 1QFY17 Earnings Update

At the end of last week, James Hardie (JHX.ASX) management provided FY17 NPAT guidance for $US260 – $290m which implies growth within our expected target range of 12 – 15%.  These numbers reaffirm our buy on the dip strategy with JHX and  FY17 EBITDA of US$500m, NPAT $275m, dividends per share (DPS) of US$0.45 places the stock on a forward yield of 2.8%.

 

 

 

James Hardie 2Q16 Update

Posted on | by Leon Hinde | Leave a Comment on James Hardie 2Q16 Update

James Hardie (JHX.ASX) reported 2Q16 update and we see nothing here to stop the “buy on the dip” approach. We already hold this name (in client accounts) from lower levels and have sold the Nov $23 call options. For clients not holding this name, keep an eye out for our buy signal, I think we’re not too far away from an entry signal being triggered.

The stock trades on 25X forward FY17 earnings and we’re looking for EPS growth or around 15%. US housing data continues to look strong.

FY17 revenue in USD$1.9b, with EBITDA likely to be around USD$490m and USD$0.45 in dividends.

In AUD terms we’re looking at around 3% forward dividend yield.

JHX