Orica is under Algo Engine buy conditions and is a current holding in our ASX model portfolios.
ORI reported FY20 results, with EBIT of $605m, (down 9% on the same time last year), and underlying NPAT of $300m.
To support an improving share price we continue to monitor the potential for faster-than-expected resolution of manufacturing of the Burrup Plant.
FY21 dividend yield is forecast at 2.8%.
Orica is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Orica is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
ORI expects FY20 EBIT to be around $600mn which represents a 10% fall on the same time last year.
The full-year results will be announced on 20 Nov.
Orica has found increased buying support at $15.50 and the short-term indicators have now turned positive.
Orica is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
FY21 revenue is likely to remain flat at $5.8bn and EBIT is forecast to increase 3-5% to $630mn. This supports a forward yield of 2.8%.
Earnings are likely to be well supported due to higher volumes and the strength in the mining industry, especially from the gold mining market.
Earnings may surprise to the upside and we continue to hold ORI into the next earnings release.
Orica has found support after re-testing the $17 higher low price point.
Orica is under Algo Engine buy conditions. We expect to see the share price continue to move higher.
ORI goes ex-div on 12 November 2020 $0.33.
Orica is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Goldman Sachs raised $500 million in acquisition funding for ORI via an institutional placement.
The funds will be used for the acquisition of Exsa, Peru’s No. 1 manufacturer and distributor of industrial explosives and provide greater balance sheet flexibility.
We see strong buying support at $20.
Last week on the blog we looked at the short signal on Orica leading into their earnings result.
1H18 earnings were announced yesterday and they disappointed, with a 37% drop on the same time last year.
NPAT of $124m where as consensus was looking for $149m.
The share price dropped over 5% and reached an intra-day low of $18.70 before recovering to $19.00.
This was a very popular “short” CFD trade on our SAXO Go trading platform; we suggest taking profits on the short ORI position near the $19.00 area.
Orica
We recommend the short side of Orica heading into 2H18 earnings announcement on 7th May.
The market is looking for significantly stronger 2H performance and is likely to be disappointed. Orica is trading on stretched valuations and offers a 2.6% forward yield.
Look to sell within the range displayed below.
Orica
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
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