Qube Holdings is now under Algo Engine buy conditions and as part of the review, we take a closer look at the FY20 earnings results.
COVID has had a negative impact on overall volumes and we expect to see a gradual improvement over FY21 and FY22.
Qube is Australia’s largest integrated provider of import and export logistics services with a market capitalisation in excess of $4.88 billion as at 30 June 2019.
We operate in over 130 locations across Australia, New Zealand and South East Asia with a workforce of over 6,500 employees.
Qube is comprised of three business units including Ports, Bulk and Logistics division, Infrastructure and Property division and Strategic Assets division. We also hold a 50 percent interest in Patrick Terminals, Australia’s leading container terminal operator.
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:
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.
Today’s report is a summary of what I’m watching following some of the recent price action in the market. On the 30th of August I wrote a blog post under the heading “Property Trusts” and the commentary there still remains relevant. If the Fed Reserve doesn’t raise rates in 2016, we’ll see the yield names rally 5% to 10%. With this in mind, WFD, GPT, SCG are worth keeping on your watch list. AGL, TCL, BXB, IAG, SUN and BLD have also been triggered by the algorithm engine as buying opportunities that should be tracked for an appropriate entry point.
Other names that we’re waiting for a buy signal on include JHX, SGR, QUB, RMD, TWE, SHL, CWN, AMP and NVT. Out of this group, QUB and CWN are the closest to the entry condition being triggered.
Qube Holding Ltd (QUB.ASX) is starting to trend higher as expected. The premise of this trade is the market will begin to re-rate QUB following the finalisation of the asset purchases from Asciano. Traders may look to take take profit around the $2.50 level.
Keep this one on your radar as the 2 to 3 year outlook should see this stock present multiple buying opportunities. Our algorithm engines will continue tracking for optimum entry and exit levels.
The market appears to be under heavy sell side pressure at present with Asian markets down almost 3% today, therefore, any buy side transactions carry added risk. To combat this, reduce position size and/or leg into the trade in two transactions at different entry points. QUB has been on my radar and I’ve been waiting for it to pull back into the $2.25 level.
Tomorrow when the ASX resumes trading, start checking QUB out for an initial buy at or near the open. Remember, ease up on the dollar allocation.