Seek – Sell Signal

Seek is under Algo Engine sell conditions and we remain on the short-side of the trade.

Two negatives we focus on:-

1}Surprise need to raise money in the bond market; and

2} Announcing they were dumping the final dividend in a bid to preserve capital, blaming the “uncertain environment” for the decision.

The above post was from Monday. Following today’s earnings release, Seek is down 13%. Seek has been a high conviction “short” trade expressed on our blog and in our Monday night webinar.

We suggest covering the short and taking profit.

Seek – Sell Signal

Seek is under Algo Engine sell conditions and we remain on the short-side of the trade.

Two negatives we focus on;

1}Surprise need to raise money in the bond market; and

2} Announcing they were dumping the final dividend in a bid to preserve capital, blaming the “uncertain environment” for the decision.

Seek – Buy

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

The company reported its FY19 earnings yesterday and provided strong guidance and a positive outlook for FY20.

F19 was in line with consensus with revenue up 18% and EBITDA up 8%.

FY20 guidance has been upgraded to 15 – 18% revenue growth and profit growth of 10%+. Seek now trades on a 2.8% forward yield.

Buy Seek and sell out of the money covered calls to enhance the yield.

Seek – Ex-div 25th March

Seek is a current holding in our ASX 100 model portfolio. The stock goes ex-div $0.24 on the 25th of March and adding a covered call option will boost the annualized cash flow to 10%+.

Seek delivered recent earnings slightly ahead of market consensus and we consider the stock an attractive income contributor to client portfolios.

For more detail on the covered call strategy, please call our office on 1300 614 002.

 

 

Strong Recovery In Seek

Shares of SEK have extended this week’s gains and have reached a two-week high of $18.55 in early trade today.

The online job search engine has been under an ALGO buy signal since August and is part of our ASX Top 100 Model Portfolio.

We consider much of the recent downside price action technical in nature and see solid chart support in the $17.50 area.

The next key resistance level is near $19.60 with a longer-term target above $20.25.

SEEK

TWE, SEK & CAR – Above Trend EPS Growth

TWE, SEK and CAR are all displaying current Algo Engine buy signals and are  therefore a holdings within our ASX100 model portfolio.

We recommend accumulating TWE stock within the $14.50 – $15.50 price range.

Seek is another name where above average EPS growth is likely to be achieved in FY19 & FY20.  We recommend accumulating the stock within the $17 – $18 price range.

CAR delivered a disappointing earnings update earlier this month, however, with the stock price correcting 25%, we now see value emerging.

 

 

 

Seek – Price Support At $20.50

Our Algo Engine generated a buy signal in Seek at $19.70 back in July.

With the current share price finding support, (at a new higher low formation), we see this as a viable buy-write opportunity.

June $22.50 call option will generate an additional $0.75 per share of income.  Seek goes ex-dividend $0.24 on the 26th of March.