Shares of TCL have dropped about 10% over the last month since announcing a $4.8 billion capital raising related to the WestConnex project.
The share price suggested has been $10.80, which is just 10 cents below last Thursday’s intra-day low.
From a broader perspective, we believe the 25.5% ownership of the WestConnex project will underscore TCL’s status as Australia’s dominate toll road operator, support future cash flow and secure their dividend growth.
We don’t currently have an ALGO buy signal for TCL, but would not be surprised to see one soon.
Our medium-term target for TCL is in the $13.00 area.
Our ALGO engine triggered a sell signal on GPT on June 21st at $5.36.
This “lower high” pattern is referenced to the high of $5.49 posted earlier this year on January 5th.
It’s worth noting that two other yield sensitive names, TCL and SYD also triggered ALGO sell signals last week. Furthermore, all three of these stocks will go ex-dividend on Thursday, June 28th.
As illustrated in the charts below, all three of these stocks have been in an uptrend since March. We expect this pull back into their dividend should allow for better entry points for medium-term investors.
We see initial support for GPT at $4.70, with a stronger chart point at $4.50.