A Triple-Top Formation In AMP

Posted on | by Todd | Leave a Comment on A Triple-Top Formation In AMP

Shares of AMP have been carving out a triple-top pattern since October of last year. Since then, the share price has topped out around the $5.30 level on January 9th, and again on April 4th.

Regular readers will recall that AMP posted a loss of $344 million back in February. This was the company’s first full year loss since 2003 and exposed ongoing concerns about their life insurance and wealth protection divisions.

We are currently holding a $5.00/4.60 put spread into June and suggest investors look at downside opportunities from AMP.

Our near-term target is $4.60, but see scope for a move back to the November low of $4.30.

WPL – Q1-17 Production

Posted on | by Leon Hinde | Leave a Comment on WPL – Q1-17 Production

Woodside’s 1Q-17 quarterly production was impacted by weather, with sales revenue down to US$895 vs US$1b in the December quarter of 2016.

Woodside is working on advancing Scarborough & Browse LNG projects. With the market assigning a minimal current value to these projects, they could provide longer term material upside to Woodside should it be successful in demonstrating the viability of the projects.

FY18 forecast EPS is likely to be similar to FY17 placing the stock on a forward yield of 4%.

 

 

 

A Yield Play For Telstra

Posted on | by Todd | Leave a Comment on A Yield Play For Telstra

Shares of Telstra have dropped close to 15% over the last month. When the shares traded at $4.00 on Tuesday, this was the lowest price since October 2012.

While some of the pricing fundamentals may be unclear going forward, from a pure yield perspective, we see the potential for value.

At current prices, if TLS matches it’s previous dividend of 15.5 cents in September, this puts the stock on a forward yield of over 8%; plus franking credits.

We consider this good value and like the long side of TLS for a move back over $4.50 in the medium-term.

 Telstra

Drop In Crude Oil Puts CTX back In The Buy Zone

Posted on | by Todd | Leave a Comment on Drop In Crude Oil Puts CTX back In The Buy Zone

WTI Crude Oil prices posted their largest one-day loss in six weeks, as the US Energy Information Administration reported a smaller than expected draw down on crude supplies.

The Spot crude price fell $1.97, or 3.8% to settle at a 4-week low of $52.90. The next level of support will be found at $52.50.

We expect the overnight fall to put shares of Caltex (CTX) back into the buy zone around the $28.80 level.

Regular readers will recall that we sold our long positions in CTX early last week in the $30.50 area.

The Daily chart pattern is showing a trading range of $28.30 to $30.50, we are looking to trade this range over the near-term.

Chart Caltex