Orica Slips On Lower Earnings

Posted on | by Todd | Leave a Comment on Orica Slips On Lower Earnings

Orica Limited has reported that their 1H17 net profits after tax was $195 million, which beat the expectations of $185 million.

However, ORI shares are down close to 2% at $18.26 as revenues fell and guidance on key Ammonium-Nitrate prices are pointing lower.

An oversupply of Ammonium-Nitrate will likely act as a drag against future earnings and cap the share price below $19.25.

 

BHP Assets Are In Play

Posted on | by Todd | Leave a Comment on BHP Assets Are In Play

Shares of BHP have opened firmly above $24.00 as overnight comments from Andrew Mackenzie confirm the company is likely to spin off some assets in the near-term.

Mackenzie was addressing a major mining conference in Barcelona when he gave the strongest indications yet that BHP might be giving ground to New York hedge fund Elliott Management’s aggressive bid to break up the mining giant.

As such, we see this development as underpinning the stock, even as Crude Oil and Iron ore prices remain in the lower end of their 6-month trading ranges.

The ALGO engine triggered a buy signal for BHP on May 5th at 22.50. Over the last few days, we have suggest taking profits on long positions above $24.00 and looking to re-enter at lower levels.

NAB Shares Still Pointing Lower

Posted on | by Todd | Leave a Comment on NAB Shares Still Pointing Lower

On May 4th, we posted a report that the NAB’s H1 results would likely lead to a sell off back to the January lows of $30.50.

After going ex-dividend today, NAB shares have traded down to $31.65. A combination of the new bank levy and increased bad debt provisions will likely continue to weigh on the stock price.

We maintain our $30.50 target and suggest buying put options into June or selling covered calls to enhance portfolio returns.