Algo Update – Resmed

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Resmed

Our Algo Engine has triggered multiple buy signals in Resmed, since the stock price began a series of “higher low” formations going back to 2015.

The recent strong rally started in late 2016 after making a low at around $7.00.

With the stock now trading at $10.00, the PE is pushing into the high 20’s.

The upcoming earnings result on the 2nd August will have to deliver 10 – 15% underlying EPS growth to meet market expectations.

Chart – RMD

ALGO UPDATE: ORG Shares Firm On NT Gas Discovery

Posted on | by Todd | Leave a Comment on ALGO UPDATE: ORG Shares Firm On NT Gas Discovery

On June 23rd, the ALGO engine triggered a buy signal on ORG at $6.90.

Shares of ORG got a boost today as news of a multi-billion dollar gas resource was found in the Northern Territories.

Origin estimates that up to 6.6 trillion cubic feet of gas is in the area based on a 57-day production test. That volume is enough to cover Australia’s domestic gas needs for over five years.

We have a medium-term upside target of $8.00 and would consider ORG as a good buy/write strategy to add value to investor’s portfolios.

Origin

 

Lower US Yields Lift the AUD/USD

Posted on | by Todd | Leave a Comment on Lower US Yields Lift the AUD/USD

Over the last 10 trading sessions, yields in the benchmark 10-yr and 30-yr US bonds have dropped over 5% to 2.26% and 2.82, respectfully.

The quick reversal in yield expectations has had several “knock-on” effects across various markets.

The lower US yields will have a dampening effect on US banks, which has been illustrated by the weaker forward guidance from Goldman Sachs and JP Morgan.

More locally, the weaker US yields has triggered a sharp rally in the AUD/USD up to a 2-year high of .7940 in early trade.

We have written about how a back up in US rates would benefit local yield sensitive names like GPT and negatively impact multinationals like CPU.

US 30-yr Yield

 

Algo Signal – Crown Resorts

Posted on | by Leon Hinde | Leave a Comment on Algo Signal – Crown Resorts

Crown Resorts is likely to announce further capital management initiatives at the FY17 result on 4th of August.

Crown recently sold its remaining stake in MLCO, realizing net proceeds of A$1.3b.  Our view is that these proceeds will  be used to either reduce debt, or embark on the next stage of its capital management program.

Our Algo Engine triggered a recent buy signal at or near $12.00

Chart – CWN

 

ALGO UPDATE: CBA and APRA

Posted on | by Todd | Leave a Comment on ALGO UPDATE: CBA and APRA

Our ALGO engine triggered a sell signal in CBA on June 29th at $84.10. The share price hit a low of $81.30 yesterday.

Before the market opened this morning, APRA announced new “capital adequacy” targets with the goal of making the domestic banks safer.

The regulator will now require a 150 basis point increase to 10.5% in the minimum safety reserves that must be held by the five major banks.

Shares of the “Big 5” have all opened sharply higher in early trade. However, we believe that the local banking sector faces other market headwinds going forward and that lower share prices are likely over the medium-term.

CBA