Woolworths – Buy Signal

Posted on | by Leon Hinde | Leave a Comment on Woolworths – Buy Signal

We continue to like WOW as a low risk income play in client portfolios. Our Algo Engine generated a recent buy signal in Woolworths and the stock is held in our top 20 and top 50 model.

Price target of $27. Investors may choose to add a covered call to boost the cash flow.

1Q18 sales update today shows growth in customer transactions driving Australian Food comparable sales growth for the quarter of 4.9%.

Strong double-digit online sales growth in both Australian and New Zealand Food assisted by the rollout of Pick up to all Woolworths and Countdown supermarkets.

Solid sales growth in Endeavour Drinks, with the sales performance of BWS a particular highlight.

 

ALGO Update: Technical Outlook Improves For Crown Resorts

Posted on | by Todd | Leave a Comment on ALGO Update: Technical Outlook Improves For Crown Resorts

Our ALGO engine triggered a buy signal on Crown Resorts on September 28th at $11.10.

Since then the share price has traded in a range between $11.80 and $10.90.

We are seeing an improved technical picture on the stock with buy-side support increasing in the $11.10/20 range.

Over the medium-term, we see the $11.80 level broken to the upside with a potential range extension up to $12.60.

Crown Resorts

 

Newcrest Gets A Lift From The Weaker Aussie.

Posted on | by Todd | Leave a Comment on Newcrest Gets A Lift From The Weaker Aussie.
Last week’s production report from Newcrest showed a drop of 5.2% versus the previous quarter. However, the company reaffirmed their full-year production forecast of between 2.4 and 2.65 million ounces of Gold for the year. 

Despite the lower quarterly production, and sideways trade in Spot Gold, shares of NCM have gained about 4% from $21.50 to $22.30 over the last six trading sessions. 

One of the reasons for this is last week’s 2% slide in the AUD/USD.

NCM sells its Gold on the international market which is priced in US Dollars. As the AUD/USD trades lower, the profit margin on a fixed ounce of Gold increases. 

The technical picture has also improved on the stock and we see price resistance near the mid-September level at $23.20. A rally back over $1300 in Spot Gold would likely extend the price range to $23.70.

Newcrest Mining

 AUD/ USD

 

 

 

 

Crude Oil Firms After OPEC Comments

Posted on | by Todd | Leave a Comment on Crude Oil Firms After OPEC Comments

The price of WTI Crude Oil rose over 2% on Friday as comments from several OPEC ministers reaffirmed their commitment to rein in excess output from OPEC and non-OPEC producers.

The front-month November contract posted a 6-month high at 54.20 as the apparent adherence to the production cuts creates a solid pretext for the November 30th OPEC meeting in Vienna.

OPEC and other major producers including Russia have pledged to reduce production by around 1.8 million barrels per day to drain a global supply glut.

The next key resistance level is the February 23rd high of $54.90.

WTI Crude Oil

ALGO Update: Sell Ramsay Healthcare

Posted on | by Todd | Leave a Comment on ALGO Update: Sell Ramsay Healthcare

Our ALGO engine triggered a sell signal on RHC at the ASX close yesterday at $67.20.

On August 22nd, RHC posted an intraday high of $76.20 before falling close to 20% to $61.05 on September 21st.

While the price rebound over the last few weeks has given investors the chance to make some short-term profits, the medium-term outlook suggests more range-bound price action going forward.

RHC is currently trading at 23X FY18 earnings and a yield of 2.3%.

Ramsay Health Care