Healthcare – Preferred Holdings

Posted on | by Leon Hinde | Leave a Comment on Healthcare – Preferred Holdings

CSL, SHL, RMD & RHC remain our preferred healthcare names.

Resmed is looking a little expensive and we’d like to repurchase on the next retracement.

Sonic Healthcare:  we expect 5 – 8% EPS growth and consider this a good buy/write addition to portfolios.

Ramsey Healthcare – Accumulate with $74 price target

CSL:  15 – 20% EPS growth remains attractive and adding a covered call option enhances the yield.

CSL

 

 

Buy AGL – Generate 10 – 12% cash-flow

Posted on | by Leon Hinde | Leave a Comment on Buy AGL – Generate 10 – 12% cash-flow

Our Algo Engine triggered a buy signal in AGL back in July at $23.00.

We see the current retracement from $26 back to $24 as another opportunity to add AGL to portfolios.

We hold AGL in our ASX 50 model and  we’re encouraged by the double-digit EPS growth outlook and the  5% dividend yield.

We’ve also added a covered call option to boost the cash-flow yield to 10 – 12% p/a.

AGL

S32 – Spins-Off South African Energy Coal

Posted on | by Leon Hinde | Leave a Comment on S32 – Spins-Off South African Energy Coal

South32 announced plans to run its South African Energy Coal (SAEC) business separately from the rest of the company from April 2018.

We see this announcement as a net positive for shareholders.

Risks to South 32’s earnings relate to their exposure to commodities which have performed strongly over the near term.

S32 trades on a forward yield of 4.1% and we hold the stock in our ASX 50 model.

South 32

ALGO Update: QAN Shares Are Regaining Altitude

Posted on | by Todd | Leave a Comment on ALGO Update: QAN Shares Are Regaining Altitude

Our ALGO engine triggered a buy signal in QAN last Friday at 5.60.

Since posting a 52-week high at $6.53 on October 18th, QAN shares have traded down to a low of $5.57 last Thursday.

Technically, the share price is still tracking a “higher low” pattern which is bullish and suggests the recent sell off is a correction within a broader uptrend.

the company is currently trading on a P/E of 13X and will likely improve on the FY 17 after tax profit of $853 million announced back in October.

QAN is also one of the ASX companies that will benefit from a weaker Aussie Dollar as inbound tourism is likely to increase.

Over the near-term we are looking the share price to reach the $6.25 area.

 

QANTAS

 

Algo Buy Signal – AMP

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

Our Algo Engine generated a recent buy signal in AMP.

With the price action finding support at $4.75 and now trading into the $5.15 range, we continue to see upside momentum.

AMP looks well positioned to benefit from domestic trends in mandated super and search for yield in infrastructure & property.

AMP is currently in our ASX 20 and ASX 50 model portfolios.

AMP

ALGO Update: Treasury Wine Estates

Posted on | by Todd | Leave a Comment on ALGO Update: Treasury Wine Estates

Our ALGO engine triggered a buy signal on TWE back in early July at $12.55.

Since then the share price has added close to 20% closing Friday just over $15.80.

The company, with a market cap of $11.11 billion, recently declared a final dividend of 13 cents per share, 50% franked, bringing the total dividend for FY17 to 26 cents per share, a yearly increase of 30%.

TWE has a portfolio of more than 70 brands, including Penfolds, Pepperjack and Lindeman’s, with sales operations in more than 70 countries.

French wine growers have suffered recently on the back of unfavorable weather which has resulted in vineyards in wine-growing regions such as Bordeaux and Champagne being damaged by frost.

As a result, the French Agricultural Ministry has reported wine production will fall by about 20%, leading to the lowest level of output in more than 60 years.

In addition to the strong sales growth in Asia, we consider the lower European wine production as a bullish development for TWE and expect further share appreciation into the end of the year.

Treasury Wine Estates