Transurban – Preferred Holding

Posted on | by Leon Hinde | Leave a Comment on Transurban – Preferred Holding

TCL announced a $1.9bn fully underwritten renounceable entitlement offer to
fund WestConnex & West Gate Tunnel Project in Melbourne.

We continue to see high single digit growth in dividends with FY18 guidance at $0.55, placing TCL on a forward yield of 4.8%

TCL & SYD are current holdings in our ASX 50 model portfolio, following the recent Algo Engine buy signals.

 

 

IFL – Buying Support Returns

Posted on | by Leon Hinde | Leave a Comment on IFL – Buying Support Returns

IFL has caught our attention again after yesterday’s strong price performance following a number of research houses upgrading the earnings outlook.

The upgrades are supported by aggressive cost savings, post the acquisition of the ANZ advice business.

We’re not convinced IFL is a long-term buy and hold but with the recent upgrades we may see buying momentum create another leg higher in the “higher low” price formation.

We recommend running a stop loss below the recent low.

Medibank – Private Valuation Review

Posted on | by Leon Hinde | Leave a Comment on Medibank – Private Valuation Review

If we assume FY18 NPAT of $440m, (up 4% on FY17), and $0.12 per share in dividends, Medibank Private is now 20x FY18 earnings on a forward dividend yield of 4.3%.

Medibank continues to drive industry wide reforms, although growth appears limited due to ongoing affordability concerns.

We recommend selling at the money covered call options into June to enhance the yield, whilst keeping exposure to the March dividend.