Wesfarmer Plans To Spin off Coles

Posted on | by Todd | Leave a Comment on Wesfarmer Plans To Spin off Coles

Shares of WES have opened over 5% higher to $43.60 as the company announced that it will divest its Coles grocery business into a stand-alone ASX listing.

This new entity will be made up of over 800 supermarkets and bottle shops, 700 gas stations and 88 hotels.

The action will result in WES shareholders being granted shares in the new Coles business after WES retains a 20% equity holding.

This is all pending board, shareholder and regulatory approval.

WES was added to our Top 20 Model Portfolio about 2 years ago at $39.05. We would consider WES a Buy/Write opportunity at current levels.

Wesfarmers

 

FMG Gets A Lift From Higher Ore Prices

Posted on | by Todd | Leave a Comment on FMG Gets A Lift From Higher Ore Prices

Shares of FMG are firming back over $4.80 in early trade as Spot Iron Ore prices rose for the second consecutive day to reach $72.00.

Analysts have pointed to the end of China’s winter curbs on metal production as supporting demand for all grades of Iron Ore over the near-term.

Internal momentum indicators on the daily charts are improving and we see the next resistance level at $5.25 and support at $4.60.

FMG is part of our Top 50 Model portfolio and we suggest that investors can buy the stock at current levels for a move back into the $5.40 area over the medium-term.

Fortescue Metals group

 

 

 

 

ALGO Buy Signal For Oil Search Ltd

Posted on | by Todd | Leave a Comment on ALGO Buy Signal For Oil Search Ltd

Our ALGO engine triggered a buy signal for OSH into the ASX close yesterday at $7.05.

OSH is widely regarded as owning some of the southern hemisphere’s best LNG assets and as such is a favorite stock for retail investors.

The stock’s performance has closely tracked the global energy markets, which have been very active recently.

Technically, we see scope for a upside move to $7.80 and good support near the $6.90 area.

Oil Search