Quarterly Reports In Focus This Week

Posted on | by Todd | Leave a Comment on Quarterly Reports In Focus This Week

There are two Quarterly production reports and an AGM this week which could offer trading opportunities for investors.

 OZL will hold its AGM on Tuesday,  and FMG and NCM will release their production reports on Tuesday and Thursday, respectfully.

Our ALGO engine is showing a buy signal for all three of these mining names and they are also part of our ASX Top 100 Model Portfolio.

The recent stability in Copper and Iron Ore has supported the shares prices of OZL and FMG, while the “range trading” in Gold has kept NCM active within the $19.60 to $20.30 price band.

For more information about investment opportunities in these names, call our office at 1-300-614-002.

Newcrest Mining

Fortescue Metals Group

Oz Minerals

ALGO Update: A “Buy/Write” Strategy For MPL

Posted on | by Todd | Leave a Comment on ALGO Update: A “Buy/Write” Strategy For MPL

Since trading as high as $3.25 a month ago, the share price of MPL has dropped over 13% to hit an 8-month low of $2.79 this week.

There have been several market reports citing increased political pressure for lower premiums and lower profits for domestic health care providers.

MPL reported a first-half net profit of $245.6 million in February, up 5.9% from the previous corresponding period with an interim fully-franked dividend of 5.5 cents per share, 4.8% higher than the previous corresponding period.

Our ALGO engine triggered a buy signal on MPL at $2.81 on April 13th.

We suggest buying MPL at current levels as a “buy/write” strategy.  More specifically, looking to sell $3.00 Call options into December for 10 to 12 cents.

This will allow for some capital appreciation and investors will collect the 6.75 cent dividend on September 6th.

Medi-Bank Private

 

 

Aristocrat reports its 1H18 result on 24 May

Posted on | by Leon Hinde | Leave a Comment on Aristocrat reports its 1H18 result on 24 May

Aristocrat reports 1H18 earnings on the 24th of May and we’re forecasting net profit after tax to be up 20%+ to $330 million.

Earnings growth is underpinned by strength in the North America and Digital businesses. If we assume year-over-year 20% EPS growth, ALL trades on FY20 dividend yield of 3%.

We consider ALL expensive, however, momentum continues to favour the long-side with investors advised to run a stop-loss below recent higher low formations.

Aristocrat

RIO – 1Q18 Fully Valued After Production Results

Posted on | by Leon Hinde | Leave a Comment on RIO – 1Q18 Fully Valued After Production Results

RIO reported mixed 1QY18 quarterly production results. Solid result from Pilbara iron ore, with production and shipments of 80+million tonnes in the quarter. This is equivalent to the top end of 330- 340 mt shipment guidance for the full year.

Copper production was largely in line and aluminium was mixed.

Capital management capacity remains high, with US$5bn in divestment
proceeds expected to settle in the next 12 months.

Resource market strength is likely in the last stages of the current rally and investors should look at selling call options or locking in outright gains.

Rio Tinto

 

Woodside Petroleum – 1Q18 production

Posted on | by Leon Hinde | Leave a Comment on Woodside Petroleum – 1Q18 production

1Q18 revenue for WPL was slightly softer than expected at US$1.169 billion.

Expansion of the WA-based LNG operations will provide longer-term growth, especially given the strength of fundamentals supporting LNG.

Post the acquisition of Exxon’s interest in Scarborough, WPL now holds a 75% stake with partner BHP holding 25%.  We expect BHP to be a natural seller of its remaining interest.

Woodside Petroleum