We continue to prefer the long side of Crown Resorts and view the stock as a suitable “buy-write” strategy for client portfolios.
$14.01 (Euro) Dec call options generate an additional $0.50 of income per share.
Crown Goes ex-dividend $0.30 on the 21st September.
Crown Resorts
BlueScope has upgraded 2H EBIT guidance to US$680m, this leads to consensus FY18 EBIT of US$1.2bn.
The upgrade driving higher profitability is due to stronger steel spreads in the US.
Bluescope was added to the ASX 100 model on the 6th February and is currently up 26%. 
We consider Caltex a buy at $31 and recommend selling covered call options to enhance the income.
Caltex goes ex-div $0.60 on the 11th of September.
Our Algo Engine generated a buy signal in Tabcorp at $4.20 and we expect to see the share price trading in the $5.00+ range, following the August earnings result.
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We’ve been holding Crown Resorts following the recent Algo buy signal at $12.41, back in February.
Crown has a renewed focus on cost control and the supportive back drop of a lower Australian dollar, as well as, increased inbound tourism should lead to the August earnings result surprising on the upside.
Crown goes ex-div $0.30 on the 21st September.
It’s been about 3-weeks since QAN released its Q3 update, which showed a 7.5% increase in revenue versus the previous quarter and an increase in capacity.
Since then, the share price has reached a 10-month high of $6.45 before slipping lower on the recent spike higher in crude oil/ fuel prices.
QAN was added to our Top 50 model portfolio last July at $5.24. We suggest looking for a pullback into the $6.00 area to add to long positions.
QANTAS
Our Algo Engine generated a buy signal in Graincorp on Friday, following the price action forming a “higher low” pattern at $7.58
We suggest buying GNC with stop-loss below $7.55
We expect the major banks to begin forming “lower high” patterns in the near-term and the Algo sell signals should be observed.
We advise holders of bank stocks to either sell covered call options and enhance the yield, or take the opportunity to rebalance portfolios from any overweight exposure to the sector.
Pilbara Ports Authority released its April shipping figures for its ports in the Pilbara region, which delivered a total of 59.1 million tons for the month, a seven per cent year-over-year increase.
Iron ore exports from Port Hedland remained consistent, up 1 per cent from April 2017 figures to 42.6 million tons.
These better-than-expected export numbers helped lift FMG over 4% for the week to reach a 4-month high of $4.95.
FMG is part of our ASX Top 50 portfolio and we see the next near-term target in the $5.50 area.
Fortescue Metals Group
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
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