Buy CIMIC Group

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal recently in CIMIC and we’re encouraged by the buying support which developed around the $40.50 level.

We continue to have a favorable outlook on the fundamental earnings backdrop for CIMIC and we expect next Thursday’s earnings announcement to further support the share price.

CIMIC goes ex-div $0.60 on the 12th September.

ORG Slips Lower In Front Of FY18 Report

Posted on | by Todd

On May 30th, ORG was added to the ASX Top 20 index to replace the dissolved  WFD entity.

Since many Super funds and managed equity firms have a mandate to hold a percentage of listed index shares, we expected ORG to get a boost from the listing.

Since then, the share price has risen by over 8% and posted a 3-year high at $10.27 on Monday.

ORG will release its Quarterly report on July 31st and it looks like the share price could slip lower in front of that announcement.

With the expectations of FY18 NPAT rising by up to 2.6%, we see scope for the stock to hold the $9.20 support level and reach the $10.60 price range after the quarterly report.

Origin Energy

 

 

 

S32 – Buy & add a covered call option

Posted on | by Leon Hinde

Our Algo Engine triggered a buy signal in S32 recently at $3.60. With the stock creating a new “higher low” formation, it has now been added into the  ASX Top 50 model.

S32 goes ex-dividend for 8 cents on the 14th September.   Adding a November $3.80 call option will generate an additional 20 cents of income per share.

South 32

ALGO Update: AGL Continues To Drift Lower

Posted on | by Todd

Our ALGO engine triggered a sell signal for AGL on May 2nd at $22.50.

At the time, we suggested selling  $23.00 call options into September, so investors would receive increased cash flow as well as the 54 cent dividend on August 23rd.

Performance reports from both the Loy Yang A and Bayswater facilities have failed to generate strong buying interest and we remain neutral on the stock.

Daily charts suggest the next level of support for AGL is near $21.35.

AGL

CIM Firms In Front Of Next Week’s Half-Yearly Report

Posted on | by Todd

Shares of Cimic Group continue to build on last week’s gains in the lead up to next week’s Half-yearly earnings report.

Since posting an intra-day low of $39.60 on June 6th, the share price has risen over 9%.

Our ALGO engine triggered a buy signal on June 1st at $40.73 and CIM is part of our ASX Top 100 Model Portfolio.

Next week’s report is expected to show NPAT at $341 million and a 62.4 cent DPS.

Daily price charts point to a medium-term target near $46.40.

Cimic Group

ALGO Update: CSR Is Finding Support at $4.50

Posted on | by Todd

Our ALGO engine triggered a buy signal on CSR at $4.64 on June 15th.

The “higher low” pattern is referenced to the $4.36 low posted in November of last year.

Internal momentum indicators are beginning to firm suggesting solid investor support in the $4.50 area.

CSR will pay a 13.5 cent dividend in November and we see a medium-term upside target around $5.45.

CSR

 

 

ALGO Update: CTX Is Approaching The Buy Zone

Posted on | by Todd

Our ALGO engine triggered a sell signal on CTX on June 21st just above $31.25.

A recent broker note has updated its rating on CTX to “outperform” and given the share price a 12-month target of $37.00.

The share price has come under pressure over the last few sessions as  last week’s fuel supply extension with Woolworth’s was expected to result in an $80 million reduction in CTX’s EBIT.

We expect the share price to find support around the $30.50 area and will update on specific buy levels in a future posting.

Caltex