Spot Gold Posts A Weekly Reversal Higher

Posted on | by Todd

After sliding more than $200.00 over the last four months, Spot Gold snapped a six-week losing streak to close at $1205.00.

Yesterday’s 2.0% rally was supported by the combination of a slightly lower US Dollar and a record high short positioning from retail speculators.

The technical indicators suggest Gold bulls have a bit more work to do to before a sustainable reverse in trend can be established. A NY close above resistance at $1212.00 would confirm a major low is in place.

We currently have ALGO buy signals for both NCM and EVN and both stocks are part of our ASX Top 100 portfolio.

We suggest adding to long positions in both of these names with  medium-term targets of $23.35 and $3.65, respectfully.

Newcrest Mining

Evolution Mining

 

 

Algo Update – Buy AGL

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in AGL at $20.50.

With moderate earnings growth into FY19 and the regulators looking to intervene in retail electricity pricing, it is hard to see where the uplift in the share price will come from.

With the stock on a 5.5% forward yield and limited downside risk, we consider AGL a suitable buy-write opportunity for portfolios. Through adding a $22 call option we’re generating 10 – 12% annualised cash flow.

AGL

Mortgage Choice – Shorting Opportunity

Posted on | by Leon Hinde

Any short strategy in a bull market will often be at a disadvantage, simply as a function of “fighting the tide” of capital flows.

Often to succeed, investors need to be identifying structural issues within companies or industries caused by increased competition, regulation changes, weakening margins or excessive  debt.

Mortgage Choice goes onto our watch list and we’ll begin taking a closer look at the fundamentals and will update in a future posting.

Mortgage Choice

 

 

Star Group Shines After FY Earnings Report

Posted on | by Todd

Shares of Star Entertainment have surged over 7% higher to reach a two-month high of $5.45 in early trade.

The company released full-year results this morning which showed underlying profits rose 20% to $258 million versus the street’s estimate of $248 million.

Much of increase was focused on foreign “high rollers” which lifted SGR’s turnover by 54% to $61 billion.

We see chart resistance at $5.50 over the medium-term.

SGR goes ex-dividend for 13 cents on August 28th.

Start Group Entertainment

Algo Buy Signal In Woolworths

Posted on | by Leon Hinde

Our Algo Engine has triggered a buy signal in WOW following the recent sell-off from $30.50 back down to yesterday’s close at $28.25.

Woolworths goes ex-div $0.50 on the 13th of September and we recommend accumulating the stock now , ahead of the dividend and then looking to sell $29.00 covered calls to enhance the income.

Woolworths

APA Group – FY18

Posted on | by Leon Hinde

APA’s FY18 operating results were ahead of market consensus with underlying profit growth of 6%.

FY19 forecasts suggest low single digit growth with EBITDA guidance in the range of $1.55b to $1.57b.

The ACCC is expected to release a Statement on, or before the 13th September, expressing its preliminary concerns about the take-over by CKI, (offer price$11 per share).

Further price retracement back towards $9.00 creates another buy opportunity here with APA. The stock now trades on a  forward yield of 4.5%

 

Buy The Dip In BHP

Posted on | by Leon Hinde

Shares of BHP have found support just above $32.00 after Wednesday’s mixed full year profit report.

While total revenue rose 20% to US43 billion, cost will likely rise as the company lowered its productivity savings target for 2019.

Still, we believe stable Iron Ore prices and strong energy supports BHP. Capital returns to underpin downside risks.In BHP.

BHP goes ex-dividend for 85.6 cents on September 6th.

BHP