Investor Interest Is Returning To Ansell

Posted on | by Todd

Our ALGO engine triggered a buy signal for ANN on August 27th at $25.06.

Since then the stock has range traded between $24.30 and $25.80.

Based on their recent disclosures, ANN has a healthy balance sheet, is planning to maintain earnings growth through acquisitions and has outlined plans for a USD600 million share buyback scheme.

We expect to get more clarity on these actions at their AGM on October 18th.

Technically, there is a price gap above the current market from $26.80. We believe this is a realistic price target in the lead up to the AGM.

Annsell

 

ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

Our ALGO engine triggered a buy signal for EVN on August 1st at $2.83.

Since then the share price has ranged traded between $2.60 and $2.90, which is understandable since the price of Spot gold has also range traded between $1210 and $1190 during the same period.

It worth noting that in EVN’s recent three-year outlook statement, the gold miner expects production costs to remain around AUD 870.00 per ounce and production to increase to over 700,000 ounces per year.

As such, we expect EVN to trade back over the $3.50 level over a 3 to 6 month time horizon.

Evolution Mining

 

 

ALGO Update: QANTAS Is Back In The Buy Zone

Posted on | by Todd

Our ALGO engine triggered a buy signal for QAN at $6.16 on June 29th.

Since then the share price traded as high as $6.92 in late August.

However,  the recent surge in oil prices has pushed the share price down to $5.82 in early trade today.

Considering the dynamic hedging program that the company has in place, we believe the share price is nearing an oversold condition on the daily charts.

QAN is part of our ASX Top 50 portfolio and we see good value at current levels for a move back into the $7.90 area over the medium-term.

QANTAS

 

Telstra Shares Remain Firm

Posted on | by Todd

Shares of TLS continue to trade with a positive bias as market commentators remain largely split on how the NBN roll out  will impact the Telco giant’ s bottom line.

We believe investors will get a clearer picture after the AGM, scheduled for October 16th.

From a technical perspective, TLS has been building upside momentum with the next resistance level at $3.30 and solid support in the $3.05 area.

Telstra

ALGO Update: Stay Short Bank of Queensland

Posted on | by Todd

Our ALGO engine triggered a sell signal for BOQ on August 31st at $11.49.

Since then the share price has traded sideways to lower and has now broken a technical support level near $11.05.

BOQ will hold its AGM next Thursday, October 4th.

In addition to warnings about funding pressures and contracting margins, we also expect the bank to announce a $30 million restructuring charge during the meeting.

On balance, the combination of technical and fundamental weakness points to a return to the June lows near $9.60.

Bank of Queensland

ALGO Signal To Exit Japan ETF (HJPN)

Posted on | by Todd

Our ALGO engine triggered a sell signal for the Betashare Japan ETF (symbol HJPN) into Friday’s ASX close at $13.69.

This “lower high” pattern is referenced to the intra-day high of $13.88 posted on June 12th.

This ETF  is a unit trust made up of 10 of Japan’s largest companies including Honda, Sumitomo financial and Canon Inc.

Investors who held HJPN for the duration of the trade would have realized an 18.65% return including dividends.

Japan ETF (HJPN)

 

 

Healthscope – Price Support At $2.07

Posted on | by Leon Hinde

With US interest rates pushing higher, low growth defensive names have been under recent selling pressure.

We’ve seen this reflected in other yield sensitive names, within the property and infrastructure sectors as examples.

With Healthscope likely to grow forward earnings at 5% and trading on a 3% yield, it’s hard to be excited about the short-term investment returns, however, we’re confident investors will be rewarded over the next 2 – 5 years with income plus capital growth.

Accumulate HSO near the $2.10 price level.

Healthscope