ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

EVN has been under an ALGO buy signal since August 1st at $2.85 and is part of our ASX Top 100 Model portfolio.

EVN has a market capitalization of $5.2 billion and operates mines in QLD, NSW and WA.

Combined, these mines produce about 720,000 ounces of Gold per year at an all-in sustained cost of US650 per ounce.

EVN will hold their AGM in Sydney on Thursday. Good news from that meeting could see the share price trade back above the recent high of $3.45.

Evolution Mining

 

 

Keep QANTAS On The Radar

Posted on | by Todd

Our ALGO engine triggered a sell signal on QAN on November 14th at $6.05.

Since then the stock has traded lower and reached $5.45 in early trade today.

From a longer-term perspective, we believe QAN will benefit from from the 30% drop in crude oil since October. Even if energy prices stabilize near current levels, QAN is well-placed for solid profit growth in 2019.

We expect to see investor interest accumulate in the $5.10 area and will look for an ALGO buy signal in that range.

QANTAS

 

 

 

 

Flight Centre: Forming A Technical Base Near $46.00

Posted on | by Todd

Since posting an all-time high of $70.50 on August 20th, shares of FLT have dropped over 30% to the current level of $47.00 in early trade today.

Much of the negative sentiment has been focused on the potential loss of market share from other online booking agencies.

However, recent data shows that the investment that FLT made in its in-house online service is starting to pay dividends.

Over the last several months, online flight and hotel bookings have risen to over 20% from just over 5% earlier in the year.

At current levels, FLT is trading at 16X earnings and a 3.7% yield.

Technically, the stock is forming a “rounded bottom” pattern relative to the November 2nd low at $44.20.

We see the first level of resistance at $52.50 with a longer-term target near $57.15. Flight Centre

Macquarie Upgrades Earnings

Posted on | by Leon Hinde

Macquarie Group is a current holding in the ASX100 model portfolio.

Macquarie upgraded their earnings guidance for FY19 profit to be up 15% from a previous estimate of 10%.

Now that the ACCC has given the green light for Santos to acquire Quadrant Energy, MQG stands to collect about $500 million for their 22% stake in Quadrant.

Macquarie Group

 

Buy Wesfarmers

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal in Wesfarmers into the ASX close on Friday at $44.40.

This “higher low” pattern is referenced to the intraday low of $43.70 posted on May 10th.

We see value for investors emerging in the $44.50 range.

Following the spin-off of Coles, look to sell covered call options to enhance the income return.

Wesfarmers