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Westpac WBC reported 1Q19 earnings on Monday and despite the benefit of mortgage re-pricing pushing net interest margins higher, earnings exhibited no growth compared to the same time last year.
1Q19 cash profit came in at $2bn.
All banks, (excluding ANZ & MQG), are under Algo Engine sell conditions and we see little reason in the short term for these negative trends to reverse.
Coca Cola CCL is set to report earnings on the 21st of February. The stock is under Algo Engine sell conditions following a series of lower high formations, during the past two years.
The most recent sell signal was in January at $8.75. If we assume flat EPS growth into FY19 we have CCL now trading on a 5% yield.
Weakness in the upcoming result may push the share price below the $8.00 level, at which time, we would look to run a buy write strategy.
Brambles BXB reported 1H19 earnings which showed solid revenue growth but only a modest 2% profit growth.
EBIT from 1H19 continuing operations of US$504m.
We expect FY19 underlying profit growth to show low single digit improvement on the same time last year.
The stock looks slightly expensive at 19x and 3% yield. We’re looking for a pullback to sub $10.50 before reconsidering.
The IFCO separation remains on track for completion this year and will help underpin the share price.
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Whitehaven WHC Coal was removed from our ASX100 model portfolio on the 31st January following the Algo Engine sell signal at $4.99
The company announced last Friday, net profit after tax increased 19% to $306m for the six months ended December 31.
The market reacted negatively to the higher production costs and the lower production guidance for the remainder of the financial year.
The stock price has now sold off over 10%, since being removed from the model.
Whitehaven WHC announced a special dividend of 5¢, in addition to the 15¢ interim dividend. This is up slightly on the same time last year.
Link LNK is under Algo Engine sell conditions following the lower high formation at $8.00.
The 1H19 earnings were broadly in line with consensus expectations, however, we see headwinds from a weaker domestic business and general margin pressure across Link’s core operations.
Short LNK with stops above $7.40.
The Dow Jones chart below shows we’re in an extended counter move and are likely within 200 points of reaching initial resistance.
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Medibank is now under Algo Engine sell conditions.
MPL reported 1H19 earnings today and for the most part the results are ahead of consensus. Although, NPAT is flat on the same time last year at $232m
Dividend for the half is at 5.7 cents based on a 70% payout ratio. MPL is a stable low growth business that offers 4.5% forward dividend yield.
We sell value back at $2.50 – $2.60 range.
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