Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
CBA reported their 1H19 earnings today and the number was slightly below market consensus. The miss was attributable to greater-than-expected margin pressure in their home loan book and costs in insurance.
Revenue came in at $12.4bn and pre-provision cash earnings at 7.1bn.
CBA is under Algo Engine sell conditions. The only one of the 4 majors, currently displaying a buy signal and held in our ASX model portfolio is ANZ.
CBA goes ex-div on the 14th of Feb $2.01 which places the stock on a 5.9 yield.
CIMIC Group had been a holding in the ASX 100 model and was removed earlier this week. Our Algo Engine triggered the sell signal as price action developed into a lower high structure.
CIM reported FY18 NPAT up 11% to $780m which is marginally below consensus.
The earnings result is at the upper end of the $720–780m guidance, issued by the company last year. FY19 guidance now stands at $820mn or 6 – 8% growth.
CIMIC is trading on a forward yield of 3.7% and we consider the stock as fair value. For investors holding CIMIC, we recommend selling a $48 call option to enhance the income return.
James Hardie is a current holding within our ASX 100 model portfolio.
Today’s release of the 3QFY19 earnings were slightly below market consensus, however, the full year guidance for FY19 NPAT to be in the range of US$280-320m, supports a higher share price.
Off the back of the improved full year earnings outlook, James Hardie has rallied from $15 to $16.
Based on FY20 earnings, we have JHX trading on a 4.2% yield.
Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
Ansellis a current holding in our ASX 100 model portfolio and we continue to see value as a “buy-write” strategy.
ANN goes ex-div $0.26 on the 16th of Feb. We suggest adding a $24 strike May call option. This will generate an additional $0.70 per share of income.
ANN reports half year 2019 profit on the 18th of Feb.
Commonwealth Bank will release half year earnings on Wednesday.
The figures are likely to be overshadowed by today’s release of the final report from the Royal Commission.
Consensus estimates suggest CBA will deliver an adjusted net profit of $4.8bn, a slight decline from last year’s $4.9bn.
Our Algo Engine still has CBA under “sell conditions”.
IAG is under Algo Engine buy conditions and we see support building near $7.10.
The company will report half year earnings on the 6th of February. The market is looking for NPAT to be around $260mn.
We suggest buying IAG and selling an out of the money call option to enhance the return.
IAG goes ex-div 14 cents on the 20th of February.
At $22.50 Sonic Healthcare is looking like good value.
Whilst earnings growth is only in the 3 – 4 % range, owning it at the current price and selling out of the money call options makes sense.
SHL goes ex-dividend for 32 cents on the 6th of March.
When combined with the call option income, the strategy is generating 10% p/a cash flow.
Sonic Healthcare
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.