Seek – Ex-div 25th March

Posted on | by Leon Hinde

Seek is a current holding in our ASX 100 model portfolio. The stock goes ex-div $0.24 on the 25th of March and adding a covered call option will boost the annualized cash flow to 10%+.

Seek delivered recent earnings slightly ahead of market consensus and we consider the stock an attractive income contributor to client portfolios.

For more detail on the covered call strategy, please call our office on 1300 614 002.

 

 

CBA – Bank Review

Posted on | by Leon Hinde

CBA:ASX is under Algo Engine sell conditions, (as are all banks excluding Macquarie & ANZ), and we highlight the technical lower high pattern at $73.50.

CBA has announced they intend to suspend preparations for the demerger of wealth and mortgage broking business, with no time frame provided.  We feel this adds another layer of complexity with executing the business strategy to become a simpler, streamlined business.

CBA trades on 15x earnings and 5.8% dividend yield.

 

Suncorp – Weak Earnings Outlook

Posted on | by Leon Hinde

Suncorp Group is under Algo Engine sell conditions following  a lower high formation at $13.50.

We see reduced scope for Suncorp to reprice mortgages, given the
current political and regulatory climate, and we expect to see ongoing margin
pressure.

Stay on the short side and watch for the share price to trend lower with the 10 day average crossing below the 50 day average as a reference point.

 

Boeing – Sell Conditions For Now

Posted on | by Leon Hinde

Boeing is under Algo Engine sell conditions and with the current pressure on the share price, we expect to see a new higher low form. When the pattern is in place, we’ll  update you on the timing of the switch to buy conditions.

Investor Signals now operate US model portfolios for our clients and if you’d like to know more, please call our office on 1300 614 002.

Disclaimer: The table illustrates the simulated 5 year historical time weighted rate of return of applying our algorithm based investment model over the ASX100 & US S&P100 listed securities.

Housing Construction – Sell Signal

Posted on | by Leon Hinde

Boral, James Hardie Industries and CSR have rallied from oversold levels, as buyers have been attracted to the reduced PE multiples. The question is whether non-residential and engineering construction will offset the fall in residential construction volumes.

Australian housing approvals have been trending down for the past 6 months  with Jan approvals of 172k, down 30% on the same time last year.

BLD, JHX and CSR are now under Algo Engine sell conditions and we remain cautious given the broader market index back drop.

We consider Boral as the best recovery opportunity, but expect short-term sell pressure to persist.