Computershare – Algo Engine Sell Signal

Posted on | by Leon Hinde

Computershare is under Algo Engine sell conditions and has been forming a lower high pattern since topping at $20.50, September last year.

We continue to view the market’s assessment of the future earnings growth picture, as miss-guided. The factors that have lead to the recovery in earnings are transitory and the 20X PE and 2.5% yield, makes CPU too rich for our liking.

Our downside price forecast over the next 12 – 18 months is $15.00.

 

China – is there value?

Posted on | by Leon Hinde

Following the approximate 10% sell-off within the various ETFs which provide exposure to Asia large cap and more specifically China, we now have a series of Algo Engine buy signals to consider.

The IZZ.AXW iShares China Large Cap and the IAA.AXW iShares Asia 50 are  two high quality considerations. If investors are seeking a tilt towards the faster growth tech sector, we suggest adding the Betashares Asia Technology Tigers to your watch list.

Lendlease – Takeover Speculation

Posted on | by Leon Hinde

Over the past 6 months, we’ve been promoting Lendlease as a high conviction buy-side idea, based on the long-term value the business offers.

The stock price has rallied 7% this month, following The Australian newspaper reporting Japanese group Mitsui may be considering a takeover and breakup of LLC. 

 

 

BHP – Algo Buy Signal

Posted on | by Leon Hinde

BHP Group is now under Algo Engine buy conditions following the retracement from $40 in April, back to $36 in today’s session.

Iron Ore prices remain elevated at US$93 per tone and the energy complex  looks well supported from global demand and geopolitical issues with Iran.

Investors seeking income should consider adding a BHP Sept call option and stripping out the dividend, plus the call option premium.

BHP goes ex-div $0.89 on the 6th of September.

To learn more about the derivative overlay on BHP, please call our office on 1300 614 002.