Amcor – Opportunity Approaching

Posted on | by Leon Hinde

Amcor will begin the integration process of the Bemis acquisition and work through the synergy cost savings, which are targeted to deliver US$180mn in savings.

The euphoria of the “search for yield” in the market, (especially in the last few months following US yields trading lower), has seen Amcor’s share price trade at a premium to global peers. We like the long-term prospects of the company and feel AMC’s relatively defensive earnings profile will remain attractive in uncertain markets.

We suggest adding this one to your watch list and we’ll highlight on the blog when the stock switches from sell to buy conditions.

Our target is to buy AMC closer to $15.00

 

 

Iluka Resources & World Bank

Posted on | by Leon Hinde

ASK:ILU announced it has finalised a deal with the IFC, (part of the World Bank) whereby, the IFC will invest US$60m to take a 10% stake in the Sierra Leone assets.

We find this news interesting in the context of the Rare Earth Elements, (REE) and the potential implications of China restricting US access.

 

Buy GPT – 10% cash flow

Posted on | by Leon Hinde

We recommend buying GPT and selling an out of the money call option to enhance the income return.

GPT goes ex div  $0.126 on the 28th June.

For more information on the option strategy, please call our office on 1300 614 002.

NASDAQ – Important Analysis

Posted on | by Leon Hinde

Following a 10% correction from the April peak, the NASDAQ is now under Algo Engine buy conditions. This is the first of the major indices to switch from sell to buy.

XJO, S&P500 & Dow Jones Index all remain under Algo Engine sell conditions. The conclusion we draw from this is, the bounce in technology may be short lived.

 

Boral – Valuation Review

Posted on | by Leon Hinde

Boral shares offer further upside as they recover from oversold conditions.

Based on FY20 earnings we assume Boral will generate $6bn in revenue and grow net earnings by 8% to $570mn. This places Boral on a low PE multiple of 10x earnings.

We have the stock now trading on a 5.5% dividend yield.

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