ASX – Trading Volumes

Posted on | by Leon Hinde

ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

July trading volumes show cash market: 32.5m, (lower than the 12-month average of 38.4m) and total value traded in July rose to $140.5bn, (July 2019’s $126.8bn).

Derivatives total of 8.6m contracts, down 22% on a year ago and much lower than the past 12-month average.

Volumes are expected to remain below the elevated levels of the past few months.

ASX is a quality business and we look to add to the position at lower price levels.

Resmed – Q4 Earnings

Posted on | by Leon Hinde

ResMed is under Algo Engine buy conditions and is a current holding in our ASX top 100 model portfolio.

RMD announced 4Q20 earnings, which were better-than-expected, underpinned by robust COVID-19 ventilator demand. However, modest revenue growth is expected in the near-term, implying limited near-term growth.

The 40x PE multiple looks too rich for the current earnings outlook. The forward dividend yield is 1%.

We suggest waiting for the next Algo buy signal to re-enter RMD on a pullback. Our new entry target is $22.

CIMIC – Buy

Posted on | by Leon Hinde

Cimic Group

The company is currently authorised to purchase up to 32,372,676
shares under the buy-back. The remaining shares that may still be
bought under the buy-back would be up to 25,659,911.

Support at $20 is now building and the short-term indicators have turned positive.

AbbVie – Buy Signal

Posted on | by Leon Hinde

AbbVie is now under Algo Engine buy conditions. We’re looking for buying support to build within the $85 – $95 range.

AbbVie reported Second-Quarter 2020 earnings with worldwide net revenues $10bn, an increase of 26% on a reported basis, or a decrease of 5% on a comparable operational basis, due to the COVID-19 pandemic.

AbbVie announced it completed its acquisition of Allergan, which was acquired on the 8th May, 2020.

S&P Biotech ETF

Posted on | by Leon Hinde

ETFS S&P Biotech is now under Algo Engine buy conditions.

CURE ETF offers investors exposure to US biotechnology companies. These are companies engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Examples include the development of immunotherapy treatments and vaccines to treat human diseases.

CURE aims to provide investors with a return that, (before fees and expenses), tracks the performance of the S&P Biotechnology Select Industry Index. CURE uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index. It is equal-weighted, meaning each holding makes up the same portion of the portfolio and therefore, contributes equally to the overall performance.