Orica – Valuation Review

Posted on | by Leon Hinde

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

FY21 revenue is likely to remain flat at $5.8bn and EBIT is forecast to increase 3-5% to $630mn. This supports a forward yield of 2.8%.

Earnings are likely to be well supported due to higher volumes and the strength in the mining industry, especially from the gold mining market.

Earnings may surprise to the upside and we continue to hold ORI into the next earnings release.

Next Dc – FY20 Result

Posted on | by Leon Hinde

Nextdc FY20 revenue $200m, EBITDA $104m and EPS negative $0.12. Nil dividend.

Excluding depreciation and amortization add-backs, NXT operates at a loss. We continue to monitor the recent claim made by a fund manager, regarding the questionable accounting standards adopted by the company.

NXT is now guiding to FY21 revenue to be in the range of $240m – $250m.

Coles Buy+ Call Option

Posted on | by Leon Hinde

Coles Group is now under Algo Engine buy conditions following the sell-off from $19.30 down to $17.50.

We expect Coles share price to track sideways within the $17 – $19 price range and suggest investors consider overlaying a covered call option to enhance the cash flow return.

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