REA Group – FY21 Earnings

Posted on | by Leon Hinde

REA Group is under Aglo Engine buy conditions and among the best-performing stocks in our ASX model portfolio. REA was added to the ASX 100 model in September last year at $107.80 and is up 48.40%, (including dividends), to $159.42.

FY21 Revenue increased 13% to $927m and EBITDA increased 19% to $564m. Net Profit After Tax (NPAT) saw a similar lift of 18% to $318m.

The div increases to $0.72 per share and the ex-dividend date is 26 August.

We recommend buying the dip in REA, so please watch for the next Algo Engine buy signal. Long-term earnings growth will be underpinned by the recent acquisition of mortgage broker, Mortgage Choice.

CIMIC – Buy Call Options

Posted on | by Leon Hinde

CIM:ASX is likely to see improved earnings in FY22 and we expect to soon see a recovery in the share price.

CIMIC is a high-risk counter trend investment with the prospect of a multi-year recovery, once earnings hit an inflection point.

Buy Dec $20 call options as a stock replacement strategy. For more detail, please call 1300 614 002.

Iron Ore Down 20%

Posted on | by Leon Hinde

Iron Ore prices are now down 20% from the May peak of US$230 p/t, with the overnight close at US$180 p/t.

We expect buying support to build within the US$150 – US$180 price range. This will provide an entry-level to add to BHP and FMG.

Watch for RIO to soon shift to Algo Engine buy signals.