Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
Aurizon Holdings is under Algo Engine buy signals.
Aurizon reported underlying earnings before interest taxation depreciation and amortisation (EBITDA) of $1.48 billion and told investors to expect underlying EBITDA of between $1.42 billion-$1.5 billion in fiscal 2022.
James Hardie Industries is under Algo Engine sell conditions and we expect selling pressure to build with overhead resistance at $55.00.
National Australia Bank is under Algo Engine sell conditions and we expect selling pressure to build with overhead resistance at $29.00
China is now enforcing strict restrictions aiming to keep 2021 steel output in line with 2020 levels.
Iron Ore futures sank to as low as $US99.50 on the Singapore Exchange on Friday, to then close the week down a further -4.9% to $US101.95 a tonne.
Within the resource space, our preference remains BHP, WPL and NST as core holdings. OZ Minerals is the preference in base metals.
The OZR ETF provides a basket trade, weighted towards BHP, RIO, FMG NCM and WPL as the top 5 holdings.
On Wednesday we will receive guidance from the US Fed on monetary policy and the timing of the central bank plans to taper its $US120 billion in monthly bond purchases. Markets are expecting a scaling back of emergency pandemic-era monetary policy to begin in November or December.
S&P500 Q3 earnings need to deliver US$50 of average earnings per share to support the current valuations. Analysts are expecting Q2 to be the peak of the recovery for many companies and some tapering off in earnings is now likely.
We note the S&P500 index short-term indicators have rolled over and we would need to see a reversal and a rally back through 4485 to negate the current sell signal.
For our Members, please find below the list of our latest Model Portfolio changes.
Woodside Petroleum is under Algo Engine buy conditions and is a current holding in our ASX 100 model.
Woodside is expected to issue almost 1 billion new shares to pay for the acquisition of BHP’s petroleum business under the $41bn merger deal. BHP shareholders will receive shares in WPL and we may see some overhang of selling for the market to absorb, however, we view the deal as a vote of confidence in the new merged entity, given BHP’s decision to merge their energy assets rather than pursue a cash deal.
Reece is now under Algo Engine buy conditions.
The FY21 result highlighted strong sales trends in both Australia and
the US, however, costs in the US dampened the operating profit.
The market is looking for 10% EPS growth into FY22 and FY23 which places REH on 30X forward earnings and 1% dividend yield.
Update: 18/9
IPL:ASX is now under Algo Engine buy conditions and has been added to the ASX 100 model portfolio.
We expect to see a pick up in the second half earnings for IPL, which will help support the share price.
Update 18/9: IPL has since rallied 20%+
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.