Crown – Our Trade Rallies 25%+

Posted on | by Leon Hinde

The current weakness in the Crown share price could be a buying opportunity. It’s unlikely that the current COVID-related operational impacts are going to deter the interested parties who have put forward takeover offers.

Continue to track the CWN share price and wait for a cross above the 10-day average.

12/8 update: CWN is now trading above the 10 day average.

18/10 update: Crown recovery continues, buy with a stop loss below $8.75

1/11 update: The recent move back down to $10 is likely to find renewed buying interest. We remain long CWN shares.

22/11 update: Crown has now rallied 25%+ since the trade was opened. As anticipated, Blackstone has pitched a new offer at $12.50 a share in cash, up from its previous bid of $12.30 in May.

Paypal – Buy

Posted on | by Leon Hinde

PayPal Holdings, Inc. – Common is a current holding in our US model portfolio. The stock is up 10% since being added last year and the current sell-off provides another entry opportunity.

20/11 update: Paypal remains below the 10-day average and we encourage traders interested in US stocks to track the price action, as a powerful price reversal is likely.

Woodside – Algo Buy

Posted on | by Leon Hinde

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.

  • Woodside will acquire BHP’s oil and gas business in a proposed $41 billion merger deal
  • The merger will relieve pressure on Woodside whose existing assets are depleting

TWE – Buy

Posted on | by Leon Hinde

Treasury Wine Estates is under Algo Engine buy conditions.

TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.

FY22 EBIT growth is forecast to be in the mid to high single-digit range.

8/11 update: Buy above the $11.50 support range and place the stop loss below the recent pivot low of $11.48.

18/11 update: