Todd | Investor Signals

Amcor Is Pushing Back To The $14.00 Handle

Posted on May 28, 2018 | by Todd | Leave a Comment

Shares of AMC have opened over 1% higher at $13.90 as the stock continues to recover from the May 4th spike low near $13.10.

The technical picture improved last week with internal momentum indicators now pointing higher on the daily price charts.

We see the $13.70 level as good support with an upside target in the $14.40 to $14.50 area.

AMC has been in our ASX Top 50 portfolio since July of last year, and is a good candidate for a Buy/Write strategy into the 30 cent dividend on September 4th.

Amcor

Crude Oil Plunges 4% On Increased Production Plans

Posted on May 26, 2018 | by Todd | Leave a Comment

The price of West Texas Intermediate (WTI) crude oil dropped 4% overnight to $67.50 on the news that Saudi Arabia and Russia are discussing plans to raise production by over 1 million barrels per day.

Ahead of a key OPEC meeting in Vienna next month, the energy ministers of Russia and Saudi Arabia met in St. Petersburg yesterday to review the terms of a global oil supply pact that has been in place for 17 months.

For the week, WTI tumbled about 4.9%, its biggest loss since early February and a sharp reversal after six weeks of gains. Additional production from US drillers also added weight to WTI prices.

We would expect to see both OSH and WPL trade lower to start the week with key support levels at $7.80 and $31.50, respectfully.

Oil Search

Woodside Petroleum

Buy The Dip In Treasury Wine Estates.

Posted on May 25, 2018 | by Todd | Leave a Comment

Shares of TWE continue to rebound off of last week’s spike low of $15.65 and have reached $16.60 in early trade today.

The panic about a glut of Australian wine in China, combined with some minor licensing issues in the region appear to be overstated.

TWE officials have reassured shareholders that they are confident in their business model in China and the company will maintain positive earnings momentum globally.

Considering that TWE has been one of the best growth stocks on the ASX over the last 3 years, and traded as high as $20.20 just over a week ago, we suggest investors look to add to holdings at current levels.

Treasury Wine Estates

Foretescue Is Nearing The Buy Zone

Posted on May 25, 2018 | by Todd | Leave a Comment

Since posting a high of $5.03 on May 15th, shares of FMG have dropped almost 10%, reaching a low of $4.53 in early trade today.

Much of the weakness has been focused on the tepid demand for Iron Ore from China, as well as, the widening spread between the higher grade ore and the lower grades of ore.

However, as profit margins contract for Chinese steel mills, we will likely see this spread contract to the benefit of low grade producers like FMG.

FMG is the 3rd largest Iron Ore producer in the world and, as a low cost producer, is still profitable even in the lower grade market.

The company is scheduled to pay a 25 cent dividend on September 1st, which is 5.5% of the current share price on a stand alone basis.

Fortescue

ALGO Update: Stay Short Woodside Petroleum

Posted on May 24, 2018 | by Todd | Leave a Comment

Yesterday’s investor briefing failed to inspire any fresh buying in WPL as both the technical and fundamental indicators continue to deteriorate.

Analyst’s notes from the meeting highlighted the likelihood of cost over runs with the Scarborough project, as well as the prospect for lower crude oil prices.

Our ALGO engine triggered an initial sell signal at $34.00 on May 10th and again near $34.50 on May 18th.

We see the first area of support near the gap high at $33.10 and more significant support near the $31.50 area.

Shorting WPL has been a popular trade on our SAXO Go CFD platform.

For more information about trading opportunities with CFDs, call our office for an overview.

Woodside Petroleum

ALGO Buy Signal For Northern Star Resources

Posted on May 24, 2018 | by Todd | Leave a Comment

Our ALGO engine triggered a buy signal for NST into yesterday’s ASX close at $6.18.

This “higher low”pattern is referenced to the low of $5.60 posted on February 8th.

Their most recent quarterly report showed that cost of production was stable at $1075 per ounce, which still reflects a healthy operating margin.

Further, NST expects to lift annual production to 600,000 ounces by the end of the year. The company also reported $439 million in cash and no bank debt.

The daily charts show solid support at $6.00 with a medium-term upside target of $7.10.

Northern Star Resources

ALGO Buy Signal In OceanaGold

Posted on May 23, 2018 | by Todd | Leave a Comment

After posting a 2-year high at $1370 in early April, the price of Spot Gold has dropped over 6% and made an intra-day low of $1281 during Monday’s trade.

The yellow metal has now firmed into the $1295 area and looks set to trade back over $1300 over the near-term.

Our ALGO engine triggered a buy signal in OGC into yesterday’s ASX close at $3.32.

In addition to the recent slide in Spot Gold, shares of OGC have been pressured lower after its Q1 update showed that production and sales were both lower due to severely cold weather at its Haile Mine in the USA.

The daily charts show solid support in the $3.10 area and we see scope for a move back over $3.65 as the spot Gold price moves higher.

OceanaGold

ALGO Buy Signal For James Hardie

Posted on May 23, 2018 | by Todd | Leave a Comment

Our ALGO engine triggered a buy signal on JHX into Monday’s ASX close at $22.45. The share price surged 4.5% to $23.50 yesterday and has pulled back into the $23.00 area in early trade today.

Tuesday’s sharp move higher was prompted by the release of their Q4 full-year results, which reflected a 12% increase in EBIT to USD397 million, as well as positive guidance for FY 2019.

We see scope for a move back into the April high levels just below $24.30 and suggest working a sell stop at or near the recent low of $22.20.

James Hardie goes ex-div $0.30 on the 6th of June. Adding a $24 Dec call option generates an additional $0.92 per share income.

James Hardie

WFD Weakens Into This Week’s Shareholder Vote

Posted on May 22, 2018 | by Todd | Leave a Comment

Shares of WFD have slipped to a 1-month low of $8.84 in front of this week’s shareholder vote on the Unibail-Rodamco takeover bid.

At this point, there’s no sign of dissenting investor groups, and the boards of both companies have already approved what will be the biggest M&A deal in Australia.

Because of a lower valuation in the shares of Unibail, the $10.01 cash and script offer has been re-priced lower over the last two weeks.

Still, even modest estimations put the real market value in the $9.15 to $9.25 area, about 5% higher than current prices.

WFD was added to our ASX Top-20 Model portfolio on February 7th at $8.90. We prefer the long side of the stock from these levels with an upside target of $9.45 to $9.50.

Westfields

CSL Shares Firm On Stronger Guidance

Posted on May 21, 2018 | by Todd | Leave a Comment

Shares of CSL are 1% higher at $185.00 in early trade as the company announced stronger profit guidance for FY 2018.

The updated guidance has been lifted from the previous USD 1.55 to 1.6 billion range to a USD 1.68 to 1.710 billion target.

Better than expected sales of several of their cornerstone pharmaceutical brands have supported this profit upgrade.

Despite trading near all-time highs, recent research notes have raised their medium-term price target to $190.00.

CSL is the best performing stock in our ASX Top 20 portfolio. It was first placed in the model on January 5th, 2015 at $90.00 and has gained over 105% since then.

CSL Limited

Author: Todd