Keep Transurban On Your Radar

Posted on | by Todd

Shares of TCL have dropped about 10% over the last month since announcing a $4.8 billion capital raising related to the WestConnex project.

The share price suggested has been $10.80, which is just 10 cents below last Thursday’s intra-day low.

From a broader perspective, we believe the 25.5% ownership of the WestConnex project will underscore TCL’s status as Australia’s dominate toll road operator, support future cash flow and secure their dividend growth.

We don’t currently have an ALGO buy signal for TCL, but would not be surprised to see one soon.

Our medium-term target for TCL is in the $13.00 area.

Transurban

 

ALGO Buy Signal For Lend Lease

Posted on | by Todd

Our ALGO engine triggered a buy signal for LLC into Friday’s ASX close at $18.70.

This “higher low” pattern is referenced to the intraday low of $17.25 posted on April 27th.

Since reaching an all-time high of $21.70 on August 7th, the share price has dropped over 14% and traded to a 5-month low on Friday.

We believe the company is well positioned in the infrastructure construction space and its international expansion will diversify the risk of a slowdown in the domestic residential market.

At current levels, we calculate LLC is trading at about 13X FY 19 earnings and expect the stock will find investor interest above the $18.00 support area.

Lend Lease

 

AGM Reflects Headwinds For Bank of Queensland

Posted on | by Todd

Our ALGO engine has shown a sell signal for BOQ since August 31st at $11.50.

The share price got a boost at yesterday’s AGM trading up to $11.35 just after the FY18 NPAT data was released.

However, as the trading day progressed, the lower margins on the current loan book combined with large software write offs pressured the share price back below $11.00.

We still prefer the short side of BOQ with a downside target of $9.60.

Bank Of Queensland

OZL and Origin Removed From The Model Portfolio

Posted on | by Todd

Over the last 24 hours, our ALGO engine has triggered sell signals for both Oz Minerals and Origin Energy. 

Both OZL and ORG have been longstanding components in our ASX model portfolio.

As illustrated in the summary below, ORG returned a respectable 30.93% over the 584 day holding period and OZL returned a whopping 144.21% gain, including dividends, since July of 2015.

Both of these names have been popular with investors and we’ll update with current ALGO signals in the near-term.

Oz Minerals

Origin Energy

53.12% Return On Iluka Resources

Posted on | by Todd

Our ALGO engine triggered a sell signal for Iluka Resources into yesterday’s ASX close at $10.14.

ILU was added to our ASX model portfolio on February 7th, 2017 at $7.07

As illustrated in the chart below, ILU remained in the model, with several additional buy signals, as the stock maintained a pattern of “higher lows” over the 603 day holding period.

Further, investors who held ILU through the duration of the buy signal would have picked up 53.12% on their investment.

This 53.12% return is broken down into a 47.17% gain on the share price combined with 41 cents of dividends per share.

We will keep LIU on the radar and update subscribers and clients with future ALGO signals on the stock.

Iluka Resources

 

ALGO Buy Signal For Suncorp

Posted on | by Todd

Our ALGO engine triggered a buy signal for Suncorp into yesterday’s ASX close at $14.20.

This “higher low” pattern is referenced to the intra-day low posted on June 14th at $13.70.

Shares of SUN have dropped over 10% during the last month as the potential for fines and increased regulations from the Royal Commission have weighed on both banking and insurance stocks.

However, the technical picture is beginning to look oversold. As such, we consider SUN a buy/write opportunity near the key support level of $13.60.

Suncorp

 

 

 

 

ALGO Update: A Buy/Write Strategy For Cimic

Posted on | by Todd

Our ALGO engine has been long CIM since June 1st at $40.00.

Since then the share price has risen over 25% and traded at a 10-month high of $51.64 last week.

In addition to posting better-then-expected profit results back in July, CIM has also secured several mining services agreements including a recent $420 million contract extension with Antofagasta Minerals in Chile.

On balance, we see the stock trading in a high-level consolidation pattern over the medium-term.

As such, we consider CIM a buy/write candidate with reasonable upside potential and increased cash flow from the sold call options.

Cimic

ALGO Update: Stay Long Aristocrat Leisure

Posted on | by Todd

Our ALGO engine reflected a buy signal for ALL on September 14th at $28.90.

The share price is near the same level in early trade today.

However, with the recent acquisitions of Big Fish Games and Plarium, we expect to see an increase in the company’s USD-based earnings as it grows its position within the online gaming sector.

Almost 60% of ALL’s earnings are generated in the USA and the company is projected to grow earnings by 19% to $1.40 per share during 2019.

ALL is one of several ASX listed companies that will benefit from a progressively lower Aussie Dollar.

Technically, we see solid support in the $27.90 area and an initial upside target of $31.25.

Aristocrat Leisure

 

 

 

 

ALGO Update: Upward Bias For Sydney Airport

Posted on | by Todd

Our ALGO engine has been long SYD since July 12th from $7.05.

After a brief rally to $7.60 in late August, the share price is just below $7.00.

SYD reported solid passenger growth in August with a 5.1% increase in travellers year to date.

For H1 2018, SYD spent $180 million on capital upgrades aimed at increasing capacity including landing strip and terminal expansions.

We see good technical support in the $6.70 area with an upside target of $7.80 over the medium-term.

Sydney Airport

 

 

Investor Interest Is Returning To Ansell

Posted on | by Todd

Our ALGO engine triggered a buy signal for ANN on August 27th at $25.06.

Since then the stock has range traded between $24.30 and $25.80.

Based on their recent disclosures, ANN has a healthy balance sheet, is planning to maintain earnings growth through acquisitions and has outlined plans for a USD600 million share buyback scheme.

We expect to get more clarity on these actions at their AGM on October 18th.

Technically, there is a price gap above the current market from $26.80. We believe this is a realistic price target in the lead up to the AGM.

Annsell