Snap – Algo Buy

Posted on | by Leon Hinde

{SNAP.NYS} is under Algo Engine buy conditions. The correction in high PE technology and the negative impact to earnings from the change in Apple’s advertising privacy regulations have seen Snap correct from $80 down to $38. Even after the 50% correction, Snap remains on 80x PE.

Despite the still high PE ratio, Snap offers tremendous growth and we’re accumulating the stock within our defined range.

5/2 update:

Snap shares rocket as much as 62% on first-ever quarterly net profit.

Here are the key numbers:

  • Earnings per share: 22 cents, adjusted vs 10 cents expected, according to a Refinitiv survey of analysts
  • Revenue: $1.3 billion vs $1.2 billion, according to Refinitv
  • Global Daily Active Daily Users (DAUs): 319 million vs 316.9 million, according to StreetAccount
  • Average Revenue per User (ARPU): $4.06 vs $3.79, according to StreetAccount

CIMIC – Earnings

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.

Upcoming key dates
Full year financial results10 February 2022

CIMIC – Buy

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.

Bega – Buy

Posted on | by Leon Hinde

Bega recently provided a trading update, with FY22 underlying EBITDA expected to be in the range of
A$195-215mn.

Earnings have been impacted by supply chain-related disruptions, with some offset by the full-year contribution of the Lion Dairy & Drinks acquisition and related cost synergies. FY23 earnings should reaccelerate and recent shareholder support from Andrew Forrest suggests the current price range is a good opportunity to build a position.

2/2Update: