ALGO Update: AGL Continues To Drift Lower

Our ALGO engine triggered a sell signal for AGL on May 2nd at $22.50.

At the time, we suggested selling  $23.00 call options into September, so investors would receive increased cash flow as well as the 54 cent dividend on August 23rd.

Performance reports from both the Loy Yang A and Bayswater facilities have failed to generate strong buying interest and we remain neutral on the stock.

Daily charts suggest the next level of support for AGL is near $21.35.

AGL

Property Stocks Find Buying Interest

As the US yield curve flattens, which is caused by the long-end of the curve no longer increasing at the same rate as the shorter-end, we’ve started to see institutional money flow back into ASX listed yield sensitive names.

Our preference among these, within the property sector is GPT, SGP, and WFD, (based on valuation grounds).

Within Utilities and Infrastructure, we continue to like AGL, SYD and TCL.

 

 

Algo Update – Buy AGL

Our Algo Engine triggered a buy signal on the 23rd of August in AGL at $22.64.

Following this, AGL rallied to $26.50 before retracing back to the current higher low at $23.70.

AGL remains in our ASX50 model portfolio and a positive earnings result when the company updates the market on the 8th of February, should provide renewed buying support.

AGL pays a $0.41 dividend on the 23rd of February.

 

 

 

Buy AGL & Sell Call Options

Our Algo Engine triggered a buy signal in AGL on the 22nd August at $22.64.

Considering the recent “higher low” formation at $24.00, we recommend investors add AGL to their portfolios.

AGL is a current holding in the ASX 50 model portfolio and we’ve added a covered call option to enhance the yield.

AGL pays a 41 cent in dividend on the 23rd of February.

AGL

Buy Amcor & AGL

In an increasingly expensive market, finding low volatility investments at a discount can be difficult.

We consider the recent sell-off in AMC and AGL  represents a low risk entry level for a buy-write strategy.

AMC pays a 25.6 cent dividend on the 24th February and AGL pays  41 cents on the 23rd February.

We are then adding covered call options to enhance the yield and allowing for moderate capital growth.

The strategy is achieving 10 – 12% cash flow on an annualised basis.

 

 

 

 

Algo Update – AGL Targets $26.00

Our ALGO Engine triggered a recent buy signal in AGL at $23.38.

With the stock now making a further “higher low” formation at $24.50, we highlight the current price as a reasonable entry level.

AGL is likely to upgrade their dividend payout in 2018 & 2019 which will see the stock re-rate and trade into the $26.00 range.

AGL is a suitable buy-write for income portfolios and is a current holding in our ASX 50 model.

 

AGL

AGL Energy – Generating 10 – 12% cash flow

Our Algo Engine generated a buy signal in AGL on 23/8/17 at $22.64.

We continue to like AGL as an income trade in portfolios. Buying at these levels and selling a slightly out-of-the-money call option, (whilst keeping exposure to the $0.41 dividend paid on the 23rd February), generates 10 – 12% cash flow on an annualised basis.

 

 

Buy AGL – Generate 10 – 12% cash-flow

Our Algo Engine triggered a buy signal in AGL back in July at $23.00.

We see the current retracement from $26 back to $24 as another opportunity to add AGL to portfolios.

We hold AGL in our ASX 50 model and  we’re encouraged by the double-digit EPS growth outlook and the  5% dividend yield.

We’ve also added a covered call option to boost the cash-flow yield to 10 – 12% p/a.

AGL