Tag: ASX:AGL

Shares of  AGL have lost more than 6% over the last two sessions after a mixed full-year report was released on Thursday.

The top line data was impressive as the energy generator announced net profits surged to $1.6 billion, which is almost three times higher than the previous year’s profit of $539 million.

However, a large part of the increase in profits came from a $562 million gain on electricity derivative contracts, a segment of their business which lost over $250 million in 2017.

Along these lines, AGL indicated that based on a fall in the forward price curve, it expects wholesale prices (and their margins) to decline into 2019.

On balance, while the overall full-year NPAT beat most estimates, the downbeat forward guidance has weighed heavily on the stock price and points to lower levels over the short-term

The next key technical support level is in the $19.50 area, which would represent a 2-year low.

AGL

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

Our Algo Engine triggered a recent buy signal in AGL and, with the stock price finding support at $20.50, we recommend investors add long exposure.

Our upside price target is $23.00.

AGL goes ex-div $0.54 on the 23rd August.

AGL

AGL shares are oversold and investors should buy the stock and look for a recovery into the $23.50 range.

Selling covered call options into May or June will help to enhance the yield, whilst waiting for the next $0.50 forecast divided payment in August.

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.

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

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

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.