Crown Resorts is under Algo Engine buy conditions and is a current holding in the ASX 100 model portfolio.
We see technical price support at $11.50 to $11.80. We suggest buying the stock for the upcoming dividend on the 20th of March and adding a Euro call option to boost the cash flow return.
For more detail on this strategy, please call our office on 1300 614 002.
Crown Resorts & Star Entertainment report earnings on the 20th and 21st of February, (respectively).
Both companies’ share price have been under pressure over the past 6 months, which has been a surprise given the strength in VIP gaming revenue that was evident in the last reports.
We feel again, the market has been too negative coming into the upcoming earnings. We expect to see positive upside surprises, relative to current market expectations.
Crown is under Algo Engine buy conditions, therefore, we recommend buying the stock.
SGR is under sell conditions, however, we feel the stock is oversold and suggest buying call options. Buying call options gives you limited risk on the downside and unlimited gains on the upside.
To discuss this strategy, please call our office on 1300 614 002.
Crown
Star
Crown is a current holding within the ASX100 model portfolio.
The share price was oversold at $11.50 and we’re now starting to see buying interest build.
Also, consider SGR with stop loss below recent pivot low.
Crown Resorts is a current holding within our ASX100 model portfolio.
Following the recent sell-off on the back of global concerns about slower VIP growth, the stock has retraced from $14.50 to $11.75, which forms a “double bottom” pattern dating back to October 2017.
At $11.75 we believe Crown offers value and investors should look to accumulate the stock for a move higher.
We recommend accumulating Crown Resorts near the $11.75 price range
CWN offers investors an attractive return with a partially franked dividend yield of 4.9% and is trading at 20x FY19’s estimated earnings.
Crown
After testing a 12-month low at $11.90 in early trade, shares of Crown provide an opportunistic entry level for both investors and traders. The share price has been washing out following last week’s average earnings result.
With the share price sliding over 20% lower since mid-August, we believe we’re now looking at an inflection point with new buying demand ready to build.
Shares of Amcor are poised to rally as the Bemis takeover deal is finalised.
Hedge funds who are short Amcor & long Bemis will begin unwinding the trade, which will add to the AMC buy-side demand.
We recommend accumulating Amcor at current levels.
In the local entertainment sector, Crown faced heavy selling last week following soft earnings numbers. With the stock now trading at $12.00, we believe value is now being presented.
Crown
Crown’s trading update was weaker than expected as main gaming floor revenue was down 0.6%.
Non-gaming revenue growth was 3.5%, while VIP turnover growth was up 13%.
Star Entertainment showed domestic revenue growth of +6.7% but VIP growth disappointed with it coming in flat on the prior period.
Crown looks like good “value” at $12 and is supported by a current ALGO Engine buy signal.
Aristocrat (ALL:ASX) is also looking well supported near the $26 range.
At $27.00, ALL is at about 17.5X estimated FY 2019 earnings.
In addition, given ALL’s exposure in the USA, a further fall in the AUD/USD will act as a tailwind for earnings going into next year.
ALL is part of our ASX Top 50 Model portfolio and we have an upside target of $40.50 over the medium-term.
The share price of CWN dipped to a 10-month low of $12.25 on Monday.
At the current level of $12.60, the stock is trading at less than 20X FY 2019 earnings for a partially franked yield of 4.5%.
Crown is included in our ASX Top 100 Model Portfolio.
Our near-term price target is just over $14.20, with a longer-term view to $15.75
Shares of Crown Resorts have found solid support in the $12.80 to $13.00 area over the last several trading sessions.
With consistent casino and non-casino earnings from their Perth and Melbourne properties, investors are warming up to the potential benefits from CWN’s $2.2 billion project in Sydney; even if it’s 18 months from completion.
At current levels, the stock is trading at 21X FY 2019 earnings for a partially franked yield of 4.5%.
Crown is included in our ASX Top 100 Model Portfolio.
Our near-term price target is just over $14.20, with a longer-term view to $15.75
Crown Resorts
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
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