Tag: ASX:JHX

Our Algo Engine recently generated a buy signal in James Hardie Industries and the stock was added to the ASX50 model.

While the Australian housing cycle is turning, JHX continues to grow above market through a combination of plant efficiencies and new new products. 

We remain “long” JHX whilst the share price holds above the $21.50 price level.

JHX goes ex-div $0.30 on the 12th of December. Adding a November $24 call option will enhance the income by a further $0.60 per share.

James Hardie

Our ALGO engine triggered a buy signal on JHX into Monday’s ASX close at $22.45. The share price surged 4.5% to $23.50 yesterday and has pulled back into the $23.00 area in early trade today.

Tuesday’s sharp move higher was prompted by the release of their Q4 full-year results, which reflected a 12% increase in EBIT to USD397 million, as well as positive guidance for FY 2019.

We see scope for a move back into the April high levels just below $24.30 and suggest working a sell stop at or near the recent low of $22.20.

James Hardie goes ex-div $0.30 on the 6th of June.  Adding a $24 Dec call option generates an additional $0.92 per share income.

James Hardie

Our ALGO engine triggered a sell signal for JHX  on December 27th at 22.40

It took several sessions for this trade to develop as the share price traded up to 22.80 on January 9th.

However, JHX shares have dropped over 6% this week and posted a low of $21.32 in early trade today.

A sharp drop in US Housing starts overnight has added to the potential downside pressure on the share price.

Single family housing starts declined by 8.2% in December to 1.19 million units. This is the largest monthly decline in 2 years and could further soften the JHX share price.

We see the next level of support at $21.00 followed by the mid-November low of $20.55.

JHX shares are traded as a CFD contract on our SAXO Go trading platform.

Call us now for more information about JHX and other names available to trade on our SAXO Go Platform.

James Hardie

Our ALGO engine originally triggered  a sell signal for JHX on November 22nd at $21.50.

The chart below shows that an additional sell signal was generated at Friday’s close at $22.40.

JHX  has been grinding higher, on lower volume, with support from unexpectedly strong housing data out of the USA.

Over the last week, the US new home sales, building permits and existing home sales have all printed higher than consensus forecasts.

From a technical perspective, JHX is still following a “lower high” pattern based on the May 2nd high trade at $23.20.

With a current P/E of  30.00, the stock is on the expensive side of its industry peers and due for a material correction lower.

James Hardie

Our ALGO engine triggered a sell signal on JHX at $21.51 at yesterday’s ASX close.

Internal momentum indicators have been showing an “overbought” pattern since November 10th, which supports the ALGO Sell signal.

The fundamentals in the building materials sectors have been mixed, but we expect a softer tone overall going into the end of the year.

Our first downside target is at $20.40 with a bigger level of support near the November 6th low of $19.20.

James Hardie

On August 8th, our ALGO engine triggered a buy signal on JHX at $17.90.

At the ASX close last Thursday, the ALGO engine gave us a sell signal at $18.83.

Looking at the daily chart, the price action fits the “lower high” pattern based on the July 27th intra-day high of $19. 80. In addition, internal momentum indicators have now crossed into overbought territory.

Investors who took the August buy signal on JHX should look to exit the stock around the current $19.00 level.

 James Hardie

Shares of JHX have dropped over 3% in early trade as the building materials supplier announced Q1 profits fell 34% to $USD 57 million.

JHX reported that net sales for the three months to June 30 have grown 6% to $USD 507 million, compared to the same period last year.

However, it said earnings margins were under pressure from higher production costs and increased competition in the construction materials sector.

At 26x forward earnings with a 2.7% forward yield , we’ve been advising clients about the risks of the low dividend, high P/E posture of the stock since it traded in the $22.50 area in early May.

We now see the next downside target for JHX in the $17.60 area.

James Hardie