Tag: ASX:QAN

QAN has enjoyed strong share price performance since the release of its
1H17 results on 23 Feb 17. This has been partly supported by by the share buy-back program which at the current rates will end in the next week or two.

FY18 revenue is forecast to be $16b, EBIT flat at 1.6b, EPS $0.56 and DPS $0.26, placing the stock on a forward yield of 6%.

We’ll watch for the next Algo Engine buy signal on the structural higher low formation.

QANTAS announced first-half net profits fell to $515 million from $688 million during the same period last year.

A restructuring cost of $137 million was largely responsible for the profit miss, but the company also pointed to increased competition on international routes as a source of profit stress.

Underlying profit before tax fell 7.5% to $852 million for the six months to December 31st, which was higher than the company’s guidance range of $800 to $850 million.

That compares to the record profit of $921 million announced over the same period last year. Company officials didn’t provide any profit guidance for the 2016/17 period.

Qantas declared an interim dividend of 7 cents per shares (50% franked)

We’re watching Qantas on the short side. Resistance at $3.60 is likely to cap any rally and momentum will remain weak whilst oil prices trade higher following the OPEC cuts.

Qantas (QAN.ASX) short was flagged on the blog post dated 25/08/2016, when QAN was trading at $3.58. The stock is now trading $3.11. Time to cover the shorts, buy back and lock in the profit.

Interesting and worth noting, Qantas has traded lower in the face of a company share buy-back program being announced, record profit, increased dividend and oil prices trading lower. On reflection of these matters, (that should have normally helped the Qantas share price), one could draw the view, that this could be a short worth revisiting on the next bounce or rally higher.

Our algorithm engines will continue to track for future short side signals.

Qantas (QAN.ASX) short is now approaching our buy back price target of $3.20.  Price has now corrected 10%+ in 5 days.