Cleanaway Waste Management remains under Algo Engine sell conditions but we feel a buy-side opportunity is approaching. Cleanaway provides a solid growth outlook in a defensive sector.
Watch for a switch to buy conditions near $1.85 or a move higher in the short-term indicators.
CWY was on our high conviction list and the stock has jumped over 10% today following the 1H19 earnings announcement.
The result was ahead of market consensus with underlying net profit after tax of $67m. Revenue growth was up 9% on the same time last year.
The company lifted net profit after tax by 35% for the first half FY19 on the back of organic growth and the acquisition of rival Tox Free.
Based on FY19 earnings we have CWY trading on a 1.8% dividend yield.
CWY was recently added into our ASX Top 100 model portfolio.
We covered this name in the recent Opportunities in Review webinar on Monday and identified $1.70 as a price target to begin accumulating the stock.
Call our office at 1300 614 002 if you would like a replay of the webinar emailed to you.
Cleanaway Waste management
It’s always interesting to look at the index re-balancing and think about the names that have been removed or added in the index rankings.
QBE has a negative price structure and an Algo Engine sell signal.
S32 has an Algo Engine buy signal and is a core holding in our ASX Top 50 model Portfolio. As of March 19th, S32 will now move into the ASX Top 20 model.
We suggest readers look at the charts of the two new additions to the ASX100 index, CWY and XRO.
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.