Webjet – Algo Buy Signal

Webjet is under Algo Engine buy conditions and see buying interest building, despite the impact of Thomas Cook going into compulsory liquidation.

FY20 revenue should increase by 20% to $440mn, EBIT 20%+ to $138mn and the effective dividend yield will move to 3%.

Buy Webjet $10 – $10.50 price range.

 

 

 

Transurban Group – Algo Buy Signal

Transurban is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see upside in TCL to $15.25, at which time investors should consider selling out-of-the-money call options to enhance the income return.

For more information on the derivative strategy, please call our office on 1300 614 002.

 

 

Sydney Airports – Buy Signal

Sydney is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see buying support building between $7.80 and $8.00. On a rally back to $8.50, investors should consider selling a European call option into early 2020 to enhance the income return.

SYD goes ex-div $0.19 on the 28th of December.

 

Medibank – Algo Buy Signal

Medibank Private is under Algo Engine buy conditions and is a current holding in our ASX 100 model.

At 19x forward earnings and 2 – 4% earnings growth, Medibank is a strong candidate for a covered call overlay to enhance the investment returns.

The stock trades on a forward yield of 3% and when adding a covered call, we can boost the cash flow to 10% on an annualized basis.

Buy MPL at $3.25 and look for a move higher to $3.50 before selling call options.

For more information on this strategy, please call our office on 1300 614 002.

 

 

Altium – Algo Buy Signal

Altium is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We recommend accumulating ALU at $32 following the recent price retracement.

Buy $32 – $33 price range