Recent Algo Signals in review

The following group of securities have  a high ranking within our screening process.

Buy signals include AMC, FMG, GNC, IPL, STO, CIM, JHX, BSL, MPL, TAH and CIM.

On the short side we are now tracking CGF and DMP.

 

STO

 

 

 

Buy And Hold Telstra

Since breaking down through the $3.00 mark on May 15th, shares of TLS have range traded between $2.70 and $2.90.

Much of the negative commentary about the Telco giant has revolved around its ability  to hold on to its 47% market share,  increase its profit margins via 5-G technology and maintain its dividend.

We feel that these questions will be answered in the affirmative during their business update call on June 20th.

At current prices, TLS has a dividend yield of 7.9% and a P/E ratio of 9.30, which we feel is good value for investors.

Telstra

 

Opportunities As WFD Exits The ASX Indexes

As the takeover of WFD by Unibail-Rodamco moves into its final stages, the ASX has decided which stocks will be added to their benchmark indexes.

In the ASX 20, WFD will be replaced by ORG: in the ASX 50 index, TAH will replace WFD: and in the ASX 200, ELD will fill in from the departing WFD.

Since many Super funds and managed equity firms have a mandate to hold a percentage of listed index shares, we see good value in these names once the takeover is completed.

We will update these shares with specific entry levels over the next few days.

Origin

TabCorp

Elders

 

 

ALGO Buy Signal For Santos

Our ALGO engine triggered a buy signal on STO into yesterday’s ASX close at $5.50.

The “higher low” pattern is referenced to the $4.80 low posted on March 15th.

The share price has dropped over 15% since the company rejected a $6.86 per share takeover offer from Harbour Energy last week.

Since then, there have been internal discussions about a higher takeover price, as well as whether the current management can use their strong balance sheet to increase earnings restore a fully-franked dividend.

Technically, we see solid support near the $5.30 area and initial upside resistance at $6.10

Santos

 

 

 

 

 

 

 

Gold Is back In The Buy Zone

After falling nearly $90.00 from the April high of $1369.00 to last week’s low of $1281.00, Spot Gold has recovered back over the key $1300.00 level.

With increasing levels of volatility in major stock indexes, as well as simmering geopolitical risks, we expect the price of gold to trend higher over the medium-term.

Some of the local gold names we prefer include NCM, SBM, SAR, NST and EVN.

For more information about trading opportunities in gold, give us a call on 1-300-614-002

Newcrest Mining

Santa Barbara

Saracens

Buy Medibank Private At Current Levels

Following the recent Algo Engine buy signal, we recommend investors add Medibank to their portfolio at $2.90.

On a move back towards $3.00,  look to sell the $3.10 Dec calls to enhance the income return.

Medibank goes ex div 6.75 cents on the 6th of September.

MPL

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ALGO Sell Signal For Sydney Airports

Our ALGO engine triggered a sell signal on SYD into yesterday’s ASX close at $7.37.

This “lower high” pattern is referenced to the intra-day high of $7.50 on December 19th.

The company expects to meet distribution guidance of 37.5 cents per share, which is up from 34.5 cents last year.

At $7.40, SYD shares are trading on a forward P/E of 44 X and are paying an annual dividend yield of 5%, which is un-franked. 

As such, we see a pull back in the shares price as corrective within a broader uptrend, and expect a buy signal around the $6.80 level.

Sydney Airports