Scentre Group – Buy to generate 10% cash flow

Scentre Group announced an on-market buy-back of outstanding shares, the Company intends to complete the buyback within 12 months. The buy-back will add incremental support to our suggested buy-write strategy.

We recommend buying Scentre and selling covered call options. The stock goes ex-div $0.11 on the 14th of August.

Selling a Sept out of the money call will generate an additional $0.12 per share of income.

Amcor – Take Profit

Amcor strong share price movement suggests investors are
pricing in an earnings upgrade, but we think a significant EPS upgrade
is unlikely and investors should now take profit or sell covered calls.

Stock price is up 5% from the recent signal low.

 

 

GPT – Take Profit

GPT strong share price movement now captures the adjusted low bond yield picture and  investors should take profit or sell covered calls.

Stock price is up 32% from the original signal low in October 2018.

Crown – Now on $11.80 Support

Crown Resorts is under Algo Engine buy conditions and we’ve been highlighting the price gap in the charts back to $11.80.

Construction disruption at Star Sydney and weaker trends within VIP gaming resulted in an earnings downgrade to SGR. We don’t expect the slowdown to be as severe for Crown.

Buy CWN at $11.80

 

Amcor – Valuation Review

Amcor is now under Algo Engine buy conditions, following the higher low formation at $15.75.

Looking out to FY20 we have Amcor generating a combined revenue of $13.5bn, EBIT $1.65bn, delivering 8% EPS growth and trading on a 4.4% yield.

We see value at $15, however, with the defensive nature of the Amcor business, buying interest is likely to build closer to $15.50.