Rio – Buy $84

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

We expect to see buying interest pick up near the current $84 price level.

Buy RIO within the price range indicated on the chart below.

OZ Minerals – Algo Buy Signal

OZ Minerals is on our radar following the price retracement back to $8.60.

We expect buying support to build and the short-term indicators to turn positive.

1H19 EBITDA of $163m and NPAT of $44m were broadly in line with consensus and the interim dividend was 8c.  Forward yield is 4.5%. 

Accumulate OZL.

Fortescue – FY19 Earnings Result

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

The FY19 earnings result was solid with underlying EBITDA US$6b, the strong result helped to drive down net debt to US$2.1b which reflects a gearing ratio of 16%.

A final dividend of A$0.24 was declared, lifting the full-year payment to
A$1.14, translating to a yield of 16%.

Volatility in spot iron-ore prices continues to be a key driver of the share price.  Iron ore futures are now trading at their lowest price in more than six months.

Note: RIO at $83 is now on our watchlists and we suggest tracking the short-term indicators for a reversal higher.

FMG

RIO

Coles – Defensive Income

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

The share price has rallied 6% over the past week and we now recommend selling covered call options to enhance the income return.

COL goes ex-div $0.24 on the 28th of August.

Northern Star – Buy

Northern Star Resources is under Algo Engine buy conditions and a current holding in the ASX 100 model portfolio.

The stock has recently retraced from $14.00 back down to $11.50.  We expect to see buying support increase for Northern Star and other gold produces.

Also, review EVN & GOR.

Long-term graph of the gold price.