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.

 

NASDAQ – Key to Watch

The NASDAQ remains a key Index to watch as a reference for equity markets. Whilst the index trades below the mid-week high of 8050, investors should be cautious.

Move to an overweight position in defensive sectors such as healthcare, infrastructure and consumer staples. Also, focus on individual companies conducting large scale share buybacks.

Consider hedging using index futures or the inverse ETF BBOZ.

Going forward, track the close in the NASDAQ against the short-term momentum indicators as your hedging reference.