Computershare – Algo Sell Signal 

Computershare is under Algo Engine sell conditions and has been forming a series of lower high patterns since topping at $20.50 in September last year.

We continue to view the market’s assessment of the future earnings growth picture, as misguided. The factors that have lead to the recovery in earnings are transitory and the 20X PE and 2.5% yield, makes CPU too rich for our liking.

Short CPU $16.00

GPT – Algo Buy Signal

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

We see upside in GPT to $6.50, 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.

A2 Milk – Buy the Dip

The A2 Milk Company is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

2H19 earnings growth was 39% and FY19 revenue was up 40%. The market was disappointed in the FY20 guidance and consensus earnings growth expectations have come down to 20%.

We look to accumulate  A2M near the $12.50 price level.