ResMed – Opportunity Approaches

Posted on | by Leon Hinde

ResMed is a current holding in our ASX 100 model portfolio.

The company reports 1Q20 earnings on 25 October and we expect revenue growth to be 15%+ and EBIT to be up 10%+ on the same time last year.

We look for an entry-level into RMD on the current price weakness and will update our readers further, following the earnings result.

 

 

Medibank – Algo Buy Signal

Posted on | by Leon Hinde

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

At 19x forward earnings and 2 – 4% earnings growth, Medibank is a strong candidate for a covered call overlay to enhance the investment returns.

The stock trades on a forward yield of 3% and when adding a covered call, we can boost the cash flow to 10% on an annualized basis.

Buy MPL at $3.25 and look for a move higher to $3.50 before selling call options.

For more information on this strategy, please call our office on 1300 614 002.

 

 

BHP – Algo Buy Signal

Posted on | by Leon Hinde

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

The company reported Q1 production that was below analyst forecasts. The impact was most significant in copper where production was down 9%. Iron production was down 2% and thermal coal was also lower.

Despite the soft quarter, BHP reiterated its full-year production guidance.

Based on FY20 revenue of $43bn, EBITDA $25bn, net income $11bn, we have BHP trading 15x forward earnings and 4.5% yield.

Accumulate BHP within the $30 – $34.50 price range.

 

 

 

Resmed – Buy

Posted on | by Leon Hinde

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

RMD report earnings on the 24th Oct and the market is looking for 10%+ in EPS growth. We expect buying support to increase ahead of the result and see support building at $19.50.

 

 

A2 Milk – Buy the Dip

Posted on | by Leon Hinde

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.