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BHP – Algo Buy Signal

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.

 

 

 

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GDX – Gold ETF

Vaneck Vectors Gold Miners  is under Algo Engine buy conditions following the entry condition earlier this year at $30. It is a current holding in our ALL ASX ETF model portfolio.

GDX ETF has corrected from $45 to $40 over the past 8 weeks. We feel buying support will now begin to increase.

Individual names are also now appearing on the radar, such as Newcrest Mining Northern Star Resources, Evolution Mining, OceanaGold and Gold Road Resources.

 

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Resmed – Buy

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.

 

 

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Amcor – High Conviction Buy

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

The FY19 result was slightly below expectations. The key highlight was the announcement of the US$500m on-market buyback.

A combination of cost synergies post the Bemis acquisition and the share buyback will help underpin near-term earnings.

Buy $13.85

 

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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.