ASX – Buy “High Conviction”.

ASX is under Algo Engine buy conditions.

Higher levels of equities and futures trading, along with growing demand for its data services, have lifted ASX Limited’s earnings and revenue over the half year. Net profit 2H19 to December was up 1.8% to $250mn on revenue of $454mn, which was up 7%, EBIT rose 6% to $315.

We expect growth to remain in the 1  – 4% range and we see the stock as a “high conviction” buy on the dip during the current market sell-off.


APA – Buy

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

We see value at $11.00 and reaffirm our “accumulate” rating.

APA reported 1H20 financial results today and below is an extract from their investor presentation.

Silverlake Resources – Buy the Dip

ASX:SLR} has rallied 70% since we identified the Algo Engine buy signal back in September last year.

SLR 2H19 net profit rose to $44mn from $4mn the year prior. EPS of $5.35 was up from $0.78¢ and revenue rose to $258mn. 
Gold production almost doubled to 132,000 ounces during the 2H20 and FY20 sales guidance increased to 240,000 – 250,000 ounces.
Buy on a dip back the $1.50

BlueScope – Add to Watch List

BlueScope Steel is under Algo Engine buy conditions and we see the current selloff as a buying opportunity.

BSL reported net profit fell 70% to $186 million 2H19 from $624 million on the same time last year. Revenue dropped 8% to $5.8bn from $6.4bn.

EBIT fell 64% $302 million from the year-earlier $850 million.

The company indicated EBIT in the 1H20, had renewed caution because of the uncertain impact from coronavirus on its businesses and customers.

Value is likely to emerge near the $12.50 price level. We add this to our watchlist