Market Analysis from the Investor Signals team.
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see a buy-side opportunity approaching following recent price retracement. Look for the short-term indicators to turn positive within the support range indicated on the chart below.
Betashares Global Cybersecurity is under Algo Engine buy conditions and is a current holding in our All ASX ETF model portfolio.
We see support building at $7.00 and expect 5 to 10% upside in the next 6 weeks.
InvoCare is under Algo Engine buy conditions and the short-term indicators are now turning positive.
We see buying support building near $13.50
FY20 EPS growth should be 6%+ and we have the stock on a forward yield of 3.2%.
Webjet is under Algo Engine buy conditions and see buying interest building, despite the impact of Thomas Cook going into compulsory liquidation.
FY20 revenue should increase by 20% to $440mn, EBIT 20%+ to $138mn and the effective dividend yield will move to 3%.
Buy Webjet $10 – $10.50 price range.
Transurban is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see upside in TCL to $15.25, 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.
Sydney is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see buying support building between $7.80 and $8.00. On a rally back to $8.50, investors should consider selling a European call option into early 2020 to enhance the income return.
SYD goes ex-div $0.19 on the 28th of December.
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.
Altium is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We recommend accumulating ALU at $32 following the recent price retracement.
Buy $32 – $33 price range
Magellan Financial Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
Following a sell-off that started in late July, MFG has now corrected 20% and we see buying support building near the $48 – $50 price level.
Insurance Australia Group is now showing an Algo Engine buy signal and remains a long term holding in our ASX 100 model portfolio.
We see value emerging and consider the $7.50 price range as support and expect buying interest to remain solid.
Look for a move higher into the $8.00+ range and then sell covered call options to enhance the income return.
For more detail on the option strategy, please call our office on 1300 614 002.
