Buy China Large Cap

IZZ, (iShares China Large Cap ETF) is a current holding in our ETF model portfolio and following the positive outcome to the US China trade talks at the G20, we expect to see IZZ continue to trade higher.

Support is at $55 and we see room for a material push higher.

 

 

CSL: Still A Blue Chip Stock

CSL is one of the best performing stocks within the ASX20, ASX50 and ASX100 model portfolios.

Since being added in May 2015 the share price is up 113% including dividends.

The recent retracement in the share price provides another opportunity for investors to add CSL to their portfolios.

CSL

 

Resmed Reports 1Q19 Growth Over 28%

RMD has rallied from $13.75 to $14.75 following last weeks reported strong 1Q19 result, which included EBIT +28% on the same time last year.

The company also delivered robust top-line growth, which came in ahead of market expectations. Gross margins held at 58+%.

We anticipate EPS growing from US$3.70 in FY19 to US$4.50 in FY21 and revenue growing from US$2.9 billion to US$3.5 billion over the same period.

 

Resmed

Asia 50 & China Large-Cap ETFs

We recommend investors add the IAA, (Asia top 50 ETF), and IZZ, (China Large-Cap ETF) to their watch lists.

There is a high probability that we’re now looking at oversold levels on both of these ETF’s and value is beginning to emerge.

IZZ China ETF

ANZ, NAB & Bank ETF Continue To Probe Lower

ANZ is expected to report its FY18 result on 31 October.

The share price has now broken the June low support area and looks vulnerable to more downside pressure.

NAB is scheduled to report its FY18 result on the 1st of November. The next downside target is near the $24.00 area.

Vaneck Vestors Australian Bank ETF has been under ALGO Engine sell conditions since early July. The sell-off so far represents a 20% correction.

 

ETF Watch – Cyber Security

Betashares ETF, HACK provides diversified exposure to the global leading cyber security companies.

We covered this name in the recent “Opportunities in Review” webinar and suggested adding it to  your watch list.

With the market sell-off, we’ve now seen HACK move into our forecast “value” range.

Investors with a medium term outlook can consider accumulating within the $6.00 – $6.50 range.

HACK

Newcrest Firms In Front Of Tomorrow’s Sales Data

Since posting an intraday low of $18.60 on September 6th, shares of NCM have risen over 10% and reached a 2-month high of $20.75 in early trade today.

A combination of firm Gold prices and investors’ interest in holding shares in hard assets has been bullish for the stock.

NCM will release its quarterly sales and revenue numbers tomorrow.

Recall that NCM shares rallied to $21.95 after the release of their Q4 production numbers showed a 15% increase in production to just under 635,000 ounces.

NCM was added to our ASX Top 50 portfolio in July at $20.05.

We suggest adding to long positions in NCM with an initial target of $21.50 followed by $22.40 over the medium-term.

Newcrest Mining

 

 

 

Domino’s – Setting Up For Disappointment

The market is looking for Domino’s to grow earnings in FY19 at 10%.

This translates into $1.80 EPS,  which will place the stock on a forward yield of 2.4%.

We believe the February result will miss consensus expectations and will act as a catalyst for downside selling pressure to build.

Dominos