SPDR Global Dividend Fund
SPDR S&P GLOBAL DIVIDEND is under Algo Engine buy conditions and is a current holding in our ASX “All ETF Model”.
We see value near $15
Treasury Wines – Earnings
Treasury Wine Estates remains under Algo Engine sell conditions.
FY20 EBIT guidance of $530-540 million is below consensus. The outlook for FY21 earnings has deteriorated, which is likely to weigh on the share price.
Northern Star – Production Update
Northern Star Resources provided 4QFY20 trading update with production at 267 k/oz and sales 263 k/oz. Kalgoorlie and Jundee offset weaker results at Super Pit.
NST will resume dividend payments and the balance sheet improves following the paydown of $200m of debt.
FY21 dividend yield increases to 2% with forecast EBIT of $1.2bn
We have a price target on NST of $15.50
Alumina – ATO Dispute
Alumina has run into issues with the Australian Tax Office following a review of transfer pricing arrangements with the AWAC JV.
The claim relates to a 20 year period and the ATO is claiming an additional tax of $200M plus interest. Other penalties may also be due and will be further communicated to the JV next month.
We forecast FY21 EBIT to increase to $350m, supporting a forward yield of 6%.
TPG – Buy
TPG Telecom is again on our radar as the price trades near $8.00. We see value emerging and investors can now look to accumulate the stock.
Ramsay Health Care – Buy
Ramsay Health Care is faced with flat earnings in 2020 and only moderate growth FY21. For patient long-term investors, there’s an income opportunity with defensive low levels of growth.
We see buying support increasing near the $63 level.
Brambles – Buy
Brambles is now under Algo Engine buy conditions and has been added into our ASX 20, 50 & 100 model portfolios.
We see price support building near the $10.75 level.
Orica – Buy
Orica is under Algo Engine buy conditions and we see buying support increasing from the recent higher low formed at $15.
REA – Profit Taking
REA Group is under Algo Engine sell conditions. We expect selling pressure to increase at $109.
SEEK
Seek is under Algo Engine sell conditions and we see selling pressure increasing near the $22.50 level.
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