Dexus – Buy Signal

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

The short-term momentum indicators have turned positive and we see buying support increasing within the $11.50 – $12.00 price range.

Domino’s – “High Conviction” Sell

Domino’s Pizza Enterprises is under Algo Engine sell conditions and is a current “high conviction” short.

A combination of underperforming international stores and an eroding position within technological leadership across fast food means we struggle with the 30x PE multiple and low 2.5% yield.

Within 2 – 5 years we forecast the business trades at 14x earnings and 4% yield, meaning the fair value is closer to $20, not the current price of $52.

 

 

 

 

IPL – Opportunity Approaches

Incitec Pivot was triggered as an Algo Engine buy signal on Thursday 21st November. With an improving outlook for earnings in FY20 & 21 we’re willing to take a closer look at the upside potential.

The short-term technical indicators are about to turn positive and we’re likely to see buying interest pick-up near the $3.20 support level.

We’ll revisit this opportunity as the entry conditions playout next week.