has been one of our preferred local technology plays. Earnings guidance is ahead of consensus expectations with earnings on average down 5% on the same time last year. Carsales.Com
We expect a pickup in EPS into 2021 and return to 10%+ growth which supports a forward dividend yield of 2.7%
The stock is now under Algo Engine sell conditions which reflects the short-term overbought conditions. We look to buy CAR on the next pullback and a switch to algo buy signal.
is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio. Carsales.Com
We see value emerging and suggest buying at market and running a stop loss at $9.50.
is under Algo Engine buy conditions and we suggest members add the stock to their watch lists and look for support to develop within the $11.00 to $12:00 price range. Carsales.Com is under Algo Engine buy conditions and we see support building near the $15.50 price level. Carsales.Com
Buy CAR at $15.50
is under Algo Engine sell conditions following the lower high formation at $13.50. Carsales.Com
Earnings guidance provided by Carsales for FY19 are for EBITDA of $210mn and NPAT of A$131mn. Revenue guidance was a little weak, indicating full year profits are being supported by cost out initiatives.
We will review CAR on the price retracement & Algo Engine buy signal.
is under Algo Engine sell conditions and with the price approaching $14 we expect selling pressure to build. Carsales.Com
The chart below illustrates the range where selling is likely to increase.
We consider the 2019 recovery rally in the below names, as now largely complete.
The post below is from the 14th of November.
GARP is an acronym which is referenced to “growth at a reasonable price”. This is how we now view ALL, TWE, CAR and SEK.
CAR is one of the “GARP” (growth at a reasonable price), names that we’ve been tracking.
With the stock bouncing off the $11.00 price level, we suggest running a tight stop-loss below the recent “pivot low” and giving the upside momentum a chance to develop.
Within the back drop of market volatility, it is difficult to know how this trade plays out in the short-term. Therefore, we highlight the need to run a stop loss.
ALL & TWE as similar technical opportunities.
Our Algo Engine generated a buy signal in
Seek and we’re now watching the $17.50 support level as a pick up in buying interest begins to occur. CAR is another name to watch for increased buying activity following the recent sell-off.
TWE, SEK and CAR are all displaying current Algo Engine buy signals and are therefore a holdings within our ASX100 model portfolio.
We recommend accumulating
TWE stock within the $14.50 – $15.50 price range. ‘ Seek is another name where above average EPS growth is likely to be achieved in FY19 & FY20. We recommend accumulating the stock within the $17 – $18 price range. CAR delivered a disappointing earnings update earlier this month, however, with the stock price correcting 25%, we now see value emerging.