GPT Strategy – Generates 10% cash flow

GPT reported 1H19 earnings which showed growth at 2% based on the same time last year.

Full-year guidance remains at +2.5% and DPS growth of +4.0%.

We consider GPT an attractive buy-write strategy where a combination of the dividend and the call option premium is generating 10% cash flow.

For more detail on the buy-write, please call our office on 1300 614 002.

 

 

GPT Group – Buy & Add Call Options

GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio. The share price is up 30% since being added back in October 2018.

The recent price retracement from $6.50 to $6.10 is temporary weakness following the rights issue this month. We suggest investors take advantage of the pullback in the share price and begin accumulating.

GPT goes ex-div $0.1285 on the 28th December 2019.

GPT – Take Profit

GPT strong share price movement now captures the adjusted low bond yield picture and  investors should take profit or sell covered calls.

Stock price is up 32% from the original signal low in October 2018.

Buy GPT & Sell Call Options

We recommend buying GPT and selling an out of the money call option to enhance the income return.

GPT goes ex div  $0.126 on the 28th June.

For more information on the option strategy, please call our office on 1300 614 002.

GPT – Algo Buy Signal

GPT is under current Algo Engine buy conditions and has been in the ASX 100 model portfolio since October last year.

The recent retracement from $6.32 back to $5.65 has triggered a new entry signal and we draw investors attention to the opportunity.

GPT is growing earnings at 5% per annum and trades on 4.8% dividend yield. Through adding a covered call option, we are able to boost the annualised cash flow to over 10%.

Buy within $5.50 to $5.75 range.

 

 

XJO – The 5941 Level Is Technical Resistance

The XJO has formed a “lower high” pattern within the existing Algo Engine buy signal structure.

The market has rallied 6% from the recent buy signal but we’re now mindful of the recent break of the “higher low” structure, as circled on the chart below.

5941 is resistance for the XJO and whilst the market remains below this level, some caution is required.

Names that remain supported within today’s broad market sell off include, AGL, CTX, GPT, WES, SCG, TCL, HSO & WOW. We remain cautious on the banks and select resource names .

XJO

GPT – Higher Low In Place

GPT has been a high conviction “yield sensitive” stock recommended in the Monday morning “Opportunities in Review” webinar.

As the stock nears our $5.25 target, we recommend investors look to sell the $5.25 covered calls and strip-out the income through the call option and upcoming dividend.

GPT

ALGO Sell Signal On GPT……3 Yield Names Go Ex-Div On Thursday

Our ALGO engine triggered a sell signal on GPT on June 21st at $5.36.

This “lower high” pattern is referenced to the high of $5.49 posted earlier this year on January 5th.

It’s worth noting that two other yield sensitive names, TCL and SYD also triggered ALGO sell signals last week. Furthermore, all three of these stocks will go ex-dividend on Thursday, June 28th.

As illustrated in the charts below, all three of these stocks have been in an uptrend since March.  We expect this pull back into their dividend should allow for better entry points for medium-term investors.

We see initial support for GPT at $4.70, with a stronger chart point at $4.50.

GPT

Transurban

Sydney Airport

GPT Rallies Into Wednesday’s AGM

Shares of GPT are up 1.5% in early trade in front of its AGM scheduled for Wednesday.

In the March quarter, GPT reported total shopping center comparable MAT growth of 2.1%, with 34,100 sqm of leasing space signed in the quarter and the acquisition of Sunshine Business Park in Melbourne for $74 million, with an initial yield of 6.1%.

The share price has hit $4.80 so far this morning and will see further resistance in the $5.00 area.

We consider GPT a solid “Buy/Write” strategy at current levels as the sold call option premium will enhance portfolio cash flow.

GPT will pay a 12.3 cent dividend on June 29th, which places its annual yield around 5.00%.

General Property Trust