Invocare – Add to Watchlist

InvoCare comes onto our watchlist following the 1H19 result which showed 10% revenue growth and NPAT up 9%.

The stock is nearing our entry-level following recent retracement in price.

Look for the next Algo Engine buy signal.


Invocare – Offers Long-Term Value

InvoCare is under current Algo Engine sell conditions, following a recent lower high formation at $15.00.

Invocare’s balance sheet will be strengthened following the announced raising of up to A$85m, via institutional placement which will include $20m via a share purchase plan. We expect this to be done at around $13.30.

We anticipate the next signal to be a Algo Engine “buy” and we’re likely to see this before the end of April.

We see long-term value in IVC and suggest investors watch for an entry signal between $13.30 & $13.80




Invocare – Renewed Buying Interest

Invocare has under performed following their recent earnings report, in which the company indicated flat forward earnings and an increase in capital expenditure.

Technically, a “higher low” formation remains in place and we flag to our readers the strength in today’s price action.


Invocare – FY17 Earnings

IVC’s FY17 result overall was slightly above our market expectations, although FY18 outlook guidance was disappointing.

FY17 underlying EBITDA increased 8% to $124 million, the result was driven by 2% revenue growth.

Based on FY19 EPS of $0.68 and DPS $0.48, IVC now trades on a forward yield of 3.4%.


Algo Update – Invocare

Our Algo Engine triggered a recent buy signal in IVC and the stock has continued to drift lower.

The next range of support is $14.30 , followed by the up trending support line marked as “support 2” in the graph below.

The negative price action over recent days is being driven by the market’s reaction to a change in industry competition in the UK and concerns that similar challenges may emerge in Australia.

IVC reports full year earnings result on 19th February.


Invocare – Approaching Buy Support

Our Algo Engine recently triggered a buy signal in IVC  at $15.71.

With the stock trading on a forward yield of 3% and underlying earnings growth of 8%, we feel investors should be watching for a near-term entry point.

FY18 NPAT is forecast to be $67m, EPS $0.61 and DPS $0.47 fully franked.


ALGO Signal: Buy The Dip In InvoCare

Our ALGO engine triggered a buy signal for InvoCare at $16.40 on yesterday’s ASX close.

The stock looked very expensive when it posted a high trade of $18.10 on December 4th. Since then the company has been the target of several negative analyst’s reports and the share price dipped to $16.25 in early trade today.

The ALGO engine has flagged the “higher low” pattern based on the low price in the $13.00 area back in early August.

We don’t expect the IVC share price to rally back to the $18.00 area in the near-term.

However, we believe with the internal momentum indicators in oversold territory, a move back to the $17.35/40 area is a reasonable trade for both share investors and CFD traders on our SAXO Go platform.