ASX:MPL

Medibank Private is under Algo Engine buy conditions.

Medibank Private

Medibank Private is under Algo Engine buy conditions.

Buy with the stop loss at $4.54

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

We highlight the price support on the MPL chart, as the price action nears the $2.94 gap created back in May last year.

MPL goes ex-div $0.057 on the 5th of March.

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

At 19x forward earnings and 2 – 4% earnings growth, Medibank is a strong candidate for a covered call overlay to enhance the investment returns.

The stock trades on a forward yield of 3% and when adding a covered call, we can boost the cash flow to 10% on an annualized basis.

Buy MPL at $3.25 and look for a move higher to $3.50 before selling call options.

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

Medibank is now under Algo Engine sell conditions.

MPL reported 1H19 earnings today and for the most part the results are ahead of consensus. Although, NPAT is flat on the same time last year at $232m

Dividend for the half is at 5.7 cents based on a 70% payout ratio. MPL is a stable low growth business that offers 4.5% forward dividend yield.

We sell value back at $2.50 – $2.60 range.

Our Algo Engine shows Medibank remains under “buy conditions”.

With yesterday’s update at their AGM showing that the improved momentum in 2H18 had continued into 1Q19, we recommend accumulating the stock.

Buy Medibank and sell out of the money call options to enhance the income.

Medibank

Shares of MPL have rebounded smartly since posting a two-year low of $2.62 on October 26th.

The company is holding its AGM today and we expect a favorable reaction from investors.

As announced in their FY18 results, MPL expects growth in operating profits around 25% for FY19 combined cutting $60 million of management costs over the next three years.

On balance, we see MPL as well positioned in the healthcare sector with an upside target just over $3.10

Medibank

In Monday’s Opportunities in Review webinar, we highlighted MPL as a high conviction buy strategy. Our entry level was $2.75.

The price action this week suggests offshore fund managers have been aggressively buying Medibank.

With a defensive 4.3% yield, the stock is attractive at current levels.

Medibank Private

We recommend buying Medibank Private at current levels.

Since trading down to $2.62 on Monday, the stock has risen 6% and reached $2.79 in early trade today.

The internal momentum indicators are now pointing to resistance near $3.10.

Medibank Private