Downer upgraded and breaking out
11.31 am The market is up 30 points led by resources again but with some support from the REIT sector and financials so more broad based.
Downer now has about 83% of Spotless but may need to do a deal with a hedge fund holding a little over 10% to move to the 90% compulsory acquisition level. Nevertheless, Macquarie has upgraded the stock pointing out that the forward p/e will be 14 compared to sector levels of around 18. The stock has jumped 20 to 656. I bought some yesterday at 637 and more early at 648 average. I'm trading this short term but also holding some for a medium term trade.
I think it can get through short term resistance at 660 today and the next stop would be the old high at 720.
1.20 pm I wrote about XRO a couple of days ago. I've held this for about three weeks and it's starting to rally out of a pennant correction. Looking good now.
4. 20 pm A strong day finished with the market 52 points higher.
I hold four stocks in a medium term book. BLD was added at 694 yesterday and was weaker today, slipping to 680. I bought DOW at 653 in this book (lower in my trading book) and it finished at 666. EVN was bought at 228 and recovered slightly to 225 but hasn't launched yet. I'm hoping the result in gold sector peer RSG tomorrow will help things along. The last position is XRO which is progressing well and closed at 2515, up 28.
Downer now has about 83% of Spotless but may need to do a deal with a hedge fund holding a little over 10% to move to the 90% compulsory acquisition level. Nevertheless, Macquarie has upgraded the stock pointing out that the forward p/e will be 14 compared to sector levels of around 18. The stock has jumped 20 to 656. I bought some yesterday at 637 and more early at 648 average. I'm trading this short term but also holding some for a medium term trade.
1.20 pm I wrote about XRO a couple of days ago. I've held this for about three weeks and it's starting to rally out of a pennant correction. Looking good now.
4. 20 pm A strong day finished with the market 52 points higher.
I hold four stocks in a medium term book. BLD was added at 694 yesterday and was weaker today, slipping to 680. I bought DOW at 653 in this book (lower in my trading book) and it finished at 666. EVN was bought at 228 and recovered slightly to 225 but hasn't launched yet. I'm hoping the result in gold sector peer RSG tomorrow will help things along. The last position is XRO which is progressing well and closed at 2515, up 28.
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