Alpha Recommendation: Sell Take Profit on Half – Judo Capital (JDO)
JDO has reached it’s technical level on the upside, there is still reason to remain in the trade due to been a potential takeover target. So we are taking off half our position.
JDO has reached it’s technical level on the upside, there is still reason to remain in the trade due to been a potential takeover target. So we are taking off half our position.
Upon reviewing PeopleIn’s first-half FY24 earnings, we recommend exiting our position. Despite a record revenue of $602.7 million, the company faced a significant decline in profitability, with EBITDA and NPATA down by 37.7% and 34.3%, respectively. This downturn is attributed to a shift towards lower-margin work and a decrease in permanent recruitment, particularly in the tech sector. Although PeopleIn has implemented cost-saving measures, the current financial challenges, exacerbated by tough market conditions, suggest a prudent move to mitigate risks.
Buy – Judo Capital (JDO). Judo Capital Holdings Limited (JDO) is an Australian bank with a focus on lending to small and medium enterprises (SMEs). Judo’s product offering provides SME Customers with tailored lending solutions for their SME business needs. The bank has 3,758 SME Lending customers and 35,050 Term Deposit customers.
Our strategy aims to prudently manage risk by locking in profits from our Judo Bank position. Taking profits at this juncture allows us to reduce exposure to potential market corrections and sector-specific risks highlighted by the CBA earnings report and the rising trend in home loan arrears.
Judo Capital Holdings Limited (Judo Bank) reported a strong first half of the fiscal year 2024, with a notable profit before tax increase of 24% compared to the previous period.
A quick 10% rally in just 6 session may see JDO run out of steam around $1
There are no imminent company announcements to trigger a catalyst for a significant jump from here.
We think it is prudent to bank a 10-15% profit on half and either re-enter under 90c or continue running the 10% trailing stop
A bounce in the Lithium spot price after a dramatic year long fall should see Liontown bounce back towards it $3 takeover bid price
Equities were buoyed by tech as optimism on the “golden child” of the AI rally, Nvidia results in the post market (later justified) and falling treasury yields leading into the Jackson Hole Symposium.
MPC Markets favourites to outperform this ASX earnings season