Value Model Portfolio Rebalancing EXIT (ASX SEK) and ENTRY (ASX SGM)

1. Value Model Portfolio Rebalancing EXIT (ASX SEK) and ENTRY (ASX SGM) 

Exit Case: Seek Limited (ASX: SEK) 

Overview: SEEK Limited (ASX: SEK) operates an online employment marketplace across the Asia Pacific and Latin America. 

SEK has been a part of the ‘Value Model Portolio’ since 3^rd November 2022, however, considering the recent rally in the stock, support & resistance levels, and 17.13% upside from the entry price, an ‘Exit’ is recommended from the stock at the closing market price of AUD 25.370, up by ~5.357% as on 2^nd Febrauary 2023.

Source: REFINITIV as on 2^nd Febraury 2023

SEEK Limited (ASX: SEK), part of Kalkine’s Value Model Portfolio, has reached near its resistance level around which an exit case emerges.

1.1 Support and Resistance Summary as provided in our last published report dated 4^th January 2023.

 1.2 One-Year Technical Price Chart (ASX: SEK)

One-Year Technical Price Chart (as of 2^nd February 2023). Source: REFINITIV, Analysis: Kalkine Group 

2. New Entry Case: Sims Limited 

Overview: SGM is involved in metal recycling and provides circular solutions for technology. The company’s aim is to create a world without waste to preserve the planet and offer innovative solutions in the circular economy for consumers, businesses, governments, and communities around the world.

Technical Analysis: On the daily chart, SGM prices are trading above the falling trendline support level and taking the support from the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~68.497 level, indicating positive momentum.  Moreover, the prices are trading above the trend-following indicators 21- period SMA, which may act as a support level.

SGM is recommended as a new entry in the ‘Value Model Portolio’ as on 2^nd February 2023. In the latest update SGM updated, besides costs mitigation initiatives, the company is anticipating its Underlying EBIT for 1HFY23 to be in the range of AUD 65 million to AUD 75 million. And the Annual Presentation for FY22 released depicted sales volume growing by ~12.2% on prior corresponding period basis, ~56.5% Y-o-Y hike in its sales revenue, and statutory NPAT increased from AUD 229.4mn in FY21 to AUD 599.3mn in FY22. Considering, above mentioned factors, technical analysis, support & resistance levels, key risks and outlook an ‘Entry’ is recommended in the ‘Value Model Portfolio’ at the closing market price of AUD 15.430, up by ~0.129%, as on 2^nd February 2023.

Source: REFINITIV as on 2^nd February 2023 

Sims Limited (ASX: SGM), is identified as the new entry to our Value Model Portfolio.

2.1 Support and Resistance Summary as on 2^nd February 2023

2.2 One-Year Technical Price Chart (ASX: SGM)

One-Year Technical Price Chart (as of 2^nd February 2023). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency as of 2^nd February 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings.

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