What Worked Australia - 12 Aug 2016 - Reversion in long term momentum

What Worked – Pretty directionless week, with some reversion in the longer term momentum signals, and a pickup in trailing PER. This was, however, one of the first weeks in some time that all value signals managed to produce a positive, albeit weak, IC. Names looking cheap on a trailing PER basis that did well this week included Qantas Airways (QAN, +2.4%), Flexigroup Limited (FXL, +8.9%) and Bendigo and Adelaide Bank (BEN, +7.6%).

Reversion in 12-month momentum saw names that have fared the worst over the last 12 months coming back, including Slater & Grodon (SGH, +16.1%), Mesoblast (MSB, +38.9%) and Horizon Oil (HZN, +4.4%).

Who Moved – Volumes were not particularly good this week, with only 15 names managing to move on higher than normal volumes, and the market as a whole trading -0.2 standard deviations below the 3 month average. Fairfax Media (FXJ, -6.3%), IOOF Holdings (IFL, -5.2%) and Monadelphous Group (MND, -4.0%) faring the worst on strong volume, while Bradken Limited (BKN, +30.9%), Computershare (CPU, +13.7%) and Carsales (CAR, +9.8%) all up on significant volume.


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