What Worked Australia - 02 Sep 2016 - Dividends and short term momentum

What Worked – With the market down this week, there was a small push into Value names, in particular Dividend Yield. Meanwhile 12-month momentum creeped up along with Beta, albeit in a much smaller fashion than is usual for these higher volatility signals. 12-month momentum was largely driven by selloff in the 12-month losers rather than buying into the winners, with names like Mesoblast (MSB, -6.2%), Spotless Group (SPO, -6.1%) and Village Roadshow (WRL, -8.0%) all extending their losses from the last year.

Names with good forward EPS revisions saw a slight selloff also, with MMA Offshore (MRM, -12.7%), BHP Billiton (BHP, -4.7%) and Newcrest Mining (NCM, -4.1%) all showing very strong forward EPS revisions over the last month, yet all underperformed the index. Short term signals (Stochastic Oscillator & 1 Week momentum) saw a big pick up for the week coming into the close today.

Who Moved – Few more names than usual moving on substantially higher volumes this week. Steadfast Group (SDF, -2.2%), Star Entertainment (SGR, +3.0%) and Vocus Communications (VOC, -5.2%) all finished lower, while Ramsay Health Care (RHC, +7.1%) Super Retail (SUL, +3.5%) and Retail Food Group (RFG, +3.3%) all finished higher for the week on very strong volume.


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