We bought. US: DIS, AKAM, AMD, ATVI

Stock picks November 2021

NYSE:DIS @ USD 153.31

Disney has a wide range of new and old franchises. While COVID hit on Disney parks revenue I think it is well positioned with its online offer of streaming services. Blockbusters like Star Wars and more recent series like the Witcher are driving new customers to the platform, particularly the younger audience which is hard to attract. The stock is relatively cheap and I think it could move around Christmas.

NASDAQ:AKAM @ USD 111.60

Akamai is a content delivery network (CDN) or cache provider used by millions of companies. Its services are used to reduce the bandwidth usage on many websites by serving cached version of the pages. It helps company in reducing their operating cost and preventing attacks. The stock is affordable and has the potential to go much higher. The reason I am buying it is because the company I am working for is using Akamai extensively which tells me that other large corporations are using it too. I used the same logic when I bought Cloudstrike, Workday , Okta, Google and Sumo.

NASDAQ:AMD @ USD 157.30

AMD has a wide range of chips used for a variety of devices and application. With the explosion of gaming and mining, AMD is positioned to deliver fantastic results over the coming years.

NASDAQ: ATVI @ USD 60.93

The rise of electronic sports will support growth for video game editors. Activision is a key player in the industry with titles like Call of Duty, Tony Hawk and Guitar Heroes.

Starpharma (ASX:SPL) share price shoots 6% higher on Roche agreement

a group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.

The Starpharma Holdings Ltd (ASX: SPL) share price is soaring following the company announcement of a partnership agreement.

At the time of writing, the dendrimer product developer’s shares are up 6.11% to $1.215 apiece. It’s worth noting that in the past week alone, the company’s share price has leapt by almost 17%.

Let’s take a look at what Starpharma updated the ASX with.

Starpharma partners with Roche Group

Investors appear excited by the company’s latest announcement, sending the Starpharma share price to a 2-month high.

According to its release, Starpharma advised it has entered into an exploratory DEP Research Agreement with Genentech.

Founded in 1976, Genentech is an American biotechnology company that became a subsidiary of the Roche Group in March 2009. Genentech develops medicines for people with serious and life-threatening diseases, such as cancer and progressive multiple sclerosis.

The partnership will see an initial focus on evaluating DEP (dendrimer-based) drug chemical compounds.

A leader in dendrimer-based drug delivery, Starpharma’s proprietary drug delivery platform technology, DEP, is used to improve pharmaceuticals. This reduces toxicities and enhances performance across a wide range of drug classes.

Starpharma’s DEP technology has shown promising results so far, producing four clinical-stage products.

The company already has a number of existing DEP agreements with several leading international pharmaceutical companies. These include AstraZeneca, Merck & Co., Chase Sun, and several other undisclosed partnerships.

Starpharma share price summary

At the beginning of 2021, Starpharma shares rocketed to an all-time high of $2.52 in mid-February. However, the sharp rise was followed by a fall with the company’s shares quickly crashing down the following month.

Since then, the Starpharma shares have continued their downward trend, hitting a 52-week low of $1 in November.

Overall, the Starpharma share price is down by almost 5% in the past 12 months and is more than 20% lower in 2021.

The company presides a market capitalisation of roughly $496 million, with approximately 406.68 million shares on its books.

The post Starpharma (ASX:SPL) share price shoots 6% higher on Roche agreement appeared first on The Motley Fool Australia.

Should you invest $1,000 in Starpharma right now?

Before you consider Starpharma, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Starpharma wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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An auspicious day…

Office workers celebrating a birthday.

A little under 11 years ago, a modest website went live.

With the unlikely domain name of fool.com.au it was to be the first significant international expansion of The Motley Fool in a decade.

I was lucky enough be to Fool #2 — through some felicitous coincidence, I’d emailed our CEO on spec having heard the company was looking toward ‘international expansion’ at some point, and I contributed my first article to the website soon after.

We spent most of that first year trying to explain how a serious company could be called ‘The Motley Fool’, and sharing our message of individual investor empowerment.

Then at the end of 2011, we launched our very first premium investment advice service: Motley Fool Share Advisor.

The first recommendation was sent to our members on this very day a decade ago — the date we reckon is best considered Share Advisor’s birthday.

And so, on Sunday, we celebrated Share Advisor’s tenth birthday — a decade of doing our very best to bring quality investment advice — share recommendations, education and commentary — to our members.

December 5 2011, feels like a lifetime ago.

And only yesterday.

I’m proud that we’ve made it to this milestone.

I’m proud of the people who’ve worked on the service over the years.

I took over in the middle of 2012, so I can’t take all the credit for the last decade, but in any case I’m a huge proponent of Sir Isaac Newton’s observation, “If I have seen further, it is by standing on the shoulders of giants”.

I have worked with some wonderful people, directly on the service, and in the wider Motley Fool Australia investment team.

We have been wonderfully supported by the non-investors in our company who help people find us, help people get the best from us, and help us do our best work.

I am deeply indebted to our US investors, from whom I learned about investing as a member, before joining the team.

And to the investors, business people and writers from whom we’ve all learned over the years.

Which is all a little inward looking, right?

What about our members?

We are so incredibly humbled that so many Australian investors have chosen to use our services. It’s a deep trust that we take very seriously, and we continually strive to earn and keep.

I also want to thank the 173 members who have been with us, continuously, since that very first recommendation.

I like to hope it’s because we’re doing something right. But it’s also thanks to that trust they placed in us, even when markets — or individual company results — were unkind.

They stuck with us, which I deeply appreciate. Thank you to those 173 members — and to all of you who’ve renewed your membership when it fell due — and to those who are in your first year of membership with us.

I hope we’ve helped you become better investors.

I hope you feel better equipped to make your investment decisions, and to ride the waves of market volatility. And to keep the principles of diversification and portfolio construction close at hand.

I want to finish with some numbers.

We’ve made 121 ASX recommendations.

Our biggest ASX winner is Corporate Travel Management Ltd (ASX: CTD) (I own shares) which we recommended on August 23, 2012, and which are up an exact 1,000% at the time of writing! (1,000.18% to be exactly exact!).

My biggest loser is iSentia Group Ltd (ASX: ISD), currently down 97.48%, which was recommended on November 26, 2015. Yep. That one hurts.

We’ve made 49 ASX recommendations which have lost money (some have since been sold, others are still current recommendations, and we’re hopeful of better returns in future!)

72 have made money (similarly, many are still current recommendations.)

Encouragingly, while our worst loser is down that ugly 98%, we’ve made 33 ASX recommendations that have at least doubled — many of those have tripled and more.

Overall?

The average of all of our ASX recommendations, over that decade, is a gain of 73.2%.

If we’d invested in the S&P/ASX All Ordinaries Index (ASX: XAO), instead of our recommendations, on each recommendation date, the average gain would have been 44.4%.

Both numbers assume dividends are reinvested, by the way, and don’t include brokerage, taxes, or franking credits.

That’s some pretty good outperformance, so far, that I’m pretty proud of.

(The industry standard for funds is to annualise both figures. That’s harder for our service, because one recommendation is a decade old and one is just a week old. (Annualising a one week result would turn a 1% gain into a 52% annualised gain, or a 2% loss into a 104% loss, for example!)

Still, as our founding General Manager Bruce Jackson has always said, it’s our members’ scorecards, not ours, that matter.

To which I’ll add: It’s the future that counts, not the past.

What will the future look like?

I wish I knew.

But that’d take all the fun out of it.

What I know is that we’ll continue doing our utmost to help our members.

We’ll redouble our efforts to deserve their trust.

I hope I’m writing a similar piece in 2031, reflecting on the success Share Advisor has enjoyed in its second decade.

And I hope even more Australians will be able to say we’ve been instrumental in helping them achieve their financial goals.

As Amazon founder Jeff Bezos says, it’s always Day One.

What matters is the returns of our members from today. And of those members who join Share Advisor today, tomorrow and hereafter.

So thank you for the part many of you have played in our journey so far.

And here’s to the next 10 years. And the 10 after that.

Fool on!

The post An auspicious day… appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor Scott Phillips owns shares of Corporate Travel Management Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is the BlueBet (ASX:BBT) share price a serious bargain after losing 23% in a month? Here’s what Motley Fool analyst Trevor Muchedzi says

Two men in a bar looking uncertain as they hold a betting slip and watch TV.

The BlueBet Holdings Ltd (ASX: BBT) share price has had a shocking month on the ASX despite the company’s silence. But does the 23% tumble put it squarely in the buy zone?

The Motley Fool Australia analyst Trevor Muchedzi sat down with our chief investment officer Scott Phillips last week to talk about the betting services company’s outlook.

Those interested can find their entire conversation below or keep reading for a breakdown of their major talking points.

Additionally, Phillips chats with one of our analysts weekly, publishing their conversations on The Motley Fool Australia’s YouTube channel every Wednesday.

At the time of writing, the BlueBet share price is up 7.78% for the day at $1.45.

The strength of the BlueBet share price

BlueBet is a small betting company within the Australian market. According to the ASX, it has a market capitalistion of around $270 million.

Muchedzi also notes it holds a market share of around 1.3%. But what’s got the analyst excited about the company is its international expansion plans.

The company has begun its break into the United States’ relatively new gambling market, with a unique approach to doing so.

Las Vegas has always been a gambling hot spot. However, the United States didn’t legalise sports betting in all states until 2018. Muchedzi comments:

It’s not often where we see Australian companies having an edge over US companies, especially in their home market, but because we’ve been in the sports betting industry for far longer than US companies we do have Australian companies that have got an edge in that particular market.

However, the US doesn’t allow betting across state lines. That means a betting company needs to be separately licensed in every US state they operate in.

While many betting companies are jumping in to take a share of the US’ larger markets, BlueBet is targeting what Muchedzi calls second-tier markets. These are smaller markets with less competition. Muchedzi states:

You’ve got traditional gambling companies that are operating in those markets and, for the last 50 or 100 years, these were brick and mortar type of gambling companies.

What BlueBet is wanting to do is to go into those markets and then partner with those gambling companies that already have got licenses to provide sports betting…

[It plans to] provide the technology behind online sports betting.

According to Muchedzi, that tech is hard for traditional gambling companies to get their hands on.

The way-around posed by BlueBet has another benefit too. It allows the company a slice of the market without paying for customer acquisition.

However, BlueBet still faces numerous challenges.

BlueBet’s weaknesses

Muchedzi noted a number of factors that might negatively impact the BlueBet share price in the future.

Firstly, the company is still small. While it has a history of execution in Australia, the US is a different kettle of fish.

Secondly, it’s operating in a highly regulated environment. The gambling sector – particularly that of the US – comes with many risks, one being potential litigation. Muchedzi states:

If they’re involved in any form of litigation, that will … result in in some significant costs for BlueBet, and for all their partners.

Finally, the US market brings an immense amount of competition. However, it’s also extremely localised.

Right now, BlueBet has failed to secure a partnership in one of its targeted states. Though, it’s wiggled its way into another.

It is now looking to break into its 3 remaining target states, but the company doesn’t have a lot of control over its ability to enter individual states, potentially making its execution plan risky.

So, all that considered, is BlueBet a buy?

Here’s what Muchedzi had to say about the Bluebet share price:

The investment story is very simple. The US market is, really, a new market and it’s enormous. It’s expected to really grow to something like between $20 to $30 billion dollars in terms of revenue over the next three years…

Also, I really like their sportsbook-as-a-service offering. It’s really like a software type of business model where they don’t have to invest significantly in terms of customer acquisition…

If they get it right, if they get into these transactions, they are really, really compelling, so it’s an investment opportunity that I think is worth looking into…

[But] we have to pay attention to the risks… [L]et’s see how they’re executing over the next few quarters.

The opinions expressed in this article were as at 1 December 2021 and may change over time.

The post Is the BlueBet (ASX:BBT) share price a serious bargain after losing 23% in a month? Here’s what Motley Fool analyst Trevor Muchedzi says appeared first on The Motley Fool Australia.

Should you invest $1,000 in BlueBet right now?

Before you consider BlueBet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BlueBet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why this broker is tipping 58% upside for Bluescope (ASX:BSL) shares

a woman wearing a hard hat and high visibility vest checks her device in front of a large spool of steel cable.

Shares in Australian steel giant Bluescope Steel Ltd (ASX: BSL) are rangebound on Tuesday, trading up just 0.14% at $20.96 at the time of writing.

It’s been an interesting couple of months for Bluescope shareholders who’ve watched prices zigzag to trade roughly flat in that time.

With steel prices coming off a period of weakness, recently reversing course after bottoming in December, there may be some welcomed relief for ASX steel producers. 

Despite volatility in the spot markets for steel, the team at one leading investment bank has been overweight on Bluescope shares since January 2019 — and hasn’t budged since. Let’s take a closer look.

What’s the go with Bluescope shares lately?

It was a difficult time for Bluescope investors in November. Shares closed the month relatively flat after testing the $22 mark on several occasions but failing to break it each time.

A bottom-heavy steel market that softened steel prices, plus weakening demand for steel out of China, has played havoc on steel producers in 2021.

This comes after steel surpassed multi-year highs and rewarded producers with record free cash flow and tidy profit margins in 2020-2021.

However, with the price volatility, Blusecope hasn’t had the opportunity to reclaim losses sustained earlier in the year.

So why’s JP Morgan bullish on Bluescope shares?

The team at JP Morgan rate Bluescope overweight based on its attractive valuation metrics, strong balance sheet, strong focus on shareholder returns, and asset quality.

It values Bluescope at $33 per share – well ahead of many other analysts. At the time of writing, this implies an upside potential of 58%.

Aside from this, the broker is attracted to Bluescope’s dominant market position in Australia, along with the “consistent cash flow from the North Star assets”.

“Over time”, JP Morgan says, “we expect the company to grow domestic volumes in Australia, which should improve margins, while the North Star expansion also offers potential growth”.

Regarding its view on the dynamics of steel pricing, it notes prices for hot-rolled coil steel (HRC) in the US and East Asia are still “very strong” and remain elevated on a year to date basis.

In addition, US steel capacity utilisation is still high and supported by robust demand, the broker says.

Regarding its outlook for steel, it notes that “forward curves point to lower prices in 2022/23, although Chinese steel exports are sequentially lower and could provide some upside price pressure if they continue to trend lower”.

The broker also sheds some colour on its expectations for the company, stating it forecasts “an FY22 EBIT [earnings before interest and taxes] of $4.2 billion, which is 14% above consensus”.

It reiterated its overweight rating on the back of “valuation support, solid FCF yield estimates of 24% in FY23, strong balance sheet with a net cash position and capital management prospects (buyback program likely to be topped up)”.

It’s been more than a volatile 12 months for Bluescope shareholders. Shares have gained almost 19% in that time, rallying just over 19% this year to date as well.

In the past month, the Bluescope Steel share price has been catching bids and has gained around 200 basis points.

The post Why this broker is tipping 58% upside for Bluescope (ASX:BSL) shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bluescope Steel right now?

Before you consider Bluescope Steel, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bluescope Steel wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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