Day: October 10, 2021

CBA (ASX:CBA) share price edges higher amid legal proceedings

A businessman points a finger in accusation, indicating a share price or ASX company in trouble

The Commonwealth Bank of Australia (ASX: CBA) share price is climbing slightly today despite news of legal proceedings launched against the company.

At the time of writing, the CBA share price is up 0.07% trading at $104.53 apiece. This means that in the past week alone, CBA shares have elevated almost 5%.

What did CBA announce to the ASX?

In its release, the bank advised that the Fair Work Ombudsman (FWO) had started civil proceedings against CBA and its stockbroking firm, CommSec.

The FWO alleges that Australia’s largest bank breached the Fair Work Act by not paying 7,425 of its employees their correct entitlements. Staff mainly in customer services roles were affected by the underpayment.

The total discrepancy came to around $16.44 million for the period between October 2015 and December 2020.

The matter was taken to the Federal Court following the FWO investigation.

CBA defence

CBA noted that a comprehensive remediation program has been underway since early 2018 to identify issues dating back to 2010. The bank self-reported the employee entitlement payments to the FWO and publicly disclosed them in 2019.

The bank advised that the underpayments had led to it strengthening its systems and processes to ensure the issue was not repeated.

All missing entitlement payments have since been remedied, and CBA believes no further compensation payments are required.

Furthermore, the company highlighted that it was constructively working with the FWO to resolve the proceedings.

The maximum penalty for each company for the contraventions is up to $666,000 per breach.

A date is yet to be determined for when the matter will be heard in the Federal Court.

CBA share price snapshot

The CBA share price continues its upwards trajectory to post a 50% gain in a year. When looking at 2021, its shares have moved almost 30% higher for the period.

CBA commands a market capitalisation of roughly $178.59 billion, making it the biggest company on the ASX.

The post CBA (ASX:CBA) share price edges higher amid legal proceedings appeared first on The Motley Fool Australia.

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

Before you consider CBA, 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 CBA 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 Aaron Teboneras 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 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.

from The Motley Fool Australia https://ift.tt/3BJLt2l

Top broker tips BHP (ASX:BHP) share price to rise 48%

Two cheerful miners shake hands while wearing hi-vis and hard hats.

The BHP Group Ltd (ASX: BHP) share price is edging higher on Monday afternoon.

At the time of writing, the mining giant’s shares are up 0.5% to $37.90.

While this is positive on a red day for the ASX 200, the BHP share price is still down a disappointing 30% from its August high of $54.55.

Is the BHP share price good value?

While the recent weakness in the BHP share price is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

That’s the view of the team at Macquarie Group Ltd (ASX: MQG), which last week retained their outperform rating and $56.00 price target on the miner’s shares.

Based on the current BHP share price, this implies potential upside of 48% over the next 12 months.

And that’s before dividends. Macquarie is forecasting a fully franked dividend of $3.97 per share in FY 2022. This works out to be a sizeable 10.5% dividend yield, which increases the total potential return to over 58%.

Why is Macquarie so bullish?

Macquarie is bullish on BHP largely due to the diversity of its operations.

Although the iron ore price has fallen heavily in recent months, this is being cushioned by strong rises in other commodity prices such as coal.

“Buoyant coking coal prices have enabled BHP to maintain earnings upgrade momentum despite the recent volatility in iron-ore prices,” it commented.

In fact, the broker believes that overall commodity prices are strong enough for BHP to generate enough free cash flow to support a ~20 free cash flow yield. Which, as mentioned above, is expected to underpin very generous dividends in the near term.

In light of this, the broker appears to believe that the recent weakness in the BHP share price could be a buying opportunity for investors looking for exposure to the resources sector.

The post Top broker tips BHP (ASX:BHP) share price to rise 48% appeared first on The Motley Fool Australia.

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

Before you consider BHP, 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 BHP 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 James Mickleboro 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 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.

from The Motley Fool Australia https://ift.tt/3ByHwgw

Why is the AGL (ASX: AGL) share price sliding lower on Monday?

A young girls clings in fright to a big red slide.

The AGL Energy Limited (ASX: AGL) share price is slipping today despite reports Federal Energy Minister Angus Taylor believes a net-zero carbon target won’t mean net zero emissions.

According to reporting by the Australian Financial Review (AFR), Taylor told the publication’s Energy and Climate Summit that offset schemes will be crucial in Australia’s decarbonisation strategy.

It’s seemingly good news for AGL, Australia’s largest carbon emitter. The company has been battling calls to move away from coal-fired power and towards more climate-friendly energy production. Meanwhile, it’s watching its bottom line dip lower.

At the time of writing, the AGL share price is $6.145, 1.68% lower than its previous close.

Let’s take a closer look at how today’s AFR Energy and Climate Summit is going for AGL.

Energy and Climate Submit spells good news for AGL

The AGL Energy share price is slipping despite a few bright spots for the company at today’s AFR Energy and Climate Summit.

The most obvious win came from Energy Minister Angus Taylor.

Taylor reportedly told the conference Australia won’t be enforcing zero emissions or carbon taxes. Rather, it will encourage emission reduction measures, carbon capture and storage programs, and blue hydrogen. Blue hydrogen is hydrogen derived from methane in natural gas. He was quoted by the AFR as saying:

Our government will always stand up for our traditional industries, and their crucial ongoing role in underpinning our economy and reducing emissions,

and …

we are on the side of not adding costs for customers.

In a similar vein, the publication reports AGL’s customer service chief Christine Corbett told the summit the energy provider is struggling to go green without increasing customers’ bills.

Corbett said only around a third of energy customers care about renewable power while 80% are concerned about prices.

Earlier, AGL’s CEO Graham Hunt spoke on AGL’s move away from coal-fired power at the conference, saying:

[W]e do need to leverage off the sunk infrastructure, the skilled workforces, and we’ve got to do that in advance of planned closures.

Such commitment to coal comes despite 55% of its shareholders recently voting for AGL to implement Paris Agreement-aligned emissions targets.

AGL share price snapshot

Today’s dip is just the latest for the AGL share price.

The company’s stock is now trading for 49.5% less than it was at the start of 2021. It has also lost 54.7% of its value since this time last year.

The post Why is the AGL (ASX: AGL) share price sliding lower on Monday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AGL Energy right now?

Before you consider AGL Energy, 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 AGL Energy 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 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.

from The Motley Fool Australia https://ift.tt/3BuSVhj

Creso Pharma (ASX:CPH) share price struggles despite study update

Falling cannabis asx share price represented by cannabis leaves on a declining line graph

The Creso Pharma Ltd (ASX: CPH) share price is sliding in afternoon trade today and now trades at 11.3 cents apiece.

Whilst there’s been no market sensitive information released today, Creso Pharma shares are struggling despite the company announcing an update on testing of its new cannabis strains.

Read on for more details.

What did Creso Pharma announce?

Creso advised that its Canadian subsidiary, Mernova, has completed third-party testing of “THC content for four new cannabis strains with a Health Canada certified lab”.

Each new strain demonstrated “a major achievement” and exceeded the industry average THC content of 15% to 20%, recording an average of 19.6–30.1% THC content.

Specifically, the New Miracle Alien Cookies strain showed a 30.1% THC concentration – almost 50% higher than Creso Pharma’s competitors’ products.

This is expected to give Creso a competitive advantage in the Canadian market, increase product demand, and grow market share, per the release.

The release also notes the company has substantially increased the skill and experience levels of its employees, in order to commence advanced grow methods.

Supporting the staff changes are “multiple process improvements and upgrades (that) are currently underway”, each in an effort to increase plant yield and quality.

Aside from this, Creso advises that an additional 4 strains have been started from seed, and will undergo testing to determine sex in the coming months. They are expected to be introduced sometime in 2022.

With this momentum, the company stated that “sales continue to grow, (with) an additional $152,236 in purchase orders secured in the last week”.

That builds on a mix of bulk purchase orders for $800,000 that was announced for Mernova’s cannabis product last week.

Investors aren’t chasing the Creso Pharma share price today, and are instead selling the cannabis company’s shares in afternoon trade, pushing it 2% lower at last check.

Creso Pharma share price snapshot

It’s been a difficult year to date for the Creso Pharma share price, having posted a loss of 37.5% since January 1.

Yet, it has gained over 240% in the past 12 months, even after a 10% decrease this past month.

This result has far outpaced the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% in the last year.

The post Creso Pharma (ASX:CPH) share price struggles despite study update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Creso Pharma right now?

Before you consider Creso Pharma, 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 Creso Pharma 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 Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/3AuyKyM