Day: July 30, 2022

Broker names 3 ASX 200 shares to buy and hold

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

If you’re a fan of Warren Buffet’s style of buy and hold investing, then you may want to look at the three ASX shares listed below.

These are shares that the team at Bell Potter believe are “champion stocks” and excellent buy and hold options for investors. Here’s what the broker is saying about them:

Goodman Group (ASX: GMG)

The first ASX share that could be a top buy and hold option is integrated industrial property company Goodman. Bell Potter believes Goodman is well-placed for long term growth thanks to its world class portfolio and the increasing demand for industrial property.

The broker commented:

One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.

Sonic Healthcare Limited (ASX: SHL)

Another ASX share that the broker expects to be a long term market beater is Sonic Healthcare. Its analysts rate the pathology provider highly due to their belief that it is well-placed for growth thanks to increasing demand for pathology services and its international expansion opportunities.

Bell Potter explained:

The world’s third largest pathology provider with significant operations in the USA, United Kingdom, Germany, Switzerland, Belgium, Australia and New Zealand. Against the backdrop of continuing growth in the demand for pathology services over the longer term, the group has further international expansion opportunities in both existing and new geographical markets.

Transurban Group (ASX: TCL)

A final ASX share that Bell Potter expects to be a long term market beater is toll road giant Transurban. Bell Potter is bullish due to the company’s strong portfolio and huge development opportunities. The latter is expected to support its growth in the coming decades.

The broker said:

Australia’s largest builder, owner and operator of urban toll road networks. The group also has toll road assets in North America. The group’s current pipeline of growth projects is $3.9 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades supported by population and economic growth.

The post Broker names 3 ASX 200 shares to buy and hold 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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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 recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The All Ordinaries gold share ‘in an enviable position’: fundie

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resourcesa man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

First Sentier’s Tim Canham reckons the commodities boom ain’t over yet.

He’s particularly bullish on ASX gold share Genesis Minerals Ltd (ASX: GMD) and mineral sands miner Iluka Resources Limited (ASX: ILU).

Canham is a senior portfolio manager within First Sentier’s emerging companies team.

In an interview with the Australian Financial Review (AFR), Canham revealed they have just bought a gold share.

Why buy Genesis Minerals?

Canham said:

Even though it’s not a sector in favour, we have a new position in a gold stock, Genesis Minerals. Former management team of Saracen Minerals, which merged with Northern Star.

The company recently conducted a $100 million capital raising. Genesis also announced a merger with troubled Dacian Gold. This gives the emerging company access to a relatively new processing facility in the region at below replacement value.

This merger and potential further transactions at a time when labour and capital cost pressure are intense, puts the company in an enviable position at a low point in the gold cycle.

The Genesis Minerals share price closed Friday’s session at $1.39, up 4.92%. The gold share is up 94% over the past 12 months but down 18% in the year to date.

Why buy a gold share when commodity prices are falling?

This might come as a surprise given commodity prices have been falling for a few months now. The price of gold has fallen from a recent high of around US$2,052 t.oz in March to US$1,760 t.oz today.

Canham says the environment for gold shares “is very tough given the increasing cost environment in terms of labour, fuel and other processing inputs”.

He adds:

An Achilles heel of the sector is that it has no pricing power, despite the relative cushion of a weaker Australian dollar. But I always like to own some gold, as when it’s in favour, the stocks can really do well. Usually, when you least expect it, you are thankful you own some.

What’s the outlook for commodities?

Canham is “quite bullish” on commodities:

When we look across a number of commodities like natural gas, oil, copper, zircon, and nickel – there has been very little supply response in any those key ingredients for global growth. The current high operating and capital costs make supply growth even more unlikely.

When I attempt to marry this up against these wonderful, smooth, upward-sloping demand charts of electric vehicle production, renewable energy and grid build-out, I do scratch my head. It makes me quite bullish in the medium term on the commodity complex.

Why buy Iluka Resources?

When asked to name an undervalued ASX share that he is most bullish on, Canham nominates Iluka Resources.

Yes, there are headwinds from global recession fears and Chinese housing issues, but the fundamental lack of supply in mineral sands products is very real.

Generally for me to get bullish about a commodity there must be a supply angle (i.e., a lack of it).

We think its rare earth refinery investment in WA is also misunderstood by the market and undervalued. As a manufacturing destination, WA looks attractive with some of the lowest gas prices in the world.

The Iluka Resources share price closed Friday’s session at $9.58, down 0.1%. Iluka shares are down around 4% over the past 12 months and 8% in the year to date.

The post The All Ordinaries gold share ‘in an enviable position’: fundie 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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‘If you’re going through hell, keep going’

A man sits cross-legged in a zen pose on top of his desk as papers fly around his head, keeping calm amid the volatility.

A man sits cross-legged in a zen pose on top of his desk as papers fly around his head, keeping calm amid the volatility.

“If you’re going through hell, keep going.”

The above quote is often attributed to Winston Churchill. It sounds like something he might have said, although there is no evidence to suggest that it was, in fact, his.

As per Quote Investigator, it’s possible that it was adopted from a different source, such as “Christian Science Sentinel”, a religious journal, in 1943. There, the story went that a man was asked how he was, to which he replied: “I’m going through hell!”. His friend responded:

“Well, keep going. That is no place to stop!”

No place, indeed.

It’s been a rough ride, Fools. These past few months have tested the resolve of even the most experienced investors, and have no doubt seen many give in to the market’s pessimism.

But to do so now would, I believe, be consequential. 

The market is driven not by perfect information, but instead by incomplete information compounded by investor psychology. When panic sets in, people rush for the exits and leave behind those who are more focused on the underlying businesses and long-term wealth creation.

Bear markets, which can feel like hell for investors, are temporary. And while it mightn’t feel like it at the time, this is where the foundations are set for the next bull cycle. 

Companies like JB Hi-Fi Limited (ASX: JBH), an Australian discretionary retailer recently reported a record sales result. Meanwhile, many companies in the United States that have recently reported their second-quarter earnings results – Netflix (NASDAQ: NFLX) among them – have also surprised to the upside.

Investors who sell out now, or merely remain on the sidelines, might avoid any further pain, should the market fall further. But many will also miss out on the gains which I expect will come to those who remain patient.

I’m not trying to call the bottom of the market. I don’t know when that will be, nor if it has already been. But I will echo the words that Winston Churchill may or may not have said:

“If you’re going through hell, keep going.”

The post ‘If you’re going through hell, keep going’ 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Ryan Newman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Here are 3 stellar ASX growth shares analysts are tipping as buys

Surge in ASX share price represented by happy woman pointing to her big smile

Surge in ASX share price represented by happy woman pointing to her big smile

If you’re a fan of growth shares, then you might want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is leading appliance manufacturer Breville. Thanks to acquisitions and its ongoing investment in product development, the company’s portfolio has been resonating well with consumers for many years. Together with its international expansion, this has underpinned solid sales and earnings growth over the last decade. Pleasingly, the team at Morgans expect this positive trend to continue. They are forecasting double-digit sales growth over the next few years.

Morgans currently has an add rating and $25.00 price target on its shares.

Megaport Ltd (ASX: MP1)

Another ASX growth share that could be a buy is Megaport. It is a leading cloud connectivity and networking solutions provider with operations across a large number of data centres globally. Goldman Sachs is tipping Megaport to grow rapidly in the coming years thanks to its first mover advantage in an industry benefiting from the long-term structural tailwinds of public cloud adoption (and multi-cloud usage) and the transition towards Networking as a Service (NaaS). The broker estimates that these tailwinds currently provide it with a $129 billion per annum opportunity across its current geographies.

Goldman has a buy rating and $9.60 price target on its shares. Elsewhere, it is worth highlighting that UBS has a buy rating and significantly higher price target of $17.60.

ResMed Inc. (ASX: RMD)

A final growth share to look at is ResMed. It is a sleep treatment focused medical device company which has been tipped to continue its strong growth long into the future. This is expected to be underpinned by ResMed’s world class products, significant and growing market opportunity, and its increasingly important digital platform. The latter has seen ResMed develop a patient-centric, connected-care digital platform which the team at Morgans notes is addressing the main pinch points across the healthcare value chain.

Morgans is very positive on the company’s future and has an add rating and $37.95 price target on its shares.

The post Here are 3 stellar ASX growth shares analysts are tipping as buys 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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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 positions in and has recommended MEGAPORT FPO and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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