Stock Pick

  • Latest 3 ASX buy ideas from leading brokers

    Clock showing time to buy, ASX 200 shares

    Investors should be more confident about buying the dips as our market has a tendency to recover from early losses.

    Today was no exception with the S&P/ASX 200 Index (Index:^AXJO) clawing its way back to the black.

    If you are looking for stocks to put on your watchlist, these three stocks are among the latest “buy” ideas from leading brokers.

    Riding on a cloud

    One stock worth considering is scrap metal company Sims Ltd (ASX: SMG), according to UBS.

    The broker upgraded the stock to “buy” from “neutral” today even though the stock is impacted by the lack of earnings visibility and volatile scrape prices.

    “However, at 0.8-0.9x NTA [net tangible asset] and with scrap markets expected to improve from here as the US economy reopens, the discount is too wide,” said UBS.

    “In addition, SGM’s push into cloud recycling offers the opportunity for more stable volumes and growth as cloud IT refresh cycles fall.”

    Cloud recycling is the recycling of computer servers and other IT equipment used in cloud computing. It’s related to e-recycling and Sim’s expansion into this space was triggered by the exit of a key competitor.

    UBS’s price target on Sims is $10.20 a share.

    Shining bright

    Meanwhile, JP Morgan initiated coverage on Gold Road Resources Ltd (ASX: GOR) with an “overweight” recommendation as GOR potentially offers the best returns among gold miners under the broker’s coverage.

    Gold Road’s 50% owned Gruyere project is the main reason for the broker’s enthusiasm as that is a large and long-life mine based in Western Australia.

    “These are scarce and valuable qualities in this gold-focused, and negative real yield environment,” said JP Morgan.

    “We see clear potential to add value to the current Gruyere operation by increasing production rates, extending mine life and finding more gold.”

    The broker’s price target on the stock is $1.95 a share, which implies a 30% upside.

    Positive trends

    Finally, Macquarie Group Ltd (ASX: MQG) reiterated its “outperform” call on Domino’s Pizza Enterprises Ltd. (ASX: DMP) after the fast food chain’s trading update.

    Domino’s is benefiting from the COVID-19 shutdown as demand increased from stay-at-home consumers.

    The broker also noted that the company’s supply chain isn’t impacted by the pandemic and that management is increasing their advertising spend when competitors are hunkering down.

    “Summer is normally slower in Europe given ~30% of population is abroad at any time, but this season will be unusual given many consumers will not be travelling,” said Macquarie.

    The broker’s 12-month price target on the stock is $66.10 a share.

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    Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Latest 3 ASX buy ideas from leading brokers appeared first on Motley Fool Australia.

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  • EUR/USD Forecast: Bulls Keep Buying On Dips

    EUR/USD Forecast: Bulls Keep Buying On DipsEUR/USD Current Price: 1.1341 * Equities retreated from their recent highs, but the dollar couldn't benefit from the dismal mood. * The U.S. Federal Reserve is expected to maintain its monetary policy unchanged, focus on the dot-plot. * EUR/USD is nearing the multi-week high at 1.1384 posted after the upbeat US employment report.The EUR/USD pair is nearing its post-NFP peak at 1.1383 ahead of the most relevant event of the week, the US Federal Reserve monetary policy decision. The greenback tried to recover some ground during European trading hours, helped by the sour tone of equities. Nevertheless and despite stocks were unable to recover, the dollar resumed its decline during the American session, ending the day lower against most of its major rivals.In the data front, Germany published the April Trade Balance, which posted a surplus of €3.2B below expected, with exports falling by 24% and imports collapsing by 16.5%. The EU published the final version of the Q1 GDP, which was slightly better than initially estimated, printing at -3.6%, still indicating a steep contraction. The US published the NFIB Business Optimism Index, which came in at 94.4 in May, beating the market's expectations, and the IBD/TIPP Economic Optimism for June, which slid from 49.7 to 49.As said, the focus is now on the US Federal Reserve that will make its announcement this Wednesday. The central bank is not expected to announce any relevant change to the current policy but will publish the Summary of Economic Projections for the first time in six months. Forecasts on growth, inflation, and unemployment will provide hints on how policymakers see the possible economic recovery. The country will also publish May inflation data. The EU won't publish macroeconomic figures ahead of the event.EUR/USD Short-Term Technical Outlook The EUR/USD pair trades around 1.1340 after bottoming for the day at 1.1240. It briefly pierced the 23.6% retracement of its latest decline before turning north, a sign that buyers are still willing to buy the dips. The short-term picture is bullish, as, in the 4-hour chart, technical indicators have recovered above their midlines, the Momentum maintaining its bullish slope and the RSI consolidating around 66. The pair, in the meantime, has recovered above a bullish 20 SMA, currently at around 1.1300. An advance beyond 1.1380 should open doors for a test of the 1.1460 level, a long-term static resistance.Support levels: 1.1300 1.1260 1.1220Resistance levels: 1.1380 1.1420 1.1460See more from Benzinga * AUD/USD Forecast: Corrective Decline Could Accelerate Once Below 0.6860 * AUD/USD Forecast: Extending Its Rally Above 0.7000 And Poised To Continue Advancing * EUR/USD Forecast: Held Above The 23.6% Retracement Of The Latest Daily Run(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • How Australian super funds are letting the team down on ethics

    senior man holding piggy away from reaching hands

    Unfortunately, most Aussies probably don’t pay as much attention to their superannuation affairs as they should. Even if you’re not very interested in your super, most of us would agree that the custodians of our retirement funds should be using their power for the greater good. 

    Australian Super funds invest a lot of our money in S&P/ASX 200 Index (ASX: XJO) shares. That gives them considerable weight to throw around when it comes to attending annual meetings and voting on company matters. Especially on issues like climate change, gender equality and other ethical concerns.

    Unfortunately, new reporting from Business Insider indicates that most super funds’ bark isn’t quite matching up to their bite on these matters. The Business Insider article quoted the Australasian Centre for Corporate Responsibility’s (ACCR) Director of Climate and Environment, Dan Gocher in saying:

    “Just 7 out of 50 funds have shown sustained support for shareholder proposals over 3 years, putting into question the responsible investment practices of a large number of funds.”

    On matters of climate change, only 7 of the largest funds supported proactive climate change policies more often than they’ve opposed them over the last 3 years. The reporting notes that there were some funds that barely supported any pro-climate policies at all.

    On matters of gender pay equality, we saw a similar story with 9 funds supporting more measures than opposing.

    Turning to political lobbying transparency, it was even worse. Just 5 of the funds had positive voting records.

    Make a difference with your Australian super fund

    If you find these statistics upsetting, I don’t blame you. Super is our money at the end of the day. And I think that by extension, super funds, as the custodians of our money, should reflect the views of the people whom ‘their’ capital truly belongs to when it comes to having a say on how ASX companies are run.

    If you feel strongly about this, I would suggest contacting your super fund and letting them know your views. Perhaps you could even switch your fund to a more ‘activist’ option if you’re still not happy.

    For better or for worse, money talks in the world of investing. Thus, if you want your money to speak your values, it might be a good time to make it so.  There are super funds out there that specialise in ethical investing, but you should still make sure you are getting a good deal on your fees and performance returns. Money talks louder when it’s growing at the fastest rate possible!

    Before you go, make sure to check out the free report below!

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post How Australian super funds are letting the team down on ethics appeared first on Motley Fool Australia.

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