Stock Pick

  • Tesla (TSLA): Don’t Believe the Hype, Says Analyst

    Tesla (TSLA): Don’t Believe the Hype, Says AnalystElectric car giant Tesla (TSLA) is at the top of its game, hitting another all-time high on Wednesday, and reaching the long-ballyhooed $1,000 mark. The latest surge ensued when a memo from CEO Elon Musk telling employees it was "time to go all out" on the production of the Tesla Semi, began making the rounds.But Tesla’s latest rally picked up steam earlier this week, when reports came out that demand for Model 3s in China has accelerated. News outlets focused on the 11,095 Model 3s that zoomed out of Tesla’s Shanghai Giga 3 factory last month and are now sitting pretty outside a new home.However, GLJ Research analyst Gordon Johnson argues the celebrations are premature and, in fact, the figures are misleading.“The China May 2020 Sales numbers released yesterday, which have been covered by nearly every news outlet, were from China Passenger Car Association (“CPCA”)… Stated more clearly, the numbers from CPCA yesterday, according to CPCA, were just an estimate, and have not been confirmed,” Johnson said.According to Johnson, the figures to look out for are those released by the China Automotive Technology and Research Center (CATARC) or the China Banking and Insurance Regulatory Commission (CBIRC).Ok, so where are they? “Those numbers are not yet available,” Johnson added, “So all the Reuters and Bloomberg articles from yesterday are wrong. Also, the many analysts commenting on these numbers today on TV are also wrong.”While TSLA’s production number of 11,501 is not disputed by the analyst, Johnson believes “we do not yet know how many cars TSLA sold in May in China.”What we do know, Johnson adds, are Tesla’s EU sales figures. “They were pretty bad,” he said.Down by 5.2% month-over-month and 33% year-over-year, as it happens. Additionally, through June 8, quarter-to-date, 2Q20 sales dropped by 54% quarter-over-quarter and 75% year-over-year in “Norway + the Netherlands + Spain, which accounted for 47% of all of TSLA’s EU sales in 2019.”“But,” Johnson summed up, “Who cares about numbers/facts when Ron Barron is on TV nearly monthly saying TSLA’s stock will increase 10x with no supporting details – and also saying he wants to buy more, despite the fact he’s been selling… why won’t the media focus on the numbers vs. perpetually having people on to give their opinions on what Tesla will do in 2025? what about 2020?”Unsurprisingly, Johnson rates Tesla shares a Sell, without suggesting a price target. (To watch Johnson’s track record, click here)While not quite as flummoxed as Johnson, the Street appears out of sync with Tesla’s ascent, too. 9 Buys, 9 Holds and 10 Sell ratings add up to a Hold Consensus rating. With an average price target of $633.95, the analysts expect Tesla stock to drop by 38% over the next 12 months. (See Tesla stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

    from Yahoo Finance https://ift.tt/30wmoI8

  • Why the Keytone Dairy share price opened 9% higher this morning

    Glass of milk

    The Keytone Dairy Corporation Ltd (ASX: KTD) share price is racing higher this morning on the back of a sales update.

    Keytone Dairy is a manufacturer and exporter of formulated dairy products in Australia and New Zealand.

    The company manufacturers its own products under its KeyDairy, KeyHealth and FaceClear brands. These products include premium milk and nutrition powders and health supplement capsules for the treatment of acne. 

    Additionally, Keytone is a production partner for leading retailers and supermarket chains, undertaking contract packing operations for brands around the world.

    Headquartered in the heart of New Zealand’s South Island, Keytone Dairy floated on the ASX in July 2018 at an offer price of 20 cents. With a share price of 29 cents at the time of writing, the company’s market capitalisation currently sits at around $74 million.

    Why is the Keytone Dairy share price surging?

    This morning, Keytone Dairy revealed that it has received its largest follow-on order from Nouriz to date.

    Nouriz is a related party of China Animal Husbandry Group, a China state-owned enterprise, that orders whole and skim milk powders from Keytone for its Nouriz private label.

    The large purchase order announced today is priced at $1.39 million and is significantly higher than Nouriz’s recent orders and forecasts. More specifically, this latest order is around 11.3 times and 1.6 times greater than Nouriz’s first and second orders, respectively.

    The order will be manufactured in Keytone’s New Zealand facilities in August 2020.

    Commenting on today’s update, Keytone CEO Danny Rotman said:

    “These significant follow-on orders from strategic clients of the business are increasing in both frequency and size. With the New Zealand second manufacturing facility online, Keytone is well equipped to service these growing orders from Nouriz and other key strategic clients of the business and will continue to work closely with these clients, growing the product offering and volumes.”

    Recent developments

    Today’s announcement follows another positive update in late May regarding a new licensing agreement. The agreement gives Keytone a distribution license for a range of Baileys ready-to-drink dairy products products in Australia, New Zealand, Hong Kong and Taiwan.

    Additionally, the next day, Keytone announced its full-year financial results for the 12 months ending 31 March 2020.

    Headline results include total sales revenue of $22.53 million, up 799% from $2.51 million in the prior year, and cash receipts of $24.68 million. However, the company reported a full-year statutory loss of $7.45 million, up from a loss of $3.29 million in the prior year.

    5 stocks under $5

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    Motley Fool contributor Cathryn Goh 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 Why the Keytone Dairy share price opened 9% higher this morning appeared first on Motley Fool Australia.

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  • 3 great shares to buy now if you’re an ASX 200 investor in your 20s

    blocks trending up

    S&P/ASX 200 Index (ASX: XJO) investors in their 20s have a unique set of advantages over other share investors. Primarily, younger people have much more time before their retirement. This group of investors are in a fantastic position to take on more risk in search of outperforming the share market, more so than their older counterparts.

    ASX 200 investors in their 20s

    As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares may be fantastic options for most investors in their 20s, but not for all. 

    I am in my 20s myself and am passionate about wealth creation through share investing. As a result, I spend a lot of my time analysing the share market, economics and my portfolio. But I know that not everyone in their 20s is interested or in a position to invest. But you, just by reading this article, are already ahead of your peers when it comes to investing knowledge and potential returns. Potential returns that are all thanks to the power of time and compound interest.

    3 best ASX 200 shares to buy now

    EML Payments Ltd (ASX: EML)

    The EML share price is still down from its 14 February high of $5.66. Shares are trading for $4.17 at the time of writing. EML is a financial services company providing solutions for payouts, gifts, incentives and rewards, and supplier payments. Although the company is exposed to mall-based retail through its prepaid cards, it also has digital solutions. The company has done a good job at diversifying through the acquisition of Prepaid Financial Services. This acquisition gives EML exposure to banking as a service (BaaS).

    Pointsbet Holdings Limited (ASX: PBH)

    Pointsbet shareholders have had a wild ride. The share price went from $6.65 in January, down to $1.12 in March to be at a high of $7.45 at the time of writing. That’s a whopping 80% decline followed by a 565% gain! I’m personally kicking myself for not buying during the dip, but I don’t think it’s too late to pick up shares. During the coronavirus pandemic, the company did well to continue its US licence expansion and is in a good position to grow long term once all sports are back to normal.

    Volpara Health Technologies Ltd (ASX: VHT)

    Volpara has done a great job at growing market share in the US. The company has built an installed software base covering over 27% of US women screened for breast cancer. The 31 March full-year results were impressive with total revenue up 153% and subscription revenue up 106%. The gross margin also increased from 83% to 86% year-on-year. What’s more, Volpara shares are significantly down from their late November high of $2.17, currently trading at $1.36 at the time of writing.

    Foolish bottom line

    These ASX 200 shares are smaller, fast-growing businesses. They offer huge potential returns, but with added risk. If you’re an ASX 200 investor in your 20s, they could be great long-term market beaters.

    Below, us Fools share a few other growth shares to help you outperform the ASX 200.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

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    Lloyd Prout owns shares in EML Payments Limited and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. 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 3 great shares to buy now if you’re an ASX 200 investor in your 20s appeared first on Motley Fool Australia.

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