If you’re close to retirement, then I think it would be prudent to focus more on capital preservation and income than growth shares like Afterpay Ltd (ASX: APT).

But which shares should you buy for a retirement portfolio? Below I have picked out two top shares which I think would be great options for retirees. Here’s why I like them:

Goodman Group (ASX: GMG)

The first company which I think would be a great addition to a retirement portfolio is Goodman Group. While property companies have been under a lot of pressure this year because of the negative impact of the pandemic, Goodman Group has come out of this relatively unscathed thanks to the way its portfolio is positioned.

In fact, last month the integrated commercial and industrial property group reaffirmed its earnings and distribution guidance for FY 2020. Management advised that its performance remains strong thanks to customer demand in the online, logistics, food, consumer goods, and digital economy. Given the structural changes we are seeing in the retail sector and with consumer behaviour, I think Goodman Group is well-positioned to deliver solid earnings and distribution growth for retirees for a long time to come.

Wesfarmers Ltd (ASX: WES)

I think it is hard to look past Wesfarmers when constructing a retirement portfolio. I believe the conglomerate is one of the highest quality companies on the Australian share market. Furthermore, with its proud history tracking back all the way to 1914, I don’t think there is a danger of it going away anytime soon. Especially given the quality of its portfolio and the positive long term outlook that the majority of its businesses have.

Overall, I believe it is well-placed to deliver solid earnings and dividend growth for the foreseeable future. This could make it a great long term retirement share to own.

More reading

• The latest ASX 200 stocks to be upgraded to “buy” amid the recession
• Why I’m not afraid to invest in shares during this recession
• Top brokers name 3 ASX 200 shares to buy right now
• The smartest ASX 200 shares to buy with $2,500 today
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers 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.

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The Exore Resources Ltd (ASX: ERX) share price is going through the roof today after announcing it is set to be acquired by Perseus Mining Limited (ASX: PRU).

At the time of writing, Exore shares are sitting 38.71% higher for the day while Perseus shares have dropped 11.57% lower.

Exore is a junior Australian-based miner with gold projects in Cote d’Ivoire covering a combined area of 2,000 square kilometres. 

What’s the deal?

Subject to certain conditions, Perseus will acquire 100% of Exore by way of a scheme of arrangement in an all-share transaction. If implemented, Exore shareholders will receive 1 Perseus share for every 12.79 Exore shares held.

Based on Perseus’ last closing price of $1.34, the scheme values Exore at a fully diluted equity value of $64 million, or 10.5 cents per share. This represents a 69% premium to Exore’s last closing price of 6.2 cents per share.

Additionally, Exore has elected to exercise its pre-emptive right to acquire the remaining 20% interest in the Bagoe and Liberty projects from Apollo Consolidated. Exore will pay the consideration of US$4.5 million from its existing cash reserves.

Exore and Perseus believe both sets of shareholders will benefit from the increased strength of the combined entity. 

Exore’s 2,000 square kilometres of land in northern Cote d’Ivoire is located within trucking distance of Perseus’ Sissingué Gold Mine. Additionally, Perseus believes it has the financial capacity, technical expertise and in-country experience to advance the Bagoe and Liberty projects, and also explore the balance of Exore’s 2,000 square km land package.

What now?

Subject to the findings of an independent expert’s report, Exore’s board unanimously recommends that Exore shareholders vote in favour of the scheme. Along with Exore shareholder approval, the scheme is also subject to court approvals and TSX approval since Perseus is dual-listed on the Toronto Stock Exchange.

A scheme booklet will be sent to Exore shareholders in due course. It is anticipated that shareholders will then be able to vote on the scheme in late August or early September.

Commenting on the deal, Exore managing director Justin Tremain said:

“In addition to the premium implied by the transaction consideration, Exore shareholders have the opportunity to benefit, at a time of near record gold prices, from Perseus’s strong development and production capabilities which position Perseus as the ideal counterparty to unlock the future value of the company’s Bagoe project, whilst de-risking the need for Exore to discover additional ounces to support a standalone operation or fund a standalone development.”

More reading

• 7 roaring ASX mid-cap shares last week
• Why these ASX shares are well placed to outperform into next month

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.

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Treasurer Josh Frydenberg declared that we are in a recession for the first time in 30 years! But this isn’t stopping our market from rallying or brokers from upgrading some S&P/ASX 200 Index (Index:^AXJO) stocks.

Australian GDP contracted 0.3% in the March quarter and we need two consecutive quarters of declines before officially going into a recession.

But with all the signs point to another negative number for the current quarter, Frydenberg isn’t waiting.

Recession can’t slow the rally

The news didn’t faze investors with the top 200 stock benchmark jumping 1.8% as we head to the close with most sectors trading in the black.

But it isn’t too late to join the party. In fact, top brokers have only just upgraded these ASX stocks to “buy”.

Electronic and whitegoods retailer JB Hi-Fi Limited (ASX: JBH) got bumped up to “outperform” by Macquarie Group Ltd (ASX: MQG).

This partly explains why the JB Hi-Fi share price jumped 2.5% to $39.78 in late afternoon trade.

Earnings upgrade candidate

The broker spoke with industry insiders and the feedback it got was that there was strong demand for electronics.

“Industry feedback suggests almost all categories in consumer electronics and home appliances are in growth and margins are the best they have been in a long time, with consumers far less picky on brands and happy to pay full ticket prices,” said the broker.

“We had originally expected additional COVID-19 costs would outweigh less promotional activity, but volumes are said to be high enough to compensate these.”

Macquarie thinks there’s a good chance JB Hi-Fi will unveil a pleasant surprise when it reports its full year profit result in August. The broker’s price target on the stock is $41 a share.

Re-rating opportunity

Another stock that got upgraded today by UBS is gold miner Newcrest Mining Limited (ASX: NCM).

Many ASX gold producers like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) have been outperforming with the gold price, but Newcrest is lagging behind.

UBS thinks this isn’t justified and is urging investors to rotate into Newcrest, which it upgraded to “buy” from “neutral”. This is the first time the broker has rated Newcrest a buy since August 2012!

“We have changed our thesis on Newcrest based on our in-depth work on Red Chris and Havieron,” said the broker.

“The inclusion of these projects challenges market perceptions that production is peaking in 2020-21 which was also a component of our prior Sell thesis.

“These projects can materially change market estimates.”

UBS lifted its price target on Newcrest by 6% to $35 a share.

More reading

• These ASX 200 shares could be perfect for a retirement portfolio
• Why I’m not afraid to invest in shares during this recession
• Why JB Hi-Fi shares and 1 other are a buy for long-term growth
• Top brokers name 3 ASX 200 shares to buy right now
• Why Austal, Evolution, Newcrest, & Pro Medicus are tumbling lower

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited and Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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.

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