Stock Pick

Author: openjargon

  • BHP share price on watch after Anglo American takeover update

    Three miners stand together at a mine site studying documents with equipment in the background

    The BHP Group Ltd (ASX: BHP) share price will be one to watch on Thursday.

    That’s because the mining giant has just released an update on its proposed takeover of copper giant Anglo American plc (LSE: AAL).

    What’s the latest?

    BHP notes that on 22 May the Board of Anglo American granted an extension to the deadline for BHP to make a takeover offer.

    The Big Australian welcomed the extension as it provided it with the opportunity to engage with Anglo American about its concerns regarding BHP’s proposal. That proposal would see BHP acquire the miner for approximately $75 billion.

    According to the release, since the extension to the deadline was granted, BHP has continued to work extensively to address those matters. This has included several engagements with Anglo American and its advisers.

    BHP is ‘confident’

    This afternoon, BHP has released an update on its discussions with the Anglo American team and revealed that it is confident it can resolve matters. It said:

    BHP is confident that the measures it has proposed to the Board of Anglo American provide a viable pathway to resolve the matters raised by Anglo American and would support South African regulatory approvals. BHP has considered market precedent transactions and believes that the risks are quantifiable and manageable. BHP has already factored the costs associated with these risks into the offer ratio of its proposal.

    In addition, BHP has advised that it would be willing to discuss an appropriate reverse break fee. This would be payable by BHP on failure to achieve the necessary anti-trust and regulatory approvals, including in South Africa.

    Deadline extension requested

    BHP has requested that Anglo American extend the deadline again. It said:

    BHP believes that the proposed measures it has put forward provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination. BHP believes a further extension of the Deadline is required to allow for further engagement on its proposal.

    As things stand, there has been no word out of the Anglo American camp. However, with London only just starting to become active, it is possible that there could be a response in the next few hours.

    Until then, it will no doubt be a nervous wait for the deal makers at BHP that are aiming to turn the Big Australian into the world’s largest copper player.

    The post BHP share price on watch after Anglo American takeover update appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you buy Bhp Group shares, consider 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 Group wasn’t one of them.

    The online investing service he’s run for over 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 may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    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 Scott Phillips.

  • A US official says an ‘unacceptably high’ number of US weapons components have landed in Russian hands

    Russia's ballistic missiles on display at the Moscow Victory Day parade on May 9, 2024.
    Russia's ballistic missiles on display at the Moscow Victory Day parade on May 9, 2024.

    Cao Yang/Xinhua via Getty Images

    • US firms need to be vigilant with their exports, says Deputy National Security Advisor Daleep Singh.
    • Singh said an "unacceptably high" number of US components have been found in Russia's weapons.
    • Companies shouldn't become "unwitting cogs in Russia's arsenal of autocracy," Singh said on Tuesday.

    An "unacceptably high" number of US arms components are landing in Russian hands, a US official said on Tuesday.

    "The percentage of Russian battlefield weaponry with US or allied branded components is alarmingly and unacceptably high," said Daleep Singh, US deputy national security advisor for international economics.

    Singh was speaking at an event hosted by Washington think tank Brookings Institution on May 28 when he urged US tech companies to be more vigilant with their exports, per Bloomberg.

    "I want to issue an urgent call for corporate responsibility," Singh said.

    "Put your creativity and resources to work, know your customers, know their customers, and know the end users," he added. "Ensure that American firms are not unwitting cogs in Russia's arsenal of autocracy."

    The 48-year-old Harvard and MIT graduate is widely seen as the architect of the Biden administration's economic sanctions on Russia when it first invaded Ukraine in February 2022.

    Singh left the White House for the private sector in February 2022 and was named PGIM Fixed Income's chief global economist in June 2022. He rejoined the Biden administration in February this year.

    Singh's remarks on Tuesday spotlighted the difficulties the US faces in limiting the flow of its goods to Russia.

    According to an investigation conducted by Nikkei Asia last year, Russia still managed to acquire hundreds of millions of dollars worth of US-made chips in spite of prevailing sanctions. The outlet said most of the goods were routed into Russia through Hong Kong and China.

    "It took decades to build the financial sanctions architecture after 9/11. We've got to do that at warp speed for technology and goods companies," Singh said on Tuesday.

    Representatives for the State Department did not immediately respond to a request for comment from BI sent outside regular business hours.

    Read the original article on Business Insider

  • Small-cap expert reveals ASX mining stock with 150%+ upside

    A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today

    If you are on the lookout for some huge returns for your portfolio and have a high tolerance for risk, then it could be worth checking out the small cap ASX mining stock in this article.

    That’s because one analyst is tipping its shares to rise over 150% from where they trade today.

    Which small cap ASX mining stock could rocket?

    The ASX mining stock in question is Meteoric Resources NL (ASX: MEI).

    Meteoric Resources is a rare earth company that is progressing its flagship Caldeira Project in Minas Gerais, Brazil.

    Management highlights that the Caldeira Project is a true ionic adsorbed clay (IAC) deposit with above industry total rare earth oxide (TREO) grades and excellent metallurgical recoveries using a standard ammonium sulphate (AMSUL) wash flowsheet.

    It notes that these grade and recovery characteristics allow a simple flowsheet to be developed to produce a mixed rare earth carbonate (MREC) with an anticipated low capital and operating costs.

    In light of this, Meteoric Resources is aiming to become a significant volume, low-cost producer and is committed to supporting and integrating into western supply chain opportunities.

    Earlier this month, the company entered into a non-binding memorandum of understanding (MOU) with Neo Performance Materials Inc. (TSX: NEO) for offtake of 3,000 metric tonnes (MT) of TREO per year from the Caldeira Project.

    Neo is a manufacturer of advanced industrial materials. These are magnetic powders and magnets, specialty chemicals, metals, and alloys, which are critical to the performance of many everyday products and emerging technologies.

    According to the MOU, this offtake will be used by Neo to supply its magnet manufacturing plant in Estonia. Neo will also hold a right of first refusal to purchase additional material when the Caldeira Project produces more than 6,000 MT of TREO per year.

    Big returns

    According to the Bull, John Edwards from Novus Capital is feeling very positive about the small cap ASX mining stock and has named it as a buy this week.

    Commenting on the company, Edwards said:

    The company recently upgraded the resource estimate for its Caldeira rare earth element project in Brazil after completing additional infill diamond and aircore drilling. The global mineral resource now stands at 545 million tonnes at 2561 parts per million total rare earth oxides. These results support the Caldeira project’s potential to become a significant long-life supplier of rare earths, which are crucial for global electrification.

    Novus Capital currently has a buy rating and 50 cents price target on the ASX mining stock. Based on its current share price of 18.5 cents, this implies potential upside of 170% for investors over the next 12 months.

    The post Small-cap expert reveals ASX mining stock with 150%+ upside appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Meteoric Resources Nl right now?

    Before you buy Meteoric Resources Nl shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Meteoric Resources Nl wasn’t one of them.

    The online investing service he’s run for over 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 may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    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 positions in and has recommended Neo Performance Materials. 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.

  • Silver price gains are outshining gold thanks to China’s solar panel overproduction

    An employee assembles solar panels on the production line at the workshop of Trina Solar(Suqian) Optoelectronics Co., Ltd. on March 6, 2024 in Suqian, Jiangsu Province of China.
    Silver is a key raw material for solar panels.

    Wang Li/VCG/Getty Images

    • Silver prices have soared 35% this year, hitting 12-year highs at around $32 an ounce.
    • Silver's rise is driven by industrial demand, especially for solar panels amid green energy shifts.
    • China's strong silver demand boosts imports, with domestic prices higher than international rates.

    Record high gold prices are in the spotlight — but it's really the yellow metal's poorer cousin, silver, that's outperforming in the price rally.

    Spot silver prices have gained 35% this year-to-date to 12-year-highs. They're now around $32 an ounce.

    In comparison, spot gold prices are at around $2,350 per ounce, but have just gained 14% so far this year.

    While gold's bull run has been driven by central banks' desire to diversify their assets and a consumer flight to safety amid macroeconomic uncertainties — particularly in China — silver's dazzling performance this year is underpinned by industrial demand.

    To be sure, there are industrial uses for gold too, but as Morgan Stanley explained, half of all silver is used in heavy industry and technology.

    "The fact that silver has been outshining gold in recent weeks is due mostly to its application in manufacturing," wrote Daniela Hathorn, a senior market analyst at online trading platform Capital.com, on Tuesday.

    "Whilst it also attracts safe haven demand — even though not as much as its yellow counterpart — its industrial demand has been driving the moves higher given the resilience in manufacturing activity in the US," added Hathorn.

    Silver is used in solar panels and also in general industry

    In particular, silver is a key raw material for solar panels. They're in demand amid the world's transition to sustainable energy, and China has raced to manufacture them.

    China's silver imports hit a three-year high of 390 tons in December before falling back to over 340 tons in April — well above the monthly five-year average of 310 tons, according to Bloomberg on Wednesday.

    China's demand for silver is so strong that domestic prices of the precious metal are higher than international prices, which is likely to send more imports to the East Asian nation in the coming weeks, per Bloomberg.

    Global demand is also set to outstrip supply for the fourth straight year in 2024, according to the Silver Institute, an industry association.

    Other than solar panels, silver is also used in electronics, as catalysts in industrial processes, and in car parts.

    China is overproducing solar panels

    Solar panels are a sore spot between the West and China.

    The US, Europe, and their allies accuse China of unfair trade practices, including making and exporting so many solar panels — among other goods — that it's impacting their economies.

    Beijing has pushed back on the West's claims of overcapacity, saying they are aimed at containing China's economic growth.

    To be sure, there isn't overcapacity and overproduction in all sectors of China's industry, as a Bloomberg analysis in April found. The problem is mainly in areas where China already had the upper hand over the West, such as lower-tech goods and building materials.

    China's production of solar panels and batteries also exceeds the demand for them. But the competition doesn't extend to a key emerging area of contention: electric vehicles.

    The West's hawkish moves toward China now follow the East Asian giant's breakneck industrialization to its position as the factory of the world over the past four decades. That quick ascendance wiped out jobs and decimated communities elsewhere — a phenomenon three researchers termed "China shock."

    Read the original article on Business Insider

  • A brand-new F-35 crashed into a New Mexico hillside while flying from a Lockheed Martin facility to a US airbase

    An F-35 Lightning stealth jet performs a flypast during the commissioning ceremony for 809 Naval Air Squadron at RAF Marham in King's Lynn in Norfolk.
    An F-35 Lightning stealth jet performs a flypast during the commissioning ceremony for 809 Naval Air Squadron at RAF Marham in King's Lynn in Norfolk.

    Joe Giddens/PA Images via Getty Images

    • A new F-35B crashed in Albuquerque, New Mexico, on Tuesday, leaving its pilot injured.
    • The jet was a new model being transferred from a Lockheed Martin facility to the US military, per reports.
    • F-35s have been reported to cost up to $135 million each, but it's unclear how much this one was worth.

    An F-35B Lightning II fighter jet crashed near the Albuquerque International Sunport in New Mexico on Tuesday, and its pilot has been seriously injured, local authorities said.

    Fire rescue teams responded to the crash just before 2 p.m., and the pilot was sent to hospital while conscious, said Albuquerque Fire Rescue spokesperson Lt. Jason Fejer.

    https://platform.twitter.com/widgets.js

    Two other civilians on the scene were assessed for injuries and released.

    CBS News reported, citing two unnamed US officials, that the F-35 was a new developmental model being delivered to the US military from Lockheed Martin.

    The jet was being transferred from a Lockheed Martin facility at Naval Air Reserve Station in Fort Worth, Texas, to the Edwards Air Force Base in southern California, per the outlet.

    ABC News reported, citing one unnamed US official, that the jet crashed just after refueling in Albuquerque and was being flown by a pilot for a defense contract agency. The outlet also reported that the F-35 was new.

    "Flight operations have resumed, but check with your airline for flight status," airport officials wrote about three hours after the crash.

    Fejer told NBC affiliate KOB that local fire crews needed assistance from Kirkland Air Force Base.

    "We carry 500 gallons of water on our apparatus and small foam tanks, but it's no match for a jet fuel fire of that scope," said Fejer, per KOB.

    The Albuquerque-based outlet published footage of firefighters spraying water on the smoldering wreckage of the F-35 with a main road in view.

    Lockheed Martin and Kirkland Air Force Base did not immediately respond to requests for comment sent outside regular business hours by Business Insider.

    The last report of an F-35 crash was in September when a pilot ejected during training over South Carolina. The stealth fighter then went missing, flying about 80 miles before crashing.

    F-35Bs have been reported to cost up to $135 million per fighter, but it's unclear how much the jet that crashed on Tuesday was worth.

    Read the original article on Business Insider

  • Here are the top 10 ASX 200 shares today

    A woman's hand draws a stylised 'Top Ten' on a projected surface.

    The S&P/ASX 200 Index (ASX: XJO) endured an awful session this Wednesday, accelerating the market losses we saw yesterday.

    The ASX 200 had a rough start this morning, but investors stepped on the gas following the release of the latest inflation figures for the Australian economy. By the time the markets closed, the index had slumped a nasty 1.3% down to 7,665.6 points.

    This horrid hump day for ASX shares follows a mixed night over on Wall Street last night.

    The Dow Jones Industrial Average Index (DJX: .DJI) had a disappointing time, closing 0.55% lower.

    The Nasdaq Composite Index (NASDAQ: .IXIC) fared a lot better though, managing to pull off a 0.59% rise.

    Time to get back to the local markets though to assess the damage from today’s trading amongst the various ASX sectors.

    Winners and losers

    It was a dark day for many stocks today, with not one sector pulling off a gain.

    The worst place to be in today was in consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was slammed with a 2.08% sell-off.

    Industrial stocks also had a shocker, with the S&P/ASX 200 Industrials Index (ASX: XNJ) tanking 1.87%.

    Financial shares had a horrific day too. The S&P/ASX 200 Financials Index (ASX: XFJ) cratered 1.74%.

    Consumer discretionary stocks weren’t much better. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) ended up plunging 1.45%.

    Next up was the real estate investment trust (REIT) sector. The S&P/ASX 200 A-REIT Index (ASX: XPJ) sank 1.25%.

    Healthcare shares weren’t exactly brimming with vitality either, evidenced by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 1.23% dip.

    Communications stocks were just behind that. The S&P/ASX 200 Communication Services Index (ASX: XTJ) dove 1.22%.

    Utilities shares weren’t riding to the rescue, with the S&P/ASX 200 Utilities Index (ASX: XUJ) losing 1% of its value.

    ASX mining stocks also counted themselves on the losers list. The S&P/ASX 200 Materials Index (ASX: XMJ) was given a 0.7% slapdown by investors today.

    Energy shares were hot on miners’ tails, with the S&P/ASX 200 Energy Index (ASX: XEJ) receiving a 0.6% downgrade.

    Tech stocks were yet another sore spot. The S&P/ASX 200 Information Technology Index (ASX: XIJ) slid 0.47% lower by day’s end.

    Finally, we had gold shares. But this sector didn’t exactly live up to its safe haven reputation, with the All Ordinaries Gold Index (ASX: XGD) slipping 0.07%. Then again, perhaps it did.

    Top 10 ASX 200 shares countdown

    Emerging out of the sea of red ink today was index winner and healthcare share Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH).

    Fisher & Paykel stock rose by a confident 3.69% today up to $26.39. This followed the company’s latest earnings results, which clearly impressed the markets.

    Here’s a glance at the rest of the best shares to have owned this Wednesday:

    ASX-listed company Share price Price change
    Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) $26.39 3.69%
    Alumina Ltd (ASX: AWC) $1.80 3.45%
    Genesis Minerals Ltd(ASX: GMD) $1.91 3.24%
    HUB24 Ltd (ASX: HUB) $41.63 3.20%
    ARB Corporation Ltd (ASX: ARB) $37.35 2.47%
    Capricorn Metals Ltd (ASX: CMM) $4.79 2.35%
    Sandfire Resources Ltd (ASX: SFR) $9.69 2.11%
    Data#3 Ltd (ASX: DTL) $7.56 1.89%
    IRESS Ltd (ASX: IRE) $7.87 1.81%
    West African Resources Ltd (ASX: WAF) $1.475 1.72%

    Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Arb Corporation right now?

    Before you buy Arb Corporation shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Arb Corporation wasn’t one of them.

    The online investing service he’s run for over 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 may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Sebastian Bowen 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 ARB Corporation and Hub24. The Motley Fool Australia has recommended ARB Corporation and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • IAG shares caught in a storm as millions join ‘loyalty’ lawsuit

    A woman with a sad face stands under a shredded umbrella in a grey thunderstorm

    Clouds have gathered around the shares of Insurance Australia Group Ltd (ASX: IAG) today. As if sticky inflation figures weren’t troublesome enough, the insurance giant is also coming to grips with a new class-action lawsuit backed by millions of people.

    As the day winds down, shares in the $15 billion insurer are skating 2.5% lower to $6.25. The uninspiring performance makes IAG the worst performer in the financial sector, outpacing losses across the big four banks.

    Allegations of exploited loyalty

    Following an investigation, the law firm Slater and Gordon served IAG with a class action claim in the Supreme Court of Victoria yesterday.

    The firm will represent millions of policyholders who held insurance policies from RACV, SGIO, and SGIC — the last two of which are now encompassed under the NRMA brand — between 2018 and 2024. All three insurance companies are subsidiaries of IAG.

    At the core of the claim is the allegation that IAG used an algorithm to determine policy pricing based on loyalty. Rather than being rewarded for their proclivity to stay, customers may have been charged a higher premium — departing from the ‘loyalty discounts’ sold to customers, the claim alleges.

    Explaining further, Slater and Gordon’s Ben Hardwick said:

    The higher the computer program identified a customer’s perceived price elasticity, the lower the annual premium increases the customer would receive, so loyal customers who were assessed as having low price elasticity and were unlikely to leave, faced steeper increases to their premiums.

    In an interview with ABC News, Hardwick noted many affected customers could be entitled to more than $1,000 in compensation.

    IAG addressed the claim in a release made last night. In the announcement, the insurance provider acknowledged Slater and Gordon’s claim before dismissing it.

    As IAG announced on 25 August 2023, IAL [Insurance Australia Limited] and IMA [Insurance Manufacturers of Australia Pty Limited] are defending the ASIC proceedings. IAL and IMA maintain they have delivered on loyalty promises made to customers and do not agree that they have misled customers about the extent of the discounts they would receive.

    IAG shares retreat from record zone

    The possible implications of the lawsuit have dampened the mood around the IAG share price.

    Before today, the value of the insurers’ shares was riding high at a closing price of $6.41. Another 2% rise and the company’s share price would have reached its highest point since before the COVID crash in 2020.

    Nevertheless, IAG shares are still faring well when we step back. Up 19.8% compared to a year ago, IAG shareholders are doing better than many others over this timeframe. Although, the performance is only slightly better than the 17.5% return across the financials sector.

    The post IAG shares caught in a storm as millions join ‘loyalty’ lawsuit appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Insurance Australia Group Limited right now?

    Before you buy Insurance Australia Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Insurance Australia Group Limited wasn’t one of them.

    The online investing service he’s run for over 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 may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Mitchell Lawler 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.

  • Ukraine just gave us the first official look at one of its ‘FrankenSAMs,’ Kyiv’s air defense mash-ups of US and Soviet weaponry

    Photos of a Buk M-1 launcher identified by Ukrainian media as a "FrankenSAM" were posted by the East Air Command on Monday.
    Photos of a Buk M-1 launcher identified by Ukrainian media as a "FrankenSAM" were posted by the East Air Command on Monday.

    Ukrainian East Air Command

    • Ukraine's East Air Command unveiled photos of a "FrankenSAM," a blend of Soviet and US weapons.
    • The combined air defense systems were announced in October, but this is the first time one was officially revealed.
    • Ukraine and the US have been working on "FrankenSAM" projects to make use of Kyiv's older inventory.

    Ukraine on Monday unveiled the first official photos of a "FrankenSAM," a hybrid air defense system that combines Soviet launchers with US missiles.

    The East Air Command posted the photos on its Facebook page with an interview of an officer in charge of the defense system.

    Two images show a self-propelled Buk-M1 launcher with camouflage netting draped over its top, obscuring parts of the system.

    Ukrainian defense news outlets identified the system as a "FrankenSAM" fitted with RIM-7 missiles, noting that the Buk appeared relatively unchanged from the outside, with its original launch and radar dome intact.

    Two other photos show debris from destroyed drones, with the interviewed officer saying his crew took out a Lancet drone and an Orlan-10 drone — indicating that the "FrankenSAMs" can be deployed to destroy smaller targets.

    Ukraine has been experimenting with US engineers for months on using its existing inventory of Soviet-era Buk systems to fire old RIM-7 Sea Sparrow missiles supplied by Washington. It's difficult for Kyiv to acquire munitions for its Buk launchers because Russia manufactures them.

    And so, the "FrankenSAM" — a portmanteau crossing Frankenstein's monster and surface-to-air missile defense systems — was born, with officials first mentioning the hybrid design in October.

    The New York Times reported that Ukraine and the US were also trying to pair AIM-9M Sidewinder air-to-air missiles with Soviet radar systems and Patriot missiles with Ukrainian-made radar systems.

    It's an experimental marriage of systems built separately on opposing sides of the Cold War, but one that appears to be working. The "FrankenSAM" scored its first reported kill in January, when Ukraine said it took out a Shahed drone at 5½ miles.

    According to Ukraine's Air Force, the RIM-7 missiles, developed in the 1960s, have a shorter range than the traditional Soviet-made munitions the Buk was designed to fire.

    In November, a spokesperson for the force at the time, Yuriy Ignat, told the Ukrainian outlet New Voice that the "FrankenSAM" would be effective in "a small radius."

    The RIM-7's range is about 12.5 miles in flat distance and about 9.3 miles in altitude, while the Soviet 9M38 can hit targets about 18 miles away and an altitude of 12 miles.

    The official photos of the "FrankenSAM" were posted about three weeks after Russian forces claimed to have destroyed a Ukrainian Buk M-1 with drones in Kharkiv. A video published online appeared to show the Buk with custom-mounted missiles.

    Read the original article on Business Insider

  • How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now

    Two excited woman pointing out a bargain opportunity on a laptop.

    Let’s assume you have an empty or small ASX share portfolio, but you want to grow it into a $300k portfolio as quickly as possible. Cheap ASX shares might just be the best way to do it.

    Building an ASX share portfolio from scratch (or close to it) is no easy feat, let alone getting to a portfolio worth $300,000. But I think it is doable with a lot of patience and disciplined investing.

    But choosing the right investments at the lowest possible price is essential. After all, whilst we all like it when our shares rise in value, the more expensive a company is, the lower the potential returns you might receive.

    So here’s what I would do if I were starting out on an investing journey today.

    Start with index funds

    First up, I would invest some of the cash I had saved up into a simple index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ). I believe that a fund like this one is a great place to invest at any point in the market cycle.

    Since IOZ represents a slice of the entire Australian share market, you are always going to get some ASX shares that are cheap, and others that are expensive. By using a dollar-cost averaging strategy, you can further ensure that you are never paying a price that’s overly expensive for these ASX shares, at least for too long.

    If the iShares ASX 200 ETF continues to hit an annual average return of 7.91% per annum, as it has over the five years to 30 April, a monthly investment of $500 will see you hit $300k within 21 years. Of course, we should never assume an investment returns what it has in the past into the future. But you still get a good shot at a decent long-term return with this index fund in my view.

    Looking for cheap ASX shares

    But what about some individual ASX shares? Well, despite the volatile run the Australian share market has had over the past couple of months, the reality is that the ASX 200 Index is still pretty close to its most recent all-time high. While this makes finding cheap ASX shares a little more difficult, you can start by looking for blue-chip stocks that are well off their last 52-week highs.

    Telstra Group Ltd (ASX: TLS) might be a good example. Telstra is today languishing at $3.46 a share at the time of writing. That’s down more than 22% from its last 52-week high.

    At this share price, Telstra is trading on a dividend yield of 5.05%. That means you’d only need around 2% worth of capital growth per annum to make this company a market beater going forward (assuming Telstra’s dividends are at least maintained).

    Woolworths Group Ltd (ASX: WOW) is another ASX 200 share that I think is looking pretty cheap right now. This grocer is also down more than 22% from its last 52-week high. This can be put down to a number of factors, including a recent lacklustre earnings report and the messy departure of its CEO.

    But these falls have left Woolworths shares at the cheapest levels we’ve seen in years. The company is currently sporting a relatively high dividend yield of 3.4% for one. But Woolworths is also trading close to its rival Coles Group Ltd (ASX: COL) on a price-to-earnings (P/E) basis – a rare occurrence.

    Buying $1 for 80 cents

    A final way I personally like to buy cheap ASX shares is by going through listed investment companies (LICs).

    LICs are companies that run a portfolio of underlying assets (usually other shares) on behalf of their shareholders. Because of this unique structure, the value of a LIC can actually be cheaper than the sum of its underlying portfolio.

    A good example right now is one of my favourite LICs – MFF Capital Investments Ltd (ASX: MFF). MFF Capital owns a portfolio that houses some of the world’s best companies, including Amazon, Mastercard, Visa and Alphabet.

    Earlier this week, MFF told us that, as of 24 May, its portfolio was worth $4.27 per share before taking taxes into account and $3.57 a share post-tax. Yet today, you can pick up MFF shares for just $3.52 each at the time of writing.

    Foolish takeaway

    There’s no foolproof way of getting from nothing to a portfolio worth $300k. However, I think the best way to approach this task is by using a combination of index fund investing and finding cheap ASX shares.

    The latter is easier said than done, but with practice and a willingness to not accept the market’s pricing as gospel, it can be done.

    The post How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now 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. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Mastercard, Mff Capital Investments, Telstra Group, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Domino’s share price is set to soar 22%, say top brokers

    Young couple having pizza on lunch break at workplace.

    The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is swapping hands at $36.48 apiece in late afternoon trading on Wednesday.

    The past year of trade has been challenging for Domino’s.

    Its share price is down 23% in the past 12 months. It recently nudged 52-week lows of $36.24. And it is trading 38% lower this year to date.

    Despite the challenges, a number of analysts believe shares in the pizza company have the potential to rise by 22%.

    Let’s dive into why this ASX stock is catching analysts’ eyes and why investors should take note.

    Why could Domino’s share price increase?

    Analysts at investment bank Citi upgraded their view on the pizza giant in a recent note, according to The Australian.

    The broker upgraded Domino’s to a buy rating with a target price of $44.50. If Citi’s analysis proves accurate, that’s a share price surge of 22%.

    Analyst Sam Teeger said Citi was “cautiously optimistic” about Domino’s prospects for FY 2025 following the company’s investor tour in France.

    According to Teeger, the company has struggled recently but “better days could be ahead” for the beloved pizza chain. This optimism spurred the upgraded rating.

    Spotlight on share price

    Citi isn’t the only broker that is bullish on the Domino’s share price. Ord Minnett also believes Domino’s has major upside potential.

    The broker has an accumulate rating and a price target of $44.40 on Domino’s shares, implying a similar increase from the current price.

    This optimistic outlook is based on expected growth in sales and earnings as the company adapts to changing consumer preferences and market conditions.

    But despite the broker optimism, Domino’s share price has slipped 4% into the red this past month. What gives?

    Why Domino’s shares are moving sideways

    Domino’s share price briefly rose following the Federal Budget announcement earlier in May. According to my colleague James, the government’s plans to increase disposable income could boost consumer spending, benefiting Domino’s sales in Australia.

    However, there are risks to consider in this investment debate. Morgan Stanley analysis suggests that the rising popularity of appetite-suppressing drugs like Ozempic could potentially impact the consumption of high-calorie foods (hint: pizza).

    The broker estimates that “ice cream, cakes, cookies, candy, chocolate, frozen pizzas, chips, and regular sodas could see 4% to 5% reductions in consumption by 2035”.

    “Quick service restaurants with a focus on unhealthy food items, including fried chicken and pizza, present with greater risks from a consumption standpoint,” it added in its report.

    This could pose a challenge for Domino’s, as the fast food industry might face reduced demand for items like pizza, according to the broker.

    Foolish takeaway

    If Citi and Ord Minnet are right, Domino’s might present as a promising investment opportunity.

    With both brokers predicting a 22% rise in the share price, it could be wise to watch this name. As always, however, stay mindful of the potential risks and do your research.

    The post Domino’s share price is set to soar 22%, say top brokers 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. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Zach Bristow 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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.