Stock Pick

Author: openjargon

  • Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.45% to 7,716 points

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Boss Energy Ltd (ASX: BOE)

    The Boss Energy share price is down 1.5% to $5.60. This follows broad weakness in the uranium industry today which has seen most uranium shares drop into the red. Not even a bullish broker note out of Macquarie has been able to keep Boss Energy shares from falling today. This morning, the broker retained its outperform rating and $6.00 price target on the company’s shares. With potential output of 3 million pounds annually, Macquarie believes Boss Energy is well-positioned to benefit from strong uranium prices.

    Meteoric Resources NL (ASX: MEI)

    The Meteoric Resources share price is down 7% to 19.5 cents. Investors have been selling this rare earths developer’s shares following the release of an updated mineral resources estimate for its Caldeira Project in Brazil. The company announced a 150% increase in the resource estimate to 545 million tonnes (Mt) at 2,561 parts per million (ppm) total rare earth oxides (TREO). It seems that the market was expecting an even larger increase. Nevertheless, management was pleased and described it as “an outstanding result.”

    Pantoro Ltd (ASX: PNR)

    The Pantoro share price is down 7% to 8 cents. This has been driven by the completion of the gold miner’s capital raising this morning. Pantoro has received firm commitments for an upsized institutional two-tranche placement of new fully paid ordinary shares to raise $100 million before costs. The company is raising the funds at a 7% discount of 8 cents per new share. Proceeds will be applied to restructure Pantoro’s balance sheet. In addition, the company will accelerate exploration and resource definition drilling programmes focused on establishing a third high grade underground mine. It will also commence studies for the re-commencement of mining in the high-grade Norseman Mainfield.

    Worley Ltd (ASX: WOR)

    The Worley share price is down 2% to $15.07. This follows the release of a trading update from the engineering company at its investor day event. It seems that the market was expecting a guidance upgrade. However, Worley has stated that “the outlook presented at H1 FY24 results remains consistent with what we’re expecting for FY24, subject to no deterioration in current market conditions.”

    The post Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today 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 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.

  • Should you buy Fortescue shares for that fat 8% dividend yield?

    Woman with $50 notes in her hand thinking, symbolising dividends.

    It hasn’t been a great day for Fortescue Ltd (ASX: FMG) shares so far this Tuesday. At present, the Fortescue share price has fallen by 0.46%, leaving it at $25.93 a pop. This drop for the ASX 200 iron ore miner is even more than what the broader market is currently suffering, with the S&P/ASX 200 Index (ASX: XJO) presently down 0.32%.

    But this share price drop, while likely unwelcomed by shareholders, has given Fortescue shares a boost to their dividend yield.

    As any good investor knows, when a company’s shares go down, the trailing dividend yield you can buy them on rises. After today’s drop, the current dividend yield on Fortescue shares is sitting at a whopping 8.02%.

    With Fortescue’s dividends typically coming with full franking credits attached, this trailing dividend yield grosses up to an even more impressive 11.46%.

    But good dividend investors also know that a company’s dividend yield always reflects the past not the future. So are Fortescue shares a buy for this 8% fully-franked dividend yield today? Or is this a classic case of a dividend trap that investors should avoid?

    Should you buy Fortescue shares for that 8% dividend yield?

    All ASX shares that pay dividends are inherently unpredictable when it comes to future income. That’s because no company is ever under any kind of obligation to fund a dividend. Let alone keep it at last year’s levels. It’s at the complete discretion of a company’s management to decide what kinds of dividends they pay out and how frequently.

    However, in Fortescue’s case, the dividends are even more unpredictable than your average ASX dividend share. That’s because Fortescue, as an iron ore miner, is a highly cyclical stock. The company’s profitability rests almost entirely on the price of iron ore at any given moment. That’s completely out of Fortescue’s control, of course.

    To illustrate this in action, Fortescue shares went from paying out an annual dividend of 23 cents per share in 2018 to a whopping $3.58 per share in 2021 after the price of iron ore went through the roof. 2023 saw the company pay out less than half of what it did in 2021, with an annual total of $1.75 in dividends per share.

    But what about the future? Well, it looks as though this cyclicality in the Fortescue dividend will continue if a recent analysis from ASX broker UBS is to be believed.

    ASX brokers predict dividend drought

    As my Fool colleague covered earlier this month, UBS is forecasting some wildly different dividend yields that will stem from Fortescue over the coming years. For example, UBS is predicting that Fortescue is currently on a forward, grossed-up dividend yield of 7.1% for FY2025. But this falls to 5.3% for FY2026 and just 4.5% for FY2027.

    That implies a lot of dividend cuts are on their way to Fortescue investors.

    Unfortunately for Fortescue bulls, another ASX broker in Goldman Sachs is currently holding similar sentiments. Goldman has recently given the Fortescue share price a ‘sell’ rating, alongside a 12-month share price target of $16.90. That would see investors lose close to a third of their investment capital from today’s pricing if accurate.

    Goldman argues that Fortescue’s ambitious plans to decarbonise its operations and expand production and use of green hydrogen “reduces the dividend payout ratio from the current ~65% in 1H FY24 to ~50% from FY25 onwards (bottom end of the 50-80% guidance range)”.

    So it seems that at least these two ASX experts are united in expecting reduced income from Fortescue shares going forward. No doubt investors hoping for an 8% return on their cash today will find these assessments bitterly disappointing. But we’ll have to wait and see what happens.

    The post Should you buy Fortescue shares for that fat 8% dividend yield? appeared first on The Motley Fool Australia.

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

    Before you buy Fortescue Metals 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 Fortescue Metals 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 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 Goldman Sachs Group. 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.

  • NATO member Estonia is ‘seriously’ discussing sending troops to fill non-combat roles in Ukraine, security advisor says

    A soldier kneels in the snow in the forest next to a British Challenger 2 main battle tank (front) during a NATO exercise in Estonia.
    A soldier kneels in the snow in the forest next to a British Challenger 2 main battle tank (front) during a NATO exercise in Estonia.

    Alexander Welscher/picture alliance via Getty Images

    • An Estonian official told Breaking Defense that his government is "seriously" discussing putting troops in Ukraine.
    • Those soldiers would be put away from the frontlines and relieve Ukrainian troops of non-combat roles, he said.
    • Estonia has around 4,200 active-duty soldiers, with a core reservist call-up of 38,000 more people.

    Estonia has been "seriously" discussing sending troops to Ukraine in roles positioned away from the front lines, per a national security official.

    Madis Roll, national security advisor to Estonia's president, told military news outlet Breaking Defense that his country's leaders were assessing the viability of sending Estonian soldiers to "rear" roles that wouldn't see direct combat in Ukraine.

    Such a move would help relieve Ukraine's manpower crunch and allow it to send more soldiers to the front lines.

    And while Estonia, a North Atlantic Treaty Organization country, prefers to act together with the alliance's major members, it's also not closed to the idea of jumping in with a smaller group of allies, Roll said.

    "Discussions are ongoing," Roll told Breaking Defense. "We should be looking at all the possibilities. We shouldn't have our minds restricted as to what we can do."

    Breaking Defense reported that Roll made these comments on Friday, just days after the country's defense chief, Gen. Martin Herem, told the outlet that Estonia had internally talked about sending troops to Ukraine.

    But there hadn't been a "serious discussion" due to domestic political concerns, Herem told the military news site on May 9.

    Estonia is one of the geographically closest NATO members to Russia, with an eastern border shared with the Russian regions Pskov and Leningrad. Its military relies largely on reservist units, with about 4,200 permanent staff and 38,000 reserve troops ready for wartime operations.

    Additional reserves bring the total number of Estonians with military training to around 230,000 of its 1.3 million population, per the official defense forces website.

    More NATO members are thinking about troops in Ukraine

    Tallinn is now joining a growing chorus of alliance members touting the possibility of backing Ukraine's forces with troops, with French President Emmanuel Macron drawing Moscow's ire for repeatedly floating such a strategy.

    The Baltic States are following suit. Lithuanian Prime Minister Ingrida Šimonytė told The Financial Times on May 8 that she had the authority from parliament to deploy troops to Ukraine for training, but that Kyiv had not put forward such a request yet.

    NATO needs the consensus of its members to send troops as an alliance to a war zone, but individual states may deploy their own forces as they see fit.

    Russia, meanwhile, has said that any significant NATO troop presence in Ukraine would be seen as a major escalation, regularly bringing up the threat of nuclear war.

    But its gains in Ukraine, where Kyiv for months suffered from ammunition undersupply and now faces a widening manpower disadvantage, have spooked Western Europe.

    States bordering Russia's western flank, like Finland and Estonia, are cautioning that a Ukrainian defeat means they may soon be the next targets of Russian aggression.

    Estonia has given Ukraine about $640 million worth of military, humanitarian, and financial aid, according to the Kiel Institute for the World Economy's aid tracker.

    That's about 1.6% of its total GDP, more than any other nation that has supplied Ukraine with aid. The latest tranche of US aid to Kyiv, of $61 billion, is worth around 0.2% of American GDP.

    Read the original article on Business Insider

  • Today is Mark Zuckerberg’s 40th birthday. Here’s how his wealth has grown over the past decade.

    Mark Zuckerberg
    Mark Zuckerberg's net worth has grown by more than 700% over the last 10 years.

    Kevin Dietsch/Getty Images

    • Mark Zuckerberg is celebrating his 40th birthday — and he's had quite a decade.
    • Over the past 10 years, his wealth has surged to $169 billion, largely due to his 13% stake in Meta.
    • The CEO's lifestyle has also evolved. He has a $200 million real estate portfolio and a megayacht.

    May 14, 2024, marks Mark Zuckerberg's 40th birthday — and he's had quite the decade.

    Zuckerberg's children were born while he was in his 30s, and he earned a degree from Harvard and a blue belt in jiu-jitsu. He also added more than $140 billion to his fortune.

    Zuckerberg's net worth of $169 billion makes him the fourth richest person in the world, according to Bloomberg. As of May 16, 2014, he was worth $26.1 billion.

    Zuckerberg owns most of Facebook with his 13% stake in its parent company Meta, and nearly all of his fortune — $164 billion worth — is tied to it. The company's stock has grown more than 700% over the last decade.

    The company has gone from being Facebook, a website that had only traded publicly for two years, to Meta. It's the world's seventh-largest company and controls sizable portions of the world's social media platforms and advertising economy. The number of daily active users on Facebook has more than tripled, from 890 million at the end of 2014 to 2.11 billion at the end of 2023.

    And while he's far from the flashiest of the centi-billionaires, Zuckerberg's lifestyle has changed in conjunction with his wealth.

    The Meta CEO has amassed a real estate portfolio with an assessed value of about $200 million. He and his wife, Priscilla Chan, spent $50 million buying up properties in Palo Alto, and he spent about $59 million on two adjacent Lake Tahoe properties.

    He's purchased at least 1,200 acres in Kauai, Hawaii, including about 750 acres for which he reportedly paid $100 million and 600 acres for which he paid $53 million. On part of the property, Zuckerberg is reportedly building a $100 million doomsday compound, including a 5,000-square-foot underground bunker that will be self-contained, with its own energy, food, and water supply. Try to rephrase 2nd sentence to contain phrase "Zuckerberg Hawaii compound/bunker" — that's ideal anchor text. I'm stuck!

    Zuckerberg also loves his water toys. While he went viral for his $12,000 electric surfboard, he more recently splurged on a much more expensive plaything: the megayacht Launchpad, which made her maiden voyage in March. Very few details of the ship have been made public, but she reportedly cost about $300 million — and will cost six figures a year to maintain.

    His spending isn't all about pleasure. In 2015, he committed to giving away 99% of his Facebook stock during his lifetime. The Chan Zuckerberg Initiative that he and his wife run is committed to "eradicating disease and improving education, to addressing the needs of our local communities."

    It's yet to be seen how exactly he celebrates the milestone birthday, but if his latest appearances are any indication, a new chain may be on his wish list.

    Read the original article on Business Insider

  • Elon Musk realized he needs his Supercharger team after all, weeks after axing the whole division

    Tesla CEO Elon Musk said he was dissolving the team behind the company's Supercharger charging-station network last month.
    Tesla CEO Elon Musk said he was dissolving the team behind the company's Supercharger charging-station network last month.

    Apu Gomes via Getty Images; Smith Collection/Gado via Getty Images

    • It looks like Elon Musk realized he needs his Supercharger team after all.
    • The mercurial billionaire axed the entire charging infrastructure team two weeks ago.
    • But Musk is rehiring some of the team's members, including the charging director for North America.

    Tesla CEO Elon Musk is re-hiring some of the workers from the Supercharger team he dissolved two weeks ago, Bloomberg reported on Monday.

    Last month, Musk said in an email to his staff that he was dissolving the team behind Tesla's Supercharger charging-station network, per The Information. But it seems that Musk has backtracked on his decision.

    Musk has brought back some Supercharger workers, including Tesla's charging director for North America, Max de Zegher, Bloomberg reported, citing people familiar with the matter.

    The longtime Tesla employee joined the company in 2013 and has spent more than a decade with EV giant, per de Zegher's LinkedIn profile. De Zegher started out in sales before focusing on the Tesla's charging infrastructure in the UK, Europe, and North America.

    Representatives for Musk and de Zegher didn't respond to Bloomberg's requests for comment. The outlet said it wasn't immediately clear how many Supercharger workers were brought back.

    Musk's initial decision to lay off the Supercharger team shocked Tesla's investors, partners, and customers. In particular, major automakers, like General Motors, Ford, and Mercedes-Benz, who adopted Tesla's charging tech were left hanging by Musk's move.

    "There's no one remaining from the team that we worked with. In terms of formal communication from Tesla, we haven't received anything," Aaron Luque, CEO of Tesla charger installer Envirospark, told BI's Tom Carter.

    A slowdown in the rollout of Tesla's charging infrastructure would be a setback for President Joe Biden's clean energy agenda as well. In February 2022, the Biden administration said that it was handing out five billion dollars in funding to build 500,000 EV chargers in the US.

    Tesla is a huge beneficiary of federal funding, winning almost 13% of all EV charging awards from Biden's bipartisan infrastructure law, Politico reported in February, citing data it reviewed. The company currently has over 50,000 Superchargers globally.

    The backlash toward the Supercharger's team dissolution might have been a critical factor in changing Musk's mind. The billionaire spent the past two weeks engaging in damage control, where he repeatedly assured that Tesla's superchargers weren't going anywhere.

    "Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations," Musk said in an X post on April 30.

    And on Friday, Musk took to his social media platform once more to clarify that Tesla was still committed to building out its Superchargers.

    "Just to reiterate: Tesla will spend well over $500M expanding our Supercharger network to create thousands of NEW chargers this year," Musk wrote. "That's just on new sites and expansions, not counting operations costs, which are much higher."

    Musk's seeming about-turn on the Tesla's Supercharger business underscores the challenges he faces in trying to reposition the automaker as a bleeding edge software company.

    On April 5, Musk announced in an X post that Tesla would be launching its long-awaited robotaxi on August 8. The Tesla chief even told investors last month that the company's Optimus robots could become the company's most valuable asset.

    "We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, fundamentally, it's just the wrong framework," Musk said in an earnings call on April 23.

    Representatives for Tesla didn't immediately respond to a request for comment from BI sent outside regular business hours.

    Read the original article on Business Insider

  • Why is the Transurban share price lagging the market today?

    Busy freeway and tollway at dusk

    It hasn’t been a pleasant Tuesday for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far today. At the time of writing, the ASX 200 has fallen by 0.25%, down to around 7,730 points. But the Transurban Group (ASX: TCL) share price is faring even worse than that.

    The ASX 200 toll roads stock closed at $12.75 a share yesterday afternoon. But this morning, Transurban shares opened at $12.72 before dropping a chunky 1.06% to the $12.62 the company is now commanding.

    This drop comes after Transurban released an ASX update this morning before market open. This outlined a new “operating model” for its senior management. These changes have reportedly been made to “support the Group’s strategic growth agenda”.

    ASX 200 stock announces management shakeup

    Under the new model, four new executive roles are to be created. Those are Chief Commercial Officer, Group Executive Australian Markets, Group Executive Delivery and Risk, and Group Executive Corporate Affairs.

    In exchange, the roles of Group Executive NSW, Group Executive Queensland and Group Executive Victoria will no longer exist at Transurban.

    The Group Executive Delivery and Risk and Group Executive Corporate Affairs positions are yet to be filled, with an executive search now underway. However, the current Group Executive Delivery and Risk partner, Hugh Wehby, will be stepping into the Chief Commercial Officer position. Nicole Green, current acting Group Executive Victoria, is taking on the Group Executive Australian Markets role.

    There will be no changes to Transurban’s Chief Financial Officer, Group Executive People and Culture, Group Executive Customer and Technology, or President North America roles.

    Transurban CEO Michelle Jablko said that the new model would help Tranurban “build on its strong foundation with further growth and a strong stakeholder focus”. Here’s some more of what she said in the statement:

    I am delighted that Hugh Wehby, Group Executive Partners, Delivery and Risk has been appointed Chief
    Commercial Officer, and Nicole Green, Acting Group Executive Victoria, has been appointed Group Executive Australian Markets…

    There are significant opportunities ahead, but we need to evolve the way we grow. These changes to how we operate will help achieve that, by removing complexity and creating further simplicity and efficiency that will best position us going forward…

    I would like to thank Sue Johnson and Michele Huey for the roles they have played in our growth over many years

    Huey and Johnson are currently serving as Transuraban’s Group Executive NSW and Group Executive Queensland, respectively.

    Transurban share price snapshot

    It seems investors aren’t exactly welcoming this shakeup. That’s judging by the reaction of the Transurban share price today.

    Transurban shares have had a tough year. The toll road operator is now down 8.6% year to date in 2024 (including today’s dip). As well as down 15.64% over the past 12 months. Check that all out for yourself below:

    At the current Transurban share price, this ASX 200 stock has a trailing dividend yield of 4.86%.

    The post Why is the Transurban share price lagging the market today? appeared first on The Motley Fool Australia.

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

    Before you buy Transurban 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 Transurban 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 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 Transurban Group. 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.

  • 2 reasons Thursday is shaping up to be a huge day for the ASX 200

    Thursday is shaping up to be a huge day for S&P/ASX 200 Index (ASX: XJO) investors.

    Yes, yes, I know the Federal budget comes out tonight.

    And depending on what is and isn’t included, this could have some major implications for ASX 200 shares at market open tomorrow.

    With the government expected to up its support for miners in the critical minerals space, this will be one sector to watch.

    Now here are two reasons Thursday could see some even bigger moves among ASX 200 stocks.

    What’s happening on Thursday?

    At market open on Thursday, ASX 200 investors will get some fresh insight into how the Federal Reserve’s inflation battle is going in the United States.

    The latest consumer price index (CPI) data will be released on Wednesday in the US, overnight Aussie time.

    “Analysts anticipate a downward trend in inflation, marking a pivotal moment in the economic landscape,” Josh Gilbert, market analyst at eToro said.

    With inflation in the world’s top economy proving to be unexpectedly sticky, the Fed has been holding the official interest rate at 20-year highs. And markets have been pushing back the timing and pace of any pending interest rate cuts.

    According to Gilbert:

    The upcoming CPI reading carries significant implications, especially amidst anticipation of a rebound in inflation. While markets initially eyed July for potential rate cuts, the outcome of this week’s data could alter this trajectory.

    Gilbert noted that if US inflation does ease in April, this could put “rate cuts back on the agenda”. This would also likely offer some healthy tailwinds for the ASX 200 on Thursday.

    Indeed, Fundstrat Global’s Tom Lee is recommending clients buy stocks ahead of the CPI data release.

    According to Lee (quoted by The Australian Financial Review):

    We think an ‘in-line’ April CPI will cause the market’s expected number of Fed cuts (by year-end 2024) to rise from about 1.8 towards 2.5 cuts or more. The rationale, in our view, is that this April CPI will highlight the possibility that auto insurance’s disproportionate impact on CPI is eroding.

    The key in April CPI remains auto insurance. This rose +2.58 per cent in March and was the singular largest contributor to the ‘hot’ March reading (miss). It is not entirely clear if April will show an improvement. But we think each month that passes, this probability rises that the surge in auto insurance is ebbing.

    What else could materially move the ASX 200 on Thursday?

    The second thing that could either boost or pressure the ASX 200 on Thursday is the latest Aussie unemployment data.

    This will largely be a case of good news for workers is bad news for the stock market. If the labour market data is robust this will make the RBA’s own inflation battle trickier and push out the likelihood of any near-term interest rate cuts in Australia.

    Gilbert believes, however, that unemployment has likely ticked higher:

    This past Wednesday, Seek released labour market data, revealing that the number of job ads plunged 4.7% in April to the lowest level since January 2021. It’s likely that we will see a climbing unemployment figure that echoes this movement.

    With Treasurer Jim Chalmers confirming that jobseeker payments won’t increase in the new Federal budget (due out tonight), Gilbert cautioned, “There is plenty of concern, especially with an increase in the rate of business insolvencies further tightening the jobs market this year.”

    Gilbert added:

    While much of this is usually good news when trying to fight inflation, the issue is proving sticky and interest rate cuts still seem a long way off if there are no meaningful concessions for hard-done-by workers in the budget.

    The ASX 200 is down 0.3% in afternoon trade today, at 7,725.4 points.

    The post 2 reasons Thursday is shaping up to be a huge day for the ASX 200 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in S&P/ASX 200 right now?

    Before you buy S&P/ASX 200 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 S&P/ASX 200 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 Bernd Struben 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.

  • If you’d invested $10,000 in Netwealth shares at the start of the year, here’s how much you’d have now

    Accountant woman counting an Australian money and using calculator for calculating dividend yield.

    Netwealth Group Ltd (ASX: NWL) shares have skyrocketed since the start of the year.

    The ASX financial share has streaked 29.94% higher to trade at $20.18 per share at the time of writing.

    Meantime, the S&P/ASX 200 Index (ASX: XJO) has limped 1.34% forward.

    Here’s how much you’d have now had you invested $10,000 in Netwealth shares at the start of 2024.

    Netwealth shares began the year at $15.35 per share

    Yep, you read that right.

    The Netwealth share price at the opening bell on 2 January was $15.35.

    So, a $10,000 budget would have bought you 651 Netwealth shares. Total spend: $9,992.85.

    Today, those 651 shares are worth $13,137.18.

    On top of that capital gain, you would have received the interim dividend of 14 cents per share plus franking in March. That’s worth a total of $91.14 ex-franking.

    So, the total return you would have received just four-and-a-half months after acquisition is $3,235.47.

    What’s the latest news from Netwealth?

    Netwealth’s latest price-sensitive news announcement came on 11 April when the company released its March quarter business update.

    Netwealth reported $2.7 billion in net inflows for the quarter, a 62.2% increase on the prior corresponding period (pcp) of the March quarter 2023.

    This took its funds under administration (FUA) to $84.7 billion as of 31 March.

    FUA increased by $6.7 billion during the March quarter, comprising FUA net inflows of $2.7 billion and positive market movement of $4 billion.

    The number of accounts increased by 11.6% compared to the pcp.

    Over the 12 months to 31 March, the company achieved record FUA inflows of $21.2 billion.

    Total FUA for the year increased by 28.5% or $18.8 billion, comprising net inflows of $10.6 billion and positive market movement of $8.2 billion.

    It appears that shareholders had loftier ambitions for that set of results, with the Netwealth share price declining 5.03% on the day the report was released.

    Should you buy Netwealth at today’s share price?

    The consensus rating on Netwealth shares among 16 analysts on the CBA trading platform is a hold.

    Three analysts say the stock is a strong buy, 1 says a moderate buy, six say hold, two give it a moderate sell rating and four analysts say Netwealth shares are a strong sell.

    The consensus expectation for earnings per share (EPS) is 35 cents in 2024, 43.7 cents in 2024 and 52.2 cents in 2025.

    The analysts anticipate dividends per share of 29.9 cents in 2024, 38 cents in 2025 and 45 cents in 2026.

    Netwealth shares are trading on a price-to-earnings (P/E) ratio of 55.54, according to CBA.

    The post If you’d invested $10,000 in Netwealth shares at the start of the year, here’s how much you’d have now appeared first on The Motley Fool Australia.

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

    Before you buy Netwealth 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 Netwealth 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 Bronwyn Allen 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 3 reasons ResMed shares ‘are just too cheap!’

    ventilator mask

    The Resmed CDI (ASX: RMD) share price has risen 46% over the last six months, and a fund manager reckons there are more gains to come.

    This ASX healthcare share has been through a lot in the past year as investors worried about the effects of weight loss drugs on its business, as we can see on the chart below.

    The latest financial updates have shown the company continues to deliver a strong, profitable performance. The FY24 third-quarter earnings before interest and tax (EBIT) beat market consensus estimates by 7%, and management was feeling confident about the outlook in the conference call, according to fund manager Firetrail.

    Firetrail said there has been “significant noise” about ResMed shares because of a GLP-1 drug trial being conducted on sleep apnea patients.

    The fund manager is still bullish about the company for a few different reasons. I’ll run through each of them below, leading Firetrail to say that Resmed shares are “just too cheap!”.

    Manageable impacts from weight loss drugs

    Firetrail said its view has been that increased awareness of CPAP (continuous positive airway pressure) therapy will “largely offset the negative impact of patient drop-out due to weight loss”.

    With its FY24 third-quarter update, Resmed updated its findings from the dataset of 660,000 patients with a sleep apnea diagnosis who have taken a GLP-1 drug in the past two and a half years.

    Firetrail commented:

    While not proving causation, only correlation, this data shows that GLP-1 users are 10.5% more likely to start CPAP therapy and have mask resupply rates 3-5% better than non-GLP-1 patients with sleep apnoea.

    Revenue growth

    The fund manager said competitor Philips’ consent decree “looks likely to keep it out of the US CPAP device market for a number of years.”

    Firetrail pointed out that Resmed recently reported record device sales in what is its seasonally weakest quarter. In the FY24 third quarter, the business generated revenue growth of 7%, taking the revenue to $1.2 billion.

    The fund manager suggests the business is growing its market share amid these record sales.

    Gross profit margin

    The third positive area that Firetrail discussed for Resmed shares was the gross profit margin. Firetrail said the weaker gross profit margin was due to fight and manufacturing cost pressures, but these effects are only transitory.

    Resmed’s FY24 third-quarter update showed a 160 basis point (1.60%) expansion for the gross profit margin.

    Pleasingly, the Resmed gross margin is now “almost back to pre-COVID levels”.

    The post 3 reasons ResMed shares ‘are just too cheap!’ appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Resmed Inc. right now?

    Before you buy Resmed Inc. 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 Resmed Inc. 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 Tristan Harrison 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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 2 ASX healthcare shares rocking higher on big news

    Doctor doing a telemedicine using laptop at a medical clinic

    ASX healthcare shares are one of only two market sectors trading in the green at the time of writing.

    The S&P/ASX 200 Health Care Index (ASX: XHJ) is up 0.55% and is the best sector of the day so far.

    These two ASX healthcare shares are having a particularly good day following company updates.

    2 ASX healthcare shares soaring on exciting news

    Two ASX healthcare shares are flying higher today after the companies announced significant news.

    Let’s check them out.

    Avita Medical Inc (ASX: AVH)

    The Avita Medical share price is currently 10.2% higher at $2.81 per share after the ‘spray-on skin’ burns treatment company announced its first quarter results for 2024.

    For the three months ending 31 March, Avita reported a 5.8% lift in commercial revenue, compared to the first quarter of 2023, to $11.1 million. The gross profit margin came in at 86.4%.

    Cash and cash equivalents fell 23% to $16,951,000, with Avita’s CFO David O’Toole explaining that the big spend mostly related to several non-recurring expenses.

    O’Toole commented:

    We acknowledge the significant cash utilization this quarter, however we remain confident in our financial stability and our ability to reach cashflow break even as guided.

    The company expects to reach cashflow break even no later than the third quarter of 2025.

    As for forward guidance for 2024, Avita said commercial revenue for the second quarter was expected to be in the range of $14.3 million to $15.3 million.

    Avita expects full-year commercial revenue at the low end of its previously provided guidance range of $78.5 million to $84.5 million.

    During the quarter, Avita launched PermeaDerm, a co-branded biosynthetic wound matrix, in the United States.

    Avita CEO Jim Corbett said:

    We believe we have taken the necessary measures to invigorate our burns business and improve our commercial sales process to return to sustained growth.

    We remain dedicated to establishing RECELL as the standard of care for burn and full-thickness skin defects.

    Simultaneously, we are actively transforming AVITA Medical into a broad wound care business by expanding our portfolio to address the full spectrum of clinical needs.

    The ASX healthcare share is down 32.7% in the year to date and down 23% over the past 12 months.

    Race Oncology Ltd (ASX: RAC)

    The Race Oncology share price is currently 7.1% higher at $1.66 per share after the clinical-stage cancer drug biotech announced positive preclinical study results.

    Race said bisantrene and decitabine used together had “significantly improved cancer cell killing across a broad panel of 143 tumour cell lines than either drug used alone”.

    The company said the results support the use of the combined drugs as a potential treatment for many cancers. These include solid tumours such as lung, prostate, pancreas, breast, and head and neck cancers.

    The two drugs will be explored further in a proposed Phase 1/2 investigator-initiated AML clinical trial.

    Race CEO Dr Daniel Tillett commented:

    These results open exciting new treatment opportunities for both bisantrene and decitabine. While decitabine has proven its effectiveness in haematological cancers, it has not demonstrated clinical utility in solid tumours, like lung or breast cancer.

    This new body of work is highly supportive of the results from the University of Newcastle in preclinical AML models using a combination of bisantrene and decitabine.

    Race Oncology also released a new investor presentation yesterday.

    The ASX healthcare share has streaked 95.3% higher in 2024 so far and is down 0.90% over the past year.

    The post 2 ASX healthcare shares rocking higher on big news 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 Bronwyn Allen 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 Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.