Author: openjargon

  • Gen Z students lead pro-Palestine demonstrations while their Boomer professors see parallels to past protest eras

    A student protester with his fist in the air walking by police in present day; national guard encroaching on kent state in 1970
    Student protesters, like their predecessors, are being met with a heavy police presence.

    • Students and their professors are asking universities to divest from Israel.
    • At Indiana University, protesters say they've been met with a militarized response from police.
    • Professors say the current protests share stark differences and chilling similarities to past ones.

    On April 25, a day after Indiana University made a controversial change to its protest policies, students built an encampment on the school's Dunn Meadow.

    The meadow had been designated a free speech lawn since 1969, when the school experienced increased student protests over tuition hikes, anti-Black racism, and the Vietnam War.

    Multiple generations of activists are now gathered on that same ground to protest Israel's war on Gaza — though the police presence was much different than what protesters before had known or experienced, per people who spoke to Business Insider.

    The decision made on April 24 required that the "temporary or permanent installation of structures in Dunn Meadow (including, but not limited to posters, tents, etc.) at any time must be approved in advance by the university and, if approved, adhere to the guidelines provided by the university," according to a statement from Indiana University President Pamela Whitten.

    The university enforced its policy against the encampments by calling police to arrest demonstrators who did not comply with the rule against "unapproved temporary or permanent structures," it said in a press release.

    A statement from Whitten shared with Business Insider said the policy change was made to "balance free speech and safety in the context of similar protests occurring nationally."

    The change resulted in what Barbara Dennis, a 64-year-old professor at Indiana University's School of Education and self-described "longtime peace activist," called a "militarized" police response.

    A bunch of tents on a green lawn with flags of Palestine
    A Palestinian flag waves over the Indiana University Liberated Zone.

    She joined the campus protests on April 25 alongside her husband, an IU staff member. Within hours, Dennis was detained — and is now appealing a one-year ban from entering the university campus.

    Dennis said the response was unlike anything she had witnessed on campus since she began teaching there in 2001 and went against everything she knew beforehand about the university's history.

    From Vietnam to the Israel-Hamas War

    When Dunn Meadow was established in 1969, official university policy dictated that overnight encampments were not allowed. Despite this, Dennis said the policy had never been enforced until now.

    She said that during the Vietnam War era, South African Apartheid in the 1980s, and the first Gulf War, protest tents were left up in the meadow, sometimes for months.

    Dennis described similar scenes while on campus witnessing the Iraq War protests and the Occupy Wall Street movement. She said a kitchen was erected during protests, and people slept there overnight.

    "It's not just that the militarization is new," Dennis told BI, "IU had previously allowed people to camp in the meadow in peaceful protests without invoking its own policy on overnight tents."

    IU did not respond to questions about enforcing its overnight tent policy in the past and pointed Business Insider to public statements from Whitten.

    'We know this kind of thing has happened on college campuses'

    Videos and images from college campuses across the nation over the past weeks show a mass police presence and dozens or hundreds of demonstrators being detained. In the US, over 2,000 demonstrators have been arrested so far, The New York Times reported.

    At Columbia and City College of New York, 300 protesters were arrested in one night on April 30.

    As students face university and police responses to their protests, school faculty and staff are also taking a stand and, in some cases, protecting students by getting in front of the police or forming human chains.

    Pro-Palestinian student protesters lock arms at the entrance to Hamilton Hall
    Pro-Palestinian protesters lock arms at the entrance to Hamilton Hall on the campus of Columbia University in New York City.

    Dennis said that when she was arrested, she and three other faculty members tried to stand between students and police. Though she said that none of the protests on college campuses that she's ever participated in or witnessed have required professors to protect students similarly, she said that college campuses have sometimes experienced worse violence.

    "We just passed that anniversary of the Kent State massacre," Dennis told BI. "We know this kind of thing has happened on college campuses. College protests haven't been completely free of this kind of military police response."

    On May 4, 1970, four unarmed students at Kent State University were killed and nine others were injured when the Ohio National Guard opened fire on protesters opposed to the expansion of the Vietnam War. None of the guardsmen received criminal convictions for their actions.

    The Indiana University Police Department did not immediately respond to a request for comment from BI.

    Passing the torch to Gen Z

    Bryce Greene, a Gen Z graduate student at IU who helped found the school's Palestine Solidarity Committee, helped to launch the encampment to "protest the genocide and, precisely, of our school's complicity in it," he told Business Insider.

    The main goals of the encampments, Greene said, are to get the university to disclose any investments in Israeli companies or weapons manufacturers and divest from them.

    Some students demand the school cut ties with the Naval Surface Warfare Center in Crane, Indiana. IU's STEM departments have research partnerships with the facility, which helps in the research and development of warship and submarine systems. The University also announced late last year that it had invested $111 million in partnership with the NSWC to advance "strategic initiatives focused on advancements in microelectronics, nanotechnology, artificial intelligence, machine learning and cybersecurity" for defense purposes.

    Greene is also appealing a five-year ban on campus after his own arrest on April 27.

    Representatives for IU did not immediately respond to questions asking why there were discrepancies in bans, but they pointed Business Insider to statements about campus safety made by Whitten. The ACLU of Indiana is suing the campus, claiming these bans violate free speech rights.

    A person is held to the ground by a police officer
    All the arrested protesters, including professors, have been banned from Indiana University's campus for a year.

    While on campus, however, Greene said he and other students witnessed faculty shielding students from police and offering help to students who lost housing due to school suspensions.

    Dennis said that in her holding cell during her arrest, she sang "old hippie songs and freedom ballads" as she comforted young students.

    "I knew things were going to be OK, Dennis said. "I was the oldest person arrested that day."

    Greene said many faculty members feel similarly to students and have some institutional power to help advance the cause.

    "Faculty are typically more permanent fixtures of the institution. If they are upset, well, that causes long-term problems that can't be swept under the rug for a year or two," Greene said.

    'How can we ignore what's going on and consider ourselves educators?'

    Greene and Dennis are both supporting the student encampment following their arrests. Dennis still returns to the encampment — she received a stay on her ban as part of her appeal — and encourages other educators to participate in the student-led movement.

    "I'm unsupportive of war as an answer to any sort of human or ecological problem, I think we need to push our moral and intellectual capabilities to really solve our problems in peaceful ways," Dennis told BI.

    The current student protests have the fixtures of something from the Vietnam War era: student conversations on blankets, an outdoor library, and teach-ins by university faculty. At the IU encampment, Dennis is participating in a teach-in herself.

    "UNICEF has said that Palestine is the worst place in the world to be a child," Dennis said. "I mean, how can we ignore that and consider ourselves educators? That just doesn't seem fathomable to me."

    Read the original article on Business Insider
  • ASX 200 banks vs. mining stocks: Which is the better buy today?

    Two people comparing and analysing material.

    ASX 200 mining stocks have vastly underperformed ASX 200 bank stocks in recent months.

    Take a look at this chart below comparing the S&P/ASX 200 Banks Index (ASX: XBK) and the S&P/ASX 200 Resources Index (ASX: XJR) in the year to date.

    ASX 200 bank stocks have risen 8.57% whilst ASX 200 resources stocks have lost 7.41% of their value.

    This is an interesting situation, given the mining and banking stocks comprise a huge proportion of the ASX 200’s total market capitalisation.

    With one going up and one going down, is it any wonder the S&P/ASX 200 Index (ASX: XJO) is virtually flat in the year to date at 7,749 points, up just 1.59%?

    So, what’s going on?

    Ray David, Portfolio Manager and Partner at Blackwattle Investment Partners discussed the divergent performance between the two stock types in a recent interview with ausbiz.

    Why are ASX 200 mining stocks underperforming bank stocks?

    In terms of ASX 200 mining stocks, David explained that the market is concerned about the iron ore price amid weakness in China’s property market.

    This has weighed on the performance of mega iron ore shares BHP Group Ltd (ASX: BHP), down 15% in the year to date, and Rio Tinto Ltd (ASX: RIO), down 4.8% in the year to date.

    David says there’s an opportunity for investors to snap up weakened BHP and Rio Tinto shares while commodity prices are rising.

    He said:

    So you’ve seen softer property sales, softer property prices, and a lack of stimulus [in China]. So that’s really weighed on Rio and BHP. But if you actually look at underlying commodities for RIO and BHP, iron ore is up about 12% over one year, and copper — which is about 25 to 30% of earnings — is up by about 17%, so we think there’s a real opportunity for investors …

    In terms of ASX 200 bank stocks, David said the banks “look like they’ve overstretched on valuations”.

    … so banks are trading about … 16x earnings. Markets have gotten excited that bad debts really won’t tick up but we still think there’ll be some pressure there.

    In terms of deciding between ASX 200 mining stocks vs. bank stocks, David sums it up:

    … the concerns around demand for iron ore and copper in our view are probably too cautious, and so there’s an opportunity for investors to be overweight materials because the valuation multiples are a lot cheaper than the banks. They’re trading on 11x, 12x cash earnings.

    Which other miners are a buy?

    David said Blackwattle looks for mining stocks that tick four boxes:

    One of his ASX 200 mining stock picks is lithium producer IGO Ltd (ASX: IGO).

    He describes decarbonisation as “a theme for the next century”. It will mean the adoption of much more electrification and a reduction in fossil fuels and emissions.

    He says there are four commodities that stand to benefit most from decarbonisation. They are lithium, copper, rare earths and aluminium.

    David said:

    So the way we’re playing decarbonisation is through our ownership in … IGO.

    IGO owns a 25% interest in the lowest-cost spodumene producer in the world. So, the Greenbushes mine, it’s producing under US$400 dollars a tonne, that’s well below the current spodumene lithium price of US$1,100 a tonne.

    And again, it’s long reserve life, so a mine life out to 2040; it’s got no debt so the balance sheet will see you get through the volatility of commodity prices, and also there’s a management team that’s now in place that’s focusing on improving shareholder outcomes because the previous management team did destroy some value through some poor acquisitions in nickel.

    David admits “the market hates lithium at the moment” following a 52% decline in commodity prices over 12 months.

    But he said Blackwattle sees the demand profile for lithium in the future as quite strong.

    … and if you’re producing at the lowest cost, you’ll be able to produce lots of cash flow for shareholders, which IGO should, and again the valuation is attractive, with no debt on the balance sheet.

    IGO shares finished the session on Friday at $7.92 apiece, down 0.25%. The ASX 200 lithium mining stock has fallen 13% in the year to date.

    The post ASX 200 banks vs. mining stocks: Which is the better buy 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…

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    Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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.

  • 5 excellent ASX ETFs to buy next week

    ETF spelt out with a rising green arrow.

    If you have room for some new exchange-traded funds (ETFs) in your portfolio, then read on!

    Listed below are five ASX ETFs that are highly rated right now and could be good options for investors when the market reopens next week.

    Here’s what you need to know about them:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first ASX ETF to look at is the BetaShares Asia Technology Tigers ETF. It could be a great option if you’re feeling positive on the long term Asian economic outlook. That’s because it provides investors with super-easy access to many of the best tech stocks from China and the rest of Asia (but not Japan). Many of these are the region’s equivalents of the West’s biggest and best tech companies and appear well-positioned for long-term growth.

    BetaShares Global Cybersecurity ETF (ASX: HACK)

    Another ASX ETF to consider buying next week is the BetaShares Global Cybersecurity ETF. It provides investors with access to the global cybersecurity sector. And this could be a great place to be right now. That’s because the sector has been tipped to grow materially over the next decade or two due to the rising threat of cybercrime and the shift to the cloud. It invests in the leaders in the sector and emerging players.

    Betashares Global Uranium ETF (ASX: URNM)

    Another ASX ETF for investors to look at next week is the Betashares Global Uranium ETF. It could be a good option if you believe that nuclear power is the key to decarbonising the planet. As its name implies, this fund provides investors with exposure to a portfolio of leading companies in the global uranium industry. These companies stand to benefit greatly from increasing demand for the chemical element.

    VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

    A fourth ASX ETF to look at next week is the very popular VanEck Vectors Morningstar Wide Moat ETF. Much to the delight of its unitholders, the MOAT ETF has delivered very strong returns for investors in recent years. This has been underpinned by its focus on investing in high-quality companies with fair valuations and sustainable competitive advantages. These are the qualities that legendary investor Warren Buffett looks for when making investments. And it is never a bad idea to follow the Oracle of Omaha’s lead.

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    A final ASX ETF for investors to consider buying next week is the Vanguard MSCI Index International Shares ETF. This popular ETF gives investors access to more than 1,000 of the world’s largest listed companies. This means that you are left owning a very diverse group of quality companies. Many of which are absolute behemoths and household names.

    The post 5 excellent ASX ETFs to buy next week 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…

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    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 BetaShares Global Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf, Betashares Global Uranium Etf, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Top brokers name 3 ASX shares to buy next week

    A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

    It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

    Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

    Lovisa Holdings Ltd (ASX: LOV)

    According to a note out of Bell Potter, its analysts have retained their buy rating on this fashion jewellery retailer’s shares with an improved price target of $36.00. Bell Potter has been reviewing the retail sector and continues to feel very bullish about Lovisa. In fact, the broker believes that the company’s store network can grow even quicker in new markets than first thought after taking into account some recent data points from markets such as Netherlands, Ireland, Canada, and Peru. Bell Potter now estimates that Lovisa can grow its store network by 10% per annum between FY 2023 and FY 2034. In addition, its analysts highlight encouraging trends out of the ecommerce platforms in both Australia and the US compared to its key rival. Combined, this has led to the broker boosting its earnings estimates and valuation accordingly. The Lovisa share price ended the week at $31.77.

    Qube Holdings Ltd (ASX: QUB)

    A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this logistics solutions company’s shares with an improved price target of $3.95. This follows Qube’s investor day event, which went down well with the broker. Goldman notes that the company’s Patrick operation is unmatched and has an advantage at Port Botany via automation, its 1,400m quay line, and efficiencies. In addition, the broker was pleased to see that trading conditions are improving and execution risks at Moorebank are reducing. Overall, this has led to the broker lifting its earnings estimates for the coming years and boosting its valuation. The Qube share price was fetching $3.58 at Friday’s close.

    REA Group Ltd (ASX: REA)

    Analysts at Morgan Stanley have reaffirmed their overweight rating and $210.00 price target on this property listings company’s shares. This follows the release of REA Group’s quarterly update, which revealed very strong sales and earnings growth from the realestate.com.au operator. Morgan Stanley notes that the company slightly outperformed analyst expectations but significantly outperformed its closest rival. This is cementing its market leadership position further, which bodes well for the future and appears to support Morgan Stanley’s forecast for further strong growth in the coming years. The REA share price ended the week at $187.32.

    The post Top brokers name 3 ASX shares to buy next week 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…

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    Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and REA Group. The Motley Fool Australia has recommended Lovisa and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Are JB Hi-Fi shares still a buy as growth slows?

    Woman checking out new laptops.

    JB Hi-Fi Ltd (ASX: JBH) shares have soundly beaten the market, rising by 23% in the past year (seen on the chart below), compared to a 7% rise for the S&P/ASX 200 Index (ASX: XJO). However, sales growth is now challenging amid the high cost of living situation.

    Investors got a look at the latest quarter‘s performance earlier this week. The sales numbers in Australia weren’t inspiring.

    Sales recap

    JB Hi-Fi reported that for the three months to 31 March 2024, JB Hi-Fi Australia’s total sales decreased by 0.1%, JB Hi-Fi New Zealand’s total sales improved by 16.8%, and The Good Guy’s sales dropped by 0.8%.

    Added to the first two-quarters of FY24, total JB Hi-Fi Australia sales were up 0.5%, JB Hi-Fi New Zealand sales rose 8.5%, and The Good Guys sales dropped 7.3%.

    The ASX share described these sales as “resilient” and in line with the group’s expectations.

    Is the JB Hi-Fi share price a buy?

    Brokers seem mixed on the business after seeing that update.

    According to reporting by The Australian, the broker JPMorgan decided to increase its rating on JB Hi-Fi shares to overweight, meaning buy. The price target is where the broker thinks the share price will be trading in 12 months from now. JPMorgan’s price target on JB Hi-Fi shares is $63, which is more than 11.92% higher than where it is now.

    However, the broker Macquarie decided to reduce its price target on JB Hi-Fi shares by 5% to $61. That represents a potential rise of more than 8%, even though Macquarie’s rating was reduced to neutral.

    The broker UBS has a neutral rating and price target of $59 on the business, which would be a rise of less than 5%.  

    UBS said it’s cautious on the FY24 fourth quarter because JB Hi-Fi is cycling against a strong final quarter of the prior financial year, particularly JB Hi-Fi Australia.

    Another issue is there is a potential downside risk to the earnings before interest and tax (EBIT) margin because of rising costs, including wages and rent (which are being driven higher by inflation). UBS suggested that saving costs is difficult because the company already has a “lean cost base,” especially with JB Hi-Fi Australia.

    UBS thinks operating ­de-­leverage is likely in the third quarter because of the sales decline and the cycling against a strong quarter ending 30 June 2023 for the FY24 fourth quarter.

    Based on UBS’ estimates, the JB Hi-Fi share price is valued at 15x FY24’s estimated earnings and 15x FY25’s estimated earnings. It could pay a grossed-up dividend yield of 6.2% in FY24 and 6.1% in FY25.

    It seems some brokers think the JB Hi-Fi share price is capable of rebounding, but it faces challenges to profitability in the last few months of the 2024 financial year.

    The post Are JB Hi-Fi shares still a buy as growth slows? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Jb Hi-fi Limited right now?

    Before you buy Jb Hi-fi 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 Jb Hi-fi 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

    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 JPMorgan Chase and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Coles share price holds firm while Woolworths tumbles 18% in 2024. Time to buy?

    A laughing woman pushes her friend, who has her arms outstretched, in a supermarket trolley.

    The Coles Group Ltd (ASX: COL) share price has held firm in 2024, while the Woolworths Group Ltd (ASX: WOW) share price has tanked.

    Coles shares finished the session on Friday at $16.24 and are up 0.5% in the year to date.

    The company’s chief competitor and Australia’s supermarket sector leader, Woolworths, closed at $30.72 on Friday with the share price down 18% in the year to date.

    As my colleague Seb points out, Coles shares are trading at a more attractive P/E ratio at the moment. But will that last?

    Let’s canvas the views of a few top brokers to see if they think Coles shares are a good buy at today’s price.

    Stable Coles share price vs. Woolworths wash-out in 2024

    Bell Potter has a buy rating on Coles and a 12-month price target of $19.

    The broker notes moderating costs, supply chain improvements, and a positive long-term outlook for the company, commenting:

    Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off.

    In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

    Morgans has an add rating on Coles with a 12-month share price target of $18.95.

    Equities strategist Andrew Tang explains why they like Coles shares:

    In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL.

    While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

    UBS also has a buy rating on Coles with a share price target of $18.25. 

    The broker says there are tailwinds for the business. These include a potential expansion of gross profit margins in 2024 and various cost savings that are helping it deliver “improved earnings momentum”.

    Then there’s the outlier…

    Goldman Sachs has a completely different view. The top broker says Coles shares are a sell and has a 12-month price target of $15.40 on the stock.

    In a recent note, analysts Lisa Deng and James Leigh said Coles had under-invested in its digital transformation and omnichannel strategy, which is “the primary reason for structural market share loss”.

    They explained:

    Even though the company is stepping up its investments in supply chain, we would like to see the company better illustrate its end-to-end digital strategy including sourcing, warehouse/distribution, merchandising, consumer data/analytics and loyalty to ultimately drive ARPU and market share gains together with cost efficiencies.

    Deng and Leigh expect Coles to report lower comps sales and EBIT margin growth in FY25/FY26 compared to Woolworths.

    They are also concerned about potential further delays with the Witron/Ocado project.

    The post Coles share price holds firm while Woolworths tumbles 18% in 2024. Time to buy? 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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • I’d buy these ASX retail shares if economic fragility starts a fire sale

    Young people shopping in mall and having fun.

    My endless hunt for wealth creation has led me to ASX retail shares more recently.

    Investors decimated the industry yesterday, slicing 2.5% off the consumer discretionary sector. Disappointing sales updates from a handful of listed retailers, such as JB H-Fi Ltd (ASX: JBH) and Super Retail Group Ltd (ASX: SUL), spooked the market following weak retail trade data last month.

    There’s a wise Japanese proverb I reflect on in uneasy times: “Fear is often greater than the danger itself”. Humans are wired to amplify a perceived threat so that we might live another day. This innate response can lead to overreactions in the stock market.

    Those rare moments of disproportional distress are where transformative investments can be made.

    3 ASX retail shares ready for rough times

    Suppose we fall on hard times in the near future. Some companies will be positioned better than others. However, there’s every chance investors will sell indiscriminately, overcome with fear.

    That’s why it is valuable to prepare for the storm. Know which companies are likely to withstand the catastrophic forces ahead of time. Doing so gives you an edge over others who will be paralysed by panic.

    Batten down the balance sheet

    Recessions can destroy businesses. When sales dry up quicker than expenses can be reduced, a company can be caught with insufficient cash to fund its operations. That’s where a pile of cash and little debt can be a game-changer.

    I think Premier Investments Limited (ASX: PMV) is an ASX retail share in tip-top financial shape. The owner of Peter Alexander, Just Jeans, and Portmans — among others — recorded $492 million in cash and $69 million in debt at the end of the first half.

    A strong balance sheet paired with above-industry average profit margins gives me confidence Premier Investments would make for an opportune investment amid a sell-off.

    Staying on budget

    People will often trade down in a weaker economy rather than go completely without. Savvy shoppers begin looking for the best bang for their buck, giving the right retailers a boost.

    I believe Lovisa Holdings Ltd (ASX: LOV) is a prime candidate for a more frugal shopper. The jewellery seller is a more affordable option without compromising on the desired look. Furthermore, the company is now in a net cash position, reducing its debt from its previously lofty level.

    Making it last

    Buying a brand-new car is the last thing someone wants to do when money is tight. For this reason, automotive retailers are often dubbed ‘recession-resilient’, as people choose to repair rather than replace.

    Super Retail Group Ltd (ASX: SUL) reported mixed sales growth yesterday in its second-half trading update. Some analysts are labelling the owner of Supercheap Auto, BCF, Macpac, and Rebel as overvalued after these figures.

    Meanwhile, I’m prepping my account to buy this ASX retail share if the market punishes it further. The Supercheap Auto business is best-in-class, in my opinion. Additionally, Super Retail Group is now sitting on $321 million in cash (and no debt), giving it plenty of financial headroom for hard times.

    The post I’d buy these ASX retail shares if economic fragility starts a fire sale appeared first on The Motley Fool Australia.

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    Motley Fool contributor Mitchell Lawler has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi, Lovisa, and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Trump dismisses former presidential rival Nikki Haley as a potential running mate: ‘Not under consideration’

    Nikki Haley
    Nikki Haley campaigns in South Carolina.

    • Donald Trump appeared to close the door on Nikki Haley as a potential vice president.
    • "Nikki Haley is not under consideration for the V.P. slot, but I wish her well!" he said.
    • Trump's remark came after an earlier report that Haley was in the mix for VP.

    Former President Donald Trump on Saturday threw cold water on any speculation that he was considering ex-presidential rival Nikki Haley as his running mate, saying she was "not under consideration."

    Trump made the remarks on his Truth Social platform following an earlier Axios report, which cited unnamed sources, that the ex-president would consider Haley if he felt she could help him win the general election and cover his legal fees should he lose.

    Just hours after the article was published, Trump went online to set the record straight on his vice presidential search.

    "Nikki Haley is not under consideration for the V.P. slot, but I wish her well!" the former president wrote.

    Haley, a former South Carolina governor and onetime UN ambassador under Trump, exited the GOP primary after the former president won multiple primaries and caucuses across the country on Super Tuesday.

    As a candidate, Haley sought to nudge Republican voters toward a future without Trump, making a case that she'd be the face of GOP generational change while also looking to appeal to conservatives, moderates, and independents who were leery of the former president.

    But Haley, similar to former fellow challengers like Florida Gov. Ron DeSantis and former New Jersey Gov. Chris Christie, was unable to break through Trump's hold on the GOP electorate.

    Earlier in Haley's campaign, she largely steered clear of direct attacks on Trump. But as the primary contests neared, she took on the former president directly, noting that his legal troubles could endanger the GOP in the fall. She also brought up his advanced age.

    When Haley left the race, she did not throw her support behind Trump's reelection bid and gave no timeline for a potential endorsement. Biden, who praised Haley after she ended her campaign, has sought to appeal to her former supporters.

    And despite her departure from the GOP race, Haley continues to win thousands of primary votes, particularly in critical suburban and exurban counties where Democrats have made considerable inroads in recent election cycles.

    Read the original article on Business Insider
  • Here’s the CBA dividend forecast through to 2026

    ATM with Australian hundred dollar notes hanging out.

    Commonwealth Bank of Australia (ASX: CBA) shares were in focus last week when the banking giant released its third quarter update.

    In case you missed the announcement, let’s have a quick look at what the company reported.

    For the three months ended 31 March, CBA posted a 1% decline in operating income.

    Management advised that this reflects one less day in the quarter and slightly lower net interest margins due largely to continued competitive pressures and customers switching to higher yielding deposits.

    So, with CBA’s expenses increasing 2% due to higher amortisation and staff costs, Australia’s largest bank reported an unaudited statutory net profit after tax of $2.4 billion. This represents a 3% decline on the first half average and 5% on the prior corresponding period.

    And although the bank reported rising arrears across home loans, credit cards, and personal loans, its balance sheet remained strong. CBA finished the period with a healthy customer deposit funding ratio of 75%, an LCR of 138%, and an NSFR of 120%.

    But what about the CBA dividend? Has this results release had an impact on what the market is expecting from the bank in FY 2024 and beyond?

    Let’s now take a look at what analysts are forecasting for the coming years.

    CBA dividend forecast

    According to a note out of Goldman Sachs, its analysts have increased their earnings estimates slightly for the next few years to reflect lower bad and doubtful debts. However, there are no changes to the broker’s dividend estimates.

    The note reveals that Goldman continues to expect CBA to pay a $4.55 per share fully franked dividend in FY 2024. Based on the current CBA share price of $117.54, this will mean a 3.9% dividend yield for investors.

    Goldman expects the bank to maintain its dividend at $4.55 per share in FY 2025 despite predicting a year on year decline in earnings. This will mean another 3.9% dividend yield for investors to look forward to that year.

    Moving onto FY 2026, the broker expects the bank to make it three in a row and pay another $4.55 per share fully franked dividend. This of course means yet another 3.9% dividend yield based on its current share price.

    Are CBA shares in the buy zone?

    Goldman thinks investors should keep their powder dry and wait for a sizeable pullback before investing in the banking giant.

    In response to the third quarter update, the broker reiterated its sell rating with an improved price target of $82.61.

    The post Here’s the CBA dividend forecast through to 2026 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you buy Commonwealth Bank Of Australia 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 Commonwealth Bank Of Australia 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

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    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 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.

  • An ASX dividend giant I’d buy over NAB shares for 2024

    Man holding Australian dollar notes, symbolising dividends.

    There’s a good reason many ASX dividend investors own National Australia Bank Ltd (ASX: NAB) shares.

    The S&P/ASX 200 Index (ASX: XJO) bank stock has a lengthy track record of delivering reliable passive income. In fact, NAB shares have delivered two annual, fully franked dividends every year for more than 10 years running now.

    Over the past 12 months, the ASX 200 bank paid a final 84 cents per share dividend on 15 December and an 84 cents per share interim dividend, which will be paid on 3 July.

    At Friday’s closing price of $33.81, that sees NAB shares trading on a fully franked trailing yield of 4.97%.

    Now that’s an attractive yield. Especially as the NAB share price has also gained 29% over the past 12 months.

    But there’s another ASX dividend stock I’d add to my passive income portfolio before NAB.

    Namely ASX 200 utility Origin Energy Ltd (ASX: ORG).

    Here’s why.

    Why I’d buy this ASX dividend star for 2024

    The Origin share price has also outperformed over the past 12 months.

    At Friday’s closing price of $9.93 a share, the ASX dividend stock is up 18% since this time last year.

    As for that passive income, Origin paid a final dividend of 20 cents per share on 29 September. Origin paid out the interim dividend of 27.5 cents per share on 28 March for a full-year payout of 47.5 cents per share, fully franked.

    Based on Friday’s closing price, that works out to a fully franked trailing yield of 4.78%.

    Now, I know what you may be thinking.

    Not only has the NAB share price outpaced the Origin share price over the past year, but NAB shares also trade at a slightly higher yield.

    Indeed.

    But it’s the future we’re eyeing here. Not the past.

    While I believe 2024 and 2025 will continue to see NAB pay out healthy dividends, I think Origin shares will surpass those.

    And I think the ASX dividend stock could also see continued strong share price gains.

    Among the reasons for my bullish assessment is the rapid evolution of artificial intelligence.

    As with the rise of cryptocurrencies over the past decade, AI is forecast to see a massive surge in electricity demand. And I believe utilities like Origin are well-placed to benefit from that surging growth, which could boost the income from this ASX dividend stock.

    So, what kind of demand growth are we talking about here?

    In April, NextDc Ltd (ASX: NXT) CEO Craig Scroggie said that AI-capable data centres will require 10 times as much juice as traditional data centres.

    And amid the explosive growth of AI, a raft of those new AI data centres is expected to come online over the next few years, both from NextDc and others.

    Manju Naglapur, general cloud manager at Unisys Corp, recently noted:

    Power demand from data centres has already been humongous, then came the AI hype and the need for power skyrocketed. With all the money spent on data centres, the power consumption will increase massively.

    That massive increase should bode well for Origin’s dividends in 2024 and beyond.

    As always, before buying any ASX dividend stock or any other company, be sure to do your own research first. Or simply reach out for some expert advice.

    The post An ASX dividend giant I’d buy over NAB shares for 2024 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

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    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.