Author: openjargon

2 ASX biotech shares that could be the next Telix Pharmaceuticals
Looking to invest in an ASX biotech share with the potential to become the next Telix Pharmaceuticals Ltd (ASX: TLX)?

You’re not alone!

The S&P/ASX 200 Index (ASX: XJO) biopharmaceutical company has been going from strength to strength lately.

Just in the past few weeks, Telix made several announcements that sent the stock soaring.

First it announced positive results from its ProstACT SELECT clinical cancer trial. And just days later it reported on progress on approval for TLX250-CDx, its kidney cancer imaging agent, with the United States Food and Drug Administration (FDA).

So, just how well have shareholders in this ASX biotech share been faring?

Well, if you’d bought Telix shares one month ago you’d be sitting on a gain of 20% today.

If you’d bought at the start of 2024, you’d be up 78%.

And if you’d snapped up the ASX biotech share for a bargain $1.05 a share five years ago, you’d have watched those shares surge 1,606%.

Or enough to turn a $5,000 investment into $85,300!

Which bring us to Rory Hunter, portfolio manager of SG Hiscock’s Medical Technology Fund.

The ASX biotech shares that could mimic Telix’s success

The SG Hiscock’s Medical Technology Fund will have done well with its Telix Pharmaceuticals holdings.

According to Hunter (courtesy of The Australian Financial Review):

We originally took a position [in Telix] back in 2019 and chief executive Christian Behrenbruch has delivered on all stated commercial milestones in a timely manner, which is a feat not often achieved among early stage biotechs.

Hunter remains moderately bullish on the outlook for the ASX biotech share. But he noted that in the case of this ASX biotech share, “The easy money has been made.”

And he cautioned that “investors will need to stomach some volatility” with the Telix share price moving forward.

Though, as you can see on the price chart up top, that’s something long-term shareholders in this ASX biotech share should already be well-familiar with.

When asked which stocks his fund holds that have the same explosive potential as Telix or Neuren Pharmaceuticals Ltd (ASX: NEU), Hunter pointed to Clarity Pharmaceuticals Ltd (ASX: CU6) and Dimerix Ltd (ASX: DXB).

He noted that Clarity Pharmaceuticals could replicate “Telix’s success in radiotheranostics”. While Dimerix could replicate “Neuren’s success in rare diseases”.

He added that with “assets in late-stage development”, Dimerix was a potential M&A target.

Clarity, Hunter added, could also become a potential takeover target for its “exciting and compelling early-stage data”.

The Clarity share price is already up a whopping 575% over 12 months.

The Dimerix share price has run even hotter. The ASX biotech share is up 817% over 12 months.

The post 2 ASX biotech shares that could be the next Telix Pharmaceuticals appeared first on The Motley Fool Australia.

Should you invest $1,000 in Clarity Pharmaceuticals right now?

Before you buy Clarity Pharmaceuticals 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 Clarity Pharmaceuticals wasn’t one of them.

The online investing service heâs 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 Bernd Struben 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
7 June 2024
3 lower-risk ASX dividend shares for retirees
ASX dividend shares that generate relatively stable profits may deliver more consistent investment income than the broader ASX share market, which could appeal to retirees.

If I were in retirement, I’d want to own stocks that are more likely to continue delivering dividends, even during a downturn. Life expenses continue regardless of what’s happening with the economy.

With that in mind, I think the three ASX shares below are candidates for passive income.

Metcash Ltd (ASX: MTS)

Metcash has three divisions â food, liquor and hardware.

With the food division, it supplies IGA supermarkets around the country, and it recently acquired a food distribution business that supplies business customers like cafes, restaurants, hotels, hospitals, and so on.

The liquor division supplies various independent liquor chains, such as Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, and Duncans.

I believe the food and liquor segments can provide defensive earnings with largely consistent demand.

Its hardware division includes several businesses, including Mitre 10, Home Timber & Hardware and Total Tools. Australia’s growing population helps drive long-term demand for hardware.

The business is committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT). According to Commsec, the ASX dividend share is predicted to pay a grossed-up dividend yield of 7.8% in FY25.

Wesfarmers Ltd (ASX: WES)

This business owns various leading retailers, including Bunnings, Kmart, Officeworks, Priceline and Target.

Wesfarmers’ biggest profit generators â Bunnings and Kmart â are very well suited to capture market share in the current economic conditions because of their focus on providing customers with value for household products.

The company is investing in new industries, such as healthcare and lithium, that can help diversify and grow Wesfarmers’ earnings for retirees (and all other shareholders).

One of Wesfarmers’ aims is to grow its dividend over time, and it has delivered that since the onset of COVID-19. The FY24 half-year dividend was hiked by 3.4% to 91 cents per share, and the Commsec projection suggests a grossed-up dividend yield of 4.5% for FY25.

APA Group (ASX: APA)

APA owns vast gas pipelines around Australia that transport half of the nation’s gas usage. It also owns other gas-related assets, including gas-powered energy generation. APA has a growing portfolio of renewable energy (solar and wind) and electricity transmission assets.

It has grown its distribution every year since 2004, giving it one of the longest growth streaks on the ASX. The ASX dividend share’s cash flow is increasing over time as more pipelines and other assets are completed or acquired.

APA has guided its payout will be 56 cents per security, which translates into a distribution yield of 6.5%.

The post 3 lower-risk ASX dividend shares for retirees appeared first on The Motley Fool Australia.

Maximise Your Super before June 30: Uncover 5 Strategies Most Aussies Overlook!

With the end of the financial year almost upon us, there are some strategies that you may be able to take advantage of right now to save some tax and boost your savings…

Download our latest free report discover 5 super strategies that most Aussies miss today!

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Motley Fool contributor Tristan Harrison has positions in Metcash. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Wesfarmers. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
7 June 2024
We gave our daughter $20,000 for a wedding, but she used it for a home down payment and paid for her own wedding. Everyone was happy.
Mike's daughter spent the money he gave her on a down payment and later paid for her own wedding (not picture here).

Klaus Vedfelt/Getty Images
- A couple in Kansas City gave their daughter a lump-sum of $20,000 to spend on her wedding.
- Instead, she spent the money on buying a home, and she and her fiancé paid for their own wedding.
- Mike said it all worked out and that he thinks his daughter learned about budgeting in the process.
When Mike's daughter got engaged, he and his wife wanted to help pay for it.

Mike, who asked Business Insider to only use his first name for privacy reasons, estimated that a wedding in the Kansas City area would cost between $15,000 and $25,000 at the time, which was around 2015.

Mike and his wife decided they could put $20,000 towards the wedding, but they knew wedding spending can get out of hand and that emotions tend to run high during the planning process.

So instead of working closely with their daughter on her wedding plans and talking through each potential cost, they came up with a straightforward solution: give her and her fiancé a lump sum of $20,000 and let them do all the planning.

"I didn't want to be telling my daughter what she could and couldn't do," he said. "She was an adult."

Mike said the strategy took the pressure off him and his wife and helped avoid any wrestling over who was buying what or what his daughter could and could not have at her own wedding. He also said it helped him and his wife contribute the amount they wanted without going over budget by adding on things here and there.

In 2023, the national average cost of a wedding was $35,000, according to The Knot, while the average cost in Kansas was $25,000. Still, most couples end up going over their budget. A Real Weddings Study by The Knot found 56% of couple spent an average of $7,600 more on their wedding than they planned. Others exceeded their budget by more than $10,000.

While tradition typically has the bride's family primarily paying for a wedding, those customs are changing, especially as Americans get married later in life and are more able to take on their own wedding costs. A 2023 study from The Knot found it's more common for couples and their families to split the costs equally.

Mike, his wife, their daughter, and her fiancé were all happy with the lump-sum agreement.

"Then they kind of tricked me," he said, laughing. "One day, they came home and said, 'Hey, we bought a house.'"

The couple took the $20,000 and used it to put a down payment on their home — before they actually had their wedding, which they then planned to pay for out of their own pocket.

Initially, Mike was surprised, but ultimately, he thought it was a good thing that his daughter and her fiancé paid for their own wedding.

"If kids are not given carte blanche on wedding plans, if they're forced to budget from their own standpoint, the whole thing just doesn't get out of hand," he said.

The couple held the wedding at the rose garden in Loose Park, a large public park in Kansas City, and at a popular reception hall. Mike said everything about the wedding seemed reasonable but that he never learned what they ended up spending.

"I never asked," he said.

If the couple had used the money for a down payment and then eloped, Mike said that may have bothered him. But as long as he and his wife were still able to attend their daughter's wedding, they were happy.

"I figured I got off for a reasonable amount of money for the wedding, and they got a down payment on a house out of the deal and a wedding," he said.

Mike said he thinks too many people get caught up on the lavish weddings they see on TikTok, but that it can take away from the "whole point of having a wedding, which is to have a marriage."

He also said that he thinks by helping them learn how to budget their money for a wedding, it was also a good step towards learning how to budget in a marriage.

Mike's wife did end up giving their daughter a bit more money in the end, which he thinks was for something having to do with her dress.

"She snuck it in," he said, laughing. "She couldn't resist."

Have a news tip or a story to share about the costs of throwing a wedding or being in a bridal party? Contact this reporter at kvlamis@businessinsider.com.

Read the original article on Business Insider
7 June 2024
Parents are spending hundreds to have other people prep and pack their kids for summer camps that cost upward of $15,000
Summer camp these days can run families thousands of dollars.

Maskot/Getty Images
- Summer camp costs these days start long before little ones leave home, The Wall Street Journal reported.
- Some families with disposable income are shelling out for pre-camp packing services.
- Others are using laundry services to outsource the post-camp unpacking haul.
The cost of sleep-away camp — like nearly everything else these days — is on the up and up.

But the staggering $15,000 price tag on some elite summer camps doesn't account for the hundreds, sometimes thousands of dollars parents are now paying to prep and pack their kids beforehand, according to a new Wall Street Journal report.

Some families are opting to outsource the pre-camp headache of checking off their children's packing list and the post-camp slog of sorting through laundry, The Journal reported this week.

Camp costs these days start racking up long before the little ones hit the canoes. Many camps send out detailed packing lists, some of which include more than 100 items that parents are encouraged to procure for their campers, the outlet reported.

Last year, a mother of two wrote for Business Insider about the massive summer camp packing list that ran her nearly $5,000 after she secured the recommended 15 pairs of shorts, 15 shirts, 16 pairs of socks and underwear, multiple pairs of shoes, several towels and swimsuits, various jacket options, and two sheet-sets per kid.

Some camps go even further, suggesting kids come with brand-name camp chairs, decorative pillows, and outfits in multiple color options for end-of-camp "Color Wars," according to The Journal.

Oh, and everything a child brings to camp in 2024 should be labeled or monogrammed. Duh.

For many families with disposable income, outsourcing is the solution

Beth Leffel, a Boca Raton mother, turned to Denny's, a children's boutique with stores in New York, New Jersey, and Florida, the first summer she sent her daughter to camp, she told The Journal.

The boutique boasts personal shoppers who work one-on-one with families, going item by item on each packing list to supply the necessary goods. Spencer Klein, whose family owns the business, told the outlet that the average first-time camper spends anywhere from $1,500 to $2,000 at Denny's.

After dropping about $2,000 at Denny's and $250 at Party City the first year, Lefell told the outlet she now searches for deals and dupes of more expensive items.

Thomas Barwick/Getty Images

Natalie Liberman, another Boca Raton-based mom, told The New York Post last year that she spent nearly $5,000 making sure her seven-year-old daughter was set with rainbow merch and monogrammed clothing items ahead of summer camp.

Personalized camp wares are the new status symbols, and influencers and online retailers have wasted no time capitalizing on the new trend, the outlet reported in June 2023.

Jody Geller, a Florida mother of two, started an online store in 2018 where she customizes camp gear, including $86 pillows and $38 water bottles. Geller told the Post she often has orders that exceed $1,000.

The services don't stop there

Once the required items have been procured, some parents call in professional organizers to finish the packing ordeal.

Dara Grandis, a mother of three in Manhattan, hired Meryl Bash, a professional organizer, to get her kids' luggage ready for seven weeks away at summer camp, she told The Journal.

Bash offers an array of camp-related services, including making sure everything on the packing list is included, weeding out last year's clothes that no longer fit, and supplying packing tape, storage cubes, and bags, according to the newspaper. Bash charges $125 per hour for packing days, plus $100 per hour for an extra packer, The Journal reported.

Once the summer is over and young campers make their way back home, some families opt to outsource the post-camp laundry haul, as well, turning to businesses like First Class Laundry Services in West Palm Beach, Florida.

For $225 per trunk, the laundry company will pick up a camper's luggage, wash and fold everything inside, and return the clean goods to parents' front door, The Journal reported.

Are you sending your kids to summer camp this year? We'd love to hear from you about the costs and process. Contact reporter Erin Snodgrass at esnodgrass@insider.com to share your stories.

Read the original article on Business Insider
7 June 2024
European Central Bank cuts interest rates. What does it mean for ASX investors?
ASX investors woke today to news that the European Central Bank had cut interest rates.

In a broadly expected move, the ECB lowered the official interest rate by 0.25%, taking it from 4.00% to 3.75%. This marks the first easing by the ECB since 2019.

The bank noted that since its council meeting in September “inflation has fallen by more than 2.5% and the inflation outlook has improved markedly”.

Explaining its decision, the ECB stated:

Based on an updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady.

But the inflation genie is not yet securely back in its bottle.

The ECB cautioned:

At the same time, despite the progress over recent quarters, domestic price pressures remain strong as wage growth is elevated, and inflation is likely to stay above target well into next year.

Indeed, inflation in the EU in May picked up more than expected with rising wages expected to keep the pressure on rising prices for some time yet. This could see interest rates in the EU remain higher for longer.

Addressing the sticky inflation, ECB president Christine Lagarde said (quoted by The Australian Financial Review), “Inflation is expected to fluctuate around current levels for the rest of the year. It is then expected to decline towards our target over the second half of next year.”

Still, consensus expectations are for the next ECB interest rate cut in September.

But to achieve that, inflation in the EU is going to need to continue to moderate.

According to the ECB:

The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner. It will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim.

What does the ECB interest rate cut mean for ASX investors?

There’ll be some ASX companies that could directly benefit from lower borrowing costs in the EU.

But as a whole, ASX investors are waiting to reap some bigger benefits from interest rate cuts by the RBA and the US Fed.

Now the RBA will remain focused on Australia’s own inflationary data. But it’s worth noting that the ECB’s rate cut follows on the Bank of Canada’s 0.25% cut the day before, which brough Canada’s cash rate down to 4.75%.

And with more central banks opting to ease ahead of the US Fed, it could nudge the RBA board in the same direction.

As Doug Porter, chief economist at the Bank of Montreal, said following the Bank of Canada’s interest rate cut:

There is safety in numbers. If central banks see their counterparts heading that way, that gives them some comfort that they’re not completely misreading the situation. I think it does make it easier for other central banks to start cutting too.

European stock markets broadly closed higher on the news. Here in Australia, theÂ S&P/ASX 200 Index (ASX: XJO) is up 0.2% in morning trade.

The post European Central Bank cuts interest rates. What does it mean for ASX investors? 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.
7 June 2024
Which companies are in the VanEck Morningstar Wide Moat ETF (MOAT) portfolio?
The VanEck Morningstar Wide Moat ETF (ASX: MOAT) has been a high-performing fund for several years. An exchange-traded fund (ETF)‘s performance is decided by the underlying companies’ returns, so how the portfolio is constructed is important.

Since its inception in June 2015, the ASX ETF has delivered an average annual return of 15.3%, compared to 14.1% for the S&P 500 Index (SP: .INX) over the same time period.

While the holdings within the ETF do steadily change, the portfolio is always focused on solid businesses with excellent economic moats that are expected to endure and succeed for many years.

Companies inside the MOAT ETF

The VanEck Morningstar Wide Moat ETF looks to invest in a portfolio of at least 40 “attractively priced US companies with sustainable competitive advantages”, according to Morningstar’s equity research team.

It currently has 54 holdings across a range of industries. The biggest position in the portfolio right now (with a 3.47% allocation) is Teradyne, and the smallest positions, both with a weighting of 1.04%, are Adobe and Fortinet. There are numerous holdings with a position size of at least 2.25%, which are as follows:
- Teradyne (3.47%)
- Alphabet (3.22%)
- International Flavors & Fragrances (3.06%)
- Rtx (2.99%)
- Tyler Technologies (2.79%)
- Charles Schwab (2.73%)
- Altria Group (2.64%)
- Corteva (2.64%)
- Biogen (2.51%)
- Pfizer (2.48%)
- Transunion (2.45%)
- Allegion (2.43%)
- Campbell Soup (2.42%)
- Medtronic (2.38%)
- Equifax (2.35%)
- Agilent Technologies (2.31%)
- US Bancorp (2.28%)
As we can see, the position size is quite evenly distributed, which reduces the risk of being overconcentrated in any particular stock.

How are stocks selected?

Businesses are only chosen for the MOAT ETF portfolio if they are trading at an attractive price relative to Morningstar’s estimate of fair value. In other words, they only buy a stock if they think it’s much cheaper than they believe it’s actually worth.

The analysts assign an economic moat rating to each of the approximately 1,500 companies under its coverage. For Morningstar, this is where a company has a sustainable competitive advantage that allows it to generate positive earnings for shareholders over an extended period. Only 14% of the companies monitored have a “wide moat” rating.

To earn a wide moat rating, analysts think that the company’s “excess normalised returns must, with near certainty, be positive ten years from now. In addition, excess normalised returns must, more likely than not, be positive 20 years from now.”

There are several different types of moat, including cost advantage, intangible assets (patents, brands, regulatory licenses), switching costs, network effects, and efficient scale.

The investment style seems to be working well â in the five years to 31 May 2024, the MOAT ETF has delivered an average return per annum of 16.2%. Of course, past performance is not a guarantee of future performance.

The post Which companies are in the VanEck Morningstar Wide Moat ETF (MOAT) portfolio? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf right now?

Before you buy Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf 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 Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf wasn’t one of them.

The online investing service heâs 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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Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. 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 Adobe, Alphabet, Charles Schwab, Fortinet, Tyler Technologies, and U.S. Bancorp. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Biogen, Medtronic, RTX, and Teradyne and has recommended the following options: long January 2026 $75 calls on Medtronic, short January 2026 $85 calls on Medtronic, and short June 2024 $65 puts on Charles Schwab. The Motley Fool Australia has recommended Adobe, Alphabet, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
7 June 2024
Time to pounce? 1 phenomenal ASX stock that hasn’t been this cheap in a while
There are many cheap stocks available for the Foolish investor who is willing to look. Take telecommunications giant Telstra Group Ltd (ASX: TLS), for example. Its shares have taken a hit in 2024 and now trade at $3.55 per share, down from a 52-week high of $4.42 on 21 June 2023.

This decline could present a potential buying opportunity for savvy investors looking for a cheap stock with strong fundamentals. Let’s dig into why Telstra might be a bargain worth considering.

Why is Telstra’s stock cheap now?

Over the past year, Telstra shares have fallen around 18%, underperforming the S&P/ASX 200 Index (ASX: XJO) by 28%. This isn’t what makes it a cheap stock, though.

The slump has pushed Telstra’s price-to-earnings (P/E) ratio down to 19.7 at the time of publication. Notably, the stock hasn’t traded at this valuation since 2017, when it ended the year on a P/E of 13.4.

For context, the current multiple implies that investors are paying $19.70 for every $1 of the company’s earnings.

This is also a significant drop from its peak P/E of 27 in 2022 and a 16% discount from the three-year average multiple of 23.5 times. This is calculated as the average of the P/E multiples recorded at year-end.

This suggests that the current P/E ratio is on the lower end of its three-year range, making it potentially cheap.

Year P/E multiple (year-end)

2020 21.5

2021 23.1

2022 25.75

Average

Current
23.5

19.7

Allan Gray’s investment chief, Simon Mawhinney, echoes this sentiment. Allan Gray first bought Telstra shares in the first quarter of this year, The Australian Financial Review reports.

Mawhinney believes this is one of the rare occasions in the past decade when Telstra is available at a “not unreasonable price”, thanks to its recent decline.

Do analysts think Telstra is a cheap stock?

Goldman Sachs analysts see substantial income potential in Telstra shares, even amid recent disappointments in its trading updates.

The broker has projected fully franked dividends of 18 cents per share for FY 2024 and 18.5 cents per share for FY 2025, according to my colleague James. At the current share price of $3.55, these projections translate to forward dividend yields of approximately 51% and 5.2% for FY 2024 and FY 2025, respectively.

Goldman Sachs maintains a buy rating on the company with a price target of $4.25 per share.

Auburn Capital also rates the telco giant a buy amid the continued downtrend in its share price. According to my Foolish colleague Tristan, the broker values Telstra even higher at $4.50 per share.

On a trailing earnings per share (EPS) of 17.6 cents per share, this valuation implies a P/E of 25.5 times ($4.50 / 0.176 = 25.5) â equal to a 30% value gap at the time of writing. In my opinion, that makes Telstra a cheap stock today.

Can Telstra trade higher?

The market’s reaction to the news Telstra will cut up to 2.800 jobs in April fanned the flames that were already charring the telco’s share price.

Representing almost 10% of the company’s staff headcount, the job cuts are part of a wider strategic review at the company.

In April, Telstra announced a review of its health division, not ruling out a potential sale of the unit. Before that, in 2021, the firm had revealed plans to cut $500 million in costs by 2025.

Known as its “T25 cost reduction ambition”, the blueprints include a planned $200â$250 million in annual restructuring costs over the next two years.

The job cuts and other strategic moves would reduce costs by $350 million in the coming two years, the company recently said.

It noted:

In addition to starting the reset of Telstra Enterprise, Telstra will reshape some of its internal operations by moving its Global Business Services function into other parts of the business.

This will help simplify processes and empower leaders closest to customers to make more decisions.

Telstra’s efforts in cleaning up the business can’t be ignored, in my view and could be grounds for a change in P/E multiple.

Foolish takeaway

Despite a challenging year, I think Telstra’s current valuation and projected dividend yield could present a compelling case.

Trading at a trailing P/E of 19.7, Telstra’s valuation is compressed compared to its historical averages. It is a cheap stock compared to years past.

Just remember, investing comes with risk. Always conduct your due diligence and consider your own personal financial circumstances.

The post Time to pounce? 1 phenomenal ASX stock that hasn’t been this cheap in a while appeared first on The Motley Fool Australia.

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

Before you buy Telstra Corporation 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 Telstra Corporation Limited wasn’t one of them.

The online investing service heâs 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 Zach Bristow 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
7 June 2024
Life360 shares tumbles after Wall Street debut
Life360 Inc (ASX: 360) shares have returned from their trading halt on Friday and are dropping into the red.

At the time of writing, the location technology company’s shares are down 3.5% to $14.16.

Why were Life360 shares in a trading halt?

The high-flying ASX tech stock was placed into a trading halt yesterday as it finalised its Nasdaq IPO.

This is now complete with Life360 shares trading on Wall Street overnight under the (NASDAQ: LIF) ticker.

And the good news for shareholders is that the company’s shares didn’t have a terrible start to life on the Nasdaq boards. More on that soon.

Nasdaq IPO

After the market close on Thursday, Life360 revealed that it had finalised the pricing of its initial public offering in the United States.

It was offering a total of 5,750,000 shares of its common stock at an initial public offering price of US$27.00 per new share.

Life360 advised that it intends to use the net proceeds it receives from the offering to increase its capitalisation and financial flexibility, to create a public market for its common stock in the United States, and for general corporate purposes, including working capital, operating expenses and capital expenditures.

Management also stated that it “views the Offering and increased exposure to U.S. investors as a natural next-step in its growth.”

What is Life360?

In case you’re not familiar with the company. Life360 is a family connection and safety company aiming to keep people close to the ones they love.

Its category-leading mobile app and Tile tracking devices allow members to stay connected to the people, pets, and things they care about most. This is through a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch.

At the last count, Life360 was serving approximately 66 million monthly active users (MAU) across more than 150 countries.

Wall Street debut

As I mentioned at the top, Life360 shares were offered at US$27.00 per new share to investors in the United States.

During a relatively subdued session on Wall Street, they traded as low as $26.00 and as high as $27.26.

And at the end of Thursday’s night session they closed at $27.00, which is exactly where they started it.

But with the Nasdaq index falling 0.1%, this can be described as a reasonably positive debut for the tech stock. But perhaps not the explosive start that many investors were hoping for.

The post Life360 shares tumbles after Wall Street debut appeared first on The Motley Fool Australia.

Should you invest $1,000 in Life360 right now?

Before you buy Life360 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 Life360 wasn’t one of them.

The online investing service heâs 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 positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.
7 June 2024
I was laid off one day before my 2nd child was born. I landed a job at Meta in a month thanks to 5 habits I practiced even before the layoff.
Vishwanath Eswarakrishnan is a software engineer at Meta.

Vishwanath Eswarakrishnan; Meta; Chelsea Jia Feng/BI
- Vishwanath Eswarakrishnan joined Meta after being laid off from Cruise in December.
- His second layoff occurred following a Cruise robotaxi accident in San Francisco.
- Focusing on being a good engineer and what he could control helped him land a job within a month.
This as-told-to essay is based on a conversation with Vishwanath Eswarakrishnan, a software engineer who joined Meta's Menlo Park, California office in March 2024. It has been edited for length and clarity. Business Insider has verified his employment history.

I have been laid off twice, both during crucial times in my personal life.

Two years into my software engineering career, I was impacted by a reduction in force at a data infrastructure company. I was laid off on March 1 and had 30 days to find another job that would sponsor a work visa.

I managed to get an offer from Oracle, and the company suggested I work from another country until they could sponsor my H-1B in a year. But it wasn't an option for me — I was about to get engaged to my now-wife and needed something secure.

I got another offer from a data storage startup days before my stay in the US expired. I worked there for close to five years and moved to eBay in 2020 and then to Cruise in 2022.

My second layoff came in December last year after a Cruise robotaxi was involved in a pedestrian accident in San Francisco. (The company laid off 24% of its workforce.)

I was up for a promotion, and the team was preparing my new package. But I was let go from Cruise, and I got the news one day before my wife had our second child. There were complications, and my job was the last thing on my mind.

Once things started settling, I updated my LinkedIn to reflect "Open to work" and started receiving messages from recruiters.

Here are three things I did before my layoff and two steps I took after that helped me land a software engineer role at Meta within a month.

1. Maintaining relationships with recruiters

I never intended to be polite to the recruiters who reached out to me while I was employed just so they could help with jobs down the line. But, I always responded to their reach outs on LinkedIn and replied that I'm not looking for a role right now, and asked them to keep in touch. Being responsive and staying connected may have helped the fact that recruiters for AirBnB, Meta, Uber, and Snowflake reached out with opportunities right after my layoff and limited the companies that I had to apply to myself.

2. Focusing on being a good engineer

Throughout my career, I made it a priority to ask questions and not do my job like a mechanical task. Asking why things work, and why things are done the way they are made me a better engineer, and made it much easier for me to answer both technical and leadership questions at interviews even though my schedule was packed to the brim.

I was also able to reach out to an ex-manager from my time at eBay who moved to Meta and ask him to refer me, because he remembered me and was happy to vouch for my work.

3. Domain variety

Even after my first layoff, I never tested the market every few years to gauge my worth. Switching companies was always a last resort, and I only moved when I felt like I had exhausted my learning or when I no longer saw a work-life balance fit.

I asked for internal transfers and joined growing companies where I could hone various domains. I moved from security to core infrastructure and then to infrastructure for running simulations, which made me a good fit for many different openings and increased the chances of recruiters approaching me.

4. Not stressing over the big picture

One mindset that helped me stay calm during the process was focusing on what I could control, which was preparation for the interviews. Thinking about the thousands of other tech workers who have been let go would only have been demoralizing. Whenever thoughts of the layoff crossed my mind, I stopped thinking about it and focused on practicing my coding and system-design interviews.

5. Organizing

Eswarakrishnan's January calendar of interviews

Vishwanath Eswarakrishnan

Having a calendar where I noted all my interviews, along with the names of the recruiters, was a lifesaver during that time period. Jotting down all my appointments helped me plan each day, especially since I gave a few interviews at the hospital during doctor visits for my newborn.

Writing down the names of the people I was interviewing with gave me context and jogged my memory about what had been discussed with the company or the hiring manager before.

Do you work in tech or management consulting and have a story to share about your career journey? Email this reporter at shubhangigoel@insider.com.

Read the original article on Business Insider
7 June 2024
Analysts name 3 ASX income stocks to buy now
The Australian share market is a great place to generate a passive income.

But which ASX stocks would be good options for income investors right now?

Let’s take a look at three ASX income stocks that analysts have recently named as buys:

Inghams Group Ltd (ASX: ING)

The team at Morgans thinks that income investors should be looking at Australia’s leading poultry producer, Inghams.

Its analysts believe the company’s shares are being undervalued by the market. Particularly given its leadership position and attractive dividend yield. Morgans also highlights that the company is “leveraged to poultry – the affordable, healthy, sustainable and growth protein.” This bodes well for the future.

As for those attractive dividend yields, Morgans is expecting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.67, this equates to dividend yields of 6% and 6.25%, respectively.

Morgans has an add rating and $4.40 price target on its shares.

Orora LtdÂ (ASX: ORA)

Over at Goldman Sachs, its analysts think that Orora could be an ASX income stock to buy. It is one of the world’s largest packaging companies. It manufactures packaging products such as glass bottles, beverage cans, and corrugated boxes.

Goldman appears to believe a selloff this year has created a buying opportunity for patient investors. Especially given its cheap valuation and above-average dividend yields.

In respect to the latter, the broker is forecasting dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025. Based on the current Orora share price of $2.19, this will mean yields of 5.5% and 5.9%, respectively.

Goldman has a buy rating and $3.00 price target on its shares.

Super Retail Group LtdÂ (ASX: SUL)

A third ASX income stock to buy could be Super Retail. It is the owner of popular retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Goldman Sachs is also a fan of Super Retail and thinks it would be a great option for income investors. Especially given its loyalty program. Its analysts continue to “believe that SUL is building a competitive advantage through 11.1mn members and 76% sales to members, which will help drive sales in a more complex operating environment.”

Goldman believes this positions the company to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.23, this will mean yields of 5% and 5.5%, respectively.

Goldman has a buy rating and $17.80 price target on its shares.

The post Analysts name 3 ASX income stocks to buy now appeared first on The Motley Fool Australia.

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

Before you buy Inghams 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 Inghams Group Limited wasn’t one of them.

The online investing service heâs 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 Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
7 June 2024