Author: openjargon

  • What went right and what went wrong for the BHP share price in FY 2024?

    Three miners looking at a tablet.

    The BHP Group Ltd (ASX: BHP) share price underperformed the benchmark in the financial year just past.

    Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed out FY 2023 trading for $44.99. On Friday, the last trading day of FY 2024, shares ended the day changing hands for $42.68 apiece.

    That saw the BHP share price down 5.1% over the 12 months, significantly trailing the 7.8% gains posted by the ASX 200 over this same period.

    Now, this doesn’t include the (rounded) $2.35 in fully franked dividends BHP shares delivered over the year.

    If we add those back in, the accumulated gains for the BHP share price work out to 0.1%.

    Of course if we add dividends back in to the ASX 200 returns, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, gained 12.1% over this time.

    Here’s what went right and what went wrong for BHP over the 2024 financial year.

    Headwinds and tailwinds for the BHP share price

    Things were looking up for the BHP share price when the first half of FY 2024 wound down.

    On 20 December, shares closed the day at $50.72, 16% above current levels.

    Now, as you may be aware, iron ore counts as BHP’s biggest revenue earner with copper coming in at number two.

    A look at how these industrial metals performed gives us some valuable insight into the two distinctly different half years the miners faced.

    Iron ore kicked off FY 2023 trading for around US$110 a tonne. On 3 January, the steel-making metal topped US$144 a tonne, helping drive the big surge in the BHP share price.

    But amid ongoing weakness in China’s property and industrial sectors, the iron ore price dropped to US$100 a tonne in early April and is currently trading for US$106 a tonne.

    Copper has been more resilient. The copper price stood at US$8,315 a tonne at the beginning of FY 2024 before hitting near-record highs of US$10,890 in late May. But the copper price, too, has retraced since then, currently fetching US$9,600 a tonne.

    Overall this saw the miner performing quite well in the first half of the year.

    For the six months to 31 December, BHP reported a 6% year on year increase in revenue to US$27.2 billion.

    And underlying profit was flat at US$6.6 billion. Though that did not include two massive exceptional items. Namely its US$2.5 billion impairment of Western Australia Nickel and a US$3.2 billion cost related to the Samarco tailings dam failure in Brazil.

    The Anglo American takeover saga

    At the end of the day, it’s hard to say whether the BHP share price was helped or hindered when the ASX 200 miner’s $74 billion takeover offer for global miner Anglo American (LSE: AAL) eventually fell through.

    A successful acquisition would have seen BHP become the biggest copper producer on the planet. Though this would have required a big cash splash and some tricky South African asset divestments from Anglo.

    Atop Anglo American’s copper assets, BHP would also have acquired its Queensland coal assets, including the Grosvenor mine.

    Though not taking ownership of Anglo’s Grosvenor coal mine may be a mixed blessing. Over the weekend, an underground fire forced the closure of the coking coal mine, which is likely to remain shuttered for at least several months.

    On the first day of FY 2025, the BHP share price finished trading at $43.30, up 1.45%.

    The post What went right and what went wrong for the BHP share price in FY 2024? appeared first on The Motley Fool Australia.

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

    Before you buy Bhp Group shares, consider this:

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 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.

  • ‘House of the Dragon’ just introduced a big-mouthed new character — but he’s probably going to be important later on

    tom bennett as ulf the white in house of the dragon. he's a middle aged man with shoulder length grey hair, placing a hand up to his lips as he sits at a tavern table with a group of men
    Tom Bennett as Ulf the White in season two, episode three of "House of the Dragon."

    • "House of the Dragon" introduced Ulf, a common man who claims to be a Targaryen bastard.
    • His claim may have merit — in "Fire and Blood," he proves to be a pivotal character.
    • Here's who Ulf is in "Fire and Blood," and what happens to him in the book. 

    Warning: Spoilers ahead for "House of the Dragon" season two, episode three, and the book "Fire and Blood."

    This week's episode of "House of the Dragon" took a brief detour into the seedier parts of King's Landing — and in the process, it introduced us to yet another character who will likely serve a pivotal role later in the series.

    Season two, episode three, titled "The Burning Mill," briefly spotlighted a cheery bar patron, Ulf. After working the room a bit, Ulf settles down at a table and almost immediately claims to a stranger he's a Targaryen descendant.

    While it'd be easy to dismiss Ulf's claim as drunken hearsay, there's probably some merit to it. We're probably going to be seeing a lot more of Ulf in "House of the Dragon," depending on how closely it follows "Fire and Blood," George R.R. Martin's history of Westeros.

    If you're not keen on spoilers for "Fire or Blood," or the potential future of "House of the Dragon," best not to read ahead.

    Ulf claims to be the son of Baelon the Brave, and thereby a descendant of King Jaehaerys

    At the tavern, Ulf meets a Dornish man and remarks that Dorne was one part of Westeros that his house never conquered. When pressed, he plays coy, and then lets slip that King Jaehaerys was his grandsire. His father, he says, was Baelon the Brave, making Ulf the illegitimate brother of Daemon Targaryen and King Viserys.

    Ulf also refers to Rhaenyra — his niece, if his claims are to be believed — as the "one true queen," a dangerous move in the Aegon II-controlled King's Landing.

    "The blood of the dragon runs through these veins, and yes, men would take my head for it," Ulf says. "A Dragonseed must watch his own neck when he has no white-cloaked guardsmen to do it for him."

    Ulf eventually shuts up after saying that his "nephew," Prince Jacaerys Velaryon, is the rightful heir to the Iron Throne. Coincidentally, that's the moment that Aegon II walks in with his entourage — and Ulf is quick to call out an "All hail the King!"

    Ulf becomes a dragon rider in 'Fire and Blood'

    In "Fire and Blood," Prince Jacaerys issues a challenge in a bid to make use of the unclaimed dragons during the war: Any man able to successfully mount a dragon without a master would be richly rewarded. Some of those men were "seeds" — bastards who had Targaryen blood in their veins.

    Ulf successfully bonded with Silverwing, the former mount of Queen Alysanne, the sister and wife of King Jaehaerys. During that time, he was referred to as "Ulf the White" or "Ulf the Sot," referencing his white hair and drinking habit. Eventually, he came to be known as Ulf White.

    Ulf fought alongside other dragon riders like Hugh Hammer in the Battle of the Gullet, a pivotal sea battle during the war. "Fire and Blood," citing the historical record left by the dwarf Mushroom, recounts that both Hugh and Ulf celebrated after the violent battle, with Ulf declaring that they should become lords.

    Ulf and Hugh were several times denied entry into nobility. Rhaenyra shut down a potential marriage between Ulf and the daughter of Lord Stokeworth, after killing the lord for betraying her. She also denied Daemon's proposal of granting Storm's End, the seat of House Baratheon, to Ulf, after the Baratheons sided with Aegon II during the war.

    In the book, Ulf and Hugh betrayed Rhaenyra

    During the war, Ulf, Hugh, and their dragons Silverwing and Vermithor, were sent to the town of Tumbleton to defend it from Lord Ormund Hightower, who was advancing toward King's Landing. During the battle, however, the two defected and attacked the town instead.

    According to Mushroom's historical account in "Fire and Blood," Ulf descended into hedonism, raping multiple women in Tumbleton each night and constantly drinking. Though Prince Daeron, Alicent and King Viserys' youngest son, had named him the Lord of Bitterbridge, he coveted Highgarden, the seat of House Tyrell. He and Hugh refused to advance on King's Landing until they were rewarded sufficiently, and the lords under Prince Daeron conspired to kill them.

    But the fight came to Tumbleton when Addam Velaryon (previously Addam of Hull), another dragon rider, attacked the city on his dragon Seasmoke. Ulf was drunk and asleep during the battle, during which Hugh, Daeron, and Addam all died. When he awoke, he agreed to march on King's Landing, and said that he should be instilled on the throne after they conquered it.

    Shortly after, Hobert Hightower killed Ulf — and in the process, himself — through a poisoned cask of wine.

    "House of the Dragon" season two airs Sundays at 9 p.m. ET on HBO and is streaming on Max.

    Read the original article on Business Insider
  • Russia’s new 3.3-ton glide bomb escalates the destructive potential of its airstrike campaign against Ukraine

    A glide bomb in the air.
    A Russian FAB-500 with a precision guidance kit is mounted on a Su-34.

    • Russian forces reportedly used a deadly 3.3-ton glide bomb for the first time earlier this month.
    • Video footage appeared to show the FAB-3000 M-54 destroying Ukrainian targets in Kharkiv.
    • The new massive bomb's destructive capability and range make it a dangerous threat to Ukraine.

    The Russian Aerospace Forces are using a new munition in Ukraine that might change the situation on the ground.

    In June, Russian aircraft deployed for the first time the FAB-3000 M-54 glide bomb. Weighing thousands of pounds, the munition can prove quite destructive for Ukrainian military and civilian targets. Ukrainian outlets reported the use of the glide bomb against Ukrainian troop concentration points in Kharkiv Oblast in eastern Ukraine.

    Although the bombing itself appears to have been inaccurate, the FAB-3000 M-54's destructive capability is such that even munitions that do not hit their specific targets can be deadly because of their greater destruction radius. The fact that this is a glide bomb and it can be released outside the range of Ukrainian air defenses makes the munition even more dangerous.

    "Russian forces used the new FAB-3000 M-54 bomb with a unified planning and correction module (UMPC) to strike Ukrainian positions in Kharkiv Oblast for the first time, representing a new Russian capability with a high potential for destruction if Russian forces continue to be able to use such weapons uninhibited," the Institute for the Study of War assessed in a recent operational update on the war.

    Ukrainian Air Force officials, however, noted that they couldn't provide a final estimate on the exact type of munition used by the Russian Aerospace Forces.

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

    The FAB-3000 M-54 is a conventional, or "dumb," bomb that can be converted into a glide munition with the addition of the UMPC.

    In March, Russian officials first announced the mass production of FAB-3000 M-54 munitions. Previously, the Russian military had trouble attaching the heavy munition, which weighs almost 7,000 lbs, to tactical aircraft. However, Russian technicians seem to have found a solution.

    "The fact that Russian forces have figured out how to launch FAB-3000s is a significant development and will increase the destructive potential of Russia's ongoing glide bomb attacks against Ukrainian forces and infrastructure," the Institute for the Study of War added.

    As the conflict continues, the Russian Aerospace Forces have increasingly been relying on guided and unguided glide bombs to hit Ukrainian targets. These munitions are released from long distances and travel or glide to their targets while the aircraft launching them is safely away.

    "Russian forces have already increased guided and unguided glide bomb use against Ukraine, particularly in Kharkiv Oblast, to devastating effect, and should Russian forces be able to launch massive barrages of FAB-3000s (or even heavier guided glide bombs), they will be able to cause even more widespread damage to Ukrainian frontline positions and critical infrastructure," the Institute for the Study of War stated.

    The performance of the Russian Aerospace Forces

    A Soviet aircraft bomb FAB-3000 M-54 is on display at the Aviation Museum in Kyiv.
    A Soviet aircraft bomb FAB-3000 M-54 is on display at the Aviation Museum in Kyiv.

    The Russian Aerospace Forces have largely failed in the conflict so far. When it comes to air superiority, although more numerous and with better quality, Russian aircraft have not established control over the skies. Ukrainian pilots have been putting out a stalwart resistance, and there are also too many antiaircraft systems of all ranges on the battlefield.

    When it comes to strategic strikes, they have faired only slightly better. Relying on a combination of stand-off and glide munitions, Russian aircraft have been targeting Ukrainian critical infrastructure and urban centers.

    However, the questionable quality of these munitions, in conjunction with the powerful — but depleting — Ukrainian air defenses, have largely ensured that these strikes haven't been as consequential to the course of the war as the Kremlin would want.

    Finally, in terms of close air support, the Russian Aerospace Forces have done better but their performance is still far from altering the battlefield.

    Using fixed- and rotaty-winged attack aircraft, the Russian military has been able to gain tactical superiority during some times and in specific areas of the contact line. But beyond causing some additional casualties to the Ukrainian forces, Russian tactical aviation hasn't made a difference.

    READ MORE FROM SANDBOXX NEWS

    Read the original article on Business Insider
  • Jack Smith’s Trump prosecutions will survive SCOTUS, but barely, experts say

    A split image of Special Counsel Jack Smith (left) and Donald Trump (right)
    Special Counsel Jack Smith (left) could have his prosecutions against Donald Trump (right) delayed, thanks to SCOTUS's decision on presidential immunity.

    • The immunity decision will delay and diminish Jack Smith's two Trump prosecutions, experts predict.
    • In the documents case, Trump can claim that "declassifying" them,  back in DC, was an official act.
    • In the J6 case, he can seek immunity for allegations involving talking to another federal official.

    It's been a pretty bad day for Special Counsel Jack Smith.

    Both of his prosecutions of Donald Trump — the Mar-a-Lago documents case in Florida, and the insurrection case out of Washington, DC — will be delayed and diminished by Monday's United States Supreme Court's immunity decision, legal experts predict.

    The SCOTUS decision found that former presidents are presumptively immune from prosecution for acts they took while in office. It leaves it to lower courts to decide whether Trump conspired to overturn the 2020 election.

    That review of the insurrection case — by the DC Circuit Court of Appeals and, likely, the Supreme Court once again — will take many months.

    Meanwhile, Trump can be expected to use his new immunity superpowers to also challenge the documents case, including by reviving his claim that he somehow "declassified" the papers back in DC, in what was an "official" act.

    "With the January 6th case, the one that was at issue here, this makes it absolutely clear there's no way this is going to trial before the election," said Cliff Sloan, a Georgetown University law professor and constitutional law expert.

    "For the Florida case, the decision has no direct impact," noted Michel Paradis, an attorney who teaches national security and constitutional law at Columbia Law School.

    "But it is likely to disrupt and complicate the prosecution, in so far as there will be a new round of arguments on how the Supreme Court decision affects the transportation of documents, etc.," he said.

    Sloan said that it's possible that Trump's attorneys make new arguments in the classified documents case based on the SCOTUS ruling, but explained, "It'll be more difficult because the core of that case has to do with actions he took when he was no longer president with regard to classified documents."

    Still, Trump can now argue that before he left office, he somehow "declassified" the documents, an official act that now cannot be challenged.

    Prosecutors say Trump broke federal law when he took documents with him from the White House to Mar-a-Lago, his Palm Beach, Florida, estate and private club.

    The Florida litigation will be all the more complicated, Paradis added, "because the Supreme Court also held that you can't inquire into a president's 'motives' for taking any official act. And so precisely how that will work is up in the air at the moment."

    According to Monday's decision, "In dividing official from unofficial conduct, courts may not inquire into the president's motives."

    The court continued, "Such a 'highly intrusive inquiry would risk exposing even the most obvious instances of official conduct to judicial examination on the mere allegation of improper purpose."

    Circling back to the January 6 case, one of that indictment's allegations is almost certain to now be challenged as an official act for which he is immune from prosecution, said Paradis.

    Trump is accused of trying to pressure his acting attorney general and the Justice Department to overturn the 2020 presidential election results. Those discussions "are readily categorized" as official acts, Monday's decision states.

    This is true even if Smith's claims are correct, and Trump's efforts were improper, the decision said.

    "Because the President cannot be prosecuted for conduct within his exclusive constitutional authority, Trump is absolutely immune from prosecution for the alleged conduct involving his discussions with Justice Department officials, the decision said.

    "Other allegations — such as those involving Trump's interactions with the vice president, state officials, and certain private parties, and his comments to the general public — present more difficult questions" that will now be argued over, the decision also states.

    "The biggest difficulty will be proving that something is not an official act," noted Paradis.

    "The way the Supreme Court set up the new rule is that most everything the president does is 'presumptively immune,'" he said.

    "It then falls to the prosecution to show that the 'presumptively' official act was in fact 'unofficial.' However — and this is where Justice Barrett broke with the majority — prosecutors can't inquire into the president's motives and are also largely prohibited from inquiring into the president's communications," he added.

    "So you have to show what the president intended while being forbidden from proving what was in his mind," Paradis said.

    By that new measure, any communication Trump has with another federal official is, for all practical purposes, immune from prosecution, he said.

    In its decision, Sloan said, the Supreme Court was "unwilling to say that even a single allegation in the indictment" against Trump over his over his efforts to overturn the 2020 election "was an example of an unofficial act."

    "It was willing to say some things were clearly official acts, but it was unwilling to give a single example of something that was unofficial," said Sloan, adding, "Courts would have to sort out what's official and what's unofficial, and if it's official, what kind of official action is it?"

    "In addition to everything else, it's a kind of complicated structure, is very unpredictable, and it just puts it in the hands of courts to make these judgments," Sloan said.

    Read the original article on Business Insider
  • 5 things to watch on the ASX 200 on Tuesday

    A man looking at his laptop and thinking.

    On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell 0.2% to 7,750.7 points.

    Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

    ASX 200 expected to fall again

    The Australian share market is expected to fall again on Tuesday despite a good start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% lower. On Wall Street, the Dow Jones was up 0.1%, the S&P 500 rose 0.3%, and the Nasdaq charged 0.8% higher.

    Buy Xero shares

    The Xero Ltd (ASX: XRO) share price could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its conviction buy rating with an improved price target of $180.00. This implies potential upside of 34% for investors from current levels. It said: “Following our June UK trip, attending Xerocon and meeting with accountants/competitors/experts, we are encouraged with the positive feedback (vs. our 2022 trip), in particular around its refreshed strategy and increased focus. [We] increase our 12m TP +10% to A$180 (36X EBITDA, from 33X) given increased confidence in the UK, a key growth market for Xero. Reiterate Buy (on CL). “

    Oil prices race higher

    It looks set to be a great session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices raced higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$83.44 a barrel and the Brent crude oil price is up 2% to US$86.72 a barrel. This was driven by optimism that summer fuel demand will tighten the market.

    Hub24 named as a buy

    Hub24 Ltd (ASX: HUB) shares are a buy according to analysts at Bell Potter. This morning, the broker has initiated coverage on the investment platform provider’s shares with a buy rating and $53.20 price target. It commented: “Our favourable investment view is supported by: (1) changes in advice, with investment professionals shifting away from institutionally owned platforms while seeking comprehensive technology solutions; (2) single digit market share and leading capital flows; and (3) increases to the super guarantee contribution and rollovers into self-managed super funds.”

    Gold price edges higher

    ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a reasonably good session on Tuesday after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.1% to US$2,342.1 an ounce. Traders were buying gold ahead of the release of US jobs data.

    The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Evolution Mining Limited right now?

    Before you buy Evolution Mining 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 Evolution Mining 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 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • How these three ASX gold stocks soared above the rest in FY 2024

    a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

    ASX gold stocks, on average, outperformed the benchmark in the financial year just past. That was helped by a 21% surge in the gold price over the 12 months, with the yellow metal currently fetching US$2,327 per ounce.

    As for the gold miners, in FY 2024 the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gained 11.2% compared to an 8.3% gain posted by the All Ordinaries Index (ASX: XAO).

    While that’s some significant outperformance, it pales in comparison to the gains delivered by the top three performing ASX gold stocks over the financial year.

    Which miners are we talking about?

    Read on!

    The top 3 ASX gold stocks of FY 2024

    The third-best performing ASX gold stock in FY 2024 was Red 5 Ltd (ASX: RED).

    Red 5 ended FY 2023 trading at 19 cents a share and closed on Friday trading for 36 cents a share for a very tidy 89% gain.

    Atop a series of successful exploration results over the year, the Red 5 share price also enjoyed a 20.5% daily gain on 18 September.

    That came as investors reacted to news that someone had bought almost 11% of Red 5’s shares in a single block trade for 26 cents a share. That represented a premium of 18.2% to the share price on the day. Though, as we know now, Red 5 was poised to keep running higher.

    The miner also caught some tailwinds from its own success. This saw it added to the ASX 200 on 18 March as part of the S&P/ASX Indices quarterly rebalance.

    Moving on to the second-best performing ASX gold stock in FY 2024, we have FireFly Metals Ltd (ASX: FFM).

    FireFly shares closed FY 2023 trading at $5.40 and ended the 2024 financial year trading at 75 cents.

    Wait. What?

    Oh, right. The ASX gold stock underwent a 15 to 1 share consolidation in early December.

    That means we need to compare $5.40 a share to $11.25 a share (15 x $0.75). Meaning the FireFly share price soared 108% over the 12 months.

    As you’d expect, a lot went right for the miner, including a successful $52 million capital raise in March that will enable the company to accelerate its resource growth.

    The surging share price also saw FireFly added to the All Ords on 28 March as part of the same S&P/ASX Indices quarterly rebalance that saw Red 5 added to the ASX 200.

    Most recently, the FireFly Metals share price closed up 13.7% on 19 June when the miner reported on high-grade copper and gold assays from the drilling campaign at its Green Bay Copper-Gold Project, located in Canada.

    Gold star performer

    Which brings us to the top-performing ASX gold stock in FY 2024, Ora Banda Mining Ltd (ASX: OBM).

    The Ora Banda share price was on a solid uptrend for most of the year. Shares finished out FY 2023 trading at 13 cents and closed on Friday changing hands for 34 cents apiece, up a whopping 162%.

    The miner enjoyed tailwinds from strategic asset sales, ongoing promising exploration results, and a $30 million capital raise to advance its Sand King underground mining works.

    Investors were also enthusiastic about the ASX gold stock’s multi-million-dollar farm-in agreement with Wesfarmers Ltd‘s (ASX: WES) Davyston Exploration, covering the non-gold mineral rights at its Davyhurst Project.

    The post How these three ASX gold stocks soared above the rest in FY 2024 appeared first on The Motley Fool Australia.

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

    Before you buy Firefly Metals 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 Firefly Metals 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 24 June 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Would Warren Buffett buy CBA shares today?

    a woman wearing the black and yellow corporate colours of a leading bank gazes out the window in thought as she holds a tablet in her hands.

    Legendary investor Warren Buffett has a keen eye for buying quality businesses at a good price.

    Known as the Oracle from Omaha, Buffett is one of the world’s greatest investors, in my opinion. He has built his company, Berkshire Hathaway, into one of the biggest global investment businesses, with long-term investments including Coca-Cola, American Express, Apple, Moody’s and Bank of America.

    Commonwealth Bank of Australia (ASX: CBA) shares are often described by analysts as the highest-quality company in the Australian banking sector.

    The CBA share price has been a strong performer for shareholders over the past year, with an increase of around 25%. After such a large rise, would Warren Buffett be interested in the ASX bank share?

    Reasons why the Aussie bank could make it onto Buffett’s watchlist

    Bank of America is one of the larger positions in Buffett’s Berkshire Hathaway portfolio. The giant US investment business also has positions in Capital One and Citigroup. So clearly, Buffett has shown his willingness to invest in banks.

    These big banks have shown their ability to grow earnings over the long term thanks to the growth of the US economy. Meanwhile, CBA has grown its earnings over the long term with the growth of the Australian economy and population.

    Some (US) banks trade on relatively low price/earnings (P/E) ratios and can offer decent dividend yields.

    CBA is viewed as one of the highest-quality banks in the world. It has a relatively high return on equity (ROE), a nice balance between relatively low arrears and a good net interest margin (NIM), and a fairly stable dividend.

    Buffett typically likes to invest in the best industry operator because they may be able to win and retain more customers and deliver better returns than competitors. As he once said:

    It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.

    Is the CBA share price at a fair price?

    While Buffett likes investing in great businesses, he won’t necessarily buy a business at any price. He once said:

    Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.

    According to the independent estimates on Commsec, the CBA share price is valued at more than 22x FY25’s estimated earnings.

    In comparison, JPMorgan shares are valued at 12x FY25’s estimated earnings and Bank of America shares are valued at under 12x FY25’s estimated earnings, according to Commsec. The CBA forward P/E ratio is not far off being double that of the large US banks.

    I think Warren Buffett might say that CBA shares are too expensive for him, and he’d rather buy the shares of one of the large US banks.

    The post Would Warren Buffett buy CBA shares today? 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 24 June 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 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.

  • Houthi bomb boats, including some not seen before, are threatening Red Sea ships while the US Navy’s aircraft carriers are away

    Footage purporting to show a Houthi drone boat.
    Footage purporting to show a Houthi drone boat.

    • The Houthis have stepped up their attacks and intimidation efforts with their drone boats.
    • In their latest messaging, the rebels shared a new video of a previously unseen system in action.
    • The uptick comes as the US Navy lacks an aircraft carrier in the region.

    The US Navy is in the middle of changing up its forces in the Middle East. An aircraft carrier that spent months in the counter-Houthi fight heads home, leaving a gap as another one makes its way toward the region to take over.

    It has been over a week since the US last had an aircraft carrier on station in the Red Sea, meaning the Pentagon can't depend on the routine combat air patrols and immense firepower having a carrier in the region has provided over the past seven months.

    The Houthis have been stepping up drone boat operations, employing small watercraft that can be packed with explosives and detonate on impact. These weapons can be used to strike merchant vessels and cause catastrophic damage, which has already been the case in at least one instance in recent weeks.

    Drone boats are not a new capability for the Houthis. They have employed them in years past and throughout their ongoing campaign of attacks on merchant vessels and commercial shipping lanes.

    During the first few months of the year, US airstrikes in Yemen destroyed the drone boats nearly every time the Houthis tried to send them into the water. But in June, the Iran-backed rebels managed to launch well over a dozen crafts — far more than they had in any previous month. Last month, one of the Houthi drone boats struck a commercial vessel, the MV Tutor, for the first time since the campaign began in November.

    View of an explosion the MV Tutor, which the Houthis struck in the Red Sea on June 12, in this screen grab obtained from a video.
    View of an explosion the MV Tutor, which the Houthis struck in the Red Sea on June 12, in this screen grab obtained from a video.

    In the June 12 attack, the Houthis used a small, slow-moving boat staffed with two dummies, appearing to disguise the crude-looking weapon as a common fishing craft. Hours after the initial strike, the rebels hit the Tutor with a missile, causing it to later sink.

    More than a week after the Tutor attack, on June 22, the Dwight D. Eisenhower Carrier Strike Group, which spent more than seven months battling the Houthis, finally left the region to head home, bringing with it the carrier Ike and dozens of fighter aircraft.

    The Ike's eventual replacement — the Theodore Roosevelt Carrier Strike Group — won't arrive for some time. And in the meantime, the Houthis appear to be taking advantage of the decreased US Navy air patrols and employing more drone boats.

    An F/A-18E Super Hornet launches from the flight deck aboard the Nimitz-class aircraft carrier USS Dwight D. Eisenhower in the Red Sea on April 12.
    An F/A-18E Super Hornet launches from the flight deck aboard the Nimitz-class aircraft carrier USS Dwight D. Eisenhower in the Red Sea on April 12.

    United Kingdom Maritime Trade Operations, an element of the British Royal Navy, has reported multiple incidents over the past few days that appear consistent with such attacks.

    On June 27, for instance, UKMTO cited one threat as a "waterborne improvised explosive device," and on June 30, it said a merchant vessel was approached by "a mixture of fast boats and smaller kayak-type boats," adding that "some were observed as uncrewed."

    On June 30, the Houthi rebels revealed what they said is a highly advanced drone boat that can travel at speeds of 45 nautical mph and deliver an explosive payload of up to 3,300 pounds. The group claimed to have used the drone boat in a June 23 attack on the MV Transworld Navigator and published footage purporting to show the unmanned craft strike the much larger merchant vessel.

    Business Insider was unable to immediately verify the Houthi claim. US Central Command said at the time that the Transworld Navigator was hit by a "suspected uncrewed aerial system" and did not mention a drone boat.

    Footage purporting to show a Houthi drone boat.
    Footage purporting to show a Houthi drone boat. The rebels have an arsenal of unmanned crafts with different variants.

    In the June 30 video, the Houthis also showed the drone boat going through various maneuvers and training exercises. At one point, rebels can be seen manually operating the craft before they dive off the side into the water and allow it to be remotely piloted.

    The newly revealed drone boat is far more sophisticated-looking than the one that struck the Tutor and appears notably larger than unmanned crafts that the rebels publicized and tested earlier in June, underscoring the different capabilities that the Houthis have in their arsenal.

    Experts have said that the uptick in drone boat attacks and the Houthis' newfound success in striking commercial vessels with such weapons indicates that they're learning from their many months of attacks and are able to adjust their operations accordingly.

    Read the original article on Business Insider
  • Police arrested a man they say shot a Walmart drone. Armed Americans could pose a headache for air deliveries.

    Wing drone carrying Walmart
    A Wing drone carrying a Walmart package.

    • A Florida man admitted to shooting a Walmart drone last week, law enforcement officials said.
    • For the past decade, gun owners have been shooting at UAVs — in violation of Federal regulations.
    • Now, as more retailers use drones, armed Americans may add further complication to delivery by air.

    Retailers have had to solve a long list of technological, regulatory, and commercial challenges in order to offer deliveries by drone.

    But one complication remains especially difficult to predict: US gun owners.

    In the latest episode, the Lake County Sheriff said last week that Dennis Winn admitted to shooting a Walmart drone with a 9mm pistol as it flew near his home in Florida.

    According to the arrest affidavit, Winn told officers he had prior experience with drones flying over his house and believed the aircraft to be surveilling him.

    He then went inside, got his gun from a safe, came out, and fired one shot at the drone, which was roughly 75 feet in the air, the affidavit said.

    "I then told him that he had struck a Walmart drone," the Sheriff's deputy said in the affidavit. "The defendant looked in disbelief and questioned, 'Really?'"

    The Sheriff's Office said a bullet hole was found in the payload area of the drone after it flew back to a nearby Walmart.

    The office said Winn was taken into custody and faces three charges, including "shooting at an aircraft."

    In the past decade, some US gun owners have shot at unmanned aerial vehicles, or UAVs, but what many may not realize is they are committing a serious crime in the eyes of the federal government.

    The Federal Aviation Administration doesn't distinguish between a small drone and a jumbo passenger jet when it comes to attempts to sabotage commercial aircraft: shooting at one is a felony, punishable by a fine and up to 20 years in prison.

    Even though the FAA has held this position since 2016, the message doesn't seem to have gotten through to some people. The agency only recently started allowing unmanned commercial aircraft to fly beyond the operator's direct line of sight.

    In the past two years alone, incidents in North Carolina, Florida, and California made headlines when individuals with guns targeted drones — two of which belonged to law enforcement.

    As more retailers use drones, armed Americans pose a potential complication to deliveries by air.

    Two years ago, when Amazon was rolling out a test of its drone delivery service in California, The Washington Post reported that one man at a local archery shop joked that it was "Target practice!"

    Now Walmart is expanding its use of drones beyond the initial test markets, where the company says it has conducted over 20,000 safe deliveries. The retail giant's goal is to have the "largest drone delivery footprint of any US retailer."

    And Walmart isn't alone. Earlier this year, DoorDash announced a drone delivery test with a Wendy's restaurant in Virginia, and several Chick-fil-A restaurants have tested the tech in recent years as well.

    Perhaps if drones become common enough, people will simply stop noticing — or shooting — them.

    Read the original article on Business Insider
  • Can Biden survive mounting fallout from the presidential debate?

    Democrats are scrambling to control the damage after Biden's poor debate performance. The president says he will stay in the race despite calls to step aside.

    Read the original article on Business Insider