Author: openjargon

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after the company announced it has entered into a scheme implementation deed with Brookfield, under which Brookfield will acquire 100% of Reliance Worldside shares for US$3.38 per share. This cash offer represents a 43% premium to RWC’s six-month VWAP and values the company at an enterprise value of approximately US$2.9 billion, or A$4.75 per share.

What did Reliance Worldwide report?

• Scheme Implementation Deed signed for Brookfield to acquire 100% of RWC shares via a scheme of arrangement
• Offer price: US$3.38 cash per share (~A$4.75 based on exchange rates)
• Total enterprise value: approximately US$2.9 billion
• Premiums: ~43% to six-month VWAP, ~32.7% to three-month VWAP, and ~31.5% to undisturbed price
• Implied FY26 EV/EBITDA multiple: ~12.1x (post-AASB16)
• Shareholders can elect to receive payment in AUD or USD at implementation

What else do investors need to know?

The agreement includes a “Go Shop” provision, allowing Reliance Worldwide’s board to actively seek out alternative bids until 15 October 2026. This means shareholders have the opportunity to benefit if a superior proposal emerges. After the Go Shop period, standard exclusivity, deal protections, and matching rights apply, including a US$25.3 million break fee and a reverse break fee on the same terms.

Completion of the transaction is subject to shareholder and regulatory approvals, including the Foreign Investment Review Board, ACCC, and equivalent authorities in the US, Germany and Ukraine. An independent expert will report on whether the scheme is in shareholders’ best interests.

What did Reliance Worldwide management say?

Reliance Worldwide Chair Russell Chenu said:

The Board is unanimous in its view that this Transaction is in the best interests of RWC shareholders. The Board has carefully assessed the proposal on a fundamental valuation basis, considering RWC’s strategic position, long-term growth opportunities and cash generation. The Board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the Cash Consideration and unanimously recommends that RWC shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interests of shareholders. In addition, the ‘Go Shop’ process provides us with the opportunity to explore broader buyer interest in RWC which will allow shareholders to be fully informed when making their decision on the Transaction

What’s next for Reliance Worldwide?

The next step for Reliance Worldwide shareholders will be receipt of a Scheme Booklet, expected in November 2026, with full details of the proposal, including the independent expert’s report. A Scheme Meeting, where shareholders will vote on the deal, is tentatively scheduled for later in 2026. If the deal is approved and all conditions are met, implementation is targeted for Q1 2027. If completion is delayed past March 2027, a “ticking fee” will accrue to shareholders.

Shareholders are encouraged to take no action until formal materials are received. The board unanimously recommends the proposal, subject to no superior bid and a positive expert report.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have risen 3%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Brookfield moves to acquire Reliance Worldwide Corporation at a 43% premium appeared first on The Motley Fool Australia.

More reading

• 10 ASX 200 shares downgraded by analysts this week
• Here are the top 10 ASX 200 shares today
• Reliance Worldwide FY26 profit falls but receives Brookfield takeover offer

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Netwealth Group Ltd (ASX: NWL) shares have endured a tough 12 months. 

However, a new report from Bell Potter indicates it could now be a considerable value opportunity.

The positive outlook has come on the back of a key announcement from the company yesterday. 

Netwealth Group is a financial services and technology company. 

It provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software as a service (SaaS), a retail superannuation fund, and an administration business.

What did Netwealth announce?

As reported by my colleague Laura Stewart yesterday, Netwealth announced it will acquire Paradino, an AI-enabled adviser workflow automation business, for a total upfront consideration of $20 million. 

Netwealth will also invest an additional $10 million over two years to support Paradino’s growth and technology development.

For investors, the main takeaway is that the acquisition of Paradino will significantly strengthen Netwealth’s adviser platform capabilities. 

While Netwealth has historically focused on platform administration and implementation, the deal brings advice workflow automation and specialist AI engineering expertise in-house, expanding its ability to deliver technology-led solutions to advisers.

The full release can be found here.

Bell Potter cautiously optimistic 

Following the release, the team at Bell Potter updated its outlook on Netwealth shares. 

Bell Potter views the acquisition positively from a strategic perspective, seeing Paradino as a differentiated opportunity for Netwealth to expand further into adviser workflows and the broader advice value chain. 

The strong subscriber growth, low churn, adviser productivity benefits, and significant cross-sell opportunity across Netwealth’s adviser base support the rationale. 

However, Bell Potter notes that Netwealth is paying a relatively high price for Paradino, which is currently losing money. With no clear path to profitability yet, the success of the deal will depend on how well Netwealth executes its growth plans.

Big upside intact for Netwealth shares

The good news for investors is that Netwealth shares have been heavily sold off over the last 12 months, and now present a long-term value. 

At the time of writing, Netwealth shares are trading at approximately $18.77. This is almost 40% lower than a year ago. 

Following yesterday’s announcement, Bell Potter has a buy recommendation and a $30 price target. 

This indicates almost 60% upside from current levels. 

The impact from Paradino is limited. There is 10% adviser growth straight away and the price tag is fair for what could be a transformational strategic move. 

Trading on 33x, NWL continues to offer strong revenue growth potential at a discount to its prior TTC valuations.

The post Netwealth shares could be set to rise 60% in the next 12 months – Expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Netwealth to acquire AI platform Paradino, boosting adviser automation
• ASX 200 bank shares led a financial sector rebound last week
• Where I’d invest $15,000 in ASX shares now
• 40 ASX shares with ex-dividend dates next week

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The IperionX Ltd (ASX: IPX) share price is in focus after the company announced successful validation of its GenX continuous titanium production platform, highlighting major advances in throughput and reductions in unit costs.

What did IperionX report?

• GenX system achieved six times higher throughput compared to batch HAMR processing, producing over 500 kg of titanium powder.
• Power consumption dropped by more than 75% versus batch processing for each kilogram of titanium powder produced.
• Input use efficiency improved: over 45% less magnesium and more than 60% less hydrogen needed per kilogram.
• All valid product samples met strict ASTM oxygen benchmarks for titanium powder quality.
• Ongoing optimisation and engineering work are planned for industrial-scale production in Virginia.

What else do investors need to know?

GenX continuous processing marks a shift away from traditional batch-based titanium production, potentially reducing costs, processing time, and equipment use. The positive test results came from four production runs spanning 41 hours, averaging 12 kg per hour output.

IperionX’s process improvements could open more applications for titanium by making large-scale production more viable. The company believes lower reagent and power usage, along with better equipment utilisation, can materially decrease capital and labour costs per tonne.

The next phase involves integrating GenX into a complete titanium powder production line and advancing plans for the first industrial-scale GenX facility, supported by a recent US$99 million U.S. Army contract.

What did IperionX management say?

CEO and Managing Director Taso Arima said:

Achieving continuous primary titanium production has long been the ultimate aspiration for the titanium industry. IperionX’s GenX process is a continuous titanium production platform that is more efficient to operate and easier to scale. These first results exceeded our expectations: more than 500 kilograms of recycled titanium powder processed across four separate runs, with every sample meeting its relevant oxygen specification. Substantially lower magnesium, hydrogen and power consumption at steady state, together with processing throughput increasing by six times, give us a strong basis for industrial development. Our next step is the engineering and economic evaluation of the first industrial-scale GenX production line. We aim to establish a scalable platform for expansion that lowers production costs and brings titanium within reach of a broader range of applications.

What’s next for IperionX?

IperionX will continue to optimise the GenX furnace throughout Q4 2026, aiming to integrate the technology into a full-scale titanium powder production line. A technoeconomic evaluation for commercial-scale rollout is underway, targeting further cost and efficiency gains.

With ongoing support from the U.S. Department of Defense, the company’s strategy is to develop scalable, continuous titanium production for a wider range of industries, aiming to make titanium more affordable and accessible.

IperionX share price snapshot

Over the past 12 months, IperionX shares have declined 62%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post IperionX validates GenX™ titanium production: Major efficiency gains appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• IperionX wins US Army contract to ramp up titanium production
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Vicinity Centres (ASX: VCX) share price is in focus today as the company hosted its 2026 Capability Showcase, highlighting the completed redevelopments at Chadstone and Chatswood Chase – two of the Group’s flagship retail assets.

What did Vicinity Centres report?

• Chadstone’s total value now stands at $7.26 billion, with annual retail sales (MAT) of $2.74 billion, and specialty sales per sqm rising to $28,000.
• Chatswood Chase occupancy reached 99.7%, with +15% foot traffic and +26% same-store sales since redevelopment.
• Premium assets comprise 67% of Vicinity’s retail portfolio, up from 51% in 2022.
• Gearing at 26.1% and interest cover at 4.1x, with 87% of debt hedged into FY27.
• Development pipeline of $2.5 billion invested since 2022, with stabilised project yields of 5.6% (Chadstone) and 6.7% (Chatswood Chase).

What else do investors need to know?

Vicinity emphasised its ongoing capital recycling strategy, shifting more of its portfolio toward premium centres and outlets. The company reported strong leasing demand and productivity lifts after major redevelopments, with Chadstone maintaining its title as Australia’s top retail centre and Chatswood Chase achieving rapid re-leasing and income growth.

The capability showcase also spotlighted Vicinity’s disciplined balance sheet management, with continued access to diversified funding and a focus on maintaining investment-grade credit ratings. The Group reaffirmed its commitment to ESG, reporting a 45% reduction in emissions intensity since FY16 and remaining on track for Net Zero 2030 target.

What did Vicinity Centres management say?

CEO and Managing Director Peter Huddle said:

Our strategy of concentrating capital into premium, differentiated assets is delivering superior value and resilience for investors, retailers and communities.

What’s next for Vicinity Centres?

Vicinity says it will continue to focus investment on its development pipeline, including the on-time and on-budget delivery of the Galleria project and revitalisation of Uptown set for early 2027. Management also flagged early-stage planning for large-scale residential opportunities at Chatswood Chase and further mixed-use projects across the portfolio, aiming to unlock additional value and support future growth.

The Group will maintain its disciplined capital approach, keeping gearing and liquidity in check while seeking risk-adjusted returns above industry benchmarks. Its strategy remains anchored in asset renewal and balancing defensive income with growth, despite changing market conditions.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 9% over the same period.

View Original Announcement

The post Vicinity Centres: 2026 Capability Showcase highlights Chadstone and Chatswood Chase appeared first on The Motley Fool Australia.

More reading

• Vicinity Centres FY26: Profit up, distributions rise as premium focus delivers

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Once you reach your mid-60s, your superannuation should be high on your priority list. After all, at this age, retirement has either begun or is just around the corner. 

At age 66, you’ve reached the milestone for unconditional superannuation access (meaning you can access your balance regardless of whether you’ve stopped working or not). You’re also just one year away from accessing the Age Pension payment if eligible.

That means, by this point in your life, you should know exactly how much super you have saved and what you need to be able to live the type of retirement you want.

Here’s a breakdown of the average superannuation balance of Aussies aged 66, and what you actually need at this age to retire. 

How does yours compare?

What is the average superannuation balance at age 66 in Australia?

There isn’t an exact figure for the average superannuation balance for men at age 66, but the Association of Superannuation Funds of Australia (ASFA) provides a helpful estimate.

The average 65 to 69-year-old Australian male in FY27 has an average superannuation balance of $448,518.

Unfortunately, women the same age have a lot less, mostly because women tend to take extended periods out of the workforce. There are periods of time, sometimes spanning several consecutive years, where women earn lower compulsory employer superannuation or none at all.

The average 65 to 69-year-old Australian female has an average superannuation balance of around $392,274 in FY27. 

How does your super balance stack up with men and women the same age as you?

If your superannuation balance is on track with the rest of the population, that’s great news. But unfortunately, it doesn’t actually mean you have enough to live the retirement lifestyle you want. 

How much superannuation do I need to retire at age 66?

According to the latest ASFA Retirement Standard, the benchmark for a comfortable retirement is around $55,923 per year for single Australians and closer to $78,566 per year for couples.

To support that level of spending, ASFA estimates you’ll need a super balance of roughly $630,000 as a single and $730,000 as a couple by the age of 67. 

The figures also assume you own your home outright and that you’re receiving the age pension.

Am I on track?

In order to reach that number, ASFA calculates that at the age of 66, for a comfortable retirement, Australians should have a current superannuation balance close to $604,500.

That’s significantly higher than the average balances for Australians aged 65 to 69.

Why is the average Australian so far behind?

Unfortunately, there are several reasons.

In some exceptional cases, it’s possible to access your superannuation early. For example, to pay certain expenses on compassionate grounds, as well as terminal illness, incapacity, and severe financial hardship. 

There was an uptick in the number of Australians who applied for an early release during the COVID-19 pandemic, driven by soaring cost-of-living and widespread income loss.

The problem is that accessing your superannuation early severely affects long-term compounding growth and lowers balances in the long term. 

At the same time, ongoing economic volatility and consistently high cost of living also mean that individuals have severely curbed the amount of voluntary contributions going into super fund accounts. 

High fees and poor performance also eat into retirement savings. Meanwhile, sticking with an underperforming fund or default option is a mistake that can cost your super balance over time.

The post The average superannuation balance at age 66 in Australia, versus what you actually need to retire appeared first on The Motley Fool Australia.

More reading

• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• IperionX validates GenX™ titanium production: Major efficiency gains
• Vicinity Centres: 2026 Capability Showcase highlights Chadstone and Chatswood Chase
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?
• Do this before the bubble bursts

Motley Fool contributor Samantha Menzies 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.

Cochlear vs Pro Medicus shares: Which ASX healthcare giant deserves a spot in your portfolio?

If you’re sizing up Cochlear Ltd (ASX: COH) against Pro Medicus Ltd (ASX: PME), you’re comparing two homegrown titans of Australian healthcare tech. Both companies are recognised leaders globally, but their share prices have taken a hit from recent peaks. So, which one stands out for long-term investors today?

The case for Cochlear

Cochlear is the world’s top cochlear implant maker, holding about half of the global market. Founded in 1983, it commercialised technology pioneered by Dr Graeme Clark, and now supplies devices that are the standard of care for children with severe hearing loss and an increasing number of seniors. Most of its revenue comes from overseas, especially the US and Europe.

• A few notable numbers jump out for Cochlear:
• It has a $8.92 billion market cap, reflecting strong global scale.
• Recently raised dividends: its payout climbed from $1.75 per share (final, 2023) to $2.15 (final, 2025 and 2026), with 85% franking.
• The company offers a solid 3.15% dividend yield, much higher than many healthcare peers.

The case for Pro Medicus

Pro Medicus specialises in cutting-edge medical imaging and radiology IT for hospitals and medical clinics worldwide. Its product suite includes systems for image archiving, reporting, appointments, billing, and workflow optimisation, with a strong presence in US hospital networks.

• Key highlights for Pro Medicus:
• It’s a heavyweight, with a $17.28 billion market cap—nearly double Cochlear’s.
• Its dividend yield is much more modest at 0.42%, but fully franked at 100%.
• Pro Medicus’ dividends are growing fast: from 12 cents per share (final, 2022) up to 37 cents (final, 2026), suggesting growing profits and cash flow for shareholders.

Valuation comparison

Here’s how these two measure up on the basics:

Metric	Cochlear (COH)	Pro Medicus (PME)
Market Cap	$8.92b	$17.28b
P/E Ratio	60.59	65.22
Dividend Yield	3.15%	0.42%
EPS	$2.252	$2.536
Franking	85%	100%

Cochlear trades at a slightly lower P/E but offers a much higher dividend yield, while Pro Medicus is bigger, with marginally higher earnings per share and full franking.

Recent share price performance

Based on prices as of 15 September 2026 (not live data), both have seen sharp slides from their recent highs, but the scale differs:

• Cochlear’s year-to-date return is a sobering -46.83%.
• Pro Medicus is less bruised, down -24.80% for the year.

Looking at the last two weeks, both stocks have been volatile. Cochlear slipped from around $140–$145 to $136.43, while Pro Medicus dropped from above $190 to $165.45 over the same period. Neither is escaping the market’s negativity, but the percentage drawdown has been much steeper for Cochlear.

Which is the better buy?

If I had to choose, my pick would be Pro Medicus. Here’s why: While both shares look expensive by P/E and have fallen hard from their peaks, Pro Medicus has weathered the storm better and shows faster recent growth in earnings and dividends. Its fully franked dividends are on a rapid upward trajectory, and the company’s bigger global footprint (especially in the US hospital market) suggests more room for upside if conditions improve.

Cochlear is terrific for yield hunters, with a higher dividend yield and solid franking, but its aggressive price fall and slightly lower growth rate leave me wanting more momentum. Both businesses are quality names, and neither is cheap, but given how Pro Medicus has held up better and seems to have more earnings power right now, I’d lean toward Pro Medicus for future upside—even if it means accepting a lower current yield.

The post Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares tipped by experts to jump 30% to 62%
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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Laura Stewart 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 Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Cochlear and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

“Is this an AI bubble?”

It’s a question being asked more frequently as share prices rise, optimism grows and investors become increasingly excited about artificial intelligence.

And fair enough, too.

We’ve seen this movie before. A genuinely transformative technology appears. Investors imagine the possibilities. Capital pours in. Share prices rise. And, eventually, enthusiasm gets ahead of reality.

The dot-com boom is the obvious comparison. The internet really did change the world, just as its champions predicted. But that didn’t stop investors losing fortunes when the bubble burst.

So, is history repeating?

Maybe.

But maybe not.

There’s no rule that says rapidly rising share prices must fall. Nor that excitement must end in disaster. Sometimes businesses grow into apparently expensive valuations. Sometimes the optimists are right.

And AI is already producing real products, real revenue and real productivity gains. Some of today’s leading companies are immensely profitable, rather than hopeful start-ups with little more than a web address and a breathless business plan.

That doesn’t mean their shares are cheap. It doesn’t mean every AI-related investment will succeed. And it certainly doesn’t mean prices can’t fall.

It simply means we should resist the temptation to confidently predict what happens next.

(It’s possible AI continues its rise, and the losers are those businesses most exposed to that disruption!)

A better approach?

Prepare, don’t predict.

Use today’s enthusiasm – and the possibility that it ends – as a prompt to check what you actually own.

Not just AI, though.

Everything.

Because tough times tend to reveal what the good times hide.

When share prices are climbing, almost every investment seems smart. The ‘rising tide lifts all boats’.

(That phrase apparently goes back at least to the 1600s – a reminder that while technology advances, there really is nothing new under the sun!)

It’s easy to get caught up in the story… and to convince ourselves that it’s skill, not luck.

It’s only when conditions change that the differences become obvious.

Consider retail.

A good retailer can have a tough year. We might reduce our spending and costs might rise. 

As a result, sales can slow and profits can fall.

But short-term troubles don’t necessarily make it a bad business.

The important questions are whether customers still value what it sells, whether it is taking or losing market share, whether its stores remain productive and whether management can sensibly navigate the downturn.

Because a healthy retailer can emerge from a difficult period in a stronger competitive position, particularly if weaker rivals close stores, cut investment or… disappear altogether.

A structurally challenged retailer is different, of course. Customers may not want its products, or might prefer shopping at the competition. Margins might be permanently shrinking. A cyclical recovery won’t necessarily rescue a business whose competitive position has deteriorated.

Here’s the thing: the share price might fall in both cases. But they’re not the same business.

Your job is to know which one you own.

Then there’s debt.

Borrowing can make a good business look even better when times are favourable. It can fund expansion, lift margins and improve returns on equity. Things that are otherwise hallmarks of a successful business.

But banks don’t care whether the economy is strong or weak. The interest bill still needs to be paid. Loans still need to be refinanced.

And lenders tend to be least generous when borrowers need them most.

That’s when the difference between a strong balance sheet and a fragile one becomes painfully clear.

A financially strong company can keep investing through a downturn. It might acquire a competitor, open new locations or buy back shares at attractive prices.

A heavily indebted company usually doesn’t have those choices. It can be forced to cut investment, sell assets, sack staff, or raise capital at exactly the wrong time.

We learned that during COVID.

The time to think about these things is before things get messy.

What things? Ask yourself some of these questions:

Does the company generate positive cash flow?

Does it earn attractive returns on capital?

Does it have a strong balance sheet?

Do customers genuinely value its products?

Does it have an advantage competitors will struggle to copy or beat?

And does it have room to grow?

Then consider what you’re paying. A wonderful business can still be a poor investment if its share price assumes everything will go perfectly.

The thing is, those fundamentals don’t seem to matter when prices are rising. They get ignored when everyone is focused on growth, and optimism, and when ‘what can go wrong?’ is a rhetorical question, not a real one.

And then… things go wrong.

The economy stutters. Rates go up. Investors get nervous. Prices fall.

It can be hard to remember that when the highly leveraged, high risk companies are flying high. 

It can be tempting to abandon disciplined investing and join the party.

Until the music stops.

And when it does, it’ll be too late to realise you own a collection of exciting stories, ephemeral profits, overleveraged balance sheets, and ‘hopes and dreams’.

You’ll realise you should have prioritised quality and value over high-risk and high hopes.

No-one can know what will happen, when. 

No-one.

And when you really understand that, you stop playing Russian roulette.

You make sure you’re prepared.

The time to make sure? Before the bad times come.

When will that be? No-one knows.

That’s why you should be prepared.

Fool on!

The post Do this before the bubble bursts appeared first on The Motley Fool Australia.

More reading

• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• IperionX validates GenX™ titanium production: Major efficiency gains
• Vicinity Centres: 2026 Capability Showcase highlights Chadstone and Chatswood Chase
• The average superannuation balance at age 66 in Australia, versus what you actually need to retire
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?

Motley Fool contributor Scott Phillips 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been on fire this week.

Despite the market weakness, the radiopharmaceuticals company’s shares have rocketed around 14% higher.

The catalyst for this has been news that the company’s Pixclara product has been granted US FDA approval.

So, should you be buying Telix shares as well because of this big news? Let’s find out what Bell Potter thinks.

What is the broker saying?

Bell Potter was pleased with the Pixclara news, highlighting that Telix is entering a new era with revenues set to jump in FY 2027. It said:

The FDA’s approval of the new drug application for Pixclara (floretyrosine F18 aka FET-PET) heralds a new era for TLX, expanding its revenue base beyond the PSMA imaging. In fact, TLX now has multiple revenue streams inclusive of it is isotope manufacturing business, with FY27 revenues now likely to expand well beyond the US$1bn mark .

Speaking about the product, the broker adds:

The work now commences to execute on the commercialisation strategy commencing with the establishment of reimbursement and the appointment of radiopharmaceutical networks for distribution.

We expect strong demand from the outset as FET-PET is the standard of care for the management of gliomas outside of the US. The drug has been available to a limited extent under the expanded access program in the US and there is a highly concentrated user group amongst radiation oncologists. The premium reimbursement relative to reimbursement on most other nuclear medicine exams will help prioritise FET-PET for machine time.

Should you invest?

According to the note, in response to the news, Bell Potter upgraded Telix shares to a buy rating with a $19.00 price target.

Based on its current share price of $17.75, this implies potential upside of 7% for investors.

Commenting on its investment thesis, it said:

First revenues expected 2Q27. Revenues will be modest in the initial instance and not material to overall revenue growth in the short term. Despite this, the Pixclara approval is an important catalyst, particularly if the label expands to the larger brain metastases indication. We had previously included revenues from Pixclara in forecasts, hence no changes to earnings required. We upgrade our recommendation from Hold to Buy, PT $19.00.

Overal, the broker appears to see potential for Telix shares to keep climbing in the near term. Though, the easy gains appear to be behind them.

The post Are Telix shares a buy after its big US FDA news? appeared first on The Motley Fool Australia.

More reading

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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 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.

The James Hardie Industries PLC (ASX: JHX) share price is in focus after the company hosted its 2026 Investor Day, where it reaffirmed guidance and raised its free cash flow target for FY27. Management highlighted the rapid progress on cost synergies and provided a strategic growth outlook.

What did James Hardie report?

• Targets annual organic growth of 4% to 7% above market, with compounding earnings
• Expects to deliver US$125 million in cost synergies one year ahead of schedule
• US$500 million in revenue synergies from the AZEK integration remain on track
• Raised FY27 free cash flow target; reaffirmed FY27 net sales and Adjusted EBITDA guidance (excluding Europe)
• Commits to capital allocation priorities, aiming to reduce net leverage to below 2.0x by Q2 FY28

What else do investors need to know?

James Hardie is accelerating the integration with AZEK, achieving faster-than-expected cost synergy targets. The company expects to complete the US$125 million cost synergy target a full year ahead of schedule, while revenue synergies are progressing as planned.

The company is pressing ahead with the divestment of its European operations for about US$980 million. Proceeds are earmarked to pay down debt and fund share buybacks, which should support balance sheet strength and shareholder returns.

What did James Hardie management say?

Chief Executive Officer Aaron Erter said:

We are also introducing our financial growth algorithm that outlines the building blocks to deliver 4% to 7% growth above market. This will be driven by a $23 billion material conversion opportunity, self-help growth initiatives, and $500 million in anticipated revenue synergies – all without underwriting a housing recovery.

What’s next for James Hardie?

James Hardie reaffirmed its FY27 sales and Adjusted EBITDA targets and lifted its free cash flow outlook, signalling confidence despite broader macroeconomic challenges. The company is prioritising organic growth, disciplined capital allocation—including debt reduction—and further bolt-on acquisitions.

Management’s focus on compounding earnings and a robust North American growth strategy puts James Hardie on a path to deliver above-market returns, supported by structural drivers in the repair, remodel and new-build markets.

James Hardie share price snapshot

Over the past 12 months, James Hardie shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post James Hardie lifts guidance and details long-term growth at 2026 Investor Day appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Passive income is one key reason to invest in ASX shares.

Once you have built a large enough portfolio, money can arrive in your account without having to work another hour for it.

That could eventually mean extra holidays, fewer days at work, help with household bills, or simply more freedom.

Yet I think many people underestimate what they could build by starting with relatively modest amounts.

Let’s look at what could happen with $500 a month.

Getting started

Investing $500 does not feel life-changing in itself.

Even after a year, you would have contributed just $6,000.

But the real value of those early investments is the amount of time they have to compound.

If $500 were invested every month and the portfolio generated an average return of 10% per annum, the balance could grow to approximately $100,000 after 10 years.

After 15 years, it could be worth around $200,000.

And after 20 years, the portfolio could reach approximately $360,000.

These figures assume returns are reinvested and are only illustrations. A 10% annual return is possible to achieve, but certainly not guaranteed.

Overall, I think this demonstrates how seemingly small decisions made today can have major consequences decades later.

I wouldn’t chase dividends straight away

If I were starting this portfolio from scratch, income would not be my main priority.

I would want to grow the capital first. That could mean investing in high-quality ASX growth shares such as Xero Ltd (ASX: XRO), Goodman Group (ASX: GMG), and ResMed Inc (ASX: RMD).

Blue chips such as Wesfarmers Ltd (ASX: WES) could also have a role.

And ASX exchange traded funds (ETFs) such as the iShares S&P 500 ETF (ASX: IVV) or Vanguard MSCI Index International Shares ETF (ASX: VGS) could provide exposure to hundreds of global companies.

The aim during these years would be simple. It would be to keep investing, reinvest anything the portfolio pays out, and give compounding as much time as possible.

Turning growth into income

To generate $26,000 of passive income, I would target a portfolio valued at approximately $520,000 and a 5% dividend yield across it.

At our assumed 10% return, investing $500 every month could take the portfolio to this level in roughly 23 years.

Once there, this is when I would start thinking much more seriously about income.

Some of the growth investments could remain, while more money could gradually move toward dividend shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), HomeCo Daily Needs REIT (ASX: HDN), and Charter Hall Long WALE REIT (ASX: CLW).

A $520,000 portfolio yielding 5% would then produce $26,000 a year.

And all of it could have started with the decision to put aside $500 each month.

The post How to make $26,000 of passive income from ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.