Author: openjargon

How rich are the Guzman Y Gomez founders following the company’s IPO?
The big piece of ASX news last week (and arguably in 2024 to date) was the successful initial public offering (IPO) of Guzman y Gomez Ltd (ASX: GYG). Guzman stock floated on the ASX last Thursday, hitting the ASX boards at $22 a share.

Well, that $22 price didn’t last long. Within minutes of the company beginning its ASX listing, Guzman shares had topped $30 each, reaching a high of $30.99 on Thursday afternoon.

That euphoria has since died off a little, but at the time of writing, Guzan shares are still trading at $28.78 each, a good 30.8% or so above the company’s IPO price.

It goes without saying that Guzman y Gomez shares’ ASX debut has been a roaring success for the company’s founder, senior management, and early investors.

But exactly how successful has it been?

How rich are Guzman y Gomez’s founders post-IPO?

Well, last week, my Fool colleague Mitchell went through Guzman’s largest shareholders after the company went public.

Its two largest shareholders are early investors TDM Growth Partners and Barrenjoey Capital. Other significant investors include Aware Super, Gaetano Russo, former board member Stephen Jermyn, and Richard and Kate Bell.

But Guzman’s co-founders Steven Marks (also currently Guzman’s co-CEO) and Robert Hazan (retired) both remain significant shareholders of the company. Marks currently owns 7,507,250 shares, or 7.41% of the company, through the Marks family’s Evan Jason Pty Ltd. He also owns another 1,212,000 shares, or 1.2%, in his own name.

Meanwhile, Hazan owns 4,527,500 shares through his family company RBH Pty Ltd. That’s worth 4.47% of Guzman’s outstanding shares.

When Guzman IPOed at $22 a share, this would have valued Marks’ Evan Jason stake in the company at approximately $165.16 million, plus his own shares at $26.66 million. Hazan’s stake would have been worth $99.61 million.

But at today’s pricing following the successful IPO, Marks would now have a stake worth a whopping $250.94 million (combined). Not a bad return for a few days.

Hazan, in turn, would be sitting on a fortune valued at roughly $130.3 million right now.

Of course, most of these founders’ shareholdings are now under a voluntary escrow period. 25% of the co-founders’ shares will remain escrowed until Guzman releases its earnings results for the first half of the 2025 financial year, provided the shares are trading at least 20% above the company’s IPO price of $22.

The remaining shares will be escrowed until the company releases its results for the full 2025 financial year, which will end on 30 June 2025.

So Marks and Hazan can’t exactly take advantage of the company’s explosive IPO results right now. But even so, both will undoubtedly be walking with a spring in their steps today.

The post How rich are the Guzman Y Gomez founders following the company’s IPO? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Guzman Y Gomez right now?

Before you buy Guzman Y Gomez 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 Guzman Y Gomez 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 24 June 2024

More reading
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.
24 June 2024
Barcelona plans to ban short-term rentals as cities rethink the Airbnb effect
The Basílica de la Sagrada Família is one of Barcelona's most famous sites.

Alexandr Spatari/Getty Images
- Barcelona plans to end short-term rentals by 2029 to address the housing crisis.
- Rents in Barcelona rose 36% from 2018 to 2022 amid a broader Spanish rental crisis.
- Opponents argue the ban will not significantly impact housing availability or rental prices.
Barcelona plans to end short-term rentals after complaints that tourism has priced locals out of the housing market.

In a blow to platforms like Airbnb, the Spanish city will stop issuing new licenses and will not renew existing ones, Barcelona's mayor, Jaume Collboni said at a press conference on Friday. By 2029, no homes will be allowed to operate as short-term tourist accommodations.

"The city cannot allow such a large number of flats to be used for tourist activity at a time of difficulty of access to housing and when the negative effects of tourist overcrowding are obvious," Collboni said.

Like other Spanish cities, Barcelona requires properties to have a tourist license before they can be listed as rentals. There are currently about 10,000 houses registered as tourist rentals.

The move is the latest by Spanish authorities to ease the housing crisis and reduce the cost of renting. Rents in Barcelona spiked 36% between 2018 and 2022, while those in Spanish capital Madrid were up 16%, according to an EY property report.

Barcelona became a short-term rental hotspot as tourists flocked to the city: The number of tourists increased from 7.4 million in 2012 to 15.6 million last year. Government officials have sparred with Airbnb and similar platforms over the years, imposing fines and various kinds of regulation that stopped well short of the new plan to not renew licenses.

Airbnb did not immediately respond to Business Insider's request for comment, sent outside standard business hours.

In April 2023, the Spanish government passed a historic housing law to address the issue, which included caps on rent increases, price limits in special zones, and an end to surprise evictions. Earlier this year, the government also scrapped "Golden Visas" to non-EU nationals, saying the visa program was adding to housing supply pressures.

But critics say that the Barcelona ban will do little to change the rental climate.

Opposition politician Damià Calvet said that not all 10,000 homes will go back on the market.

"Pretending that all 10,000 will have a residential use is not realistic," he told local media. Calvet said not all homes with licenses are actually rented out to tourists — many owners keep the license just to add value to the property in case they want to sell down the line.

"Tourist apartments represent just 0.77% of Barcelona's housing stock," Enrique Alcantara, president of the Barcelona Tourist Apartments Association, told media after the announcement. "All it will do is increase the number of illegal tourist rentals."

Global short-term rental restrictions

Other cities are similarly eyeing short-term rental restrictions to manage skyrocketing housing costs in what's been deemed the "Airbnb effect."

In Irvine, California, a ban on short-term stays in 2018 brought the cost of long-term rentals down 3%, or an average decrease of $114 a month, according to a study published in Real Estate Economics. Late last year, New York City implemented a similar move.

Cities including Vancouver, Tokyo, London, Amsterdam, and Paris have all placed restrictions on the short-term rental market.

Some Southeast Asian countries have banned short-term rentals completely.

In Singapore, it is illegal to rent any residential property for less than three months, while Thailand, like Irvine, forbids rentals for less than thirty days.

Read the original article on Business Insider
24 June 2024
China is greenlighting possible death penalties for ‘diehard’ supporters of Taiwan gaining independence
Chinese police officers wear protective masks at Beijing Station before the annual Spring Festival on January 22, 2020 in Beijing.

Kevin Frayer/Getty Images
- China officially says that supporting Taiwan's independence can be a crime.
- Punishments include prison sentences of more than 10 years and even the death penalty.
- It's the first time the country has so clearly outlined a set of legal guidelines aimed at Taiwan.
China on Friday outlined a list of behaviors that it defines as criminal acts related to supporting Taiwan's independence, saying punishments may go as far as the death penalty.

Top legal bodies in the country — including its Supreme Court, national prosecutors, and three government ministries — jointly issued a statement telling courts and prosecutors at all levels in China to "severely punish 'Taiwan independence' diehards."

These are China's first official guidelines designating support for Taiwan's independence as a crime, underscoring how Beijing is hardening its stance toward the self-governed island.

Taiwan declaring independence has long been a red line set by Beijing.

Broad definitions of the crimes include promoting the idea of "two Chinas" or "one China, one Taiwan" and creating an organization that tries to attain Taiwan's independence. Relying on "foreign forces" and institutions to achieve independence was also listed.

Notably, the list criminalizes public attempts to undermine the concept that Taiwan is part of China in the "fields of education, culture, history, news media, etc."

The punishments include prison sentences or detention of up to 10 years, with that limit removed for those leading organizations that try to help Taiwan secede.

Crimes deemed "particularly heinous" may carry the death penalty, the authorities added.

The new guidelines come just a month after Taiwan's new president, Lai Ching-te, assumed office on May 20.

Lai's political faction, the Democratic Progressive Party, has focused heavily on resisting China, and his securing of power this year has prompted a building wave of aggressive posturing from Beijing.

When Lai took office in May, the Chinese military conducted live-fire exercises around Taiwan. China has also continually issued public statements and scenario videos hinting at how it may attack the island.

China has no legal jurisdiction in Taiwan, but recommendations like the one issued on Friday are likely to put a further dampener on Taiwanese business.

Taipei has already been dropping support for long-standing tourism programs to China, citing worries that it may not be safe for its people to travel to the mainland.

And Taiwanese investment in China, which was on the rise in the late 2000s, has plummeted to its lowest levels since 2001.

In 2023, new spending in China from Taiwan dropped nearly 40% to $3.06 billion despite the island reporting investment highs of $26.6 billion that year.

Meanwhile, its companies rapidly expanded investment in the US from $1.1 billion in 2022 to $9.7 billion the next year.

Read the original article on Business Insider
24 June 2024
Leading brokers name 3 ASX shares to buy today
With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ResMed Inc. (ASX: RMD)

According to a note out of Citi, its analysts have retained their buy rating and $36.00 price target on this sleep disorder treatment company’s shares. This follows the release of trial results from Eli Lilly And Co (NYSE: LLY) in relation to tirzepatide (Mounjaro) as a treatment of moderate-to-severe obstructive sleep apnoea (OSA) in adults with obesity. While Citi acknowledges that there is a risk that a portion of patients with mild OSA symptoms might drop CPAP devices over time because of the weight loss drug, it doesn’t appear overly concerned. Particularly given that stronger results were achieved from a combination of Mounjaro and CPAP devices. The ResMed share price is trading at $27.83 today.

South32 Ltd (ASX: S32)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this mining giant’s shares with an improved price target of $4.50. This follows the broker’s review of commodity prices. Macquarie remains very positive on a number of commodities that South32 produces such as aluminium, met coal, and nickel. In light of this, it has boosted its earnings estimates for the coming years and has named South32 as its top pick among the large cap miners right now. The South32 share price is fetching $3.63 on Monday afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Morgans have retained their add rating on this wine giant’s shares with an improved price target of $15.03. The broker was pleased with a recent update on its Penfolds business and notes that management has reaffirmed its earnings guidance for FY 2024. It was even more pleased to see that its earnings growth is likely to accelerate next year thanks to US luxury availability, the acquisition of DAOU Vineyards, and the recent removal of Chinese wine tariffs. Overall, the broker sees potential for Treasury Wines to deliver double-digit earnings growth over the medium term if management can execute on its plans. The Treasury Wine share price is trading at $12.27 at the time of writing.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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

Before you buy Resmed Inc. shares, consider this:

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

The online investing service 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 24 June 2024

More reading
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in ResMed and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
24 June 2024
Buying ASX 200 shares? Here’s why you’ll like NAB’s inflation forecast
Whether you’re actively buying S&P/ASX 200 IndexÂ (ASX: XJO) shares or simply considering it, you’ll probably like the latest inflation forecast from National Australia Bank Ltd (ASX: NAB).

On Wednesday, at 11:30am AEST, the Australian Bureau of Statistics (ABS) will release the monthly consumer price index (CPI) data covering the month of May.

Last month the ABS reported that, over the year to April, the monthly headline CPI indicator had increased by 3.6%. If you take out volatile items and holiday travel, underlying inflation increased by 4.1%, in line with the inflation data in December.

Those sticky inflation figures led to the Reserve Bank of Australia holding the official interest rate at the current 4.35% at its meeting last Tuesday.

In its battle to tame soaring inflation, which reached almost 8% at the end of 2022, the RBA has hiked interest rates 13 times since May 2022. It’s hard to believe today, but back then the official Aussie cash rate stood at a rock bottom 0.10% following years of ‘stubbornly absent’ inflation.

Should the inflation data surprise to the upside this Wednesday, ASX 200 shares could come under pressure amid concerns that the RBA’s next move in August may be to hike rates once more.

On that front, however, NAB has a fairly positive forecast.

NAB’s inflation forecast could see ASX 200 shares rally

Indeed, NAB’s inflation forecast could see ASX shares rally into the end of the week.

According to NAB (courtesy of The Australian Financial Review), “The May CPI indicator is not the full CPI and should be looked at with a view to implications for the Q2 CPI on July 31, ahead of the RBA’s August meeting and forecast update.”

With that caveat in mind, NAB said:

This month, being the second month of the quarter, contains better coverage of a range of services categories that will help guide the RBA assessment of domestic inflation pressure and firm up Q2 forecasts.

We pencil in 3.6 per cent year-over-year, versus consensus for 3.8, from 3.6 per cent in April. The below consensus pick looks to be due to a large expected fall in volatile travel prices in the month. Prices fall seasonally in May, but the magnitude of the measured decline is highly uncertain.

For the ex-volatiles and travel number, we pencil in 3.9 per cent from 4.1 per cent, though the risk sits with a 4.0 per cent.

While some ASX shares have come under pressure amid hot-running inflation and rising rates, that’s not true for ASX 200 bank stocks.

NAB shares, for example, are up a whopping 42% over the past 12 months.

The post Buying ASX 200 shares? Here’s why you’ll like NAB’s inflation forecast appeared first on The Motley Fool Australia.

Should you invest $1,000 in National Australia Bank Limited right now?

Before you buy National Australia Bank 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 National Australia Bank 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 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.
24 June 2024
Elon Musk starts new beef with Lucasfilm’s Kathleen Kennedy, says the ‘Star Wars’ chief is ‘more deadly than the Death Star’
Elon Musk (left) and Lucasfilm President Kathleen Kennedy (right).

Richard Bord/WireImage via Getty Images; Todd Williamson via Getty Images
- It looks like Elon Musk isn't a fan of what Lucasfilm chief Kathleen Kennedy has done with "Star Wars."
- Kennedy has been criticized by fans for her focus on progressive themes and female protagonists.
- Musk said on Saturday that he thinks Kennedy is "super bigoted against men."
Elon Musk doesn't like what Lucasfilm President Kathleen Kennedy has done with the Star Wars franchise.

"She's more deadly than the Death Star!" Musk wrote on his social media platform X on Friday in response to a meme that called Kennedy a "franchise killer."

The Academy Award-winning film producer was appointed president of Lucasfilm after the company was acquired by Disney in 2012. But Kennedy's leadership of Lucasfilm has drawn a mixed reception from Star Wars fans.

While Kennedy was initially able to land box office hits like 2015's "Star Wars: The Force Awakens" and 2016's "Rogue One," Lucasfilm's subsequent entries into the sci-fi franchise have been lacking.

In 2018, Star Wars saw a big box office bomb in "Solo: A Star Wars Story," per Deadline.

The franchise's foray into streaming also yielded mixed results, with shows like "The Book of Boba Fett" doing poorly with audiences, according to Rotten Tomatoes.

She’s more deadly than the Death Star!

— Elon Musk (@elonmusk) June 21, 2024

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

And it seems that Kennedy's focus on progressive themes and female protagonists in Star Wars projects has been a huge bugbear for Musk.

"Kathleen Kennedy is super bigoted against men," he wrote in a subsequent X post on Saturday, referring to an interview that Kennedy gave to The New York Times last month.

In the interview, Kennedy defended Leslye Headland, the director and writer of the latest Star Wars television series "The Acolyte," after fans slammed Headland and called her "woke."

"Operating within these giant franchises now, with social media and the level of expectation, it's terrifying," Kennedy told The Times.

"I think a lot of the women who step into 'Star Wars' struggle with this a bit more. Because of the fan base being so male-dominated, they sometimes get attacked in ways that can be quite personal," she added.

Kathleen Kennedy is super bigoted against men

— Elon Musk (@elonmusk) June 22, 2024

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

To be sure, Kathleen's stewardship of Star Wars isn't the only reason behind the franchise's perceived decline among fans.

In 2019, then-Disney CEO Bob Iger said the studio might have released too many Star Wars projects after acquiring Lucasfilm. Iger stepped down as CEO in 2020 before returning to the job in 2022.

"I just think that we might've put a little bit too much in the marketplace too fast," Iger told The New York Times in a report published in September 2019.

This criticism of Kennedy isn't the first time Musk has expressed his displeasure at what he brands "woke" ideology, and people who champion diversity, equity, and inclusion (DEI) efforts.

"DEI is just another word for racism. Shame on anyone who uses it," Musk said in an X post in January.

Kennedy also wasn't the first executive to draw Musk's ire regarding progressive corporate initiatives. Musk tore into fellow billionaire Mark Cuban after the latter voiced his support for corporate DEI initiatives earlier this year.

"Mark Cuban is desperately trying to signal his 'virtue,' but his hypocrisy convinces no one," Musk said in an X post published in January.

Representatives for Musk and Kennedy did not immediately respond to requests for comment from BI sent outside regular business hours.

Read the original article on Business Insider
24 June 2024
2 ASX 200 compounding machines to buy and hold forever
I believe that buy and hold investing is one of the best ways to grow your wealth.

This is because it allows you to benefit from the power of compounding, which is what happens when you earn returns on top of returns.

But which ASX 200 stocks could be great long term options and compounding machines? Two to consider according to analysts are named below. They are as follows:

NextDC Ltd (ASX: NXT)

Morgans thinks this data centre operator could be a great long-term option for investors.

In fact, the broker believes that the ASX 200 stock could more than double in value in the coming years thanks to the growing demand for data centre capacity and its ongoing expansion. It said:

NXT’s shares have rallied significantly in the last decade and months as investors gained confidence in growing demand and management’s execution. The demand wave from business digitisation and cloud adoption will only get bigger as the third wave (AI) starts rolling into data centres. We think NXT is especially well placed to succeed given its partner ecosystem (enterprise users of cloud are also AI users). If you believe that these dynamics benefit DCs, then acknowledge that NXT has sold just 15% of its planned capacity, what could 100% sold look like? In this note we simplify and unpack the key requirements for success and ascertain that if NXT can fund and fill the planned pipeline, then it could be a $40+ stock.

For now, the broker has an add rating and $19.00 price target on NextDC’s shares.

Xero LtdÂ (ASX: XRO)

Another quality buy and hold option for investors to consider buying is Xero. It is a cloud accounting platform provider with 4.2 million subscribers globally.

Goldman Sachs thinks that the ASX 200 stock would be a great long term option for investors. This is due to its significant market opportunity, which the broker has previously described as giving it a multi-decade growth runway.

In addition, with the company recently pivoting to profitable growth, it sees now as the time to snap up its shares. It explains:

Xero is a Global Cloud Accounting SaaS player, with existing focuses in ANZ, UK, North American and SE Asian markets. We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Given the company’s pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ â the stock is Buy rated.

Goldman currently has a buy rating and $164.00 price target on its shares.

The post 2 ASX 200 compounding machines to buy and hold forever appeared first on The Motley Fool Australia.

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

Before you buy Nextdc 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 Nextdc 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 positions in Nextdc and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
24 June 2024
Why Cettire, Metcash, ResMed, and Star Entertainment shares are sinking today
In afternoon trade, theÂ S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.7% to 7,742.6 points.

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

Cettire Ltd (ASX: CTT)

The Cettire share price is down a massive 50% to $1.13. Investors have been hitting the sell button today after online luxury products retailer warned that “the operating environment within global online luxury has become more challenging” with heightened levels of discounting. In response to these challenging conditions, the company “has selectively participated in the promotional activity, leading to an increase in marketing costs relative to sales and a decline in delivered margin percentage.” Investors may believe that this marks an end of Cettire’s explosive sales and earnings growth.

Metcash Ltd (ASX: MTS)

The Metcash share price is down 3% to $3.66. This follows the release of the wholesale distributor’s FY 2024 results this morning. Metcash reported a 0.7% increase in revenue to $15.9 billion but an 8.2% decline in underlying profit after tax to $282.3 million. This reflects earnings growth in Food and Liquor being offset by lower earnings in Hardware and increased corporate costs. In light of this, the Metcash board cut its fully franked final dividend by approximately 23% to 8.5 cents per share.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 12% to $28.04. This has been driven by concerns over the efficacy of weight loss drugs on treating sleep apnoea. Eli Lilly And Co (NYSE: LLY) released trial results for tirzepatide, sold under the brand names Mounjaro and Zepbound, that revealed that all primary and key secondary endpoints were met in adults with obesity. The trials demonstrated a mean reduction of up to 62.8% on the apnoea-hypopnea index (AHI), or about 30 fewer events restricting or blocking a person’s airflow per hour of sleep, compared to placebo.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down almost 7% to 45.7 cents. This follows the release of a guidance update from the casino and resorts operator this morning. Due to the challenging economic environment and cost of living pressures, Star Entertainment’s performance has weakened in the fourth quarter. As a result, in FY 2024 management expects group revenue to be between $1,675 million and $1,685 million and normalised group EBITDA to be in the range of $165 million to $180 million. The latter represents a significant decline on FY 2023’s normalised EBITDA of $317 million.

The post Why Cettire, Metcash, ResMed, and Star Entertainment shares are sinking today appeared first on The Motley Fool Australia.

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

Before you buy Cettire 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 Cettire 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 positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cettire and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
24 June 2024
How the ‘nuclear renaissance’ could send ASX uranium stocks like Paladin through the roof
Despite the past month’s sell-down, spurred by a retrace in uranium prices, ASX uranium stocks have broadly delivered some benchmark smashing longer-term returns.

Over the past 12 months the All Ordinaries IndexÂ (ASX: XAO) has gained a healthy 10.0%.

Here’s how these leading ASX uranium stocks have performed over that same time:
- Paladin Energy Ltd (ASX: PDN)* shares are down 5.7%
- Bannerman Energy Ltd (ASX: BMN) shares are up 121.4%
- Deep Yellow Limited (ASX: DYL) shares are up 94.0%
- Boss Energy Ltd (ASX: BOE) shares are up 29.5%
- Alligator Energy Ltd (ASX: AGE) shares are up 27.5%
(*Paladin shares entered a trading halt today pending an announcement. Rumour has it this could be related to a possible capital raising to fund a new uranium acquisition.)

And those smashing one-year gains could be just the tip of the iceberg amid what pundits are labelling the new global nuclear renaissance.

ASX uranium stocks could help power the world

Amid a global charge to build new nuclear power plants for carbon free baseload power, the World Nuclear Association forecasts uranium demand growth will outpace global supply growth through to 2040.

In another bullish signal for ASX uranium stocks, Russian uranium is now off the menu for the United States as part of the sanctions for the nation’s invasion of Ukraine. Other nations are also looking at banning Russia’s uranium exports.

And the US is among the 27 nations recently declaring its intention ramp up nuclear energy.

According to US Energy Secretary Jennifer Granholm:

We are entering a new era of nuclear energy, our single largest source of carbon-free electricity. We plan to invest up to US$900 million to accelerate nuclear deployment, add more small modular reactors, and reach more Americans with clean energy.

The US has said it will source its nuclear fuel both domestically and from its allies.

With Australia a top US ally and sitting on the world’s largest proven economic uranium reserves, ASX uranium stocks could have some big opportunities ahead.

Last year, US congressman Neal Dunn questioned the Australian government’s opposition to uranium.

Dunn said (quoted by The Australian Financial Review):

We talk about, ‘Why isn’t Australia with us on this?’ There are a lot of commercial opportunities. You have got the uranium ore, you have got the skills, all you lack is the will.

That will may now be emerging. At least, if opposition leader Peter Dutton and the Coalition have their way.

As you’re likely aware, Dutton is pushing for Australia to invest heavily in constructing nuclear plants. A move the Labor government still strongly opposes.

140% potential gains on the table

According to Morgan Stanley, the “nuclear renaissance” now underway may need US$1.5 trillion (AU$2.3 trillion) of investment between now and 2050.

And the broker noted that if Australia’s restrictive policies on uranium exploration and mining are lifted, it could usher in some outsized gains for ASX uranium stocks like Paladin.

According to Morgan Stanley’s Shannon Sinha (quoted by the AFR):

Nuclear power remains divisive. High construction costs, as well as concerns about waste and safety, plus political sensitivity, mean that nuclear is likely to remain a binary issue for many markets.

Sinha added, “Paladin’s Australia resource base is currently impacted by uranium mining bans in Australia, but we note that the political stance on this may be changing.”

Morgan Stanley estimates the ASX uranium stock could be a major beneficiary if the government eases restrictions on its Western Australian and Queensland assets.

The broker said the Paladin share price could soar as high as $32.00 in this event, representing a potential upside of 142% from Friday’s closing price of $13.24.

The post How the ‘nuclear renaissance’ could send ASX uranium stocks like Paladin through the roof appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alligator Energy Limited right now?

Before you buy Alligator Energy 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 Alligator Energy 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.*

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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.
24 June 2024
Don’t forget your franking credits this tax time
This Monday marks exactly one week until the start of July. That means there’s only one week left in June, as well as the 2024 financial year. It also means that from next Monday on, we’ll be able to lodge our tax returns for the financial year that is about to pass us by. So let’s talk about why you won’t want to forget your franking credits when you do your taxes.

Franking credits are an important component of the tax return for anyone who owns ASX shares. Overlooking them when you do your taxes would be a huge mistake.

But let’s explain why by looking at what franking credits are and why they’re worth paying attention to.

What are franking credits?

Franking credits are a unique feature of our Australian taxation system. They are paid out at the same time a company pays a fully or partially franked dividend.

Whenever a company pays out a dividend, it must do so from a pool of profits on which it has already paid corporate tax. When you or I receive this dividend, we must also declare it to the Australian Taxation Office (ATO) as taxable income and pay tax on this cash accordingly.

But you may notice a problem here. By the time this dividend cash makes its way into our bank accounts, it has theoretically been taxed twice. Once at the corporate level and once as personal income. That’s not exactly a fair outcome.

To account for this, companies include franking credits with any dividends funded from previously taxed profits. These credits can be thought of as a receipt of sorts that proves taxes have already been paid on this pool of cash.

Most ASX shares pay corporate taxes in Australia. If that’s the case, dividends from these companies usually come fully franked. But if a company makes profits and pays taxes offshore instead of in Australia, it might not generate franking credits. This is normally the case when a company pays a partially franked dividend or a dividend that is completely unfranked.

How does a franked dividend help us at tax time?

When we receive franking credits, we can use them to claim a tax deduction from the ATO up to the value of the taxes already paid. As such, franking credits reduce the income tax we might otherwise be required to pay to the ATO.

Thus, franking can form a big portion of the overall wealth-building benefits of investing in and owning ASX shares.

To illustrate, let’s take an ASX dividend share that has paid out a yield of 4% over FY2024. If these dividends were fully franked, that dividend yield would instead gross up to be worth 5.71%, with the value of those full franking credits included.

As you can see, franking is not something that should be ignored. It can help reduce your debt or assist you in getting a larger refund when you lodge your FY2024 tax return. So don’t forget about your franking this tax time. Doing so would be a huge own goal.

The post Don’t forget your franking credits this tax time appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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*Returns as of 5 May 2024

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.
24 June 2024