Author: therawinformant

I received a question from one of our members the other day.

It went something like:

“We stuck in there when markets fell. We’ve ridden the partial recovery. But everyone is saying the markets are going to crash hard next. When do we sell?”

I saw another headline the other day, from someone predicting an 80% stock market crash.

Frankly, because I’m greedy, I’d welcome such a crash. I mean the chance to buy a small part of Australia’s best businesses, at 20c on the dollar, because of a short-term market overreaction?

Sign me up.

And while I’m at it, I’ll be mortgaging the house, selling the cars and hocking the TV to raise as much cash as I can.

Not everyone has the same response, however.

An 80% fall would see many people sell in a fit of panic. The desperation to do something – anything – to make the pain stop would be too great.

It’s a strange quirk of human nature: When shares go up, there must be a crash around the corner. But when they fall, things are going to keep getting worse.

Man, talk about seeing the bad side of everything.

I mean, what are the odds that the ASX, currently at 6,000 points, would be not worth buying at 5,000, 4,000 or 3,000 points?

Do you really think Woolworths Group Ltd (ASX: WOW), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Telstra Corporation Ltd (ASX: TLS), which investors happily hold at current prices, are worth holding today, but should be mindlessly sold if their prices halved?

And if they fell 80%?

I hope, dear Fool, that you’d be filling your boots.

Oh, sure. I get it.

We’d all like to sell at the very top, then buy in again at the very bottom.

I’d also like to believe in the Tooth Fairy, Santa Claus, and that Donald Trump actually understands the graphs he used in his interview this week.

Instead, though, we’re stuck in this messy, imprecise reality.

The one that, sans crystal balls, doesn’t give up its secrets – especially about the future.

So let’s break it down.

First, people have been predicting 80% falls for decades.

Yes, decades. 

Often the same people. Sometimes different ones, but with the same schtick.

So far, they’ve all been wrong. Oh, and in the meantime, the stock market is up about 18-fold over the past thirty years.

That’s a helluva gain to miss out on while you waited for the ‘predictions’ to come true, huh?

Second, 80% falls are, well, exceedingly rare. 

Third, if everyone knew the market was going to fall 80%, they’d have already sold.

Now, it’s possible that only you and I know the market is going to fall, because we’re possessed of some special insight. That only the three of us – you, me and the bloke (it’s always a bloke) who made the forecast – know the truth.

Which is as it may be… but that means not everyone knows, after all.

Fourth, your brain is messing with you. So is mine. We hear, see and read the one prediction of doom, compared to the dozens and dozens of people who expect something between a tough ride and prosperity, and which one sticks in our minds? Yep, that one guy.

The one nagging thought, snagged somewhere at the front of our consciousness while the others float by, unremarked upon.

“What if he’s right,” you think. “I mean, it’s possible.”

So ask yourself: Did you think “What if he’s right?” after someone else predicted a swift recovery? Or a prolonged period of stagnation, then recovery?

Probably not. We don’t tend to hang on to those thoughts. It’s the predictions of doom that preoccupy us.

And it’s not your fault.

It’s evolution.

Our brains just aren’t programmed to think that far ahead. 

Or to think in compound, exponential terms.

Confronted with decades of compound growth (including many periods of tough times), we don’t think “What if that continues?”, but rather “What if it ends?”.

And fair enough.

You won’t get any blame from me.

But what I will do is invite you to engage the part of our brain that can critically analyse our instinctive responses.

We instinctively fear the dark, even though we know there’s nothing there.

We instinctively jump at loud noises, even though we know the cause is almost certainly benign.

We instinctively mistrust people who are unlike us, even though we know it’s an evolutionary leftover.

And yes, we instinctively fear market falls, even though we know the overwhelming story of the past century (and more) is that, despite the occasional fall, stock markets tend to go higher.

(And if your response to that is “Yeah, but what about…?”, I’ll tell you that I understand that response, but you’re likely grabbing for the exception that proves the rule, not something that renders the rule useless.)

For what it’s worth, I think an 80% fall is remarkably unlikely.

But far more importantly, it it happens, either one of two things will be true:

The economy has permanently collapsed, and your dollars will be as useless as your shares (and gold, and bitcoin); or

It’s a short term overreaction, which either presents a buying opportunity, or is just a tough time to live through, while you wait for sanity to return.

(And remember, you shouldn’t be investing any money you need in the next 3-5 years, anyway.)

If Woolies falls 80%, do you really think the company will be serving 80% fewer Australians or making 80% less profit from here until eternity?

Do you think CSL sells 80% fewer vaccines and blood products, forever?

Does ResMed Inc (ASX: RMD) lose 80% of its sleep apnoea market?

Will Telstra be only one-fifth of its current size, permanently?

Now, ‘predictions’ of an 80% fall make for great headlines. They get tongues wagging, and people worrying.

Remember last year’s ‘prediction’ of a 50% fall in house prices?

Or 2016’s forecast of an 80% fall in the share market (sounds familiar, huh?).

Every single prediction of a cataclysmic market crash since 1932 has been wrong.

Every. Single. One.

No, I can’t rule it out. Unlike those people who make their outlandish predictions, I make no silly promises.

Is it possible? Yep.

But there are plenty of things that are far more likely that we simply outright ignore in our daily lives, because they’re neither so stark, so seemingly dangerous or so breathlessly reported.

If I declared myself a weatherman, and told you there was a flash flood coming, you’d want to see both my credentials and my track record, right?

I’d suggest treating those predictions with the same disdain.

Fool on!

More reading

• The latest ASX 200 stocks downgraded by top brokers
• Is the ResMed share price a buy?
• Why I would buy and hold CSL shares today
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.45%: REA Group impresses, IAG profit slump, ResMed downgraded

Scott Phillips owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Ready for the “80% stock market crash”? appeared first on Motley Fool Australia.

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Are you looking for safe dividend options during these uncertain times? Then you might want to consider buying the ASX dividend shares listed below.

I feel confident that they will continue to pay dividends largely as normal for the foreseeable future. Here’s why I would buy them:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first dividend option for investors to consider buying is this exchange traded fund. As you might have guessed from its name, the Vanguard Australian Shares High Yield ETF has a focus on high yield shares. The fund has invested in 66 of the highest yielding blue chip shares on the Australian share market.

This includes the likes of BHP Group Ltd (ASX: BHP), the big four banks, Coles Group Ltd (ASX: COL), and telco giant Telstra Corporation Ltd (ASX: TLS). While predicting what dividend it will pay next year is tricky, based on the shares within the fund, I would expect an FY 2021 dividend yield somewhere in the region of 4% to 5%. Another positive with this fund is the diversity it offers investors. No industry accounts for more than 40% of the fund and no single company accounts for more than 10%.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. I think the conglomerate is a great option for income investors due to the quality and diversity of its portfolio. Another positive is management’s long track record of making earnings accretive acquisitions. This could come into play in the near future given the sizeable amount of cash sitting on its balance sheet following the sell down of its stake in supermarket giant Coles earlier this year.

All in all, I believe the conglomerate is well-positioned to deliver solid earnings and dividend growth over the next decade. And based on the current Wesfarmers share price, I estimate that it provides investors with an FY 2021 fully franked ~3.2% dividend yield.

More reading

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• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 jumps 2% higher, Afterpay soars
• Looking for good ASX dividend shares? I would buy these right now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The listed investment companies (LICs) of Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Invstmnt Co Ltd (ASX: FGG) have grown their dividends in the June 2020 results.

The Future Generation companies are LICs with two main goals. The first goal is to donate 1% of net assets each year to youth charities and youth mental health charities. They can do this by charging shareholders no management fees. The fund managers that the LICs invests with also don’t charge management fees – they work for free. The other goal is to generate returns for shareholders. 

Future Generation Australia HY20 result

Future Generation Australia reported that over the six months to 30 June 2020, its portfolio’s decline of 7.1% outperformed the S&P/ASX All Ordinaries Accumulation Index by 3.3% (the index dropped 10.4%) which included the COVID-19 crash.

Over the past 12 months the LIC’s negative 1.2% return outperformed the index by 6%. Since inception the Future Generation Australia portfolio has grown by an average of 7.3% per annum, outperforming the index by 1.8% per annum. The outperformance was delivered with less volatility.

The board decided to increase its interim dividend by 8.3% to 2.6 cents per share. The LIC had an estimated profit reserve of 8.6 cents per share at 30 June 2020. The LIC was able to fund this dividend announcement thanks to the profit reserve. The Future Generation share price is up almost 3% in reaction to the announcement.

At the current Future Generation Australia share price of $1.05, it offers a fully franked dividend yield of 5% or 7% when grossed-up to include the franking credits.

Some of the charities currently supported include: Act For Kids, Australian Children’s Music Foundation, Australian Indigenous Education Foundation, DEBRA Australia, Diabetes Kids Fund, Giant Steps, Lighthouse Foundation, Mirabel Foundation, Raise Foundation, United Way Australia, Variety and Youth Off The Streets.

This year the LIC will invest $4.8 million into charities, which will bring the total charitable donations since inception to $21.4 million.

At the current Future Generation Australia share price it’s trading at a 8.5% discount to the net tangible assets (NTA) at 30 June 2020.

Future Generation Global HY20 result

Future Generation Global reported that its portfolio’s return of 0.3% outperformed the MSCI AC World Index’s (AUD) return of negative 4.4% by 4.7%. Over the past year the global LIC’s 7.5% portfolio return outperformed the index by 3.6%.

The leadership was pleased to preserve shareholder capital in a highly volatile period.

Since inception, the LIC’s average portfolio return per annum of 9.2% was 0.3% per annum better than the index.

The board of Future Generation Global announced a 33% increase to its dividend to 2 cents per share. This was achieved by tapping into the profit reserve as well as the solid outperformance achieved in recent times.

The Future Generation Global share price is up almost 1% in reaction to the announcement.

If the LIC were to pay 2 cents per share every 12 months going forwards, it would have a grossed-up dividend yield of 2.3% based on the current Future Generation Global share price.

Some of the current youth mental charities currently supported are: Black Dog Institute, Brain and Mind Centre, Butterfly Foundation for Eating Disorders, Kids Helpline, Orygen – the National Centre of Excellence in Youth Mental Health, ReachOut Australia, SANE Australia and Youth Focus.

This year the global LIC will invest $5.7 million, which will bring total donations since inception to $19.7 million.

At the current Future Generation Global share price it’s trading at a 17% discount to the June 2020 NTA.

Foolish takeaway

The share prices of both LICs have risen in reaction this result. Outperformance and an increased dividend have been welcomed in these difficult times and investors clearly thought that both were opportunities after today’s result announcements. 

More reading

• 3 ASX LICs offering big dividend yields over 7%
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• 3 of the best ASX dividend shares for income

The post Future Generation LICs grow dividends in June result appeared first on Motley Fool Australia.

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The market looks set to end the week on a negative note, but some ASX stocks are feeling more heat after being downgraded by leading brokers.

The S&P/ASX 200 Index (Index:^AXJO) shed 0.7% of its value to trade just under the psychologically important 6,000 mark.

However, the top 200 benchmark is still finish the week with a more than 1% gain, although the same can’t be said for the RESMED/IDR UNRESTR (ASX: RMD) share price.

ResMed’s double downgrad

Shares in the sleep disorder treatment company tumbled 3.1% to $25.08 in after lunch trade. This makes it the third worst performer on the ASX 200 after the JANUS/IDR UNRESTR (ASX: JHG) share price and V MONEY UK/IDR UNRESTR (ASX: VUK) share price.

ResMed is losing favour today as not one, but two brokers downgraded their recommendation on the stock following its profit results.

While ResMed’s earnings came in ahead of consensus, the good news is reflected in its share price, according to Morgan Stanley.

Earnings beat fails to excite

The company’s earnings beat is largely driven by better-than-expected cost control and demand for ventilators to treat severe COVID-19 cases.

These tailwinds are likely to fade with the broker pointing to an acceleration in cost growth as the economy picks up speed. Further, demand for ventilators will also taper off in FY21.

The fall-off in ventilator sales will need to be made up by rising demand for its core sleep apnea solutions.

Slower recovery for core business

“The main challenge now is to weigh up what looks likely to be a sharp tapering of ventilator demand (10-15% of Group) against a steady recovery in sleep apnea (85-90%) through the coming quarters, which is clearly subject to a wide degree of uncertainty,” said Goldman Sachs.

The fact is the pace of growth for its core products is unlikely to make up for falling ventilator sales.

Morgan Stanley cut its recommendation to “equal-weight” from “overweight” with a price target of $25.40 a share.

Goldman lowered its rating on ResMed to “neutral” from “buy” with a target price of $26.40 a share.

Hanging up on TPG

Another stock that’s underperforming today is the TPG Telecom Ltd (ASX: TPG) share price, which got downgraded by UBS to “sell” from “neutral”.

The broker believes that the special dividend of $0.49 a share and the Tuas Ltd (AS: TUA) spin-off haven’t been unwound from the current share price.

“On the day prior to the announcement of the special dividend, TPG was trading at $8.05, and rallied to $8.90 immediately prior to the completion of the merger,” said UBS.

“This compares with our previous $8.00 valuation. Our new valuation is $7.20, which removes the special dividend and Tuas.”

Too big a premium to Telstra

Further, UBS pointed out that TPG trades at a premium to the Telstra Corporation Ltd (ASX: TLS) share price.

While some premium may be justified due to synergies from TPG’s merger with Vodafone, UBS thinks it’s currently too excessive.

More reading

• Ready for the “80% stock market crash”?
• Is the ResMed share price a buy?
• Mesoblast’s share price gained another 16% in July. Here’s why.
• Why I would buy and hold CSL shares today
• Brokers name 3 ASX shares to buy right now

Motley Fool contributor Brendon Lau owns shares of Telstra Limited and TPG Telecom Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Troy Resources Ltd (ASX: TRY) share price is rocketing higher today, after the miner released an exploration update regarding its gold project in Guyana. The Troy Resources share price is currently trading 23.81% higher up to 13 cents.

What does Troy Resources do?

Troy Resources is a small- to mid-size gold producer with a history of developing and operating mines in Australia and South America.

Troy has been operating in South America since 2002. In July 2013, the company acquired Azimuth Resources which had discovered and delineated the Karouni Project in Guyana. Troy Resources fast tracked development of Karouni, with first gold production occurring in November 2015.

Exploration update

This morning, Troy Resources provided the ASX with reports indicating strong gold finds at its Karouni project in Guyana. This comes after new tailwinds have been pushing gold prices closer to record highs.

Troy recently commenced an 8 hole diamond drilling campaign at Smarts Underground (one of its mines in Guyana) targeting mineralisation beneath the Smarts Pits. The first 4 drill holes demonstrated strong finds and this 5th hole demonstrates more of the same.

Some of the highlights from the results are:

• 2 metres @ 31.38 grams per tonne (g/t Au) from 175 metres
• 6 metres @ 8.12 g/t Au from 196 metres
• 2 metres @ 26.38 g/t Au from 211 metres
• 2 metres @ 15.68 g/t Au from 291 metres
• 26 metres @ 3.58 g/t Au from 305 metres
• 10 metres @ 10.69 g/t Au from 384 metres

The second stage of the drilling campaign, featuring an additional 3 holes (though this number may be increased), will commence shortly, with completion anticipated in September.

What now for the Troy Resources share price

As mentioned above, gold prices have been soaring recently, smashing through the US$2,000 an ounce target. With some reports suggesting that gold could continue its run, now is a good time to be a gold miner.

However, some experts have been arguing that gold may be just as likely to witness a painful correction, which wouldn’t bode well for the Troy Resources share price.

At the time of writing, the Troy Resources share price is up 8.33% on this time last year, and 44.44% year to date.

More reading

• Ready for the “80% stock market crash”?
• 2 safe ASX dividend shares to buy in uncertain times
• Future Generation LICs grow dividends in June result
• The latest ASX 200 stocks downgraded by top brokers
• Is the ResMed share price a buy?

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why has the Troy Resources share price blasted 23% higher today? appeared first on Motley Fool Australia.

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The ResMed Inc (ASX: RMD) share price was down more than 14% for the week after hitting an intra-day low of $24.18 earlier today. Despite the volatile price action, the ResMed share price could be a long-term buy after the company reported strong full-year results.

How did ResMed perform?

The company released its fourth quarter and full-year update yesterday, which saw the RedMed share price sell-off sharply. Despite the negative price action, ResMed reported a very strong set of results.

For the three months ending 30 June 2020, ResMed reported a 10% increase in revenue on a constant currency basis of US$770.3 million. In addition to the robust revenue growth, the company also reported strong earnings with gross margins surging 59.9% for the period. As a result, ResMed saw a quarterly operating profit of US$243.4 million with quarterly net income surging 40% to US$193.3 million,

For the full-year, ResMed reported a 15% increase in revenue of US$3 billion on a constant currency basis and a 24% increase in operating profit of US$890.9 million. The company’s management noted that the strong performance reflects the strength and resilience of ResMed given the uncertain trading environment. Clearly, however, these results were not enough to prevent the negative impact on the ResMed share price.

What has fuelled ResMed’s performance?

ResMed is a global leader in respiratory medical devices, particularly targeted towards the treatment of sleep apnoea. In addition, the company also produces invasive and non-invasive ventilators that are used to boost the oxygen intake of patients. 

In its report, ResMed revealed that the company had produced 150,000 ventilators in the six months through to 30 June to help countries fight the COVID-19 pandemic. More than 52,000 of these units were for an urgent contract from the Australian Government, as the company tripled its ventilator production in order to meet demand.

Should you buy at today’s ResMed share price?

Many investors were highly anticipating ResMed’s results, given the demand for the company’s products during the pandemic. However, despite the bumper results, the ResMed share price tanked more than 8% yesterday. I believe the sell-off was a result of the company flagging a slow recovery in its core sleep apnoea business, with single digit growth expected to continue for the next 12 months.

The ResMed share price continued its fall this morning, plunging as low as $24.18 before bouncing back to its current level of $25.01 at the time of writing. Given the uncertain nature of the pandemic, and the further treatments that could be necessitated by it, I believe ResMed’s products could continue to see unprecedented demand over the long-term.

However, in my opinion, there shouldn’t be a mad rush to buy shares in the company at today’s ResMed share price. I think a conservative, long-term strategy would be to wait for investors to fully-digest the company’s results and let the ResMed share price consolidate further before buying in.

More reading

• Ready for the “80% stock market crash”?
• The latest ASX 200 stocks downgraded by top brokers
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.45%: REA Group impresses, IAG profit slump, ResMed downgraded
• Why Australian Ethical, Northern Star, ResMed, & TPG Telecom are dropping lower

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the ResMed share price a buy? appeared first on Motley Fool Australia.

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If you have $2,000 sitting in a savings account, I would suggest you consider investing it into the share market.

After all, the potential returns on offer are vastly superior to the extremely low interest rates of 0.05% provided with savings accounts right now.

But where should you invest these funds? Here are two ASX shares that I would invest $2,000 into:

Afterpay Ltd (ASX: APT)

I think this payments giant could be a great option for that $2,000 investment. Although its shares have been on fire this year, I don’t believe it is too late to invest if you’re planning to make a long term investment in the company. This is because I feel confident the buy now pay later provider is well-positioned to become a payments giant thanks to the growing popularity of its platform with consumers and merchants and its global expansion opportunity.

In respect to the latter, Afterpay is launching into Canada shortly. After which, I suspect mainland Europe will be targeted and maybe even the Chinese market in the future. Especially after WeChat owner Tencent Holdings became a substantial holder a few months ago.

Nanosonics Ltd (ASX: NAN)

Another option for investors to consider investing $2,000 into is this infection prevention specialist. It is the company behind the industry-leading trophon EPR disinfection system for ultrasound probes. Although FY 2020 might underwhelm because of the pandemic, I expect this product and the growing recurring revenues it generates to underpin solid earnings growth during the 2020s.  

This should be supported by the upcoming launch of several new products which are targeting unmet needs. Not a lot is known about these secretive products. However, the first one is understood to have a market opportunity of a similar size to the trophon EPR product. Given that this effectively doubles its total addressable market, if it is a success then Nanosonics’ growth could be given a significant boost.

More reading

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This earnings season is set to be dominated by companies talking about the impact the pandemic has had on their performances.

While the overall impact varies company to company, one of the companies which is likely to have been hit hardest is Crown Resorts Ltd (ASX: CWN).

It is no wonder then that the casino and resorts operator’s shares are down 30% from their 52-week high.

Ahead of its results release on 19 August 2020, I thought I would see what analysts were expecting from the company.

What to expect from Crown Resorts in FY 2020?

According to a note out of Goldman Sachs, its analysts expect Crown to report a sharp decline in both revenue and earnings.

For the 12 months ended 30 June 2020, Goldman is forecasting revenue of $2.24 billion. This represents a 28% decline on the prior corresponding period.

In respect to earnings, the broker is estimating earnings before interest, tax, depreciation, and amortisation (EBITDA) of $483 million for FY 2020. This will be a 40% decline on the prior corresponding period. On a normalised basis, which excludes one-offs, EBITDA is expected to be $510 million.

Finally, on the bottom line, Goldman Sachs has pencilled in a second half loss of $36 million, leading to full year net profit after tax of $148 million. This will be down 60% year on year. In light of this tough second half, no final dividend is expected to be declared.

What else should you look out for?

Given the uncertainty it is facing, guidance for FY 2021 appears very unlikely to be given with these results.

Nevertheless, the broker is looking for some commentary around costs and also domestic gaming trends during the first quarter. Particularly given the recent reopening of its casino in Perth.

In addition to this, Goldman expects Crown to provide an update on its Crown Sydney development, which is expected to complete at the end of the year.

The broker commented: “Construction of Crown Sydney has largely remained uninterrupted through the pandemic, and CWN continues to expect the Crown Sydney to be completed on time (Dec 2020) and on budget (gross/net cost of A$2.2/1.4bn). Given the importance and size of this asset, we expect investors to focus on i) the outlook and how it plans to navigate around travel restrictions given its clear focus on VIP/premium end of the market and ii) progress and timing around the recruitment of c. 2k FTE to work in the Hotel Resort.”

Should you invest?

Goldman Sachs is sitting on the fence with Crown and has a neutral rating and $9.50 price target on its shares. It prefers rival Star Entertainment Group Ltd (ASX: SGR), which it has placed a buy rating and $3.70 price target on.

More reading

• Village Roadshow locked in a capital raise as it secures new $70m facility
• Why Crown, Fortescue, Kogan, & Nearmap shares are storming higher
• 5 things to watch on the ASX 200 on Monday
• Why Bubs, IAG, Star Entertainment, & Webjet shares are dropping lower
• Top broker picks the cheapest ASX stocks to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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