Stock Pick

Author: therawinformant

  • EU Sets Price for Backing $9.8 Billion Lufthansa Rescue Deal

    EU Sets Price for Backing $9.8 Billion Lufthansa Rescue Deal(Bloomberg) — The German government’s 9 billion-euro ($9.8 billion) bailout of Deutsche Lufthansa AG may cost the stricken carrier some valuable assets: Key flight slots at airports in Frankfurt and Munich.The European Commission wants Lufthansa to surrender the slots out of concern the aid will give the carrier unfair advantage over competitors, people familiar with the matter said.After weeks of talks, Germany on Monday offered Lufthansa a package of loans and equity investment to keep the carrier aloft through the coronavirus storm. = Officials in Brussels are concerned the deal will distort competition and fuel lawsuits from competitors like Ryanair Holdings Plc, the people said. Approval of the deal could take several weeks, they said, asking not to be named discussing confidential deliberations.To compensate for the state help, the European Union’s executive arm also would like the airline to decrease the number of aircraft based in Germany, the people said. German Chancellor Angela Merkel told a meeting of conservative lawmakers the government would fight for Lufthansa to keep key slots, people familiar with the matter said.“The discussions with the European Commission are continuing at full speed,” German Economy Minister Peter Altmaier said Monday at a news conference in Berlin. “So far, we have managed to get approval from Brussels for all our aid requests during the corona crisis. How long it will take I cannot say, but the main point for us is that we want to achieve a good result.”Shares GainLufthansa shares advanced on Tuesday, building on Monday’s 7.5% gain in the wake of the deal. As of 9:29 a.m. in Frankfurt, the stock was up 6.4%. Still, it remains down 44% for the year.Analysts at Deutsche Bank AG said that while some of the terms of the German government deal were less punitive than expected, it would leave Lufthansa with high debt levels.Airport slots are a crucial currency for airlines, which rarely give up the ability to operate flights at popular times and to destinations. It’s a commodity that EU regulators have often asked carriers to cede to smaller rivals when seeking approval for mergers, including during Lufthansa’s 2017 takeover of a unit of Air Berlin.Like airlines the world over, Lufthansa is fighting for survival as restrictions to contain the coronavirus puncture a decades-long aviation boom. The company plans to operate fewer aircraft when flights resume and is closing discount arm Germanwings to resize for what it warns could be years of depressed demand.The EU press office said it had no comment on the Lufthansa plan and was “in constant contact” with governments. It defended the need for “additional commitments to preserve effective competition” that are required for recapitalizations of more than 250 million euros to a company, according to an emailed statement.“This is important to preserve the level playing field in the single market post-coronavirus crisis to the benefit of all European consumers and companies,” the EU said.The Lufthansa package will be the first recapitalization to be weighed by the EU after it loosened rules this month that usually prevent governments from pumping money into favored firms. Regulators are facing criticism from Ryanair that they are violating EU principles on fair competition by allowing huge amounts of state cash to prop up inefficient airlines. Ryanair argues that this could fund a price war or expansion spree to knock out rivals.EU officials are aware of the need for speedy approvals, said Margrethe Vestager, the bloc’s antitrust chief. Officials have been “working seven days a week around the clock” and at night “in order to make sure that things can be processed as fast as possible,” she told EU lawmakers on Monday.Blocking StakeThe German government on Monday unveiled an aid package for Lufthansa that involves taking an initial 20% stake that could rise to a blocking minority of 25% plus one share in the event of a hostile takeover. The deal also includes a 5.7 billion-euro investment via a so-called silent participation — a debt-equity hybrid instrument that wouldn’t dilute shareholder voting rights. The state will also back a three-year loan of 3 billion euros.As well as approval from the European Commission, Lufthansa’s supervisory board must approve the deal and shareholders will have to vote on the capital increase at a special meeting, likely to be held in late June. Lufthansa is poised to receive some 2 billion euros in ad from Austria, Belgium and Switzerland.The German package represents the biggest corporate rescue in the country during the pandemic crisis. It’s also the only one that involves a direct investment by Merkel’s government, but more may be coming. The government set up the 100 billion-euro fund to buy stakes in stricken companies as part of its effort to stabilize Europe’s largest economy.(Updates with share price move in sixth paragraph, analyst comment)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    from Yahoo Finance https://ift.tt/2ZAfe58

  • Novavax Begins Human Testing For Covid-19 Vaccine, Expects Results In July

    Novavax Begins Human Testing For Covid-19 Vaccine, Expects Results In JulyNovavax (NVAX) is now beginning human testing in its Phase 1/2 clinical trial of its coronavirus vaccine candidate, NVX‑CoV2373. Preliminary immunogenicity and safety results from the Phase 1 part of the trial are expected in July 2020, the company says.NVX‑CoV2373 is a stable, prefusion protein that uses Novavax’s Matrix‑M adjuvant to enhance immune responses and stimulate high levels of neutralizing antibodies.“Administering our vaccine in the first participants of this clinical trial is a significant achievement, bringing us one step closer toward addressing the fundamental need for a vaccine in the fight against the global COVID‑19 pandemic,” said Stanley C. Erck, CEO of Novavax. “We look forward to sharing the clinical results in July and, if promising, quickly initiating the Phase 2 portion of the trial.”The Phase 1/2 clinical trial will be held in two parts. Phase 1 is a randomized, observer-blinded, placebo-controlled trial to evaluate the vaccine’s immunogenicity and safety, both adjuvanted with Matrix‑M and unadjuvanted. The trial is enrolling 130 healthy participants 18 to 59 years old at two sites in Australia. The protocol’s two-dose trial regimen assesses two dose sizes (5 and 25 micrograms) with Matrix‑M and without.If Phase 1 is successful, the Phase 2 part will begin ‘promptly’ says NVAX. It will be held in multiple countries, including the US, and would assess immunity, safety and Covid‑19 disease reduction in a broader age range. This Phase 1/2 approach allows for rapid advancement of NVX‑CoV2373 during the pandemic, says Novavax. The trial is being supported by $388M in funding from the Coalition for Epidemic Preparedness Innovations (CEPI).According to the Wall Street Journal, Novavax is already ramping up manufacturing for NVX‑CoV2373 even though trials are only beginning now. “Time is the most important thing here,” Erck told the publisher, adding that normally NVAX would wait 6-9 months before taking this step.Shares in Novavax have exploded by 1059% year-to-date, and analysts have a firmly bullish Strong Buy stock consensus. The average analyst price target currently stands at $48 (3% upside potential). (See Novavax stock analysis on TipRanks).Ladenburg Thalmann analyst Michael Higgins has just boosted his price target from $38 to $50. “Our higher price target reflects our continued confidence in the successful completion of development and global approval of NVX-CoV2373, with an increased estimate for the procurement of this vaccine in 2021, from 100M to 300M doses, at $10/dose, for a ~3% share of global vaccine consumption, with our continued assumption for a $5 CGS/dose” he explains.Related News: Novavax Spikes 31% on $384 Million Cash Injection for Vaccine Production Novavax Seeks To Raise $250 Million From Share Sale; Top Analyst Bumps Up PT Regeneron To Repurchase $5 Billion Stake From Sanofi   More recent articles from Smarter Analyst: * Blackstone-Backed Phoenix Snaps Up 650 Wireless Towers, Analyst Upgrades BX To Buy * Regeneron and Sanofi’s Dupixent Shows ‘Positive’ Trial Data, Meets Co-Primary Endpoints * Molson Coors Suspends Dividend; Cuts Costs By $200M * Lufthansa Clinches $9.8 Billion Bailout Deal With German Government

    from Yahoo Finance https://ift.tt/3ejgu0D

  • Got $1,000 to invest? These quality ASX shares could be the ones to buy

    dollar sign growth concept

    If you have $1,000 in a savings account and no immediate plans for it, I would suggest you consider investing it into the share market.

    After all, the potential returns on offer from the share market are vastly superior to the paltry interest rates being offered by the big four banks.

    Two top ASX shares that I think could generate very strong returns for investors over the next decade are listed below.

    Here’s why I would invest $1,000 into these shares for 10 years:

    BetaShares NASDAQ 100 ETF (ASX: NDQ)

    The first option to consider investing $1,000 into is the BetaShares NASDAQ 100 ETF. As its name implies, this popular exchange traded fund provides investors with exposure to the NASDAQ 100. This index comprises the 100 largest non-financial shares on the NASDAQ.

    You’ll no doubt be familiar with the majority of the companies on this index as they are largely household names. This includes coffee giant Starbucks, tech behemoths Amazon, Apple, Facebook, and Google, electric car company Tesla, and retailer Costco.

    As a whole, I think these 100 companies have the potential to grow at a quicker rate than the rest of the global economy over the next decade. In light of this, I expect the BetaShares NASDAQ 100 ETF to provide investors with strong returns for many years to come.

    ResMed Inc. (ASX: RMD)

    Another option to consider investing $1,000 into is ResMed. I think it is one of the best long term options on the Australian share market and well-positioned for growth over the next decade.

    This is because the sleep treatment focused medical device company looks well-placed to profit from the proliferation of obstructive sleep apnoea (OSA). Management estimates that just 20% of OSA sufferers have been diagnosed at this point. This means that there is still a significant market opportunity for the company to capture in the future.

    I expect this to underpin above-average earnings growth and drive market-beating returns for investors for the foreseeable future.

    And here are more top shares which analysts have just given buy ratings to. All five recommendations below look dirt cheap after the crash…

    NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

    Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

    Another is a diversified conglomerate trading over 40% off it’s high, all while offering a fully franked dividend yield over 3%…

    Plus 3 more cheap bets that could position you to profit over the next 12 months!

    See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

    CLICK HERE FOR YOUR FREE REPORT!

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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 Got $1,000 to invest? These quality ASX shares could be the ones to buy appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2XsXQwx

  • How Airlines Are Generating Revenue on Flights That Will Never Take Off

    How Airlines Are Generating Revenue on Flights That Will Never Take OffU.S. leisure travelers often buy airfare months ahead of departure, betting they can score a deal with shrewd advance planning. But in these atypical times, that may not be the best strategy — provided they want to fly what they bought. That's because many airlines have not yet decided what they're going to fly more […]

    from Yahoo Finance https://ift.tt/2A5g3bJ

  • Why ASX 200 travel shares are soaring higher today

    plane flying across share markey graph, asx 200 travel shares

    The S&P/ASX 200 Index (ASX: XJO) has seen strong share price gains across the board today. In fact, the index was up by a very healthy 2.5% at the close. This follows strong share price gains yesterday, as general market sentiment continues to lift. These gains are largely being driven by hopes the Australian economy can start recovering from the coronavirus pandemic more quickly than anticipated.

    Easing restrictions bring hope to the travel sector

    ASX 200 travel shares have been punished harshly in recent months. With severe lockdown restrictions coming into effect in March, both local and international travel has virtually ground to a halt since then.

    However, it is now looking increasingly likely that domestic travel will gradually start to pick up in the months ahead. As the Australian government begins to ease lockdown restrictions, renewed hope is starting to flow through to the travel sector. Increased optimism surrounding a possible coronavirus vaccine is also boosting spirits amongst ASX 200 investors.

    It’s true that the possibility of international travel resuming to any significant degree before the end of this year is still highly unlikely. There is, however, the possibility of a trans-Tasman bubble that will open up travel between Australia and New Zealand later in the year.

    This good news is helping spur on a partial rebound amongst heavily sold off shares within the ASX 200 travel sector. Corporate Travel Management Ltd (ASX: CTD) is up 3.8% today whilst Webjet Limited (ASX: WEB) climbed by 5.5%. Likewise, Flight Centre Travel Group Ltd (ASX: FLT) is up by 8.8% and Qantas Airways Limited (ASX: QAN) surged by 4.9%.

    Travel bookings segment hit particularly hard

    In the travel bookings segment, Flight Centre has been hit particularly hard by the economic fallout from COVID-19. This is primarily related to the company’s high fixed overhead costs. These are necessary to support the company’s nationwide chain of retail outlets. Despite its strong rally today, Flight Centre’s share price is still down by over 60% since January. In a recent capital raising, Flight Centre successfully raised $700 million from institutional and retail shareholders. The company has also undertaken a range of cost reduction initiatives in order to make it through these unprecedented market conditions.

    Due to its online only business model, Webjet may have less overheads than its main rival, Flight Centre. However with bookings drying up, the company has also been forced to enter survival mode in recent months. The Webjet share price has also been hit hard by a highly dilutive equity raising back in April. It would seem though that investors are now feeling a bit more optimistic that domestic flight bookings may begin again soon. Likewise, Corporate Travel Management will be hoping that some corporate travel in Australia will begin to resume in the months ahead. This should continue providing renewed optimism to its investors.

    Meanwhile, our national airline carrier, Qantas, has seen its fleet of planes largely grounded over the past few months. However, the company secured additional debt funding of $550 million in early May. It’s strong cash position makes it relatively well placed to ride out the remainder of the coronavirus crisis, before domestic travel starts to resume. This has helped to see its share price rise higher today as news surrounding the sector continues to look more optimistic.

    If you’re looking for more possible ASX 200 buying opportunities in the current market, check out the free report below.

    NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

    Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

    Another is a diversified conglomerate trading over 40% off it’s high, all while offering a fully franked dividend yield over 3%…

    Plus 3 more cheap bets that could position you to profit over the next 12 months!

    See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

    CLICK HERE FOR YOUR FREE REPORT!

    More reading

    Motley Fool contributor Phil Harpur owns shares of Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

    The post Why ASX 200 travel shares are soaring higher today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3egxHYL

  • ASX 200 rallies hard, no longer in bear territory

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) jumped almost 3% today to 5,780 points, it is now out of the bear market territory we’ve been in since March 2020.

    The ASX 200 is now down by just 19% from the 21 February 2020 level. Since 23 March 2020 the ASX 200 has risen by 27% in an extraordinary turnaround.

    ASX banks boost the index

    The big four ASX banks don’t quite make up as much of the index as they used to, but their combined movements can still have a big impact on the share market. They all rose strongly today. 

    Looking at those movements:

    The Commonwealth Bank of Australia (ASX: CBA) share price rose by almost 4%.

    The Westpac Banking Corp (ASX: WBC) share price went up 6.1%.

    Australia and New Zealand Banking Group (ASX: ANZ) saw its share price increase by 6%.

    The National Australia Bank Ltd (ASX: NAB) share price went up 5.6%.

    Investors appear to be much more hopeful about the Australian economy’s trajectory.

    ASX 200 travel shares continue to soar

    After yesterday’s comments from Treasurer Josh Frydenberg about prolonging support, the travel industry has continued to fly today with investors seeing a return of travel on the horizon.

    Some of the ASX 200 travel shares that experienced another large gain today were:

    The Flight Centre Travel Group Ltd (ASX: FLT) share price went up 9.5%.

    The Webjet Limited (ASX: WEB) share price rose 5.8%.

    Infrastructure giant Sydney Airport Holdings Pty Ltd (ASX: SYD) saw its share price fly higher by 4.2%.

    The Qantas Airways Limited (ASX: QAN) share price went up 5.4%.

    Coca-Cola Amatil Ltd (ASX: CCL) is hurting

    The Coca Cola share price fell 1.6% today after the food and beverage business said that its volumes were down heavily whilst also suffering earnings before interest and tax (EBIT) margin pain.

    COVID-19 struck at a particularly difficult point with Easter and Ramadan falling during the heaviest restrictions.

    The business also withdrew its dividend payout ratio guidance.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

    The post ASX 200 rallies hard, no longer in bear territory appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/36sCUKn

  • Why this small-cap ASX pharmaceutical share rocketed 27% higher today

    The Palla Pharma Ltd (ASX: PAL) share price was an impressive performer on the ASX today. Despite a number of gains across the board, Palla Pharma stood out with a big 27.46% share price rise in intra-day trading. As the day went on, Palla Pharma shares pulled back from these levels and closed 12.68% higher at 80 cents per share.

    About Palla Pharma

    Palla Pharma is a growing global supplier of opiate-based pain relief medicines. It is a fully-integrated opiate manufacturer, involved in a number of activities from poppy straw growing through to tableting production. 

    The company is one of three licensed poppy processors in Australia, and the only Australian-owned company. Additionally, it is one of six licensed opiate producers globally.

    The company was founded in 2004 as TPI and rebranded in 2019. ASX investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a major shareholder and its CEO, Todd Barlow, sits on the Palla Pharma board.

    What caused the Palla Pharma share price to spike?

    This morning, Palla Pharma announced it would not be going ahead with the acquisition of a major UK customer – ending almost a year’s worth of negotiations.

    Since July 2019, Palla Pharma has been in discussions with its largest UK customer, a manufacturer of finished dosage codeine phosphate, regarding the potential acquisition of the customer’s UK operations. This was part of Palla Pharma’s strategy to continue to move down the value chain.

    According to Palla Pharma, the customer’s manufacturing site has the capacity to tablet over 120 tonnes of codeine phosphate. This equates to revenue of approximately US$120 million.

    Acquisition discussions intensified earlier this year after the UK regulator imposed a 3-month suspension of the customer’s operating license. The suspension resulted in a need for working capital and management support, which was provided by Palla Pharma. To address the customer’s working capital needs, Palla Pharma acquired 4 of the customer’s marketing authorisations for the supply of codeine-based products into the UK.

    In return for its management assistance and investment of resources in the due diligence process, Palla Pharma noted it had been given an “option to acquire the business at an attractive valuation”.

    Fast forward to April and Palla Pharma announced it had acquired further marketing authorisations from the customer. Despite electing not to exercise the option, Palla Pharma stated it was in advanced negotiations with the owners and senior creditors in regard to the potential acquisition. However, there remained “material differences between the parties with respect to valuation”.

    All of this takes us to today’s announcement, in which Palla Pharma revealed it had ceased negotiations with the customer as it became evident a commercial agreement could not be reached.

    What now?

    The UK customer has been recapitalised by a new minority shareholder and Palla Pharma stated it will be seeking to have its current outstanding invoices for codeine phosphate supply in 2019 paid in full.

    While exploring the possible acquisition, Palla Pharma acquired 7 marketing authorisations from the customer, which accounted for approximately 70% of the customer’s revenue. The ownership of these authorisations has been transferred to Palla Pharma and manufacturing is in the process of being transferred to the company’s Norway site.

    Looking forward, Palla Pharma expects earnings in the second half of FY20 to be “significantly stronger” than the first half. This comes as the company finalises the transition of its sales profile from volume-based commodities to higher-value products. As a result, Palla Pharma anticipates a material uplift in full-year earnings.

    Palla Pharma is set to hold its AGM on Thursday, 28 May, where it will provide a more detailed trading update and outlook.

    In the meantime, be sure to check out the 5 ASX share ideas in the free report below.

    5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)

    Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.

    Given how far some of them have fallen, the upside potential could be enormous.

    The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.

    But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.

    See the 5 stocks

    More reading

    Motley Fool contributor Cathryn Goh owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company 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.

    The post Why this small-cap ASX pharmaceutical share rocketed 27% higher today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2LVkYyB

  • How much should you pay for earnings reliability from shares?

    Safe Shares

    Earnings reliability in this environment is very tricky with the coronavirus.

    Interest rates are so low it has made the earnings/interest certainty of bonds look very expensive. Would you rather invest in Vanguard Australian Government Bond Index ETF (ASX: VGB) for a tiny return or go for shares?

    I’d rather go for shares. But share prices are always going to be volatile, however earnings from some shares could be much more stable. But how much should investors pay for those earnings to be mostly stable?

    Some defensive shares like APA Group (ASX: APA) and Ausnet Services Ltd (ASX: AST) offer potentially reliable earnings. But they’re priced highly for that safety. 

    Shares like EML Payments Ltd (ASX: EML) and Pushpay Holdings Ltd (ASX: PPH) have the potential to generate strong returns over the future. But there are a broader range of potential outcomes for those riskier shares.

    But it’s up to you decide how much risk you’re willing to take with your investing. Can you stomach earnings volatility, or perhaps earnings unpredictability? Getting the best results in investing will require taking on more risk.

    Is there a way to reduce risk and still get good returns?

    It’s okay if you don’t like taking on as much risk. Diversification can help reduce the risk of an individual holding. It’s why investments like Vanguard Australian Shares Index ETF (ASX: VAS) are so popular. It takes out some of the guesswork so that it becomes more about your mindset to hold through tough periods.

    Obviously if you end up owning more than 30 individual shares yourself then you’re probably losing the advantage of investing in shares with your own portfolio. Is that smallest holding as good as your tenth (or better) idea? It might be a good idea to just focus on your best ideas. 

    You can also help your returns by going for shares that pay a good dividend, which will help smooth out your gains.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    More reading

    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Emerchants 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.

    The post How much should you pay for earnings reliability from shares? appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2ZA6OL4

  • Benjamin Netanyahu’s Corruption Charges, Explained

    Benjamin Netanyahu’s Corruption Charges, ExplainedIsrael is divided over the trial of Prime Minister Benjamin Netanyahu, who faces corruption charges including allegedly accepting gifts such as champagne, cigars and jewelry. WSJ’s Dov Lieber explains. Photo: Gali Tibbon/Associated Press

    from Yahoo Finance https://ift.tt/36ClZVT

  • Latest spending data could drive the ASX retail sector higher

    young excited woman holding shopping bags

    The latest credit and debit card usage data is giving investors a new reason to feel bullish on the ASX retail sector.

    Spending on cards issued by Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking GrpLtd (ASX: ANZ) have not only recovered from the COVID-19 blues but is ahead of what it was this time last year.

    Charge it to the card

    Card data from CBA is up 4% in the week to 22 May, while ANZ reported a 2.3% rise, according to the Australian Financial Review.

    However, some of the increase in card use may be due to the growing popularity of tap and pay to limit infection transmission.

    ANZ also pointed out that the spending surge may not mean actual growth in consumer spending but households dipping into their travel and holiday budgets to fund purchases.

    Better than expected result

    Regardless, the sharp rebound is an unexpected surprise as the shutdown of our economy to contain the coronavirus pandemic dealt a devastating blow to the consumer discretionary sector.

    ANZ economist Adelaide Timbrell told the AFR that ANZ-observed retail spending is still stronger than what the bank expected before the full reopening of our economy.

    Consumers in Western Australia are leading the spending charge with a 12% increase over the previous corresponding period (pcp), according to the ANZ data.

    On the flipside, Victoria is the worst state as card spending dropped 5.5% pcp. This is probably because the state is the slowest to relax its lockdown rules.

    Patchy results

    The latest data adds to signs that the retail sector is turning the corner. Consumer discretionary stocks have enjoyed a re-rating in their share prices that was fuelled by better than expected trading updates from retailers like City Chic Collective Ltd (ASX: CCX), Baby Bunting Group Ltd (ASX: BBN) and JB Hi-Fi Limited (ASX: JBH).

    But not all consumer facing stocks are benefiting from the spending recovery. Travel and entertainment spending have collapsed due to the coronavirus.

    This means we will have to wait a while before Sydney Airport Holdings Pty Ltd (ASX: SYD) and Flight Centre Travel Group Ltd (ASX: FLT) enjoy a rebound in revenue.

    Also, retailers who cater to tourists and overseas students won’t be feeling the love from the latest card data.

    International travel came to a near complete halt amid the outbreak and will be among the last sectors to recover from the COVID-19 fallout.

    NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

    Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

    Another is a diversified conglomerate trading over 40% off it’s high, all while offering a fully franked dividend yield over 3%…

    Plus 3 more cheap bets that could position you to profit over the next 12 months!

    See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

    CLICK HERE FOR YOUR FREE REPORT!

    More reading

    Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited and Commonwealth Bank of Australia. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

    The post Latest spending data could drive the ASX retail sector higher appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2yBnTta