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Intel Snaps Up Killer Gaming Cards With Savvy Rivet Deal
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Cisco’s Results Disappoint, Revealing a Challenging April
High-tech stalwart Cisco Systems (CSCO) was one of the first major companies to report results for the fiscal quarter that ended in April. The results posted Wednesday afternoon are more reflective of the impact of Covid-19 than those in other recent earnings calls which only reflected results through March. And the results were grim: Cisco’s revenue for its fiscal third quarter fell 8% year-over-year to about $12 billion, its worst decline in six years. And yet, its per-share adjusted earnings of 79 cents on revenue of $11.98B easily beat analysts’ bleak target of 71 cents. The service and security segments managed modest revenue growth in the quarter. And of course, usage of WebEx videoconferencing, one of Zoom’s (ZM) primary competitors, grew strongly. Cisco’s shares rose 2% following the results.Cisco entered the pandemic from a position of relative weakness. The company has been citing a “broad based slowdown” affecting results for the last couple of quarters, and the pandemic has worsened conditions considerably for corporate tech. Market research firm Gartner revised its global IT spending forecast for the full year, projecting negative 8% growth, against a pre-Coronavirus forecast that called for a 3.4% rise.Cisco said it’s expecting 72 cents to 74 cents in adjusted earnings per share and a 8.5% to 11.5% decline in revenue for the fiscal fourth quarter. In contrast to Cisco, most companies have declined to issue new guidance, with the exception of businesses that have benefited from the pandemic or subscription-based software companies that already have booked their annual revenue. Analysts are moderately bullish on Cisco, with 12 Buys and 10 Hold recommendations within the last 3 months. The average analyst price target for Cisco is $47, representing upside of 4.5%. (See Cisco stock analysis on TipRanks). Related News: Microsoft Buys Softomotive to Boost Its Robotic Automation Offerings Roku Under Unvestigation By ITC for Universal Electronics Patent Infringement IQIYI Sinks 4% As Online Ad-Revenue Falls Sharply More recent articles from Smarter Analyst: * Google Cloud Wins Cyber Security Contract With U.S. Defense Department * Aurora Cannabis Jumps 30% in After-Market On All-Stock $40 Million Purchase of Reliva * Boston Scientific Sinks on $1.5B Capital Raise Announcement * Gilead and Galapagos Score Positive Topline Results For Ulcerative Colitis Trial
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ASX 200 drops 0.4%, Chinese threat to Australian iron
The S&P/ASX 200 Index (ASX: XJO) dropped 0.4% today after investors realised there was a potential threat to Australian iron ore miners from China.
Potential problems for the Australian iron ore sector
According to reporting by the Australian Financial Review, China is changing the supervising rules for inspecting iron ore.
The worry is that China could cause major disruptions to Australia’s iron ore exports. It could mean Australian iron ore gets checked but Brazilian imports don’t have the same checks. That could be bad for ASX 200 miners like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).
But BHP isn’t worried about it and actually thinks it could lead to a quicker process. Fortescue also confirmed it was part of a process that has been in the works for years.
Plenty of people are linking Australia’s support for a coronavirus inquiry to a potential backlash by China. We have already seen the Asian superpower put tariffs onto Australian barley.
Service Stream Limited (ASX: SSM) share price drops 6%
The company warned there are negative impacts. Those impacts largely relate to delivering safe field-based operations. Also, some clients are temporarily pausing some work programs and some individual minor projects have been delayed.
The company is now expecting earnings before interest, tax, depreciation and amortisation (EBITDA) from operations to be $108 million. It would still be a record operating result for the company.
Service Stream said its balance sheet, cashflow and liquidity remains “very strong”. Management still expect the company to pay a dividend, unlike some other ASX 200 shares.
Afterpay Ltd (ASX: APT) keeps growing in the US
Afterpay said that Afterpay US has now reached 5 million active customers.
In reaction to this news the Afterpay share price rose by 2.6% to finish the day at $44. But at one point the Afterpay share price went up to $45. Today saw a new all-time high for the ASX 200 share.
However, investors also learned that global ecommerce giant Shopify is planning to launch a buy now, pay later service for customers.
Aristocrat Leisure Limited (ASX: ALL) releases its result
The ASX 200 gambling business announced its half-year result today.
Operating revenue rose by 7% to $2.25 billion and normalised net profit fell 14.2% to $305.9 million. However, reported net profit rose 277.2% to $1.3 billion which included the recognition of a $1 billion deferred tax asset.
But no interim dividend was declared so that liquidity remains as strong as possible.
5 cheap stocks that could be the biggest winners of the stock market crash
Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.
Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.
More reading
- Why the share price of this top dividend share just sank 6%
- Is China about to blow up the dividends of BHP, Rio and Fortescue?
- 5 dark horse ASX shares that have tripled in the last 2 months
- A global tech giant wants to challenge Afterpay
- These ASX payments shares could be long term market beaters
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Service Stream 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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If you invested $10,000 in the Kogan IPO, this is how much you’d have now
I’ve been looking at IPOs recently to see how you would have fared if you had invested in them.
One of the most successful has been the CSL Limited (ASX: CSL). As I revealed here, a $10,000 investment in the biotherapeutics company’s IPO would have left you very wealthy.
A more recent IPO was undertaken by ecommerce company Kogan.com Ltd (ASX: KGN). Let’s have a look and see how successful investing in this would have been.
The Kogan IPO.
Kogan listed on the Australian share market just under four years ago on 30 June 2016. The company’s shares were listed at $1.80 per share, giving it a market capitalisation of $168 million.
This means that if you invested $10,000 into its IPO, you would have ended up with approximately 5,556 shares.
At that point Kogan was generating sales of $200 million and was targeting an increase to $240 million in FY 2017. Fast-forward to today and Kogan is now generating more than both these in just one half. In the first half of FY 2020 the company delivered gross sales of $322.9 million.
And given its strong performance in the third quarter and in April, it looks set to smash records and deliver bumper sales growth this year.
Kogan share price hits a record high.
Unsurprisingly, this strong performance has been reflected in its share price. Earlier today’s Kogan’s shares stormed to a record high of $9.56.
When its shares hit that level, it meant they had gained an impressive 431% since their IPO in June 2016.
This means those 5,556 shares you would have picked up at the IPO would have a market value of ~$53,515. I think that’s an excellent return in such a short space of time.
And let’s not forget that the Kogan story is only really starting. Given the rise of online shopping and the growing popularity of its offering, I suspect there could be more strong returns to come over the next decade.
In light of this, I wouldn’t be cashing in my shares any time soon if I invested in the IPO.
Missed out on these gains? Then don’t miss out on these dirt cheap shares before they rebound…
5 cheap stocks that could be the biggest winners of the stock market crash
Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.
Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.
More reading
- 3 mid cap ASX growth shares to buy for monster returns
- 1 ASX growth company I’d buy with $2,000
- 3 ASX retail shares to own for the next 20 years
- $2,500 invested in these 3 ASX shares could make you a fortune in 10 years
- 2 millionaire-maker ASX internet growth shares
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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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Why the share price of this top dividend share just sank 6%
The share price of Service Stream Limited (ASX: SSM) dropped 6% after giving an update to the market.
Service Stream said that it’s essential network service provider, demand for its services have generally remained strong throughout the coronavirus crisis. However, the company warned there are negative impacts. Those impacts largely relate to delivering safe field-based operations. Also, some clients are temporarily pausing some work programs and some individual minor projects have been delayed.
The company is now expecting earnings before interest, tax, depreciation and amortisation (EBITDA) from operations to be $108 million. It would still be a record operating result for the company. This estimate was able to be done after the conclusion of its April numbers. It also has the benefit of a clearer perspective on the likely impacts of work volumes to 30 June 2020.
Service Stream said its balance sheet, cashflow and liquidity remains “very strong”.
What about the Service Stream dividend?
Service Stream did specifically address dividends. The company said, initially referring to its financial strength: “Not only has this underpinned the Group’s ability to effectively deal to COVID-19 headwinds, but it provides the board with confidence as to the Group’s continuing ability to maintain its commitment to dividends to secure expansion opportunities across the utilities and telecommunications markets as they present.”
Is the Service Stream share price a buy?
Service Stream managing director Leigh Mackender commented: “Whilst it is unfortunate that some clients have had to temporarily adjust or delay aspects of their work programs, Service Stream continues to be in a strong position, with a healthy contracted pipeline of ongoing work across a blue chip client base.
“Whilst it is likely that COVID-19 impacts will continue to be felt into at least the early part of FY21, we will be in a better position to discuss the Group’s outlook following the release of our FY20 results.”
The Service Stream share price is lower than it was in early February 2020, but it’s only back to where it was a week ago. I still believe Service Stream is a quality long-term buy with a solid dividend (which was mentioned today). I’d be happy to buy shares today at the lower share price.
But Service Stream isn’t the only share worth buying out there, there are other opportunities you should look into.
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading 40% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a <strong>significant discount</strong> to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
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But you will have to hurry because the cheap share prices on offer today might not last for long.
More reading
- ASX 200 drops 0.4%, Chinese threat to Australian iron
- 3 top ASX 200 shares every investor should buy
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Service Stream 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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AstraZeneca gets first supply deals for COVID vaccine, eyes late stage trials
There are currently no approved treatments or vaccines for COVID-19, the disease caused by the new coronavirus, with governments, drugmakers and researchers working on around 100 vaccine programs. AstraZeneca also said it had received more than $1 billion from the U.S. Biomedical Advanced Research and Development Authority for development, production and delivery of the potential vaccine. It said results from an early stage clinical trail in southern England were expected shortly and, if positive, would lead to late stage trials in a number of countries.
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Samsung Takes Another Step in $116 Billion Plan to Take on TSMC
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Stock Futures Slip With Worsening U.S.-China Rift: Markets Wrap
(Bloomberg) — U.S. and European futures retreated and the dollar advanced with Treasuries as deteriorating Sino-American ties cast a cloud over the recent rally in risk assets.Asian shares also dipped, in thin trading Thursday. China’s offshore yuan held steady despite the greenback’s gains, on the eve of the biggest Chinese political gathering of the year. The U.S. Senate passed a bill that could bar some Chinese companies from listing on American exchanges, while President Donald Trump tweeted criticism of China’s leadership. Elsewhere, crude oil saw modest gains.Investors have been whipsawed by conflicting news regarding a possible vaccine for the virus, and continued to mull efforts from many governments around the world to ease lockdowns. U.S. central bankers saw the pandemic posing a severe economic threat and were also concerned by the risks to financial stability, minutes of the April 28-29 Federal Open Market Committee meeting showed.Meanwhile, the Senate overwhelmingly approved legislation Wednesday that could lead to Chinese companies such as Alibaba Group Holding Ltd. and Baidu Inc. being barred from listing on U.S. stock exchanges amid increasingly tense relations between the world’s two largest economies.“Markets may be pricing in far too much complacency as the U.S.-China ‘phase one’ trade deal could be at risk,” said Stephen Innes, chief global market strategist at AxiCorp. “The pandemic and resulting acute economic downturn have made China’s trade commitment to the U.S. much more challenging to fulfill.”These are the main moves in markets:StocksFutures on the S&P 500 dropped 0.6% as of 7:08 a.m. in London. The gauge rose 1.7% on Wednesday.Euro Stoxx 50 futures retreated 1.1%.MSCI Asia Pacific Index fell 0.3%.CurrenciesThe yen fell 0.2% to 107.71 per dollar.The offshore yuan was little changed at 7.1137 per dollar.The euro bought $1.0961, down 0.2%.The Bloomberg Dollar Spot Index rose 0.3%.The pound was down 0.4% at $1.2195.BondsThe yield on 10-year Treasuries slid two basis points to 0.66%.Australian 10-year yields dipped three basis points to 0.92%.CommoditiesWest Texas Intermediate crude rose 2.8% to $34.40 barrel.Gold was at $1,738 an ounce, down 0.6%.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.
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ASX retail stocks facing new billion-dollar earnings scare during COVID-19 recovery
The re-rating of the ASX consumer discretionary sector is under threat from a new risk that could punch a big hole in their bottom line.
Retail stocks have been stealing the limelight as Australia emerges from the lockdown to contain the COVID-19 pandemic.
But yesterday’s Federal Court ruling on casual leave entitlements could cost employers billions of dollars if applied across the economy.
ASX stocks in the firing line
This risk is yet to be reflected in the share prices of leading ASX retailers with the sector being a big employer of causal staff.
The Premier Investments Limited (ASX: PMV) share price surged 18% over the past month, while the Breville Group Ltd (ASX: BRG) share price and JB Hi-Fi Limited (ASX: JBH) share price rallied 16% and 12%, respectively.
In contrast, the S&P/ASX 200 Index (Index:^AXJO) is trailing behind with a modest 4% gain over the same period.
Bankruptcy warning
The Federal Court decision, which upheld an earlier lower court ruling, was alarming enough for the National Retail Association (NRA) to issue a blunt warning to the Morrison government.
“Retail has one of the highest proportion of casual workers of any sector,” said NRA chief executive Dominique Lamb.
“If businesses are forced to back-pay leave entitlements to casuals who have worked regular shifts it could spell doom for many businesses and the workers they employ.”
Details of the court case
The court case relates to a casual employee hired by labour hire firm WorkPac to work at two Queensland mines owned by Glencore.
The casual staff, which isn’t entitled to paid leave and other entitlements reserved for permanent employees, was paid a 25% loading in addition to his wage.
But the courts found that the casual should be entitled to all benefits despite being paid a loading because he had “regular, certain, continuing, constant and predictable” work, reported the Australian Broadcasting Corporation.
The NRA is worried that the ruling will force all businesses who employ causal staff to be back-paid billions in entitlements.
Other ASX stocks that could be impacted
It isn’t only retailers that could suffer. There could be ramifications for fast food businesses like Domino’s Pizza Enterprises Ltd. (ASX: DMP) and Collins Foods Ltd (ASX: CKF) too.
Our supermarket giants Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) will be nervously watching this issue also.
Is it time to panic?
But it’s too early to sound the death knell for consumer-facing stocks. Not all casuals will qualify even if the decision is upheld as their work schedules and obligations have to be similar to permanent staff.
Further, there is growing pressure on Industrial Relations Minister Christian Porter to enact a new legislation solution to protect businesses.
There is also talk of another appeal from Workpac, which could set aside the Federal Court’s finding. At the very least, that could delay back payments to casuals for a few more years.
What this means is that it’s too early to price in this risks into ASX share prices, although investors better stay on their toes given what’s at stake.
Watch this space fellow Fools!
One “All In” ASX Buy Alert, that could be one of our greatest discoveries
Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.
This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.
What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.
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More reading
- 2 ASX 200 dividend shares to buy for income in 2021
- This ASX 200 stock has rocketed 63% in 2 months. Is the Ansell share price still a buy?
- 3 strong ASX dividend shares with fully franked yields
- 5 dark horse ASX shares that have tripled in the last 2 months
- The latest ASX stocks hit by broker downgrades today
Motley Fool contributor Brendon Lau owns shares of Breville Group Ltd. Connect with me on Twitter @brenlau.
The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Collins Foods Limited and Domino’s Pizza Enterprises 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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2 ASX 200 dividend shares to buy for income in 2021
It is looking as though 2020 will be a difficult year for income investors.
While this is understandably very disappointing, I’m confident that 2021 will be very different.
This could make it worth looking beyond this year and buying the dividend shares that could provide generous yields in 2021.
Two to consider are listed below:
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank looks to be the best placed bank to pay another dividend in FY 2020. However, given the current trading conditions, it wouldn’t be overly surprising if the bank chose not to pay one. But I wouldn’t let that put you off investing. I expect trading conditions to start to improve once the crisis passes. And although it may be a couple of years until the bank is back to its best, I believe it will still be able to pay shareholders attractive dividends before then. In FY 2021 I estimate that Commonwealth Bank will pay a dividend in the region of ~$3.70 per share. This represents a fully franked 6.25% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
With its passenger traffic currently down ~98% because of the pandemic, I think Sydney Airport shareholders will be lucky if they get any dividends this year. However, travel markets will rebound and traffic will start to flow through its airports again in the not so distant future. I believe this leaves the airport operator well-placed to pay a decent dividend in FY 2021. At present I estimate that it will pay ~27 cents per share to shareholders. This equates to a generous forward 4.8% yield. After which, in FY 2022 I expect a recovery in international tourism to allow Sydney Airport to lift its dividend to around ~37 cents per share. This will be a very attractive yield of 6.6% if it proves accurate.
If you’re looking for more dividends, then I would also be buying the highly rated dividend share recommended below…
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.
More reading
- ASX retail stocks facing new billion-dollar earnings scare during COVID-19 recovery
- This ASX 200 stock has rocketed 63% in 2 months. Is the Ansell share price still a buy?
- 5 dark horse ASX shares that have tripled in the last 2 months
- The latest ASX stocks hit by broker downgrades today
- Top brokers name 3 ASX 200 shares to sell today
Motley Fool contributor James Mickleboro 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.
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