Category: Stock Market

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.55% to 8,653.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to tumble

It looks set to be a difficult session for Australian investors on Thursday after a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 0.8% lower this morning. In the United States, the Dow Jones was down 1.9%, the S&P 500 fell 1.6%, and the Nasdaq sank 2%.

Buy WiseTech shares

WiseTech Global Ltd (ASX: WTC) shares are good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the logistics solutions technology company’s shares with a trimmed price target of $71.75 (from $78.75). It said: “We have reduced the multiples we apply in our PE ratio and EV/EBITDA valuations from 55x and 30x to 50x and 27.5x and also increased the WACC we apply in the DCF from 8.6% to 8.8% given the lack of apparent progress in shifting large customers to CVP and the resulting downgrades in our forecasts. These changes combined with the downgrades have resulted in a 9% decrease in our TP to $71.75 which is still, however, a significant premium to the share price so we maintain our BUY recommendation. That is, we believe the lack of progress is already reflected in the share price as well as the risk of a revenue result at the low end of guidance.”

Oil prices jump

It could be a good session for ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3.9% to US$91.67 a barrel and the Brent crude oil price is up 3.4% to US$94.55 a barrel. This was driven by concerns over an escalation in US-Iran tensions.

Buy Develop Global shares

The Develop Global Ltd (ASX: DVP) share price is undervalued according to Bell Potter. In response to final investment decisions for its Sulphur Springs and Pioneer Dome mining developments, Bell Potter has retained its buy rating and $7.10 price target on the miner’s shares. It said: “DVP’s ability to rapidly bring Pioneer Dome to market presents an opportunity to capitalise on current robust lithium prices, with strong resulting free cash flows to support its balance sheet at a time of heightened capital spend at Sulphur Springs.”

Gold price sinks

It could be a tough session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price sank overnight. According to CNBC, the gold futures price is down 4.5% to US$4,092.2 an ounce. This reflects fading Middle East peace hopes and interest rate hike concerns.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria takeover bid extended
• Are these the 3 best value ASX 200 shares right now?
• Here’s what brokers tip for WiseTech shares over the next 12 months
• Here are the top 10 ASX 200 shares today
• Northern Star shares tumble as takeover hopes fade

Motley Fool contributor James Mickleboro has positions in WiseTech Global and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) has long been lauded as a shining example of homegrown Australian ingenuity succeeding on a world stage, and as such, has been a mainstay in many investors’ portfolios.

The narrative has unfortunately come unstuck over the past year or two, with difficulty extracting value from takeovers, operational problems, and a share price that is currently down about 59% over the past year.

CSL’s dirty laundry gets an airing

Interim Chief Executive Officer Gordon Naylor gave an update on the business in May after conducting a 90-day review, and the share price drop of about 20% on the day – the biggest ever for CSL – gives some idea of how negative that update was.

Mr Naylor said at the time that FY26 revenue would be about US$15.2 billion, with NPATA of about US$3.1 billion.

This compares with the FY25 results of US$15.6 billion in revenue and US$3.3 billion in profit.

CSL also said it would recognise about US$5 billion in non-cash impairments across FY26 and FY27 in addition to impairments announced at its first-half results.

Mr Naylor at the time said he was confident in the future of the business, adding:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance. CSL’s culture and people continue to be first class, the industry is stable and growing and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.

Mr Naylor backed this up by buying $107,800 worth of CSL shares in late May.

Broker is positive on the future for CSL shares

UBS, in a research note titled “Could the worst be past?”, makes the case that FY26 will be a low point for profitability for the company.

As they said:

We see limited risk to FY26 forecasts following the May update, with FY27 set to benefit from an easier comp after ~$300m of immunoglobulin inventory was withdrawn from the US market plus a ~$300m boost from transformation initiative savings. Despite continued competition in immunoglobulin and Chinese albumin, and a modest Behring margin recovery, we expect CSL to deliver low-single-digit underlying profit growth in FY27, consistent with our forecasts and consensus estimates. With the stock trading at a meaningful discount to the market PE and our revised $158 price target, we retain a Buy rating.

CSL shares are changing hands for $100.17 at the time of writing. The company is valued at $47.63 billion.

The post How much does UBS think CSL will bounce back? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy CSL shares while sentiment is weak
• Leading brokers name 3 ASX shares to buy today
• Has the CSL share price finally bottomed out?
• 3 cheap ASX shares I’d buy before sentiment turns
• Why Chalice Mining, CSL, Megaport, and Pro Medicus shares are racing higher

Motley Fool contributor Cameron England has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the S&P/ASX 200 Index (ASX: XJO) rebounded on Wednesday, it was a rough day for three ASX shares that fell roughly 9% each. 

During Wednesday’s session: 

• Weebit Nano Ltd (ASX: WBT) fell over 9%
• Ora Banda Mining Ltd (ASX: OBM) dropped almost 10%
• 4DMedical Ltd (ASX: 4DX) shed 9%. 

Single day falls of this magnitude can be the moment prospective investors wait for to enter into a company. 

Here is what prompted the sell-off yesterday, and what experts are tipping for these ASX shares moving forward. 

Tough week continues for Weebit Nano

Weebit Nano develops and commercialises silicon oxide and Resistive Random-Access Memory technology. Its products are used in various applications, such as in computers, consumer electronics, smartphones, tablets, enterprise storage, automotive infotainment and navigation systems, healthcare, wearables and IOT.

Its share price has tumbled for three consecutive days and now sits 13% lower than last Friday’s close. 

This is potentially following the same trend seen on Wall street last week.

Despite the recent sell-off, these ASX shares remain 250% higher than this time last year. 

It seems the recent share price weakness could be a buy the dip opportunity for investors. 

Weebit shares closed yesterday at $6.55 each. 

This is significantly below recent targets from Pitt Street. 

The Pitt Street team values Weebit Nano at $10.20 per share, 55% above current levels. 

Ora Banda Mining remains a value play 

Ora Banda Mining is a gold exploration company.

Despite yesterday’s 10% fall, there was no price sensitive news out of the miner on Wednesday. 

Its share price remains largely flat in 2026 compared to the start of the year, however has consistently attracted optimism from brokers. 

Canaccord Genuity reiterated its buy rating recently with a $2.25 target this week.

That indicates these ASX shares could more than double in the next 12 months. 

It closed yesterday at $1.09 per share. 

Can 4DMedical keep soaring?

Despite falling in 2026, 4DMedical shares have risen more than 1,000% in the last 12 months. 

4DMedical is a medical technology company working in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

Despite some share price softness this year, experts believe it can keep charging ahead long term. 

MPC Markets’ Mark Gardner forecasts more outperformance to come (courtesy of The Bull).

Gardner reinforced that the company has a stronger funding position after its recent capital raise and a clearer commercial pathway than in prior years.

Elsewhere, Bell Potter has a price target of $6.00 on these ASX shares. 

This indicates a potential rise of 64% from current levels. 

The post After dropping 9% yesterday, should you buy the dip on these ASX shares? appeared first on The Motley Fool Australia.

More reading

• Up 1,277% in a year, why 4DMedical shares are tipped for more outsized gains
• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today
• Why 4DMedical, Eagers Automotive, IDP Education, and oOh!Media shares are charging higher today
• Buy, hold, sell: 4DMedical, Cochlear, Westpac shares
• Top brokers name 3 ASX shares to buy next week

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

Global investing can feel hard because there are so many choices.

Investors can choose countries, sectors, currencies, themes, and individual companies. But I think a simple exchange-traded fund (ETF) approach can often work well.

The goal is not necessarily to own everything. It is to gain exposure to strong markets and businesses without needing to make every stock-picking decision alone.

Three ASX ETFs I would consider for global growth are named in this article.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The Vanguard S&P 500 US Shares Index ETF is one of the easiest and cleanest ways to invest in the US share market.

The fund gives exposure to 500 of the largest listed companies in the United States.

I like that because the US market still has unusual depth in global leaders. Many of its biggest companies generate revenue all over the world, with exposure to software, healthcare, consumer brands, payments, industrials, digital advertising, cloud computing, and communications.

The V500 ETF is also low-cost, with a management fee of 0.07% per annum. I think that makes it a simple option for investors who want broad US exposure without paying much.

There will be volatility. US shares can trade on high expectations, and currency movements can affect Australian investors. But over long periods, I think the S&P 500 remains one of the most compelling markets to own.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF takes a more selective approach. It focuses on US companies with competitive advantages that are trading at attractive prices.

I like that because it brings valuation into the discussion. A great company can still be a disappointing investment if the price is too high. The MOAT ETF tries to avoid simply buying popular names at any price.

The idea has a Warren Buffett-style feel. Look for businesses with strong advantages, but stay disciplined on valuation.

That does not guarantee smooth returns, and the fund will go through periods where its style is out of favour. But I think the process is attractive for investors who want quality without chasing whatever is hottest in the market.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF gives investors a different growth angle.

The VAE ETF provides exposure to Asian markets outside Japan, including major economies with large populations, rising consumption, manufacturing strength, technology platforms, financial services, and semiconductor exposure.

This area can be volatile. Politics, regulation, currency moves, and investor sentiment can all affect returns.

But I think Asia remains too important to ignore. The region is home to large consumer markets and major companies that are not captured by owning only Australian or US shares. For investors with patience, I think the long-term growth potential is attractive.

Foolish Takeaway

I think global growth investing works best when it is kept simple enough to stick with.

There will always be a reason to wait. One market will look expensive, another will look uncertain, and currencies will move around.

But good ETFs can help investors get started without needing perfect timing or perfect knowledge.

For me, the key is owning exposure that can remain useful for years. These ETFs offer a practical way to put money to work beyond the local market and benefit from long-term global growth.

The post 3 ASX ETFs I’d buy if I wanted easy global investing appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX ETFs for beginners to buy now
• Where to invest $5,000 in Vanguard ETFs in June
• Why I’d buy these Vanguard ETFs with $3,000 in June
• ASX shares to buy now: How I’d invest a $1,000 lump sum
• 3 ASX ETFs I’d buy to build a portfolio from scratch

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Short sellers have never been more bearish on Australia’s big four banks than they are right now.

Hedge funds have amassed a record short position nearing $11 billion against the big four banks. This marks the largest dollar value ever recorded for bets against the sector.

The number of shares lent to speculators has reached levels not seen since 2018, following the Hayne Royal Commission.

For the millions of Australians who hold shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), or ANZ Group Holdings Ltd (ASX: ANZ), it demands a clear answer to one question: are the short sellers right?

Who is shorting ASX bank shares and why

The first thing to understand is who is behind this record short position.

Unlike previous bear raids primarily driven by offshore funds betting against Australian property, this current wave is being led by domestic long-short managers. These investors are convinced the banks’ profits and valuations are vulnerable to multiple domestic challenges.

The big four shed A$50 billion in combined market cap in May, after Commonwealth Bank suffered its largest single-day plunge on record.

The federal budget housing changes further spooked markets already nervous about rising provisions and stubborn inflation.

The short sellers were positioned for exactly that kind of event.

The bear case explained

Morgan Stanley believes operating conditions for Australia’s major banks have “deteriorated rapidly”. The broker pointing to three RBA rate hikes, proposed property tax changes, and the global energy shock as pressures landing simultaneously.

Morgan Stanley is now expecting consensus earnings per share forecasts to fall after a soft reporting season.

How? The bear case has four pillars.

First, three RBA rate hikes in 2026 are increasing mortgage stress across the banks’ enormous combined home loan portfolios.

Second, the federal budget’s negative gearing changes are expected to slow investor credit growth by as much as 25%, according to Jarden.

Third, net interest margins are under pressure from intense deposit competition.

Fourth, and most importantly, the big four bank shares are not cheap.

CBA trades at approximately 26 times forward earnings, a valuation that leaves virtually no margin for error if any of these headwinds intensify.

The bull case still exists for ASX bank shares

Shorting Australian banks has historically been described as a widow maker trade.

The big four remain extraordinarily profitable businesses with irreplaceable market positions, government-backed deposit guarantees, and pricing power in a rising rate environment.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, while paying a fully franked interim dividend of $2.35 per share.

Furthermore, the RBA meets in just five days on 16 June, with markets currently pricing a hold at near-certainty.

A definitive pause signal from the RBA would remove the single biggest near-term headwind weighing on bank shares and could trigger a sharp reversal of the short positions.

ANZ is currently the most favoured among analysts, with six of 16 analysts carrying buy or strong buy ratings and some seeing potential upside of 13% from current levels.

What the record short position actually means

A record short position does not necessarily mean ASX bank shares will fall.

It means a large number of professional investors believe they will fall. And professional investors are frequently wrong.

What the record short position does tell us is that the risk-reward for buying bank shares at current prices is less attractive than at almost any point in the past decade.

The valuations, particularly at CBA, reflect little of that risk. And the smart money is positioned for disappointment.

Foolish takeaway

Ordinary investors do not need to panic about the record short position.

The big four banks are not going to collapse and their dividends are not under immediate threat.

What the short sellers are saying is that the share prices, particularly CBA, have run ahead of the earnings reality.

The RBA’s decision on 16 June will be the next significant test of that thesis.

If the RBA holds and signals a pause, the short sellers will feel real pain. If it hikes or signals further hikes ahead, they may have called this one correctly.

The post Hedge funds are shorting the big four bank shares. Should investors be worried? appeared first on The Motley Fool Australia.

More reading

• What are the big 4 banks worth as the housing market falters?
• Sell alert! Why this expert is calling time on Westpac and CBA shares
• Top brokers name 3 ASX shares to buy now
• Payday superannuation starting 1 July could change how every Australian thinks about their retirement
• The next RBA interest rates move will be down, NAB says

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

Research is emerging that suggests value investing could be back in vogue after a tough year for the ASX 200. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is essentially flat in 2026. 

This is far below the historical average annual return of between 7% and 9%. 

However with inflation persisting and value outperforming, it could be time to scoop up quality companies at a relative discount. 

This is the core philosophy of value investing.

It could be a rare opportunity to gain exposure to blue-chip companies at a low price. 

Here are three ASX 200 stocks that could be buy-low options for investors with long term upside. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have fallen close to the furthest of any ASX 200 company in the last 12 months. 

It has been weighed down by broader tech sector negative sentiment. 

However the fundamentals still remain strong, and the share price appears to have fallen beyond a fair price. 

At the time of writing, WiseTech shares are trading for roughly $38 each. 

As my colleague Bronwyn Allen reported recently, the Market Matters team sees 30% to 40% upside over the next 12 months for Wisetech shares.

Elsewhere, 15 analysts offering a one year forecast via TradingView have an average 12 month price target of $71.70 on these ASX 200 shares. 

This indicates an 88% upside from current levels. 

Seek Ltd (ASX: SEK)

Seek is an online classifieds platform which has also suffered from the Aussie tech sell-off this year. 

This ASX 200 stock is down 42% year to date. 

However it now presents as another value option. 

The Motley Fool’s Mark Verhoeven covered last week the tailwinds from increased job ads that could be set to benefit the ASX 200 company. 

Additionally, the analyst team at Jarden believes the shares are oversold and have a price target of $23.25 on Seek. 

From yesterday’s closing price of $13.49, this indicates a 72% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

Another value option right now is Guzman Y Gomez. 

The ASX 200 company (for now) has fallen significantly over the last 12 months, but is showing signs of a rebound after refocussing on the domestic market. 

At the time of writing, shares are trading hands for approximately $19.30 each. 

Amongst brokers, targets are ranging from $24 to $29.40 from Morgans.

These targets indicate an upside potential between 24% and 50%. 

This kind of upside can be hard to come buy for ASX 200 stocks. 

The post Are these the 3 best value ASX 200 shares right now? appeared first on The Motley Fool Australia.

More reading

• Here’s what brokers tip for WiseTech shares over the next 12 months
• Why might Pro Medicus shares soon be under pressure?
• Morgans rates these ASX shares as buys with up to 55% upside
• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

So far, 2026 has been a down year for the S&P/ASX 200 Index (ASX: XJO). 

Bank shares, consumer discretionary and health care have all struggled mightily for the year to date. 

Because of this, many investors might have seen their portfolio dip, and experienced some volatility this year. 

While it’s no reason to panic, some investors might be weighing up adding some allocation towards small-cap or growth shares to provide some increased upside. 

The case for investing in small-cap stocks is simple: significant upside potential. 

Many of today’s largest companies began as relatively small and under-researched businesses. 

When a small-cap company succeeds, early investors can benefit from substantial share price gains.

It is also important for investors to understand that many small-cap shares rely heavily on funding, are yet to generate a profit, and can experience significant volatility on results and announcements. 

With that in mind, one small-cap worth monitoring is VEEM Ltd (ASX: VEE). 

Company overview

Veem is an Australian Defence manufacturer, designer and manufacturer of disruptive, high-technology marine propulsion and large gyrostabiliser (‘gyro’) systems for the global yacht, fast ferry and commercial workboat market.

For the to date, its share price has fallen 30%. 

On Monday, the company released a trading update.

It announced that it expects revenue for the financial year to be between $50m and $52m with EBITDA between $3.25m and $3.75m driven as previously advised by fulfilment of ASC orders received in late 2025 and the first quarter of 2026.

This will result in a significant increase in defence revenue in 2HFY26 compared to 1HFY26.

VEEM Managing Director Mark Miocevich said: 

We have noted FY26 will be a transition year and 2HFY26 has continued to lay the foundations for a stronger FY27. We are pleased with the progress we have made with the factory extension and imminent arrival of machinery which will facilitate this growth into the future.

Morgans weighs in on the ASX small-cap 

The team at Morgans increased its price target on this ASX small-cap following the trading update. 

The broker said after a challenging 1H26, the company has seen an improvement in 2H26 driven by higher Defence revenue from the fulfilment of ASC orders in hand alongside a recovery in propulsion sales. 

VEE has also completed construction of its ~1,000m2 factory extension, with the additional space to accommodate anticipated future growth in propulsion, defence, and engineering. Management expects FY26 revenue of $50-52m and EBITDA of $3.25-3.75m. Reflecting this guidance, we decrease FY26F revenue by 2% to $51.3m but increase EBITDA by 140% to $3.6m.

The broker has subsequently increased its price target to 85 cents per share (from 80 cents) and maintained a speculative buy rating. 

From yesterday’s closing price of 53 cents, this price target indicates more than 60% upside for the ASX small-cap. 

We believe VEE’s outlook remains positive with multiple growth opportunities across defence (eg, HII, Northrop Grumman, Hunter Class Frigate Program), propulsion (VEEM Extreme, Sharrow), and gyros (Mark III). While the timing of order flow can be uncertain and may drive near-term earnings volatility, the long-term earnings potential from these opportunities remains significant.

The post Meet the ASX small-cap tipped for 60%+ gains appeared first on The Motley Fool Australia.

More reading

• After dropping 9% yesterday, should you buy the dip on these ASX shares?
• 3 ASX ETFs I’d buy if I wanted easy global investing
• Hedge funds are shorting the big four bank shares. Should investors be worried?
• Are these the 3 best value ASX 200 shares right now?
• How to invest $12,500 for passive income in superannuation?

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

Superannuation could be one of the best ways to invest in ASX shares for passive income due to the lower tax rate.

I believe we should focus on the after-tax return for passive income. Therefore, it’s very attractive that superannuation has a lower tax rate than what it would be for a full-time working Australian with their individual tax rate.

Excitingly, for people in retirement, the tax rate in superannuation could be zero.

With that in mind, I believe the two ASX shares below are very effective options for $12,500 in superannuation.

Dexus Industria REIT (ASX: DXI)

Commercial property could be a compelling opportunity right now, with its high yields and significant discounts to underlying property value. After the Federal budget tax changes with residential property, commercial property could be even more attractive.

But instead of going out to buy and manage a portfolio of properties ourselves, we can invest in a high-quality real estate investment trust (REIT) to do all the work for us and ensure passive income stays truly passive. It’s good to enjoy our superannuation and retirement rather than being forced to become a property manager.

This ASX share invests in high-quality industrial warehouses located across major Australian cities, providing sustainable income and long-term capital growth prospects for investors.

Industrial properties have multiple tailwinds, including e-commerce growth and businesses’ commitments to strengthen their local supply chain capabilities.

It’s seeing strong rental growth, which helps support its distribution. In the FY26 half-year results, it reported like-for-like income growth of 7.4%, driven by rental escalations and strong re-leasing spreads (the new contract has higher rents for the property than the old contract).

It expects to pay a distribution per security of 16.6 cents in FY26, which translates into a distribution yield of 6.9%. Its net tangible assets (NTA) were $3.39 per security at 31 December 2025, implying a discount of close to 30%, which I believe is a very appealing valuation.

As an acknowledgement of how undervalued it is, the business is carrying out a share buyback, improving the underlying value of the remaining shares.

L1 Long Short Fund Ltd (ASX: LSF)

The other ASX share I want to highlight for superannuation investors is this listed investment company (LIC), managed by L1 Group Ltd (ASX: L1G).

LICs are very effective for passive income because they can pay reliable (and growing) dividends from profit reserves built from investment returns generated in prior financial years (and the current one).

L1 Long Short Fund invests in both ASX shares and global shares, with long-term investing strategies and short-selling (betting that share prices will fall). With that diverse investment universe, the fund can make positive returns in all economic conditions.

It hasn’t used tech shares to generate the great returns it has delivered – the five sectors that have delivered the biggest returns since 2014 are (in order) mining, industrials, communication services, utilities and financials.

Over the last five years, the LIC’s portfolio has delivered a net return of 17% per year, allowing it to fund a sizeable and growing dividend. Past performance is not a guarantee of future returns, of course.

I expect the next four quarterly dividends to be announced, amounting to a grossed-up dividend yield of 5.1% including franking credits at the time of writing, with ongoing strong dividend growth.

The post How to invest $12,500 for passive income in superannuation? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX dividend shares are great buys right now
• How much is needed in superannuation to target a $9,000 monthly passive income?
• 2 great ASX dividend shares I plan to buy in June
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 3 ASX financial shares to buy: experts

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Here’s a hot take: The upcoming IPO of SpaceX will, in all likelihood, burn most investors.

Before we get into this question, it’s important to note that this is just my personal view, and could well be proven wrong. But let’s go through what we know.

SpaceX is one of the many companies headed up by the controversial yet incredible Elon Musk. However, it is set to become only the second of Musk’s companies to hit the public markets in an initial public offering (IPO) very soon. Musk famously already helms the electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA), which listed back in 2010 and has made some investors enormously wealthy.

SpaceX IPO to make history

SpaceX is set to float on the American NASDAQ exchange later this week on 12 June. It is expected to float at US$135 a share, and at a market capitalisation of US$1.77 trillion. With a ‘T’.

That would immediately make it one of the largest IPOs in history, and make SpaceX one of the largest companies in the world right off the bat. It is to use the ticker code ‘SPCX’.

SpaceX is famous for its cutting-edge rocket and space exploration technology. However, Musk has also lumped his artificial intelligence platform xAI into the company, as well as the social media site formerly known as Twitter, and now known merely as X.

According to CNBC, SpaceX is aiming for retail investors to receive about 30% of the shares being sold in its IPO. That’s well above your typical float, which aims for 5-10%. Not just American retail investors either. Stock market participants all over the world are being invited to join this IPO. Our own CommSec platform has been offering retail investors on the ASX a shot at directly owning SpaceX shares after its float. Even my own beloved, yet usually-stock-market-agnostic, mother asked me about it last week.

As such, many Australians may have already signed up, hopeful that participating in this SpaceX IPO will make them wealthy.

I doubt that will happen.

Weighing the numbers against the hype

Why so serious? Well, there are a few red flags that I have noted that prompted this article.

Firstly, the conspicuous effort to include ordinary retail investors all over the world in this IPO could be construed as an effort to dial up the hype to 11. Musk is already a commanding figure in the investing world. Many loathe him, but many love him, perhaps thanks to his successes at Tesla. Many more may feel tempted to seemingly align their financial fortunes with those of Musk.

As the world’s richest person, the ads sell themselves.

However, even if you call me old-fashioned, I think a company’s numbers should speak louder than all else to attract IPO attention. Instead, it is Musk, his shiny company with the grand name, and his global army of spruikers that are attracting the attention.

If we actually dive into the numbers, there’s a different tale to be told.

CNBC reports that SpaceX “generated [US]$18.7 billion in revenue last year and recorded an operating loss of [US]$4.2 billion”. Yet we are being asked to invest in a company worth, according to its own estimates, almost US$2 trillion. For me, flags don’t get redder than that.

I’m sure SpaceX is an exciting company with a trailblazing path ahead of it. But at that valuation? I see far more risk than reward. IPOs make many people rich. But it is usually not the investors who buy the shares at IPO. Instead, the rewards go to the insiders selling their shares at IPO, and the brokers and bankers that underwrite the process. The investors on the other side may get what’s left, but, as I’ve written about before, are often just left holding the bag.

Foolish takeaway

I’m not saying SpaceX shares will plunge when they hit the market. Depending on the hype, there’s every chance they go ‘to the moon’. However, I think it is likely that once the hype dies down and the SpaceX IPO becomes old news, the shares will be less than US$135 each. As investing pioneer and Warren Buffett mentor Benjamin Graham once said: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine”.

I wouldn’t be surprised if investors ‘vote’ SpaceX shares higher when they hit the market. But I would be surprised if they weigh them afterwards and find they are truly worth a total of US$1.77 trillion.

I could be wrong, of course. No crystal balls here. But I wouldn’t touch this IPO with a ten-foot pole, and unless you know far more about SpaceX than I do, I would recommend an abundance of caution to all.

The post The SpaceX IPO will make lots of people rich. Just not you appeared first on The Motley Fool Australia.

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

WiseTech Global Ltd (ASX: WTC) shares had a small reprieve on Wednesday, with the stock ending slightly higher for the day. 

At the close of the ASX on Wednesday afternoon, the shares were 0.13% higher at $38.05 a piece. 

The increase is good news for investors but it barely dents the huge losses the beaten-down tech stock has suffered over the past year.

The shares are still down over 44% for the year-to-date and down 65% over the past 12 months after a tech-sector sell-off saw investors rotate to more stable assets.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.57% higher on Wednesday, and is now just 0.77% higher than 12 months ago. 

What do brokers expect next from WiseTech shares?

According to broker forecasts, the upside potential for WiseTech shares is huge over the next 12 months, with some tipping the stock to increase up to 214%.

Market Index data shows the majority brokers have a strong buy consensus on WiseTech shares over the next year. They tip a potential 93% upside to an average $73.89 target price, at the time of writing. 

Over at TradingView, the data shows something similar. Out of 15 analysts, 12 have a buy or strong buy rating on WiseTech shares. Another three have a hold rating. They tip a potential 85% upside to an average target price of $71.70. But some are much more bullish and are tipping the stock to jump as high as 214% to a maximum $119.39 target price, at the time of writing.

Why are the experts so bullish?

The team at Dolphin Partners Financial Services recently named the ASX tech stock as a buy. The broker said it thinks the shares are trading at a deep discount compared to broker valuations following significant share price weakness.

James Gerrish from Shaw and Partners recently said he thinks software stocks have now bottomed, and there are good buys to be had. He pointed to WiseTech shares and said his team sees between 30% and 40% upside over the next 12 months.

Bell Potter also has a buy rating on the shares and said it is eagerly awaiting the FY26 results in August. The broker added that, depending on the FY26 results, WiseTech’s FY27 forecast could even prove to be conservative and has the potential to drive renewed confidence and push up its share price.

Elsewhere, JP Morgan is a little more bearish on the shares. It downgraded its outlook on the stock last week. The broker said WiseTech Global is no longer the market’s biggest tech company after handing over the reins to Xero Ltd (ASX: XRO) last month. As a result, JP Morgan downgraded WiseTech shares to a hold rating with a $40 price target.

The post Here’s what brokers tip for WiseTech shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?
• 3 ASX stocks I’d buy during a sharemarket crash
• Why Xero shares could be the best tech pick on the ASX right now
• Forget SpaceX shares and buy these ASX tech stocks

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.