Stock Pick

Category: Stock Market

  • Beat falling rates with these strong ASX dividend shares

    According to the latest cash rate futures, the market is currently pricing in a 56% probability of a rate cut to zero next month.

    If this were to happen, I feel it would put a lot of pressure on the banks to cut interest rates. Which certainly would be another blow to income investors.

    But don’t worry because these ASX dividend shares could be a great way to beat falling rates:

    Fortescue Metals Group Limited (ASX: FMG)

    I think Fortescue could be a good option for income investors. Iron ore prices have been resilient during the pandemic, putting the miner in a strong position to deliver another strong result in FY 2020. And thanks to the strength of its balance sheet, I suspect Fortescue will be returning most of its free cash flow back to shareholders. I estimate that it will pay a dividend that will yield in the range of 6% to 8% in FY 2021. Though, this is dependent on iron ore prices remaining relatively robust over the next 12 months.

    Rural Funds Group (ASX: RFF)

    Another option for income investors to buy is Rural Funds. I think the agriculture-focused property group would be a great long term option due to its high quality property portfolio and their ultra long tenancy agreements. At the end of the first half its weighted average lease expiry stood at 11.5 years. In FY 2021 the company intends to lift its distribution to 11.28 cents per share. This works out to be a forward 5.9% distribution yield.

    Wesfarmers Ltd (ASX: WES)

    A final dividend share to buy is Wesfarmers. I think the conglomerate is a great option for income investors due to the quality and positive outlook for the majority of its businesses. Another positive is that Wesfarmers is sitting on a big pile of cash. I suspect these funds will be used to make earnings accretive acquisitions in the next 12 months to bolster its growth. At present I estimate that its shares offer a fully franked forward 3.9% dividend yield.

    And here is a fourth dividend share which could be a perfect one to own in the current environment.

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

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

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    *Returns as of 7/4/20

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

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  • These are the 10 most shorted ASX shares

    Short Selling

    At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

    This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Myer Holdings Ltd (ASX: MYR) continues to be the most shorted share on the ASX with short interest rising to 14.3%. Short sellers appear concerned that the pandemic has disrupted its turnaround plans.  
    • Speedcast International Ltd (ASX: SDA) has short interest of 13.2%, which is flat week on week. The communications satellite technology provider’s shares have been suspended for some time. It now plans to declare itself bankrupt after failing to recapitalise.
    • Galaxy Resources Limited (ASX: GXY) has seen its short interest fall week on week to 12.9%. Investors may believe the lithium miner’s shares have bottomed now after falling sharply over the last 12 months due to falling lithium prices.
    • Orocobre Limited (ASX: ORE) has seen its short interest drop lower again to 11.5%. Short sellers have been targeting Orocobre due to a collapse in the price of lithium and production disruption during the pandemic. Last week its shares fell to a multi-year low.
    • JB Hi-Fi Limited (ASX: JBH) has seen its short interest reduce week on week to 9.9%. Unfortunately for short sellers, this retailer’s shares have been storming higher over the last few weeks. It recently revealed strong quarterly sales growth despite the pandemic.
    • Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.4%, which is down slightly week on week. Pilbara Minerals is another lithium miner which has come under pressure due to weak lithium prices and concerns that a recovery could be delayed because of the pandemic.
    • Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise to 9.4%. Short sellers appear to believe this biopharmaceutical company’s shares are overvalued and could be due for a correction. They are currently changing hands at 59x trailing earnings.
    • Zip Co Ltd (ASX: Z1P) has seen its short interest fall to 9.3%. Short sellers have continued to target the buy now pay later company despite it delivering exceptionally strong growth during the month of April.
    • Inghams Group Ltd (ASX: ING) has short interest of 9.1%, which is down week on week again. Short sellers have been targeting the poultry company due to concerns over its narrowing margins.
    • Super Retail Group Ltd (ASX: SUL) has seen its short interest rise to 8.9%. It looks as though short sellers expect some of Super Retail’s retail brands to struggle during the pandemic.

    Lastly, instead of these most shorted shares, I would buy these dirt cheap shares which analysts have given buy ratings following the market crash.

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    Returns as of 7/4/2020

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Super Retail 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.

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  • 5 things to watch on the ASX 200 on Monday

    Broker trading shares relaxing looking at screen

    On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very positive note. The benchmark index climbed 1.4% to 5,404.8 points.

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

    ASX 200 expected to push higher.

    The ASX 200 looks set to continue its positive form on Monday. According to the latest SPI futures, the index is expected to rise 32 points or 0.6% at the open. This follows a strong end to the week on Wall Street which saw the Dow Jones rise 0.25%, the S&P 500 climb 0.4%, and the Nasdaq index jump 0.8% higher.

    Oil prices jump.

    Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped higher on Friday night. According to Bloomberg, the WTI crude oil price rose 6.8% to US$29.43 a barrel and the Brent crude oil price jumped 4.4% to US$32.50 a barrel.

    Gold price storms higher.

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could continue their charge on Monday after the gold price stormed higher. According to CNBC, the spot gold price rose 0.9% to a seven year high of US$1,756.30 an ounce after US-China tensions fuelled economic worries.

    Coles class action.

    The Coles Group Ltd (ASX: COL) share price will be on watch today after revealing that it has been hit with a class action. On Friday Coles advised that a class action proceeding has been filed in the Federal Court in relation to the underpayment of Coles managers employed in supermarkets. The company is already working towards remediating the affected employees. As such, it believes the class action is without merit and will defend it.

    Macquarie shares going ex-dividend.

    The Macquarie Group Ltd (ASX: MQG) share price is likely to trade lower today after going ex-dividend. Eligible shareholders can now look forward to being paid its $1.80 per share partially franked final dividend on July 3.  

    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.

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    Returns as of 7/4/2020

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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  • Stars Celebrate Class of 2020 Graduates at Virtual Event

    Stars Celebrate Class of 2020 Graduates at Virtual EventOprah Winfrey joined a star-studded lineup to deliver a message of hope to the class of 2020, who graduated during the coronavirus pandemic. Photo: Facebook

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  • U.S. Shale Could Crush The Oil Market Recovery

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  • Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion

    Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G ExpansionMicrosoft Corp. (MSFT) has signed a definitive agreement to buy virtualized network software provider Metaswitch Networks to help boost its exposure to 5G and increase its offerings for the telecommunications industry.Terms of the deal weren’t disclosed. Private equity-backed Metaswitch offers cloud-based voice, data and communications solutions for telecommunications operators.“The convergence of cloud and communication networks presents a unique opportunity for Microsoft to serve operators globally via continued investment in Azure, adding additional depth to our hyperscale cloud infrastructure,” Yousef Khalidi, Corporate Vice President at Microsoft said in a blog post. “Metaswitch’s complementary portfolio of ultra-high-performance, cloud-native communications software will expand our range of offerings available for the telecommunications industry.”Metaswitch was founded in 1981 as a pioneer in next-generation voice technology and counts British Telecom, T-mobile, Swisscom, Telstra and Vodafone as its main customers.“As the industry moves to 5G, operators will have opportunities to advance the virtualization of their core networks and move forward on a path to an increasingly cloud-native future,” according to Khalidi.This announcement comes less than a month after Microsoft’s acquisition of Affirmed Networks, which focuses on cloud-native networking solutions for telecom operators and mobile carriers.“Coupled with its recent acquisition of Affirmed, the move further cements MSFT's aim to become a major provider of virtualization services and 5G networking to global telecom providers,” Ryan Koontz, five-star analyst at Rosenblatt Securities wrote in a note to investors. “While we hold doubts as to the scope of near-term financial gains for Azure in the telecom segment, we see strategic advantages as Azure gains access to valuable real estate at the carrier edge.”According to Koontz, the 5G Core market is estimated to reach about $10 billion by 2025 from its current $1 billion, “seeing impressive growth as 5G stand-alone (SA) networks begin wide scale deployments beginning in 2021”.Shares in Microsoft have soared 35% in the past two months and were trading at $183.16 on Friday.TipRanks data shows that Wall Street analysts are almost unanimously bullish on Microsoft’s stock. Twenty-one out of 22 analysts have Buy ratings and 1 has a Hold rating adding up to a Strong Buy consensus. The $198.67 average price target provides investors with 8.5% upside potential in the shares in the coming 12 months. (See Microsoft stock analysis on TipRanks).Related News: Apple is Said to Snap Up Startup NextVR For Virtual Reality Content; Top Analyst Sees Buying Opportunity Taiwan Semi Has Not Received Any Assurance On US License For Huawei Tech Sale Is Royal Caribbean Cruises (RCL) Stock a Buy? This Analyst Says Yes More recent articles from Smarter Analyst: * Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy * Tesla Gets County Nod to Reopen California Auto Plant – Report * Amazon’s Response To Judiciary Committee ‘Unacceptable’ Tweets Jerry Nadler * President Trump Takes Aim at Digital Tech Giants From Google to Twitter

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  • Tesla Reopens Plant and Now Says It Has County’s Approval

    Tesla Reopens Plant and Now Says It Has County’s Approval(Bloomberg) — Tesla Inc. told employees that a California county health official has now signed off on safety measures the company took last week at its car plant as it restarted production in defiance of the area’s shutdown order.The Alameda County health officer’s approval means Tesla has local support to resume full production starting this week, Laurie Shelby, the company’s environmental, health, and safety vice president, wrote in an email to staff Saturday that was viewed by Bloomberg News. Representatives for Tesla and the county didn’t respond to queries outside regular business hours.The county’s authorization could resolve a highly contentious episode in which Elon Musk threatened to move Tesla’s headquarters and future programs out of California and sued the county over its health officer’s resistance to reopening the factory in Fremont. It’s unclear whether the chief executive officer will now follow through on his warnings, which also included shifting the company’s manufacturing out of the state.When Tesla was resisting calls to idle the factory in March, Fremont officials sought clarification from Alameda County as to whether the company was an essential business. Erica Pan, the county’s health officer, considered the plant to be a public health risk, according to documents obtained through a California public-records request.Musk’s recent comments and threats drew mixed reactions. President Donald Trump and Treasury Secretary Steven Mnuchin said Tesla should be allowed to reopen, and the mayors of Palo Alto, where Tesla has its headquarters, and Fremont, which is home to its plant and roughly 11,000 employees, offered words of support.But other California politicians rebuked the CEO, and his rocket company Space Exploration Technologies Corp. was denied a request for state funds to support job training and hiring on Friday.California Governor Gavin Newsom said Sunday on CNN’s “State of the Union” that Tesla didn’t get preferential treatment over other companies.“It’s a spirit of collaboration,” Newsom said. “Those that continue to pursue things that put people in harm’s risk, you have to have stepped-up efforts of enforcement and sanction. But that was not the case in respect to Tesla. They did work with Alameda County partners. And Alameda County health officials are satisfied that they are likely to reach those thresholds as early as Monday.”(Updates with context on dispute in fourth paragraph)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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  • U.S. moves to cut Huawei off from global suppliers

    U.S. moves to cut Huawei off from global suppliers Reemerging signs of strained relations between the U.S. and China have become more visible as the Trump administration barred Huawei from receiving shipments of technological materials from global chipmakers on Friday. The Final Round panel breaks down the latest news on the rising tensions.

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  • Barron’s Picks And Pans: Cisco, Gilead, Netflix, Wayfair And More

    Barron's Picks And Pans: Cisco, Gilead, Netflix, Wayfair And More* This weekend's Barron's cover story shows how the race for a COVID-19 vaccine could affect investors. * Other featured articles look at stocks involved in the race for 5G and some value stocks that are worth a look now. * Also, the prospects for an online retailer, a networking stock, video streaming picks and more."How the Race for a Covid-19 Vaccine Affects Investors" by Josh Nathan-Kazis asks which stocks could face steep drops if their coronavirus vaccines fall through. Gilead Sciences, Inc. (NASDAQ: GILD)? Johnson & Johnson (NYSE: JNJ)?Nicholas Jasinski's "5G Is Here. Will Anyone Care?" shows why investors should temper their expectations about the next wave of wireless service. Will AT&T Inc. (NYSE: T) or Verizon Communications Inc. (NYSE: VZ) be likely to benefit first?In "The U.S. and China's New Battle: 5G," Reshma Kapadia suggests that neither nation is willing to fall behind in shaping a new generation of communications. What's that mean for Apple Inc. (NASDAQ: AAPL), Intel Corporation (NASDAQ: INTC) and more?Shares of online furniture seller Wayfair Inc (NYSE: W) have soared during the lockdown, but the stock soon could come under heavy pressure. So says "Wayfair's Stock Could Drop 25% as Economy Reopens" by Bill Alpert.In Eric J. Savitz's "Earnings Lesson: Cisco Still Matters," see why Barron's believes that, despite a terrible earnings report, Cisco Systems, Inc. (NASDAQ: CSCO) stock deserves to trade more like video-streaming superstar Zoom Video (NASDAQ: ZM).See Also: Why A 'Prolonged Recession' Might Not Be Terrible For Investors"Covid-19 Is Crimping Cable TV and Boosting Netflix " by Jack Hough makes the case that soaring demand for streaming might work out well for Netflix Inc (NASDAQ: NFLX) and ViacomCBS Inc. (NYSE: VIAC).Value stocks have been anything but values in recent years, according to Evie Liu's "Value Stocks Look Cheaper Than Ever." They may be worth a look now. Does that include Amazon.com, Inc. (NASDAQ: AMZN) or Kroger Co (NYSE: KR)?In "No Covid Vaccine? These Three Companies Sell Other 'Mission Critical' Products," Al Root examines FLIR Systems, Inc. (NASDAQ: FLIR) and others that specialize in products and services that will make offices safer for returning workers.Also in this week's Barron's: * Why not all 5G is created equal * Why tensions with China have flared * How to avoid the coming trade wars * How COVID-19 is rewriting Economics 101 * Dividend stocks that split the difference between yield and safety * Whether hedge funds are betting the stay-at-home play is over * Latin American e-commerce companies getting a coronavirus boost * A commodity that is outperforming most othersSee more from Benzinga * Benzinga's Bulls And Bears Of The Week: Boeing, SmileDirectClub, Tesla And More * Benzinga's Bulls And Bears Of The Week: Ford, Gilead, Microsoft, Intel And More * Barron's Picks And Pans: Berkshire Hathaway, Carvana, Madison Square Garden And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Benzinga’s Bulls And Bears Of The Week: Boeing, SmileDirectClub, Tesla And More

    Benzinga's Bulls And Bears Of The Week: Boeing, SmileDirectClub, Tesla And More* Benzinga has examined the prospects for many investor favorite stocks over the past week. * Bullish calls included video streaming and aerospace leaders. * Bearish calls included cruise line operators and a restaurant chain.As Congress debated reopening the economy and the Federal Reserve warned that a recovery would be slow, word came of the reopening of theme parks, auto plants, tech giants and even trading floors. The major U.S. indexes ended last week in the red, led by about a 2.5% retreat in the Dow Jones industrials.As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are some of this past week's most bullish and bearish posts that are worth another look.Bulls Despite near-term volatility, Netflix Inc (NASDAQ: NFLX) is still winning buyers. So says Elizabeth Balboa's "3 Reason To Buy Netflix Stock Right Now, According To Jefferies."In "Here's How Large Boeing Option Traders Are Reacting To Abysmal Monthly Orders," Wayne Duggan shares a look at a flurry of bullish Boeing Co (NYSE: BA) option trades after further 737 Max cancellations."AbbVie's Potential Is 'Underappreciated,' Says Morgan Stanley Analyst" by Shanthi Rexaline looks at what prompted a top analyst to remain bullish on biopharmaceutical company AbbVie Inc (NYSE: ABBV).Jayson Derrick's "Key Takeaways From BofA's Deep Dive Into Grocery Stocks" says sales at Kroger Co (NYSE: KR) and others are likely to sustain a higher year-over-year pace.For additional bullish calls, also have a look at Activist Investor Nelson Peltz Says He Is Putting New Capital To Work and Morgan Stanley Analyst Says Many Tesla Investors 'Absolutely Adore' Musk's Dominating Strategy.Bears In Elizabeth Balboa's "Analyst: Here's How Long Carnival, Norwegian And Royal Caribbean Can Last Without Revenue," see why Carnival Corp (NYSE: CCL) may only last months with business at a standstill.The agriculture industry will struggle in the back half of 2020, according to "Agricultural Chemical Companies Had A Good Start To 2020, And BofA Says It's Over" by Priya Nigam. See how Mosaic Co (NYSE: MOS) and others may fare."Stephens On Cheesecake Factory: No Catalyst Or Recovery In Sight" by Jayson Derrick looks at how Cheesecake Factory Inc (NASDAQ: CAKE) is overexposed to malls, according to one key analyst.Priya Nigam's "BofA Downgrades SmileDirectClub, Sees Slower Recovery Ahead" discusses how SmileDirectClub Inc (NASDAQ: SDC) may fare in the year or so.Be sure to check out Mark Cuban On Consumer Demand, Small Businesses Dilemma And Market Uncertainty and Why Whitney Tilson Is Selling Stocks: 'We're In An Enormous Hole' for additional bearish calls.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Benzinga's Bulls And Bears Of The Week: Ford, Gilead, Microsoft, Intel And More * Bulls And Bears Of The Week: Amazon, Boeing, Disney, Netflix And More * Benzinga's Bulls And Bears Of The Week: Apple, Disney, Intel And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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