Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Thursday. In afternoon trade, the benchmark index is up a sizeable 1.55% to 7,873.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 2% to $16.66. This appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has retained its hold rating on the language testing and student placement company’s shares with a reduced price target of $20.00. Morgans is concerned about how restrictive policies could impact the company’s key markets and lead to lower than expected demand for its services.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down over 1% to $57.38. This morning, analysts at Goldman Sachs downgraded the retail giant’s shares to a sell rating with a new $50.00 price target (from $56.50). This implies potential downside of approximately 13% from where its shares trade today. Goldman notes that the company is facing “stronger competition on JBH AU from several fronts including expanding range at Amazon, recovery of execution from HVN, and intensifying competition from Officeworks.”

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down almost 5% to 10 cents. This follows the release of a trial update from the clinical-stage biotechnology company. PYC is developing a pipeline of first-in-class precision medicines for patients who have genetic diseases and have no treatment options available. Today’s update revealed that the company has completed dosing in patient cohort 4 of the ongoing Single Ascending Dose (SAD) study. This is for its trial of patients with a blinding eye disease called Retinitis Pigmentosa type 11 (RP11). Judging by the share price reaction, investors appear to have seen something in the update that didn’t meet their expectations.

Renascor Resources Ltd (ASX: RNU)

The Renascor Resources share price is down 11.5% to 11.5 cents. This may have been driven by profit taking from some investors after the battery materials company’s shares surged on Wednesday. Investors were buying the company’s shares in response to the Federal Budget. They appear to believe that the company’s proposed vertically integrated Battery Anode Material Manufacturing Project in South Australia could benefit from the Budget. The Government is investing $8.8 billion over the decade to strengthen critical minerals supply chains. This Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade.

The post Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Which ASX shares could be set to benefit from the federal budget?
• 3 ASX All Ords shares going gangbusters on Wednesday
• Why BHP, Boss Energy, Domino’s, and Renascor shares are racing higher

Motley Fool contributor James Mickleboro 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 Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s fair to say that it’s not peak dividend season on the ASX boards right now. With most ASX All Ords shares announcing their latest earnings over February and March, and with the dividends from those announcements hitting investors’ bank accounts over March and April, the back half of this month of May looks relatively dry when it comes to passive income paycheques.

But that doesn’t mean no ASX All Ords shares are scheduled to dole out their latest dividends. In fact, next week will see four All Ords shares trade ex-dividend for their latest shareholder payments.

Remember, when a dividend share trades ex-dividend, it rules a line in the sand regarding who gets to receive the dividend payment in question.

Put simply, any investor who is on the record as owning a company’s shares as of the market close the day before that company trades ex-dividend is eligible to receive the latest dividend payment. But anyone who buys shares on or after the ex-dividend date misses out.

So if you want to bag any of the dividends from the four ASX All Ords shares we’re about to discuss, you know what you have to do.

4 ASX All Ords shares set to trade ex-dividend next week

WAM Leaders and Amcor

First up is the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE). WAM Leaders is set to pay out an interim dividend of 4.6 cents per share, fully franked, on 31 May at the end of this month.

But the company’s ex-dividend date has been set for Monday, 20 May. That means that anyone wishing to bag this dividend will need to own WAM Leaders shares as of Friday’s market close.

This LIC currently sports a dividend yield of 6.52%.

Let’s discuss All Ords share and packaging giant Amcor plc (ASX: AMC) now. Amcor is a dual-listed company that pays quarterly dividends rather than the usual biannual schedule. Its latest payment, covering the three months to 31 March 2024, is set to be distributed on 11 June next month. It will be worth 19.3 cents per share but will come unfranked.

Amcor is currently trading on a dividend yield of 4.91%.

Orica and Whitefield

Next up, we have All Ords chemical and explosives manufacturing share Orica Ltd (ASX: ORI). Orica shares will deliver an interim, unfranked dividend of 19 cents per share on 3 July. But the company is set to go ‘ex-div’ for this latest payment on Thursday, 23 May next week. That means Wednesday is the last day you can buy Orica shares with the rights to this dividend attached.

Orica is trading on a dividend yield of 1.63% at present.

Last but not least, let’s dive into another All Ords share and LIC in Whitefield Industrials Ltd (ASX: WHF). Whitefield is the ASX’s oldest LIC, and has a very long history of paying out chunky dividends. The company’s next interim dividend will come in at 10.2 cents per share, with full franking credits attached.

However, investors must buy Whitefield shares by next Thursday, 23 May, to receive this payment. The LIC is set to trade ex-dividend next Friday, 24 May. The dividend payday will then roll around for eligible investors on 13 June next month.

At current pricing, Whitefield can boast of a 3.93% dividend yield.

The post 4 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

More reading

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• Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today
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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Betashares Nasdaq 100 ETF (ASX: NDQ) is one of the leading ASX exchange-traded funds (ETFs) to own, in my opinion.

It’s invested in 100 of the largest businesses on the Nasdaq, a stock exchange in the US where many of the largest American tech businesses are listed.

Let’s look at some very good reasons to like this fund.

Very strong businesses

When we look at the top holdings within the NDQ ETF, it owns many of the world’s best and strongest businesses for what they do. I’m talking about names like Microsoft, Apple, Nvidia, Alphabet, Amazon.com, Broadcom, Meta Platforms, Costco, Tesla and Netflix.

Collectively, these companies have a strong position in their respective markets, and they continue to reinvest in their businesses. This can unlock the next device, service, or expansion into a new country and create stronger shareholder returns.

The businesses generally have strong returns on equity (ROE) and great balance sheets, so they’re in a really good position to continue their success.  

Underlying global diversification

The businesses are all listed in the US, which may initially seem quite undiversified geographically. However, I think the most important thing is that the portfolio generates profit from across the world; it’s not necessarily about where they are listed.

I think the NDQ ETF offers good underlying diversification.

Apple’s iPhones are used in almost every country in the world. Microsoft software is used by computers around the world. Google and Facebook are internet powerhouses used by billions of people. Netflix is gaining global subscribers. And so on.

The size of these businesses’ underlying profits is very impressive, and the diversification of the earnings is stronger than it seems from the outside.

Excellent long-term returns for the NDQ ETF

Making returns is what it’s all about. The NDQ ETF has been one of the best-performing ASX ETFs over the last few years. Since inception in May 2015, the Betashares Nasdaq 100 ETF has generated an average return per annum of 19.2%.

Of course, past performance is not a guarantee of future performance. Volatility occurs sometimes, and one or two of these businesses could suffer if their growth goes off track.

But, the NDQ ETF is invested in 100 leading businesses which, as a group, could keep doing well for a long time if they keep re-investing in their operations as much as they have done historically.

I’m not expecting the next decade to be as good as the last decade, but I believe the NDQ ETF can outperform the S&P/ASX 200 Index (ASX: XJO) because of its focus on global profit growth, good margins, and profit re-investment.

The post 3 reasons the Betashares Nasdaq 100 ETF (NDQ) is a great ASX ETF pick appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Errawarra Resources Ltd (ASX: ERW) share price is on fire again on Thursday and rocketing higher.

At the time of writing, the ASX lithium stock is up an impressive 32% to 18.5 cents.

This latest gain means that the company’s shares are now up 200% since this time last week.

Why is this ASX lithium stock on fire?

Investors have been fighting to get hold of the company’s shares since the release of very promising exploration results from the Andover West project in the West Pilbara region.

This project comprises over 100km2 of prospective ground located approximately 40km east-southeast of Karratha and south of the Azure Minerals Ltd (ASX: AZS) owned Andover LCT Pegmatite project, which was recently acquired by Sociedad Química y Minera de Chile (NYSE: SQM) and Hancock Prospecting.

The release reveals that the ASX lithium stock has identified a large (~ 1.6km x 1km) stacked pegmatite swarm at Andover West. It also notes that there was highly anomalous Li Soil trend (peak 325ppm Li2O).

These anomalous lithium soil trends are along strike and 1.7km from the Raiden Resources Ltd (ASX: RDN) lithium pegmatite discovery that reported 3.8% Li2O rock chip.

Management also notes the fertility of pegmatite swarm, highlighted by extensive background Li soil anomalism (>100ppm Li2O).

An Andover Heritage Clearance Survey is now scheduled to be undertaken this month with planning for a drill program also underway. Field teams have been mobilised to the Pinderi Hills JV with sampling underway.

Management commentary

The ASX lithium stock’s executive chairman, Thomas Reddicliffe, appeared to be delighted with the exploration update. He commented:

We are excited not only by the recognition of this large pegmatite swarm which lies adjacent to Azure minerals Andover project but also because we can now focus in on the lithium fertile zones within these broad pegmatite packages.

Reddicliffe believes this update may have only “hit the tip of the iceberg” and is looking forward to digging deeper into the Andover West project in the coming months. He adds:

We believe that we may have only hit the tip of the iceberg with these lithium fertile zones within the pegmatite packages and with their shallow dips we have the opportunity to explore for higher grades down dip. Being along strike and in proximity to the Raiden lithium pegmatites we are optimistic of our chances and keen to do some exploratory drilling.

Errawarra Resources shares are now up over 350% on a monthly basis.

The post  ‘Tip of the iceberg’: Why this ASX lithium stock has exploded 200% in a week appeared first on The Motley Fool Australia.

More reading

• 4 ASX All Ords shares with ex-dividend dates next week
• 3 reasons the Betashares Nasdaq 100 ETF (NDQ) is a great ASX ETF pick
• How the latest Aussie jobs figures just lit the ASX 200 on fire
• Patriot Battery Metals share price rockets 11% on new lithium drilling results
• Guess which ASX 200 stock is surging 11% on an ‘outstanding’ result

Motley Fool contributor James Mickleboro 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.

The S&P/ASX 200 Index (ASX: XJO) is smoking hot today.

The benchmark index was already up a very impressive 1.5% at 11.30am AEST.

That strong run was driven by some encouraging inflation data out of the United States.

With inflation ticking lower in the world’s top economy, investors are increasingly optimistic about the prospects of one or more 2024 interest rate cuts from the US Federal Reserve.

Investors reacted by sending the S&P 500 (INDEXSP: .INX) up 1.2% to close at a new all-time high.

And with the ASX 200 surging another 0.3% between 11.30am and noon, putting it up 1.8% in intraday trading, the Aussie benchmark is within spitting distance of resetting its own all-time closing high.

That record was set on 28 March when the index closed at 7,896.9 points. At time of writing, the ASX 200 stands at 7,890.5 points.

Here’s why investors are bullish on the latest Aussie jobs data.

ASX 200 leaps on unemployment figures

The Australian Bureau of Statistics (ABS) released the latest jobs data for the month of April at 11.30am.

April saw the nation’s seasonally adjusted unemployment rate hit 4.1%, up from 3.9% in March.

“With employment rising by around 38,000 people and the number of unemployed growing by 30,000 people, the unemployment rate rose to 4.1%, and the participation rate increased to 66.7%,” Bjorn Jarvis, ABS head of labour statistics said.

While that’s not good news for job seekers, it indicates a slowing economy. And the jobs data looks to have sent the ASX 200 even higher today as it also ups the odds of interest rate cuts from the RBA in 2024.

However, Jarvis noted that the Aussie labour market still remained tight by historic standards.

According to Jarvis:

The employment-to-population ratio remained steady at 64.0% in April, indicating that recent employment growth is broadly keeping pace with population growth. This suggests that the labour market remains tight, though less tight than late 2022 and early 2023.

Sell in May and go away?

Sell in May and go away?

I don’t think so!

With today’s smoking hot intraday gains, the ASX 200 is almost certain to close well into the green today. That will see the benchmark index closing up for nine out of the last 11 trading sessions!

And at the time of writing, the ASX 200 is up 4.1% since the closing bell rang on 1 May.

Indeed, loyal readers (I know you’re out there!) may recall the piece I penned this Tuesday.

In the article, I highlighted both the overnight US inflation print and today’s Aussie jobs data as potentially setting the ASX 200 up for a “huge day” today.

I don’t generally toot my own horn.

So please forgive the following.

Toot!

The post How the latest Aussie jobs figures just lit the ASX 200 on fire appeared first on The Motley Fool Australia.

More reading

• 4 ASX All Ords shares with ex-dividend dates next week
• 3 reasons the Betashares Nasdaq 100 ETF (NDQ) is a great ASX ETF pick
•  ‘Tip of the iceberg’: Why this ASX lithium stock has exploded 200% in a week
• Patriot Battery Metals share price rockets 11% on new lithium drilling results
• Guess which ASX 200 stock is surging 11% on an ‘outstanding’ result

Motley Fool contributor Bernd Struben 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.

The Patriot Battery Metals Inc. CDI (ASX: PMT) share price soared 11.25% higher on Thursday after the company released new lithium drilling results.

The ASX lithium stock rose to an intraday high of 89 cents before settling back to 87 cents, up 8.7%, at the time of writing.

Today’s rise means Patriot Battery Metals has more than recovered its share price losses from yesterday.

The miner’s shares fell 5.39% on Wednesday following news that a nine-month memorandum of understanding (MOU) with Albemarle Corp (NYSE: ALB) had concluded and would not be extended.

Let’s take a look at those drilling results.

Patriot Battery Metals share price rises on drilling results

Patriot Battery Metals has released a new batch of core assay results for drill holes completed this year at the CV5 spodumene pegmatite at its Corvette Lithium Project in Quebec.

The results show “continued strong lithium mineralization over wide intervals” from infill drilling.

Here are some details:

• 122.5 m at 1.42% Li2O, including 35.8 m at 2.15% Li2O (CV24-405)
• 71.4 m at 1.57% Li2O, including 14.2 m at 3.15% Li2O (CV24-435)
• 68.7 m at 1.56% Li2O and 22.5 m at 1.04% Li2O (CV24-414)
• 74.9 m at 1.28% Li2O, including 28.1 m at 2.28% Li2O (CV24-423A)
• 53.0 m at 1.22% Li2O, including 25.0 m at 1.65% Li2O (CV24-450).

The CV5 spodumene pegmatite has a maiden mineral resource estimate (MRE) of 109.2 Mt at 1.42% Li2O inferred. Patriot Battery Metals is hoping for results that will support an upgrade from an inferred to an indicated MRE. The company is now awaiting results from 67 more drill holes in the C5 zone.

The company is also waiting for results from 44 drill holes in the newly discovered high-grade C13 zone. Patriot is targeting a maiden C13 resource estimate in the third quarter of this year.

What did management say?

Darren L. Smith, Vice President of Exploration, commented:

Another round of CV5 core assays from our infill program and it continues to deliver to expectations.

Coupled with the new highgrade discovery at CV13, the 2024 winter program’s results continue to demonstrate the quality and scale on show at Corvette.

What’s next for the Corvette Lithium Project?

As we covered yesterday, Patriot Battery Metals and Albemarle had been assessing partnership opportunities to study the viability of a downstream lithium hydroxide plant in Canada or the United States for the Corvette Project.

Albermarle is Patriot’s biggest shareholder with a 6.4% stake.

With the MoU concluded, Patriot now intends to talk to other downstream companies in the lithium supply chain.

Management said interest from other potential partners had risen as the scale and quality of the Corvette Project had become increasingly clear.

Patriot Battery Metals president and CEO Ken Brinsden said they were “excited by the intense market interest in the Corvette project”.

Brinsden said:

As we move forward, Patriot is eager to expand its operations and explore new partnerships that support the growing demand for lithium raw materials and chemicals in North America and Europe.

We also look forward to continuing our productive relationship with Albemarle in a flexible, non-exclusive format.

The post Patriot Battery Metals share price rockets 11% on new lithium drilling results appeared first on The Motley Fool Australia.

More reading

• Guess which ASX lithium stock dived 9% after parting ways with Albemarle
• Why AGL, HMC Capital, Megaport, and Patriot Battery Metals shares are racing higher

Motley Fool contributor Bronwyn Allen 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.

The S&P 500’s record high overnight appears to be rubbing off on the Australian share market today. However, one ASX 200 stock is stealing the show after delivering its FY2024 half-year results.

Shares in slot machine maker Aristocrat Leisure Limited (ASX: ALL) are up 11.2% to $45.31 at the time of writing. The next closest best-performer among the top 200 is a lesser 5.8% higher.

Let’s peer into the figures flinging this ASX giant higher.

What did this surging ASX 200 stock report?

Short on time? Here’s the no-fluff takeaways from Aristocrat’s results:

• Revenue up 6.1% (4% on constant currency) to $3,269.6 million
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 17.6% to $1,195.7 million
• Net profit after tax (NPAT) up 16.8% to $723.3 million
• Interim fully franked dividend of 36 cents per share, up 20% from the prior corresponding period
• An additional $350 million in on-market share buybacks

Aristocrat Leisure’s strong half-year performance coincides with the company retaining market-leading position in gaming cabinets (i.e. slot machines) across the United States and the Australia and New Zealand region.

However, the Aristocrat Gaming segment saw a 9% decline in outright sales in the half. Meanwhile, the ‘rest of world’ market performed solidly, with revenue increasing 7% and profit jumping 29%. Management attributed this growth mainly to Asia as replacement unit sales recovered.

Who’s at the helm of this ASX 200 stock? That would be CEO Trevor Croker, who described today’s result by saying:

This was once again an outstanding result, reflecting Aristocrat’s resilience and ability to grow share and drive profitability through different operating environments.

Perhaps one of the weaker areas was the Pixel United segment, which encompasses mobile-first games RAID: Shadow Legends and Mech Arena. Bookings slipped 1% to US$877 million, while the broader mobile games market grew 4%.

Lastly, revenue in the Aristocrat Interactive segment soared 49% compared to the prior corresponding period. The iGaming and iLottery division benefitted from greater revenue from customer experience solutions (CXS).

What else?

It all sounds relatively good, but is it a ‘10% boost in share price good’?

The cherry on top bringing all the investors to the yard is arguably the $350 million share buyback increase.

Aristocrat Leisure launched a buyback program in May 2022 for up to $500 million. A year later, the company raised the buyback bar by another $500 million. Fast-forward to today, and shareholders are being graced with another $350 million.

In addition, the company will conduct a strategic review of its casual and mid-core gaming assets, including Big Fish Games (excluding the Big Fish Social Casino assets) and Plarium Global. There’s no verdict yet, but any sale could mean more cash for investors in this ASX 200 stock.

The Aristocrat Leisure share price is now up 14% in the last year amid its May green streak.

The post Guess which ASX 200 stock is surging 11% on an ‘outstanding’ result appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Mitchell Lawler 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.

There have been a lot of rumours surrounding the secret stock Warren Buffett has been pouring billions of dollars into since 2023.

Today, we have our answer.

United States-listed insurance giant Chubb Ltd (NYSE: CB).

Why did Warren Buffett keep the investment under wraps?

Aged 93, Warren Buffett is still actively managing Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), though succession processes are in place.

Yesterday, overnight Aussie time, Berkshire’s filing with the US Securities and Exchange Commission (SEC) revealed the company had bought some 26 million Chubb shares for roughly US$6.7 billion (AU$10 billion) over the first quarter.

Although the Chubb shares were bought over a period of months, Berkshire had requested its share purchases were kept confidential from prior filings with the SEC.

Why?

Well largely because investors the world over tend to copy Warren Buffett’s investments. That can see the share price of companies he’s buying rise simply on the news of his interest. And that makes it harder for him to abide by one his golden rules, “Never overpay for anything.”

The Oracle of Omaha, after all, started his investing life with almost nothing and is now worth more than US$136 billion (AU$205 billion), according to Forbes.

Indeed, the Chubb share price has soared 8.3% in after-hours trading since the news of Berkshire’s investment hit the wires.

“Millions of people follow what Buffett does,” David Kass, a finance professor at the University of Maryland said (quoted by Bloomberg). “Warren Buffett would be more sensitive to the issue than others.”

And the $10 billion investment in Chubb aligns well with another Buffett investing nugget, “You don’t have to be smart, as long as you stick to what you know.”

The billionaire is indeed quite familiar with the insurance business, with Berkshire owning a number of insurance companies, including Geico.

“Chubb is an attractive equity investment for Berkshire because it operates in a business Berkshire knows well: property-casualty insurance,” Cathy Seifert, a CFRA Research analyst said (quoted by Reuters).

Despite the Chubb investment, Berkshire’s cash holdings hit an all-time high of US$189 billion at the end of March.

Are there similar ASX shares to invest in?

Investors looking to mimic Warren Buffett on the ASX will need to look at some smaller companies.

Chubb, a property-casualty insurance business, operates in 54 countries and has a market cap of US$103 billion (AU$154 billion).

With that said, if I were aiming to mimic Warren Buffett today on the ASX, I’d look at buying shares in QBE Insurance Group Ltd (ASX: QBE).

The S&P/ASX 200 Index (ASX: XJO) insurance company has a market cap of $27 billion and has been a very strong performer in 2024. Year to date, the QBE share price is up 22%.

Atop the potential for further share price gains, the ASX insurance stock trades on a partly franked dividend yield of 3.5%.

Going by these stats, this ASX share ticks at least one box for Warren Buffett.

Namely his mantra that, “The greatest protection against inflation is ownership in a business that goes up in value.”

The post The secret stock Warren Buffett just spent $10 billion on (and finding similar ASX shares) appeared first on The Motley Fool Australia.

More reading

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• Buy BHP and these ASX dividend stocks
• If I were Warren Buffett, I’d buy these 3 ASX shares
• Leading brokers name 3 ASX shares to buy today
• What could $10,000 invested in QBE shares be worth in 12 months?

Motley Fool contributor Bernd Struben 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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The new record-breaking run on the S&P 500 (INDEXSP: .INX) overnight is helping fuel another big day on the S&P/ASX 200 Index (ASX: XJO).

The S&P 500 closed up 1.2% in the US market yesterday, finishing the day for a new closing high of 5,308.2 points.

The benchmark US index has been on a tear this year, with the new closing high marking the 23rd new record close in 2024.

In late morning trade on Thursday here in Australia, the ASX 200 is up 1.34% at 7,857.6 points. That puts the ASX 200 within a whisker of its own record closing high of 7,896.9 points, set on 28 March.

As for the big US tech stocks, the Nasdaq Composite Index (INDEXNASDAQ: .IXIC) closed up 1.4% yesterday.

What’s sending the S&P 500 and the ASX 200 soaring?

The biggest tailwinds helping lift the S&P 500 overnight and the ASX 200 today look to be more good news on the inflation front out of the United States.

The US consumer price index (CPI) increased 0.3% in April, down from 0.4% in March. That saw the annual inflation rate retreat to 3.4%, down from 3.5% a month earlier.

Core CPI, which excludes volatile items like food and energy prices, was also up 0.3% for an annual rate of 3.6%. That’s the lowest core inflation level recorded by the world’s top economy in three years.

As you’d expect, this is fuelling renewed hopes of earlier interest rate cuts from the US Federal Reserve, which should prove a boon for equities.

What are the experts saying?

Commenting on the US inflation data that sent the S&P 500 to new all-time highs and is seeing the ASX 200 rocket today, National Australia Bank Ltd (ASX: NAB) said (quoted by The Australian Financial Review), “US CPI was in line with expectations, but came as a relief for markets after a string of upside surprises.”

NAB added, “Pricing for a September start to Fed easing firmed, the US dollar showed broad-based declines, and equities rose to fresh all-time highs.”

CIBC Private Wealth’s Gary Pzegeo said (quoted by Bloomberg):

The market likes it. The news on core inflation was better than expected. Retail sales also showed some deceleration from the previously hot consumer sector. Taken together, this supports a Fed rate-cut in the fall.

Nationwide’s said Mark Hackett added:

Equity markets continue to show impressive resilience. The sustainability of the recent rally will rely on the belief that we are heading for a ‘soft landing’, with easing inflation and moderate growth.

So, with the S&P 500 at new record levels and the ASX 200 close to setting its own new record, can equities continue to rally in 2024?

According to Infrastructure Capital Advisors’ Jay Hatfield, very much so.

Hatfield said:

We continue to believe that our 5,750 target on the S&P will prove to be conservative as global rate cuts and AI propel global stock and bond markets higher after global cuts commence, with the ECB to act in early June.

Hatfield’s “conservative” end of 2024 target represents a potential upside of more than 8% for the S&P 500 over the next seven months.

One ASX share to capture the S&P 500 performance

There’s a surprisingly simple way for Aussie investors to mirror the performance of the S&P 500 without buying all 500 large-cap companies in the US index. Namely, via an index-tracking ASX-listed exchange-traded fund (ETF), like the SPDR S&P 500 ETF Trust (ASX: SPY).

The ETF provides exposure to those 500 stocks with a single investment, aiming to track the performance returns of the S&P 500. Management costs come to just under 0.10% per year.

Over the past 12 months the ASX ETF is up 28%.

The post ASX 200 rockets higher on Thursday as S&P 500 smashes record highs appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

The Graincorp Ltd (ASX: GNC) share price is charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) agribusiness and processing company closed yesterday trading for $8.07. In morning trade on Thursday, shares are swapping hands for $8.27 apiece, up 2.5%.

For some context, the ASX 200 is up 1.3% at this same time.

This comes following the release of Graincorp’s half year results for the six months ending 31 March (1H FY 2024).

Here’s what ASX 200 investors are mulling over today.

Graincorp share price lifts amid falling debt and swelling cash

• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $164 million, down 57% from $383 million in 1H 2023
• Net profit after tax (NPAT) of $50 million, down 75% from $200 million in 1H FY 2023
• Underlying NPAT: $57 million, down 72.5% year on year
• Core cash of $495 million, up from $349 million year on year
• Fully franked interim dividend of 24 cents per share, in line with last year

What else happened during the half year?

The big earnings hit that’s failing to dampen the Graincorp share price rally today was driven in part by a $125 million dollar half year EBITDA decline in the company’s Agribusiness, which came in at $101 million for the six months.

The company said global grain market conditions hit its Agribusiness segment amid increasing global production, commodity prices decline and moderating global trade flow risks.

Graincorp’s Nutrition and Energy segment reported EBITDA of $76 million, down from $131 million in 1H 2023. The fall in earnings came as improved volumes were offset by moderated crush margins, with the company citing a lower supply of canola seed and weaker vegetable oil prices year on year.

The ASX 200 stock’s strong core cash position of $495 million was up $146 million year on year. That’s partly thanks to the company’s $104 million post tax take from the sale of its stake in United Malt Group in November.

Net debt at 31 March was $765 million, down from $1.42 billion a year earlier.

Eligible investors can expect to receive the interim dividend payout on 18 July.

What did management say?

Commenting on the results boosting the Graincorp share price today, CEO Robert Spurway said:

Graincorp delivered a resilient result in 1H 2024, as grain and oilseed markets normalise following three extraordinary years for the industry.

As expected, we have experienced a decline in overall production across East Coast Australia  and lower supply chain and crush margins relative to 1H 2023. Strong volumes in Southern New South Wales and Victoria have been offset by below average conditions in Queensland and Northern NSW.

Now what?

Looking to what could impact the Graincorp share price in the months ahead, the company maintained its FY 2024 guidance provided earlier this month, stressing this “remains subject to a range of variables”. The company forecasts underlying EBITDA of $25 million to $280 million and underlying NPAT of $60 million to $80 million.

“Despite the moderation in industry conditions in FY24, the long-term fundamentals of the agriculture sector remain strong,” Spurway said.

He added:

The industry plays a pivotal role in human and animal nutrition, and as a feedstock source for global decarbonisation efforts.

We remain confident in our average earnings through-the-cycle EBITDA, which we have increased by $10 million to $320 million, following the acquisition of XF Australia

Graincorp share price snapshot

With today’s intraday gains factored in, the Graincorp share price is up 14% so far in 2024.

The post Graincorp share price lifts off as dividend is maintained and debts plunge appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.