Stock Pick

  • Why DroneShield shares are making headlines again on Thursday

    A boy leaps and flaps his arms as he tries to fly with some birds on the shoreline of the beach.

    DroneShield Ltd (ASX: DRO) shares were back in the spotlight on Thursday, nudging a fresh all-time high of $1.425 per share this morning following a company announcement.

    Shares in the counter-drone technology company drifted lower through the day, however, before closing Thursday’s session 4.07% in the red at $1.295.

    What’s driving DroneShield shares?

    Today’s price action follows the company’s announcement it was set to raise cash via a share placement of 37.9 million shares to investors at 80 cents apiece. That implies a total capital raise of $30.32 million before costs.

    Notably, 80 cents was the price the company’s shares traded at around May this year before its atmospheric rise to a series of all-time highs this week. It has nudged to these highs in the last two sessions.

    The placement — approved at the company’s annual general meeting on 3 June — has been tremendously successful for investors so far.

    Based on today’s closing price, they look to have booked profits of around $18.5 million on the approximately 38 million shares.

    Why investors are bullish on DroneShield

    DroneShield has been on a remarkable upward trajectory, with its shares soaring 440% over the past year.

    The meteoric rise can largely be attributed to increasing demand for the company’s drone detection and disablement hardware.

    DroneShield CEO Oleg Vornik said the counter-drone market was currently underserved. This was coupled with increasing public and private sector demand.

    Vornik recently highlighted a scenario showing the company’s potential to grow revenues in the coming five years from $55 million last year to $300 million–$500 million per annum.

    DroneShield’s latest quarterly results are a testament to this growth. The company reported $16.4 million in revenue for Q1 CY 2024, a 900% year-over-year increase.

    Such impressive growth metrics have prompted analysts to upgrade the stock. For instance, Bell Potter analysts recently gave DroneShield a buy rating. The broker forecasts $97 million in sales and $24.4 million in earnings this year.

    Share price summary

    DroneShield shares have been on a tear this year and continue to gather support. With news the company is raising cash to fund its growth, the next task is on management, in my opinion.

    The stock is up 250% this year to date, having climbed more than 55% in the past month of trade. The S&P/ASX 200 Index (ASX: XJO) has climbed 2.5% in this time.

    The post Why DroneShield shares are making headlines again on Thursday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Droneshield Limited right now?

    Before you buy Droneshield Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Droneshield Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Zach Bristow 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 DroneShield. 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 are the top 10 ASX 200 shares today

    A coal miner smiling and holding a coal rock, symbolising a rising share price.

    The S&P/ASX 200 Index (ASX: XJO) enjoyed another top day this Thursday, with most ASX shares punching higher.

    By the time trading wrapped up, the ASX 200 had gained a rosy 0.68%, pushing the index back up to 7,821.8 points.

    This joyous trading day for Australian investors follows a decent night over on the American markets as well.

    The Dow Jones Industrial Average Index (DJX: .DJI) had a solid showing, rising 0.25%.

    It was far better for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) though, which rocketed 1.96% higher.

    But let’s get back to the local markets now, with a look at how the various ASX sectors went during today’s optimistic buying.

    Winners and losers

    We saw every single sector on the market record a rise today.

    Leading the charge were gold stocks. The All Ordinaries Gold Index (ASX: XGD) had a huge day exploding 2.19% higher.

    Tech shares also had a great time, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) surging 1.41%.

    So did ASX financial stocks. The S&P/ASX 200 Financials Index (ASX: XFJ) flew 0.95% upwards this Thursday.

    Another bright spot was the healthcare space. The S&P/ASX 200 Healthcare Index (ASX: XHJ) soared 0.94%.

    Then we had industrial shares. The S&P/ASX 200 Industrials Index (ASX: XNJ) was in demand too, rising by 0.84%.

    Consumer staples stocks saw nice buying pressure as well, as you can see from the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.69% jump.

    Its consumer discretionary counterpart joined the party as well, evident from the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.56% gain.

    Utilities shares put up some decent numbers as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) appreciated by 0.52% this session.

    Real estate investment trusts (REITs) were also seeing some action, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) bouncing 0.4% higher.

    Mining shares were making their investors happy. The S&P/ASX 200 Materials Index (ASX: XMJ) lifted 0.4%.

    Communications stocks could say the same. The S&P/ASX 200 Communication Services Index (ASX: XTJ) enjoyed a 0.29% bump today.

    Our final winners were energy shares. The S&P/ASX 200 Energy Index (ASX: XEJ) nearly broke with its stablemates but managed to wrangle out a 0.01% increase by market close.

    Top 10 ASX 200 shares countdown

    Coming out on top of the index pole this Thursday was coal miner Coronado Global Resources Inc (ASX: CRN). Coronado shares vaulted a happy 6.47% higher today to finish up at $1.235 each.

    This move comes after Coronado held its annual general meeting, which investors seemed to get a kick out of.

    Here’s how the rest of today’s winners landed the plane:

    ASX-listed company Share price Price change
    Coronado Global Resources Inc (ASX: CRN) $1.235 6.47%
    Nanosonics Ltd (ASX: NAN) $3.10 6.16%
    Silver Lake Resources Ltd (ASX: SLR) $1.56 6.12%
    Genesis Minerals Ltd (ASX: GMD) $1.92 4.92%
    Red 5 Ltd (ASX: RED) $0.455 4.60%
    Perseus Mining Ltd (ASX: PRU) $2.44 4.27%
    Orora Ltd (ASX: ORA) $2.19 3.79%
    Regis Resources Ltd (ASX: RRL) $1.855 3.63%
    Bellevue Gold Ltd (ASX: BGL) $1.97 3.14%
    WiseTech Global Ltd (ASX: WTC) $100.22 2.83%

    Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bellevue Gold Limited right now?

    Before you buy Bellevue Gold Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bellevue Gold Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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 Nanosonics and WiseTech Global. The Motley Fool Australia has positions in and has recommended Nanosonics and WiseTech Global. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Get ready to make less money off your investments, says a private equity executive

    Scott Kleinman spoke to Bloomberg Television in Berlin about the private equity return environment.
    Scott Kleinman spoke to Bloomberg Television on Wednesday about the private equity return environment.

    Bloomberg Television

    • Apollo's Scott Kleinman warned of a "dry spell" for investors as deals from a friendlier era unwind.
    • Managers must adjust financial projections from deals done in the zero-interest rate era.
    • Investors want their money back, but managers often don't want to sell at a perceived discount.

    A leading private equity executive just warned that investors are in for a "pretty dry spell for a few years."

    "I'm here to tell you everything is not going to be OK," Scott Kleinman, the co-president of Apollo Global Management, said at a session during Berlin's SuperReturn International conference on Wednesday.

    Managers have to adjust their financial projections for deals struck in the looser world of zero interest rates, when financing was cheap and consumers spent more.

    "It's going to be a little bit tougher for private equity firms to see the types of returns they were looking for, versus in years past," Kleinman told Bloomberg Television on the conference's sidelines.

    Some fund managers have to think creatively about how they wind down these deals, since the public markets have been touch-and-go for initial public offerings and potential private buyers have higher debt costs than a few years ago.

    Private equity firms can't hold their investments forever. Their fund agreements typically limit their involvement to about 10 years, from fundraising to purchasing to selling, although it's become more common for investors to agree to extend the fund's life.

    Investors don't want their money tied up for long, since they can't reinvest it. Across every stage of investing, from venture capital's startups to private equity's late-stage companies, investors are clamoring to get their money back. But managers don't want to sell at what they think is a discount to what the investment is worth.

    "Eventually, sponsors are just going to have to accept that the valuation environment is lower and start selling companies," Kleinman said.

    Apollo, long known for distressed investing, will be ready to invest: It had $65 billion of dry powder on hand at the end of the first quarter. The firm manages more than $670 billion overall.

    Read the original article on Business Insider

  • 2 war experts say British armor has the same production flaw that contributed to Nazi Germany’s downfall

    A Ukrainian soldier with a machine gun in his hands rides along a dirt road on a Challenger-2 tank on August 3, 2023 in Ukraine.
    A Ukrainian soldier with a machine gun in his hands rides along a dirt road on a Challenger-2 tank on August 3, 2023 in Ukraine.

    Serhii Mykhalchuk/Global Images Ukraine via Getty Images

    • A retired UK colonel and a war historian are sounding the alarm on Britain's tank production.
    • They warned against relying on advanced weapons too costly to scale up, a mistake Nazi Germany made.
    • Their chief concern is with the Challenger-3 tank program, which is set to produce 148 vehicles.

    A retired British Army colonel and a World War II historian are urging UK authorities to recalibrate weapons production, saying Britain is too fixated on building world-class military tech that it can't scale up.

    This was the same problem that partially brought Nazi Germany to its knees, wrote Hamish de Bretton-Gordon and James Holland in a commentary published on Wednesday by The Telegraph.

    "It would appear we are doomed to repeat the mistake Nazi Germany made in the Second World War — relying on sophisticated weaponry that is too expensive for mass production and will never produce decisive battlefield results," wrote the pair.

    Holland is a World War II historian, and de Bretton-Gordon led several commands in his 23-year military career, including NATO's Rapid Reaction CBRN Battalion and the UK's Joint Chemical, Biological, Radiological, and Nuclear Regiment. Before he retired, de Bretton-Gordon was an assistant director in intelligence services.

    Not enough tanks

    One of the pair's major concerns is the Challenger-3 program, which aims to supply the UK with its latest, best-in-class tank fitted with a powerful 120mm smooth-bore gun.

    But the UK is only planning to field 148 of them, and de Bretton-Gordon and Holland said that's far too few to fill the country's defense needs.

    They recalled how Nazi Germany had obsessed over the quality of its tanks, chiefly the King Tiger, but meanwhile only managed to produce less than 500 of them. The tank most heavily produced by Germany at the time was the Panzer IV, but even so, Hitler's industrial complex built 8,500 vehicles at maximum.

    Holland and de Bretton-Gordon contrasted that to the US producing more than 50,000 Sherman tanks and the Soviet Union building up to 84,000 T-34s.

    In total, Nazi Germany built just under 50,000 tanks during the war, while the US built over 100,000. The Soviet Union built nearly 120,000 tanks.

    The sheer numbers made a difference in World War II, and they'll make a difference now, de Bretton-Gordon and Holland wrote.

    "The old adage of 'mass matters' is as relevant in the battle for the Donbas today as it was for the battles of Kursk, a few kilometers to the east in 1943," they wrote.

    The UK's current main battle tank is the Challenger-2, with an estimated inventory of 227 vehicles. However, a UK Defense Committee report in March 2023 said that only about 157 are available for operations in a 30-day notice.

    Prime Minister Rishi Sunak and Ukrainian President Volodymyr Zelenskuy meet Ukrainian troops being trained to command Challenger 2 tanks at a military facility on February 8, 2023 in Lulworth, Dorset, England.
    Prime Minister Rishi Sunak and Ukrainian President Volodymyr Zelenskuy meet Ukrainian troops being trained to command Challenger 2 tanks at a military facility on February 8, 2023 in Lulworth, Dorset, England.

    Andrew Matthews/WPA Pool/Getty Images

    Western tanks such as the Challenger 2 and Leopard 2 might win against their adversaries in a one-on-one fight, but the Ukraine war is showing that they aren't making enough of a difference because Kyiv lacks the mass to push through Russian lines, the war experts wrote.

    As the pair put it: "One leopard is no match for a pack of hyenas."

    Advanced technology can still turn the tide of battle, but it must be a given that the enemy cannot counter the threat, they added.

    Both called on UK authorities to "wake up," writing:

    Whoever leads the country next needs an urgent Defence Review. Two massive aircraft carriers and 150 tanks are no deterrence to the likes of Russia or China. And it is these countries which we need to design our deterrence around, not some imaginary enemy that suits single service rivalries. Ten billion pounds spent on tanks rather than carriers would give us the conventional deterrence so lacking at the moment, for instance.

    Notably, de Bretton-Gordon was also once a commander of the 1st Royal Tank Regiment.

    Russia's mass-production game

    In June 2023, de Bretton-Gordon praised British armor for its quality in his commentary on the war in Ukraine. He said that Kyiv's battle doctrine allowed it to effectively use tanks supplied by the UK against Russia's low-morale conscripted forces.

    "As a former tank commander, I know the Challenger 2 vastly outmatches what's left of Russia's armor," de Bretton-Gordon wrote.

    While de Bretton-Gordon continues to laud the capabilities of British tanks, the optimism and global conversation regarding Ukraine has shifted as Russia puts its economy on a war footing.

    Moscow quickly expanded its defense manufacturing complex and recruitment drives to fuel mass reinforcements in Ukraine, prompting worries that it could sustain its heavy losses for several years.

    Ukraine, meanwhile, is desperately trying to fill its ranks with more men and had a significant tranche of US aid delayed in Congress for months. While the flow of military equipment has resumed, Kyiv's need for manpower is still great.

    Read the original article on Business Insider

  • The boss of Russia’s biggest bank said the country’s economy is ‘definitely and strongly overheated’

    Russian President Vladimir Putin and Sberbank CEO Herman Gref from shoulders up.
    Sberbank CEO Herman Gref and Russian President Vladimir Putin.

    Mikhail Svetlov/Getty Images

    • Russia's economy is "definitely and strongly overheated," said Sberbank CEO Herman Gref.
    • Gref said it's "impossible" to exceed the current production capacity, which is at 84%.
    • Russia's sanctions-hit economy grew 3.6% GDP last year, driven by wartime activities.

    Russia's economy appears to have an intensifying issue following more than two years of war with Ukraine: It's overheating.

    Herman Gref, the CEO of Sberbank — Russia's largest bank by assets value — said the country's economy is "definitely and strongly overheated," TASS state news agency reported on Tuesday.

    Gref, who was speaking in parliament, said production capacity was at a historically high level of 84%. He added it's simply "impossible" to cross this production capacity threshold and produce even more.

    At first glance, Russia's economy appears unusually resilient despite the West's sweeping sanctions. It posted 3.6% GDP growth last year.

    However, reports from Russia suggest the country's economy is primarily driven by wartime activities that generate demand for military goods and services, subsidies that steady the economy, and sharp policy-making.

    Rosy GDP figures alone are not a good measure of economic performance during wartime since weapons and munitions don't better the quality of life for Russians or contribute to future economic growth, Sergei Guriev, a former chief economist at the European Bank for Reconstruction and Development, said in January.

    Gref was speaking in the context of Russia's central bank's tight policy. Its key interest rate at 16%. He said the central bank is pursuing a rational policy and that the economy must weather the current high-interest rate cycle, even though it is "unpleasant."

    "There is no other way. We know approximately when rates were not raised for political reasons, and then how it ended," he said, referencing Turkey. The Turkish central bank has hiked interest rates all the way up to 50% to deal with persistent runaway inflation.

    Gref's concerns echo those of Elvira Nabiullina, Russia's top central banker, who issued a warning in December that the country's economy was at risk of overheating.

    Russia's labor crisis

    Russia's inflation is in part due to a labor crisis. Its war in Ukraine is siphoning manpower away from its economy.

    Russia's unemployment rate hit a record low 2.6% in April, while real wages jumped nearly 13% in March from a year ago due to an ongoing labor crunch, official data shows.

    The manpower crunch has gotten so bad that the Russian military is now offering sign-on bonuses and salaries that are so competitive that even the country's lucrative oil and gas industry isn't keeping up.

    This, in turn, contributes to price hikes. Russia's inflation rate stood at 8.17% from May 28 to June 3 — up from 8.07% a week earlier.

    Russia's central bank is slated to announce its next interest rate decision on Friday.

    Read the original article on Business Insider

  • Should you buy the 3 highest-yielding dividend shares in the ASX 200?

    A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.

    Buying high-yield ASX dividend shares is always a risky business. Get the call right, and you can potentially lock in a lucrative stream of passive dividend income for years into the future. Not to mention the potential of valuable franking credits.

    But get the call wrong, and you could be caught in the dreaded dividend trap and see your investment lose value whilst not receiving nearly as much income as you had banked on.

    Whenever an ASX 200 share trades on a high dividend yield it should automatically ring alarm bells. After all, the market doesn’t usually price ASX dividend shares with yields at 8% or higher for long, unless it is expecting that yield to be unsustainable.

    So today, let’s check out three of the highest-yielding shares on the S&P/ASX 200 Index (ASX: XJO), and discuss whether they might be worth buying, or else avoided at all costs.

    A caveat: we’ll just be using ordinary dividends in our calculations today, as including special dividends gives off a distorted projection of what kind of income one can expect to receive going forward.

    The three highest-yielding dividend shares on the ASX today

    Fortescue Ltd (ASX: FMG)

    Fortescue is one of the more well-known dividend shares on the ASX, thanks to the veritable shower of cash it has rained onto its investors in recent years. Today, this ASX 200 iron ore miner is trading on a dividend yield of 8.58%, which typically comes with full franking credits attached too.

    This dividend yield hails from Fortescue’s last two dividend payments, which were worth $1 and $1.08 per share respectively.

    Fortescue’s ability to fund dividend payments rests almost entirely on the going price for iron ore in any given six-month period. As such, this is a difficult stock to anticipate when it comes to future dividends.

    I wouldn’t bank on an 8%-plus yield forever if you buy Fortescue shares today. But I think Fortescue will continue to be one of the highest-yielding stocks on the ASX going forward, barring a major collapse in global iron ore markets.

    Fletcher Building Ltd (ASX: FBU)

    Next up we have ASX 200 share and construction materials company Fletcher Building. Fletcher stock is today trading on a huge trailing dividend yield of 11.31%.

    However, we already know this is an unsustainable yield. This yield comes from the 37.6 cents per share in unfranked dividends that the company forked out over 2023. But in the company’s half-year earnings report from February this year, Fletcher revealed a net loss after tax of NZ$120 million. This resulted in Fletcher suspending its dividend entirely.

    The company’s high yield that we see today is more of a consequence of the near-40% drop its shares have endured over 2024 so far. With no future income on the horizon, this looks like a classic dividend trap to me.

    The ASX 200’s highest-yielding stock: Platinum Asset Management Ltd (ASX: PTM)

    Finally, we get to the highest-yielding ASX 200 share on the market today – fund manager Platinum. Platinum shares are currently trading on a monstrous dividend yield of 13.04% right now. This comes from the total of 13 cents per share that the company has doled out over the past 12 months.

    Again, this looks like it could be a dividend trap. Platinum’s dividends, alongside its funds management business, have been on the slide for years. Back in 2018, Platinum funded an annual total of 32 cents per share in fully franked dividends. But by the 2023 calendar year, this had more than halved to 14 cents.

    Fund managers usually make their profits (and thus fund their dividends) from their underlying base of funds under management (FUM). Unfortunately for Platinum, its FUM has been on a downward trajectory for years now.

    Just last month, the company revealed that its total FUM decreased 11% from $15.46 billion at the end of March to $13.75 billion by the end of April.

    Unfortunately, we have to conclude from this data that Platinum shares are another dividend trap today.

    The post Should you buy the 3 highest-yielding dividend shares in the ASX 200? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Fletcher Building Limited right now?

    Before you buy Fletcher Building Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fletcher Building Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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 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.

  • Guess what new trend is taking off amid the soaring gold price

    A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.

    The gold price has been shining bright lately.

    Really bright.

    The gold price has been trending higher since late October 2022.

    And it really began to lift off in February this year.

    On 15 February, bullion was trading for US$1,992 per ounce. After hitting a series of new all-time highs in May, the yellow metal has retraced a touch and is currently trading for US$2,370 per ounce.

    As you’d expect, that 19% increase has offered heady tailwinds to ASX gold stocks like Northern Star Resources Ltd (ASX: NST), Regis Resources Ltd (ASX: RRL) and Newmont Corp (ASX: NEM), to name a few.

    To give you some idea, since market close on 15 February, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has rocketed 23.0%. That compares to a gain of 3.8% posted by the All Ordinaries Index (ASX: XAO) over the same time.

    Atop from buying gold stocks, a lot of investors are also looking to own the physical metal.

    And with the gold price soaring, a new trend is taking off.

    Rocketing gold price spurs new buying trend

    As Bloomberg reports, South Korean convenience store GS Retail sells all the usual items you’d expect.

    And one more.

    Next to the cash register and checkout snacks, you’ll also find a gold vending machine. The machine sells gold bars ranging in size from 37.5 grams to less than 1 gram.

    Now, this trend first kicked off in 2022 with five GS Retail stores sporting gold vending machines.

    But with the gold price rocketing, the company now has 30 gold vending machines in South Korea.

    According to a GS spokesperson (quoted by Bloomberg):

    Currently, we are seeing about 30 million won [AU$33,000] of sales per month. The gold vending machine draws customers’ attention due to increasing demand for safe haven assets and the spreading trend of micro-investing.

    And the competition has taken note.

    BGF Retail Co, which operates CU convenience stores in the country, started selling 1 gram gold cards on 1 April and sold out within two days.

    “Sales accelerated as CU’s fixed-price gold products became cheaper than the market price,” a CU spokesperson said.

    Commenting on the soaring gold price and rising consumer demand for physical bullion,  Seokhyun Paik, an economist at Shinhan Bank, said:

    Retail investors who put their money into assets such as US Treasury bonds and Japanese yen from last year didn’t get a return they wanted. Then they turned their attention to gold.

    The post Guess what new trend is taking off amid the soaring gold price appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Newmont right now?

    Before you buy Newmont shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Newmont wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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.

  • Core Lithium share price dives another 12%. How low can it go?

    a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.

    It’s looking like this Thursday will be another positive session for ASX shares (touch wood). At the time of writing, the All Ordinaries Index (ASX: XAO) has gained a healthy 0.65% and is back over 8,070 points. But let’s talk about what’s going on with the Core Lithium Ltd (ASX: CXO) share price.

    Core Lithium shares are having a stinker. This ASX lithium stock closed at 12.5 cents yesterday afternoon, but today is trading at 11.1 cents at the time of writing, down a horrid 12% so far this session.  

    What’s worse, Core Lithium shares descended as low as a flat 11 cents each earlier this morning, which marks a new 52-week low for the lithium stock. This new 52-week low is just the latest blow for Core’s long-suffering shareholders though. Get ready for some sobering numbers.

    Over just the past five trading days, the Core Lithium share price has given up more than 17% of its value. Year to date, we’ve seen 58.5% wiped off the value of this company. Investors are also nursing a loss of 89.6% over the past 12 months.

    The Core Lithium share price is down a staggering 94% or so from the company’s last all-time highs of over $1.87 a share that we saw back in late 2022. Check all of that out for yourself below:

    Just how low can the Core Lithium share price go?

    Core Lithium’s more recent woes can be put down to a series of unfortunate events. Firstly, lithium prices have decisively come off the boil over the past 12 months or so. This has put pressure on the prices of almost all ASX lithium shares.

    But Core Lithium has been dealing with some specific issues as well, which seem to have dented investor confidence.

    For one, its flagship Finniss Project suspended lithium production earlier this year as a result of crashing lithium prices.

    The company also posted a net loss of $167.6 million for the six months ending 31 December, which didn’t exactly help boost sentiment. A more recent quarterly update did nothing to assuage these concerns either.

    Back in March, Core also revealed that its CEO Gareth Manderson would abruptly depart. Last month, Core did announce that Paul Brown would take Manderson’s place, but this game of musical chairs at the top of the company also seems to have contributed to the investor apathy we see today.

    So where are Core shares destined to head from here? Well, it might be prudent to keep legendary investor Benjamin Graham’s wise words in mind here. Graham once said, “In the short run, the market is a voting machine but in the long run, it is a weighing machine”.

    Well, investors have been voting the Core Lithium share price down significantly in recent months. But the company doesn’t have a lot of good news that might tip the balance of the market’s weighing machine.

    As such, it’s hard to see what might happen next. But until there’s some good news out of the company, we might not see much improvement in Core Lithium shares from here.

    ASX expert says sell

    That’s certainly the view of one ASX broker right now. As we covered last month, ASX broker Goldman Sachs doesn’t see Core restarting its Finniss mine anytime soon. Goldman gave the Core Lithium share price a sell rating alongside a 12-month share price target of 11 cents per share.

    Probably not the news that Core investors want to hear right now, but let’s see if this company can prove its detractors wrong.

    At the current Core Lithium share price, this ASX lithium stock has a market capitalisation of $267.11 million.

    The post Core Lithium share price dives another 12%. How low can it go? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Core Lithium Ltd right now?

    Before you buy Core Lithium Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Core Lithium Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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 Goldman Sachs Group. 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.

  • Life 360 shares halted ahead of Nasdaq IPO

    A laughing woman holds her hands up, indicating a share price racing higher ahead of a trading halt on the ASX market

    Life360 Inc (ASX: 360) has requested a trading halt today pending an announcement regarding its proposed US initial public offering (IPO) of new shares of common stock on Nasdaq.

    Investors have been buying up the Life360 shares in recent months, doubling the share price since the beginning of the year. At the time of writing, the Life360 share price is trading at $14.69.

    Rapid growth

    Life360 is a leading technology platform connecting millions of people worldwide. The Life360 mobile application offers features including communication, driving safety, digital safety, and location sharing.

    The company has experienced rapid growth in recent years, particularly in the United States. Life360’s subscription revenue rose from US$86.6 million in 2021 to US$220.8 million in 2023. Management believes its core subscription revenue could continue growing by at least 20% in 2024.

    While the company is still incurring a net loss, it has reduced from $33.6 million in 2021 to $28.2 million in 2023.

    Listing on Nasdaq

    Earlier this week, Life360 announced the launch of its US IPO, offering 5,750,000 shares of common stock. The company plans to use the proceeds from the offering to enhance its financial flexibility, create a public market for its stock in the US, and for general corporate purposes.

    Once completed, the company expects to trade on Wall Street under the ticker code Life360 Inc (NASDAQ: LIF). The company’s Chess Depositary Interests (CDIs), representing shares of common stock, will remain listed on the Australian Securities Exchange (ASX).

    What does this mean for ASX investors?

    As my colleague James highlighted, analysts at Bell Potter believe this could be positive news for Life360 shares and its current shareholders. The broker previously noted:

    Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2, and a U.S. listing at some stage in the next 12 months.

    We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the much higher multiples of comps like Reddit (NYSE: RDDT).

    Bell Potter has a buy rating and a $17.75 price target on Life360 shares.

    The post Life 360 shares halted ahead of Nasdaq IPO appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Life360 right now?

    Before you buy Life360 shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Kate Lee 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 Life360. 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.

  • Five Below bought so many Squishmallows that it hurt the discount company’s bottom line

    Squishmallows at a store in London in 2022.
    Squishmallows at a store in London in 2022.

    James Manning for PA Images

    • Five Below's sales were hurt due to overstock of Squishmallows and price-sensitive customers.
    • Inflation has made customers prioritize food and drink items, said Five Below CEO.
    • Low-cost retailers say they're seeing a slowdown in discretionary spending.

    Five Below said its sales were hurt this quarter because it bought far more Squishmallows than its customers wanted.

    The popular soft toys went viral in the years after their 2017 launch, becoming "Gen Z's Beanie Babies," Business Insider reported in 2020.

    On Wednesday, Five Below cut its forecasts for the year because of price-sensitive customers who are prioritizing buying food, candy, and drinks over Squishmallows. Outdated inventory, like older Squishmallows, is also hurting Five Below, chief executive officer Joel Anderson said in an earnings call on Wednesday.

    "The quarter solidified that consumers are feeling the impact of multiple years of inflation across many key categories, such as food, fuel, and rent, and are therefore far more deliberate with their discretionary dollars," Anderson said.

    Shares of the retailer were down nearly 4% at closing time and have fallen 38% year-to-date.

    Just months earlier, Squishmallows looked like a good bet for Five Below, which lists 40 items from the brand on its website. The product was on Five Below's list of "strong performers" for 2023, Anderson said on a March earnings call.

    However, a rise in cost of living around the US is hitting Five Below, like other low-cost retailers who are seeing a slowdown in non-essential spending.

    A rise in expenses means that Americans are saving less — the personal savings rate slumped to 3.2% in March, according to government data, down from 5.2% a year ago.

    Over the last month, McDonald's, Burger King and Wendy's all announced meals at or under $5 to win back penny-pinching customers.

    Read the original article on Business Insider