Stock Pick

  • 2 ASX All Ords shares smashing new multi-year highs on big news

    The ASX All Ordinaries index may be having a subdued session, but that hasn’t stopped two shares from scaling new heights.

    Here’s why these shares are rising today:

    Altium Ltd (ASX: ALU)

    The Altium share price has hit a new record high of $68.20 on Tuesday.

    Investors have been buying the electronic design software company’s shares after its takeover by Japan’s Renesas took another big step towards completion.

    The ASX All Ords share advised that the Committee on Foreign Investment in the United States (CFIUS) has approved the deal after concluding that there are no unresolved national security concerns with respect to the transaction.

    This approval by CFIUS was the last outstanding regulatory authorisation required to complete the transaction. Shareholders will now vote on the deal at a meeting on 12 July. If everything goes to plan, the $68.50 per share takeover will complete on 1 August.

    Superloop Ltd (ASX: SLC)

    The Superloop share price has hit a multi-year high of $1.65.

    The catalyst for this has been the release of a trading update from the telco this morning.

    Superloop advised that it has continued to perform very strongly in the high value segment of the residential broadband market. It notes that its high-speed plans (100Mbps or greater) now exceed 50% of its base.

    The good news is that it expects this trend to continue, driven by consumer demand for higher internet speeds, reliability, and value.

    In light of its strong performance, management expects its underlying EBITDA for FY 2024 to be at or above the top end of the $51 million to $53 million guidance range.

    It also advised that FY 2024 cash capex remains on track for the $25 million to $27 million range previously guided. This includes $5 million in additional capex associated with the recent Origin Energy Ltd (ASX: ORG) and AGL Energy Limited (ASX: AGL) contract wins, together with the accelerated customer growth in the Consumer segment.

    Speaking of Origin, the energy retailer has reached “go live” with Superloop. This means that from today, Superloop’s white label offering will underpin new sign-ups for Origin home broadband services.

    The ASX All Ords share highlights that this milestone has been reached in under four months. It believes the speed of this achievement is testament to the capability of the Superloop platform and the strong collaboration between project teams.

    The post 2 ASX All Ords shares smashing new multi-year highs on big news appeared first on The Motley Fool Australia.

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

    Before you buy Altium 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 Altium 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 24 June 2024

    More reading

    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 Altium. 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.

  • Malaysia’s $100 billion ghost town is good for at least one thing: filming documentaries and shows like Netflix’s ‘The Mole’

    a mall without people in malaysia
    Forest City's mall was empty when Business Insider visited last year.

    Marielle Descalsota/Business Insider

    • Forest City, Malaysia was used as a set for a Netflix reality show, "The Mole."
    • Planned as a $100 billion mega-complex, Forest City has become a ghost town with few residents.
    • Developers face financial issues, because less than 15% of the project is completed.

    Malaysia's $100 billion ghost city was meant to house 700,000 people. After few people moved in, developers tried in vain to make it into a tourist hub.

    Now, the mega-development is serving as a set for a handful of reality shows and documentaries.

    The empty city, just over Singapore's western border, was used for an episode on the second season of Netflix reality show "The Mole," which debuted last week.

    The competition-style reality series follows 12 contestants completing challenges while one of them secretly sabotages the other players. They race to grow a money pot prize and uncover who the traitor is among them.

    The show's 10-episode second season was filmed entirely in Malaysia and features Forest City, Kuala Lumpur, and Tioman Island. Filming started in July 2023 and lasted for six weeks, according to local media.

    The contestants, who come from various professional backgrounds, complete treasure hunts, free dive, and abseil down a 38-story building in Forest City.

    In the third episode of the season, show host and former NPR journalist Ari Shapiro introduced Forest City: "A perfect spot for a glamorous holiday home, for those who can afford it. And most of the year, they lie empty."

    The city was also featured in recent shows.

    South Korea's KBS filmed an episode of the travel reality series "Battle Trip," while German ProSieben TV filmed a short documentary about Forest City. An Austrian documentary titled "Hungry: Tipping the Scales" shot there.

    Announced in 2006, the luxury housing project was meant to feature apartments, a waterpark, and hotels. The whole project cost its developers $100 billion.

    But, eight years after construction began, only a few thousand people live there. The project has turned into a ghost town — and a major liability for its developer, Country Garden, which is facing sizable financial issues elsewhere.

    As of last year, only about 15% of the planned property had been completed, while most finished apartments appear never to have been lived in.

    Netflix and Forest City did not respond to requests for comment.

    Read the original article on Business Insider

  • A millennial couple moved to Bali 2 years ago. Making friends was one of the hardest parts.

    A man and a woman sitting together at an outdoor table in front of a pool.
    Nadia Rose and Steve Willis moved to Bali in 2022.

    Nadia Rose

    • Nadia Rose and her partner, Steve Willis, moved from Kuala Lumpur, Malaysia, to Bali in July 2022.
    • The couple say that adjusting to their new lives on the island was more challenging than they had expected.
    • Here are three things they've learned about life as expats in Bali.

    Thanks to its beautiful beaches, lush rainforests, and rich heritage, Bali is a popular vacation destination that draws tourists from all around the world.

    In recent years, the Indonesian island has even become a choice location for expats, especially digital nomads and those who want to escape the city.

    Nadia Rose and her partner, Steve Willis, moved from Kuala Lumpur, Malaysia's capital, to Bali in July 2022.

    It took them some time to adjust to their new lives on the island, and the experience was more challenging than they had expected. Here are three things they've learned as expats in Bali so far.

    1. Things in Bali take time

    Unlike in Kuala Lumpur, the capital of Malaysia — and other bustling cities around the world — the pace of life in Bali is much slower.

    Expect to wait for things to get done, especially for bureaucratic processes and even getting around in traffic, Rose told Business Insider.

    "Because I was so used to living in a city, I was so used to efficiency," Rose said. "Here, you just have to lean back and allow things to unravel, and it will unravel in its own time."

    2. Friendships can be hard to forge

    It might be harder to form lasting friendships in Bali than you think. The island can feel like a very transient place, with all the people who come and go from Bali, especially within the expat community, Rose said.

    "Many friends that I've made six months ago are no longer here, so you feel like you have to build new friendships over and over again," she said.

    Because of that, she had to constantly put herself out there to meet new people, she added.

    For almost a year after they arrived in Bali, Rose said they were so caught up in trying to settle down into their new lives that they weren't able to make any new friends.

    "I was like, 'Oh, it's too hard. I tried three times, and it just didn't work out.' I could have given up on it, but I didn't. It takes time," Rose said. "Without being vulnerable and open, it's just going to be difficult."

    The couple says that Facebook Groups have been a great way to meet new people.

    "I sometimes put up a post saying 'Hey, if you have similar interests, I'd love to meet up at this restaurant.' People turn up, and we'll all have lunch together," Rose said.

    The couple also attends events, which they find through Nomeo, an online platform that allows people to set up events for activities they're passionate about.

    "It could be a meet-up for female entrepreneurs, or even for a day of fun at the beach. There are multiple events happening daily, and you just show up," Rose said.

    3. Things in Bali can be as cheap or as expensive as you'd like

    There's a common refrain that things in Bali are cheap — and that's not necessarily true, Rose said.

    "Coming from Malaysia, it is extremely expensive," she said. "Especially for rent, if you haven't got a budget in mind, it can balloon, and you'll end up spending more than you think." The budget the couple had originally set had to be raised by a few hundred dollars after they realized it was too low.

    Real estate prices have spiked in Bali ever since Bali's borders reopened after the pandemic. According to the latest April data from the Indonesian real-estate platform Rumah123, Denpasar — the capital city of Bali — saw a 17% increase in housing prices year-on-year.

    While rent still forms the largest portion of their expenditures, Rose says that there are still many affordable food options, especially if they eat local fare.

    A plate of nasi goreng — a traditional fried rice dish — can cost less than $2 at local shops. But with the influx of high-end restaurants, even the price of that dish has been spotted on a menu for over $150, per The Bali Sun.

    "So, lifestyle-wise, depending on what you choose, the beauty of Bali is that you have options to meet every budget," she said.

    Areas popular with tourists, such as Seminyak and Canggu tend to be pricier than other parts of the island.

    "It depends on where you're living on the island and what you expect out of it, and this applies to gyms and even homes. You can get all the amenities you desire, but you have to be ready to pay for it," she said.

    Read the original article on Business Insider

  • These 2 ASX 200 stocks just scored substantial broker upgrades

    Broker looking at the share price.

    Two S&P/ASX 200 Index (ASX: XJO) stocks just scored substantial broker upgrades.

    One of the companies has already been on a tear over the past year, while the other has struggled.

    But according to top brokers, the next 12 months could see them deliver share price gains of 11% and 16%, respectively. And that doesn’t include the dividends they both pay.

    Which ASX 200 stocks are we talking about?

    Read on!

    (Broker data courtesy of The Australian.)

    Two ASX 200 stocks to buy

    The first ASX 200 stock just earning a broker upgrade is financial technology company Hub24 Ltd (ASX: HUB).

    The Hub24 share price is down 0.2% in late morning trade today, at $45.98. Shares are up a whopping 76% in a year, making it the third-best-performing ASX 200 share in FY 2024. Hub24 shares also trade on a fully franked trailing dividend yield of 0.8%.

    Despite the recent share price surge, Bell Potter foresees more outperformance ahead. The broker gave the ASX 200 stock a buy rating with a $53.20 price target. That’s almost 16% above current levels.

    At its most recent half-year results, Hub24 reported a 14% year on year increase in total revenue, which came in at $156.7 million for the six months.

    Which brings us to the second ASX 200 stock that just scored a broker upgrade, property and infrastructure group Lendlease Group (ASX: LLC).

    The Lendlease share price is up 0.9% today at $5.68 a share. Lendlease shares are down 28% in a year. The stock also trades on a partly franked trailing dividend yield of 3.1%.

    Citi believes that the sell-off has run its course. The broker raised Lendlease to a buy rating, while maintaining its $6.30 price target. That represents an 11% potential upside from the current share price.

    Citi is upbeat about Lendlease’s ongoing international asset sales, expected to bring in some $4.5 billion.

    The broker said this week’s AU$480 million (US$320 million) sale of the ASX 200 stock’s US Military Housing business came in ahead of expectations.

    According to Citi analyst Suraj Nebhani (quoted by The Australian):

    While there is uncertainty around the future capital receipts from Lendlease’s asset sale program, we see the shares as sufficiently discounted here and providing strong value upside.

    Moreover, the progress on asset sales and capital received to date has been encouraging, and we therefore see upside to Lendlease shares from current pricing.

    The post These 2 ASX 200 stocks just scored substantial broker upgrades appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Hub24 Limited right now?

    Before you buy Hub24 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 Hub24 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 24 June 2024

    More reading

    Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why is the RPM Global share price crashing 22% today?

    A woman screams and holds her hands up in frustration.

    The RPMGlobal Holdings Ltd (ASX: RUL) share price is having a difficult time on Tuesday.

    In early trade, the mining software solutions provider’s shares were down as much as 22% to $2.17.

    Its shares have recovered a touch since then but remain down 16% to $2.33.

    Why is the RPM Global share price crashing?

    Investors have been hitting the sell button today after the company released a trading update.

    According to the release, RPM Global sold $50.4 million in software Total Contracted Value (TCV) in the second half of FY 2024. This brings its expected full year TCV to $77 million, which represents a 9.2% increase year on year.

    This TCV comprises $75.4 million in subscription licenses (FY 2023: $65.8 million), $1.3 million in perpetual licenses (FY 2023: $2.9 million), and new maintenance of $0.3 million (FY 2023: $1.8 million).

    Management notes that the $75.4 million in TCV software subscription sales will deliver annually recurring revenue (ARR) of $9.2 million. As of 1 July, the total value of ARR is $62 million, comprising $50.7 million from subscriptions and $11.3 million from maintenance.

    It also highlights that as its software becomes more and more mission critical, mining companies are asking for longer subscription terms to ensure certainty of supply. For example, in the second half of FY 2024, the company sold $18.4 million in software subscriptions with a committed term of eight years and $6.4 million with a committed term of ten years.

    Given how the above reads very positively, investors may be wondering why the RPM Global share price is sinking today.

    Well, this appears to have been driven by softer than expected profitability during the year.

    Softer profits

    The release reveals that gross revenue for FY 2024 is expected to finish between $113 million and $114 million. This is up from $98.4 million in FY 2023.

    EBITDA (before management incentives) is expected to be in the range of $18.7 million to $19.3 million, which is up from $15 million last year.

    And finally, profit before tax (pre management incentives) is forecast to be in the range of $14 million to $14.5 million. This is up 52% to 58% year on year from $9.2 million.

    This was lower than forecast, which is weighing on the company’s shares today. Management commented:

    The lower than forecasted profitability is due to reduced perpetual license sales and the timing of subscription licenses signed during the second half of FY2024.

    It is also worth noting that not all of these profits will be retained, with the company intending to reward its employees handsomely. It advised:

    Given the growth in TCV, revenue and profitability in FY2024, the Company expects incentives (shared across an increased number of employees) to be in the range of $3.5 million to $3.9 million for the FY2024 year (FY2023: $3.0 million).

    Despite today’s weakness, the RPM Global share price remains up over 60% since this time last year.

    The post Why is the RPM Global share price crashing 22% today? appeared first on The Motley Fool Australia.

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

    Before you buy Rpmglobal Holdings 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 Rpmglobal Holdings 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 24 June 2024

    More reading

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

  • Can ASX 200 tech shares produce another strong performance in FY25?

    two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.

    S&P/ASX 200 Index (ASX: XJO) tech shares delivered strong returns in FY24. There are multiple quality names within the ASX 200 that have created value for shareholders.

    Some of the biggest names in the tech sector include Wisetech Global Ltd (ASX: WTC), REA Group Ltd (ASX: REA), Xero Ltd (ASX: XRO), CAR Group Limited (ASX: CAR), SEEK Ltd (ASX: SEK) and TechnologyOne Ltd (ASX: TNE).

    The performance of each individual company’s operational growth and financials will obviously have an impact on how the share prices of the ASX 200 tech shares track in FY25. Aside from that, I think there could be two (foreseeable) important factors.

    Interest rates

    Interest rates usually greatly impact valuations because if investors can get a good return from safe assets like bank accounts and bonds, then ‘risk’ assets like shares should be priced at a lower level. For example, high interest rates, in theory, should mean a lower price/earnings (P/E) ratio than if interest rates were lower.

    One of the world’s greatest investors, Warren Buffett, once said:

    The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

    Some investors may have already ‘priced in’ interest rate cuts from the US Federal Reserve or the Reserve Bank of Australia (RBA) which is likely partly why we saw such a strong rally of ASX 200 tech shares during FY24.

    Based on Australia’s latest inflation numbers and RBA commentary, it could be a while yet before there’s a rate cut.

    Valuations too high?

    Interestingly, some high-profile, high-performing investors have started reducing their exposure to technology.

    The Australian Financial Review recently reported that fund manager GQG Partners Inc (ASX: GQG) has made some “aggressive moves” to produce the next stage of strong returns (in FY25).

    The newspaper reported that tech stocks were a major factor in GQG’s recent investment fund performance. However, in the last few months, the fund has reduced its exposure to the tech sector by more than half – from 43% in the portfolio to 21%. This decision was made because it seemed that the significant market interest in AI stocks was not spreading to other sectors as widely as expected.

    GQG’s Brian Kersmanc said:

    From the semiconductor standpoint, things weren’t broadening out as much –
    spending was really isolated to that cluster around AI and data centres.

    Markets also started pricing in some really blue sky scenarios for these stocks, so
    although optically they looked cheap on a price-to-earnings basis, to get to the
    estimates that were prevailing in the market, you had to get to some pretty
    aggressive assumptions.

    The last time GQG significantly cut its tech exposure was when it rotated into energy stocks, according to the AFR. After that, the NASDAQ plunged 33%, and commodity prices soared after Russia invaded Ukraine. The ASX 200 tech shares also had a bad time in 2022.

    It’s an interesting sign that GQG has decided to take profits from its tech exposure. Even if tech stocks don’t crash in FY25, this could suggest that the ASX 200 tech shares may not see the same level of returns in FY25 as FY24 because we’ve already seen the expansion of their valuations (such as the P/E ratios).

    Better-than-expected earnings growth and/or reducing interest rates could be necessary for another good year.

    The post Can ASX 200 tech shares produce another strong performance in FY25? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Carsales.com right now?

    Before you buy Carsales.com 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 Carsales.com 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 24 June 2024

    More reading

    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 REA Group, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Car Group, REA Group, Seek, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Trump is already testing the limits of the SCOTUS immunity ruling and is trying to get his Manhattan conviction thrown out

    Republican presidential candidate, former U.S. President Donald Trump participates in the CNN Presidential Debate at the CNN Studios on June 27, 2024 in Atlanta, Georgia.
    Republican presidential candidate, former U.S. President Donald Trump participates in the CNN Presidential Debate at the CNN Studios on June 27, 2024 in Atlanta, Georgia.

    Justin Sullivan/Getty Images

    • Former President Donald Trump is trying to capitalize on the SCOTUS presidential immunity ruling.
    • His lawyers asked a Manhattan judge if they can move to toss his recent criminal conviction.
    • Trump's sentencing for the hush-money trial is set for July 11.

    It took less than a day for former President Donald Trump's attorneys to test the Monday Supreme Court ruling on presidential immunity.

    Trump's lawyers sent a letter to the judge who oversaw the New York hush-money trial in which the former president was found guilty of 34 felony counts, according to The New York Times, which obtained the letter. The Associated Press later confirmed The Times' reporting.

    The attorneys asked the judge if they could move to have the former president's criminal conviction thrown out, citing the Supreme Court's decision issued Monday morning that found presidents are largely immune from prosecution over official actions taken while in office.

    An attorney for Trump did not immediately respond to requests for comment from Business Insider.

    A spokesperson for Manhattan District Attorney Alvin Bragg, whose office prosecuted the hush-money trial, declined to comment.

    The letter sent by Trump's lawyers was not set to be made public until Tuesday, The Times reported.

    Trump's sentencing for his hush-money trial is set for July 11.

    It's unclear how successful Trump's efforts to overturn his conviction will be. The Times reported that the deadline for filing motions after the trial passed in June.

    Neama Rahmani, a former federal prosecutor and president of West Coast Trial Lawyers, told Business Insider that Trump's attempt to overturn his conviction is "a long shot."

    The Manhattan trial dealt primarily with actions Trump took before he was president, centering on hush-money payments made to porn actor Stormy Daniels ahead of the 2016 election.

    "These were payments made from Trump's personal account, and the Trump Organization employees involved — Michael Cohen, was his personal attorney," Rahmani said.

    Rahmani predicted that Judge Juan Merchan, who presided over the hush-money case, would deny a motion to overturn Trump's conviction. Trump's attorneys would likely then ask for a pause on sentencing while the motion works its way through appeals. Merchan could stay the entire case while the motion is litigated or opt to move forward with sentencing regardless, Rahmani said.

    "Even if he substantially doesn't have a good argument, Trump's approach has always been to delay," Rahmani said.

    Read the original article on Business Insider

  • This picturesque Swedish town announced plots of land for pennies — and it sparked chaos with thousands of inquiries

    An aerial view of Götene
    The Swedish town of Götene has a population of about 5,000.

    Marcus Lindstrom

    • A small Swedish town is trying to boost population numbers by selling cheap land.
    • The lakeside town of Götene has received thousands of calls from prospectives buyers for 30 plots.
    • Local authorities have paused the program until early August, when it will likely reopen as a bidding war.

    An idyllic Swedish town may have gotten more than it bargained for after thousands of interested would-be residents responded to authorities' efforts to boost population numbers in the picturesque locale.

    The town of Götene, located about 200 miles southwest of Stockholm, went viral last month after announcing it would sell plots of land at prices starting at less than 10 cents per square meter.

    The promotion aims to lure new residents to the rural region amid a national housing crisis, mounting interest rates, and declining birth rates, Götene Mayor Johan Månsson told CNN.

    Götene offers residents a quiet slice of rural Sweden, with about 5,000 full-time residents and 13,000 people living in the surrounding municipality. The lakeside locale sits beside the largest lake in the EU and is a stone's throw away from a nearby mountain town, as well as home to two UNESCO-rated sites.

    The local government in Götene is selling 30 plots of land that have been on the market for "many, many years," Månsson told CNN.

    The land comes as-is, and the only requirement as of last week was that the lucky buyers start building a home on the site within two years of purchase, according to the outlet. The current rules permit people to build a full-time residence or a dream vacation home on the land, though Månsson said that could change.

    When the land first went on sale in May, Månsson told CNN that only about 30 interested buyers initially reached out. Within weeks, however, the program went viral, and "thousands and thousands" of prospective new buyers started ringing Götene city hall, the mayor said.

    "We have two people in our phone exchange in city hall, and they have been very sweaty over the past few days," Månsson told the outlet. "We're basically in crisis mode."

    The land program has quickly become a sensation, with calls coming in from around the world, Månsson said.

    Local authorities ultimately decided to pause the program until early August in order to develop a plan to handle the incoming requests, the outlet reported.

    Four buyers managed to snatch up four of the ultracheap plots before chaos broke out, Månsson said.

    According to CNN, the program will most likely transition to a bidding process for the remaining land when applications reopen next month.

    More and more Americans are turning to Europe in hopes of finding affordable homes.

    Read the original article on Business Insider

  • 3 ASX small-cap shares I think have explosive growth potential

    three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.

    Investing in smaller companies, often called small-cap shares, is quite exciting for many investors. These companies, usually valued between $200 million and $2 billion, have a great potential to grow quickly.

    What attracts people to ASX small-cap shares is their ability to respond quickly to new opportunities or changes in the market. This agility can lead to rapid growth. However, remember that while the opportunity for big rewards exists, these stocks can also be quite volatile. Investing in them comes with a mix of high hopes and risks.

    With that caveat, let’s dive into 3 ASX small-cap shares that I think have promising growth potential.

    PWR Holdings (ASX: PWH)

    PWR Holdings is a great example of a company using its strong skills in one area to grow into other industries.

    Founded in 1997 by Kees Weel, who is still the CEO today, PWR Holdings has become a top player in advanced cooling systems. The company is a global leader in this niche, providing high-performance products for motorsport, automotive, aerospace, and defence industries.

    While the company is best known for its motorsports division, the aerospace and defence industry is growing fast.

    In 1H FY24, the company reported robust results, as revenue grew by 22.2% to $64.2 billion, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 27.2% to $18.4 billion. While the motorsport sector’s 19% revenue growth was solid, the real surprise came from the aerospace and defence sector which saw an impressive 124% growth in revenue. The sector represented 12% of the total revenue, up from 7% a year ago.

    Over the past decade, PWR Holdings has delivered stable earnings growth, superior profitability, and high return-on-equity ratios.

    The PWR Holdings share price closed Monday at $10.94. Its shares are valued at a price-to-earnings (P/E) ratio of 34x on FY25 earnings estimates using S&P Capital IQ.

    VEEM Ltd (ASX: VEE)

    If there’s a leader in PWR Holding for the global cooling systems market, there’s also VEEM for the global marine precision parts market. VEEM introduced products that aimed to enhance efficiency and safety within its industry.

    Founded in 1968, VEEM makes advanced marine technology and engineering parts, servicing both the defence and commercial marine sectors. Over the years, VEEM has established a strong reputation for innovation and quality, positioning itself as a key player in the global marine technology market.

    This expertise and market leadership led to two exciting opportunities for VEEM. Several years ago, VEEM launched VEEM gyrostabilisers, an innovative product that replaces traditional propeller-based stabilisation. While the product’s revenue was just $5 million in 1H FY24, it brings a big market potential. Management estimates its total addressable market would be US$1.1 billion for new builds.

    The other exciting venture is VEEM’s partnership with Sharrow Engineering. Last year, the two companies announced an exclusive agreement to adapt Sharrow’s design to a wider range of vessels. While it’s still early days, VEEM saw a positive outcome from initial testing and plans to launch this product line throughout FY25.

    VEEM is tightly held by insiders, with Managing Director David Miocevich owning over 50% of the company.

    The VEEM share price closed Monday at $1.72. According to S&P Capital IQ, its shares are valued at an FY25 P/E ratio of 30x.

    Smart Parking Ltd (ASX: SPZ)

    Smart Parking is the smallest company of the three, with a market capitalisation of $173 million, which puts it at the border between small-caps and micro-caps.

    The company is growing fast by scaling up its operations. This company has presence in Australia, New Zealand, the UK, Germany, and Denmark.

    As the name suggests, Smart Parking specialises in smart parking technology, which helps drivers find available parking spaces more easily and efficiently. Its systems include real-time parking information, automated payment options, and advanced monitoring tools. Smart Parking aims to make parking simpler and more convenient for both drivers and parking operators.

    The number of parking sites managed by Smart Parking has grown from 250 in June 2017 to 1,219 in December 2023. During this period, revenue rose from $24.8 million in FY17 to 45.2 million in the last 12 months. As it built scale and operational efficiency, EBITDA margins improved from just 4% in FY17 to over 20% in the last 12 months to December 2023.

    In terms of total addressable markets, management estimates there are approximately 45,000 sites in the UK, 90,000 sites in Germany, and 10,000 sites in Denmark. That’s a total of 145,000 parking sites, giving a long runway for growth.

    The Smart Parking stock closed at $0.48 on Monday, implying a FY25 P/E ratio of 19x, according to S&P Capital IQ.

    The post 3 ASX small-cap shares I think have explosive growth potential appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pwr Holdings right now?

    Before you buy Pwr Holdings 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 Pwr Holdings 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…

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

  • Why are Liontown shares in a trading halt today?

    Liontown Resources Ltd (ASX: LTR) shares won’t be going anywhere on Tuesday.

    That’s because the lithium developer has entered a trading halt this morning.

    Why are Liontown shares in a trading halt?

    Liontown requested the trading halt as it prepares to make an announcement relating to the funding of the Kathleen Valley Lithium Project in Western Australia. Its request states:

    The trading halt is requested pending an announcement by the Company in connection with funding arrangements. Liontown considers that the trading halt is necessary to ensure the Company can manage its continuous disclosure obligations.

    As things stand, Liontown’s shares are expected to be offline until the commencement of trading on Thursday 4 July.

    What is happening?

    It remains unclear what its funding arrangements involve. But shareholders certainly will be hoping that it includes debt and not equity.

    As covered here, Liontown shares were the worst performers on the ASX 200 index in the last financial year. During the 12 months, the lithium developer’s shares lost approximately 70% of their value. So, this really would not be a good time to raise money and dilute its shareholders materially.

    But debt financing is easier said than done. Earlier this year, Liontown warned that weak lithium prices were causing issues when it came to financing the Kathleen Valley Lithium Project.

    However, it then entered into a A$550 million debt facility agreement in March with a syndicate of lenders. This includes Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Export Finance Australia.

    The company didn’t expect to need to draw down on the debt facility until early in third quarter of 2024 (i.e. now). However, before then, there were remaining conditions that needed to be satisfied.

    And as we have had no update since this announcement about the conditions being satisfied, it seems probable that this trading halt relates to this facility. These conditions include:

    [D]emonstrating compliance with customary tests; providing a Base Case Financial Model (BCFM) based off, amongst other things, independent price forecasts and management forecasts of production, capital and operating costs, and which demonstrates compliance with financial ratios; and, entry into key project tripartite agreements.

    Since the agreement was signed, lithium prices have continued to weaken. Furthermore, analysts are now predicting that prices remain at these levels for the foreseeable future. It will be interesting to see how this impacts its BCFM and thus its eligibility for the debt facility.

    All being well, everything will be running smoothly and this is just a routine halt. We will find out if that is the case later this week when Liontown shares return to trade.

    The post Why are Liontown shares in a trading halt today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Liontown Resources right now?

    Before you buy Liontown Resources 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 Liontown Resources 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 24 June 2024

    More reading

    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.