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  • Why AIC Mines, Fletcher Building, Nufarm, and Wesfarmers shares are dropping

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week deep in the red. The benchmark index is currently down 1.1% to 7,726.6 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    AIC Mines Ltd (ASX: A1M)

    The AIC Mines share price is down over 9% to 53.5 cents. This has been driven by the completion of the copper miner’s institutional placement this morning. AIC Mines revealed that it has received firm commitments for $57.2 million from institutional and sophisticated investors for a placement of 110 million new shares at an issue price of $0.52 per new share. Management advised that the proceeds will be applied primarily to the advancement of the Jericho link drive. AIC Mines’ shares are up 90% since the start of March.

    Fletcher Building Ltd (ASX: FBU)

    The Fletcher Building share price is down 4% to $2.83. This building materials company’s shares jumped on Thursday amid rumours that it could be a takeover target of US-based global investment firm Platinum Equity. However, with no offer being made public today, it seems that some investors have decided to take a bit of profit off the table. Fletcher Building’s shares are down almost 40% since this time last year.

    Nufarm Ltd (ASX: NUF)

    The Nufarm share price is down a further 2% to $4.63. Investors have been selling this agricultural chemicals company’s shares since the release of its half year results this week. Nufarm’s profits fell well short of expectations during the half. One broker that wasn’t overly impressed with its performance was Bell Potter. In response to the result, the broker retained its hold rating and slashed its price target to $5.10 from $6.35. The broker commented: “We see FY24e as an abnormally difficult year.”

    Wesfarmers Ltd (ASX: WES)

    The Wesfarmers share price is down almost 4% to $63.88. This appears to have been driven by the release of a bearish broker note out of Morgan Stanley. According to the note, the broker has downgraded the Bunnings owners’ shares to an underweight rating with a $56.20 price target. The broker believes that Wesfarmers’ shares are expensive compared to peers and sees limited scope for an earnings upgrade to justify the premium. In light of this, it believes that Wesfarmers’ shares could be dragged lower in the near future. Morgan Stanley’s price target implies potential downside of 12% from current levels.

    The post Why AIC Mines, Fletcher Building, Nufarm, and Wesfarmers shares are dropping appeared first on The Motley Fool Australia.

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

    Before you buy Aic Mines 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 Aic Mines 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 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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why ASX 200 investors shouldn’t expect interest rate cuts until 2025

    red percentage sign with man looking up which represents high interest rates

    S&P/ASX 200 Index (ASX: XJO) investors who’ve been holding their breath for interest rate cuts in 2024 may wish to exhale.

    Patience, it seems, is the name of the game for any pending rate cuts from either the Reserve Bank of Australia or the US Federal Reserve.

    Which isn’t all bad news.

    You see, a good part of the entrenched inflation issues that are pushing out the likely timing of interest rate cuts stems from the strength of the Aussie and the US economies. And that strength is being reinforced by the rapid rise of artificial intelligence.

    The latest Purchasing Managers’ Index (PMI) data out of the US again tells me that ASX 200 companies and investors are unlikely to see any central bank easing until 2025.

    Yesterday’s data (overnight Aussie time) revealed that business activity in the world’s number one economy increased in May at the fastest rate in two years. US labour market figures also recently came in stronger than expectations.

    Commenting on the ongoing strength of the US economy, National Australia Bank Ltd (ASX: NAB) said (quoted by The Australian Financial Review):

    US yields rose, the USD was higher and US equities fell. Stronger PMI data out of the US was the proximate driver, and while those did come in much stronger than expected, the context of upside surprises in US economic data having been rare for the last month or so may have supported the size of the market reaction.

    The market reaction NAB is referring to includes the 0.7% overnight decline on the S&P 500 Index (SP: .INX). And those headwinds see the ASX 200 down 1.1% in afternoon trade today.

    ASX 200 shares can boom amid high rates

    It’s worth recalling that in 2023, a year which saw the RBA and the Fed hiking interest rates aggressively, the ASX 200 gained 9.3%. If we add in the dividends many companies paid, then the accumulated gain in 2023 was around 13.9%.

    As for the S&P 500, it soared 24.2% in 2023 and is up another 10.4% so far in 2024. And according to JPMorgan Chase & Co, the S&P 500 is likely to continue breaking record highs this year, fuelled by the AI boom.

    “With the AI-theme still delivering and the macro hypothesis intact, we are likely to continue to make new all-time highs,” the broker said (quoted by Bloomberg).

    With that in mind, here’s what the experts are saying about the prospects for rate cuts in 2024.

    Odds of 2024 interest rate cuts fading

    Goldman Sachs CEO David Solomon has essentially written off any chance that ASX 200 investors might see the Fed cut rates this year.

    According to Solomon (courtesy of the AFR)

    I still don’t see the data that’s compelling to see we’re going to cut rates here…

    If you’re talking to CEOs that are running businesses that really deal with what I’ll call the middle of the American economy, those businesses have been starting to see change in consumer behaviours.

    Inflation is not just nominal. It’s cumulative, and so everything is more expensive. You’re starting to see the consumer, the average American, feel this.

    Indeed, the minutes from the 1 May Federal Open Market Committee reinforce my belief that ASX 200 investors shouldn’t expect a rate cut until 2025.

    Those minutes revealed members noted “that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2%” amid “disappointing” inflation prints this year.

    Commenting on the Fed minutes, FHN Financial’s Chris Low said (quoted by Bloomberg), “The minutes are a reminder that while the Fed does not see another rate hike as likely, and certainly does not see it as a base-case, it will not rule out hikes if inflation does not behave.”

    With that said, ASX 200 investors could still see a Fed rate cut in September.

    “Fed members have indicated they want to see more progress on inflation. Fortunately, the US economy still looks robust enough to take an extended rate pause. We continue to look for the first Fed rate cut in September,” Strategas Securities’ Don Rissmiller said.

    The post Why ASX 200 investors shouldn’t expect interest rate cuts until 2025 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in S&P/ASX 200 right now?

    Before you buy S&P/ASX 200 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 S&P/ASX 200 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.

  • Tesla needs China to survive, but it doesn’t want suppliers to make everything there in case of supply chain snarls: report

    A Tesla showroom and service center in Amsterdam.
    A Tesla showroom and service center in Amsterdam.

    John Thys/AFP via Getty Images

    • Tesla doesn't want its suppliers to make all of their stuff in China and Taiwan, per Nikkei Asia.
    • Supply chain executives said Tesla wanted to avoid disruptions caused by geopolitical uncertainties.
    • Tesla CEO Elon Musk said he didn't ask President Joe Biden to impose tariffs on Chinese EVs.

    Tesla has asked its suppliers to start making their parts outside China and Taiwan, Nikkei Asia reported on Thursday.

    The EV giant is looking to diversify its supply chain for non-China markets, the outlet reported, citing six supply chain executives familiar with the matter. The company hopes its request can be fulfilled by its suppliers by as early as next year, the outlet reported.

    The executives said Tesla wanted to avoid potential supply chain disruptions due to geopolitical uncertainties in the Greater China region.

    Tesla isn't the only American automaker looking to expand its supply chains.

    "We serve several American automobile makers, and Tesla is the most aggressive in terms of trying to avoid the risks surrounding China and Taiwan," an electronics supplier executive told Nikkei Asia, adding that such a move would be more challenging and expensive.

    According to the outlet, General Motors and Ford have raised similar questions to their suppliers, though they did not make an explicit request like Tesla.

    Representatives for Tesla, General Motors, and Ford didn't immediately respond to requests for comment from BI sent outside regular business hours.

    Tesla's supply chain maneuvers may seem peculiar considering how friendly its CEO, Elon Musk, has been with the Chinese authorities.

    The mercurial billionaire made a surprise trip to China last month, where he met Premier Li Qiang, the country's second-highest-ranking politician.

    The trip proved fruitful for Musk, as Chinese officials gave their in-principle approval for Tesla to roll out its Full Self-Driving (FSD) technology in the country, per Bloomberg.

    On May 7, the state-owned newspaper China Daily reported that officials had also given their partial support to Musk's proposal to implement Tesla's FSD technology in China's taxi services.

    And Tesla's Chinese connections don't just end there.

    Last month, Musk revealed in an X post that he'd picked the robotaxi's projected August 8 launch date partly because "8/8 is a lucky number in China."

    That said, the Tesla chief hasn't been oblivious to the risks of doing business in China.

    During an earnings call in January, Musk raised the alarm about the threat posed by Chinese automakers like BYD and Li Auto.

    "The Chinese car companies are the most competitive car companies in the world," Musk told investors. "If there are no trade barriers established, they will pretty much demolish most other car companies in the world."

    On May 14, the Biden administration said it planned to implement a 100% tariff on Chinese EVs.

    "The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports," the White House said in its statement.

    Musk, however, appeared to walk back his remarks in January. On Thursday, Musk said Tesla didn't ask for tariffs to be imposed.

    "Tesla competes quite well in the market in China with no tariffs and no deferential support. In general, I'm in favor of no tariffs," Musk said in an interview at the VivaTech conference in Paris.

    Musk's shifting rhetoric on China underscores the challenges companies face when navigating the geopolitical headwinds of US-China tensions.

    For instance, chip giant Nvidia has been working hard to develop specialized offerings for the Chinese market in order to comply with prevailing US export restrictions.

    But even that may be for naught since Chinese officials have asked domestic tech giants like Alibaba and Baidu to buy locally-made AI chips instead, per The Information.

    "China is a very important market for the technology industry," Nvidia CEO Jensen Huang told the Financial Times in May 2023. "If we are deprived of the Chinese market, we don't have a contingency for that. There is no other China, there is only one China."

    Read the original article on Business Insider

  • It’s the summer of $5 meals: Burger King creates a value meal to rival McDonald’s deal

    Burger King cardboard crowns.
    Burger King cardboard crowns.

    Jakub Porzycki for NurPhoto via Getty Images

    • Burger King is launching a $5 meal deal before McDonald's similar promotion.
    • The Burger King deal includes a sandwich, nuggets, fries, and a drink and will run for several months.
    • Fast-food chains are introducing value meals amid inflation and high menu prices.

    Burger King is launching its own $5 meal just two weeks after reports of McDonald's introducing a similar deal.

    Burger King plans to launch the set, which will include a sandwich, chicken nuggets, fries and a drink, before McDonald's, according to a document seen by Bloomberg. The promotion will also run for longer than one month, unlike McDonald's.

    "Regardless of their plans, we are moving full speed ahead with our own plans to launch our own $5 value meal before they do — and run it for several months," Burger King US and Canada president Tom Curtis wrote in a memo seen by Bloomberg.

    McDonald's plans to start offering the deal for about a month beginning June 25 at its US restaurants, The Wall Street Journal reported last week. It's unclear exactly when Burger King will launch its promotion.

    Burger King did not immediately respond to a request for comment from Business Insider.

    Earlier this week, Wendy's also announced its version of a value meal — a $3 set consisting of a breakfast sandwich and a small batch of seasoned potatoes.

    The price wars come as fast-food chains look to attract customers who are tightening their belts amid inflationary pressures.

    Fast-food prices have stayed high since chains increased their menu prices during the pandemic in response to soaring food and labor costs. In April, fast-food executives told investors in a series of earnings calls that people are cutting back on visits to quick-service restaurants.

    Last month, Joshua Kobza, the CEO of Burger King parent Restaurant Brands International, told analysts that diners had become "a bit more sensitive to price."

    "Our priority is to continue enhancing our value proposition through our quality food and beverages at attractive price points," Kobza said.

    However, some price-sensitive customers have not been pacified.

    While the McDonald's $5 meal gives customers about $18 worth of food, based on current prices in some urban areas, people on social media have called the promotion "skimpy" and are upset that it will only last one month.

    Read the original article on Business Insider

  • How to use Google Flights: Find cheap flight options, search multiple airlines at once, and track flight prices

    Two shadowy hands hold a smartphone displaying the Google Flights logo.
    Google Flights searches for flights and compares prices across dozens of airlines, finding you the cheapest flights available.

    Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images

    • Google Flights allow you to search many airlines at once to better build your itinerary.
    • Google Flights helps travelers find the cheapest available price for airfares.
    • Over 300 airlines, online travel agencies, and aggregators are partnered with Google Flights.

    Google Flights is Google's very own flight-searching and booking tool. Launched in 2011, the service allows travelers to more easily find the cheapest route between destinations within any given parameters and enables easy price-tracking.

    You can often find cheaper flights on Google Flights than by searching on your own because the software searches and compares across dozens of airlines much faster than an individual can look them up individually and plan an itinerary.

    You don't have to actually book through Google Flights to make use of the software, either. You can choose to book directly with an airline after using Google Flights to find the cheapest flight.

    But booking through Google Flights can often add convenience to your travel plans and is integrated with a number of other Google products and services — for instance, you can use Google's Gemini AI to make travel plans with Google Flights.

    Google Assistant can also bring up the Google Flights dashboard and show you flight prices. And if you book a flight using your Gmail account, your details will automatically get added to your Google Calendar.

    As a frequent traveler between the US and Canada, I've used Google Flights to save hundreds of dollars flying back and forth across the border. Results may vary, of course, but here's how you can try it for yourself:

    How to use Google Flights and find cheap flights on Google

    Finding cheap flights is one of the core purposes of Google Flights. If your travel dates are flexible, you can use the date grid to choose dates with the lowest available price.

    1. Select your departure and return dates by clicking on their respective date tiles in the calendar.
    Screenshot of the Google Flights date picker showing a calendar with prices superimposed.
    Pick your departure and return dates.

    Kyle Wilson/Business Insider

    1. Click Done and then Search.
    A screenshot of the Search function on Google Flights lists a round trip from Los Angeles to New York between June 4 and June 13.
    Clicking Search will display flights within your parameters.

    Kyle Wilson/Business Insider

    Quick tip: Though roundtrip plans are the most common, you can also book one-way tickets by clicking on Round trip and selecting One-way instead.

    Once you've found a flight that you want, click on it and select your return flight. Unlike some airlines that only show you one-way costs, the price listed for both flights is the roundtrip cost. You will then be shown a summary of what you selected and be prompted to select what type of fare you want. Click Continue, and you'll be taken to the airline's website to complete the transaction.

    If you scroll down a bit, you'll notice the price trends chart indicating whether the price is below average, average, or higher than usual.

    How to change currency in Google Flights

    Once you have search results visible, you can change your country and currency if necessary.

    1. Once you have search results, scroll down to the bottom of the page.
    2. Click on the Currency button and select your currency option from the dropdown list.
    A screenshot of Google Flights' currency and location selection options, located at the bottom of the page.
    Select your currency.

    Kyle Wilson/Business Insider

    Quick tip: Currency types are sorted in alphabetical order, meaning that US dollars are near the bottom of the list.

    How to track flights on Google Flights

    Once you've searched for a flight that you are interested in and have results displayed, you can track prices either for that specific date range or any date by enabling their respective notifications.

    A screenshot shows Google Flights' search parameters with the "Track prices" options emphasized with a red box and red arrow.
    Tracking prices can help you buy at the best time.

    Kyle Wilson/Business Insider

    What airlines are not on Google Flights?

    Though Google partners with over 300 airlines, online travel agencies, and aggregators, Google Flights doesn't track every single airline. Notably, Southwest Airlines in the US isn't tracked, nor are some major Asian airlines like China Eastern, Air China, and Philippine Airlines. 

    For other airlines, such as EVA Air and Interjet, only some of their flights are listed on Google Flights.

    Quick tip: It's worth noting that not every airline Google Flights consults will appear in every search. In other words, you won't find Air Canada listed flying routine routes between LAX and JFK, but you might find a flight from YVR to LAX serviced by WestJet or Air Canada.

    What to know about Google Flights' carbon emissions calculator 

    Google has drawn criticism from climate experts, who have said Google Flights downplays the impact flights have on climate change. 

    In 2021, Google CEO Sundar Pichai announced that Google Flights would show associated carbon emissions per seat for each flight so fliers can choose the lowest-carbon options if they wish.

    But the following year, scientists noted that Google Flights' carbon flight calculator had been adjusted and now only accounted for the direct CO2 emissions from a flight, excluding all other global-warming effects from flying.

    Google has since launched an independent advisory committee to improve its Travel Impact Model, which powers the per-passenger CO2 emissions data on Google Flights.

    Read the original article on Business Insider

  • ASX 200 coal stocks sink amid ‘very negative message’ from Queensland government

    coal miner in a mine

    S&P/ASX 200 Index (ASX: XJO) coal stocks are in the red today.

    New Hope Corp Ltd (ASX: NHC) shares closed yesterday trading for $5.01. During the Friday lunch shares are swapping hands for $4.94 apiece, down 1.5%.

    It’s a similar picture with Whitehaven Coal Ltd (ASX: WHC). The Whitehaven share price closed yesterday at $7.80 and is down 1.9% at the time of writing to $7.66 a share.

    The ASX 200 is also under pressure today, down 1.0% on the back of strong US economic data that could push Federal Reserve interest rate cuts out to 2025.

    But ASX coal shares are facing an additional headwind.

    ASX 200 coal stocks eyeing perpetual tax hike

    Queensland’s super tax on coal profits came into effect in July 2022. The tax regime mandates that ASX 200 coal stocks (and smaller coal miners, for that matter) pay an additional tax on all the coal they sell for more than AU$175 a tonne.

    With coal prices soaring over that period, this has already delivered billions of dollars to the state’s coffers.

    But it’s drawn the ire of international companies, investors, Aussie coal miners, and even nations like Japan that likened the tax to an unexpected sovereign risk.

    Despite a big retrace in coal prices from the 2022 all-time highs of more than US$437 (AU$662) per tonne, Whitehaven achieved an average coal price of AU$219 for the March quarter.

    And ASX 200 coal stock New Hope achieved an average realised sales price of AU$180 per tonne, in line with the prior quarter.

    Now, the Queensland Labor government is getting set to enshrine the super coal tax into law ahead of the state elections.

    Yesterday, Deputy Premier Cameron Dick introduced a bill that will require legislative amendments to change or axe the coal tax.

    According to Dick (quoted by The Canberra Times):

    There would be no quiet Friday afternoon regulatory changes under any future Queensland government. Any reduction to the coal royalties will be subject to the scrutiny of the people of Queensland through their parliament, as it should be.

    As you’d expect, this comes as unwelcome news to ASX 200 coal stocks and industry groups who warn it could impact future investment.

    Queensland Resources Council CEO Janette Hewson warned:

    The legislation announced by the Government sends a very negative message to the international investment community. Once again, we have seen the Queensland Government make a significant change affecting the resources sector without any notification to, or consultation with, the industry.

    But Dick insists that investor confidence in Queensland coal is at historic highs, citing BHP Group Ltd (ASX: BHP)’s takeover ambitions of Anglo American (LSE: AAL), which atop its copper assets owns a number of coal mines in Queensland.

    According to Dick:

    That confidence has seen BHP reverse a two-decade policy to now seek new growth in Queensland through the prized mines of Anglo American that they want to purchase.

    We’re seeing significant investment and that’s resulting in record jobs… the highest number of jobs ever in the Queensland coal industry, about 44,000 as of December last year.

    Royalties from ASX 200 coal stocks and other coal miners in Queensland are forecast to deliver a whopping $9.4 billion to the state over five years.

    The post ASX 200 coal stocks sink amid ‘very negative message’ from Queensland government appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you buy Bhp Group 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 Bhp Group 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.

  • If I invest $5,000 in Yancoal shares today, how much income will I receive in 2025?

    A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today

    Investing in Yancoal Australia Ltd (ASX: YAL) shares could be an appealing option for Australian investors looking for returns and passive income.

    At the market close on Thursday, Yancoal shares were trading at $6.18 apiece, with a trailing dividend yield of 11.3%. This follows a strong three-year period of dividend payouts from the ASX coal miner.

    But what kind of income could you expect by May 2025 if you invested $5,000 in Yancoal shares now? Let’s break it down.

    How much passive income could you generate from Yancoal shares?

    If you invest $5,000 in Yancoal stock at the current price of $6.18, you would own approximately 809 shares.

    With Yancoal’s trailing dividend yield of 11.3%, these shares could generate a notable amount of passive income.

    Over the next 12 months, you could expect around $565 in annual dividends from a $5,000 investment at that yield — assuming the dividend and share price remained steady, of course (and excluding any franking credits). If the dividend drops, however, so too will the payment.

    So how can we be sure it will remain steady?

    Yancoal’s financial performance

    Firstly, we can never be 100% sure of the future. But three standouts from Yancoal’s first quarter results indicate to me the company is primed to continue its mouth-watering dividends going forward.

    One, it has maintained a solid cash balance of $1.66 billion – a $266 million quarterly increase – despite realising lower average coal prices over the last three consecutive years.

    Yancoal reported 11.3 million tonnes of saleable coal production and 14.0 million tonnes run of mine (ROM) coal production with in the first quarter of CY 2024, at an average realised coal price of $180 per tonne. This is down from the $232/tonne reported in its 2023 annual results, and $378/tonne in 2022.

    Two, Yancoal’s board approved a 32.5 cents per share dividend in February this year after finishing 2023 in such a strong cash position. As I’ve mentioned previously, this latest dividend isn’t out of sync with recent payments either.

    Three, Yancoal has a history of strong dividend payments even in times of weak coal pricing. In 2019, when coal prices fell as low as US$71/tonne, the company still paid annual dividends of 39 cents per share. For context, coal currently trades at US$144.90 per tonne as I write.

    So, despite fluctuations in coal prices, Yancoal’s quarterly update last month added confidence for its dividend into 2025, in my view.

    Why invest in Yancoal shares?

    Yancoal shares offer exposure to both thermal and metallurgical coal markets. There is a strong demand for these commodities out of China and India, according to Trading Economics.

    Even as coal prices have experienced ups and downs, Yancoal has maintained a consistent dividend payout, which is attractive for those seeking dependable passive income.

    In my opinion, the company’s stable financial position and reliable cash flow also make it an appealing choice for income-focused investors.

    Foolish takeaway

    A $5,000 investment in Yancoal shares today could yield noteworthy returns by the end of 2025, provided the company maintains its current dividend stream.

    This would change if Yancoal were to reduce its quarterly payouts. But, the company’s strong cash balance and recent financial results add a layer of confidence to my outlook on this.

    But always remember one critical thing: past performance never guarantees future results.

    The post If I invest $5,000 in Yancoal shares today, how much income will I receive in 2025? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Yancoal Australia Ltd right now?

    Before you buy Yancoal Australia 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 Yancoal Australia 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 Zach Bristow 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.

  • This little ASX AI stock is soaring 10% today. Here’s why

    chip and tech stocks represented by two computer chips side by side

    The All Ordinaries Index (ASX: XAO) is down 1.0% on Friday morning, but that’s not holding back ASX AI stock Appen Ltd (ASX: APX).

    Appen shares closed yesterday trading for 59 cents and soared 10.2% to 65 cents apiece in earlier trade.

    After some likely profit-taking, shares in the ASX AI stock are swapping hands for 63.5 cents apiece at the time of writing, up 7.6%.

    Here’s what’s happening.

    ASX AI stock lifts on stabilising revenue

    Investors are bidding up the Appen share price on the back of today’s annual general meeting (AGM).

    Ryan Kolln, who took over as Appen CEO in February, addressed shareholders along with Richard Freudenstein, chairman of the ASX AI stock.

    Kolln didn’t hold back any punches when it came to Appen’s FY 2023 performance. As you can see on the above chart, the Appen share price crashed 71% in 2023 and has only recently begun to stabilise.

    In FY 2023 Appen’s revenue fell 30% year on year to $273.0 million, which Kolln admitted was “a disappointing result”.

    “Excluding the impact of foreign exchange, we recorded an [underlying earnings before interest, taxes, depreciation and amortisation] EBITDA loss of negative $20.4 million dollars, compared to $13.6 million dollars in FY22,” he said.

    In response to the falling revenue, the company cut its costs by $60 million in 2023. But the first full year benefit of those cost reductions was only realised in FY 2024. In December, this saw the company exit 2023 cash EBITDA positive.

    As for 2024, Kolln noted the decline in revenue this year was driven by the termination of the Google [Alphabet Inc Class A (NASDAQ: GOOGL)] contract, which ended on 19 March.

    In FY 2023, Appen’s revenue from Google was approximately $83 million, or 30% of the total revenue the ASX AI stock earned over the year. This saw Appen slash its cost base by another $13.5 billion.

    Likely spurring investor interest today, Kolln said:

    Revenue excluding Google shows a continuation of the stabilisation that we saw in the second half of 2023. We are pleased to see revenue levels in March and April that are well above the non-Google revenue in Q3 2023.

    Riding the generative AI wave

    Kolln went on to note how generative AI, driven by tech giants like Nvidia Corporation (NASDAQ: NVDA), is fuelling the next wave of AI growth.

    He noted that Bloomberg and IDC forecast the generative AI market to reach US$1.3 trillion by 2032, growing at a 42% compound annual growth rate (CAGR).

    “We are very bullish on the impact of generative AI, and our strategy is strongly focused on capturing value from the market,” Kolln said. “The impact of generative AI has a significant impact on Appen’s total addressable market (TAM).”

    Indeed, the ASX AI stock forecasts that new generative AI opportunities will increase its TAM by $4 billion to $8 billion by 2030.

    Looking to the year ahead, Kolln concluded:

    Our cash balance at 30 April 2024 was $36.4 million, and we are confident in our cash position. We remain highly focused on ongoing cash positivity, and our target is to reach cash EBITDA positive on a run-rate basis in the early second half of FY24.

    The post This little ASX AI stock is soaring 10% today. Here’s why appeared first on The Motley Fool Australia.

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

    Before you buy Appen 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 Appen 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

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Appen, and Nvidia. The Motley Fool Australia has recommended Alphabet and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Is the Telstra share price too cheap?

    The Telstra Group Ltd (ASX: TLS) share price has dropped 20% over the past 12 months and 13% since the start of the year, as shown in the chart below.

    When a large ASX blue-chip share falls, it can be worth a closer look to determine whether it’s now better value to buy.

    This week’s 6% dip was likely triggered by a recent Telstra update on mobile prices and cost-cutting at its enterprise business.

    Wilson Asset Management (WAM) senior investment analyst Anna Milne recently spoke about her views on the ASX telco share, which she’s bullish on for several reasons.

    But first, a recap on Telstra’s recent news

    On Tuesday, the telco stock announced it was working on measures to reset the enterprise business and improve productivity, including the bombshell news it may cut up to 2,800 jobs from that division.

    Telstra also advised it would wind up its postpaid mobile plans to remove the CPI inflation-linked annual price review. This would provide “greater flexibility to adjust prices at different times and across different plans”. However, some investors fear it may mean price increases will stop.

    Even so, Telstra revealed its mobile business “continued to perform strongly, with growth in subscriber numbers for the first four months” of the FY24 second half.

    The company also revealed guidance that FY25 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) would be between $8.4 billion to $8.7 billion.

    Long-term data demand

    On the same day, WAM analyst Milne identified Telstra’s connectivity as a major positive, saying it would ensure the company would benefit from the growth in artificial intelligence (AI).

    She noted there was “no point in having the data and having the artificial intelligence if you don’t have the infrastructure to connect data centres” with households and businesses.

    To this end, Telstra is developing an intercity fibre project to “deliver next-generation digital infrastructure for the country as demand for connectivity continued to soar.”

    Telstra CEO Vicki Brady explained these fibre cables would build resiliency and “support data centres that facilitate cloud and AI”, as well as many other sectors. It’s working on a number of routes, including connecting into Darwin from Adelaide. This route unlocks pathways to sub-sea cable infrastructure and provides new options for data centre locations, including to service Asia.

    The intercity fibre and ‘Viasat’ projects are on track to deliver an internal rate of return (IRR) in the “mid-teens or better” and around $200 million in additional annuity income once all routes become ready for service and contributing.  

    Lower Telstra share price

    The WAM analyst is also attracted to Telstra’s lower share price, which now has dropped even more.

    Milne noted that the company’s enterprise division in the FY24 first-half update had not impressed the market, suggesting this was an opportunity for Telstra to look at that business and “cut costs”, which the telco is now doing.

    She had this to say about the Telstra share price:

    … 70% of their earnings come from the mobile division and the mobile division is in the best place it’s been in years. Prices are increasing, subscribers are increasing and the industry is rational. We see the current share price as an opportunity to enter one of the best businesses in Australia at a discount.

    Time will tell if the market is too pessimistic about Telstra’s prospects.

    The post Is the Telstra share price too cheap? appeared first on The Motley Fool Australia.

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

    Before you buy Telstra Corporation 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 Telstra Corporation 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 Tristan Harrison 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Recruiters share 7 tips for getting a government contracting job

    Image of a recruiter looking through resumes
    Recruiters suggest candidates avoid short stints on their resumes.

    MTStock Studio/Getty

    • Government contracting opportunities are increasing, but entry can be challenging and nuanced.
    • BI spoke to recruiters to learn best practices to land work at a government contracting company. 
    • Recruiters say candidates should avoid short stints, keep their LinkedIn updated, and network. 

    As Americans seek stable work and flexibility with jobs, interest in public sector jobs is growing.

    Following industry-wide layoffs, a growing number of graduates are shifting away from pursuing jobs at typical tech companies and doubling down on applications to government roles, according to a Handshake report published in January.

    While lower pay in government jobs is sometimes viewed as a drawback of the sector, contracting companies tend to pay better than the federal government, and opportunities in this field are also increasing.

    According to a spokesperson for recruiting company The Judge Group, the company has seen a 15% increase in government, aerospace, and defense opportunities in the last year or two.

    But the world of government contracting is vast and it can be tricky to break into. While some people bid on their own contracts, there are also opportunities to work as an employee at a company that regularly signs contracts with the government.

    While these kinds of companies aren't owned by the government, they have niche requirements and nuances that separate them from other corporate roles. Business Insider talked to three recruiters in the field to learn the best practices for getting a job in the industry.

    1. Avoid job hoppiness on your résumé

    Matt Grussendorf, a delivery manager at The Judge Group, oversees hiring for aerospace, government, and defense employers — and he said job "hoppiness" is a red flag.

    For some roles, it's okay to have one six-month contract after another on your résumé, Grussendorf said. But in certain fields, like aerospace and defense, employers may be looking for longer tenure, he told Business Insider.

    While short stints may seem inevitable in the industry, there are ways to avoid positioning them that way. Lauren Irizarry, a senior talent acquisition partner at A2 Federal, said if you do have shorter contracts, there's a way to format your résumé to make it look more consistent.

    For example, she said if you've worked as a data scientist for 12 years with eight different contracting companies, you can put "data scientist" at the top of your résumé and list the individual contracts underneath instead of listing eight separate lines with the same role.

    2. Make sure your clearances are up to date

    Many government contracting roles require clearances, which can vary depending on the role and may also expire over time.

    Irizarry said it's often easier to start with a larger company so that they sponsor your clearance. However, Quadesha Bynum, who worked in HR at various government agencies and contracting companies before starting her own company, said it can be difficult to land a government contracting job at a big company when starting out, so smaller firms may be a good place to start.

    Whether you have the required clearance or not, it's important to accurately list it, Grussendorf said. Recruiting companies like The Judge Group check candidates' clearance, so applicants should verify their status when they apply for a role.

    Additionally, candidates who are unwilling to get their clearance verified or checked can be a red flag.

    3. Network, network, network

    Irizarry said the government contracting industry is "all about networking." That means joining groups on LinkedIn or other platforms and getting in touch with people in the field.

    Grussendorf said if you're breaking into the field out of college, you may have the advantage of attending career fairs and events centered on government contracting, he said.

    While college fairs may be more accessible for young candidates, there are other networking opportunities. Clearancejobs.com, the largest platform for people with security clearance has a career fair page with a list of upcoming events to directly meet and speak with employers.

    4. Reach out to recruiters directly

    Since many government contracting opportunities have specific requirements, it can make a big difference to speak with a recruiter directly to find out what you need to do for that specific job.

    An easy way to do so is by making a profile on Clearancejobs.com. The site allows users to browse through thousands of open roles, many of which have contact info for recruiters.

    Grussendorf recommends reaching out to recruiters, talent acquisition at staffing agencies, or direct employers and telling them the job and salary range you're looking for to stay on their "candidate hot list."

    5. Be open to relocation

    There are several government hubs around the country, including in D.C., Seattle, Southern California, Alabama, and Denver, said Grussendorf. Most direct hire opportunities offer relocation packages, but contract or contract-to-hire positions typically don't, he said.

    But Grussendorf said many employers end up extending the contract or hiring a candidate after they make the commitment to the company. Employers don't want to let strong employees or candidates go if they don't have to.

    6. Make sure your LinkedIn is up to date

    While some industries are more relaxed about certain standards, government jobs tend to be more traditional. Since many jobs in the sector require background checks and clearances, they may also do more digging than other corporate jobs.

    Irizarry said candidates should keep LinkedIn fully professional — that means omitting irrelevant interests or experiences and using headshots from the shoulders up with a plain background.

    Irizarry said she looks for information that will grab her attention. For example, if you're a cyber expert or speak multiple languages, list it.

    7. Know what you're signing up for

    Bynum said it's important to do research on the field before applying. Career fairs, she said, are a great place to do that.

    Bynum said candidates should know details like how long the contract lasts and whether there are other positions available. She also said it's important to know what clearances are required for the job and how long that process will take to complete.

    Read the original article on Business Insider