If you’re fortunate enough to have $10,000 sitting in your savings account and no immediate use for it, then it could be worth putting it to work in the share market.
After all, with a historic return in the region of 10%, that $10,000 could become $11,000 in 12 months if history were to repeat itself.
In addition, if you can find an ASX share with market-beating potential, then you could grow your wealth even more.
But which shares could do this? Could CSL Ltd (ASX: CSL) shares beat the market? Let’s find out.
$10,000 invested in CSL shares
At present, the CSL share price is trading at $289.24. This means that if you were to invest $10,000 (and a further $123.40), you would end up owning 35 units.
According to a recent note out of Morgans, its analysts see scope for the company’s shares to rise from current levels. The broker said:
While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.
Morgans has an add rating and $315.35 price target on CSL’s shares. This implies potential upside of 9% and values those 35 units at $11,037.25.
Bigger returns
The good news is that even bigger returns could be on the cards according to analysts at Macquarie.
A recent note out of the investment bank reveals that its analysts have an outperform rating and $330.00 price target on the company’s shares. This suggests that upside of 14.1% is possible over the next 12 months.
If this recommendation proves accurate, those 35 CSL shares would have a market value of $11,550. That’s almost $1,500 greater than your original investment.
But it gets better. Macquarie is feeling very positive about the outlook of the CSL Behring business. This is particularly important given how it is far and away the biggest contributor to CSL’s overall earnings.
As a result, the broker sees scope for CSL’s shares to rise significantly over the next three years thanks to the strength of the CSL Behring business. So much so, it believes that a share price of $500 is possible by 2027.
If that happens, it would mean those 35 shares will be worth a sizeable $17,500. That’s a very large increase on the original outlay of $10,123.40.
Here’s hoping that Macquarie is on the money with its recommendation and valuation.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
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And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Armie Hammer made a rare appearance on a podcast on Sunday, where he talked about addiction and recovery.
Hammer said that he thought of killing himself several times after hitting rock bottom.
On one of those occasions, he considered swimming out to sea to end his life, he said.
Armie Hammer, once one of Hollywood's most promising actors, has been laying lowsince his career imploded in 2021. But this weekend, Hammer resurfaced on a YouTube show to talk about addiction and his stint in rehab, amongst other things.
Hammer was the guest on the Sunday installment of the "Painful Lessons Podcast," a show hosted by his friend and self-described "longtime Armie pal" Tyler Ramsey.
"So, there were a lot of times where I thought, 'I can't take this anymore, like this is too much, this is more stress than a human being has ever been evolved to deal with,'" Hammer said.
Hammer then described what he said called a "half-assed suicide attempt" that he abandoned partway because he thought about his two children.
"And I hit really dark low points. There was a time where I was standing on the shore, and I just looked out at the ocean, and I thought, 'Yep, this is it,'" Hammer added.
"And I just swam out really fucking far, and I thought, 'you know what, like I'm — I'm done, like there's nothing back there for me,'" Hammer said.
During the podcast, Hammer also addressed — and once again denied — rumors that he is a cannibal. He added that he's now sober and said he went away for an extended stint in rehab, where he worked through trauma and sexual abuse he suffered as a child.
Very little is known about Hammer's life now, though in June 2023, some of his legal troubles were resolved when the Los Angeles district attorney's office decided not to prosecute him for rape, after whichhe posted a statement to Instagram saying that he was "very grateful."
The Sigma Healthcare Ltd (ASX: SIG) share price remains in focus after its much-anticipated merger with Chemist Warehouse hit a major roadblock in the last week, putting a potential Chemist Warehouse ASX listing back on the agenda.
The Australian Competition and Consumer Commission (ACCC) raised its concerns about the merger in an announcement, where it questioned the deal’s implications for independent pharmacies.
News of the ACCC’s “preliminary concerns” caused the Sigma share price to drop sharply. It has now slipped around 5% in the last month to $1.19 per share at the time of publication.
Sigma share price hits turbulence
Sigma’s share price has hit turbulence since the announcement last week. Investors appeared to have taken note of what was said.
The ACCC detailed several issues it had with the merger. For one, it said the transaction represents a “major structural change for the pharmacy sector.”
Secondly, it wants to know if the merger could reduce competition and raise consumer prices. It says the combined entity would be “uniquely vertically integrated”, with a large footprint across the wholesale and retail markets.
At the same time, the Commission also believes the merger could limit options for independent pharmacies and raise barriers for new competitors due to Chemist Warehouse’s discounting strategies. For instance, Chemist Warehouse passes on full discounts on Pharmaceutical Benefits Scheme (PBS) prescriptions to its customers.
News of the ACCC’s concerns last week hit the Sigma share price. Investors traded it down from $1.21 to $1.16 per share by market close on Friday. But they seemed to have shown renewed confidence on Monday, with Sigma up 3% at the time of publication.
Now analysts at investment bank Barrenjoey have claimed that The ACCC left a major player in the pharmacy supply chain out of its calculations when arguing against the merger.
It says Clifford Hallam Healthcare (CH2) was excluded from the equation and that CH2 is “increasing investment in capacity to grow its [market] share”, per The Australian Financial Review.
Even if independent pharmacies decided they did not want to be supplied by the combined group, we think wholesale supply competition for this business would remain healthy
The firm also told its clients that factors like vertical integration are industry norms and that Chemist Warehouse “will be Sigma’s largest wholesale customer” regardless of the outcome. This news is potentially positive for the Sigma share price.
Could an IPO be the solution?
In my view, both Sigma and Chemist Warehouse will likely work with the ACCC, but one can’t rule out the ACCC blocking the transaction either.
And with the ACCC crawling all over the deal, many question whether an initial public offering (IPO) of Chemist Warehouse shares could be a viable option.
A lot of the heavy lifting has already been done, for one. Investors have also gained a far deeper understanding of Chemist Warehouse as well.
There is no saying what that means for the Sigma share price. But this groundwork could facilitate a quick move towards a public listing if the merger fails.
Foolish takeaway
The Sigma share price is in focus as the future of its merger with Chemist Warehouse remains uncertain. Investors are closely watching the ACCC’s next moves.
Whether through a merger or an IPO, Chemist Warehouse’s journey to the ASX has a ways to go yet.
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Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…
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.
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.15% to 7,711.6 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
The Bapcor share price is down 2.5% to $4.87. This morning, this auto parts retailer announced that it has successfully refinanced $200 million of debt facilities that were due to mature in July 2025. Bapcor has increased this debt facility by $100 million to a total of $300 million split into tenors maturing in July 2028 and July 2029. Investors may be concerned that this could be a sign that Bapcor isn’t interested in being taken private. Last week, it received an unsolicited, indicative, conditional and non-binding proposal from Bain Capital for $5.40 cash per share.
The Chalice Mining share price is down over 4% to $1.28. This may have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the mineral exploration company’s shares to a neutral rating (from buy) with a $1.50 price target. In addition, as we covered here earlier, short sellers continue to successfully target the company. A total of 9.6% of Chalice Mining’s shares are held short at present.
The Integral Diagnostics share price is down 4% to $2.44. This follows news that the diagnostic imaging company has made an offer to merge with rival Capitol Health Ltd (ASX: CAJ). Given that it is an all-scrip deal, it seems that some investors don’t believe that Integral Diagnostics shareholders are getting a good deal. Capitol Health shares are up 15% on the news.
The Winsome Resources share price is down 14.5% to 82.5 cents. This has been driven by the completion of the lithium developer’s equity raising. Firm commitments have been received to raise a total of $25 million. This comprises $13.2 million at $1.275 per new share via Canadian flow through financing and a share placement of $11.8 million at a discount of 85 cents per share. The funds will be used to advance key project initiatives. This includes the Adina Lithium and Renard project studies, which are on track for completion in the third quarter of 2024, and exploration and resource growth drilling to expand the current mineral resource estimate of 77.9Mt @ 1.15%.
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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 recommended Bapcor and Integral Diagnostics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Investing in the stock market can be a bit daunting, especially if you’re just starting out.
Here are three ASX shares that I believe are perfect for beginners. These shares are known for being stable and reliable, making them ideal choices for those new to investing.
The first pick goes to the insurance brokerage group Steadfast, which provides general insurance brokerage and underwriting services.
Steadfast has delivered consistent earnings growth. Over the past five years, the company’s earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 13%, reaching 10.2 cents per share (cps). For the full year in FY24, management anticipates underlying diluted EPS growth of between 11% and 16%.
During the same period, the dividend per share (DPS) has risen at a CAGR of 15% to 16 cps. At the current share price, the company offers a dividend yield of close to 3%.
Steadfast reported a robust set of numbers in its 1H FY24 results. Its underlying revenue rose 19.4% from a year ago to $790.4 million, and underlying net profit after tax (NPAT) 17.5% to $106 million. Such growth was driven by strategic acquisitions as well as a solid organic profit growth of 13.4%.
The company insiders own approximately 8.5% of the company. This includes a 5% stake in Mr Jim Angelis following the acquisition of Coverforce Holdco, which Angelis founded.
Its shareholders include some major institutional investors. Australian Super owns 7.5%, followed by First Sentier Investors owning 5%, and Fidelity Management & Research company (FMR) at just about 5%.
The Steadfast share price fell 10% over the past year, which is a rare event based on its trading history. Steadfast shares are trading at $5.40 at the time of writing.
If you’re familiar with Sydney’s property market, you know how bustling Western Sydney has become with the construction of the second airport and the residential property shortage. Brickworks owns a large parcel of land in this area.
In its May 2024 trading update, the company estimated its net asset value (NAV) at around $5.6 billion or $36.68 per share. This is far above its share price of around $26.50 today.
At the current share price, Brickworks offers a fully-franked dividend yield of 2.5%.
The Brickworks share price fell approximately 13% from its 52-week high of $31.4 in March 2024. Brickwork shares are trading at $26.67 at the time of writing.
Last but not least, BHP Group is a leading global resources company involved in the exploration, production and processing of minerals and oil.
Cyclicality is inevitable for any mining company. However, BHP is well-positioned to weather market fluctuations thanks to its improved operating efficiency and balanced product mix.
The company aims to grow its core iron ore production while expanding its copper exposure through the acquisition of Oz Minerals.
BHP boasts a high return-on-equity (ROE) of 19% using the latest 12-month financials. Its ROE tends to range from single digits to above 40% throughout the commodities cycle. However, it’s one of the lowest cost producers in its respective mining sectors compared to its peers.
Using FY25 EPS estimates by S&P Capital IQ, BHP shares are trading at just about 11 times. At the current price, the company offers a dividend yield of 5.5%.
The BHP share price is down 7.4% over the past year to $42.68 today.
Foolish takeaway
I believe the three ASX shares are attractively valued based on their fundamentals and carry relatively low risks, making them suitable options for beginners.
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Motley Fool contributor Kate Lee has positions in Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Goodman Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Steadfast Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
S&P/ASX 200 Index (ASX: XJO) share Bapcor Ltd (ASX: BAP) is giving back some of last week’s blistering gains today.
Shares in the auto parts company closed on Friday trading for $5.00. In late morning trade on Monday, shares are changing hands for $4.87 apiece, down 2.6%.
For some context, the ASX 200 is down 0.2% at this same time.
Here’s what’s happening.
ASX 200 share falls amid debt refinancing
Last Tuesday, the Bapcor share price surged to close up 14% after the company confirmed it had received a non-binding takeover proposal from United States-based private investment firm Bain Capital for $5.40 a share. That saw the stock end the week up 14.6%.
There’s been no update on those acquisition discussions.
However, this morning the ASX 200 share did provide a financing update.
Bapcor said it has refinanced $200 million worth of debt facilities that were due to mature in July 2025. The debt facilities were increased by $100 million and now total $300 million. Those now mature in July 2028 and July 2029.
The auto parts company now has access to a total $720 million debt facility with a number of major lenders including Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).
Management noted that the refinancing improves the ASX 200 share’s financial position and provides additional funds for general corporate purposes.
Commenting on the transaction, Bapcor interim chief financial officer (CFO) George Saoud said:
We are pleased with the outcome of our refinancing. We appreciate the continued support of our banking partners, and with their support Bapcor has strengthened its financial foundation. The new debt facility has competitive terms and pricing and provides the opportunity for us to prepare for future growth.
What else is happening with Bapcor shares?
In a non-price-sensitive announcement, the ASX 200 share also reported that, as of 1 July, George Saud will transition from interim to permanent CFO.
Saud took over as interim CFO on 14 March.
Commenting on the appointment, Bapcor interim CEO Mark Bernhard said, “Bapcor is delighted to confirm George’s permanent appointment as CFO following an extensive search.”
Bernhard added:
George is highly experienced and has held senior financial and commercial positions across a range of complex corporations including Coles Group, Metcash Supermarkets and Fantastic Holdings. George is a great addition to Bapcor’s Group leadership team and will be pivotal in driving the company’s performance in the future.
With today’s intraday dip factored in, the ASX 200 share is down 9% in 2024.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The S&P/ASX 200 Index (ASX: XJO) is having an underwhelming start to the week. In afternoon trade, the benchmark index is down 0.2% to 7,708.5 points.
Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising today:
The Capitol Health share price is up 15% to 28.2 cents. This morning, this diagnostic imaging company announced that it had accepted an offer from Integral Diagnostics Ltd (ASX: IDX). The latter tabled a merger offer with an implied exchange ratio of 0.12849 Integral Diagnostics shares for every Capitol Health share. This equated to an offer of 32.6 cents per share, which represented a 33% premium to Friday’s closing prices. Management intends to recommend the offer to shareholders, subject to a number of conditions.
The Capricorn Metals share price is up 4.5% to $4.66. This appears to have been driven by a broker note out of Bell Potter. According to the note, the broker has retained its buy rating on the gold miner’s shares with an improved price target of $6.53. Bell Potter made the move in response to news that Capricorn Metals has reduced its gold hedge book by 52,000 ounces. Bell Potter notes that the buyback of approximately half of its remaining hedge book mirrors the successful strategy of 2023, which resulted in a relative cash benefit of ~$13 million.
The Credit Clear share price is up 5% to 25.2 cents. This morning, this technology and debt collection provider announced that it was upgrading its guidance again. FY 2024 revenue is now expected to be at the upper end of the $40 million to $42 million guidance range. Whereas FY 2024 underlying EBITDA guidance is up from in excess of $3 million to in excess of $3.7 million. Management notes that this represents a ~23% increase in minimum expectations. It also notes that the guidance upgrade “reflects an improving underlying EBITDA margin, which is a key focus and expectation in the company’s continued growth.”
The Telix Pharmaceuticals share price is up 3.5% to $17.18. This may also have been driven by a broker note out of Bell Potter. At the end of last week, the broker upgraded the radiopharmaceuticals company’s shares to a buy rating with a $19.00 price target. It believes that recent share price weakness has created a buying opportunity. The broker said: “The pullback represents an opportunity to buy the stock ahead of an exciting period of news flow over the second half of the CY24 which will include potential FDA approvals for Zircaix and Pixclara.”
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Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Integral Diagnostics and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Mexican food business Guzman y Gomez (GYG) is planning to list on the ASX this week with an initial public offering (IPO). As there is so much attention on the company, I am going to outline what attracts me to it and why I plan to buy shares.
It’s scheduled to trade on the ASX on Thursday, 20 June 2024, on a conditional and deferred settlement basis. Normal trading is expected on the ASX on a normal settlement basis on 25 June 2024.
The business is planning to raise $200 million in primary proceeds and $135.1 million through existing investors selling down some of their stake.
Strong sales growth and international potential
The Mexican food company has grown significantly in the last several years.
In FY15, the business generated $101 million of global network sales, which increased to $759 million in the 2023 financial year. That’s a compound annual growth rate (CAGR) of 29% over the period. Management is expecting further growth in the coming years.
Guzman y Gomez has forecast that global network sales can increase to $954.4 million in FY24 and $1.14 billion in FY25. That would be an increase of around 50% between FY23 and FY25.
I believe GYG can continue to grow its global network sales at a double-digit rate for years to come because of its growing Australian and international presence.
Some successful businesses have generated excellent returns by expanding their store networks. Just think about global winners like McDonald’s, Yum! Brands, and Chipotle.
I’m not suggesting GYG will do as well as those businesses. On the ASX, Collins Foods Ltd (ASX: CKF) has done very well for shareholders over the past decade. But GYG isn’t a franchisee business like Collins Foods, so GYG can benefit from franchisee sales growth locally or globally.
Guzman y Gomez has a hybrid restaurant ownership model with a mix of corporate and franchise restaurants. It has 185 restaurants in Australia, including 62 corporate restaurants and 123 franchise restaurants. The business has four corporate restaurants in the US.
GYG also has 16 restaurants in Singapore and five restaurants in Japan which are owned and operated by separate master franchisees. GYG earns royalty revenue from franchisee sales.
In Australia, GYG expects to open 30 new restaurants in FY25 and thinks it can increase its annual openings to 40 per year within five years. It thinks it can reach over 1,000 Australian locations over the “next 20+ years”. The Guzman y Gomez listing value may not be cheap, but I’m thinking about where the business may be in three years, five years and ten years, not just its position in June 2024.
The company plans to expand in the US, though it will “continually assess and adjust the pace of restaurant expansion to ensure it is underpinned by robust restaurant economics.” It’s expecting to have seven US stores in FY25, up from four now.
Becoming bigger can help drive the underlying profit margins and value of the business.
Rising margins
Investors often like to value a business based on how much profit it’s making now and what it can make in the future. Rising profit margins can help the bottom line grow even faster than revenue.
Guzman y Gomez showed in its prospectus that its EBITDA to global network sales margin was 3.8% in FY22 and 3.9% in FY23. GYG projects this to increase to 4.5% in FY24 and 5.3% in FY25. Rising margins are a promising sign of economies of scale.
In five years, the Mexican food business could be much bigger and earn even stronger margins (on much higher revenue), which bodes well for future profit.
Foolish takeaway
There could be a lot of volatility with GYG shares in the short term because some investors think they’re overvalued, and others think they have compelling long-term value. I’m planning to start with a minimal investment and then buy more on any weakness or buy more over time as the business executes its store rollout plan and delivers high margins.
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Motley Fool contributor Tristan Harrison has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chipotle Mexican Grill. The Motley Fool Australia has recommended Chipotle Mexican Grill and Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Elon Musk has been flexing his power as a political influencer in recent years, but the billionaire and his businesses have much to gain — or lose — depending on who the next president is.
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Elon Musk has been flexing his power as a political influencer in recent years.
Whoever wins the White House could drastically impact the billionaire's businesses.
A political strategist told BI Musk needs to "be careful" what he wishes for in the next election.
In recent years, Elon Musk appears to have gone from lightly flirting with politics to having a full-blown love affair with growing his influence in Washington.
As the presidential election inches closer and the billionaire businessman continues teasing the idea of a Trump endorsement, it's becoming clear that Musk has a lot at stake depending on who next leads the country.
While Musk hasn't publicly endorsed any candidate, Business Insider previously reported he bonded with fellow billionaires over a shared distrust of Democrats and privately discussed how best to defeat them in this year's election.
According to a recent report from The Wall Street Journal, Musk has also talked with the Trump campaign about taking on a potential advisory role if the former president returns to the White House.
A representative for the Trump campaign declined to comment on The Journal report but acknowledged that Silicon Valley elites like Musk have lined up to support Trump's reelection campaign.
"It has been widely reported and is demonstrated in a number of ways that many of the nation's most important leaders in technology and innovation are concerned with the damage done to their industry by Biden's failures to handle our economy and his moves to overburden innovators with government bureaucracy and unrelenting regulation," Brian Hughes, a senior advisor to the Trump campaign, told BI in a statement.
While Musk is increasingly flexing his political power, whoever wins the White House could drastically impact the billionaire and his businesses. Here's how things could shake out for Musk under a second Trump administration versus a Biden win.
Elon under Trump
Musk previously served on business advisory groups under the first Trump administration but pulled out of the role over disagreements with Trump's 2017 decision to leave the Paris climate accord.
If he were to take on a more formal role in a hypothetical second Trump term, Musk would be taking a gamble on what'd be best for his numerous multi-billion-dollar businesses, Bradley Tusk told BI.
Tusk is a venture capitalist and political strategist whose VC firm, Tusk Venture Partners, advises startups in highly regulated industries. If he were advising Musk now, Tusk said he'd tell him: "You've got to really be careful what you wish for — for a bunch of reasons."
Under Trump, Tusk said tax cuts and deregulation could lead to a boom for Tesla, X, and SpaceX — especially given Trump's prior push to develop a Space Force. This could also come with a massive increase in political cache but possibly decreased stability in the markets, which Musk relies on to maintain his wealth and power.
"There is the potential to really have a tremendous amount of influence within Trump's administration," Stacey Lee, a law and ethics professor at the Johns Hopkins Carey Business School, told BI. "And when you look at the hallmarks of what Trump really respects — he's popular, he has a management style that is more singular in its voice — these are all of the things that Trump really admires, and so does Musk."
"In that regard," she said, "they may be rather odd kindred spirits."
Elon under Biden
In a world where Biden is elected again, Musk might not have the influence he appears to crave, but Tusk said he'd have something that markets and companies rely on for strong growth: stability.
"Musk just got a $55 billion pay package approved under Joe Biden as President — right now, his life's pretty good," Tusk said. "And now we have the choice of a president who genuinely believes in clean energy and someone who actively despises it. So, for those Tesla shareholders, it's a lot better for them if Joe Biden's president. And they just gave Elon $55 billion to do what's best for the company."
However, Lee told BI that a second Biden administration would also be prone to more regulation and pro-union policies, neither of which is very attractive to Musk as a businessman.
"Biden is very traditional in terms of his policies. He is committed to raising corporate taxes," Lee said. "Under Trump, we saw them go from 35% to 21%, and now Trump is saying, 'Hey, if I get in, I'll take it down to 20.' I think that would be music to Musk's ears.'"
A second Trump term could backfire for Musk
"My initial instinct — I think everybody's — would be like, 'Oh, of course, it'd better for Musk under Trump.' But I think ultimately, it'd be much worse," Tusk said.
While Musk might be seduced by the allure of amassing even more power, Tusk said it's a double-edged sword with Trump.
Tusk said Biden doesn't think of Elon as a rival — he probably doesn't think about him at all. But with Trump, as has happened with so many of his one-time allies, his affection for Musk could suddenly flip, making the Tesla CEO a target for his ire.
"On the Trump side, Musk needs to be careful and not go headlong into this. As seductive as it might seem, it really ends badly for basically everybody," Tusk said. "And all the things that he values, the things that sort of makes him happy — the attention and relevance — are the same things that make Trump happy."
"And the one guy you can't win a head-to-head war with is the President of the United States," he added.
Musk and Biden campaign representatives did not respond to requests for comment from Business Insider.
"House of the Dragon" season two premiered Sunday night.
The episode has new opening credits, a Stark appearance, and one extremely brutal death.
Daemon's decision to go over Rhaenyra's head for vengeance brings House Targaryen to the precipice of war.
House Targaryen's civil war is closer than ever after the events of the season two premiere.
"House of the Dragon" finally returned on Sunday night, two years after season one aired on HBO and became a smash hit. On season one of the "Game of Thrones" prequel, tensions rose between the Greens (those loyal to Alicent Hightower and her son Aegon II Targaryen, who backed his claim to the throne) and the Blacks (those loyal to Rhaenyra Targaryen, the king's oldest child and publicly named heir), culminating in Alicent's son Aemond killing Rhaenyra's son Lucerys Velaryon during a dragon fight.
The first episode of season two picks up shortly after that event, finding Rhaenyra seeking out the remains of her son, the Greens strategizing, and Daemon making some extremely poor decisions that push the two factions closer to all-out war.
Below, Business Insider reporters Eammon Jacobs and Palmer Haasch and senior entertainment editor Caralynn Matassa recap all the major events of the season premiere.
Rhaenyra is ready for vengeance.
HBO
The opening credits were changed for season 2
Caralynn: These credits are new, right?
Eammon: Have to say I do like the embroidery style over the board game approach.
Palmer: I really like the bleeding ink. Plus it feels thematically more in line with the whole "this is a historical text" aspect of it all.
A cold (very cold) open in the North, featuring… a Stark!
Cregan Stark makes his debut in the season premiere.
Ollie Upton/HBO
Eammon: Ah, the over-the-top northern accent. As the group's own northerner, I can confirm it is dumb.
Caralynn: Is this bowl-cut kid who gets picked to go to the wall supposed to be someone? They keep cutting to him in a way that feels purposeful, and on the "even by mine own kin" line…. Are they trying to imply he's some kind of important Stark? Is this a book thing I'm not getting?
Palmer: This is a net positive intro for Cregan, at least for me. Him versus Jacaerys is a very funny juxtaposition. Jace is kind of funny (doesn't know his brother has been brutally killed by Vhagar), but Cregan is soooooo serious.
Caralynn: This whole scene feels extremely "Game of Thrones" fan servicey. "The Starks!!! 'Memba them???"
Palmer: I agree, especially having just put on season one of "Game of Thrones." Once again, the entire "Southerners don't know anything about the North" schtick! But less fun without Tyrion Lannister.
I will say though, I don't hate it — I think it's good to do a little check-in with the prophecy/greater scope of the universe before we get really into it.
Caralynn: Extremely true! A good reminder of the real stakes here, aka, ice zombies.
Rhaenys v. Daemon
Daemon acts rashly in the premiere.
Theo Whitman / HBO
Caralynn: This is my favorite scene of the first episode. I love Rhaenys being deeply unimpressed by Daemon and all his posturing.
Palmer: I appreciate that Rhaenys is one of the people who has zero desire to take Daemon's shit.
Palmer: I appreciate Rhaenys so much here — I don't think there's any lost love between Rhaenys and Rhaenyra, and don't believe that she's fully absolved Rhaenyra of Laenor's fake death, but she also very intimately knows what it feels like to lose the child. Especially when Daemon was tangential to both of her children's deaths.
Corlys talks to a newbie who seems important
The show is unsubtly telling us to keep an eye on this guy.
Ollie Upton/HBO
Caralynn: This is one of those things that was tough for me with "Game of Thrones" too — where they're clearly introducing a character who's gonna be important down the line (Alyn, here) but I feel like I'm missing something as a non-book reader.
Palmer: Yes. This is a good introduction for Alyn, but reminds me of something that generally does irk me about this series — it's so difficult to keep up with characters that the show is signposting as plot relevant but we won't figure out what's going on with them for a while.
Helaena and Aegon's exchange foreshadows what will happen at the end of the episode
Helaena recognizes something bad is about to happen.
Ollie Upton / HBO
Palmer: Oh here we go, even worse. Arryk vs. Erryk. Which one is this?
Caralynn: Vhagar really is the most badass looking dragon.
Palmer: Yeah, Vhagar is sick. My beautiful large girl. There is nothing funnier to me though than Aegon suddenly wanting to be an involved father.
Eammon: Tom Glynn-Carney sets me on edge whenever he's around his family.
Palmer: Poor sister-wife Helaena, who seems unfairly implicated in all of this.
Caralynn: Helaena's line here about the rats was good foreshadowing for what happens later. But I think there's an even subtler moment of foreshadowing when Aegon goes to check which kid it is in the room because even he can't tell his own twins apart!
Alicole is a little icky
Ollie Upton/HBO
Palmer: Oh, this is the bit that's going to make so many people mad. Welcome to Alicole, everyone!
Caralynn: This sex scene might be the show's least sexy ever. They seem so dispassionate. Also, "we cannot again" — how many times do we think she's said this?
Palmer: When Criston and Rhaenyra have sex, he also seems surprisingly gentle and lets her get on top, which is much different from some of the other sex we've seen in this show.
It a little bit feels like Alicole is coming out of nowhere, but it was somewhat foreshadowed in season one — them suddenly having on-camera sex doesn't strike me as particularly egregious.
Eammon: Going from watching "Bridgerton" season three to this scene is the whiplash I did not expect this week.
Eammon: "House of the Bragon"? "Dragerton"? That second one sounds like a different show…
Palmer: Two very, very different series concerned with marriage, pregnancy, and lines of succession.
Rhaenyra, in mourning, needs to see her dead son for herself
Rhaenyra discovers the remains of Arrax, her son Lucerys' dragon, in the season two premiere of "House of the Dragon."
Theo Whiteman/HBO
Eammon: Emma D'Arcy deserves all the awards for their thousand-yard stare. They look utterly haunted.
Palmer: I loved Milly Alcock — loved! — but I am so happy that this season we really get to see Emma anchor the entire show.
This is one of my favorite moments of the entire episode — Emma is so on their game here, and it's heartbreaking to watch Rhaenyra have to pick up the pieces of Luke and Arrax's death.
We don't really see Rhaenyra break like this — even when she lost Visenya in the season one finale, I feel like. But I think the touch with Syrax also clearly feeling grief is very poignant. Bonus points to the sound engineers working on those dragon cries!
Eammon: It's the fact that Rhaenyra doesn't even have a proper body to bury. That sense of loss goes so much deeper and it's put across so well without needing to over-explain it with dialogue.
Aegon plays at being king (poorly)
Aegon put together the most inept possible Knightsguard.
Ollie Upton/HBO
Palmer: It's extremely, extremely funny to see Tyland Lannister get so irritated with a small child that he is obligated to be nothing but polite to. And Aegon is so deadly serious about it! What humiliation, though — getting talked down to by your boy king for trying to stop his child heir from bothering you.
Eammon: I know Larys is basically the new/old(?) Littlefinger, but I think Otto gets overlooked for all his scheming.
Palmer: I appreciate everyone explaining that dragons are actually essentially weapons of mass destruction to Aegon, and that they're more valuable as deterrence. But I also appreciate that his response is "My brother will simply nuke anyone who gets in our way on Vhagar."
Larys Strong act like a normal person challenge: failed.
Eammon: Well, at least he didn't make her get her feet out this time! Although it's telling that she instantly needs a bath after speaking to him.
Ollie Upton/HBO
Palmer: Aegon hearing petitions is so incredibly funny. Man has no idea what it takes to run a kingdom and just wants to please everyone.
Caralynn: This scene does a great job of showing how Aegon truly does not have any idea what he's doing. And also truly doesn't give AF.
Eammon: How many sheep does it take to feed a dragon?
Eammon: Aegon's never played RollerCoaster Tycoon or Farmville, and it shows.
Caralynn: Ah yes, Hugh, another THIS DUDE IS IMPORTANT long-held close-up.
Eammon: They're just hammering it home.
Palmer: You know who wields a hammer? Thor. You know who has the word Thor in their name? Vermi — [I am immediately yanked off stage]
For all of Otto's scheming, I do truly think that he just does not have game anymore. Larys is DESTROYING him. Alicent entertains Larys even though he uses her as his own personal WikiFeet, but she is sooooo done with her dad.
Alicent drives me a bit insane with this, and I know it's the point, but my god, I can't imagine that anything will go wrong with her plan to use Aegon as a puppet King when he gets tired of ruling!
Caralynn: I do think it's so interesting and effective how they keep showing Alicent and Rhaenyra as being of the same mind about this but each having no idea the other feels this way — Alicent really doesn't want all out war, and Rhaenyra needs to see her kid's charred body in order to accept it may need to happen.
Palmer: Yeah, it's unfortunate, because clearly neither of them want it. But they're in too deep!
Mysaria is revealed to be alive and Rhaenyra returns home
Palmer: I'm no great Mysaria fan, mostly because I feel like the show constantly deploys her to make half-hearted commentary about the common folk, but free this poor woman from Daemon.
Eammon: She's one of those, "Oh yeah, I forgot about her" characters.
Caralynn: I will say I'm curious about what they're going to do with her long-term.
Palmer: Yep, there's clearly a reason to bring her back, and I hope it's a good one!
Eammon: Can we all just take a moment to appreciate Rhaenyra's badass leather coat? I believe that's what the kids call "a look."
Palmer: She's ready to "slay." But yes, I really love the Rhaenyra leather fits.
Caralynn: The costuming on this show is always flawless.
Daemon makes an oopsie
Daemon (Matt Smith) and Rhaenyra (Emma D'Arcy) in "House of the Dragon" season 2.
Ollie Upton/HBO
Caralynn: And ope, here's the moment that sets this whole mess in motion. Rhaenyra: I want Aemond. Daemon: actively misunderstanding the assignment
Palmer: But this moment is so impactful — show up, say you want your half-brother killed, walk off. Rhaenyra, one episode ago in season one, would not have hit that point, and it really underscores the impact of Lucerys' death.
Caralynn: Ah, this moment of mourning with Rhaenyra and Jace — so unexpected and heartwrenching. They both do such a great job here.
Eammon: This is the bit that got me a little bit. He's trying to maintain his sense of duty as a man, when he's still just a boy himself really.
Palmer: Yeah — I feel like we so rarely get to see Rhaenyra be a mother, and Jacaerys doing his best to step up is heartbreaking. He's still a child! One who hasn't really seen battle.
I feel like we wouldn't have gotten something like that in season one — the show was always moving at such a breakneck pace that there wasn't much time actually develop the kids too much.
Eammon: Yeah, I'm pleased they're letting moments like this breathe instead of just jumping straight into "HEY, LOOK IT'S THE DRAGONS.""
Palmer: This is a series that is at its core, about the grief of mothers, and these are moments where it's really well-executed (as opposed to, say, gratuitous childbirth sequences)
Eammon: Also Ramin Djawadi's score is beautiful here.
Palmer: If I were Daemon Targaryen, personally, I would not entrust a task like this to These Guys, recommended to me by my ex-lover who hates me.
Caralynn: This is like Taskrabbit from hell. Blood and Cheese have a 4.3 rating from 3 jobs and Daemon's like "Seems fine!"
Back in King's Landing, the assassins that Daemon sent after Aemond close in
Ewan Mitchell as Aemond Targaryen in "House of the Dragon" season two.
Ollie Upton/HBO
Eammon: Aemond correctly taking stock of his mom situation: "She blames me for starting this war." To be fair, mate, your dragon did make a midnight snack out of Lucerys.
Palmer: I do think it's funny because Aemond is not faultless, but he's also not particularly wrong — he does seem to have the clearest head out of the whole bunch.
Caralynn: Ewan Mitchell is great as Aemond. He has so much more insight than the others. It's interesting how he's the one to clock that Alicent still has love for Rhaenyra and it's holding her back.
Palmer: He's extremely perceptive! Criston, however, is a bitch.
Caralynn: Criston's long-held grudge is, at this point, a bit much. For him to still be this pissed that she didn't want to marry him is so unhinged. It's giving fragile male ego.
Palmer: I love Aegon and his shithead friends drinking on the Iron Throne. As the people intended!
Caralynn: They're like a bunch of frat bros.
Palmer: I was trying to think of a Westerosi frat house name but was not quick enough on the draw.
Eammon: Alpha Beta Valyria. And oh hey look, a rat. Symbolism!
Palmer: This entire Blood & Cheese bit is so silly, but not necessarily in a bad way? It's horrifying to watch these guys bumble their way into one of the worst inciting incidents of the entire war. They have no clue what they're doing. Ultimately, very effective.
Caralynn: This entire scene is so stressful, and the music is so effective.
Palmer: C'mon guys, does that child look like he has an eyepatch, or can hold his own in a fight?
Eammon: The realization about what's about to happen is just horrifying.
Palmer: Extraordinarily horrifying, and I feel like it's worse because it's Helaena, who is about as close to an innocent as we get aside from the literal children.
Caralynn: Her weakly trying to bargain with them and realizing it's pointless — Phia does phenomenal work here. You can practically see her dissociating.
Palmer: It's also so brutal that Helaena tells the truth when she points out her son — what do you even do? It just feels like the worst kind of gut reaction.
Caralynn: OK, not the vibe, but this bit with the running did make me laugh a little — she's so obviously running with a fake kid.
Palmer: I do think that these shots of her running down the hallway, limp baby aside, are very effective.
Olivia Cooke as Alicent in season two of "House of the Dragon."
Ollie Upton/HBO
Eammon: This moment, with Helaena interrupting Alicent and Criston during sex and blowing the cover on their affair, irritated me. It's so tonally mismatched — the goofiness of getting barged in on mid-intercourse, and the brutality of what just happened.
Palmer: I have yet to truly reckon with Helaena walking in on Alicent and Cole. It feels like it muddies the moment a bit, but I can also rationalize it as this transition point where the war really, truly becomes serious.
Caralynn: It also sets the stage for an interesting tension between Alicent and Helaena because wasn't Criston, the Lord Commander of the Kingsguard, supposed to be, y'know… guarding them? But he was too busy getting his rocks off with her mom!
Palmer: Probably! Him or someone else on the Kingsguard who was slacking off. But it is worse to see one of the family's protectors having an affair instead of protecting!
Eammon: Although, to be fair, this is the same franchise that ended its pilot with Jaime and Cersei having sex in a tower when Bran walked in on them.
Palmer: That is…. a very fair point. It is a kind of twist on that inciting incident.
Caralynn: That's a really good point. Sex really screws everything up!! Especially like, illicit sex that these people are definitely not supposed to be having
Palmer: Yes, this is the moral we should be taking from "Game of Thrones"/"House of the Dragon": Never Have An Affair.
Caralynn: Sex: Simply not worth the trouble (i.e., multiple wars).
