• 4 reasons this fund manager thinks Qantas shares are a cheap buy

    Man sitting in a plane looking through a window and working on a laptop.

    The Qantas Airways Limited (ASX: QAN) share price has seen its fair share of pain over the past year. It’s still down more than 10% since July 2023, as we can see on the chart below, despite a rally over the past two months.

    Qantas has faced a number of negatives in the last few years, including the pandemic.

    The ACCC launched a Federal Court against Qantas in August 2023, alleging that between 21 May 2021 and 7 July 2022, Qantas advertised tickets for more than 8,000 cancelled flights. It was also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not promptly notify existing ticketholders that their flights had been cancelled.

    But the airline and ACCC announced yesterday, as reported by my colleague Bernd Struben, that Qantas had agreed to $20 million payments to customers and that Qantas would pay a $100 million penalty.

    Investors may now be able to judge the Qantas share price on its merits. One investor is very bullish on the airline.

    L1’s bullish view on the Qantas share price

    The fund manager said Qantas remains “very well placed” over the next few years because it has “Australia’s best loyalty business which is expected to double earnings over the next five to seven years”. Qantas also has a range of new, more fuel-efficient aircraft, and ‘project sunrise’, which can enable direct flights from Melbourne and Sydney to London and New York.

    It was noted by L1 that Qantas shares rallied in April after outlining plans to improve the loyalty offer to enable easier access for frequent flyer members to use their points. The revision to the loyalty offer had a “smaller impact on earnings than market expectations and the company clearly articulated the strong medium-term benefits of investing in the program.”

    L1 also noted the airline has “sufficient balance sheet capacity” to continue its share buyback and recommence fully franked dividends next year.

    Another positive for Qantas is that the new CEO, Vanessa Hudson, is “rapidly and methodically addressing customer ‘pain points’, which should improve sentiment from both customers and potential investors.”

    L1 said the Qantas share price is trading at just 6x FY25’s estimated earnings, despite a “dominant industry position, exposure to the structural tailwinds of Asian inbound tourism to Australia and a high growth, capital-light loyalty division, which remains incredibly underappreciated by the market.”

    Qantas share price snapshot

    Since the start of 2024, the Qantas share price has risen by 10%.

    The post 4 reasons this fund manager thinks Qantas shares are a cheap buy appeared first on The Motley Fool Australia.

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    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 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.

  • What are brokers saying about Westpac shares following the bank’s results?

    A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

    Westpac Banking Corp (ASX: WBC) shares were on form on Monday.

    The banking giant’s shares rose over 2.5% to $27.12.

    Investors were buying the company’s shares in response to its half-year results.

    In case you missed it, Westpac’s net profit before one-offs came in at $3,506 million. This represents an 8% decline on the prior corresponding period and a 1% fall on the second half of FY 2023.

    However, this was ahead of expectations. As was its interim dividend of 75 cents per share and surprise 15 cents per share special dividend, and its $1 billion on-market share buyback.

    This gain leaves Westpac’s shares trading within touching distance of their 52-week high of $27.70.

    But can they go higher from here? Let’s take a look at what one leading broker is saying after updating its financial model.

    Can Westpac shares keep rising?

    According to a note out of Goldman Sachs, its analysts believe that Australia’s oldest bank’s shares are fully valued at current levels.

    The broker has responded to the result by retaining its neutral rating with an improved price target of $24.10.

    Based on its current share price, this implies potential downside of 11% for investors over the next 12 months. Though, with Goldman estimating a 6.1% dividend yield this year, the overall potential loss on investment is reduced to 5%.

    While Goldman sees a number of positives, it also sees risks on the horizon. So, with Westpac’s shares trading at a reasonably large premium to historical multiples, it doesn’t believe the risk/reward is sufficient right now to have a more positive recommendation. The broker explains:

    We believe that low industry-wide RWA growth and WBC’s strong capital position, which even on a pro-forma basis is >12%, well above its 11.0-11.5% target ratio, underpins a sustainable payout ratio at the top of its 65-75% target range.

    However, against this, WBC’s technology simplification plan comes with a significant degree of execution risk, given historically banks’ large-scale transformation programs have struggled to stay on budget, and we are currently operating in a stickier-than-expected inflationary environment. Therefore, trading on a 12-mo forward PER of 14.5x (14.0x ex-dividend adjusted, which is one standard deviation above its 15-year historic average of 12.7x), we stay Neutral.

    Nevertheless, shareholders aren’t likely to be too disheartened. After all, the Westpac share price is up almost 25% over the last 12 months. And that doesn’t include the fully franked dividends the bank has paid to shareholders over the period.

    The post What are brokers saying about Westpac shares following the bank’s results? appeared first on The Motley Fool Australia.

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  • Buy this ASX REIT for 99% occupancy and a 7.8% dividend yield!

    a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape

    Any ASX investment – whether that be an ASX share or an ASX real estate investment trust (REIT) – that seemingly offers a dividend yield of 7.89% is going to attract at least some attention.

    After all, that kind of yield is rather unusual on the ASX, at least outside those shares that have a high chance of turning out to be a yield trap.

    Yet that’s exactly what investors eyeing off the Charter Hall Long WALE REIT (ASX: CLW) will notice today.

    The Charter Hall Long WALE REIT is a real estate investment trust that holds a portfolio of property assets that all share relatively long weighted average lease expires (WALEs). These include offices, shopping centres, industrial warehouses and hotels.

    Long WALE REIT units finished trading on Monday flat at $3.42. At this pricing, this ASX REIT is trading on a trailing dividend distribution yield of 7.75%.

    To be fair, this yield comes without the franking credits that most income investors enjoy alongside their regular dividend income from ASX shares. But this is the case for almost all ASX REITs, so we can’t hold that against Charter Hall.

    This high dividend yield is no illusion. It stems from the Long WALE REIT’s last four quarterly dividend distributions. Those consisted of three payments worth 6.5 cents per share (the latest of which is due on 15 May later this month), as well as the 7 cents per share distribution from last August.

    But, as most dividend investors would know, a trailing dividend yield doesn’t guarantee that new investors can expect to receive that same yield going forward.

    Even so, one ASX expert is calling the Charter Hall Long WALE REIT a buy anyway.

    ASX expert names Long WALE REIT as a buy today

    As reported by The Bull, Dylan Evans, of Catapult Wealth, has recently named the Charter Hall Long WALE REIT as one of his buy recommendations. Evans cited the Long WALE REIT’s low exposure to office properties, as well as the REIT’s 99% occupancy rate, as being central to his bullish outlook. Here’s what he said in full:

    CLW is a diversified real estate investment trust. A key attraction is a quality property portfolio with an occupancy rate of 99 per cent. An average lease expiry of 10.8 years provides long term income security. Office exposure is only 18 per cent in an environment of more people working from home.

    CLW has struggled in the past two years in response to rising bond yields. But the stock is appealing at these levels. The dividend yield was recently above 8 per cent. Also, any asset sales to lower debt would be positive for the stock.

    No doubt Charter Hall investors will welcome this sunny appraisal. However, whilst longer-term investors have enjoyed healthy dividend income recently, the Long WALE REIT remains down 23.49% over the past five years. Only time will tell if Evans is on the money with this one.

    The post Buy this ASX REIT for 99% occupancy and a 7.8% dividend yield! appeared first on The Motley Fool Australia.

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  • ANZ share price on watch amid first-half earnings beat and $2b buyback

    A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

    The ANZ Group Holdings Ltd (ASX: ANZ) share price will be one to watch on Tuesday.

    That’s because the banking giant has become the latest big four member to release its half-year results this morning.

    Let’s now take a look at what the bank reported.

    ANZ share price on watch following results release

    • Statutory profit after tax down 4% half on half to $3,407 million
    • Cash profit down 1% to $3,552 million
    • Net interest margin down 2 basis points to 1.63%
    • Partially franked interim dividend up 2.5% to 83 cents per share
    • $2 billion on-market share buyback

    What happened during the half?

    For the six months ended 31 March, ANZ posted a cash profit of $3,552 million. This represents a 1% decline compared to the second half of FY 2023.

    The good news for shareholders is that this result is a touch ahead of the consensus estimate of $3,531 million.

    The key driver of its result was the Institutional business, which reported a 12% lift in cash profit to $1,522 million. This reflects a 27% increase in Markets income driven by higher customer activity and favourable trading conditions. Management notes that it was the business’ strongest first half performance since FY 2017. It also highlights that international profit was up 19%, which it believes demonstrates the benefit of its globally diversified business.

    Also delivering growth was the New Zealand business, which saw its cash profit increase 2% to NZ$852 million. This reflects moderate balance sheet growth with lending up 1% and deposits up 2%, despite challenging economic conditions.

    The Australia Commercial business had a soft half, reporting a 5% decline in cash profit to $665 million. This was despite strong balance sheet growth with lending up 4% and deposits up 3%.

    But the main drag on its profits was the Australia Retail business. It posted a 9% decline in cash profit to $794 million for the half. Management advised that this was despite delivering above system home loan growth with pricing above cost of capital.

    Dividend increase and share buyback

    ANZ’s softer earnings didn’t stop its board from increasing its dividend by 2 cents or 2.5% to 83 cents per share. As with its final dividend, this interim dividend will be partially franked (65%).

    This dividend was also ahead of the consensus estimate of 81 cents per share.

    But the returns don’t stop there. Following in the footsteps of Westpac Banking Corp (ASX: WBC), ANZ has declared a $2 billion on-market share buyback this morning. This is part of its capital management plan. The bank advised that it reflects its strong capital position and the benefits of the partial sale of its share in AmBank.

    This means it was three for three for ANZ, with analysts at Goldman Sachs only forecasting a $1.5 billion share buyback. This could bode well for the ANZ share price on Tuesday.

    Management commentary

    ANZ CEO, Shayne Elliott, was pleased with the half. He said:

    This half’s strong performance is a direct consequence of peer-leading diversification as well as our disciplined focus on productivity and delivery. Coming off a record 2023, each division delivered for the Group and we’ve made good progress on the things we said we would: preparing for the integration of Suncorp Bank, growing ANZ Plus, leveraging our Institutional processing platforms, and further driving productivity.

    Commenting on the bank’s outlook, Elliott appears cautiously optimistic. He adds:

    Both the domestic and international environments are expected to remain challenging across the remainder of the year. The Australian and New Zealand economies are likely to remain subdued, while geopolitical tensions, electoral uncertainty and the introduction of interventionist trade and industry policies will continue internationally.

    Despite these conditions, we are well positioned with the diversity of our businesses, prudent management, and the strength of our customers holding us in good stead. In fact, our work to build a well-managed, de-risked and diversified bank, coupled with our unique international presence, means we are well placed to succeed in this environment.

    The ANZ share price is up 21% over the last 12 months.

    The post ANZ share price on watch amid first-half earnings beat and $2b buyback appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Jurors in Trump’s hush-money trial finally see the 34 allegedly falsified documents in accounting-heavy day of testimony

    donald trump todd blanche
    Former U.S. President Donald Trump appears in court with attorney Todd Blanche during his trial for allegedly covering up hush money payments at Manhattan Criminal Court.

    • Donald Trump's criminal trial finally arrived at the 34 documents at the heart of the case.
    • Prosecutors allege Trump falsified records to cover up reimbursements to Michael Cohen.
    • Longtime Trump Organization employees testified about the handling of reimbursements.

    For the past two weeks, jurors in former President Donald Trump's Manhattan criminal trial heard about extra-marital affairs, seedy "catch and kill" machinations, and the frantic damage control within his campaign ahead of the 2016 election.

    On Monday, they heard a lot about accounting.

    Prosecutors spent the day presenting two dry — but crucial — witnesses who handled The Trump Organization's finances, cutting checks and creating records within the company.

    Those witnesses, longtime Trump Organization employees Jeffrey McConney and Deborah Tarassoff, handled the checks, invoices, and other records that comprise the 34 business records the Manhattan district attorney's office alleges Trump illegally falsified.

    This paperwork, shown on giant TV screens in the courtroom, is the crux of the case.

    The purpose of those falsifications, prosecutors say, was to cover up reimbursements to Michael Cohen, who wired a $130,000 hush-money payment to porn actress Stormy Daniels just 11 days before the 2016 presidential election.

    District Attorney Alvin Bragg alleges the money interfered with the election by silencing Daniels' story, long denied by Trump, of a hotel-suite fling during a Lake Tahoe celebrity golf tournament in 2006, just months after Melania Trump gave birth to their son.

    After a brief hearing Monday morning — in which the judge held Trump in contempt for a 10th gag order violation and threatened to jail him — prosecutors called McConney to the stand.

    Under a mop of shiny white hair, McConney testified about how finances were managed at the Trump Organization, where he worked for over 30 years and served as the company's controller before retiring in February 2023. He oversaw 401K plans, loan documents, and payroll processing.

    Most crucially for the case, he also oversaw Trump's accounts payable department and the accounts receivable department.

    "Accounts receivable is the other side, when someone owes you money," McConney said, making grabbing motions in the air with his hands.

    The two Trump Organization employees were responsible for making sure Cohen got paid

    McConney testified about a meeting in January 2017 with Allen Weisselberg, the Trump Organization's chief financial officer at the time.

    Weisselberg has since stepped down from the position. He was sentenced to five months in jail in 2022 for a Trump Organization felony payroll tax-fraud prosecution, and is now serving another five-month sentence for felony perjury in last year's Trump Organization civil fraud trial.

    The Trump Organization needed to reimburse Cohen for some money, McConney testified that Weissberg told him.

    "Are you familiar with someone named Michael Cohen?" Colangelo asked McConney on the stand.

    McConney gave a heavy sigh, paused, and then answered, "Yes."

    "He said he was a lawyer," McConney added, to some laughter in the courtroom.

    Prosecutors showed jurors a copy of a bank statement revealing that Cohen sent $130,000 to Keith Davidson — an attorney representing Stormy Daniels, who testified earlier — from one of his accounts.

    In handwritten notes shown to the jury, Weisselberg had added $50,000 to cover technical services, doubled that sum to account for the taxes, and then added on a $60,000 bonus.

    That total of $420,000 should be disbursed to Cohen throughout 2017, in $35,000 chunks, McConney jotted down in a second document.

    https://platform.twitter.com/widgets.js

    Colangelo led jurors meticulously through what prosecutors say was the phonied up paperwork for each of these reimbursement checks.

    Each reimbursement check began with Cohen emailing an invoice — and a personal greeting — to Weisselberg, the CFO.

    "Hope you are holding up and not damaged by the hurricane to your Florida home," Cohen emailed the CFO in September of 2017.

    "Happy Thanksgiving and hope all is well," Cohen emailed the CFO when he sent along his November invoice.

    In each month's email Cohen would attach a brief invoice — 11 in all, each of them a falsified document, the DA alleges.

    "Dear Allen," each began. "Pursuant to the retainer agreement, kindly remit payment," the invoice would continue.

    Weisselberg forwarded each invoice to McConney, the controller, who would forward them to Tarasoff, the accounts payable supervisor.

    Tarasoff would print and cut the checks, 11 in all — each of them another alleged falsified document.

    Jurors saw each of these checks, too, including nine Capital One personal checks to Cohen that Trump would need to sign himself throughout his first year at the White House.

    That created a problem, McConney said. For decades, Trump worked from his office upstairs in Trump Tower, and it was easy to get ahold of him to sign a check. As president, he was rarely in New York, McConney said.

    "Somehow, we would have to get a package to the White House," McConney said. Yet another Trump Organization employee would FedEx the checks to Trump in DC, he testified.

    In the afternoon, prosecutor Christopher Conroy slogged through more records with Tarasoff, who said she has worked at the Trump Organization for 24 years.

    Tarasoff sounded both anxious and cautious as she walked jurors through the process of printing, cutting, and creating payment vouchers for each check.

    The parade of emails and invoices didn't excite everyone. At one point during Tarasoff's testimony, Trump's lawyer Todd Blanche let out a wide-mouthed yawn.

    Conroy scored a point that seemed to demonstrate Trump was paying attention to each and every check. Sometimes, Tarassoff testified, he'd write "VOID" on a check if he didn't want it paid.

    "It was signed in black and it was in Sharpie and that's what he usually uses," Tarasoff said.

    Read the original article on Business Insider
  • An ‘artificial sun’ achieved a record-breaking fusion experiment, bringing us closer to clean, limitless energy

    A fisheye view of the WEST tokamak, a rounded metal device
    WEST's interior, which just broke a fusion record for a tungsten tokamak.

    • A fusion reactor in southern France achieved a significant milestone toward clean, limitless energy.
    • The fusion reactor, WEST, created a super-hot plasma and sustained it for a record-breaking 6 minutes.
    • The experiment is laying the groundwork for a larger fusion reactor called ITER.

    A fusion reactor in southern France, called WEST, just achieved an important milestone that brings us one step closer to clean, sustainable, nearly limitless energy.

    Scientists at New Jersey's Princeton Plasma Physics Laboratory, who collaborated on the project, announced today that the device created a super-hot material called a plasma that reached 90 million degrees Fahrenheit (50 million degrees Celsius) for 6 straight minutes.

    The ultimate goal is to sustain a super-hot plasma for many hours, but 6 minutes is a new world record for a device like WEST. Other nuclear reactors similar to WEST have created hotter plasmas, but they haven't lasted as long.

    WEST is what's called a tokamak. It's a donut-shaped fusion reactor the size of an 8-by-8-foot room with 8-foot-tall ceilings, capable of generating the same type of energy that powers our sun. That's why scientists sometimes call these machines "artificial suns."

    the sun glowing yellow-orange orb in black space covered in roiling plasma with two dark large spots
    Two sun is made of very hot plasma.

    "What we are trying to do is create a sun on Earth," Luis Delgado-Aparicio, PPPL's head of advanced projects, told Business Insider. "And that is extremely, extremely challenging," he said, but this new record suggests they're headed in the right direction.

    The sun runs on nuclear fusion (when atomic nuclei combine and release energy) not to be confused with the nuclear fission process (when atomic nuclei split apart and release energy) that powers today's nuclear reactors.

    Fusion energy is more powerful than any form of energy we have today. If we can harness that power, it could produce almost 4 million times more energy per kilogram of fuel than fossil fuels. Plus, it's carbon-free.

    Significant challenges remain before that becomes a reality, which is where experimental reactors like WEST come in.

    While WEST won't be used to generate fusion for electricity to power homes, it's critical for the research that's laying the groundwork for future commercial reactors.

    WEST creates more energy and lays the groundwork for ITER

    The exterior of a tokamak, a large device with metal ladders and scaffolding around it
    The WEST tokamak has a volume of about 530 cubic feet, making it medium-sized compared to ITER.

    WEST has a lot in common with ITER, a nearby reactor being built in southern France, which will be the world's largest tokamak capable of self-sustaining burning plasmas when it's finished. Creating that self-heating mix is a crucial step to harnessing the power of fusion for commercial purposes.

    However, due to cost and technology setbacks, it's unclear when ITER will be finished. In the meantime, other facilities are conducting experiments to figure out how best to operate the giant reactor. That includes WEST.

    The two reactors are practically neighbors, Delgado-Aparicio said, and the experiments at WEST are directly applicable to ITER.

    For fusion to happen on Earth, the fuel needs to reach at least 50 million degrees Celsius. One of the main obstacles fusion power faces is that it takes a tremendous amount of energy to generate those extreme temperatures, and, so far, reactors can't sustain a plasma long enough to gain an energy surplus that could be put toward commercial use. So, for now, fusion reactors typically consume more energy than they produce.

    WEST's latest breakthrough was no exception. However, it did generate 15% more energy from fusion compared to earlier attempts, PPPL reported in a statement. Moreover, the plasma was twice as dense, another important component of creating more energy.

    The key to WEST's record success: tungsten

    A man holds a sample of tungsten in a glass jar
    Tungsten is a heavy metal that WEST uses in its tokamak because of its heat-resistant properties.

    WEST is helping scientists test the best materials for building the walls inside a fusion reactor, which isn't easy since these environments can reach temperatures more than three times hotter than the sun's center.

    Originally, WEST contained carbon walls. While carbon is easy to work with, Delgado-Aparicio said, it also absorbs tritium, a rare hydrogen isotope that fuels the fusion reaction.

    "Imagine you have a wall that is not only a wall, but it's some sort of a sponge," he said, "a sponge that absorbs your fuel."

    So, in 2012, scientists decided to test a different material for the tokamak's walls, tungsten — the same material that ITER will use for some of its main components.

    Three men in white lab coats sit at a desk looking at a computer
    Tullio Barbui, Novimir Pablant, and Luis Delgado-Aparicio examine the results of the WEST tokamak experiment.

    Because of tungsten's ability to withstand heat without absorbing tritium, Delgado-Aparicio believes it is the ideal material for tokamak walls.

    That said, tungsten isn't perfect. One of its downfalls is it can melt and enter the plasma, contaminating it. In turn, this can counteract the process, radiating a lot of energy away and cooling the plasma.

    Therefore, to optimize the system, scientists need to understand how exactly tungsten behaves and interacts with the plasma. That's what researchers are doing with WEST.

    A purplish wavy line against a blue background
    An image of the plasma from the WEST tokamak.

    The team at PPPL, for example, modified a diagnostic tool that they used in this latest experiment from WEST. The tool helped the team accurately measure the plasma's temperature to better understand how tungsten migrates from the wall of the device to the plasma.

    "We can detect how it moves inside, we can follow it, we can study its transport inside the machine," Delgadot-Aparicio said, which could help build future methods for keeping the plasma free of impurities like blobs of tungsten that cool it down.

    "Now we understand how that cooling needs to be taken care of," he said, "and that experience is going to be exported next door to ITER."

    WEST and ITER aren't the only reactors that use tungsten.

    Commonwealth Fusion Systems (CFS), for example, is using tungsten walls for SPARC, its demonstration fusion reactor. And Korea's KSTAR has a tungsten divertor and recently demonstrated a 30-second, 100-million-degree plasma.

    Whether tungsten proves to be the key to unlocking commercial fusion energy remains to be seen.

    Commercial fusion energy is still likely decades away, but Delgado-Aparicio thinks they're making steps toward "this big goal of giving energy to humankind."

    PPPL said it will publish the results of its experiment in a peer-reviewed journal in a few weeks.

    Read the original article on Business Insider
  • Rep. Henry Cuellar’s indictment has the GOP comparing him to George Santos. Here’s what to know about the Texas Democrat’s bribery scandal.

    Rep. Henry Cuellar at a hearing on Capitol Hill last month.
    Democratic Rep. Henry Cuellar of Texas at a hearing on Capitol Hill last month.

    • Democratic Rep. Henry Cuellar of Texas was indicted by federal prosecutors on Friday.
    • He and his wife are accused of taking bribes from Azerbaijan and a Mexican bank.
    • The growing scandal is drawing some comparisons on the right to George Santos.

    Rep. Henry Cuellar is in the midst of a growing bribery scandal involving Azerbaijan and a Mexican bank.

    The Department of Justice unsealed an indictment against the Texas Democrat and his wife on Friday, accusing the duo of accepting nearly $600,000 in bribes over the course of nearly seven years.

    Cuellar is the third sitting lawmaker to be indicted this Congress, following former Republican Rep. George Santos of New York and Democratic Sen. Bob Menendez of New York.

    Here's everything to know about the charges against Cuellar, who the Texas Democrat is, and why some on the right are comparing his situation to that of Santos.

    Cuellar and his wife are accused of bribery, money laundering, and acting as an unregistered foreign agent

    According to the 54-page indictment, Cuellar and his wife accepted bribes from both Azerbaijan and a Mexican bank from December 2014 to November 2021, doing so through a series of shell companies and intermediaries.

    The indictment alleges that the couple collected roughly $600,000 in bribes — $360,000 from the State Oil Company of the Azerbaijan Republic and $236,390 from Banco Azteca.

    In the case of Azerbaijan, Cuellar's been accused of using his position as a member of the House Appropriations Committee to influence legislation to the benefit of the oil-rich state.

    With Banco Azteca, Cuellar has been accused pressuring officials in the executive branch to pursue policies favorable to the bank, as will as introducing legislation to shield the payday lending industry from federal regulation.

    The criminal counts against Cuellar and his wife include:

    • 2 counts of conspiracy to commit bribery of a federal official and to have a public official act as an agent of a foreign principal;

    • 2 counts of bribery of a federal official;

    • 2 counts of conspiracy to commit honest services wire fraud;

    • 2 counts of violating the ban on public officials acting as agents of a foreign principal;

    • 1 count of conspiracy to commit money laundering;

    • 5 counts of money laundering.

    Cuellar has denied any wrongdoing, saying in a statement that he and his wife are "innocent of these allegations" and that he still plans to seek reelection.

    He's the only anti-abortion House Democrat left — but party leadership helped save him two years ago

    Aside from his bribery scandal, Cuellar has been a top target of progressives for years, owing to his relatively conservative politics. He is the only House Democrat who voted against a bill to protect abortion rights nationwide during the last Congress, and he has previously received an "A" rating from the National Rifle Association.

    Cuellar faced a stiff challenge in 2022 from immigration lawyer Jessica Cisneros, who had the backing of progressives like Rep. Alexandria Ocasio-Cortez and Bernie Sanders. Ultimately, Cuellar won his primary by less than 300 votes.

    He was endorsed by the entirety of House Democratic leadership, who opted to endorse him again last year.

    That's even after the congressman faced an FBI raid on his home in 2022.

    The George Santos comparison

    It's only been a few days, but so far, Democrats have largely held off on calling for Cuellar to resign.

    A spokesperson for House Minority Leader Hakeem Jeffries said on Friday that Cuellar would "take leave" as the top Democrat on a key House subcommittee until the issue is resolved.

    That's led some to point to an apparent hypocrisy between how they're handling this situation versus George Santos, who was indicted on several criminal charges but was not yet convicted when Democrats and nearly half of House Republicans voted to expel him in December.

    Former Rep. George Santos at the State of the Union in March.
    Former Rep. George Santos at the State of the Union in March.

    Santos himself has made an issue out of it, claiming in a post on X that he's "ready to go to the Supreme Court to fight the constitutionality of my expulsion if the standard isn't maintained."

    But it's more complicated than that.

    For one, Republicans don't seem to be on the same page about this. While House Republicans' campaign arm has sought to tie other Democrats to Cuellar's scandal, former President Donald Trump has defended the congressman, argued that he's being targeted by President Joe Biden because of his conservative politics.

    Additionally, the standard that lawmakers set for Santos's expulsion was the release of a House Ethics Committee report. Once that committee did so — revealing, among other things, that Santos had bilked his campaign donors to pay for Botox — a broad bipartisan majority of lawmakers opted to expel Santos.

    Read the original article on Business Insider
  • Emotion could be a better way to measure brand value

    Equinox ad sweaty arm next to mouth with pomegranate seeds
    Equinox's "Want it All" campaign taps into an emotional connection with consumers.

    • Marketing has long struggled to establish an standard measurement for brand value.
    • Quantifying emotional impact in consumers using AI could be the next major marketing trend.
    • Companies like Equinox have started leveraging emotion in their campaigns. 

    The number one thing on the minds of CMOs in 2024 is proving measurable brand value.

    There have been many ways of assessing brand value in the past including revenue, the value of future net earnings, and net promoter scores. But nothing has ever been precise enough to become a singular industry standard.

    Net promoter score has come close, but having been invented over two decades ago, new times warrant additional methods of determining brand valuation. Gartner validated this shift in 2021 by predicting that NPS will be obsolete within 75% of organizations by 2025.

    Recommending a brand is not a complex enough metric on its own to determine a brand's overall worth. Quantifiable brand trust and loyalty have been kicked around as more modernized ways to assess a brand's valuation, particularly as loyalty in particular dissipated during the COVID-19 pandemic, usurped by convenience. Meanwhile as the cost of acquisition continues to rise, retention is a new mandate.

    Developing the means to quantify a brand's true value is the most important part of a marketing organization that needs to evolve.

    Some new disruptive thinking on brand value deserves consideration — the power of emotion. While we all know a lot about how customers behave or act, we know little about how they feel.

    The power of emotion — the Equinox example

    Emotion is the new currency driving quantifiable brand growth. So, what is emotion exactly? It's often defined as instinctive or intuitive feeling as distinguished from reasoning or knowledge. Conventional wisdom holds that thought precedes emotion but in fact, science has consistently proven that emotion precedes thought.

    Imagine if you could take this thinking even further to precisely score how trusting of and loyal your customers are to your brand to get to a precise total valuation, that is inarguable, no different than the accuracy of a stock's price. One can debate if a stock should trade higher or lower, but what it trades at on a given day based on how the markets are performing is an uncontested benchmark.

    A great example of a company that reinvented largely around having a deeper emotional understanding of customer needs and loyalty is Equinox.

    Equinox is built upon getting a consumer to subscribe to them holistically — to derive joy from the brand in some way every day versus just purchasing a membership. The brand has used a mix of innovation and unparalleled customer understanding to do so. As a result, it has become not just a stand-out in the luxury space, but among the most highly regarded brands related to emotional understanding, trust, and loyalty in the world.

    "Equinox pioneered a membership model that is set up to drive loyalty and engagement," Julia Klim, Equinox's VP of strategic partnerships told me."This is done in two ways. A top-down approach enticing emotion via wholly aspirational campaigns."

    Equinox's "Want It All" campaign exemplifies its emotional approach. "It sold the theme of desire as the engine that drives us all," Klim said.

    "There was also a complementary bottom-down approach, via sophisticated customer segmentation, that allowed us to create a personalized and entirely intuitive customer experience once you join," Klim said. "Another great example of how this played out was using deeper emotional intelligence of customers to help reimagine our personal training offer earlier this year."

    AI enables new tools, new ways to measure

    AI-enabled tools can deliver actual quantifiable scores around brand trust and loyalty, if they are used in combination with data science and direct human input. This can be done by enriching datasets or creating emotional lookalikes that highlight the "why" that is missing from existing segmentation and most first-party data.

    At Brandthro, we have created a Net Emotion Score tool using a proprietary AI and data science model to gauge how much brand love customers are feeling at any moment. This calculation is based off of emotional scores that tabulate brand trust and loyalty.

    Look for emotion to emerge as one of the most vital currencies that can solve the most common CMO pain points: de-risking investment, doing more with less, elevating loyalty, lowering the cost of customer acquisition and generating quantifiable brand value.

    Billee Howard is CEO of Brandthro.

    Read the original article on Business Insider
  • Why I’m bullish about this ASX stock and recently bought more!

    A woman leaps into the air with loads of energy, in a lush green field.

    The ASX stock Close The Loop Ltd (ASX: CLG) is a small-cap share I’m excited about. I recently decided to buy more of it for my investment portfolio.

    I don’t own many shares with market capitalisations under $500 million. But, in my opinion, smaller businesses generally have more growth potential because we’re able to get in at an earlier point of their growth journey.

    What Close The Loop does

    The company has locations across Australia, the United States, South Africa, and Europe. Through its resource recovery division, it collects and repurposes products with ‘takeback’ programs. The ASX stock also has a sustainable packaging division, which allows for “greater recoverability and recyclability”.

    The overall mission is “zero waste to landfill”.

    Close The Loop recovers from a wide variety of products, including electronic products, print consumables, cosmetics, plastics, paper, and cartons. It also reuses toner and post-consumer soft plastics as an asphalt additive.

    Why I’m bullish about the ASX stock

    The world is moving towards a circular economy where more of the products and materials are reused and recycled.

    For example, computer giant HP — one of Close The Loop’s main customers — wants to reach 75% circularity of its products and packaging by 2030. HP has reached 40% circularity by weight. By 2025, HP wants to use 30% post-consumer recycled plastic across its personal systems and print product portfolio. In 2022, it achieved 15% in HP products.

    There appears to be a lot of volume growth still to come, with Close The Loop playing a key part. And HP is just one business.

    The ASX stock’s financials are outperforming expectations. In the FY24 first-half, Close The Loop generated $106.2 million of revenue, compared to the guidance for FY24 of $200 million. It reported strong growth from its recovery division driven by increased volumes and new programs.

    The company also said the recently acquired ISP Tek Services had performed better than expected and opened opportunities in other jurisdictions.

    The company’s margins are growing, which bodes well for the long term as revenue grows. HY24 saw revenue increase 76%. Gross profit rose 94%, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 139% to $22.7 million, and underlying net profit before tax jumped 204% to $15.2 million.

    Close The Loop is doing a good job improving its balance sheet — in the FY24 first-half result, it reduced its net debt by $11.8 million to $26.2 million.

    Close The Loop share price valuation

    Forecasts are just educated guesses, but the valuation looks very appealing if the Commsec projections come true.

    It’s suggested that the business could generate earnings per share (EPS) of 4.2 cents in FY24 and 5.5 cents in FY25. That would put it at 7x FY24’s estimated earnings and 5x FY25’s estimated earnings.

    If that’s what it generates, this seems very cheap to me.

    The post Why I’m bullish about this ASX stock and recently bought more! appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    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…

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

  • 3 ASX dividend stocks to buy for an income boost

    If you have room in your portfolio for some more ASX dividend stocks in May, then it could be worth checking out the three listed below.

    They have been named as buys and tipped to provide attractive dividend yields. Here’s what you need to know about them:

    Rio Tinto Ltd (ASX: RIO)

    The first ASX dividend stock for investors to look at buying is Rio Tinto.

    It is of course one of the largest miners in the world and the owner of a portfolio of operations across multiple commodities. This includes the Gudai-Darri iron ore mine and the ISAL aluminium smelter.

    Goldman Sachs thinks it would be a great option if you’re not averse to investing in the mining sector. Particularly given its belief that “Rio is a FCF and production growth story.”

    The broker expects this to underpin fully franked dividends per share of US$4.29 (A$6.48) in FY 2024 and then US$4.55 (A$6.87) in FY 2025. Based on the latest Rio Tinto share price of $129.68, this will mean yields of approximately 5% and 5.3%, respectively.

    Goldman has a buy rating and $138.30 price target on its shares.

    Stockland Corporation Ltd (ASX: SGP)

    Another ASX dividend stock that could be a buy is Stockland.

    It is a leading residential developer with a focus on delivering a range of master planned communities and medium density housing in growth areas across Australia.

    Analysts at Citi are bullish and see Stockland as a buy at current levels. Particularly given recent positive news on residential sales momentum.

    In respect to dividends, Citi is expecting dividends per share of 26.2 cents in FY 2024 and 26.6 cents in FY 2025. Based on the current Stockland share price of $4.45, this will mean yields of 5.9% and 6% yields, respectively.

    Citi has a buy rating and $5.20 price target on its shares.

    Woodside Energy Group Ltd (ASX: WDS)

    A final ASX dividend stock that could be in the buy zone this month is Woodside Energy.

    It is one of the globe’s largest energy producers and the operator of world class operations such as Pluto LNG and Shenzi.

    Morgans thinks that investors should be taking advantage of recent share price weakness. Particularly given the quality of its earnings and strong balance sheet.

    In addition, the broker is forecasting attractive dividend yields in the near term. It is expecting the company to pay fully franked dividends of $1.25 per share in FY 2024 and $1.57 per share in FY 2025. Based on the current Woodside share price of $27.33, this equates to 4.6% and 5.75% dividend yields, respectively.

    Morgans has an add rating and $36.00 price target on its shares.

    The post 3 ASX dividend stocks to buy for an income boost appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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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…

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.