• 2 top cryptocurrencies to buy and hold forever

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    For long-haul investors, trust is everything. Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) offer exactly that. Let’s explore the reasons why these “blue chip” cryptocurrencies can keep ahead of the competition with their strong brands and active development teams.  

    1. Ethereum 

    Ethereum was the first public blockchain to enable decentralized applications (dApps), which are programs that use self-executing smart contracts to provide services on the blockchain. The platform’s first-mover advantage and respected development team can help it create long-term value for investors. 

    With a market cap of $320 billion, Ethereum is the second-largest cryptocurrency behind Bitcoin. And it attracts the vast majority of dApp development with roughly 3,000 of the 4,000 total projects — a big driver of user demand. But Ethereum isn’t without challenges.

    According to data from Coinbase, Ethereum’s transaction capacity of 15 per second is far below rivals like Solana, which can handle 50,000 per second. And this means the platform struggles to handle its massive volume. But Ethereum’s developers plan to solve this problem through an upgrade called the Consensus Layer, which will change its proof-of-work (PoW) verification system to a proof-of-stake (PoS) system. 

    In Ethereum’s current PoW system, miners solve computational problems to verify transactions, which is expensive because it consumes real-world resources. PoS will allow miners to verify transactions using tokens they already own to hopefully speed up the process. It is unclear when Ethereum’s changes will go live, but the developers have a track record of successfully upgrading the network. 

    2. Bitcoin 

    Launched in 2009 by anonymous developer Satoshi Nakamoto, Bitcoin is the cryptocurrency that started it all. The hugely popular digital asset can maintain its dominant position through its widespread mainstream acceptance and decentralized investment community. 

    With a market cap of $790 billion, Bitcoin accounts for a whopping 43% of the entire cryptocurrency market. This scale gives it some advantages. According to fintech company Fundera, over 15,000 businesses worldwide accept Bitcoin as payment (the report doesn’t provide data for other cryptos). The asset also has significant institutional adoption. For example, the derivatives marketplace CME Group offers Bitcoin futures, which helps add liquidity to the Bitcoin market while boosting its reputation compared to newer cryptocurrencies that may lack institutional support. 

    Bitcoin’s ownership is also less centralized than newer rivals. According to data from coinmarketcap.com, its top 100 stakeholders control only 14% of the coins in circulation, compared to meme coins such as Dogecoin and Shiba Inu, where the top holders control 65% and 81% of available coins, respectively (data for Ethereum ownership is not available). Bitcoin’s decentralized ownership structure makes it harder for large holders to tank the price by unloading their positions, which is great news for investors who value stability. 

    The first-mover advantage 

    Bitcoin and Ethereum both enjoy first-mover advantages in their respective niches, giving them a lasting advantage in the cryptocurrency market. As the oldest public cryptocurrency, Bitcoin likely boasts the best brand recognition. But Ethereum is also a top choice because of its expanded functionality and active development team. 

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    The post 2 top cryptocurrencies to buy and hold forever 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. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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  • The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait?

    a woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop.a woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop.a woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop.

    The Transurban Group (ASX: TCL) share price has travelled sideways over the course of the last few years.

    COVID-19 headwinds impacted traffic levels as state government-mandated restrictions were enforced Australia-wide. This led Transurban shares to falter while management focused on navigating the business through the pandemic.

    Below, we calculate if the dividends have been worth the wait if a shareholder made an investment 3 years ago.

    What if you had invested $10,000 in Transurban shares 3 years ago?

    If you had invested $10,000 in Transurban shares on this day 3 years ago, you would have bought them for around $12.53 each. This would have given you approximately 798 shares without factoring in any dividend reinvestments over the years.

    Fast-forward to today, the current Transurban share price is $12.73. This means those 798 shares would now be worth around $10,158.54 (798 shares x $12.73). When considering percentage terms, this implies an upside of 1.59%.

    In contrast, the ASX 200 has returned a yearly average of 4.75% to shareholders in the past 3 years.

    And the dividends?

    Over the course of the last 3 years, Transurban has made a total of 6 bi-annual dividend payments from June 2019 to 2022.

    Adding those 6 dividends payments gives us an amount of $1.285 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $1,025.43 (798 shares x $1.285).

    When putting both the initial investment gains and dividend distribution, an investor would have made roughly $11,183.97.

    In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $11,493.76.

    Transurban share price snapshot

    Over the past 12 months, the Transurban share price has shed around 1%, driven by poor trading conditions.

    Its shares hit a 52-week low of $12.03 in January, before finding support around the mid $12 mark.

    Based on the current share price, Transurban commands a market capitalisation of around $39.09 billion.

    The post The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait? appeared first on The Motley Fool Australia.

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

    Before you consider Transurban, you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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  • Is Amazon stock a buy now before the 20-for-1 stock split?

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    a man holds his hand under his chin as he concentrates on his laptop screen and makes a concerned face.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    On March 9, Amazon (NASDAQ: AMZN) announced a 20-for-1 stock split, the company’s first split since 1999 and its fourth since the IPO in 1997. Additionally, Amazon announced a $10 billion share buyback plan. The company’s shares have rocketed 4,300% since its last stock split announcement. Amazon’s stock price soared to all-time highs after the pandemic, but it’s been trading sideways to lower since. Do the shares have more pain ahead, or is Amazon stock a buy now?

    Of course, you do not own more of Amazon because of the stock split. If you cut a pizza into 20 slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts, and I think the company looks attractive here as a long-term investment.

    In the video below, I break down the key fundamental highlights that will power Amazon over the next decade. I’ll also chart out Amazon’s price-to-sales ratio and provide an opinion on where I think the stock price is headed from here.

    *Stock prices used in the below video were during the trading day of March 11, 2022. The video was published on March 11, 2022.

    [youtube https://www.youtube.com/watch?v=VRPbsiObpqg?feature=oembed]

     

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    The post Is Amazon stock a buy now before the 20-for-1 stock split? appeared first on The Motley Fool Australia.

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

    Before you consider Amazon, you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Eric Cuka owns Alphabet (A shares), Amazon, Apple, and Nvidia. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The Motley Fool owns and recommends Alphabet (A shares), Amazon, Apple, Cisco Systems, and Nvidia. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Alphabet (A shares), Amazon, Apple, Cisco Systems, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Alphabet (C shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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  • Why has the Lake Resources (ASX:LKE) share price soared 30% in a week?

    a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.

    The Lake Resources N.L. (ASX: LKE) share price powered ahead by 30% last week. At market close on Friday, 4 March, the clean lithium developer’s shares were swapping hands for as little as 97 cents apiece.

    However, investors have been bidding up the company’s shares since following a couple of positive announcements.

    During midday trade on Friday, Lake Resources shares touched a record high of $1.335 before pulling back to close at $1.29, up 7.5%. That’s a gain of 33% over the week.

    Let’s take a look at what’s been driving the excitement around this company.

    What’s been happening with Lake Resources?

    The Lake Resources share price was on the move last week as investors appeared upbeat about the company’s prospects.

    Last Monday, Lake Resources advised it had utilised a market subscription agreement with Acuity Capital to raise $39 million.

    In return, Lake Resources issued 40 million fully paid ordinary shares to Acuity Capital at a cost of 97.5 cents each.

    While further strengthening the balance sheet, the funds will support development across the company’s four brine projects in Argentina.

    In addition, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices.

    As such, Lake Resources will be added to the S&P/ASX 300 Index on 22 March.

    It’s possible the updated list has led investors to take advantage of the upcoming change.

    Most fund managers are required to adhere to their strict guidelines, which allows them to buy shares only within a certain index. On the other hand, exchange-traded funds (ETFs) usually pick up and/or dump the appropriate shares to keep in line with the benchmark.

    About the Lake Resources share price

    The Lake Resources share price has zoomed upwards of almost 300% over the past year. This is likely in part due to renewed investor sentiment within the battery industry.

    Based on today’s price, Lake Resources commands a market capitalisation of roughly $1.46 billion, with approximately 1.22 billion shares outstanding.

    The post Why has the Lake Resources (ASX:LKE) share price soared 30% in a week? appeared first on The Motley Fool Australia.

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

    Before you consider Lake Resources, you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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  • 2 ASX shares to buy now, no matter what else happens this year: experts

    busy trader on the phone in front of board depicting asx share price risers and fallersbusy trader on the phone in front of board depicting asx share price risers and fallersbusy trader on the phone in front of board depicting asx share price risers and fallers

    It’s only 2.5 months old, but 2022 has been action-packed. And not in a good way.

    First, we saw the share market in freefall about inflation and interest rate rises. Then just as it partially recovered from that, the war in Ukraine broke out.

    So while there are plenty of cheap ASX shares out there, experts caution careful selection when picking up bargains right now.

    As such, the team at Firetrail provided some guidance to 2 ASX shares that they think will still do well in a turbulent year:

    $300 million to come, by doing nothing 

    Firetrail portfolio manager Scott Olsson likes the look of QBE Insurance Group Ltd (ASX: QBE) during a time when interest rates are sure to rise.

    But he did admit the insurance giant has disappointed shareholders in recent years.

    “It is a stock that’s been very hard to own over the past 15 years,” he told a Firetrail webinar.

    “But now is the time to own QBE.”

    The simple fact is that QBE holds $3 billion of premiums before claims payouts. This means a one percentage point increase in interest rates would mean a $300 million uplift for the business.

    Also, business insurance premiums have increased 30% over the past three years, according to Olsson.

    “That can flow through into better profitability rolling forward.”

    QBE shares are now at a 15% discount to its long-term trend, said Olsson.

    “And that just screams very cheap to us, given earnings can grow by 20% into FY23 and 20% again into FY24.”

    QBE shares are down more than 11% in the year to date, ending Friday at $10.55. 

    Inevitable growth for aged care sector

    Even for a small companies analyst like Firetrail’s Eleanor Swanson, chaotic times has her retreating into more defensive investments.

    And one ASX share that she has her eye on at the moment is aged care provider Estia Health Ltd (ASX: EHE).

    “Estia Health is an undervalued defensive, with material tailwinds,” she said.

    “What matters for Estia is that Australia has an ageing population.”

    Swanson cited forecasts that the number of aged care beds will have to increase 2.5 times over the next 20 years.

    While the sector faces uncertainty about regulation and funding, Swanson believes the government will be “highly incentivised” to improve business conditions to attract investment.

    The Firetrail team also believes Estia will improve occupancy rates, which will directly benefit the bottom line, as much of its costs are fixed.

    And compared to recent acquisitions in the aged care industry, Estia’s valuation is very low at around $100,000 per bed, implying future growth potential.

    Bolton Clarke‘s acquisition of Allity… The acquisition multiple implied a value per bed of $160,000,” said Swanson.

    Calvary recently acquired Japara… and paid $130,000 per bed.”

    Estia shares have risen by more than 11% over the past month, closing Friday at $2.27.

    The post 2 ASX shares to buy now, no matter what else happens this year: experts 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. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Tony Yoo 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 Bruce Jackson.

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  • 2 high-growth tech ETFs

    The letters ETF with a man pointing at it.

    The letters ETF with a man pointing at it.The letters ETF with a man pointing at it.

    There are certain exchange-traded funds (ETFs) out there that can provide investors with plenty of exposure to long-term growth, with a tech weighting.

    Some ETFs are just based on a broad share market or index, such as the S&P/ASX 200 Index (ASX: XJO).

    But there are other options that are based just on a particular sector with growth characteristics.

    Here are two ETF candidates that own businesses that have been growing for a long time:

    Betashares Global Cybersecurity ETF (ASX: HACK)

    This ETF gives investors a way to get access to the world’s cybersecurity companies.

    There is a mixture of global giants and emerging players in the portfolio.

    Some readers may have heard of some of the ETF’s biggest holdings, such as: Palo Alto Networks, Cisco Systems, Crowdstrike, Accenture, Mandiant, Check Point Software, Leidos, Thales, Juniper Networks and Tenable.

    BetaShares explains that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

    According to Statista, the size of the global cybersecurity market is expected to grow from $137.63 billion in 2017 to $248.26 billion in 2023. BetaShares also points out that Australian investors currently have few local options for gaining exposure to this fast-growing cybersecurity sector.

    Past performance is not a reliable indicator of future performance. Over the past five years, the ETF has produced an average net return per year of 20.5% to 28 February 2022.

    VanEck Video Gaming and Esports ETF (ASX: ESPO)

    This ETF is about the global gaming and e-sports sector.

    There is a total of 26 positions in the portfolio. These are the biggest ten, by weighting: Advanced Micro Devices, Tencent, Activision Blizzard, Nintendo, Nvidia, Netease, Nexon, Electronic Arts, Take-Two Interactive Software and Bandai Namco.

    VanEck points out that the global gaming sector has seen consistent global growth in revenue. Video gaming has seen 12% average annual growth since 2015.

    E-sports has created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales and advertising. E-sports revenue growth has increased by 28% on an average each year since 2015.

    The companies in this portfolio are positioned to benefit from the increasing popularity of video games and e-sports. The companies in the portfolio make a significant portion of their revenue from the video gaming sector.

    VanEck also notes that this investment can provide tech exposure away from Apple, Amazon, Facebook, Google and Microsoft.

    Again, past performance is not a reliable indicator of future performance. Over the last five years, the video gaming index that this ETF tracks has returned an average of almost 27% per annum to 28 February 2022.

    The post 2 high-growth tech ETFs 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. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week?

    Four people in business suits and white hard hats sit in front of desk and cheerFour people in business suits and white hard hats sit in front of desk and cheerFour people in business suits and white hard hats sit in front of desk and cheer

    What a rollercoaster last week was for ASX shares. Monday and Tuesday saw the All Ordinaries Index (ASX: XAO) fall, while Wednesday and Thursday saw it in the green. On Friday, it was in the red again. But investors in the Cobalt Blue Holdings Ltd (ASX: COB) share price had nothing to worry about.

    Cobalt Blue shares rocketed an impressive 30.9% over the course of last week, rising from 55 cents per share to 72 cents. That puts Cobalt Blue up around 44% in 2022 so far.

    So what has happened to give investors such a surge of optimism over the last week?

    Cobalt Blue share price charges up

    Well, it has to be said that it’s not entirely clear. Cobalt Blue’s Broken Hill Cobalt Project was granted ‘major project status’ recently.

    This development means Cobalt Blue will receive government support for the project, which aims to produce “high quality, battery-ready cobalt sulphate”. This sparked a surge of optimism for the Cobalt Blue share price at the time as it surged by more than 20% at one point. But that was made public on 2 March, more than a week ago.

    But we could also be seeing a general rise in investor sentiment towards Cobalt Blue and other ASX cobalt shares. As my Fool colleague Mitchell reported on Friday, the price of raw cobalt itself has been surging of late.

    The metal is a key ingredient inside many lithium-ion rechargeable batteries, itself a huge growth industry. As such, investors and suppliers alike have been keen to secure a piece of the market.

    Cobalt Blue is one of the biggest cobalt plays on the ASX. But it is not the only cobalt company to have enjoyed some recent gains. Jervois Global Ltd (ASX: JRV) is another ASX cobalt share. Although Jervois didn’t have quite the week that Cobalt Blue had, its shares are still up an impressive 44% or so over the past six months.

    At the current Cobalt Blue share price, this ASX resources share has a market capitalisation of $213.6 million.

    The post Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Cobalt Blue right now?

    Before you consider Cobalt Blue, you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Buying Qantas (ASX:QAN) shares is more than a COVID-19 recovery play: expert

    A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.

    If one rack’s the mind for a typical ASX COVID recovery share, the Qantas Airways Limited (ASX: QAN) share price would have to be one of the strong contenders. Qantas, largely due to its nature as an airline, was of course hard hit by the emergence of the pandemic two years ago. Between 21 February and 20 March 2020, the Qantas share price fell by a nasty 63% or so.

    But it didn’t take long for Qantas shares to change from COVID-19 victim to ‘recovery play’. The Qantas share price rose by an enriching 142% or so between March 2020 and October 2021.

    But more recently, we have started to see Qantas shares stagnate. The Flying Kangaroo remains down 8.5% over the past 12 months on current pricing. It’s also down by 5.8% this year to date.

    So are Qantas shares just a spent recovery play as they stand today?

    Why Qantas shares are a buy: analyst

    The answer is a definite ‘no’, according to Sean Drennan, High Conviction Fund analyst for fund manager Firetrail. Here’s some of what he had to say on why he is bullish on Qantas shares right now:

    COVID has not only dominated the headlines, but it has also dominated the stock market’s perception of Qantas… But there are several factors that are currently being overlooked that make Qantas extremely compelling for investors willing to look through the headlines.

    While Qantas is accruing losses, cash is still coming in the door, as people book flights in advance for future travel. Management also just raised $800 million through the sale of excess land. All up, this gives Qantas about $4 billion in available liquidity to withstand the turbulence… The key point here is that Qantas’ balance sheet remains resilient…

    As the dominant domestic airline, we are confident that Qantas will not only survive the pandemic, but emerge in a much stronger competitive position… There is a huge amount of pent-up demand.

    The crisis hasn’t been wasted…

    Drennan points to a resurgence in worldwide travel bookings amid a relaxation of travel restrictions around the globe Looking at the medium- to long-term outlook, Drennan points to Qantas’ competitive position as a key advantage for the company. That’s especially true for the domestic market.

    He also points to the $1 billion in costs that management has stripped out of Qantas over the pandemic as a reason to be bullish.

    He concludes by predicting that Qantas will return to paying dividends in the not-too-distant future. That would boost shareholders’ returns even further.

    No doubt Qantas shareholders will be hoping that Drennan and Firetrail are right in their analysis of Qantas shares’ potential. But we shall have to wait and see how the ‘national carrier’ fares over the next few years to be sure.

    At Friday’s closing Qantas share price of $4.85, this ASX 200 airline has a market capitalisation of $9.3 billion.

    The post Buying Qantas (ASX:QAN) shares is more than a COVID-19 recovery play: expert appeared first on The Motley Fool Australia.

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

    Before you consider Qantas, you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst

    Smiling man sits in front of a graph on computer while using his mobile phone.Smiling man sits in front of a graph on computer while using his mobile phone.Smiling man sits in front of a graph on computer while using his mobile phone.

    ASX investors might not be used to the Pilbara Minerals Ltd (ASX: PLS) share price falling in any kind of sustained way. Sure, Pilbara has made a name for itself as one of the more volatile shares on the S&P/ASX 200 Index (ASX: XJO).

    But this is a company that has given investors a return of 189% over the past year, after all. Not to mention its 515% return over the past five years.

    And yet, here we are. The Pilbara share price is down more than 10% in the past month alone. It’s also down more than 26% from the new all-time high of $3.89 a share that we saw back in January.

    But could this rare pullback for Pilbara shares represent a buying opportunity? One analyst thinks so.

    Why the Pilbara share price is a buy: analyst

    Henry Jennings of Marcus Today, recently wrote a ‘Stock Ideas’ piece for broker NABtrade. Jennings did acknowledge Pilbara’s slowing production, as well as the upcoming departure of the company’s CEO. However, he also argued that renewal might not be a bad idea for Pilbara, and “fresh eyes may be a positive”.

    Here are some more of his arguments (with some humour thrown in):

    [Pilbara] have good exposure to spot prices around 30% I understand…

    The new auction pricing mechanism (known as BMX, not bandits) reminds me of the time when BHP and RIO stopped fixed price iron ore contracts with Japan and embraced the spot market. Being a current producer means that PLS can access these higher prices now. That is a huge positive. Volumes down but realised prices up.

    After recent falls, the stock is now starting to look attractive and with brokers now upgrading lithium price forecasts, PLS is a buy at around 280c. Having a producer is a bedrock but it is also good to have an explorer with upside potential.

    So there you have it, Jennings rates Pilbara as a buy, with a share price target of $2.80. That’s not too far off of the closing price of $2.87 we saw on Friday.

    At this share price, Pilbara Minerals has a market capitalisation of $8.6 billion.

    The post Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pilbara Minerals right now?

    Before you consider Pilbara Minerals , you’ll want to hear this.

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

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 2 ASX dividend shares with attractive yields

    ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

    ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividendASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

    If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

    Both dividend shares are expected to provide investors with yields of over 4% in the near term. Here’s what you need to know about them:

    BWP Trust (ASX: BWP)

    The first ASX dividend share to look at is commercial property company, BWP.

    It has a focus on warehouses, with the majority of its properties leased to hardware giant Bunnings Warehouse. In fact, the company is the largest owner of the hardware giant’s properties and counts Bunnings’ owner, Wesfarmers Ltd (ASX: WES), as a major shareholder.

    BWP has been a positive performer over the last couple of years thanks largely to the strength of the Bunnings business. The retailer’s strong sales and profits have allowed BWP to collect rent mostly as normal and also underpinned a notable increase in the value of its properties.

    In FY 2022, management expects to pay shareholders a distribution in the region of 18.29 cents per unit. Based on the current BWP share price of $4.00, this will mean a 4.6% dividend yield.

    Rural Funds Group (ASX: RFF)

    Another ASX dividend share that offers an attractive yield is this agricultural real estate investment trust (REIT).

    Rural Funds owns a diversified portfolio of Australian assets which are leased to large industry players including Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE). The company also recently added to its portfolio through the acquisition of a number of cattle and cropping properties in Queensland.

    All in all, these properties and their fixed rental increases and long leases leave Rural Funds well-placed for growth over the next decade.

    In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $2.76, this represents a yield of 4.25%.

    The post 2 ASX dividend shares with attractive yields 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. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended RURALFUNDS STAPLED and Wesfarmers Limited. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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