from Yahoo Finance https://ift.tt/3g3sBkk
-
Fed Chair Powell testifies, Walmart, Home Depot, Kohl’s report earnings: What to know in markets Tuesday
-
Strategist Expects Gold, Silver To Gain As Pandemic Panic Subsides
Gold and silver prices rallied Monday amid market strength as news from a Moderna Inc (NASDAQ: MRNA) trial stoked optimism about a potential coronavirus vaccine. On Monday, June gold futures were trading at $1,733 and July Comex silver prices were at $17.39 per ounce."Gold and gold stocks had a strong month, recovering all of their March losses and moving to long-term highs," Joe Foster, portfolio manager and strategist at VanEck, said in a note.Hedging With Gold As the pandemic market panic subsides, investors are trying to gauge the risks and opportunities in a world that carries a level of uncertainty that only those with memories of the Great Depression and World War II have experienced, the VanEck strategist said. "Continued strong inflows to bullion exchange traded products along with strong demand for retail coins indicates both institutions and individuals are turning to gold as a store of value and hedge against uncertainty," Foster said. On April 9, gold jumped $40 per ounce when the U.S. Federal Reserve unveiled its $2.3-trillion program to aid local governments and small- and mid-sized businesses."It [gold] went on to a new seven-year high of $1,747 per ounce on 14 April, then consolidated its gains around the $1,700 level. Gold ended the month at $1,686 per ounce for a $109 (6.9%) gain," he said. Banks 'Can't Arbitrarily Print' Gold The trillions being injected into the economy via quantitative easing alongside monetary and fiscal stimuli devalues and debases paper currency, said Bryan Slusarchuk, CEO of Fosterville South Exploration. "Gold is the only currency that central banks can't arbitrarily print more of, and as such it is the only currency that acts with stability during a time of crisis," he said. With more and more paper currency in circulation, the currencies become inherently worth less and less, the CEO said. Price Action The SPDR Gold Trust (NYSE: GLD) was down 0.57% at $163 at the time of publication Monday, while the VanEck Vectors Gold Miners ETF (NYSE: GDX) was down 1.56% at $36.Related Links:Barrick Gold Reports Q2 Earnings BeatMining Sector Hit By Coronavirus Lockdowns, Silver Production WallopedLatest Ratings for GLD DateFirmActionFromTo Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy View More Analyst Ratings for GLD View the Latest Analyst Ratings See more from Benzinga * Gold Analyst Says Rally Is Short-Term, Prices Will Recede To ,600 By Year's End(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
from Yahoo Finance https://ift.tt/36bBcg5
-
This is the latest ASX 200 stock to unveil double digit profit growth
The James Hardie Industries plc (ASX: JHX) share price will be in the spotlight this morning after it unveiled a rise in earnings and sales despite the turmoil from the COVID-19 pandemic.
The building materials group demonstrated again why it’s my top pick of the sector with CSR Limited (ASX: CSR) in second spot after it posted a better than expected result last week.
Expanding margins
But today belongs to James Hardie with management announcing a 17% increase in adjusted net operating profit of US$352.8 million for the year ended March 31, 2020.
Its adjusted earnings before interest and tax (EBIT) expanded by 20% to US$486.8 million while revenue increased 4% to US$2.61 billion.
This implies a much-improved margin that’s helped by its Lean manufacturing initiative, while its US operations were a standout.
US driving growth despite COVID-19
“I am particularly pleased with the outstanding North America performance, as we continued to grow above market while delivering exceptional returns,” said James Hardie chief executive Jack Truong.
“Underpinning our success in North America was 11% volume growth in the exterior business coupled with sustained volume growth of 5% in the interior business.”
US construction activity was already showing signs of weakness before the coronavirus outbreak. The pandemic further impacted on the sector with sector peer Boral Limited (ASX: BLD) looking worse for wear from the fallout.
There’s speculation that Boral may be forced to do a heavily discounted capital raising too, according to the Australian Financial Review.
Need for capital raising?
But there’s little worry that James Hardie will need to intrusively tap shareholders on the shoulder. While the group cancelled its final dividend to shore up capital, its liquidity position improved significantly in the fourth quarter.
Its cash pile increased from US$464 million at 31 December 2019 to US$510 million at 31 March 2020 and US$578 million at the end of last month.
Off to a good start in FY21
Interestingly, James Hardie commented that March was a cracker month with double-digit sales growth in all of its regions even though COVID-19 was already creating havoc around the world.
“In the fourth quarter, our Asia Pacific segment delivered good financial returns with revenue up 2% and Adjusted EBIT growth of 4% in local currency at an Adjusted EBIT margin of 20.5%,” added Dr Truong.
“Our Europe Building Products segment delivered strong revenue growth of 7% in Euros in the quarter, led by fiber cement growth of 50% and fiber gypsum growth of 3%.”
Europe is clearly the Achilles’ heel but at least its growing. The only downside to the results is the outlook.
Forecasting for more uncertainty
Management declined to offer any earnings guidance due to the volatility and uncertainty created by the global catastrophe.
James Hardie won’t be alone in not providing any specifics but this will keep investors on their toes as we have not seen the worst of the economic recession.
The only figures that management were willing to put in the open was its North America segment Adjusted EBIT margin. This is expected to range between 22% and 27% for FY21 compared with 25.3% in the March quarter.
Given the wide range, that doesn’t say very much in my view.
One “All In” ASX Buy Alert, that could be one of our greatest discoveries
Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.
This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.
What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.
Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.
Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.
More reading
- 4 ASX 200 shares exposed to a fall in house prices
- ASX 200 finishes up 1.4%, gold miner share prices surge
- Why Boral, Corporate Travel Management, United Malt, & Xero are dropping lower
- ASX construction shares feel impacts of COVID-19 shutdowns
- What happens to ASX shares if Australian house prices do fall 30%?
Motley Fool contributor Brendon Lau owns shares of James Hardie Industries plc. Connect with me on Twitter @brenlau.
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post This is the latest ASX 200 stock to unveil double digit profit growth appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3cEEH17
The Latest
Sorry, but nothing was found. Please try a search with different keywords.