Stock Pick

  • Uber Rejects GrubHub’s All-Stock Proposal – Report

    Uber Rejects GrubHub’s All-Stock Proposal – ReportUber (UBER) has rejected an all-stock proposal to buy food delivery company Grubhub (GRUB) for 2.15 Uber shares per share of Grubhub, reports CNBC’s David Faber.According to Faber, the two companies have been in discussions about a deal for about a year, but have so far failed to agree on a price.“We remain squarely focused on delivering shareholder value,” Grubhub wrote in a statement to CNBC. “As we have consistently said, consolidation could make sense in our industry, and, like any responsible company, we are always looking at value-enhancing opportunities. That said, we remain confident in our current strategy and our recent initiatives to support restaurants in this challenging environment.”Meanwhile Uber wrote: “We are constantly looking at ways to provide more value to our customers, across all of the businesses we operate.” The company added: “We have shown ourselves to be disciplined with capital and we do not respond to speculative M&A premiums.”According to Bloomberg, an agreement could be reached as early as this month. The news sent Grubhub shares surging 38%, before closing Tuesday’s trading 29% higher.Overall, Wall Street analysts have a bullish outlook on Uber stock with 26 Buys, 2 Holds and 1 Sell- giving UBER its Strong Buy consensus. The $39.59 average price target indicates 22% upside potential lies ahead. Shares are currently trading up 9% on a year-to-date basis. (See Uber stock analysis on TipRanks).“Clearly this would be an aggressive move by Uber to take out a major competitor on the Uber Eats front and further consolidate its market position, especially as the COVID-19 pandemic continues to shift more of a focus to deliveries vs. ride sharing in the near-term,” Wedbush analyst Ygal Arounian wrote in a report to investors on May 12.He also added that he “wouldn’t rule out a bidding war with DoorDash.”Related News: Uber Puts Hopes on Food Delivery Momentum After $2.9 Billion Loss AMC Takeover Rumors: Is Amazon Taking a Leaf out of Warren Buffet’s “Blood on the Street” Playbook? AMC Pops 11% Amid Potential Acquisition Talks by Amazon More recent articles from Smarter Analyst: * Atlassian Snaps Up Halp For Slack-First Ticketing * Tesla’s California Auto Plant Gets Go-Ahead to Reopen Next Week * Pfizer Plans To Test Covid-19 Vaccine On Thousands Of Patients By September- Report * Gilead Signs Remdesivir Licensing Agreements With Five Drugmakers

    from Yahoo Finance https://ift.tt/3dHllbW

  • Musk, Texas governor talk about potential Tesla move to Lone Star state

    Musk, Texas governor talk about potential Tesla move to Lone Star stateTexas Governor Greg Abbott said on Tuesday that he spoke with Elon Musk, the chief executive of Tesla Inc , in recent days about a potential move of the company’s electric vehicle assembly plant to the Lone Star state. Abbott’s remarks came just came three days after Musk threatened to move Tesla’s headquarters and future operations to either Texas or Nevada, after officials in the California county where Tesla’s only U.S. vehicle factory is located said the plant could not reopen because coronavirus lockdown measures remained in place. Abbott said during an interview with the Wichita Falls CBS affiliate that he thinks Texas is a perfect fit for Tesla .

    from Yahoo Finance https://ift.tt/2SZUO1E

  • Why every dividend investor should own this ASX share

    Dollar sign with crown

    Here’s why I think every ASX dividend investor should own shares of Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

    ‘Soul Patts’ (as it’s more easily known) is an ASX conglomerate that’s sometimes described as the ‘Berkshire Hathaway’ of the ASX. That’s because Soul Patts’ management follows a remarkably similar strategy to that of Berkshire’s famous chief Warren Buffett.

    Buffett has made a name for himself by acquiring a diverse range of top-quality businesses that all sit within the Berkshire stable. The combination of these businesses results in a company that Buffett himself likes to describe as a ‘financial fortress’.

    And that’s exactly what Soul Patts tries to emulate.

    Some of the companies it owns shares of include phone-and-internet provider TPG Telecom Ltd (ASX: TPM), coal miner New Cope Corporation Limited (ASX: NHC), building supplies manufacturer (and part-time landlord) Brickworks Limited (ASX: BKW) and investment company BKI Investment Co Ltd (ASX: BKI). With this healthy cross-section of the ASX, I think Soul Patts is one of the best ways to get broad exposure to the Australian economy outside of buying an index fund.

    But it’s the Buffett-esque long-term thinking and eye on the bigger picture that makes Soul Patts stand out, in my view. All of the businesses above pour dividends into Soul Patts every year and all have shown their worth over many years for the company.

    An ASX dividend king?

    Speaking of dividends, we now come to the crux of this company’s potential. Soul Patts has one of – if not the – best dividend records of any company on the ASX. It has paid a dividend every year since its listing in 1903 – think about that! Its shareholders have enjoyed payouts every year of the Great Depression and every year of the Second World War.

    Not only that, but Soul Patts is also the only company on the ASX to have delivered a dividend increase every year since 2000. Anyone who bought shares in the year 2000 (for $3.50) is now getting an approximate yield-on-cost of 16.86% per annum!

    One other ASX company – Ramsay Health Care Limited (ASX: RHC) – also held this record but lost it this year when it suspended its dividends, along with many other former ASX dividend heavyweights.

    This elevates Soul Patts even higher in my eyes. It remains hands-down the best dividend share on the ASX for these reasons and leaves no argument (in my view) that this ASX share should be in every dividend investor’s portfolio.

    For another top ASX dividend payer, you won’t want to miss the free report below!

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all time high and paying a 6.7% grossed up dividend

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    *Returns as of 7/4/20

    More reading

    Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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 Why every dividend investor should own this ASX share appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2T400BA

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