Stock Pick

  • ANZ shares strike 7-year high, is it too late to buy?

    A mature-aged couple high-five each other as they celebrate a financial win and early retirement

    The ANZ Group Holdings Ltd (ASX: ANZ) share price touched a new seven-year high of $30.10 this afternoon. As the chart below shows, it hasn’t been this high since 2017.

    Many ASX bank shares hit new highs yesterday, continuing a very strong period for bank share prices.

    In 2024 to date:

    • The ANZ share price is up 16%
    • The Commonwealth Bank of Australia (ASX: CBA) share price is up 18%
    • The Westpac Banking Corp (ASX: WBC) share price is up 23%
    • The National Australia Bank Ltd (ASX: NAB) share price is up 22%

    After such a strong run, should investors consider ANZ shares as an opportunity? Let’s consider the situation.

    Recent financial performance

    The recent FY24 first-half result did not exactly deliver inspirational numbers. Compared to the second half of FY23, cash profit fell 1% to $3.55 billion and statutory net profit dropped by 4% to $3.4 billion. Earnings per share (EPS) declined by 1% to $1.183.

    The result had a couple of positive aspects — it launched a $2 billion share buyback and grew the interim dividend per share to 83 cents. In terms of shareholder returns, it has been a rewarding time.

    Property prices are rising in Australia, which lowers ANZ’s risk of bad debts. However, arrears are rising at the major banks as some households struggle to keep up with the elevated interest rates. Changes in market expectations about arrears can influence the ANZ share price.

    The bank’s net interest margin (NIM) was 2.32% in the second quarter of FY24. This has dropped significantly from 2.47% in the first quarter of FY23. Indeed, the NIM has dropped every quarter since the post-COVID peak.

    There is a lot of competition in the bank space for both loans and deposits, which is a headwind for margins. Competitors like Macquarie Group Ltd (ASX: MQG) have grown their market share.

    It’s understandable why ANZ wants to acquire the Suncorp Group Ltd (ASX: SUN) banking operations because it can help grow its market position and improve geographic diversification with a bigger allocation to Queensland. The bigger scale comes with benefits in the banking world.

    Is it too late to buy?

    Over time, companies that grow their earnings typically see their share price rise.

    The broker UBS suggests that ANZ’s net profit will fall in FY24, but it then sees profit growth in FY25, FY26, and FY27, partly due to the bank’s enlarged scale after the deal to buy Suncorp Bank.

    ANZ shares are valued at 12x FY25’s estimated earnings and 11x FY27’s estimated earnings, according to UBS forecasts.

    If the ASX bank share can deliver earnings growth in FY25 onwards, then the ANZ share price may continue to rise.

    However, UBS has a price target of $30 for the business, which may suggest that the bank does not have much capital growth potential over the next 12 months. It may not be too late to buy ANZ shares for their long-term potential, but I wouldn’t expect double-digit capital growth over the next year.

    The post ANZ shares strike 7-year high, is it too late to 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Who is buying 55,000 Liontown shares this week?

    A person wears a roaring lion mask.

    The Liontown Resources Ltd (ASX: LTR) share price is almost unchanged compared to 34 months ago.

    At 97 cents apiece, shares in the lithium hopeful are roughly the same value as they were back in September 2021, despite surpassing $3 a pop in the time between. However, the lack of share price appreciation has failed to deter one company insider from loading up on Liontown shares.

    Insider transactions provide a glimpse into the sentiment among people who perhaps most intimately know the company and its intrinsic value. While it’s by no means conclusive on whether the shares are ‘cheap’ or ‘expensive’, it certainly can be seen as a vote of confidence.

    Hitting buy on Liontown shares

    Someone on the board of Liontown Resources made an on-market buy of 55,000 shares yesterday. Because this information must be disclosed to shareholders, we can find all the transaction details.

    According to the notice, independent non-executive director Jennifer Morris made the trade on Tuesday. The parcel of Liontown shares was acquired at an average price of 97 cents per share, amounting to a $53,350 investment.

    Following the purchase, Morris’ indirect and direct ownership of Liontown totals 141,619 shares. The board member also holds 500,000 unlisted options with an exercise price of $2.45, expiring on 23 November 2024.

    Morris’ $53,350 buy arrived the day after Liontown announced an offtake agreement with Beijing Sinomine International Trade (BSIT) on Tuesday. The announcement helped lift the Liontown Resources share price back above $1.00 for the first time since 19 June.

    As part of the agreement, Liontown will supply up to 100,000 dry metric tonnes of spodumene concentrate over a 10-month timeframe beginning 30 September 2024 at the latest. The agreement expands upon existing offtake arrangements with LG, Ford, and Tesla.

    Is it a well-timed investment?

    The price of lithium is down roughly 85% from its 2022 high, taking a hit as demand for electric vehicles dried up amid heightened financing costs.

    However, the Tesla Inc (NASDAQ: TSLA) stock price and the broader share market have rallied over the past month as rate cuts begin re-entering the conversation. Investors are growing more optimistic about lower interest rates being within reach, reigniting hopes of greater lithium demand ahead.

    As reported by CNBC, forecasts made by BMI of Fitch Solutions suggest there’s a risk of a global lithium shortage next year. Notably, the report highlights an expected 20.4% average annual increase in lithium demand within China between 2023 and 2032 versus a 6% supply growth rate in the country over the same period.

    Still, not all analysts are bullish on the battery commodity. As noted by my colleague, James Mickleboro, Goldman Sachs sees little in the way of lithium price upside between now and 2027.

    Only time will show whether Jennifer Morris’ $53,350 investment in Liontown shares pays off.

    The post Who is buying 55,000 Liontown shares this week? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Mitchell Lawler has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

  • 2 European countries are going to lose millionaires in the next 4 years

    View of Big Ben, London
    The UK and the Netherlands are going to lose millionaires in the next few years, per UBS.

    Jakub Porzycki/Getty Images

    • The UK and the Netherlands will see a decline in millionaires by 2028, per a new UBS report.
    • Both countries saw an influx of millionaires from people choosing to move there.
    • The millionaire decline continues a larger trend of nomadic wealth around the globe, per UBS

    Most developed countries are set to gain more wealthy people in the next five years — with two big outliers.

    UBS tracked 56 countries for its annual wealth report, released last week. The financial services firm found that 52 of them will add millionaires by 2028. Some countries, like Taiwan, will gain as many as 50% more millionaires during that time.

    But the United Kingdom and the Netherlands make "notable exceptions" on this list, per UBS, because both are forecasted to lose millionaires.

    The UK and the Netherlands had attracted "nomadic wealth" — people who chose to move to those countries, rather than those who made their money locally — wrote Paul Donovan, chief economist at UBS Global Wealth Management, in an email to Business Insider.

    "Wealth has become more mobile in several parts of the world, as a function of numerous push and pull factors," Donovan said. "If more millionaires are changing location, then those economies which are disproportionately attractive for nomadic wealth are also more vulnerable to movements in that nomadic wealth."

    The UK's three million millionaires put it third among countries with the highest number of millionaires last year, as measured in US dollars, per UBS.

    That's "more millionaires than there should be, given the size of the economy," Donovan said at a media event on July 10.

    However, UBS forecasts this number to decline by 17% by 2028. The loss continues a trend: The UK lost 16,500 millionaires between 2017 and 2023, per immigration consultancy Henley & Partners. Some millionaires have been leaving the UK in search of better taxes and more stable, business-friendly politics, while others were hit by sanctions against Russia.

    The UK is changing a longtime millionaire-friendly tax policy that effectively allowed foreign wealth to be earned tax free. The tens of thousands of UK residents who qualify as "non-dom" filers are now set to eventually pay taxes on their foreign earnings, a major disruption for the wealthy elite. Alternative ports of call for this group of millionaires will likely include Paris, Dubai, Sydney, and the Italian Riviera, per Henley & Partners.

    The Netherlands also similarly holds an outsize number of wealthy residents: over 1.2 million millionaires, which is about the same as Italy and Spain but with a smaller economy than its peers. UBS forecasts the country's millionaire count will go down 4% by 2028.

    From 2013 to 2023, the Netherlands' millionaire number jumped 32%, according to data provided to BI by Andrew Amoils, head of research at New World Wealth.

    The "growth rate there has been good, especially compared to [the] UK," Amoils told BI.

    Geopolitical instability in Europe, marked by the rise of far-right parties and potential conflicts, has made wealthy individuals seek alternative residence options through investment migration programs. In recent months, applications have spiked nearly 60% for such programs, a spokesperson for Henley and Partners told Business Insider. These programs offer residence rights or citizenship in exchange for significant financial contributions.

    Read the original article on Business Insider

  • BOQ share price rises amid rumoured takeover interest

    A man thinks very carefully about his money and investments.

    The Bank of Queensland Ltd (ASX: BOQ) share price is in the green today, up 1.2%, alongside the S&P/ASX 200 Index (ASX: XJO), which is trading around 1% higher.

    Could the ASX bank share be getting a boost on speculation of possible takeover action?

    Potential BOQ takeover attempt?

    In recent times, the market has seen ANZ Group Holdings Ltd (ASX: ANZ) launch a takeover effort to absorb the banking operations of Suncorp Group Ltd (ASX: SUN) to boost its Queensland presence and overall scale.

    Federal treasurer Jim Chalmers recently gave ANZ the go-ahead for the takeover.

    Meanwhile, multiple interested parties have considered the Bank of Queensland a potential takeover target, according to reporting by The Australian.

    Those groups have reportedly not followed through (yet) after considering a possible deal.

    Strategic review

    A few months ago, the Queensland-focused ASX bank share launched a strategic review of the business.

    The newspaper report suggested that the current BOQ share price was not compelling enough to enact a deal. Even so, those groups have still been considering the bank and its assets.

    Some smaller banks, like BOQ, have difficulty trying to be as profitable as the major ASX bank shares.

    Analysts’ views on how BOQ could increase profitability after its strategic review included suggestions to become smaller and more margin-focused. It could also pursue securitising its loans more aggressively, make loans without financing them, or sell some assets.

    However, some of those options may not be viable or preferred for the ASX bank share.

    How much profit is the bank expected to make?

    While BOQ’s 2024 financial year is ongoing, the broker UBS forecasts the bank could generate a net profit after tax (NPAT) of $294 million. However, after that, UBS thinks BOQ’s net profit could steadily rise in each financial year between FY25 and FY28. Growing profit could be helpful for the BOQ share price.

    Analysts at the broker forecast the BOQ net profit to grow 8.8% to $320 million in FY25 and to $406 million by FY28. If both forecasts are correct, that would be a rise of 38% between FY24 and FY28.

    Regarding the potential dividend payment, the forecast on Commsec suggests a possible annual payout of 33 cents per share in FY24 and 34 cents per share in FY25. That would translate into forward grossed-up dividend yields of 7.5% and 7.75%, respectively.

    The post BOQ share price rises amid rumoured takeover interest appeared first on The Motley Fool Australia.

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

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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.

  • Biden is lauding Kamala Harris, saying his VP ‘could be president of the United States’

    President Joe Biden and Vice President Kamala Harris viewing fireworks from the White House balcony during a 4th of July event.
    President Joe Biden and Vice President Kamala Harris viewing fireworks from the White House balcony during a 4th of July event.

    Samuel Corum/Getty Images

    • Biden is heaping praise on his deputy, Kamala Harris, even as calls for him to step aside grow.
    • "She's not only a great vice president, she could be president of the United States," he said.
    • Biden has not indicated that he plans to step aside and give up on the 2024 race.

    President Joe Biden is heaping praise on Vice President Kamala Harris, saying she "could be the president of the United States."

    Speaking at a National Association for the Advancement of Colored People (NAACP) event, he started by slamming former President Donald Trump for his claim that immigrants are "taking black jobs" during the presidential debate last month.

    "I know what a black job is. It's the vice president of the United States," he said.

    "Folks, because of you, I am president, and Kamala Harris is vice president," he said before adding: "And by the way, she's not only a great vice president, she could be president of the United States."

    This appeared to be a more articulate version of his praise for Harris at a press conference on July 11, during which he mixed up Harris and Trump's names.

    "Look, I wouldn't have picked Vice President Trump to be vice president if I didn't think she was not qualified to be vice president," Biden said during the press conference.

    To be sure, Biden has consistently maintained that he does not intend to drop out of the race, despite mounting pressure from Democratic lawmakers, donors, and political commentators to step aside in favor of a more viable candidate.

    In a recorded interview on Friday, Complex Networks' Speedy Morman asked Biden if he was committed to continue in the race.

    He responded: "Unless I get hit by a train, yeah."

    He is hanging on despite at least 20 House Democrats calling on him to quit.

    In a letter to House Democrats on July 8, he said: "I wouldn't be running again if I did not absolutely believe I was the best person to beat Donald Trump in 2024."

    However, an Ipsos poll conducted for ABC News and The Washington Post on July 11 showed that if Harris ran for the top job instead of Biden, she would have a two-percentage-point edge over former President Donald Trump.

    The poll surveyed 2,431 adults and found that Harris would have a lead over Trump of 49% to 47% among registered voters.

    In contrast, RealClearPolitics' polling averages show that Biden trails behind Trump in six key swing states.

    Biden's campaign manager has also said that if Biden quits, most of his campaign's sizable war chest will go to Harris.

    While Harris has backed Biden, she has been stepping up her game at events and appeared increasingly presidential after the debate.

    For instance, while Biden fumbled during the NATO summit speech, Harris was putting on a much stronger show while on a campaign trail in North Carolina.

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    Her staff also changed her schedule after the June CNN debate, having her appear beside Biden for the Fourth of July fireworks and picnic at the White House, something she has not done before, per The New York Times.

    Representatives for the Biden-Harris campaign did not immediately respond to requests for comment from Business Insider sent outside regular business hours.

    Read the original article on Business Insider

  • Trump is considering giving Jamie Dimon, who he once called a ‘highly overrated globalist,’ a prime Cabinet position

    Jamie Dimon testifying during a Senate Banking Committee hearing; Donald Trump at a campaign event in Las Vegas.
    "I have a lot of respect for Jamie Dimon," former President Donald Trump said in a recent interview with Bloomberg Businessweek.

    Win McNamee via Getty Images; David Becker via Getty Images

    • Donald Trump says Jamie Dimon "is somebody that I would consider" as Treasury Secretary.
    • Trump told Bloomberg Businessweek he has "a lot of respect" for the JPMorgan CEO.
    • Trump previously called Dimon a "highly overrated globalist" for supporting his GOP rival, Nikki Haley.

    It looks like Jamie Dimon could have a spot on former President Donald Trump's Cabinet if the GOP nominee wins this November.

    Trump was effusive in his praise for the JPMorgan chief in a Bloomberg Businessweek interview published Tuesday.

    "I have a lot of respect for Jamie Dimon," Trump told the outlet.

    "He is somebody that I would consider, sure," he added when asked if Dimon could be his next Treasury Secretary.

    The remarks are surprising, considering how scathing Trump was when Dimon supported his rival Nikki Haley's presidential campaign.

    "Even if you're a very liberal Democrat, I urge you, help Nikki Haley, too," Dimon told attendees at The New York Times' DealBook Summit in November. "Get a choice on the Republican side that might be better than Trump."

    Dimon's call for Haley donations quickly drew Trump's ire. The former president called Dimon a "highly overrated globalist" in a November Truth Social post.

    "I've never been a big Jamie Dimon fan, but had to live with this guy when he came begging to the White House. I guess I don't have to live with him anymore, and that's a really good thing!" Trump wrote in November.

    Right-wing figures use the word "globalist" to refer to a fringe conspiracy theory about a cabal of elite individuals secretly controlling the world. Trump has been known to use the term as an insult — he called his former protégé, Gov. Ron DeSantis of Florida, a "RINO globalist."

    But it looks like Trump may be feeling differently about Dimon now.

    For one, Haley is no longer a threat to Trump's presidential ambitions. The former South Carolina governor ended her presidential campaign in March and endorsed Trump at the Republican National Convention on Tuesday.

    Dimon also softened his stance on Trump and praised the former president's policy record in January.

    "He's kind of right about NATO. Kind of right about immigration," Dimon told CNBC at the World Economic Forum's annual meeting in Davos. "He grew the economy quite well. Tax reform worked. He was right about some of China."

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    To be sure, Dimon hasn't indicated that he plans to leave JPMorgan anytime soon. During the bank's investor day in May, Dimon said he intends to stay on for another three-and-a-half years, per Reuters.

    That said, Dimon hasn't ruled out a career in politics entirely.

    "Obviously, it's crossed my mind because people mention things to you and stuff like that. I love my country, and maybe one day I'll serve my country in one capacity or another," Dimon told Bloomberg TV in May.

    Representatives for Trump and Dimon didn't immediately respond to requests for comment from Business Insider sent outside regular business hours.

    Read the original article on Business Insider

  • Dick Van Dyke, 98, says his secret to living a long life is going to the gym 3 times a week

    A white man with a beard and holding a walking stick grinning widely for the camera.
    Dick Van Dyke says exercising is the key to a long life.

    Rodin Eckenroth

    • Dick Van Dyke, 98, credits regular exercise for his longevity.
    • "Most people at 98 years old don't really feel like working out, and they seize up, you know?" he told ET.
    • Experts say making simple lifestyle changes can significantly boost longevity.

    Dick Van Dyke, 98, says regular exercise helps him live a long life.

    In an interview with Entertainment Tonight alongside his wife, Arlene Silver, 52, the "Mary Poppins" actor spoke about staying active in body and spirit at his age.

    "I've often tried to think, 'What did I do to live this long?' and I can't figure out," Van Dyke told ET. "The only thing is I've always exercised. We still go to the gym three days a week and work out."

    Keeping active, he says, is "the secret" to longevity.

    "Most people at 98 years old don't really feel like working out, and they seize up, you know? You get stiff, and I still, you know, move pretty well," he said. "And I think that must be the secret because I don't really watch my diet or anything. Stayed skinny. That helps."

    It doesn't hurt that he also has a positive attitude toward life, Van Dyke said: "I was fortunate that I didn't grow up."

    And Silver concurs.

    "He's always happy and just positive," Silver told ET. "He's just the most joyful person."

    According to the Centers for Disease Control, the average life expectancy in the US is 74.8 years for males and 80.2 years for females.

    While immortality is still a subject of science fiction, there's been a growing interest in longevity and the idea of reversing one's "biological age."

    Other antiaging trends — including IV treatments and red light therapy — are also gaining popularity.

    However, longevity researchers say that even making simple changes to lifestyles can lead to a longer life.

    Something as quick as incorporating a five-minute workout into your day or reaching out to two people you care about can help boost longevity, Dr. Kien Vuu, a physician specializing in antiaging and regenerative medicine, told BI previously.

    A representative for Van Dyke declined BI's request for comment.

    Read the original article on Business Insider

  • Teamsters President Sean O’Brien tried to sell bipartisanship to the RNC, but all he did was legitimize Trump, critics say

    Sean O'Brien
    Sean O'Brien

    ANDREW CABALLERO-REYNOLDS/Getty Images

    • Teamsters President Sean O'Brien spoke at the RNC — a first for the union.
    • O'Brien's message aimed to foster bipartisan cooperation toward labor goals.
    • Critics argued that O'Brien's speech legitimized Trump's anti-union record.

    Even before Teamsters President Sean O'Brien made a historic move on Monday by being the first president of the union to speak at the Republican National Convention, fellow members were upset by him getting cozy with Donald Trump.

    In a scathing op-ed published July 10, Teamsters Vice President at Large John Palmer said O'Brien's appearance "regardless of the message, only normalizes and makes the most anti-union party and President I've seen in my lifetime seem palatable."

    And in January, when O'Brien met with Trump, James Curbeam, the national chairman of the Teamsters National Black Caucus, called the former president a "scab masquerading as a pro-union advocate," The New York Times reported.

    Amid scrutiny from his union members and some right-wing anti-union groups at the RNC, O'Brien made it clear his goal of speaking at the convention was to invite bipartisan cooperation in achieving the labor movement's goals.

    "The Teamsters are here to say we are not beholden to anyone or any party," O'Brien declared onstage in front of hundreds of delegates and the former president himself.

    Although O'Brien may have had good intentions in trying to uphold his union's interests, nationally syndicated radio host and Teamster member Rick Smith said O'Brien was the Republican Party's "dancing show pony that they're gonna ride to the election."

    Smith told Business Insider that he agreed with much of what O'Brien said onstage: In a room full of conservatives, the union boss railed against the US Chamber of Commerce and The Business Roundtable, "corporatists," and "greedy employers." But O'Brien also applauded Trump, calling the former president "a candidate who is not afraid of hearing from new, loud and often critical voices."

    "The problem is none of those people in that room care," Smith said. "They knew why O'Brien was there. He was there to legitimize Trump's horrible record."

    Smith said O'Brien also sent a message that "both sides suck for workers," which Smith said is untrue. He pointed out, for example, Biden putting billions toward bailing out the Teamster's pension fund in 2022.

    "Going into the RNC and saying 'everybody sucks and it's all bad' was of kind of a slap in the face, considering Joe Biden bailed out the Teamsters pension fund, considering that Donald Trump's record was so bad, and Joe Biden's has been very good," Smith said.

    O'Brien and the Teamsters have continued to defend his decision to speak at the right-wing convention.

    "The Teamsters have never been afraid of democracy, but self-interested ideologues — on the left and the right, within and outside the union — are terrified of democracy," Teamsters spokeswoman Kara Deniz previously told the Times.

    Smith said that in the case of bipartisanship, "every time we have some bipartisanship, it's working people who take it on the chin." Instead, he said, O'Brien's appeal to the Republican Party will divide workers.

    "In a time when we have unprecedented interest in people joining and forming unions, this kind of division in the labor movement, I don't think it's helpful. This kind of platforming of someone destructive is not helpful," Smith said.

    The Teamsters did not immediately respond to a request for comment.

    Read the original article on Business Insider

  • DroneShield shares dive another 19%! Time to pounce?

    A female soldier flies a drone using hand-held controls.

    DroneShield Ltd (ASX: DRO) shares are taking another beating today.

    In an unusual sell-off for the high-flying All Ordinaries Index (ASX: XAO) drone defence stock, shares closed down a precipitous 22.2% yesterday trading for $2.02 apiece.

    That came on the heels of Monday’s 11.1% surge, which saw DroneShield shares surge to an all-time closing high of $2.60.

    Today, the selling action continues, with the stock down 18.8% at $1.64 a share.

    As the above chart shows (if you look closely), shares in the ASX drone defence company have been sold off for the past two days, sending them down 37%.

    However, even after that big fall, shares remain up 335% so far in 2024.

    Here’s what’s happening.

    Why has the ASX drone defence come under pressure?

    As Motley Fool analyst Sebastian Bowen reported, the big selldown in DroneShield shares appears to be driven by an article published before market open on Tuesday questioning the company’s high valuation.

    The Capital Brief article noted that at Monday’s $2.60 a share, DroneShield commanded a market cap of $1.98 billion.

    Rodney Forrest, director of Sublime Funds Management, was quoted as saying, “Its valuation is wild.”

    DroneShield responded to an ASX price query, citing the article as the likely reason for the pressure on its shares.

    The company noted that article included the following:

    • Share price performance over the recent period
    • Comparison of DRO’s market cap to several large companies across different industries in the Australian market
    • Statements by two fund managers on their opinion of DRO’s valuation being overheated
    • Statements from two stock analysts on their outlook for DRO
    • A brief summary of DRO’s business
    • Reference to DRO being a popularly traded stock on several broker platforms
    • A historical sale of DRO’s shares held by one of DRO’s directors, Jethro Marks.

    Management added, “There is no new information or change of circumstance around the business” that should impact DroneShield’s share performance.

    Time to pounce on DroneShield shares?

    To gauge the past two days of selling, it’s important to look at the bigger picture.

    On Monday, when DroneShield shares closed at $2.60, the stock was up 863% over 12 months. Yep, a year ago, you could have bought shares for just 27 cents a pop.

    Like Icarus, then, the drone defence stock may have flown too high, too fast.

    Unlike Icarus, though, I don’t imagine the share price is going to plunge into the sea.

    The negative market reaction appears more related to short-term opportunism to make a quick buck, shorting the stock rather than any longer-term fundamental retreat from the company’s strong growth prospects.

    The rapid growth of potentially hostile drones is extremely unlikely to abate in the foreseeable future. And the AI revolution will only galvanize this trend. This means that the demand for rugged, effective counterdrone measures is also likely to keep growing apace.

    This is a trend we’ve already seen playing out with recent growth metrics in DroneShield shares.

    The company recently achieved record first-quarter revenues of $16.4 million, a 10-fold increase (900%) from the prior corresponding quarter.

    At the end of April, DroneShield had a $27 million contracted backlog with a sales pipeline of more than $519 million.

    So, is it time to pounce?

    While shares could certainly still slide further from here over the near term, I believe that following the 37% two-day sell-down, long-term investors will likely look back at today’s $1.64 a share as a bargain entry point.

    The post DroneShield shares dive another 19%! Time to pounce? 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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    *Returns as of 10 July 2024

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

  • Here’s why the Vanguard Australian Shares Index ETF (VAS) just hit an all-time ASX high

    Most of us would be aware that ASX shares have had an exceptional few days of trading on the Australian share market. We’ve seen a flurry of new all-time highs for the S&P/ASX 200 Index (ASX: XJO) in recent days. And we’ve also seen the Vanguard Australian Shares Index ETF (ASX: VAS) soar to some new records of its own.

    The Vanguard Australian Shares ETF is the most popular and widely held index fund on the ASX. So news of its new all-time record high today will delight investors all around the country.

    Yesterday, VAS units closed at $98.87 each. But this morning, those same units opened at $99.60 before rising up as high as $99.97 – tantalisingly close to that elusive $100 mark.

    At the time of writing, the Vanguard Australian Shares ETF remains just a touch below that new high watermark, with this exchange-traded fund currently up 0.98% at $99.94.

    We don’t have to look too far to understand why this ETF has just hit a new record today.

    Why has the VAS ETF just hit a new ASX high?

    The Vanguard Australian Shares ETF is an index fund, meaning it effectively mirrors a broader index. That index is not the S&P/ASX 200 Index (ASX: XJO), but rather the S&P/ASX 300 Index (ASX: XKO).

    This index tracks the largest 300 stocks on the ASX by market capitalisation. It should come as no surprise to hear that this index has also reached a new record high today.

    At present, the ASX 300 is up an eerily similar 1.02% at 8,015.8 points. That mark is also right on the ASX 300’s new record high.

    So with the ASX 300 resetting its record today, it was inevitable that the Vanguard Australian Shares ETF followed suit.

    The performance of their mutual underlying holdings has driven today’s new highs for both the ASX 300 and the ASX’s VAS ETF.

    Take Commonwealth Bank of Australia (ASX: CBA), now the largest stock on the ASX 300 Index. It, too, hit a new record high of $133.50 a share this Wednesday. All four of the major ASX banks are now at multi-year highs.

    BHP Group Ltd (ASX: BHP) isn’t having a great day, but CSL Ltd (ASX: CSL) is also just a touch off of its current 52-week high.

    So it’s CSL and the four major banks that ASX investors can thank for the new Vanguard record.

    This latest high caps off what has been a relatively successful year for this ASX ETF. VAS units are now sitting on a year-to-date gain of 6.04%, as well as a 10.4% rise over the past 12 months. Let’s now see if the Vanguard Australian Shares ETF can finally hit a three-digit unit price.

    The post Here’s why the Vanguard Australian Shares Index ETF (VAS) just hit an all-time ASX high appeared first on The Motley Fool Australia.

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    Motley Fool contributor Sebastian Bowen has positions in CSL and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.