Stock Pick

  • Cramer Shares His Thoughts On Sirius XM, Nokia And More

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  • Market Recap: Wednesday, July 1

    Market Recap: Wednesday, July 1The S&P 500 and Nasdaq closed higher Wednesday on the news that Pfizer reported positive data on its coronavirus vaccine. However, the Dow closed slightly lower as coronavirus cases continue to spike. The Final Round panel breaks down the details.

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  • 5 things to watch on the ASX 200 on Thursday

    Broker trading shares relaxing looking at screen

    On Wednesday the S&P/ASX 200 Index (ASX: XJO) made it two days in a row of solid gains. The benchmark index climbed 0.6% to 5,934.4 points.

    Will the market be able to build on this on Thursday? Here are five things to watch

    ASX 200 expected to push higher.

    It looks set to be another positive day of trade for the ASX 200. According to the latest SPI futures, the benchmark index is poised to rise 40 points or 0.7% at the open. This follows a reasonably positive night of trade on Wall Street. Although the Dow Jones fell 0.3%, the S&P 500 rose 0.5% and the Nasdaq jumped 0.95%. The latter index closed at a record high.

    Pfizer coronavirus vaccine update.

    U.S. markets were given a lift overnight after the release of an update on a study of a coronavirus vaccine candidate. The study of BNT162b1, which is being developed by Pfizer and BioNTech, showed that the drug created neutralising antibodies. However, at this stage the results have not been reviewed by a medical journal. If the vaccine is successful and gets regulatory approval, Pfizer expects to manufacture upwards of 100 million doses by the end of the year.

    Oil prices rebound.

    It could be a good day of trade for energy producers such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) after oil prices jumped higher. According to Bloomberg, the WTI crude oil price is up 1.2% to US$39.73 a barrel and the Brent crude oil price has climbed 1.6% to US$41.92 a barrel. A drawdown in U.S. crude inventories from record highs and some positive manufacturing data supported oil prices.

    Gold price tumbles.

    Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after a pullback in the gold price. According to CNBC, the spot gold price has dropped 1.1% to US$1,780.40 an ounce after stronger than expected economic data.

    Webjet raises funds.

    The Webjet Limited (ASX: WEB) share price will be on watch today after the release of a late announcement on Wednesday. The online travel booking company revealed that it is launching an offering of A$163 1 million convertible notes. These notes will be due in 2027.  The company’s Managing Director, John Guscic, commented: “This Offering supports our ongoing focus on maintaining a strong balance sheet as we continue to navigate the challenging operating environment caused by COVID-19.”

    Where to invest $1,000 right now

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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.

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  • Boeing 737 MAX report may boost effort to reform U.S. airplane certification

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  • Replace your term deposits with these ASX dividend shares

    Young male investor with a pink piggy bank and pile of gold coins

    Fortunately, in this low interest rate environment, there are a good number of dividend shares offering investors generous yields.

    Two dividend shares that I would buy right now instead of a term deposit are listed below. Here’s why I think they are great income options:

    BWP Trust (ASX: BWP)

    As the largest owner of Bunnings Warehouse sites in Australia with 68 leases, I believe BWP could be a property trust to buy. This is because I believe that Bunnings is one of the highest quality businesses in the country and well-positioned to continue its growth through the pandemic and over the coming years. Especially given how the government is supporting the construction industry with renovation grants.

    I believe this should make it easier for BWP to collect rent as normal at a time when other retail property companies are struggling to do so. At present I estimate that the company’s shares offer investors a 4.8% FY 2021 dividend yield.

    Rural Funds Group (ASX: RFF)

    Another property company which I think would be a great option for income investors is Rural Funds. It has a focus on agricultural properties and owns a diverse range of assets across several different industries. These include cattle, vineyards, and orchards. Due to the nature of these industries, its tenants generally sign long term leases. And as these leases tend to contain fixed rental increases, the company has great visibility with its future earnings and distributions.

    As a result, it has already provided its guidance for FY 2021. Next year Rural Funds intends to increase its distribution to 11.28 cents per share. This works out to be a forward 5.6% distribution yield. Overall, I think this makes Rural Funds a great dividend share to own in the current environment.

    Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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.

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  • Investors are waking up to a possible Biden victory in U.S. presidential election

    Investors are waking up to a possible Biden victory in U.S. presidential electionInvestors are increasingly preparing for market volatility ahead of the U.S. presidential election, with some shifting stock positions and selling the dollar, as Democratic contender Joe Biden maintains a lead against President Donald Trump in opinion polls. Plenty can change in the four months before the Nov. 3 vote, and many investors remain focused on whether a resurgence of the coronavirus will damage a nascent U.S. economic rebound.

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  • U.S. businesses add almost 2.4M private sector jobs in June

    U.S. businesses add almost 2.4M private sector jobs in JuneMatthew Luzzetti, Deutsche Bank Chief U.S. Economist, discusses the U.S. labor market and expectations for the upcoming June jobs report on The Final Round.

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  • Get Started With Bitcoin

    If you want to invest your money, you may think about traditional options, such as real estate or stocks. However, there may be a better option that will get you more money for less work. Bitcoin, the digital currency at the top of the cryptocurrency market, is seeing a surge in value that is attracting Read More…

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    source https://blog.wallstreetsurvivor.com/2020/07/01/get-started-with-bitcoin/

  • Should you buy Coles or Woolworths shares?

    Coles share price

    This morning analysts at Goldman Sachs released a note with their appraisal of the Australian supermarket industry and Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

    What did Goldman Sachs say?

    The broker notes that things have changed greatly in the industry since the onset of the pandemic.

    Goldman commented: “Since then the industry outlook has drastically changed due to: Consumption habits shifting towards home consumption due to temporary closure of restaurants, social distancing requirements and the virus scare in general; Travel restrictions, particularly overseas travel, leading to a potential shift in tourism spending and a slowdown in the Australian resident population growth and; a changed macro environment with recessionary conditions expected in the short term.”

    The broker was expecting industry growth of 4.5% per year over the medium term. This comprised inflation of +2.5% and volume growth of +2%.

    However, it has now revised its forecasts lower largely because of a slowdown in population growth due to lower overseas migration.

    Its analysts explained: “We expect industry growth in FY21 to be constrained to 2.4% vs. 10 year average of +3.8%. If sustained, slower population growth (migration) could detract from FY22 growth as well.”

    Should you buy Coles or Woolworths?

    Despite downgrading its industry growth forecasts, Goldman Sachs remains very positive on Coles.

    Its analysts have retained their conviction buy rating with a slightly reduced price target of $18.50. This implies a potential return of 9.5% over the next 12 months without dividends and approximately 13.3% including them.

    The broker is a little less positive on Woolworths for valuation reasons. It has retained its neutral rating and has a $36.80 price target on the company’s shares. This compares to its last close price of $36.90.

    While I think that both companies are arguably in the buy zone, I would have to agree that Coles is the better option of the two. I feel its shares offer a compelling risk/reward at the current level.

    Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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.

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  • Hertz, Creditors in $11 Billion Standoff Over 494,000 Used Cars

    Hertz, Creditors in $11 Billion Standoff Over 494,000 Used Cars(Bloomberg) — Bankrupt Hertz Global Holdings Inc. and its bondholders are squaring off over how to shrink its nearly half-a-million vehicle fleet. Market watchers say the outcome could upend the multi-billion dollar lease-backed ABS industry.The cars are housed in an entity linked to Hertz’s asset-backed securities and leased to the rental giant. Normally, when a company with ABS files for bankruptcy, it must choose to confirm or reject the entire master lease tied to the debt. If it keeps the lease, it has to continue making payments on the vehicles as it offloads them piecemeal. If it walks away, all of the collateral is liquidated to pay back bondholders.Hertz wants a judge to allow it to convert the master lease into 494,000 separate agreements so it can reject the terms on 144,000 vehicles. That would allow Hertz to save roughly $80 million a month while it hangs onto the remainder of the cars as it seeks to emerge from bankruptcy a viable company. If the motion fails, Hertz may press for a reduction in payments to creditors, according to people familiar with the matter.The standoff raises the stakes in what is already 2020’s largest corporate bankruptcy. Hertz is seeking to avoid liquidation and strengthen its balance sheet via the restructuring, while bondholders with billions of dollars at risk who’d grown confident of their chances of being paid back are now threatened with losses. Moreover, industry insiders worry that if Hertz is successful in court, it would re-define the rules that have long governed the ABS market.“It’s going to be a real showdown,” said Philip Brendel, analyst with Bloomberg Intelligence. “Hertz is taking an aggressive posture, but if it rejects the master lease, it doesn’t have a fleet and this bankruptcy looks more like a liquidation.”Hertz almost certainly doesn’t want that to happen.Yet neither do its ABS creditors. For them, the best bet for maximizing the recovery on roughly $11 billion of bonds would be to have Hertz make lease payments on all the vehicles while it sells them gradually, using its industry connections to command top dollar.With that kind of leverage, Hertz may try to extend a 60-day postponement on its lease payments due to expire later this month. The company may also press bondholders to accept less going forward, said three of the people familiar with the matter who asked not to be identified discussing private negotiations.Still, bondholders may not be willing to give in so easily. A resurgent used-car market has strengthened their hand in recent months, making the threat of Hertz rejecting the master lease in its entirety less ominous. Used-vehicle prices in the first 15 days of June were up 6.6% over May and 4.4% above the same period in 2019, according to Manheim, the nation’s largest used-car auction.Hertz didn’t respond to a request seeking comment.ABS RiskBoth sides are now waiting to see what happens with Hertz’s court motion. A decision could come as soon as July 6.So are ABS industry experts, who say that if Hertz is allowed to reject some leases but not others, it could undermine the $25 billion market for rental-car related ABS, as well those for farm-equipment and construction-machinery financing, by making the bonds riskier. That could raise funding costs for borrowers and ultimately consumers, representatives for the Structured Finance Association argued in a proposed brief filed last week.“Granting Hertz’s motion would disrupt access to the capital markets for entire industries that depend on favorable financing terms provided via ABS structures — and thus the national economy,” the group wrote.When credit graders and investors assess the risks of an ABS, they typically do so under the assumption that leases tied to all of the cars backing their bonds would be accepted or rejected during a bankruptcy.If Hertz is allowed to selectively reject leases, it effectively leaves bondholders with a different pool of collateral than they were expecting when they bought the securities. That could hamper their ability to be made whole by selling the cars backing the bonds, the thinking goes.“They have manufactured an assault on the securitization structure from which they raised tens of billions of dollars effectively secured by the master lease, in an effort to shift to the ABS lenders the hundreds of millions of dollars, or more, of economic cost from the depreciation on the vehicles,” lawyers representing ABS participants said in court papers.Hertz has dismissed the arguments about upending the structured-finance market as speculative and irrelevant, as have first and second-lien creditor groups.Thanks to the recovery in used-vehicle prices, many Hertz ABS investors have grown more confident they’ll get a full recovery on their bonds. Slices of ABS have rallied since the company filed for bankruptcy in May, with the portions of the securities that are first in line for repayment now trading near par. Junk-rated C slices of many Hertz deals, which are further back in line for repayment, have rallied 10 points or more since May to trade around 90 cents on the dollar.“This is gamesmanship,” Bloomberg Intelligence’s Brendel said. “It will be a constant negotiation. If the judge rules against Hertz, the company will say, ‘you took away my sword, now I’ll take out my club.’”The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington)(Updates to include additional markets affected in first and 12th paragraphs)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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