Stock Pick

  • Where to invest $10,000 into ASX shares right now

    ASX Investing

    ASX shares continue to be a great place to invest money to make good returns over the long-term. I’m excited by many of the opportunities that I could put $10,000 into.

    Not every ASX share looks great value at the moment. COVID-19 has caused a lot of uncertainty for the economy and the stock market.

    There are some shares which I think are opportunities and others which could be worth leaving on the watchlist for now.

    If I had $10,000, these are the ASX shares I’d pick:

    A2 Milk Company Ltd (ASX: A2M) – $3,000 

    A2 Milk has been one of the best ASX shares over the past five years. This COVID-19 period is a difficult time for many businesses, but A2 Milk continues to grow. A2 Milk said it’s expecting FY20 revenue to be in the range of $1.7 billion to $1.75 billion. This would be growth of 30% to 34% on FY19’s revenue.

    The amount of growth that the ASX share can potentially achieve in North America alone is very attractive and it’s adding thousands of stores to its US distribution network every six months.

    It’s currently trading at 28x FY22’s estimated earnings. I think that’s a reasonable price considering how much profit growth the company is creating each year.

    Brickworks Limited (ASX: BKW) – $3,000 

    I believe that Brickworks is a great value ASX 200 share at the moment. The company has already been making good shareholder returns for decades. At the current Brickworks share price I’d want to buy shares.

    The best time to be greedy is when people are fearful about shares. COVID-19 is probably going to cause the Australian construction sector to have a difficult time over the next 12 months. But I think this is creating a good value opportunity to buy Brickworks shares whilst they are cheaper. I believe construction will return because it normally acts cyclically over time. Immigration will return at some point. 

    Brickworks currently has a market capitalisation of $2.29 billion. Its industrial property trust stake is worth $710 million (growing) and its shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is worth $1.84 billion. Those two divisions have a combined pre-tax value of $2.55 billion.

    Pushpay Holdings Ltd (ASX: PPH) – $2,000

    Pushpay is one of the most exciting ASX shares to me at the moment. Since the start of May the Pushpay share price has risen 90.7%. These COVID-19 conditions are causing more people to donate through Pushpay’s electronic giving system rather than alternative means.

    In FY21 the company is expecting to at least approximately double earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF).

    The ASX share continues to improve its gross margin at an attractive rate. In FY20 the gross margin rose from 60% to 65%. This means each new $1 of revenue is more profitable. Management are expecting even higher margins over time. 

    US churches are a great growth area for Pushpay and represent a $1 billion revenue opportunity for Pushpay.

    Magellan High Conviction Trust (ASX: MHH) – $2,000

    Some of the best global shares aren’t on the ASX. Businesses like Alibaba, Alphabet, Microsoft, Facebook and Visa are listed overseas.

    Magellan High Conviction Trust is a listed investment trust (LIT) which looks to invest in the best businesses in the world, like the ones I just mentioned.

    The strategy for the LIT is to hold around 10 different shares – the ones that the investment team have the highest conviction in.

    I like the idea of getting international share diversification. However, I don’t want to invest in many of the other businesses out there. I just want exposure to the best ones. I think that’s exactly what this LIT provides.

    As a bonus, it comes with a 3% distribution yield target. I think that’s a nice mix of rewarding shareholders whilst benefiting from capital growth. It’s currently trading at a discount to its net asset value (NAV), but I’m a little concerned about the upcoming US election on the US stock market which is why I only allocated $2,000 to this pick.

    Foolish takeaway

    I really like each of these shares. Each of them gives Aussie investors exposure to growing non-Australian earnings. At the current prices I’m attracted to Brickworks and A2 Milk the most, I think they have very good investment returns potential at this level. 

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk. 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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  • Bolton Scores Pyrrhic Victory in Court Ruling on Trump Book

    Bolton Scores Pyrrhic Victory in Court Ruling on Trump Book(Bloomberg) — A federal judge excoriated former national security advisor John Bolton for exposing the U.S. to harm with his tell-all memoir about President Donald Trump but said it’s too late to issue an order that would stop publication of the book.U.S. District Judge Royce Lamberth in Washington on Saturday rejected the Justice Department’s last-ditch attempt to block the publication on national security grounds, paving the way for “The Room Where It Happened: A White House Memoir” to go on sale June 23.In his judgment, Lamberth slammed Bolton for gambling with national security and going ahead with the book before it cleared a pre-publication review by the Trump administration to ensure it did not contain classified information.“He has exposed his country to harm and himself to civil (and potentially criminal) liability,” the judge wrote. “But these facts do not control the motion before the Court. The government has failed to establish that an injunction will prevent irreparable harm.”He also wrote that the government is likely to prevail as the case moves to the next stage of the breach-of-contract lawsuit, which could allow it to seize Bolton’s $2 million book advance as well as any royalties he receives. President Trump unleashed on Twitter, saying Bolton must “pay a very big price.”The legal battle over the book began Tuesday when the Justice Department sued Bolton for breach of contract, claiming he had pulled out of the pre-publication review process that he agreed to undergo when he got his security clearance. The next day, the government escalated its response, seeking an injunction to stop publication, even though detailed excerpts were already appearing in major newspapers and some 200,000 copies had been shipped to booksellers.According to reviews and published excerpts, Bolton’s book paints an unflattering portrait of the White House, describing Trump as ignorant of basic foreign policy facts and motivated largely by political self-interest. In one passage that has been widely reported, Bolton wrote that Trump urged the Chinese president, Xi Jinping, to buy agricultural products from the U.S. because it would help the Trump campaign build political support in rural states.Next StageFor the next phase of the legal process, focus will turn to whether Bolton was in breach of contract.“It’s hard if you’re John Bolton to wake up this morning and say, ‘Thank you, Judge Lamberth, I’m vindicated,’” said Harry Sandick, a former federal prosecutor in New York. “The court concluded that on the merits he did not follow the rules.”The Justice Department did not immediately respond to an email asking whether it plans to appeal before the book is released on Tuesday. Bolton’s lawyer, Chuck Cooper, said in a statement that he took issue with judge’s conclusion that Bolton had breached his contract. “The full story of these events has yet to be told — but will be,” he said.Adam Rothberg, a spokesman for the book’s publisher, Simon & Schuster, said the company was “grateful that the Court has vindicated the strong First Amendment protections against censorship and prior restraint of publication.”Horse BoltedIn court filings, Bolton argued the government delayed the review process to ensure the book didn’t come out before November and hurt the president’s reelection chances. He also said the book’s publication should be protected under the First Amendment.The judge ruled that the government hadn’t carried its burden of establishing that an injunction would prevent “irreparable injury” — a requirement for securing such a restraining order — because the book is already circulating widely.“By the looks of it, the horse is not just out of the barn — it is out of the country,” Lamberth wrote.The pre-publication review process began about six months ago, when Bolton submitted an early draft to Ellen Knight, an official on the National Security Council, according to the government’s lawsuit. After several rounds of edits, Knight concluded in April that the book no longer contained classified information, the complaint said. But in May, Michael Ellis, a senior NSC official, reopened the review process.Bolton’s decision to go ahead with publishing the book, even as the government continued to examine it, was an “unprecedented decision by an author to submit a manuscript for pre-publication review but then to bail out of that process before it’s completed,” government lawyer David Morrell argued at a hearing on Friday. “There is a massive interest that the government has here in ensuring that authors who become disgruntled and don’t like the process aren’t able to just bail out.”Trump’s RoleAll week, critics of the government have speculated that Trump may have played a role in delaying the pre-publication review of the book. Under questioning from Lamberth, Morrell said on Friday that he wasn’t aware of whether Trump had personally directed intelligence officials to designate material in the book as classified.“There are certain passages in this book that will damage the national security of the United States,” Morrell said. “These NDAs aren’t just bureaucratic contrivances. They serve an important function,” he said, referring to a non-disclosure agreement that Bolton signed.The judge slammed Bolton’s conduct in his ruling, saying “the damage is done” and there’s no returning to the status quo after his unilateral action.“In taking it upon himself to publish his book without securing final approval from national intelligence authorities, Bolton may indeed have caused the country irreparable harm,” Lamberth wrote. “But in the Internet age, even a handful of copies in circulation could irrevocably destroy confidentiality.”Pentagon PapersThe judge’s decision aligned with predictions from legal experts who had dismissed the possibility that the White House could stop the book’s publication, citing the Pentagon Papers case, in which the Supreme Court rejected a similar request from President Richard Nixon.Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University, said in a statement that court was right to reject the government’s request for a prior restraint, especially since the requested injunction went further than the one sought in the Pentagon Papers case.“In other respects, though, the ruling is a troubling reaffirmation of broad government power to censor in the name of national security,” Jaffer said. “The prepublication review system puts far too much power in the hands of government censors, and reform of this dysfunctional system is long overdue.”The case is U.S. v. Bolton, 20-cv-01580, U.S. District Court, District of Columbia (Washington).(Adds comment from eight paragraph)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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  • James Hardie share price in spotlight as it upgrades profit guidance

    model construction workers working on increasing pile of coins, asx 200 building shares, boral share price

    The James Hardie Industries plc (ASX: JHX) share price is likely to buck the market weakness this morning after it upgraded its guidance.

    The S&P/ASX 200 Index (Index:^AXJO) is tipped to fall by more than 1% when the market opens, according to futures pricing.

    But the US-exposed building materials group could move in the opposite direction after it lifted its first quarter FY21 guidance (which is the current quarter).

    Expanding margins

    The group’s North America adjusted earnings before interest and tax (EBIT) margin is now expected to be between 27% and 29% for the three months to June 30. This compares with its previous forecasts of 22% to 27%.

    “In North America, housing market activity has steadily improved during the past seven weeks despite the COVID-19 pandemic,” said James Hardie’s chief executive Jack Truong.

    “The better than expected underlying housing market during our Q1 FY21 combined with our continued focus on customer engagement to drive market share gains, resulted in volume growth in the second half of the first quarter.”

    James Hardie’ guidance

    Management also provided guidance for a number of its business units. Volumes at its North America Exteriors division is expected to be flat to 2% ahead of the 1QFY20.

    The Australian business is tipped to be flat while its struggling European division will see volumes drop 11% to 14% over the same periods.

    James Hardie’s decision to cancel its latest dividend is one factor helping bolster the amount of cash on its balance sheet. Management increased its liquidity guidance to more than US$640 million from its earlier expectation of “greater than US$600 million”.

    The group will release its first quarter results on 11 August.

    Why the Boral share price could also lift

    The James Hardie share price might not be the only one outperforming the market this morning though.

    The better than expected rebound in US housing market is also likely to benefit other ASX building products companies with material exposure to that market.

    This includes the embattled the Boral Limited (ASX: BLD) share price as its income CEO Zlatko Todorcevski will be looking to restructure the group. Boral’s US business is a thorn in the side of shareholders.

    Other ASX stocks in the spotlight

    This in turn could lift sentiment towards Seven Group Holdings Ltd (ASX: SVW) after it bought a large stake in Boral.

    Another ASX stock that could jump on the James Hardie upgrade today is Reliance Worldwide Corporation Ltd (ASX: RWC).

    As previously reported, the US renovation and restoration market is also bouncing back strongly and that could lead to increased demand for the company’s plumbing repair solutions.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    Brendon Lau owns shares of James Hardie Industries plc and Seven Group Holdings Limited. Connect with me on Twitter @brenlau.

    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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  • ASX set to fall at the open; Metcash reports FY20 results

     

    https://go.arena.im/public/js/arenalib.js?p=motley-fool-australia&e=tvr8

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    The post ASX set to fall at the open; Metcash reports FY20 results appeared first on Motley Fool Australia.

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  • ASX share price winners and losers of last week

    2 street signs with winner and loser pointing in different directions

    The S&P/ASX 200 Index (INDEXASX: XJO) finished the week up by 1.6% despite exhibiting some early wobbles. The week saw continued heavy trading of real estate companies, a steadying of the oil price, the government announcement of a $1.5 billion infrastructure package, and the largest retail turnover rise in 38 years. Although most ASX shares saw gains, as always, some also lost ground for the week.

    Buy now, pay later

    Buy now, pay later shares continued their inexorable rise last week. The Afterpay Ltd (ASX: APT) share price rose by 12.86%, while Sezzle Inc (ASX: SZL) surged a massive 30.13%. However Zip Co Ltd (ASX: Z1P) saw its share price fall by 2.22% in the wake of likely profit taking. 

    Another fintech company to see a double digit rise last week was Pushpay Holdings Ltd (ASX: PPH) with a 12.13% increase on the back of updated earnings.

    Discretionary retail

    Better than expected retail sales figures, along with a strong progress report from Wesfarmers Ltd (ASX:WES), placed some fire under the retail discretionary sector. The ABS Retail Trade Survey found that retail turnover rose 16.3% in May. As mentioned, this was the largest seasonally adjusted rise in 38 years. 

    AP Eagers Ltd (ASX: APE) saw its share price jump 12.48% and Domino’s Pizza Enterprises Ltd. (ASX: DMP) also rose by 10.78%. In addition, Breville Group Ltd (ASX: BRG) saw a 13.67% rise in its share price. Lastly, small cap women’s clothing retailer City Chic Collective Ltd (ASX: CCX) saw a very impressive increase of 19.77% on its share price for the week. 

    Event-based ASX share price jumps

    Three ASX small-cap shares stood out during the week with large-scale price rises due to specific events.

    The Cardinal Resources Ltd (ASX: CDV) share price rose by 36.4% across the week on news that the company had recommended its shareholders accept a $300 million takeover deal.

    The Healius Ltd (ASX: HLS) share price also jumped by 11.4% following news of a $500 million sale of its medical centres.  

    Tiny engineering firm Decmil Group Limited (ASX: DCG) impressed the market by raising $52.4 million via a release of new shares due to start trading on 24 June. This capital raising is almost equal to the company’s entire current market capitalisation. Decmil saw its share price surge by 23.63% following news of the entitlement offer.

    Market laggards

    The real estate sector has been the highest traded sector over the past three weeks. Investors appear to be split over just how significant the impact of COVID-19 will be on the retail shopping A-REITs. While many A-REITs finished last week marginally higher, two with the largest exposure to retail saw falls. 

    The Vicinity Centres (ASX: VCX) share price fell by 3.8% as did the Scentre Group (ASX: SCG) with a decline of 4.33% for the week. 

    Other significant ASX share price falls were seen by airline and travel companies. Sydney Airport Holdings Pty Ltd (ASX: SYD) fell by 6.06%. Moreover, small cap Alliance Aviation Services Ltd (ASX: AQZ) saw its share price dive by a worrying 7.81%. This included a 2.64% tumble on Friday following the company’s announcement of a $30 million share purchase program, which was on top of its recent $90 million dollar capital raising. 

    Before you go, be sure to check out our expert’s recommendations for cheap growth shares!

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited, Scentre Group, and Sezzle Inc. 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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  • Metcash share price on watch after recording $45.9 million FY 2020 loss

    Woman investor looking at ASX financial results on laptop

    The Metcash Limited (ASX: MTS) share price could be on the move today after the release of its full year results this morning.

    How did Metcash perform in FY 2020?

    For the 12 months ended 30 April 2020, Metcash delivered a 2.9% increase in revenue to $13 billion and a 2% lift in revenue including charge through sales to $14.9 billion.

    This was driven by a 3.5% increase in Food sales to $8.8 billion and a 0.3% lift in Liquor sales to $3.68 billion, but partially offset by a 1.3% decline in Hardware sales to $2.08 billion.

    Due largely to weaker earnings in its Food segment, group underlying earnings before interest and tax (EBIT) fell 1.8% to $324.2 million. The Food segment was impacted by onerous lease obligations and the ceasing of supply to Drakes Supermarkets in South Australia.

    After adjusting for these items, group underlying EBIT increased by ~$12 million.

    On the bottom line, Metcash posted a reported loss after tax of $45.9 million. This compares to a profit after tax of $192.8 million in FY 2019 and was the result of material impairments to goodwill and other assets.

    A total post tax impairment of $237.4 million was made in the first half following advice from 7-Eleven that it will not be renewing its current supply agreement with Metcash.

    On an underlying basis, profit after tax was roughly flat at $209.7 million or 23 cents per share.

    The Metcash board has determined to pay a fully franked final dividend of 6.5 cents per share. This brings its total dividends for FY 2020 to 12.5 cents per share.

    A year of unprecedented challenges.

    The company’s CEO, Jeff Adams, was pleased with Metcash’s performance over a very eventful and difficult 12 months.

    He said: “I am pleased to report very admirable results in a year of unprecedented challenges that included the impact of devasting bushfires and the COVID-19 pandemic.”

    “Our businesses went to extraordinary lengths to support our employees, our retailer network and local communities in their time of need. This included investing in their safety and wellbeing, in operations to ensure the continuity of supply of essential products, as well as in supporting retailers impacted by COVID-19 restrictions,” he added.

    Trading update.

    Metcash has started FY 2021 in a very positive fashion. For the first seven weeks of the new financial year, Food sales are up 9.3%, Liquor sales are up 5.5%, and Hardware sales are up 9.4%.

    However, management warned: “There is uncertainty over the timing of further lifting of COVID-19 restrictions in Australia and the extent that our businesses will continue to benefit from the favourable change in consumer behaviour.”

    Total Tools acquisition.

    Metcash also revealed that its proposed acquisition of 70% of Total Tools Holdings for ~$57 million is in the final stages of negotiations.

    Total Tools is the franchisor to the largest tool retail network in Australia, with its 81 stores nationwide generating sales of ~$555 million.

    Management notes that this aligns with its strategy of being the leading supplier to independents in each of its three segments. It also expects it to enhance its position in the Australian hardware market and increase its exposure to trade customers.

    Not sure about Metcash right now? Then check out the highly recommended shares below…

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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  • China Security Law Will Override Hong Kong Legal System

    China Security Law Will Override Hong Kong Legal SystemJun.21 — China confirmed that a proposed national security law would allow Beijing to override Hong Kong’s independent legal system, shedding new light on a move that has stoked tensions with the U.S. and threatens the city’s status as a top financial center. Yvonne Man reports on “Bloomberg Daybreak: Australia.”

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  • American Air Braces Balance Sheet With $3.5 Billion in Financing

    American Air Braces Balance Sheet With $3.5 Billion in Financing(Bloomberg) — American Airlines Group Inc. braced its balance sheet with $3.5 billion in new financing, diverging from its recent reliance on federal aid as the coronavirus pandemic suppresses travel demand.The carrier is selling $750 million of shares and the same amount of senior convertible notes due in 2025, American said in a statement Sunday. In addition, the carrier will offer $1.5 billion in senior secured notes and said it will enter into a $500 million term loan facility.American’s actions show the broad range of tools airlines are using to bolster balance sheets amid a hesitant return to flying that for now is led largely by leisure travelers anxious to escape months of confinement. While carriers have resumed some of the domestic flights slashed when the virus hurt travel demand in late March, a full recovery is expected to take years. The largest U.S. carriers continue to burn through as much as $45 million daily as demand sags.With the equity offering, Fort Worth, Texas-based American joins Southwest Airlines Co., which raised about $4 billion with an April sale of 70 million shares and $2 billion in convertible notes due in 2025. United Airlines Holdings Inc. raised more than $1 billion in the industry’s first share sale during the coronavirus crisis.Goldman Sachs, Citigroup, BofA Securities and JPMorgan are jointly running the stock and notes offerings for American. The carrier used a pool of slots, gates and routes in various countries, including the U.S., China, Japan, Australia and South America as collateral for the bonds and term loan.Bond TermsThe junk bonds were said to carry a yield of 11% in discussions last week ahead of the offering, Bloomberg News reported June 19. Final terms are subject to market conditions and other factors, American said Sunday. Part of the proceeds from the offering and loan will be used to refinance a $1 billion, 364-day financing the airline took out on March 18. The new $500 million loan, which will close with the bond offering, is due in 2024.American will grant underwriters up to $112.5 million worth of additional shares and the same amount in added convertible notes depending on demand, the carrier said.Carriers are pulling out all the stops to make sure they’re positioned for a fundamental change in their business. Delta Air Lines Inc. is preparing for a “slow and choppy” recovery that could take as long as three years to return “to a new level of normal,” the carrier said in a June 19 presentation.Up NextUnited may launch a $5 billion debt offering backed by its frequent-flyer program with a group of banks led by Goldman as soon as Monday, Bloomberg News has reported. Delta, Southwest and JetBlue Airways Corp. also have tapped debt investors in recent weeks to boost liquidity.In conjunction with effort to build cash reserves, carriers also have focused recently on employee leave and voluntary separation offers to cut spending as they prepare for the Oct. 1 expiration of no-furlough restrictions tied to federal payroll aid. The airlines earlier slashed flying, parked hundreds of aircraft, cut executive salaries, and took other steps in a rush to reduce expenses.Outside of the early $1 billion term loan from banks in March, American has depended largely on $5.8 billion in employee payroll support from the U.S. government because of the pandemic. The carrier is in talks for a separate $4.75 billion federal loan it expects to close this month.American shares have tumbled 44% this year through June 19, still outperforming every peer but Southwest in a Standard & Poor’s index of the five largest U.S. carriers. The gauge has fallen 47% this year.American has said it will have $11 billion in liquidity at the end of June, assuming it secures the second U.S. loan, while Delta has said it will have more than $15 billion; Southwest, $13.9 billion; and United, $9.4 billion.About 576,500 passengers passed through Transportation Security Administration airport checkpoints Thursday, compared with more than 2.7 million a year earlier.(Updates with bond information in sixth paragraph)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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  • Opinion: Hits and Misses of the Week

    Opinion: Hits and Misses of the WeekJournal Editorial Report: The week’s best and worst from Dan Henninger, Kim Strassel, Jason Riley and Kyle Peterson. Image: Greg Baker/AFP via Getty Images

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  • Stock market news live updates: Stock futures tumble as fears of virus resurgence flare

    Stock market news live updates: Stock futures tumble as fears of virus resurgence flareStock futures opened lower Sunday evening as daily coronavirus case counts rose by records in some states.

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