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Novavax Surging On $60M Funding For Covid-19 Vaccine Candidate
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Euro Flashes Warning Amid Longest Rally Since 2011
(Bloomberg) — The longest euro rally in almost a decade is at risk of petering out even as investors’ appetite for risk makes a comeback.Europe’s shared-currency climbed for an eighth day Thursday — the longest streak since 2011 — after the European Central Bank expanded its emergency bond-buying program to counter the economic impact of the coronavirus pandemic. It reached an almost three-month high of $1.1362, more than 4.5% above its May 25 low.Yet while the euro’s surge against the dollar and other peers took it past key resistance levels, some strategists are urging caution and technical gauges are flashing warning signs.“The ECB-induced euro rally is running out of steam,” Petr Krpata, a strategist at ING Bank said by email. Any “meaningful” euro gains should stem more from the dollar’s bear trend, rather than additional ECB impact, he said.The euro currently appears to be overbought against the greenback, based on a relative strength index — an indicator that measures the speed and size of price movements. A stochastic gauge, meanwhile, suggests that upward momentum may dwindle in coming sessions as the pair nears its year-to-date high of $1.1495.Citigroup’s global head of foreign-exchange analysis Ebrahim Rahbari reckons now is a good time to take some profits even though he remains bullish on the currency. And ABN Amro’s Georgette Boele says it is premature to expect a “continued strong rally” in the currency as “difficult discussions” are ahead on the European Commission’s stimulus program.The euro largely traded in lockstep with surging equity markets amid optimism about the prospects for a global economic recovery. Some are concerned that the recent surge in appetite for riskier assets may have gone too far, though, and that could also weigh on the common currency.There are echoes in the current move of the euro’s rebound in late March, when it recovered from its pandemic lows. Back then, a rally of around 5% in just over a week was followed by a 3.5% slide in a matter of days.Many observers nevertheless remain solid in their bullish calls for the euro. A trio of Societe Generale SA’s quantitative models are signaling that the euro is the top Group-of-10 currency that investors should wager on to rally.Nomura’s Jordan Rochester has a “high conviction” on the euro-dollar pair after last week flipping to a long position from a short one. And Standard Chartered’s Steven Englander says the euro region is looking more attractive.Yen CrossThe currency busted through several key technical resistance levels against its Japanese peer on Thursday. The euro rose as much as 1.3% to 123.92 yen, the highest since May 2019 and notched its longest such streak of daily advances in over a decade.The technical significance of the move was further bolstered by the fact that the pair has breached its 55-week and 100-week moving averages.But, as with the euro-dollar pair, further gains may be difficult to muster. The euro-yen cross has struggled in the past to breach its 200-week moving average — currently 124.50 — and RSI gauges are also signaling that it’s getting stretched.That, combined with concern about waning fundamental factors, could well provide fodder for euro bears.(Corrects length of euro rally to eight days, in second paragraph of story originally published on Thursday)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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3 simple investment rules I follow
Having a simple set of investment rules could prove to be highly valuable, given the uncertain outlook for the stock market. Economies across the world are set to experience sharp declines in GDP growth and a rise in unemployment figures due to the lockdowns put in place to contain coronavirus.
By investing in companies you understand, buying them at a discount to their intrinsic value and ignoring market noise, you could capitalise on the current uncertain outlook for the stock market.
Investing in what you know
It is impossible to have a sound understanding of every sector and industry within the stock market. As such, it makes sense to focus your capital on those areas where you have a solid foundation of knowledge. It may mean that you find it easier to spot investment opportunities that go on to deliver high returns in the long run.
Similarly, it may mean that you avoid unnecessary risks. Someone without a good understanding of a sector may miss an obvious threat to its future, while an investor who has knowledge of the industry may be able to avoid common mistakes.
While it takes time to acquire knowledge about companies and the sectors within which they operate, only investing in what you understand can improve your risk/reward ratio. If you have limited knowledge, it may be a good idea to only invest in a small number of sectors and use tracker funds to obtain diversification with the rest of your capital until such a time that you have sufficient knowledge to invest directly in a range of businesses.
A margin of safety
Another investment rule that could improve your returns is obtaining a margin of safety when purchasing a stock. This essentially means that you value a company, and seek to buy it at a discount to that price. This strategy provides risk reduction, since there is a margin of safety in case unforeseen events occur or your analysis has missed relevant issues that impact negatively on a stock’s price.
At the present time, many stocks trade on wide margins of safety. As such, there appear to be numerous opportunities to obtain a large discount to a company’s intrinsic value across the stock market.
Market ‘noise’
Market ‘noise’ is the views and opinions of other investors that could influence your investment-making decisions. Ignoring them can be difficult, but also beneficial to your overall returns in the long run.
Many investors become overly emotional during boom and bust periods. This can affect their decision-making ability, and following their views can likewise be detrimental to your portfolio’s performance.
Therefore, having an investment rule that ignores the views of your peers and instead focuses on facts and figures when deciding which companies to purchase could be a means of strengthening your portfolio’s long-term outlook.
5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)
Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.
Given how far some of them have fallen, the upside potential could be enormous.
The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.
But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.
More reading
- EML Payments and these ASX mid cap shares could be destined for big things
- What the 10 largest companies in the world have in common
- Why is it so hard to outperform the ASX 200 index?
- These quality ASX dividend shares have very juicy yields
- Why the Appen share price fell nearly 5% today
Motley Fool contributor Peter Stephens 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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EML Payments and thse ASX mid cap shares could be destined for big things
If exciting small cap ASX shares like Whispir Ltd (ASX: WSP) are too small for your tastes, then you might want to have a look at the mid cap side of the market.
At this side of the market I believe there are a number of shares which have the potential to grow very strongly in the future. Perhaps even to the point that they one day become large caps.
Three top mid cap ASX shares to consider buying are listed below:
BINGO Industries Ltd (ASX: BIN)
BINGO is a leading waste management company which I think has a lot of potential. This is thanks to its expansion opportunities in Australia and the game-changing acquisition of rival Dial a Dump Industries. The addition of Dial a Dump Industries has transformed BINGO into a fully vertically integrated business from collections to landfill. Although the pandemic is likely to weigh on its short term performance, I think it is worth focusing on its very positive long term prospects.
EML Payments Ltd (ASX: EML)
Another mid cap share to consider buying is EML Payments. It is a payments company with a focus on digital gift cards and pre-paid cards. It also provides the technology that supports certain buy now pay later offerings. The company has been growing at a very strong rate over the last few years. Pleasingly, I believe it is well-positioned to continue this positive trend once the pandemic passes. Especially following the recent acquisition of Prepaid Financial Services. This acquisition gives EML exposure to banking as a service (BaaS) and could be a key driver of growth in the coming years.
Opthea Ltd (ASX: OPT)
A final mid cap share to look at is Opthea. It is a developer of novel biologic therapies for the treatment of eye diseases. Last year Opthea reported very positive Phase 2b study results for its OPT-302 combination therapy. If its phase 3 trial is successful, the company has a multi-billion dollar opportunity treating wet age-related macular degeneration and diabetic macular edema. Another positive is that Opthea has a very strong balance sheet and appears well-funded to see OPT-302 through its remaining trials.
Looking for more shares to invest in? Then check out the five recommendations below which look very cheap right now…
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading over 30% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
As of 2/6/2020
More reading
- 2 ASX growth shares I’d buy before Afterpay shares
- Could the Openpay share price signal a wider boom for BNPL?
- 3 small cap ASX tech shares that could be stars of the future
- 2 leading ASX tech shares to buy in June
- The 3 ASX tech stocks that helped this fund manager outperform in May
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited and Whispir Ltd. The Motley Fool Australia has recommended Emerchants Limited and Whispir 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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What the 10 largest companies in the world have in common
What do the 10 biggest companies in the world have in common?
It’s a good question – and one that might give us some insights into what it takes for a company to have a truly global presence. After all, finding the ‘next Amazon.com’ or the ‘next Apple’ is the ultimate dream of most investors around the world.
So let’s take a look at what the 10 largest companies in the world actually are before we get started. I’m going off the iShares Global 100 ETF (ASX: IOO) here, which tracks the S&P Global 100 Index and excludes companies from ’emerging markets’ like China and Saudi Arabia. I think this is a good thing because although some companies from these kinds of countries are massive, it’s hard to truly assess them as they often have significant government ownership, which can distort their valuations.
So, using the IOO ETF as a proxy, here are the S&P Global 100 Index’s top 10 holdings:
- Microsoft
- Apple
- Amazon.com
- Alphabet
- Johnson & Johnson
- JPMorgan Chase & Co
- Nestle
- Procter & Gamble
- Intel Corporation
- Roche Holdings
So there you have it, the global top 10.
Now, what can we learn from these companies? Well, already I see some patterns. Half of this list are tech companies, and 8 out of 10 are American companies. Two are healthcare companies and two are consumer staples. And unlike the S&P/ASX 200 Index (ASX: XJO), there’s only one bank here.
But let’s dig a little deeper. I think it’s fair to say that all of these companies are the best in their fields at making products we all need to work and live. And they cement this advantage through powerful brands.
Everyone knows Microsoft’s Office and Windows products are unrivalled at what they do. And everyone knows how good Alphabet’s Google search engine is.
Apple may have its fair share of haters, but you can’t deny it’s one of the most powerful brands on the planet. Meanwhile, Nestle’s dominance in making foods and drinks permeates almost every country in the world.
You get the idea. All of these companies have gotten to where they are by doing what they do better than their competitors and distilling that advantage through brand power.
In my view, that’s the kind of quality that makes a life-changing investment.
How we can apply these lessons to ASX shares
So how do we apply these lessons to our own ASX? Well, there are a few shares that I think are following this path in a very promising manner.
Xero Limited (ASX: XRO) is one. It’s building a great brand across the world through its unique accounting software. The number of customers using Xero’s products increased 26% in FY19 and by double-digits in each of its target markets.
Afterpay Ltd (ASX: APT) is another. It has managed to go from a niche Australian brand to a truly global player in the payments space in just a few years.
CSL Limited (ASX: CSL) has already become one of the world leaders in the blood and plasma medicines and vaccinations space. I think it has the potential to climb even further.
Finding your own Amazon is hard – but you can always look for the telltale signs and invest accordingly. Who knows, you might have some mean bragging rights in the future!
For some more ASX shares you might want to check out today, take a look at the report below!
NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%…
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
More reading
- Why is it so hard to outperform the ASX 200 index?
- ASX 200 closes higher, banks keep rising
- 3 tips for surviving an ASX recession
- CSL share price lower despite COVID-19 vaccine news
- Why Alumina and Stockland share prices could outperform in coming weeks
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Procter & Gamble and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, CSL Ltd., and Xero. The Motley Fool Australia has recommended Alphabet (A shares). 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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Why is it so hard to outperform the ASX 200 index?
Despite what almost every fund manager in the country will tell you, it’s hard to outperform the S&P/ASX 200 Index (ASX: XJO).
That’s why most active fund managers, despite the handsome management fees and salaries they attract, struggle to beat the market over a long period of time.
And what’s more, those that do manage it in a given year will most likely not manage it again the year after.
According to reporting in the Australian Financial Review (AFR), 87% of fund managers failed to beat the ASX 200 in performance in 2018. That’s a staggering statistic.
Of course, a large part of this underperformance comes down to fees. An ASX 200 index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) typically charges minuscule management fees (0.09% per annum in IOZ’s case). In contrast, it’s not uncommon for a managed fund to charge a management fee 10 or 20 times that.
If a managed fund has a fee of 1.5%, it needs to beat the market by 1.5% every year just to break even for you. That’s a tall order and (according to the AFR) one most managed funds don’t measure up to.
Is it possible to beat the ASX 200 index?
Beating the index is challenging because of how efficiently the index operates. It buys more of rising companies and kicks the underperformers out.
Just think of CSL Limited (ASX: CSL). CSL is the largest share on the ASX 200 with a share price of $286.66 (at the time of writing) and an ASX 200 weighting of around 8.2%. But 5 years ago, this was a $90 stock. As CSL climbed, an ASX 200 index fund would have been continually adding to CSL’s position – in other words, buying into a winner.
And without any of its investors lifting a finger. The process is automatic, with no room for human error. It’s this simplicity that makes index funds so formidable.
Now, we Fools think it is possible for ordinary investors to outperform the index. Not paying usurious fees to fund managers is one place to start.
But on top of this, you have to do a lot of research and work, find companies that are real winners and buy them at great prices – preferably when no one else wants to touch them. That’s partly how the great Warren Buffett managed to beat the market over multiple decades.
Beating the market is tough. But it is possible, and it’s also a highly lucrative pathway to wealth creation if you can find it and stay on it.
And if you decide it’s a path you don’t want to tread, there’s nothing wrong with sticking with an index fund either!
But if you do want to have a go at achieving some market-beating returns, the 5 shares below could be a great place to start!
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading over 30% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
As of 2/6/2020
More reading
- What the 10 largest companies in the world have in common
- ASX 200 closes higher, banks keep rising
- 3 tips for surviving an ASX recession
- CSL share price lower despite COVID-19 vaccine news
- Why Alumina and Stockland share prices could outperform in coming weeks
Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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These quality ASX dividend shares have very juicy yields
If you’re looking for some quality ASX dividend shares to buy, then the three listed below tick a lot of boxes for me.
I think they are among the best on offer for income investors right now. Here’s why:
Commonwealth Bank of Australia (ASX: CBA)
The first ASX dividend share to consider buying is Commonwealth Bank. I think the big four banks were severely oversold during the pandemic and, although they have recovered strongly over the last few weeks, I still think they are undervalued. My preference in the sector remains Commonwealth Bank due to the overall quality of its business. Next year I expect the company to cut its dividend to ~$3.70 per share. If this proves accurate it will mean a fully franked 5.4% FY 2021 yield.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue Metals could be a great dividend share to own if you don’t mind investing in the resources sector. It looks well-positioned to deliver strong profit results in FY 2020 and FY 2021 thanks to sky high iron ore prices, improving production grades, and its low cost operations. And with the iron ore producer’s balance sheet looking strong, I suspect the majority of its free cash flow will be returned to shareholders. I expect this to lead to a fully franked dividend of at least 6% in FY 2021.
Telstra Corporation Ltd (ASX: TLS)
A third dividend share to consider buying is Telstra. The telco giant is one of my favourite income options right now due to its attractive valuation, generous yield, and positive outlook. The latter is thanks to the NBN headwind beginning to ease and its significant cost cutting. Combined, I believe Telstra could return to growth in the coming years. But thankfully, until then I believe it dividend is sustainable at 16 cents per share. This equates to a fully franked 5% dividend yield.
And below is another dividend share which looks well-positioned to grow strongly over the next decade. This could make it a must buy for income investors..
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.
More reading
- ASX 200 closes higher, banks keep rising
- Here’s why I think CBA shares are a good buy today
- Ready to invest your first $2,000 in ASX shares? Do these 3 things first
- 2 ASX growth shares I’d buy before Afterpay shares
- Top broker tips the Vocus share price to zoom higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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Why the Appen share price fell nearly 5% today
The Appen Ltd (ASX: APX) share price slumped 4.59% today to close at $29.08.
Why the Appen share price fell today
The drop came Friday after an after-market announcement on Thursday that revealed a number of Appen’s directors have been selling shares.
The company chair, Chris Vonwiller, sold 18% of his holding for an average price of $29 per share. He sold them for personal reasons, including philanthropy. This left him with a total of 9 million shares.
CEO and managing director Mark Brayan sold 18.6% of his holding at an average price of $30.60 per share. Brayan sold in order to meet tax obligations and to diversify his personal wealth. He continues to hold 418,309 Appen shares.
Non-executive director Bill Pulver sold just over 45% of his holding in Appen at an average of $30.69 per share. This director sold in order to diversify his personal wealth and has a remaining holding of 332,384 shares.
Together, the directors sold an aggregate of 2.37 million shares, representing a total value of $68,919,600 at today’s share price.
While the directors each gave reasons why they sold some of their holdings, this didn’t stop the Appen share price from falling in response today.
The company’s share price today is down from its 52 week high of $32.30 reached in May. It has, however, risen 11.20% compared to this time last year. The company’s share price has also risen significantly since the beginning of January when it sat at $22.18.
Appen has seen considerable success lately through the development of its artificial intelligence (AI) products. The company builds software that can recognise language and images. At its AGM in May, Appen outlined that global AI spending is rising at 28% per year. This demonstrates that it has the ability to reach a rapidly growing market.
The company’s revenue has grown at a compound annual growth rate (CAGR) of 59% since 2015. Underlying earnings before interest, tax, depreciation and amortisation have risen at a CAGR of 64% over the same timeframe.
Appen had $100 million in cash on its balance sheet in May.
NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%…
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
More reading
- ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
- Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
- Why the Appen share price could come under pressure today
- 3 small cap ASX tech shares that could be stars of the future
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen 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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ASX 200 closes higher, banks keep rising
What happened today on the ASX?
The S&P/ASX 200 Index (ASX: XJO) closed higher today, with the ASX banks pushing higher.
The ASX 200 keeps going higher despite an initial wobble this morning. The Australian dollar keeps rising as well.
Here are some ASX highlights from today:
ASX banks pull the index higher
The ASX may have finished in the red if it weren’t for the continued positive movements by the major ASX 200 banks. It has been a huge week for them.
Today we saw the Commonwealth Bank of Australia (ASX: CBA) share price rise 1.9%, the Westpac Banking Corp (ASX: WBC) share price rose by 3.4%, the Australia and New Zealand Banking Group (ASX: ANZ) share price went up 2.9% and the National Australia Bank Ltd (ASX: NAB) share price went up nearly 3%.
Kogan.com Ltd (ASX: KGN) shoots the lights out
The online retailer is seeing an astonishing amount of growth in the final quarter of FY20. The Kogan.com share price rose 8.6%, so it’s well on its way to entering the ASX 200 this year.
Today it said it added another 126,000 active customers in May 2020, bringing the total to 2.074 million at the end of last month.
So far in the fourth quarter of FY20, gross sales and gross profit have grown by more than 100% and 130% respectively. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) has risen more than 200%.
The company finished with $58.6 million of cash and $26 million of debt at the end of May 2020.
New Hope Corporation Limited (ASX: NHC) delayed again
The ASX 200 coal miner announced today that the High Court of Australia has granted Oakey Coal Action Alliance Inc (OCAA) special leave to appeal the orders of the Queensland Court of Appeal which were made on 1 November 2019.
New Hope said that OCAA isn’t challenging findings on groundwater or any other environmental issue that is relevant to any decision being made by the government. This is why the company thinks the Queensland state government should immediately approve the New Acland Stage 3.
NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%…
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
More reading
- What the 10 largest companies in the world have in common
- Why is it so hard to outperform the ASX 200 index?
- These quality ASX dividend shares have very juicy yields
- Here’s why I think CBA shares are a good buy today
- 3 tips for surviving an ASX recession
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com 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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Broadcom Reports Solid Results, Dividend As Analysts Boost PTs
Broadcom (AVGO) has reported an in-line April quarter, and guided to an in-line July quarter at $5.75B (consensus $5.8B). Shares in AVGO gained 1% in Thursday’s after-hours trading following the earnings release.Specifically, Q2 Non-GAAP EPS of $5.14 was in-line with consensus expectations, while GAAP EPS of $1.17 beat by $0.21. Revenue of $5.74B climbed 4% from the previous year, and topped Street estimates by $50M. Meanwhile Q2 adjusted EBITDA was $3.2B, again, coming in slightly higher than the $3.11B consensus.Semiconductor Solutions reported revenue of $4,027M (-1% y/y) but Infrastructure software revenue came in strong at $1,715M (+21% y/y).“Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19,” commented Hock Tan, CEO of Broadcom Inc. “Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless.”At the same time the company declared a $3.25/share quarterly dividend, in line with previous payouts, for a forward yield of 4.2%.“We generated record quarterly free cash flow of over $3 billion and reinforced our balance sheet, ending the quarter with over $9 billion of cash,” explained Tom Krause, CFO of Broadcom Inc. As a result, AVGO “remain[s] committed to maintaining our dividend while we navigate these unprecedented times.”Following the report Mizuho Securities analyst Vijay Rakesh reiterated his AVGO buy rating while ramping up his price target from $315 to $325 (5% upside potential).“We continue to see AVGO as well positioned, driven by 5G networking and wireless, software M&A, strong FCF, and dividends, with near-term COVID-19 headwinds subsiding” Rakesh told investors, adding that the company is currently trading at an attractive ~13.1x F21E (Oct) P/E.Likewise RBC Capital’s Mitch Steves boosted his price target from $300 to $340 noting that AVGO is seeing much more demand than it can currently supply for Q3. “AVGO is seeing strong uplift in demand from the ramp of next-generation deep learning inference chips” the analyst wrote, while demand from enterprise customers for data protection controllers has recovered and is showing strength.Overall, AVGO scores a bullish Strong Buy Street consensus, with 19 buy ratings offset by 2 hold ratings. However, the average analyst price target stands at $303, indicating downside potential of 2%. Shares in AVGO are trading down 2% year-to-date. (See AVGO stock analysis on TipRanks).Related News: Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal Ebay Lifts Quarterly Sales and Profit Forecast; Shares Jump To All-Time High Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion More recent articles from Smarter Analyst: * Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal * Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says Analyst * 3 Under-The-Radar Cannabis Stocks Ready to Bounce * AstraZeneca Seeks To Make 2 Billion Covid-19 Vaccine Doses With New Supply Deals
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