• American Airlines Is Planning $1.5 Billion Stock, Convertible Sale

    American Airlines Is Planning $1.5 Billion Stock, Convertible Sale(Bloomberg) — American Airlines Group Inc. is seeking to raise about $1.5 billion by selling shares and convertible notes, according to people with knowledge of the matter, as it shores up liquidity after months of travel disruption from the coronavirus pandemic.The carrier, which has been gauging demand from potential investors over the weekend, could announce the offering as early as Sunday, the people said, asking not to be identified because the information is private. Deliberations are ongoing, and the timing and details of any deal could change, they said.A representative for American declined to comment.Fort Worth, Texas-based American is also planning a junk bond offering to raise about $2 billion at a yield of 11%, Bloomberg News reported Friday. The company is working with Citigroup Inc. on the debt offering, which could be launched as soon as this coming week.Delta Air Lines Inc., Southwest Airlines Co. and JetBlue Airways Corp. have tapped debt investors in recent weeks to boost liquidity.Airline passenger numbers in the U.S. fell 81% year-over-year as of June 16, according to the Transportation Security Administration. American this week removed a passenger who refused to wear a face covering and banned him from taking flights in the future.American shares have tumbled 44% this year through June 19, the second-best performer in a Standard & Poor’s index of the five largest U.S. carriers, behind only Southwest. The gauge has fallen 47% this year.American to date has depended largely on $5.8 billion in employee payroll support from the U.S., and is in talks to close a separate $4.75 billion federal loan the carrier has said should be finalized this month.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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  • Coronavirus, U.S. housing market, Nike earnings: What to know in the week ahead

    Coronavirus, U.S. housing market, Nike earnings: What to know in the week aheadInvestors will be monitoring the recent spike in coronavirus cases, the U.S. housing market and Nike earnings in the week ahead.

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  • Nikola Corporation Vs Tesla Inc: How Different?

    Nikola Corporation Vs Tesla Inc: How Different?I read your article on Nikola and Tesla in which you brought up some very good points concerning bloated valuations, thank you for that. However, I wanted to point out a few things you seemed to ignore. Nikola Corporation vs Tesla Inc Valuation First, you made Tesla look like it has a realistic value attached to it […]

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  • 3 Safe Dividend Stocks Yielding Over 6%

    3 Safe Dividend Stocks Yielding Over 6%A lot has changed in the world over the past few months, but you wouldn’t know it from the stock market. The NASDAQ, for example, is up 11% year-to-date and recently set a new all time high. However, when it comes to dividend stocks things have definitely changed. This is due to the impact of COVID-19, which caused several companies to slash their dividends to conserve cash leaving investors in shock. Now more than ever, before jumping into a dividend stock it is prudent to carefully examine how safe it is.With this in mind, we looked for dividend stocks with strong balance sheets and cash flow generation that comfortably cover their dividend payments. We used TipRanks’ database to identify dividend stocks that have earned a “Strong or Moderate Buy” consensus rating from the analyst community. The platform steered us toward three dividend stocks that offer investors yields ranging from 6% to just over 9%. Not to mention upside potential between 10% and 25%.AT&T (T)The first dividend stock is AT&T, the telecom giant with staggering annual revenues approaching$180 billion. The company operates four business divisions that comprise: Communications, WarnerMedia, Latin America, and Xandr.First quarter operating performance was soft, partially due to COVID-19. Revenue was $42.8 billion and adjusted earnings were 84 cents per share, compared with $44.8 billion and 86 cents in the first quarter of 2019. On the bright side, the stock is currently yielding a healthy 6.72%. Moreover, the company has a long track record of 36 years of increasing its dividend payment.5-star Oppenheimer analyst Timothy Horan sees improvement ahead for the AT&T’s stock. In a recent research note, Horan commented on why he likes the company’s prospects.“AT&T has a solid balance sheet and an attractive dividend yield. It has the ability to integrate its services in unique ways, and we see substantial room to use virtualized technologies to greatly reduce operating and capital expenditures,” Horan noted.To this end, Horan rates T a buy along with a $47 price target. This figure represents upside potential of 55% from current levels. (To watch Horan’s track record, click here)What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 8 Buy ratings, 11 Holds and 2 Sells add up to a Moderate Buy consensus. In addition, the $34.40 average price target indicates 13.5% upside potential. (See AT&T stock analysis on TipRanks)Enterprise Products Partners (EPD)ֵֵThe next dividend stock is Enterprise Products Partners, a master limited partnership that provides midstream energy services to producers and consumers of petroleum products. The company owns a large amount of pipelines, storage and processing facilities, and transportation services, which transport products to end users. EPD wasn’t affected by the severe downturn in the oil sector as it earns income for the use of its services regardless of the costs of petroleum. In fact, first quarter results actually improved, with net income rising to $1.4 billion, compared to $1.3 billion, in the first quarter of 2019.Turning to the company’s dividend — it currently yields a very generous 9.15%. Distributable cash flow was $1.6 billion in the first quarter and provided 1.6x coverage of the dividend payment. Sufficient coverage significantly lowers the risk of a reduction to the dividend payment.Among EPD's bulls is BMO analyst Danilo Juvane. He explains investors why he is excited about the company: “EPD reported in-line 1Q20 earnings, the sum of which spoke to a resilient model in the face of an adverse macro backdrop. Announced capex reductions are a positive insasmuch at it provides additional cushion to an already strong balance sheet coupled with ample payout coverage and liquidity. Bottom line is that we reaffirm EPD as one of our top picks, as we see its platform positioned to weather the storm in the coming quarters.”As a result, Juvane rates Enterprise an Outperform (i.e. Buy) and has a $27 price target on the stock, which translates into a huge upside potential of 78%. (To watch Juvane's track record, click here)Other analysts are also enthusiastic about the stock. Enterprise sports a Strong Buy consensus rating that breaks down into 9 Buys and 2 Holds. The average price target is $24.00 with significant upside potential of 25%. (See EPD stock analysis on TipRanks)Bank Of Nova Scotia (BNS)Our last dividend stock is Bank Of Nova Scotia, a Canadian bank with over $1.2 trillion in assets. The bank provides retail, commercial, wealth management and investment banking services in Canada and internationally.BNS's recent quarterly earnings plunged as it set aside a record C$1.85 billion for loan losses due to COVID-19. Net income for the three months ended April 30 dropped to C$1.32 billion, from C$2.26 billion, a year earlier.BMO analyst Sohrab Movahedi tells investors that despite the large drop in earnings the bank is still in good shape, “The balance sheet and liquidity position remain strong”. Movahedi’s comments provide investors with comfort regarding the safety of the company's dividend payment. The bank recently paid out a quarterly dividend of $0.65 per share, which represents an attractive 6.14% yield.While BNS saw its shares drop almost 20% over the last year, Movahedi believes there are better days ahead for the stock once the economy reopens. He based his opinion on “higher-than-peer earnings growth driven by its international banking segment and recent acquisitions, and continued efficiency improvements." The analyst concluded, "We see "growth on sale" based on the stock's current valuation."All in all, Movahedi rates BNS a Buy alongside a C$65.00 (US$47.76) price target, which implies an upside potential of 14% from current levels. (To watch Movahedi's track record, click here)Overall, BNS holds a Moderate Buy rating from the analyst consensus, based on 2 “buy” ratings and 6 "holds." Shares are selling for $42.05 on the NYSE, and the average price target of US$45.99 implies nearly 9% upside from current levels. (See BNS stock-price forecast on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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  • Spotify price target raised to ‘street high’ at Rosenblatt on latest podcast moves

    Spotify price target raised to ‘street high' at Rosenblatt on latest podcast movesOn Friday, Rosenblatt analysts led by Mark Zgutowicz raised their price target on shares of Spotify from $190 to $275 while keeping their ‘buy’ rating, as the firm sees ‘attractive monetization potential’ from recent exclusive deals. These include The Ringer, The Joe Rogan Experience, and most recently, Kim Kardashian West’s The Innocence Project and Warner Bros./DC Entertainment. The Final Round panel discusses.

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  • Chief Investment Officer on how the typical asset allocation strategy has ‘let investors down’

    Chief Investment Officer on how the typical asset allocation strategy has 'let investors down'Robert Wyrick, CIO of Post Oak Private Wealth Advisors, joins The Final Round to share the sentiment from those approaching retirement and how investors can look to adjust their portfolios.

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  • What summer travel in the US will look like this year

    What summer travel in the US will look like this yearHenry Morley, Founder & CEO of True Luxury Travel, joined Yahoo Finance’s The Final Round to discuss summer travel trends and why his clients have been turning to ‘drive to’ and ‘off grid’ destinations.

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  • What you’re reading in the newspaper today is not what the market is valuing: CIO

    What you're reading in the newspaper today is not what the market is valuing: CIOKatie Nixon, CIO at Northern Trust Wealth Management, joined Yahoo Finance’s The Final Round to discuss her outlook for the market and investor sentiment.

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  • These fantastic healthcare ASX shares could make you wealthy

    Doctor with stethoscope in hand and data graph showing upward trend

    The world’s population is getting older and will continue to do so over the coming decades.

    According to data from the United Nation’s World Population Prospects: the 2019 Revision, by 2050, one in six people will be over the age of 65 globally.

    In addition to this, the number of people aged 80 years or over is projected to triple from 143 million in 2019 to 426 million in 2050.

    Given these huge shifts in demographics, demand for healthcare services is expected to increase materially over the next three decades.

    In light of this, I think that investing in the healthcare sector is a smart move.

    But which shares should you buy? Sticking with quality seems like the best move in my eyes, which means these three healthcare stars could be the ones to buy today:

    Cochlear Limited (ASX: COH)

    The first healthcare share to look at buying is Cochlear. I think the hearing solutions company has a very positive long term outlook thanks to its exposure to the aforementioned ageing populations tailwind. This is because as people age, their hearing will generally fade and require some form of assistance. I expect this to lead to increasing demand for hearing solutions products over the next couple of decades.

    CSL Limited (ASX: CSL)

    My favourite healthcare share is this biotherapeutics giant. I believe that both its CSL Behring and Seqirus businesses are well-placed to deliver strong sales and earnings growth over the next decade. This is thanks to their in-demand therapies and vaccines and their lucrative research and development pipelines. Within CSL’s current pipeline are therapies that have the potential to generate billions of dollars in sales over the next decade.

    Ramsay Health Care Limited (ASX: RHC)

    A final healthcare share to consider buying is Ramsay Health Care. It is a leading private healthcare company with a total of 480 facilities across 11 countries. Given its global footprint, I believe Ramsay’s network is well-placed to benefit greatly from the expected increase in demand for healthcare services in the future. This could make it worth looking beyond the short term headwinds it is facing and focusing on its positive long term outlook.

    And here are more exciting shares which could be destined for big things…

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    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 Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Are these small cap ASX tech shares the next Afterpay or Appen?

    Cyber technology and software image

    The likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) weren’t always multi-billion dollar tech companies.

    At one stage they were small cap tech shares flying under the radar, just like the ones listed below.

    Whether these three shares will follow in their footsteps, only time will tell, but I think they are well worth keeping a very close eye on. Here’s why I like them:

    ELMO Software Ltd (ASX: ELO)

    The first small cap ASX tech share to watch is this cloud-based human resources and payroll software company. ELMO provides users with a unified platform that streamlines processes such as recruitment, on-boarding, learning, and payroll. It has a sizeable market opportunity in the ANZ market and the potential to expand globally in the future. This is thanks to its platform being jurisdiction agnostic.

    Volpara Health Technologies Ltd (ASX: VHT)

    Another small cap ASX tech share to watch is this healthcare technology company. Volpara’s software uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. Demand for its software has been growing strongly, leading to the company recently delivering a 172% increase in annual recurring revenue (ARR) to NZ$18 million in FY 2020. This is still only scratching at the surface of an estimated US$750 million ARR opportunity in breast cancer screening.

    Whispir (ASX: WSP)

    A final small cap ASX tech share to watch is this software-as-a-service communications workflow platform company. It provides an industry-leading software platform that allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. During the first half of FY 2020, its annualised recurring revenue increased 22% to $36.7 million. Pleasingly, the second half looks set to be even stronger thanks to the work from home initiative.

    And here are more exciting shares which could be stars of the future…

    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!

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    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 VOLPARA FPO NZ and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended VOLPARA FPO NZ 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.

    The post Are these small cap ASX tech shares the next Afterpay or Appen? appeared first on Motley Fool Australia.

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