Stock Pick – Page 6578 – Curated Stock Market News

Elon Musk Finishes Digging Las Vegas ‘Loop’ Train

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14 May 2020
Saudis Slash Oil Sales to Meet Pledge for Deeper Output Cuts

(Bloomberg) — Saudi Arabia will trim oil shipments to the prized Asian market in June and cut exports even more aggressively to Europe and the U.S., in a possible sop to President Donald Trump and hard-pressed American shale producers.OPEC’s biggest member is seeking to shore up a tentative recovery in crude markets after the coronavirus crushed energy demand and sparked the oil industry’s worst crisis in decades. The Saudis are voluntarily reducing supply to the lowest level in 18 years as they lead a global effort to drain a glut that has dragged down prices by more than half this year.State-producer Saudi Aramco will cut June exports to at least a dozen Asian customers, according to traders notified by the company. Aramco plans even deeper reductions in the amount of crude it will send to the U.S. and Europe, according to people with knowledge of the situation.“It’s politically important to the U.S. and to Trump” that the Saudis will be sending less oil to the Atlantic Basin, said Olivier Jakob, managing director at consultant Petromatrix GmbH in Zug, Switzerland. “It’s also a gesture toward the Russians that the Saudis aren’t looking to crash the European market.”Aramco didn’t immediately respond to emails seeking comment, and the people asked not to be identified because the information is private.Eight of the 12 refiners in Asia that had their supplies cut said the reductions were substantial, with curtailments of 20%-30% or more from contracted amounts. Most of the larger cuts were among buyers in China and India, and some of them said they were in talks with Aramco to try and get more crude. Three other regional buyers received what they asked for.The world’s largest oil exporter will go even further, however, in curbing shipments to the U.S. and Europe, where buyers will receive only about half of the volumes they normally purchase, according to the people. Some buyers may see purchases slashed by as much 70%, the people said.The reduction in sales to the U.S. may benefit Trump, who is keen to protect jobs in the American oil industry during an election year. The president has threatened to impose tariffs on Saudi crude imports, and he helped orchestrate last month’s output-cuts agreement between the Organization of Petroleum Exporting Countries and allies such as Russia.Trump said this week crude prices were rising thanks to Saudi supply reductions. “Our great Energy Companies, with millions of JOBS, are starting to look very good again,” he said on Twitter.Days after Trump spoke last week with Saudi Arabia’s King Salman, the monarchy announced it would voluntarily cut 1 million barrels of daily production. That’s on top of cuts the Saudis already pledged to make under the OPEC+ accord.Iraq, OPEC’s second-biggest producer, is also curbing supplies to Asia. The group’s third- and fourth-largest members, the United Arab Emirates and Kuwait, said they would make additional output cuts beyond what they promised OPEC.The decrease in shipments to Asia, the world’s biggest oil market, is likely to support premiums in the spot market for July-loading cargoes. It coincides with an improvement in demand as the Chinese economy revives from the coronavirus and consumption in India shows signs of recovering.Russian Sokol and Iraqi Basrah crudes have already started trading at higher differentials, according to three traders who buy and sell those grades in the region.Russia, which also sells Urals grade crude in Europe in competition with Saudi barrels, played a key role in reassembling the OPEC+ alliance to reach the April output-cuts deal and ending a global price war.See also: Saudi Arabia, Russia See Oil Recovery While Cuts Take EffectAramco’s allocation announcement for Asia came later than usual this month, following a delay in its release of official selling prices. The Saudi price increase to Asian buyers took many of them by surprise. While the company raised prices to all regions for June, it made its biggest increases for buyers in Europe.(Updates from first paragraph with cuts to the U.S. and Europe.)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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14 May 2020
Royal Caribbean Cruises Seeks $3.3 Billion Debt Sale, Moody’s Cuts Rating to Ba2 Junk Status

Royal Caribbean Cruises (RCL) is planning to raise $3.3 billion from a bond sale as the ailing cruise operator struggles with the financial fallout of the coronavirus-related travel restrictions which brought its operations to an almost complete halt.The embattled cruise operator is offering series of notes due 2023 and 2025, which will be secured by 28 of the company's vessels, it said in a SEC filing. The proceeds of the $3.3 billion secured note issuance will be used to refinance the cruise operator’s existing $2.4 billion 364-day secured facility that matures in March 2021 with the balance being held for liquidity purposes.“The incremental $1 billion will bolster the company's liquidity position and ensure the company can get through the next year even with operations remaining suspended,” Moody’s Investors Service said in a report.Moody’s slashed Royal Carribean’s credit rating by two notches to Ba2 into junk territory with a negative outlook due to its suspended operations and in expectation of a slow recovery even when cruise activity will resume.The cruise operator disclosed that it expects to post a preliminary first-quarter net loss of $1.44 billion versus a profit of $249.7 million year-on-year. It will also write down the value of its Silversea Cruises unit and a number of ships by $1 billion to $1.3 billion. A prolonged suspension of operations is estimated to incur cash burn of about $250 million to $275 million per month. Total revenue in the three months ended March 31 dropped 16.7% to $2 billion, according to preliminary figures."Cruise operations will continue to be suspended in the US beyond the current July 24 no-cruise order issued by the Centers for Disease Control and Prevention (CDC) and available capacity will be modest for the remainder of 2020 and possibly into early 2021 as the risk of fully restarting operations before proper safety protocols are in place far exceed the potential reward," stated Pete Trombetta, Moody's lodging and cruise analyst. “When cruise operations do resume deployed cruise ships will have limits on the occupancy for each ship while social distancing rules remain in place which will lead to lower ship-level profitability during this period.”The credit ratings agency’s negative outlook reflects the cruise operator’s high leverage and the uncertainty around the pace and level of the recovery in demand that will enable the company to de-lever, Moody’s added.Deutsche Bank analyst Chris Woronka, who has a Hold rating on the stock estimates that sailings won’t resume before August. Woronka’s $38 price target reflects 10% upside potential to current levels.“RCL had $2.3bn of cash as of April 30 and has drawn another $150m on its revolver in May, which translates into nine to ten months of liquidity, excluding cash refund liabilities,” Woronka wrote in a note to investors last week. “We remain wary about reading too much into forward looking commentary, since change/cancellation policies have been relaxed and we don't know what the initial consumer reaction will be to the "new normal" once onboard.”The rest of Wall Street analysts is slightly more optimistic than Deutsche Bank. The stock’s 12 analyst ratings consist of 5 Buys, 6 Holds and 1 Sell adding up to a Moderate Buy consensus. The $68.33 average price target implies a 98% upside potential in the shares in the coming 12 months. (See Royal Caribbean stock analysis on TipRanks).Related News: Walt Disney Raises $11 Billion From Bond Sale to Bolster Finances Intelsat Sinks 18% On Bankruptcy Filing Twitter Won’t Reopen Offices Before Sept., Allows Permanent Work From Home More recent articles from Smarter Analyst: * GM Plans To Reopen Lucrative Mexican Pickup Plant Next Week- Report * Cisco Shares Up Pre-Market After Topping Quarterly Profit Bets * Allogene Explodes 28% After-Hours On Initial ALLO-501 Data * Mastercard Sees Steady Improvements As Spending Begins To Recover

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14 May 2020
One country might emerge from the pandemic stronger than before

"It's an unprecedented opportunity."

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14 May 2020
4 top ASX 200 shares for blue chip investors
If you’re interested in bolstering your portfolio with some blue chip shares, then I would suggest you consider the four listed below.

Here’s why I think they are quality options for blue chip investors:

BHP Group Ltd (ASX: BHP)

I believe that BHP would be a great blue chip option for investors. I think the Big Australian is the standout option in the resources sector thanks to its world class, low cost, and diverse operations and the strong free cash flows they generate.

Commonwealth Bank of Australia (ASX: CBA)

With Commonwealth Bank’s shares down 35% from their 52-week high, I think now could be an opportune time to invest. Especially given how the banking giant appears to have got all the bad news out of the way now following its third quarter update this week. And while trading conditions remain tough, I believe things will improve in 2021 and a return to growth could follow soon after.

Telstra Corporation Ltd (ASX: TLS)

Another company which I believe isn’t far off a return to growth is Telstra. Times have been hard for the telco giant, but things are starting to look positive now. This is due to its T22 strategy, the easing of the NBN rollout headwinds, increasing data consumption, and the arrival of 5G internet. Another positive is that its free cash flows appear sufficient to support its current dividends. This could mean the cuts are over.

Woolworths Limited (ASX: WOW)

A final blue chip to consider buying is this retail conglomerate. I think its strong brands, entrenched customer base, and non-discretionary nature makes for a very defensive business model. This should ensure that it continues growing its earnings and dividends over the next decade no matter what happens in the economy post-pandemic.

Looking for even more ideas? Then you won’t want to miss out on these dirt cheap shares which were caught up in the market crash.

5 cheap stocks that could be the biggest winners of the stock market crash

Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

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Returns as of 7/4/2020

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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 Telstra Limited. The Motley Fool Australia owns shares of 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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14 May 2020
Is this ASX 200 REIT a bargain right now?
The Stockland Corporation Ltd (ASX: SGP) share price has slumped 41.34% lower in 2020 and is underperforming the S&P/ASX 200 Index (ASX: XJO) – but is it in the buy zone yet?

Why the Stockland share price has been hammered

Let’s start with what Stockland actually does. The group is a real estate investment trust (REIT) that invests in a large portfolio of commercial and residential property. In fact, Stockland’s portfolio spans residential, retail, workplace and logistics, and retirement living villages.

On the surface, the Stockland share price looks to be a bargain. A diversified real estate manager with $7 billion in assets that are trading 40% lower this year – what’s not to like?

But these aren’t normal times and investors have been spooked. Specifically, it’s quite hard to value real estate assets right now. COVID-19 restrictions have reduced demand in the retail and office sectors. That could mean fewer tenants and/or lower rent in the future which lowers asset values.

These valuation questions and hit to earnings have rocked the Stockland share price hard this year. But, state and federal governments are slowly easing restrictions, so could Stockland be undervalued right now?

Is now a good time to buy the ASX REIT?

Now, just because an ASX share has fallen lower does not necessarily make it a buy. On the other hand, a long-term investor should be able to see through the day-to-day or month-to-month noise.

The real question is whether or not the Stockland share price is appropriately valued. Do the current conditions make the Aussie REIT worth less in the future? My answer is probably.

It’s true that rents will take a long time to recover. There’s pressure right across the economy, including residential real estate with high unemployment testing asset quality.

On the other hand, I think the Stockland share price will bounce back. Stockland is a strong ASX dividend share that is currently yielding 10.17%. Of course, this may well be slashed due to soft earnings and being artificially high from the share price declines. However, I believe we’ll see more shoppers back in retail centres and continued demand for real estate assets.

So, while the Stockland share price may be worth less, I don’t think it’s worth 40% less. That means the current $2.71 per share valuation could be a steal if you’re investing for the long-term.

If Stockland isn’t a good fit for you right now, check out this top ASX dividend pick for a good price today!

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.

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*Returns as of 7/4/20

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Motley Fool contributor Ken Hall 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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14 May 2020
UK in talks with Roche on ‘game changer’ COVID-19 antibody tests

Britain is in talks with Swiss drugmaker Roche Holding AG on rolling out an accurate COVID-19 antibody test that it said could be a ‘game changer’ on getting the world’s fifth largest economy back to work. The British government said it was talking with Roche on rolling out its test after a Public Health England laboratory at Porton Down, in Wiltshire, concluded it had 100% specificity. “This has the potential to be a game changer,” said Edward Argar, Britain’s junior health minister.

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14 May 2020
How to manage your super in an ASX market crash
It’s funny how you never hear people talk about their superannuation until there’s some good old-fashioned volatility in the markets. Unfortunately, it’s normally not things which I find encouraging to hear.

See, some people get the idea that when the share market is crashing, it’s then a good time to convert the capital in their super funds from ASX shares to cash or fixed-interest investments. You know, so they ‘don’t lose any more’.

This is a terrible idea and a terrible way to treat your retirement savings. Here’s why.

When people start realising the share market is ‘crashing’, it’s normally after the markets have already lost a healthy chunk of their value, say 10-15%.

By the time they convert their shares to cash within their super fund, it might be at 20%. So you’re selling your assets at a 20% discount and going to cash, locking in a substantial loss.

People usually decide to go back to shares when the markets are recovering, too. Some of the best days of positive returns in the share market often come after days of heavy selling. So it’s highly likely that anyone who is trying to convert their cash back into shares will miss most of these days.

What’s really happening is losses are being locked in, and gains locked out. It’s an awful way to invest.

What should you do with your super if there’s a market crash?

Well, if you’re more than 10 years away from retirement, either do nothing or add more cash! You have plenty of time to ride out any future crashes and benefit from buying more shares when they’re on sale. Playing around with your super fund when there’s volatility in the markets will not help your retirement fund at all.

If you’re nearing retirement and wish to be a little more conservative with your capital, the time to put this in motion is when times are good, not in the middle of a market crash. Yes, this will take a small amount of foresight and might involve giving up some potential gains. But that’s the price of reducing volatility – there’s not really a free lunch here.

So have a think about what you would do if the markets fell 15% next week. Hopefully, the answer is nothing but if it isn’t, make a plan now so you don’t have to when it’s too late!

Before you go, make sure to check out the free report below!

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

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Returns as of 6/5/2020

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Motley Fool contributor Sebastian Bowen 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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14 May 2020
ASX 200 drops 1.7%, Xero reports a profit
The S&P/ASX 200 Index (ASX: XJO) fell by 1.7% today in another red day for the Australian share market.

Australia’s unemployment numbers were revealed today with the economy losing 594,300 jobs. Youth unemployment and the number of hours worked also showed a painful decline.

These job numbers are probably why the ASX 200 lost quite a bit of ground over the last two hours of trading.

There were some individual highlights within the ASX 200:

Xero Limited (ASX: XRO)

The Xero share price fell around 4.7% today after the ASX 200 accounting software business released its FY20 report to investors.

Operating revenue grew by 30% to NZ$718.2 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up 88% to NZ$137.7 million. Free cash flow grew 320% to NZ$27.1 million and Xero generated a net profit of NZ$3.3 million.

Total subscribers grew by 26% to close to 2.3 million. UK subscribers increased by another 32% to 613,000.

Xero warned that trading in the early stages of FY21 has been impacted by the coronavirus environment.

Charter Hall Group (ASX: CHC)

The share price of the ASX 200 property group business rose by 4.25% after giving a market update.

Charter Hall reaffirmed its FY20 earnings guidance for approximately 40% operating earnings per security growth compared to FY19.

At 30 April 2020 it had $39.2 billion of funds under management (FUM) and a development pipeline of $7.3 billion. So far during the year it has seen FUM growth of $8.8 billion.

Breville Group Ltd (ASX: BRG)

The share price of Breville jumped 6.7% higher today after reacting to a trading update and the capital raising. The share price of the ASX 200 business was up more than 10% earlier today.

Breville has already completed a $94 million institutional placement with significant support from existing investors.

In the trading update Breville said that it delivered 32% revenue growth for the period from 1 January 2020 to 30 April 2020. Revenue growth in March was 25% and in April was 21%. The gross margin in January to April 2020 was consistent with the first half of 2020.

Despite the good performance, the ASX 200 company has moved to manage cashflow and reduce cash expenses.

5 cheap stocks that could be the biggest winners of the stock market crash

Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

See the 5 stocks

Returns as of 7/4/2020

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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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14 May 2020
3 top ASX 200 shares every investor should buy
The S&P/ASX 200 Index (ASX: XJO) is full of top shares that would be good additions for almost any portfolio.

ASX 200 shares are large enough to be fairly robust (compared to small caps). And outside of the ASX 20, I think there are many ASX 200 shares that have good growth potential despite the coronavirus.

Here are three of those ideas:

Service Stream Limited (ASX: SSM)

Service Stream is involved in designing, building, maintaining and operating network infrastructure. The networks it’s involved with include telecommunications, electricity, gas, water and ‘new energy’.

Underlying profit and the dividend have continued to grow attractively over the last few years and utilities will continue to be important during this period and beyond.

I think it could provide an attractive combination of dividends and earnings growth over the coming decade compared to most ASX 200 shares.

Altium Limited (ASX: ALU)

I think Altium is one of the highest-quality shares in the ASX 200. It has very efficient, focused management that are steering the company towards achieving a global market leading position by 2025.

The electronic PCB software business has been a solid performer year after year. It’s facing short-term impacts from the coronavirus which is causing prices to fall and probably the margin too. But for the long-term I think it’s better to continue winning new clients so that after the coronavirus it has a large group of new, sticky clients that will pay full price fees year after year. It’s still aiming for 100,00 Altium Designer subscribers by 2025.

The cloud offering of Altium 365 is an imperative part of winning over new clients. It’s why Altium is investing heavily in Altium 365 for an even better experience.

Altium has a very solid balance sheet. In the recent update it said that it had US$77 million of cash.

I’d love to buy more Altium shares for my portfolio, but I’m waiting for a cheaper share price.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX 200 share stalwart. It has been listed on the ASX for decades and it hasn’t decreased its dividend for over forty years. That’s a great record in my opinion.

In the short-term I don’t think most investors are giving enough weight to the quality and value of its non-construction assets. If the industrial property trust was valued by the market like 50% partner Goodman Group (ASX: GMG) is, Brickworks would have a higher share price. Brickworks’ investment division also provides very defensive earnings and dividends.

Things do look tough on the construction side of things in 2020. But it won’t be like this forever. Australia and the US will continue to need building products in the future, even if it takes 12 months (or more) to recover. But Brickworks is a great business which will recover quickly once orders start coming in.

It also current offers a grossed-up dividend yield of 6.4%. I think it could be one of the best ASX 200 dividend shares.

Time to buy these ASX 2oo shares?

I think all three of these shares look like good long-term ideas to me. I’m waiting for a better share price to buy Altium shares, but Brickworks could be a great long-term buy today.

These three shares aren’t the only buy ideas out there right now, here are some more to look at.

5 of the best ASX shares you could want to buy today

Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

See the 5 stocks

Returns as of 7/4/2020

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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Service Stream 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.

The post 3 top ASX 200 shares every investor should buy appeared first on Motley Fool Australia.

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14 May 2020