Stock Pick

  • 3 ASX shares I’d buy with $6,000 today

    thinking

    ASX shares are the best way to grow your wealth over the long-term in my opinion.

    Businesses can deliver good compound growth and pleasing dividends over many years. It’s also a lot easier switching an investment to another ASX share than it is to sell a property (and then buy another).

    Here are three ASX shares that I’d buy with $6,000:

    Share 1: Bubs Australia Ltd (ASX: BUB)

    Bubs is one of my main growth ASX share ideas at the moment. I really like the trajectory that the business is on.

    It specialises in goat milk products and it’s seeing enormous growth with its infant formula division. In the three months to 31 March 2020, Bubs saw a 137% increase of infant formula revenue which represented 58% of gross sales. If the company can continue to grow internationally at a strong rate then it could become a sizeable business.

    I like that Bubs is in control of its own supply chain after the Deloraine acquisition. I also like that it isn’t too heavily dependent on China revenue. Its ‘other markets’ revenue grew by around 20 times in the quarter to 31 March 2020 – this division represented 12% of gross sales.

    The fact that it’s now cashflow positive is very encouraging. Over the next five years I think the Bubs share price could be one of best performers on the ASX.

    Share 2: MFF Capital Investments Ltd (ASX: MFF)

    MFF Capital is one of the best listed investment companies (LICs) on the ASX in my opinion. It’s run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. The job of a LIC is to invest in shares on behalf of shareholders. MFF Capital typically targets quality international shares.

    Prior to COVID-19, it had been one of the best-performing LICs. The ASX share has since moved to a high cash position. At the end of June 2020 it had a net cash position of 44%. This can be used for protection against another market selloff and also to buy any beaten up opportunities that appear.

    The LIC is looking for longer term opportunities rather than short term trading opportunities. The LIC is looking for businesses with sustainable advantages it can hold large positions in. However, it still owns significant positions in shares like Visa, MasterCard and Home Depot.

    I have a lot of confidence in Mr Mackay’s ability to create market-beating returns. It’s trading at a 5% discount to the pre-tax net tangible assets (NTA) at 3 July 2020.

    Share 3: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

    As long-term readers would know, Soul Patts is one of my preferred long-term ASX share ideas.

    It is a very old investment conglomerate that invests in a broad range of businesses, both listed and unlisted. Two of its largest listed holdings are TPG Telecom Ltd (ASX: TPG) and Brickworks Limited (ASX: BKW). Some of its unlisted investments are swimming schools, agriculture and resources.

    I’m quite excited by the new venture that Soul Patts may invest into. Regional data centres could be a very promising industry, particularly as more aspects of life move online.

    The investment house invests in other businesses for the long-term, which makes it much easier to invest in Soul Patts itself for the long-term.

    Soul Patts has survived through recessions, world wars and even the Spanish Flu. Whatever happens next, I think the company (and its diversified portfolio) is well placed to continue growing its in value.

    As a bonus, the ASX share has grown its dividend every year since 2000 and it retains some of its cashflow profit each year to reinvest into more opportunities. At the current share price, Soul Patts is trading with a grossed-up dividend yield of 4.3%.

    Foolish takeaway

    I’d happily invest $2,000 into each of these ASX shares. I think Bubs has the best chance of creating excellent returns over the next five years. But I also believe MFF Capital and Soul Patts can comfortably outperform the broader ASX over the next few years as well.

    Where to invest $1,000 right now

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

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, and Washington H. Soul Pattinson and Company 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 I would buy Nanosonics and these ASX growth shares

    growth shares

    If you’re a fan of growth shares like I am, then you’re in luck because there’s a good number of quality companies trading on the Australian share market that I believe are capable of growing their earnings at a strong rate over the next decade.

    Three that I would consider buying this month are listed below. Here’s why I like them:

    Aristocrat Leisure Limited (ASX: ALL)

    One of my favourite growth shares on the local market is Aristocrat Leisure. I’m a big fan of the gaming technology company due to the quality of its core business and the strong growth potential of its digital business. The latter business has millions of daily active users generating significant recurring revenues. Due to new releases and the growing popularity of social and mobile gaming, I expect it to generate strong recurring revenue growth in the 2020s. This should drive strong profit growth over the medium term and help propel the Aristocrat Leisure higher.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    Although this pizza chain operator’s performance over the last few years has been a little mixed, I believe its long term outlook is increasingly positive. This is because management intends to grow its global store network by 7% to 9% per annum for the next 3 to 5 years. Combined with its same store sales growth target of 3% to 6% per annum over the same period, this should lead to strong profit growth. If it delivers on these targets, then I suspect that the Domino’s share price will be a market beater through to 2025.

    Nanosonics Ltd (ASX: NAN)

    A final growth share to buy is Nanosonics. It is the infection prevention specialist behind the popular trophon EPR disinfection system for ultrasound probes. I’m a big fan of the company due to the quality of the product and the recurring revenues it generates from consumables sales. Given its massive market opportunity and management’s plan to launch several new products targeting unmet needs in the near term, I believe Nanosonics is well-positioned to continue its strong growth for many years to come.

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    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 Nanosonics Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and Nanosonics 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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  • It Took a Pandemic to Settle Bayer’s Roundup Suits

    It Took a Pandemic to Settle Bayer’s Roundup Suits(Bloomberg Opinion) — In late June, Bayer AG agreed to pay $9.5 billion to settle about 100,000 lawsuits that accused Roundup, the popular herbicide it acquired when it bought Monsanto in 2018, of causing non-Hodgkin lymphoma. The settlement came about even though Bayer adamantly insists that glyphosate, the core chemical in Roundup, is not a cancer agent, a position also taken by the Environmental Protection Agency and other regulators around the world. It also came about after the plaintiffs won the first three cases that went to trial, including one last year in which a jury awarded $2 billion to a California couple. The plaintiffs’ lawyers had hoped to leverage those victories to extract $20 billion or even $30 billion from Bayer to settle the litigation.And the settlement came about even though we’re in the middle of a pandemic. Or perhaps it’s more accurate to say that it came about because we’re in the middle of a pandemic. “There were no juries and no trials,” said Ken Feinberg, who, as the court-appointed special master, was assigned the task of trying to resolve the litigation. You see, without trials, there wasn’t much else either side could do besides settle.When plaintiffs’ lawyers join forces to gin up a mass tort, they have two forms of leverage. One is their ability to accumulate not just hundreds of lawsuits, but tens of thousands of them. That’s why whenever an allegedly faulty product comes under scrutiny by the plaintiffs’ bar, the lawyers advertise heavily, searching for clients who can claim to be hurt by the product. Once upon a time, this was called “ambulance chasing,” but now it’s simply seen as part of a sophisticated legal business model.The second form of leverage are the trials themselves, especially in plaintiff-friendly jurisdictions like St. Louis, Missouri, or Madison County, Illinois. Juries do not need much in the way of evidence to award billions of dollars to sympathetic plaintiffs who are dying of cancer. Sometimes they don’t need any evidence at all — the mere implication of corporate misconduct is all it takes. And even though these awards are invariably lowered by the trial judge — and sometimes overturned on appeal —thousands of more cases are stacked up right behind them. It’s fair to say that Bayer, a German corporation, miscalculated when it bought Monsanto. Indeed, there are those who believe that had Bayer’s executives better understood how the American legal system works (or doesn’t work, depending on your perspective), it would have never completed the deal. By May 2019, less than a year after the Monsanto deal was completed — and after those first three juries had sided with the plaintiffs — Bayer’s stock had dropped 44%. During the ensuing months, it took steps to mitigate the damage. It cut 12,000 jobs. It dumped its animal health business. It sold two of its best-known brands, Coppertone and Dr. Scholl’s. Nothing seemed to help. By late March this year, Bayer’s market cap was less than the $63 billion it had paid for Monsanto. Which is right around the time the pandemic shut down much of the U.S., including its court system.The legal system didn’t completely grind to a halt, of course. Status hearings and depositions can be done using a platform like Zoom; several lawyers have told me they actually prefer to conduct depositions virtually because the process is so much more efficient. But a full-fledged trial can’t take place on Zoom. Too many aspects simply require everyone to be in a courtroom.At the urging of U.S. District Judge Vince Chhabria in San Francisco, who was overseeing the Roundup litigation, the two sides began settlement talks in the spring of 2019, with Feinberg brought in as mediator. They had not gone well. The lead lawyers for the plaintiffs were asking for an amount — upwards of $30 billion — that Bayer thought was not only unjustified but far in excess of what the company, which was carrying $38 billion in debt, could afford. Still, with a handful trials scheduled for 2020, including one in St. Louis, the plaintiffs’ lawyers felt they had the upper hand.In early 2020, Bayer sought a delay in the St. Louis trial so the negotiations could continue. Feinberg agreed. But progress remained slow, with the two sides adamant about their positions. Elizabeth Cabraser, a prominent plaintiffs’ attorney, would later tell the court that “each side threatened to walk away at multiple points, and the mediator’s direct resolution of disputes was required, at times, to prevent the discussions from collapsing altogether.”“What broke the logjam was the pandemic,” Feinberg told me.The virus created a new kind of uncertainty. Who could say how long the pandemic would last? Years, perhaps, if a vaccine wasn’t developed quickly.  And thus, who could say how long it would be before trials might be able to resume? The plaintiffs’ lawyers had clients who were sick and eager to get some money. And, of course, the lawyers themselves didn’t want to wait forever to be paid. Suddenly, despite not having won any trials, Bayer had some leverage.Scott Partridge, a Monsanto veteran who became Bayer’s general counsel after the deal was completed, decided to sidestep the lead plaintiffs’ lawyers (they’re called the plaintiffs steering committee), and open negotiations with dozens of other lawyers with large numbers of Roundup cases. Sure enough, with the pandemic having put everything on hold, they wanted to do a deal.Suddenly this intractable litigation gave way to progress, as one law firm after another signed on to a settlement outline that Feinberg and others helped craft. By April, Feinberg felt certain that a deal was close. And while it took two more months to get to the finish line, he was right. The final terms called for Bayer to pay about $9.5 billion to settle about 100,000 cases, with $1.5 billion more or so to handle various other issues, including future claimants.That still means 25,000 lawsuits haven’t accepted the terms, but Feinberg told the New York Times he “would be surprised if there are any future trials.” Besides, as part of the settlement, a five-member scientific panel will be established to examine causation — that is, does glyphosate truly cause cancer? Its conclusion will be binding, which means that the holdouts could get nothing if the panel rules that Roundup is benign, as Bayer believes it will. The settlement was announced June 24. The German company — like many foreign companies caught up in a mass tort — will never stop believing that the process was irrational and its product is safe. And they may well be right. But investors didn’t care. Despite the enormous sum the company has agreed to shell out to the plaintiffs, Bayer’s market cap, at $69.5 billion, is once again larger than the amount it paid for Monsanto.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Nokia to add open interfaces to its telecom equipment

    Nokia to add open interfaces to its telecom equipmentThe new technology, dubbed Open Radio Access Network (Open RAN), aims to reduce reliance on any one vendor by making every part of a telecom network interoperable and allowing operators to choose different suppliers for different components. As part of the implementation plan, Nokia plans to deploy Open RAN interfaces in its baseband and radio units, a spokesman said.

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  • These ASX shares are swept up by the new Victorian COVID-19 lockdown

    Stylised portrayal of virus outbreak on blue background

    A record surge in COVID-19 cases in Victoria forced the state to reimpose stage three lockdowns and this impacted on several ASX stocks.

    The Victorian premier Daniel Andrews announced the bad news late this afternoon after Victoria recorded 191 cases of coronavirus overnight with most of these cases stemming from unknown sources.

    The lockdown, which encompasses all of metropolitan Melbourne and the Mitchell Shire, is a devasting blow to businesses and the Victorian economy.

    ASX shares in lockdown blues

    The news knocked the wind out of the S&P/ASX 200 Index (Index:^AXJO) with the benchmark closing flat after spending most of the day in the black.

    ASX big bank stocks contributed to the weakness, particularly the Melbourne headquartered institutions. The National Australia Bank Ltd. (ASX: NAB) share price slumped 1.9% to $18.34 and the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price lost 1.6% to $18.81.

    But even their Sydney HQ-ed counterparts didn’t far well. The Westpac Banking Corp (ASX: WBC) share price also declined 1.6% to $18.16, while the Commonwealth Bank of Australia (ASX: CBA) share price dipped 0.3% to $71.24.

    Late selling pressure

    It’s worth noting that most of the selling in the banks came in the last 30 minutes of trade. I suspect we will see further pressure on the sector tomorrow.

    The return of stage three restrictions could exacerbate the bank’s bad debt problem as mortgagees and businesses in the state face renewed financial pressure.

    The market had only priced in the impact of the first COVID-19 shutdown and no one knows yet how to quantify the impact from this new six-week restriction.

    What you can expect though is further broker downgrades for some sectors ahead of the reporting season.

    ASX shares benefiting from Victorian lockdown

    On the flipside, several ASX companies saw their share price jump in the closing moments of trade today. The uncertainty left investors scrambling to buy ASX stocks that will either benefit from the pandemic or won’t be impacted by the dark COVID cloud.

    One beneficiary is the Ansell Limited (ASX: ANN) share price. The disposable glove maker’s shares jumped 1.3% to close near its intraday high at $37.92.

    Perhaps investors are counting on a fresh wave of panic buying at our supermarkets too. The Woolworths Group Ltd (ASX: WOW) share price and Coles Group Ltd (ASX: COL) share price saw a late surge in buying interest.

    But investing based on what the coronavirus does or doesn’t do is not a winning strategy. Just as in the last market meltdown, staying calm and keeping an eye out for quality stocks being dumped is the right thing to do.

    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.

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    Motley Fool contributor Brendon Lau owns shares of Ansell Ltd., Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, Westpac Banking, and Woolworths Limited. Connect with me on Twitter @brenlau.

    The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Ansell 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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  • Opinion: John Roberts, the Supreme Court and the Pro-lifers

    Opinion: John Roberts, the Supreme Court and the Pro-lifersMain Street: Betrayed by Justice John Roberts, some despair of getting justices who will follow the law. Images: Getty Images Composite: Mark Kelly

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  • The WiseTech share price is up 15% in a week. Too late to buy?

    cartoon man standing on hourglass reflecting dollar sign with the words time is money

    The WiseTech Global Ltd (ASX: WTC) share price has been a quiet performer on the ASX boards over the past week. Since the start of July, WiseTech shares are up nearly 15% to $22.15 at the time of writing. We’re not yet back to the pre-market crash levels of ~$30 per share, but this global logistical solutions company is still up more than 110% from the lows we saw in March.

    Why is the WiseTech share price climbing?

    There hasn’t been any major news out of the company in July so far, so it’s not entirely clear why the WiseTech share price is so decisively in investors’ good books right now. The company did announce last Friday that around 21,000 shares were being released from escrow as a result of a recent acquisition. But this event was more likely to create selling pressure than buying pressure, if anything.

    I think these moves are just the market ‘getting over’ the fact that WiseTech CEO Richard White recently offloaded around 2.5 million shares (worth around $46 million). The market generally hates insider selling — especially from founders. And $46 million isn’t an insignificant pile of chips to take off the table (although it pales against some other recent instances of insider selling). When Mr White’s sale was announced, WiseTech shares fell more than 6%. But the increases over the last week mean the Wisetech share price has now recovered from that news and then some.

    Are WiseTech shares a buy today?

    WiseTech is a good company in my view. I think it’s really found a winner with its CargoWise software solutions. I also think the company has a promising growth runway ahead if it can keep making smart acquisitions. What’s more, WiseTech shares remain significantly below the sky-high prices they were trading at last year. At one point in September, the WiseTech share price reached as high as $38.80.

    But that in itself doesn’t mean today’s share price of $22.15 is automatically a bargain, of course. Even at the current valuation, I still have some concerns. WiseTech’s current price-to-earnings (P/E) ratio is still sitting at 77.04 – a long way from the current S&P/ASX 200 Index (ASX: XJO) average of ~17. It also has a price-to-sales (P/S) ratio of more than 16, which I would regard as extremely high.

    Foolish takeaway

    I accept that WiseTech’s business model can distort these conventional valuation metrics somewhat. But I’m still not convinced there is much value in the WiseTech share price right now. As such, I think there are better growth opportunities out there and I’ll be sitting on the sidelines for this one.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

    See The 5 Stocks

    *Returns as of June 30th

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. 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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  • 3 top ASX 200 shares to buy in July

    finger pressing red button on keyboard labelled Buy

    Last week, the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) both cracked the 6,000 point mark with ease. With markets continuing to defy odds and seemingly ignoring economic woes, here are 3 ASX 200 shares you could consider buying in July. 

    1. Tyro Payments Ltd (ASX: TYR) 

    The Tyro Payments share price struggled to make headway in late June. Increasing fears of a second wave of COVID-19, particularly in Victoria, and escalating lockdown measures could be the main drivers of this share price slump. These impact on policy decisions such as expanding restaurant dine-in capacity and allowing stadiums to reopen. This, in turn, could slow the return of normal business activity which is vital for Tyro’s EFTPOS terminal turnover.  

    The company has committed to providing the market with weekly transaction value updates. By the end of FY20, Tyro delivered a 15% increase in transactions compared to FY19. From 1 July to 3 July, transaction values were up a significant 40% on the prior corresponding period. I believe Tyro’s numbers are reflecting Australia’s pent-up consumer demand and a slow but steady return to normal. As such, I’m confident the combination of recovering economic activity, a move away from cash and Tyro’s competitive pricing makes it a strong ASX 200 stock to consider buying this month. 

    2. Pointsbet Holdings Ltd (ASX: PBH) 

    The Pointsbet business has been performing strongly despite the significant disruption of COVID-19 to key sporting leagues such as the NRL, AFL and NBA. The company had previously announced an agreement in Australia to become the exclusive wagering partner for Fox Sports AFL during the 2020 season. Pointbet’s continued strong performance has also been driven by a shift to online gambling, increase in racing turnover and an improvement in the company’s overall product offering leading to a greater share of wallet from existing clients. 

    The United States market represents a significant opportunity as more states continue to legalise sports betting. I believe Pointsbet is in a strong position to continue growing its market share and presence in a number of US states. The planned recommencement of key sports such as the NBA, MLB and PGA should also help restore confidence in the Pointsbet share price. 

    3. EML Payments Ltd (ASX: EML) 

    EML follows a similar narrative to Tyro with improving economic activity and the gradual reopening of shopping malls across various countries. There are many reasons EML could represent a leading ASX 200 recovery stock to buy in July. 

    EML’s acquisition of Prepaid Financial Services (PFS) has reduced the company’s dependence on gift cards (particularly shopping centre gift cards) for revenue. EML’s general purpose reloadable (GPR) business, which includes products such as salary packaging, digital banking products and gaming, now represents more than 50% of its revenues. This is the first time in the company’s history that it is deriving the majority of its revenue from GPR programs. The renegotiated acquisition terms of PFS now places EML in a better capital position with $125m in cash as at 30 April 2020. I believe an improvement in economic activity and the company’s strong balance sheet make it a strong buy case at today’s prices.

    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.

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    Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd and Tyro Payments. The Motley Fool Australia owns shares of and has recommended Emerchants Limited. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • 3 of the best ETFs for ASX investors to buy in July

    ETF

    If you don’t currently have sufficient funds to invest across a large number of different shares, then exchange traded funds (ETFs) could be the answer.

    ETFs allow you to invest in a particular theme, index, or industry through just a single investment.

    There are countless ETFs out there for investors to choose from, but three of my favourites are listed below. Here’s why I like them:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The BetaShares Asia Technology Tigers ETF could be a top option for ASX investors. This fund tracks the performance of an index of the 50 largest technology and online retail companies that have their main area of business in Asia (excluding Japan). These companies are among the fastest-growing in the region and look exceptionally well-positioned to be market-beaters over the next decade. Among its biggest holdings you’ll find the likes of Alibaba, Baidu, JD.com, and Tencent.

    BetaShares NASDAQ 100 ETF (ASX: NDQ)

    Another exchange traded fund which I think has the potential to outperform the ASX 200 is the BetaShares NASDAQ 100 ETF. As you might have guessed from its name, this exchange traded fund gives investors exposure to the 100 largest businesses on Wall Street’s technology-focused NASDAQ index. As a result, through a single investment investors will be getting a slice of tech behemoths such as Amazon, Apple, Alphabet, Facebook, Microsoft, and Netflix. Other notable holdings include Starbucks, Tesla, and Zoom.  

    iShares Global Healthcare ETF (ASX: IXJ)

    A final exchange traded fund to consider buying is the iShares Global Healthcare ETF. I think this is a great option for investors that are looking for exposure to the healthcare sector. This is because this exchange traded fund gives investors access to many of the biggest and brightest healthcare companies in the world. This includes CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, Ramsay Health Care Limited (ASX: RHC), and Sanofi. Given the positive outlook for the healthcare sector over the next couple of decades due to ageing populations and increased chronic disease, I believe it could provide strong returns for investors,

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

    See The 5 Stocks

    *Returns as of June 30th

    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 BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, Ramsay Health Care Limited, and Sonic Healthcare 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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  • Magellan share price rises on increased funds under management

    shares higher

    On Tuesday, the Magellan Financial Group Ltd (ASX: MFG) share price has risen by more than 3% to $64.39 per share at the time of writing. The share price gains came off the back of Magellan’s most recent funds under management update. 

    What was in the announcement?

    The announcement detailed Magellan Financial Group’s most recent funds under management. In June, Magellan saw net fund inflows of $249 million. This included net retail inflows of $173 million along with net institutional inflows of $76 million.

    The group reported that its average funds under management were $95.5 billion for the year ended June 30 2020. This was a 26% increase on the year ended 30 June 2019, which saw average funds under management of $75.8 billion.

    The announcement also revealed that in July, Magellan will pay distributions of approximately $650 million. This will be reflected in the next month’s funds under management announcement. 

    The company estimates that it will receive performance fees of approximately $81 million for the year ended 30 June 2020.

    How has Magellan performed recently?

    Magellan Financial Group is a fund manager that invests in global equities and global infrastructure. It has offices in Australia, New Zealand and the US and manages more than $97 billion. Magellan has 34 experienced investment professionals on its staff.

    Magellan invests in what it names “the world’s best companies”. It has over 10 listed and unlisted equities and infrastructure funds.

    In June, Magellan launched its fourth ETF product, the Airlie Australian Share Fund, which is intended to bring together the features of an unlisted fund and active ETF into a single unit in a single fund.

    Magellan now has over $2.5 billion in ETF funds under management and 35,000 ETF unit holders.

    For the half year to 31 December 2019, Magellan had a net profit after tax of $216.8 million. This was a 12.8% increase on the same period in the prior year. Performance fees for the half year to December 2019 were $41.7 million.

    The Magellan share price is up 110% from its 52 week low of $30.10. It has returned nearly 9% since the beginning of the year and is up 17.87% since this time in 2019.

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    Motley Fool contributor Chris Chitty 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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