Stock Pick

  • 5 things to watch on the ASX 200 on Wednesday

    ASX share

    On Tuesday the S&P/ASX 200 Index (ASX: XJO) was in sensational form and surged notably higher. The benchmark index jumped 2.6% to 6,156.3 points.

    Will the market be able to build on this on Wednesday? Here are five things to watch:

    ASX 200 expected to give back some gains.

    The ASX 200 index looks set to give back some of its gains on Wednesday. According to the latest SPI futures, the benchmark index is expected to open the day 62 points or 1% lower. This follows a mixed night of trade on Wall Street which saw the Dow Jones climb 0.6% higher, the S&P 500 rise 0.2%, and the Nasdaq drop 0.8%.

    Tech shares on watch… again.

    Tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) were exceptionally strong performers on Tuesday after following the lead of their U.S. counterparts. However, it looks likely that they may give back some of these gains on Wednesday after major tech companies on the Nasdaq index tumbled lower overnight. Profit taking put pressure on the likes of Facebook, Amazon, and Apple.

    Oil prices jump.

    It looks set to be a positive day for energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) on Wednesday after oil prices jumped higher. According to Bloomberg, the WTI crude oil price rose 2.3% to US$41.76 a barrel and the Brent crude oil price pushed 1.7% higher to US$44.01 a barrel. Coronavirus vaccine hopes gave oil prices a major lift.

    Gold price storms higher.

    Gold miners including Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch on Wednesday after the gold price stormed higher. According to CNBC, the spot gold price rose 1.4% to US$1,842.80 an ounce after the U.S. dollar weakened further.

    BHP rated as a buy.

    Analysts at Goldman Sachs think the BHP Group Ltd (ASX: BHP) share price offers value for investors. This morning the broker has retained its buy rating and $38.80 price target on the mining giant’s shares. It likes the Big Australian due to its valuation, strong and improving free cash flow, high returning green/brownfield projects, and possible portfolio optimisation/assets sales.

    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 Altium. 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.

    The post 5 things to watch on the ASX 200 on Wednesday appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3hhGNWy

  • Analyst reveals ‘the real question’ to be asking on next stimulus round

    Analyst reveals 'the real question' to be asking on next stimulus roundRaymond James Washington Policy Analyst Ed Mills joins Yahoo Finance’s Akiko Fujita to discuss the latest developments on another stimulus package in Congress.

    from Yahoo Finance https://ift.tt/2OJrg5R

  • If You Own ADP (ADP) Stock, Should You Sell It Now?

    If You Own ADP (ADP) Stock, Should You Sell It Now?Polen Capital Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. During the second quarter of 2020, the Polen Focus Growth Model Portfolio returned 27.60% gross of fees, while the Russell 1000 Growth Index was up 27.83% and the S&P 500 Index was up 20.54%. You should check […]

    from Yahoo Finance https://ift.tt/2WI4uQ2

  • I would buy Coles and these ASX dividend shares right now

    Coles share price

    Fortunately for income investors in this low interest rate environment, there are plenty of dividend shares that offer superior yields to those that you’ll find with term deposits and savings accounts.

    Three strong ASX dividend shares that I would buy today are listed below. Here’s why I like them:

    BWP Trust (ASX: BWP)

    BWP is a real estate investment trust which has strong ties with Wesfarmers Ltd (ASX: WES). Not only are the majority of BWP’s warehouses leased to the conglomerate’s Bunnings business, Wesfarmers is also a major BWP shareholder. I see this as a big positive as I feel the Bunnings owner is very unlikely to do anything that would have a negative impact on BWP’s performance and ultimately its investment. As a result, I believe the company is well-placed to continue delivering consistent income and distribution growth over the next decade. Based on the latest BWP share price, I estimate that it offers investors a forward 4.7% yield.

    Coles Group Ltd (ASX: COL)

    Another dividend share that has close ties with Wesfarmers is Coles. It was spun out of the conglomerate back in 2018. Since then it has been onwards and upwards for the supermarket giant’s share price. Despite this, I don’t believe it is too late to invest. I’m confident that it can grow its earnings and dividend at a solid rate over the next decade thanks to its defensive earnings, refreshed strategy, expansion opportunities, and its focus on automation. For now, based on the current Coles share price, I estimate that its shares offer a fully franked 3.4% FY 2021 dividend.

    Transurban Group (ASX: TCL)

    A final dividend share to consider buying is Transurban. I think it would be a great long term option for patient investors. This is because although its performance is likely to underwhelm in the immediate term, I expect a swift recovery for its toll roads once the pandemic passes. I also expect the same for its distributions and believe a 44 cents per unit distribution is possible next year. Based on the current Transurban share price, this equates to a 3.1% distribution yield.

    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

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, and Wesfarmers 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 I would buy Coles and these ASX dividend shares right now appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2OIKHLM

  • Tesla sinks after JMP Securities downgrade

    Tesla sinks after JMP Securities downgradeYahoo Finance’s Emily McCormick discusses why Tesla is getting downgraded at JMP a day before the company’s earnings results with Akiko Fujita.

    from Yahoo Finance https://ift.tt/32FNYUs

  • Should You Be Adding JD.com (NASDAQ:JD) To Your Watchlist Today?

    Should You Be Adding JD.com (NASDAQ:JD) To Your Watchlist Today?Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story…

    from Yahoo Finance https://ift.tt/2OK3ir1

  • Drugmaker Founder Who Needed Loan Sharks Now Worth $10 Billion

    Drugmaker Founder Who Needed Loan Sharks Now Worth $10 Billion(Bloomberg) — Seo Jung-jin used to borrow money from loan sharks, pledging his organs to get much needed funds for his upstart drugmaker. Now he’s the second-richest person in South Korea, trailing just Samsung Electronics Co.’s chairman.The Celltrion Inc. founder’s fortune has swelled to $10 billion as shares of his company, which is developing a Covid-19 treatment, almost doubled this year.His rise is extraordinary and represents a shift in the country’s business elite. While family-run conglomerates touch almost every aspect of life in South Korea, more corporate founders making fortunes in non-traditional sectors like Seo have emerged. As the coronavirus pandemic upended people’s lives, the trend has only become more pronounced, with the chaebols losing more of their luster.“Boundaries between industries are getting blurry,” said Park Ju-gun, president of corporate watchdog CEOScore in Seoul. “Those who sit still with traditional businesses don’t cope well with the change. The pandemic has accelerated the trend.”Coal BriquettesBorn to a family who sold coal briquettes, Seo, 62, worked as a taxi driver to get himself through Konkuk University in Seoul. After studying industrial engineering, he rose through the ranks of Daewoo Motor Co., before losing his job when the automaker went bust following the Asian financial crisis. In 2000, he set up a company called Nexol with former Daewoo colleagues to explore business opportunities. It eventually became what is now Celltrion’s global marketing affiliate, Celltrion Healthcare Co.He got interested in biosimilars — medical products similar to drugs that are already approved — in the early 2000s, betting that aging societies will need alternatives to costly medicines. Celltrion, started in 2002, ran into financial trouble in 2004 after the failure of some vaccine clinical trials, prompting Seo to go to loan sharks, according to a Financial Times article in 2012 that a Celltrion spokesman confirmed. The company is now a giant that develops biosimilars such as monoclonal antibody Remsima of Johnson & Johnson’s Remicade.Like in most of the rest of the world, Korean tech and pharma stocks have soared in 2020, with Celltrion up 78%. The stock has risen almost five-fold in the past five years.Seo’s net worth is based on his holdings in Celltrion and Celltrion Healthcare. Shares he pledged as collateral were removed from the calculation. He declined an interview for this story, and a company representative declined to comment on his net worth.Last year, Seo said he would step down from management in 2020, explaining that remaining the chairman beyond retirement age would make the company a “kingdom,” according to an interview with local newspaper Hankyoreh.Not a King“The chairman is a title, not a king,” he said.While South Korea’s wealthiest person remains Samsung Electronics Chairman Lee Kun-hee, the families behind some of the largest conglomerates have dropped from their rankings on the Bloomberg Billionaires Index of the world’s 500 richest people.Hyundai Motor Group’s Mong-Koo Chung and SK Group’s Chey Tae-won, as well as cosmetic maker Amorepacific Group’s Suh Kyung-bae were among the nation’s top five wealthiest people five years ago. They’ve since lost more than $9 billion combined.Newcomers such as Seo and tech entrepreneurs have replaced them.Gamemaker Nexon Co.’s Kim Jung-ju has become Korea’s third-richest person with a $7.8 billion fortune, while Brian Kim, the founder of social-messaging app Kakao Corp., entered the wealth ranking for the first time this year. His company’s businesses encompass ride-hailing and payment services, and its shares have more than doubled since a March low as limited person-to-person interactions during the pandemic have increased demand for its services. He has the nation’s fifth-biggest fortune, $5.1 billion, just after Samsung Electronics’ Lee Jae-yong.It’s only in certain sectors like biopharma and tech that the new rich can flourish as traditional industries require huge capital to break into, according to CEOScore’s Park. That’s why inherited wealth will not go away, he added.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.

    from Yahoo Finance https://ift.tt/2ZNQw0X

  • Mnuchin: Goal is to have stimulus deal by end of week

    Mnuchin: Goal is to have stimulus deal by end of week Yahoo Finance’s Jessica Smith joins Zack Guzman to break down the latest developments on a second stimulus package.

    from Yahoo Finance https://ift.tt/3hounfO

  • U.S. Plans Charges in $60 Million Public Corruption in Ohio

    from Yahoo Finance https://ift.tt/3jkwaUK

  • Boeing 737 MAX not expected to fly before October, FAA preparing directive

    Boeing 737 MAX not expected to fly before October, FAA preparing directiveThe Federal Aviation Administration (FAA) said on Tuesday it plans to issue a proposed airworthiness directive for the Boeing 737 MAX in the “near future” to address changes made since the plane was grounded in March 2019 after two fatal crashes killed 346 people. An official briefed on the matter told Reuters that the FAA is unlikely to unground the 737 MAX before sometime in October. Boeing Co did not immediately comment but has said previously it expects to resume deliveries before Sept. 30 following regulatory approval.

    from Yahoo Finance https://ift.tt/2BmSYlK