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Is BlackBerry Stock a Buy Right Now? This Is What You Need To Know
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If you don’t get more stimulus checks this summer from Uncle Sam, here’s how the stock market may react
Uncle Sam best come through with more stimulus checks, or else investors could be battered.
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China Imports Stuck at India Ports Show Standoff Casualties
(Bloomberg) — Imports from China have been piling up at Indian ports pending government clearances, causing concern that a recent border standoff between the two nations could have an economic fallout that will disrupt supply chains.From active pharmaceutical ingredients that go into the world’s most-consumed drugs to the innards of popular mobile phones, Indian companies purchase Chinese raw materials that feed their finished products. These consignments are now being delayed and firms aren’t sure why.“Customs authorities have not been clearing consignments coming from China, and they haven’t been offering any reasons,” Dinesh Dua, chairman of India’s Pharmaceutical Export Promotion Council, said by phone. “It has been five days now. We have no source apart from China.”Dua, who’s also chief executive officer of Nectar Lifesciences Ltd., said he has written to the ministries responsible for pharmaceuticals and trade to seek help as companies are spending about 350,000 rupees ($4,630) a day in demurrage charges. Similar concerns are being voiced by electronics manufacturers, along with anxiety about how they will run their factories, only recently reopened after India’s lockdown to contain the coronavirus.“Five consignments of mine are stuck,” said Sudhir Hasija, chairman and founder of Karbonn Mobiles, which builds smartphones, chargers and set top boxes. “The government collected customs duty and GST on them. 100% of the inspections are done. Now I’m told they are waiting for release instructions, from whom I don’t know. I haven’t received any communication.”Businesses worry that they may end up becoming the casualty of a brewing trade war between the Asian giants sparked off by a border clash that killed 20 Indian soldiers and left an undisclosed number of Chinese dead. India plans to impose stringent quality control measures and higher tariffs on imports from China, people with the knowledge of the matter have said. India on Monday banned 59 Chinese apps, citing threats to its sovereignty and security.Stopping imports from China at domestic ports will lead to losses for those Indian businesses that placed orders before the border clashes, Nitin Gadkari, Indian minister for Micro Small and Medium Enterprises, told Quintillion Media on Sunday. Gadkari said his ministry is actively working with the finance and commerce ministries to resolve this issue.Yogesh Baweja, a spokesman for the commerce ministry, declined to comment when called by Bloomberg News while Rajesh Malhotra, who represents India’s Finance Ministry, didn’t answer a call outside office hours in New Delhi on Monday.At least six companies from across India have been affected by the delays, according to Daara Patel, secretary general of the Indian Drug Manufacturers Association that represents small- and medium-sized Indian pharmaceutical manufacturers. Firms are “quite anxious and concerned about the attitude of the clearing agencies across the country,” he said.Though drugmakers typically have stores of API to last as much as three months, one area that could be particularly impacted if these delays persist could be antibiotics, given Indian factories’ dependence on Chinese inputs for those formulations.The Society of Indian Automobile Manufacturers warned in a statement that the congestion at ports could hurt manufacturers. Karbonn’s Hasija said freight forwarders are refusing to lift more material from China because they don’t have space to store the shipments.Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, which represents companies such as Apple Inc. and Micromax Informatics Ltd., said the industry body is in talks with the government to resolve the situation.“We have been assured that the government does not want any disruption in these trying times,” he said, “and all actions will be taken in the interest of the industry and nation.”(Updates with background in 10th paragraph)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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As the Fed’s Powell sounds alarms, mortgage rates tank below 3%
Rates have returned to a record low amid the Fed chief's new warnings about the economy.
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Musk says Tesla is building ‘RNA microfactories’ for CureVac
CureVac, an unlisted German company, has said it is developing transportable, automated mRNA production units that it calls printers. It is also building a new stationary site that could increase its output tenfold to billions of doses.
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Shift co-CEO on the surge in used car sales as buyers move from ‘luxury to more utility’
Toby Russell, Co-CEO of Shift, joined The Final Round to talk the company’s merger with Insurance Acquisition Corp and his outlook for the auto industry.from Yahoo Finance https://ift.tt/2C2Pd4H
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Is the CSL share price fairly valued?
The CSL Limited (ASX: CSL) share price has gone off the radar somewhat in recent months. If we cast our minds back to 2019, CSL shares were the hot stock to own. Everyone was talking about how high CSL could go. And boy did it get high, so to speak. Over the course of the 2019 calendar year, CSL shares rose from around $188 in early January to around $276 by the end of December (nearly 47%).
But over the course of 2020, sentiment on CSL shares has cooled somewhat. The CSL share price started the year at $275.04 and climbed another 24.5% all the way to its all-time high of $342.75 in mid-February. But then the March coronavirus-induced crash came and CSL plummeted back down to roughly $270. Today, CSL shares are asking $288.88 (at the time of writing).
Now, CSL shares are beating the S&P/ASX 200 (INDEXASX: JXO) on a year-to-date returns benchmark. CSL shares are still up roughly 5.12% year to date, whereas the ASX 200 is still nursing a 10% loss for the year so far.
But since 23 March (when the ASX 200 bottomed), the index has risen more than 32%, whilst CSL shares are up 2.5%.
So I think it’s fairly safe to draw the conclusion that CSL is no longer considered the ‘growth wunderkind’ that it was last year in many ASX investors eyes.
Is the CSL share price fairly valued?
So with the current CSL share price inertia, can we consider the shares to be ‘fairly valued’ today? Well, let’s look at how the market is currently pricing CSL shares.
The current CSL share price (at the time of writing) is $288.88. this gives CSL a market capitalisation of $131.18 billion and a price-to-earnings (P/E) ratio of 44.8. It also offers a trailing dividend yield of 1.01% on these current prices.
In the 2018/19 financial year, CSL brought in US$8.21 billion in revenues and US$1.92 billion in net profits after tax (NPAT). This was an increase of 8.13% and 11% respectively over the 2017/18 financial year.
This is healthy growth to be sure, but does it really justify a P/E ratio of 44.8? I’m not so sure.
The current ASX 200 average P/E ratio is around 16.6, going off the iShares Core S&P/ASX 200 ETF (ASX: IOZ). So you are paying a ~2.5x premium for this company over the market average. Does revenue growth of ~8% and profit growth of 11% justify this premium? Not in my eyes.
Foolish takeaway
Therefore, I don’t think CSL shares are trading at ‘fair value’ today, just going off these humble calculations. I like CSL as a company. It has grown spectacularly over the past 2 decades. But I’m not willing to pay nearly 45x earnings for this company today and I think there are better offers elsewhere.
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
- Should you buy these 2 new ASX 200 index additions?
- This ASX fund manager is still ultra-bearish on shares
- Should you buy ASX gold shares like Saracen Minerals in July?
- Why I would buy and hold a2 Milk and this ASX 200 share until 2030
- Top brokers name 3 ASX 200 shares to sell right now
Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Is the CSL share price fairly valued? appeared first on Motley Fool Australia.
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Should you buy these 2 new ASX 200 index additions?
Each quarter the S&P/ASX 200 (INDEXASX: XJO) is rebalanced to reflect companies with the largest-weighted market capitalisations. This rebalance ensures that the broader market remains liquid and tradeable. Companies added to the benchmark ASX 200 index can experience an increase in demand as fund managers and institutions balance and hedge their portfolios.
The Q3 FY20 rebalance of the ASX indices was abandoned due to the extreme volatility caused by the coronavirus pandemic. As a result, the June rebalance of the index has attracted more interest and activity.
Here are 2 new additions to the ASX 200 index that you should keep your eye on.
Megaport Limited (ASX: MP1)
With businesses relying on the internet to work remotely, shares in the IT sector showed incredible resilience during the coronavirus pandemic. Megaport has been one of the company’s that has thrived during the lockdown period.
The company is a global leader in interconnection services. It uses software-defined networking (SDN) centres to provide bandwidth, allowing customers to connect their network to other services. This allows users to quickly build and access connections to various services. It also offers users scalable solutions with flexible terms, allowing businesses to scale up or down as required.
Megaport’s services are essential which was reflected in the company’s share price recovery. Megaport’s share price soared 120% from its March low to its June high. This gave the company a market capitalisation of more than $2 billion and a place in the ASX 200 index.
With many companies considering the potential of having remote workers post-pandemic, Megaport’s services could receive increased attention.
Mesoblast Limited (ASX: MSB)
Mesoblast’s share price nearly tripled in the 3 months to 30 June with news of the company’s potential coronavirus treatment. This propelled the biotechnology company into the ASX 200 index.
Mesoblast is a world leader in developing regenerative medicines for inflammatory diseases. It prides itself on innovation surrounding stem cell research. The company made headlines in April after it announced promising results for its Remestemcel-L treatment for COVID-19.
In a US trial, the company recorded an 83% survival rate in ventilator-dependent COVID-19 patients. Furthermore, 75% of patients had successfully come off ventilator support within 10 days. Due to the urgent nature of COVID-19 therapies, Mesoblast’s treatments undertook a $46 million phase 2/3 trial in order to gain approval from the US Food and Drug Administration.
Mesoblast also completed a $138 million capital raising in order to scale-up manufacturing of its products and is also in the process of conducting clinical trials in Australia. Mesoblast’s treatments, if approved, will likely generate significant interest from fund managers.
Should you buy these additions?
The addition of a company to the ASX 200 can lead to increased demand in their share registry as many funds have a mandate that requires them to have exposure to companies on a certain index.
In my opinion, the most prudent strategy would be to keep these new additions to the index on a watchlist and let price action dictate before making an investment decision.
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.
*Returns as of June 30th
More reading
- Is the CSL share price fairly valued?
- This ASX fund manager is still ultra-bearish on shares
- Should you buy ASX gold shares like Saracen Minerals in July?
- Why I would buy and hold a2 Milk and this ASX 200 share until 2030
- Top brokers name 3 ASX 200 shares to sell right now
Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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Why the Aurelia Metals share price is up 15% today
The Aurelia Metals Ltd (ASX: AMI) share price has surged 14.95% higher today on the back of its Q4 FY20 update.
The group is an Australian gold and base metals mining exploration company. Aurelia has a landholding in New South Wales’s polymetallic Cobar Basin and operates the Peak and Hera Mine projects.
The 2 major processing plants possess a combined capacity of approximately 1.3 million tonnes per annum (Mtpa).
Q4 FY20 production update
The company has reported preliminary production increases in gold, copper, lead and zinc. However, the standout performer was in its gold production figures with gold increasing from 14.3 thousand ounces (koz) in Q3 FY20 to 32.8 koz in Q4 FY20. For FY20, preliminary gold production totalled 91.7 koz.
In addition, Aurelia’s cash balance at 30 June 2020 is $78.6 million which is an increase from $51.4 million at 31 March 2020. The group had no debt other than usual creditors.
Maiden Federation Resource Estimate announcement
On 9 June, Aurelia Metals released a Maiden Resource Estimate (MRE). The Federation deposit contains 197,000 tonnes of lead, 348,000 tonnes of zinc, 67,000 ounces of gold and 755,000 ounces of silver.
Drilling is ongoing to test the prospects of the mine with mineralisation ranges from 80–550 metres in depth and remains open in multiple directions.
A scoping study has commenced to evaluate project development options and the company is anticipating processing at the existing Hera Mine plant.
About Aurelia Metals
As stated in the introduction, the group operates the Hera Mine and Peak Mine.
Aurelia purchased Hera Mine as an undeveloped gold, lead, zinc and silver deposit in September 2009. The NSW government approved the development in July 2012 after extensive exploration and a feasibility study in September 2011. In FY19, the mine produced 58,025 ounces of gold at an all-in sustaining cost (AISC) of $809 per ounce.
In April 2019, the company purchased the Peak Mine for $59 million. The group was able to achieve investment payback on this purchase price within 4 months. In FY19, the mine produced 59,496 ounces at an all-in sustaining cost (AISC) of $1,143 per ounce.
After Aurelia Metals share price gain today, the company’s market capitalisation is worth $515 million.
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
- 3 high quality ASX dividend shares for patient investors
- This ASX fund manager is still ultra-bearish on shares
- 2 exciting small cap ASX shares that could be destined for big futures
- Should you buy ASX gold shares like Saracen Minerals in July?
- Why I would buy and hold a2 Milk and this ASX 200 share until 2030
Motley Fool contributor Matthew Donald 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.
The post Why the Aurelia Metals share price is up 15% today appeared first on Motley Fool Australia.
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3 high quality ASX dividend shares for patient investors
If you’re looking to invest in dividend shares and you’re not in immediate need for income, then I think the three ASX dividend shares listed below could be worth considering.
All three dividend shares have been negatively impacted by the pandemic this year. However, I’m confident their performances will improve in FY 2021 and allow them to pay generous dividends again.
Here’s why I would buy them:
Lendlease Group (ASX: LLC)
Earlier this week this international property and infrastructure company released its unaudited results for FY 2020 and revealed a sharp decline in profit. While this was disappointing, I believe all the bad news is now built into the Lendlease share price and the company can start afresh in FY 2021. I’m confident that its burgeoning global development pipeline have positioned the company perfectly for solid earnings growth in FY 2021 and beyond. As a result, I estimate that Lendlease will pay a 57 cents per share dividend next year. This equates to a 4.4% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another company which I expect to bounce back strongly in FY 2021 is Sydney Airport. Unfortunately, its terminals are a bit of a ghost town right now because of the pandemic. But with restrictions easing and state borders reopening, I expect domestic travel markets to recover in 2021 to the point that it is able to pay a decent distribution in the region of 29 cents per unit. Based on the current Sydney Airport share price, this represents a 5% FY 2021 dividend yield.
Transurban Group (ASX: TCL)
A final dividend share to look at buying is Transurban. As with Sydney Airport, its toll roads were virtually empty at the height of the pandemic. However, with restrictions easing, traffic volumes have been recovering and toll revenues are improving. I’m not convinced the company will pay a final distribution, but I expect them to return to relatively normal levels in FY 2021. I estimate that it will pay shareholders a 49 cents per unit distribution next year. Based on today’s Transurban share price, this equates to a 3.4% 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.
*Returns as of June 30th
More reading
- Lendlease share price jumps 6% after being given conviction buy rating
- Fund managers have been snapping up Sonic and these ASX 200 stocks
- ASX 200 finishes 0.6% higher, Aussie house prices fall
- Don’t let low interest rates hold you back! Buy these ASX dividend shares
- Top ASX Stock Picks for July 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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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