• Johnson & Johnson to Begin Coronavirus Vaccine Clinical Trial in July

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Gloved hands holding COVID-19 vaccine syringe

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Johnson & Johnson (NYSE: JNJ) announced on Wednesday that it expects to begin a phase 1/2a clinical trial of its COVID-19 vaccine candidate Ad26.COV2-S, recombinant, in the second half of July. The company previously projected that the early-stage clinical study would begin in September.

    In February, Johnson & Johnson established a partnership with BARDA (the Biomedical Advanced Research and Development Authority) to develop a COVID-19 vaccine candidate at an accelerated pace. Chief Scientific Officer Paul Stoffels noted that the strong preclinical data observed thus far and the company’s discussions with regulatory authorities were key in allowing it to speed up the development program.

    The early-stage clinical trial will be conducted in the U.S. and in Belgium. Johnson & Johnson plans to enroll 1,045 healthy adults between the ages of 18 to 55, plus adults aged 65 and over.

    Johnson & Johnson is also talking with the National Institutes of Allergy and Infectious Diseases about the possibility of starting a phase 3 study of its COVID-19 vaccine sooner if the early-stage studies produce positive results. The healthcare giant is ramping up manufacturing capacity for the experimental vaccine even before clinical testing is completed, with a goal of being able to supply over 1 billion doses next year if the vaccine proves safe and effective.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    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.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    *Extreme Opportunities returns as of June 5th 2020

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    Keith Speights has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Johnson & Johnson. 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 Johnson & Johnson to Begin Coronavirus Vaccine Clinical Trial in July appeared first on Motley Fool Australia.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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  • Second U.S. Virus Wave Emerges With Texas Hitting Record

    Second U.S. Virus Wave Emerges With Texas Hitting Record(Bloomberg) — Texas on Wednesday reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged.A month into its reopening, Florida this week reported 8,553 new cases — the most of any seven-day period.California’s hospitalizations are at their highest since May 13 and have risen in nine of the past 10 days.A fresh onslaught of the novel coronavirus is bringing challenges for residents and the economy in pockets across the U.S. The localized surges have raised alarms among experts even as they’re masked by the nation’s overall case count, which early this week rose just under 1%, the smallest increase since March.“There is a new wave coming in parts of the country,” said Eric Toner, a senior scholar at the Johns Hopkins Center for Health Security. “It’s small and it’s distant so far, but it’s coming.”Though the outbreaks come weeks into state reopenings, it’s not clear that they’re linked to increased economic activity. And health experts say it’s still too soon to tell whether the massive protests against police brutality that have erupted in the past two weeks have led to more infections.In Georgia, where hair salons, tattoo parlors and gyms have been operating for a month and a half, case numbers have plateaued, flummoxing experts.Puzzling differences show up even within states. In California, which imposed a stay-at-home order in late March, San Francisco saw zero cases for three consecutive days this week, while Los Angeles County reported well over half of the state’s new cases. The White House Coronavirus Task Force has yet to see any relationship between reopening and increased cases of Covid-19, Food and Drug Administration Commissioner Stephen Hahn said on a podcast.But in some states, rising numbers outpace increases in testing, raising concerns about whether the virus can be controlled. It will take a couple of weeks to know, Toner said, but by then “it’s going to be pretty late” to respond.QuickTake: Where Are We in Quest for Coronavirus Drugs, Vaccine?Since the pandemic initially swept the U.S. starting early this year, almost 2 million people have been infected and more than 110,000 have died.After a national shutdown that arrested the spread, rising illness had been expected as restrictions loosened. The trend has been observed across 22 states in recent weeks, though many increases are steady but slow.In New York, the state hardest hit by Covid-19, Governor Andrew Cuomo only recently started reopening by region. New York City, the epicenter, began the first of four phases Monday.“We know as a fact that reopening other states, we’re seeing significant problems,” Cuomo said Tuesday. “Just because you reopen does not mean you will have a spike, but if you are not smart, you can have a spike.”Experts see evidence of a second wave building in Arizona, Texas, Florida and California. Arizona “sticks out like a sore thumb in terms of a major problem,” said Jeffrey Morris, director of the division of biostatistics at University of Pennsylvania’s Perelman School of Medicine.Arizona SpikeArizona’s daily tally of new cases has abruptly spiked in the last two weeks, hitting an all-time high of 1,187 on June 2.This week, its Department of Health Services urged hospitals to activate emergency plans. Director Cara Christ, told a Phoenix television station that she was concerned about the rising case count and percentage of people tested who are found to be positive.Valleywise Health, the public hospital system in Phoenix, has seen an increase in Covid-19 cases during the past two weeks. It’s expanded its intensive-care capacity and those beds are 87% full, about half with Covid patients, according to Michael White, the chief medical officer.White said Valleywise has adequate protective gear for staff, but hospitals aren’t getting their entire orders. A surge in Covid cases could put that supply under stress, he said.The increase in transmission follows steps to resume business and public life.“Within Phoenix, we’ve been more relaxed than I’ve seen in some of the other parts of the country,” White said, with some people disregarding advice to wear masks and maintain six feet of distance from others. “People are coming together in environments where social distancing is challenging.”Texas on Wednesday reported a 4.7% jump in hospitalizations to 2,153, the fourth consecutive daily increase. The latest figures showing an escalation came as Governor Greg Abbott tweeted a public service announcement featuring baseball legend Nolan Ryan urging Texans to wash their hands and to not be “a knucklehead.”Abbott was criticized for an aggressive reopening last month. Mobile-phone data show activity by residents is rebounding toward pre-Covid levels, according to the Children’s Hospital of Philadelphia’s PolicyLab.That could reflect a perception that the virus wasn’t “ever a big threat,” said Morris, who recently moved to Philadelphia after 20 years in Houston.Florida’s health department said in a statement that it attributes the increase in cases to “greatly expanded efforts in testing,” and noted that overall positivity rates remain low, at about 5.5%.Bucking the trend is Georgia, which was the first U.S. state to reopen. Covid cases there have plateaued. Despite local outbreaks in the state, “their sea levels did not rise,” said David Rubin, director of the PolicyLab, which has been modeling the virus’ spread. “They’ve kind of held this fragile equilibrium.”Creeping InCalifornia was the earliest state to shut down its economy over the coronavirus, after one of the nation’s first outbreaks in the San Francisco Bay Area. It has been slower than most to reopen.Even so, the state has also seen the number of people hospitalized with Covid-19 rebound in the past two weeks, as commerce accelerates. Case counts are climbing too, although officials attribute that to increased testing and say it’s a sign of preparation.In part, rising numbers represent the virus spreading into places that largely avoided the first round of infections, including rural Imperial County in California’s southeastern desert. Yet the contagion remains present in places that bore the brunt of the first wave, including Los Angeles County. Hospitalizations there are lower than at the start of May, but deaths remain stubbornly high, with 500 in the past week alone.Barbara Ferrer, Los Angeles County public health director, said the region has likely not seen the end of the first wave. And despite concerns about infections coming out of mass demonstrations in the sprawling city, she thinks the reopening of the economy will have a bigger impact.“We’re not at the tail end of anything,” Ferrer said. “We never had a huge peak. We’ve kind of been within this band. We’re not in decline, we’re kind of holding our own in ways that protect the health-care system.” But, she added, “go to Venice and see the crowds, and you’ll understand why I have concerns.”Another OnslaughtThe U.S. has long been bracing for another wave, but future outbreaks are likely to take a different shape. Social distancing and mask-wearing, as well as careful behavior by individuals, are likely to have staying power even as economies reopen.Experts are steeling for autumn, when changes in weather and back-to-school plans could have damaging repercussions.“The second wave isn’t going to mirror the first wave exactly,” said Lance Waller, a professor at Emory University’s Rollins School of Public Health in Atlanta. “It’s not snapping back to exactly the same thing as before, because we’re not exactly the way we were before.”Daniel Lucey, a fellow at the Infectious Diseases Society of America, compared the virus’ new paradigm with a day at the beach: The U.S. has been bracing for another “high tide” like the one that engulfed New York City. Today is a low tide, but “the waves are always coming in.”(Adds new Texas figures in first paragraph, Cuomo comments in 12th.)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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  • JB Hi-Fi share price higher after upgrading profit guidance for FY 2020

    JB Hi-Fi share price

    The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Thursday morning after the release of an announcement.

    At the time of writing the retailer’s shares are up almost 1% to $42.30. This compares to a sharp decline by the S&P/ASX 200 Index (ASX: XJO).

    What did JB Hi-Fi announce?

    Hot on the heels of a sales update by rival Harvey Norman Holdings Limited (ASX: HVN) yesterday, this morning JB Hi-Fi released one of its own.

    According to the release, the JB Hi-Fi Australia business has been performing very strongly during the pandemic.

    Second half sales are up 20% over the prior corresponding period both in total and on a comparable store sales basis. This compares to first half sales growth of 5.1% and brings its year to date growth to 11%.

    It doesn’t stop there. The company’s The Good Guys business has been performing even better. Its sales are up 23.5% so far in the second half. This has been a significant improvement on its performance during the first half, which saw the business deliver only a 1.5% increase in total sales. As a result of this impressive performance, The Good Guys sales are now up 10.7% year to date.

    Unfortunately, things weren’t anywhere near as positive for its JB Hi-Fi New Zealand business. It was forced to close its doors at the height of the pandemic, which has inevitably had a big impact on its second half sales. The business has recorded a 19.3% drop in sales so far this half, which means its year to date sales are now down 7.3%.

    Though, given how small this business is in comparison to the other two, I don’t think investors will be overly concerned with this news. Incidentally, management revealed that it is reviewing the carrying value of the New Zealand business and expects to make a non-cash impairment of $25 million in FY 2020.

    What has been the driver of JB Hi-Fi’s strong sales growth?

    Management advised that its strong sales growth in the second half has been driven by customers spending more time working, learning, and enjoying entertainment at home.

    Pleasingly, although the company has invested in additional operating costs associated with ensuring team members and customers remain safe during the pandemic, it has still experienced strong operating leverage from this elevated sales growth.

    As a result, management notes that both JB HI-FI Australia and The Good Guys have seen strong earnings growth during the second half.

    FY 2020 guidance.

    When the company released its half year results in February, it provided guidance for the full year. At the time, it expected total sales to be ~$7.33 billion with net profit after tax in the range of $265 million to $270 million. The latter represents an increase of 6.1% to 8.1% on the prior corresponding period.

    The following month the company understandably withdrew its guidance due to the uncertainty caused by the pandemic.

    This morning JB Hi-Fi has not just reinstated its guidance, but upgraded it materially.

    Barring any significant changes to its trading performance, management expects total sales of $7.86 billion and net profit after tax (after the aforementioned impairment) in the range of $300 million to $305 million. This will be a 20% to 22% increase on FY 2019’s profits.

    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.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro 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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  • Why do I own this ASX 200 share?

    man on beach looking at laptop screen with question mark, why invest, asx 200 shares

    It’s important to properly review your investment portfolio on a regular basis and ask: why do I own this ASX 200 share? Personally, I like to do this just before the end of the financial year as it helps me with my tax planning. I would also recommend doing something similar annually, bi-annually or every quarter, when results are announced.

    Doing this year’s review, I found myself asking the question, why do I own this S&P/ASX 200 Index (ASX: XJO) share? I discuss this share below, but first I feel it’s important for me to define myself as an investor and outline my investment strategy.

    My ASX 200 investor profile

    • Demographic: Generation Y
    • Investment time horizon: 50 years +
    • Investing experience: high
    • Risk tolerance: very high
    • End goals: Join the FIRE (Financial Independence Retire Early) movement and go travelling. Pass on a financial legacy to my kids.

    My ASX 200 investment strategy

    Because I have such a long time horizon in which to invest, as well as minimal financial commitments, I’m able to be an ultra long-term, aggressive growth investor. My strategy is to build a highly diversified portfolio of quality growth companies with a lot of risk, but massive multi-bagger potential. I try to invest funds into the market on a monthly basis (or as close to this as possible).

    I have been implementing this strategy for over half a decade now, which has seen my portfolio grow to nearly 60 active positions. But importantly, part of my strategy is to let my winners run and to concentrate the portfolio into about 30 meaningful positions. This is already starting to happen naturally. Currently, including roughly a 10% cash position, over 50% of my portfolio is in 18 stocks. Take it out to 32 stocks and that’s 70% of my portfolio.

    So, why do I own this ASX 200 share?

    Challenger Ltd (ASX: CGF) is a financial services company known for being Australia’s largest annuity provider. With so much money in superannuation, my thesis was that our aging population would have growing demand for these types of products. As a result, Challenger could provide market beating total returns by investing funds under management. I also thought the company paid a decent dividend.

    Challenger is one of the first shares I bought, back when I didn’t have a proper strategy. Because of this, it isn’t fully aligned with my current strategy of targeting growth. With interest rates at historic lows, it’s also harder for Challenger to earn high returns on its funds.

    I still think that the investment theme is true and Challenger is a leader in the space. The company also possesses some quality characteristics, but with interest rates so low it probably isn’t the right fit for my portfolio right now. But, it may be for yours.

    Foolish takeaway

    I wrote this article to highlight the fact we are all constantly learning. I learn the most from my ASX 200 investment mistakes, not my winners. My advice is to invest based on your own personal circumstances and goals.

    If Challenger isn’t up your alley, one of these high quality stocks may suit you!

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *  Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Lloyd Prout owns shares in Challenger Limited and expresses his own opinions. The Motley Fool Australia owns shares of and has recommended Challenger 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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  • 3 ASX 200 shares to add to your watchlist in 2020

    assortment of office stationery and folders with label saying game changer, investment opportunity

    ASX 200 shares had yet another day of gains on Wednesday as the S&P/ASX 200 Index (ASX: XJO) closed 0.06% higher at 6,148.40 points.

    There was a mix of winners and losers on the share market yesterday from tech shares to gold miners and Aussie retailers. 

    Despite the market noise, there are still a couple of ASX 200 shares that I’m keeping my eye on right now. Check out why these top picks are on my watchlist below.

    3 ASX 200 shares I’m watching in 2020

    The first Aussie share that I’m watching is JB Hi-Fi Limited (ASX: JBH). JB Hi-Fi shares are up 11.49% this year and have delivered strongly for shareholders.

    That’s despite the February and March bear market that sent ASX 200 shares plummeting lower.

    JB Hi-Fi has really benefitted from a strong online presence and its extensive electronics range. More Aussies have been stocking up on laptops, monitors and other accessories in the move towards a work from home model.

    It’s not just JB Hi-Fi shares that have been climbing in 2020. The NextDC Ltd (ASX: NXT) share price has rocketed 34.95% this year as demand for its services has surged.

    NextDC owns and operates data centres around Australia and recently expanded its balance sheet with a $672 million equity raising.

    While a 34.95% gain doesn’t scream a buy to most investors, I believe NextDC still has some strong growth potential with a good strategy and clear expansion steps.

    One ASX 200 share to watch that hasn’t climbed higher this year is BHP Group Ltd (ASX: BHP). Shares in the Aussie miner are down 3.65% but have some strong momentum behind them.

    With iron ore prices rebounding strongly at the moment, I think the BHP share price is worth watching in 2020.

    Foolish takeaway

    These are just a few of the ASX 200 shares I’ve got my eye on right now. The share market volatility seems to have partially subsided since March and April.

    This means right now could present a good opportunity to assess the real value of some of these companies without market noise.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *  Extreme Opportunities returns as of June 5th 2020

    More reading

    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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  • Where to invest $500 into ASX shares right now

    Money

    If you’re new to investing, it is quite likely that you will not have considerable funds to put into the share market.

    But I wouldn’t let that put you off starting your investment journey. After all, even an annual investment of $500 has the potential to grow into something meaningful over a long enough period of time.

    For example, if you were to invest $500 into the share market each year for 30 years and earned an average annual return of 10%, your investments would grow to be worth over $90,000 at the end of the period.

    I think this demonstrates how rewarding long term investing can be even when investing relatively small sums.

    With that in mind, here are three top ASX shares that I think could be great options for that first $500 investment:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first option to consider buying with $500 is the BetaShares Asia Technology Tigers ETF. I’m a big fan of this exchange traded fund due to the collection of exciting tech shares which it gives investors exposure to. These companies are revolutionising the lives of billions of people in Asia and look very well-positioned for growth over the next decade and beyond. These include ecommerce giants Alibaba and JD.com, search engine company Baidu, electronics giant Samsung, and WeChat owner Tencent.

    Nanosonics Ltd (ASX: NAN)

    Another ASX share to consider buying with $500 is Nanosonics. It is an infection control specialist which currently generates its revenue from the trophon EPR disinfection system for ultrasound probes. This system has a massive market opportunity and could alone drive strong earnings growth over the next decade. However, it will soon be joined by a number of secretive products targeting other unmet needs. These products are also understood to have similar market opportunities. If they are a success, then they could take Nanosonics’ growth to the next level this decade

    Pushpay Holdings Ltd (ASX: PPH)

    A final ASX share to consider investing $500 into is Pushpay. It is a quick-growing provider of donor and church management software. Demand for its offering has been increasing very strongly over the last few years and particularly in FY 2020. This led to Pushpay recording a 33% increase in operating revenue to US$127.5 million this year. The good news is that the company still has a significant runway for growth. Management is aiming to capture a 50% share of the medium to large church market in the future. It estimates this to be a US$1 billion revenue opportunity. This is almost 8 times greater than its FY 2020 revenue.

    And if you have some funds leftover, these five recommendations below look like potential market beaters…

    5 ASX stocks under $5

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

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

    *  Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Nanosonics Limited and PUSHPAY FPO NZX. 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 Where to invest $500 into ASX shares right now appeared first on Motley Fool Australia.

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  • My share investing journey during the pandemic

    Man in suit considering the devil on his shoulder

    I tend to concentrate my investing in a few shares and mostly diversify if I see opportunities in sectors which I am not currently in. During the coronavirus pandemic, it was hard to stay focussed as there were value opportunities everywhere. Below I’ll detail some of the shares I recently bought and sold.

    Mining share investing

    Fortescue Metals Group Limited (ASX: FMG) has long been a cornerstone of my portfolio. I bought into the company at a very low price compared to today. During the pandemic, I purchased more Fortescue shares at a price of $8.80 per share. At the close of business last week I had made around 64%. 

    Fortescue is a local company for me. I like the “can-do” attitude, the use of local supply chains, and the year-on-year performance increases. Most of all, I really like the dividend.

    I owned Bellevue Gold Ltd (ASX: BGL) before the pandemic, sold it to take profits, and then I have recently bought back in. Knowing what I know now, I would not have sold when I did. However, in March the whole world looked a lot more bleak and uncertain than it does now. 

    In my view, Bellevue is a great opportunity for growth. It is developing a high-grade, high-ounce ore body. It has pre-existing infrastructure to reduce the costs of ramp-up. And it is employing many of the professionals who have done similar during the last decade with Northern Star Resources Ltd (ASX: NST).

    Financial sector

    I sold Westpac Banking Corp (ASX: WBC) for a significant loss during the lockdown period. My initial position was part of a turnaround strategy which I expected to be executed by September or so of this year. The share price had dropped due to the money laundering scandal.

    However, once the pandemic hit, the situation changed immediately. It became clear that holding the Westpac shares was a lost opportunity for me. I am sure the Westpac share price will lift significantly. However, for me, there are more profitable ways to put capital to work in the short term.

    Recently I also started a position in Sezzle Inc (ASX: SZL). I had long favoured Zip Co Ltd (ASX: Z1P) as a likely challenger to Afterpay Ltd (ASX: APT). Yet I decided Sezzle already had a good head-start among the Gen Z demographic in the $5 trillion US retail market. Sezzle is up around 20% for me so far. 

    Foolish takeaway

    As somebody approaching retirement years, yet, with no intention to ever retire, I use a higher-risk strategy than most.

    My foundation is in solid income-producing shares, preferably those that will also increase in value. This is backed with a significant share investment in growth companies at a good price. Lastly, I work a lot on finding and exploiting share market events.

    Most times, it has gone well. Sometimes it goes badly. When it goes badly there is no point in wasting time with regrets. Just pick yourself up, learn from the mistake, and put your capital back to work. 

    If you are investing later in life then the dirt cheap shares in the report below may be of interest.

    5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)

    Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.

    Given how far some of them have fallen, the upside potential could be enormous.

    The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.

    But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.

    See the 5 stocks

    More reading

    Daryl Mather owns shares of Bellevue Gold Ltd, Fortescue Metals Group Limited, and Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 ASX shares to buy now with $10,000

    Businessman paying Australian money, ASX shares

    Deciding which ASX shares to buy in the current climate is difficult. During the bull markets you wonder if you have missed the boat. When the bear markets set in, and they will, you wonder if you should cut your losses. 

    I believe the 4 shares below represent good value investments in today’s market. They should be solid investments over the medium term regardless of what happens tomorrow. In particular, I think one of them has the real possibility of becoming a 10 bagger share over the next decade. That is, a company likely to return 10 times the initial investment.

    High blue chip value

    I think that Commonwealth Bank of Australia (ASX: CBA) is probably the best certified blue chip share at the moment. Having put aside $1.5 billion for costs related to COVID-19, CommBank has been moving fast to position the bank for future growth. Although, as the nation’s largest mortgage provider, it is likely to see larger impacts from COVID-19 than its competitors.

    At the time of writing, CommBank has a 12-month trailing dividend yield of ~6%, although banks have currently deferred dividends, and is selling at a price to earnings ratio (P/E) of ~13.

    Overlooked ASX value share to buy now

    I believe Aristocrat Leisure Limited (ASX: ALL) is probably the most overlooked ASX large cap share on the market. It has a fantastic track record of year on year sales growth, maintains very tight margins, and has a 10-year average return on equity (ROE) of 28.6%.

    Despite the company’s exposure to digital gaming and social media platforms, its casino revenue streams have been hit hard by COVID-19 restrictions. As restrictions ease, I think Aristocrat will see its share price rise relatively quickly. 

    The Aristocrat share price is currently trading at a P/E of just 10.8. That is way below its 10 year average P/E of 23.

    One great ASX growth share

    Over the past fortnight Sezzle Inc (ASX: SZL) caught my eye. So much so that I have taken a small position in the company. This is a small buy now, pay later company competing head on with the giant Afterpay Ltd (ASX: APT).  The company has a market cap of just $275 million, yet it has already secured a network of 1.3 million users and 14.9 thousand merchants. 

    While much larger rivals Afterpay and Zip Co Ltd (ASX: Z1P) are actively working to enter the $5 trillion US retail market, Sezzle is already there targeting Gen Z and Millennials. While Sezzle is unlikely to suddenly become the market leader, I believe the potential for share price growth is high and the possibility of it becoming a 10-bagger over the next decade very real.

    Foolish takeaway

    I think these are among the best value ASX shares to buy now. Personally, I would split 40% of $10,000 into each of the large cap shares, and the remaining 20% into the higher risk growth share. I believe all of these companies have a very strong value proposition right now. But the market is moving fast.

    For more cheap shares likely to grow quickly, download our free report!

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

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    Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 ASX shares to buy now with $10,000 appeared first on Motley Fool Australia.

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  • Nasdaq Tops 10,000 on Tesla Surge; Starbucks Cools Off

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    concept for Tesla's semi electric commercial truck

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    The stock market once again told a tale of two exchanges on Wednesday. The Nasdaq Composite (NASDAQINDEX: ^IXIC) had another great day, rising almost 1% and closing above 10,000 for the first time in its history. The Nasdaq 100 index did even better, gaining almost 1.5% and also climbing over the 10,000 hurdle. Yet elsewhere, market measures like the Dow and S&P 500 finished lower on the day, held back by fears about the Federal Reserve’s need to provide further monetary stimulus to try to shore up the broader economy.

    Leading the Nasdaq higher on its historic day was Tesla (NASDAQ: TSLA), which celebrated a share-price milestone of its own. However, not every stock on the Nasdaq gained ground, and Starbucks (NASDAQ: SBUX) in particular revealed some challenges that could hold back the coffee stock for a while.

    Tesla gets into high gear

    Tesla stock finished higher by 9%, soaring above $1,000 per share for the first time ever. The electric vehicle maker has high hopes that it’s only scratched the surface of its addressable market, and future products could dramatically expand its opportunities for further growth.

    CEO Elon Musk helped fan excitement about Tesla by talking about the prospects for its Semi electric commercial truck. Even though the semi tractor-trailer truck concept has been part of Tesla’s plans since late 2017, the company has prioritized other efforts first, most notably the Model 3 mass-market sedan. However, Musk reportedly reset those priorities recently, signaling that he wants to move forward more aggressively in bringing the Semi to market faster.

    It’s probably not a coincidence that the move comes just after newly public electric truck specialist Nikola (NASDAQ: NKLA) has promoted its own ambitions in serving the commercial truck market. With Nikola’s Badger electric pickup likely to go up against Tesla’s Cybertruck, investors are likely to see plenty of clashes between the two EV automakers. At least today, Tesla won the share-price battle, and investors have high expectations that Musk will lead his team to greater innovations in the future.

    Starbucks slows down, faces big losses

    Elsewhere, shares of Starbucks dropped 4%. The coffee giant revealed in a filing with the U.S. Securities and Exchange Commission just how much the coronavirus pandemic has affected its business, and it showed some of the strategies it’s looking to follow to get back on track.

    Starbucks expects to report a fiscal third-quarter adjusted loss of $0.55 to $0.70 per share, with the pandemic costing the company between $3 billion and $3.2 billion in revenue. Comparable store sales in the U.S. were down 28% in May from year-ago levels.

    The coffee giant is also modifying its expansion plans. In China, the company expects to add at least 500 new stores for fiscal 2020, even with pandemic-related setbacks. However, Starbucks now sees itself opening just 100 new stores in the second half of the fiscal year, and it will close as many as 400 company-owned locations in the next 18 months in order to replace them with new store formats in different places. The idea is to offer ways to meet changing customer expectations, with new retail-oriented stores that won’t necessarily offer the typical Starbucks “third place” ambiance.

    Investors can look forward to better results later in the year, with Starbucks projecting a fiscal fourth-quarter adjusted profit of $0.15 to $0.40 per share. Nevertheless, the full-year projection of just $0.55 to $0.95 in adjusted earnings per share threw a cup of cold coffee in investors’ faces, and shareholders have to hope that Starbucks’ strategic efforts bear fruit quickly.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    3 "Double Down" stocks to ride the bull market higher

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has identified three stocks he thinks can ride the bull market even higher, potentially supercharging your wealth in 2020 and beyond.

    Doc Mahanti likes them so much he has issued “double down” buy alerts on all three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

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    Dan Caplinger owns shares of Starbucks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla and Starbucks. 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 Nasdaq Tops 10,000 on Tesla Surge; Starbucks Cools Off appeared first on Motley Fool Australia.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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