Stock Pick

  • The copyright lawsuits against OpenAI are piling up as the tech company seeks data to train its AI

    A cellphone showing the OpenAI logo and a block of nondescript text.
    OpenAI is facing several lawsuits over copyrighted material used to train ChatGPT.

    CFOTO/Getty Images

    • Publishers want compensation from OpenAI for using their works to train AI models.
    • The Center for Investigative Reporting filed a lawsuit against the company this week.
    • The New York Times and other outlets also have similar lawsuits against OpenAI.

    OpenAI uses any and all publicly available data to train ChatGPT, including books and articles from the internet. Now, those who own them want to be paid for their work.

    Training data is an essential part of creating the AI models that are taking over the tech world. Leading tech companies like Google, Meta, OpenAI, Anthropic, and Microsoft are all scrambling to find new sources of data. Meta at one point even considered buying Simon & Schuster, one of the world's biggest publishing houses.

    Part of the problem is that publishers are increasingly accusing these companies of hoovering up copyrighted data. They'd like to be paid for their work. Meta and OpenAI have argued in comments to the US Copyright Office that putting copyrighted material on the internet makes it "publicly available" and thus under fair use.

    But they'll still have to make that argument in court as the company faces lawsuits from several groups over the copyrighted material.

    The Center for Investigative Reporting, a news nonprofit known sometimes by its acronym CIR and which merged with Mother Jones and Reveal earlier this year, sued OpenAI and Microsoft last week in federal court. The lawsuit accuses OpenAI of being "built on the exploitation of copyrighted works belonging to creators around the world, including CIR."

    Lawyers for the CIR accused OpenAI and Microsoft of using copyrighted material from Mother Jones to train their GPT and Copilot AI models.

    "OpenAI and Microsoft started vacuuming up our stories to make their product more powerful, but they never asked for permission or offered compensation, unlike other organizations that license our material," Monika Bauerlein, CEO of the Center for Investigative Reporting, said in an announcement about the lawsuit. "This free rider behavior is not only unfair, it is a violation of copyright."

    The lawsuit says that "16,793 distinct URLs from Mother Jones's web domain" appeared in a published list of the top web domains present in the company's WebText training set.

    In another class action lawsuit from the Author's Guild, two authors claimed that the company used information from their books to train ChatGPT. The New York Times also filed a similar lawsuit against the company in December 2023.

    In May, court documents in the Author's Guild lawsuit revealed that OpenAI deleted two huge datasets used to train GPT-3. Lawyers for the guild said the two sets likely contained "more than 100,000 published books."

    The two employees responsible for putting together the data no longer work for OpenAI, court documents say.

    OpenAI has begun signing licensing agreements with news organizations to fairly use their work. The company has signed such agreements with The Associated Press, publishers of The Wall Street Journal and New York Post, The Atlantic, Prisa Media, Le Monde newspaper, Financial Times, and Business Insider parent Axel Springer.

    But the scale of content required for these bots to continuously learn will require far more than a handful of licensing agreements.

    One solution is synthetic data, which is artificially generated rather than collected from the real world, and can easily be generated by machine learning algorithms.

    OpenAI has considered synthetic data as an option to train its models, but CEO Sam Altman has raised concerns about producing quality data.

    "As long as you can get over the synthetic data event horizon, where the model is smart enough to make good synthetic data, everything will be fine," Altman said at a tech conference in May 2023. The company has also explored a process in which AI models work together — one AI system produces data, while another judges it.

    OpenAI did not immediately return a request for comment from Business Insider.

    Read the original article on Business Insider

  • Buy this ASX 200 stock for 20% upside and a 6% dividend yield

    A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

    Investors that are on the lookout for big gains and a generous dividend yield may want to check out the ASX 200 stock in this article.

    That’s because analysts at Bell Potter think this dividend-payer could be undervalued by the market.

    Which ASX 200 stock?

    The stock in question is Inghams Group Ltd (ASX: ING). It is the largest integrated poultry producer across Australia and New Zealand.

    According to the note, the broker has been looking at industry data and feels it is supportive of its forecasts and its bullish view.

    In respect to feed cost indicators, the broker said:

    Since our Mar’24 update feed pricing indicators have been volatile, with a 7-9% firming. In light of ING’s forward purchasing arrangements, we see FY25e feed cost indicators (CY24TD pricing flows into FY25e assumptions) down an implied -12% relative FY24e levels. Note that the spot feed index is broadly consistent with the CY24TD average. With ABARE and CSIRO Wheatcast models favouring an above average yield outcome for the 2024-25 harvest, we would see the reversion to negative basis as a potential tailwind for ING in 2H25-1H26e.

    Together with other factors, Bell Potter has trimmed its profit forecast for this year but boosted its medium term estimates. It explains:

    We have reviewed our forecasts and updated them for channel mix, feed cost indicators, FX, interest rate movements and inflation data in ING core markets. The net impact is NPATL changes of -3% in FY24e, unchanged in FY25e and +4% in FY26e.

    Big returns

    In light of the above, Bell Potter has retained its buy rating and $4.35 price target on the ASX 200 stock.

    Based on its current share price of $3.62, this implies potential upside of 20% for investors over the next 12 months.

    In addition, the broker is forecasting fully franked dividends per share of 23 cents in FY 2024 and 24 cents in FY 2025. This equates to 6.35% and 6.6% dividend yields, respectively.

    Bell Potter believes recent avian flu related share price weakness has created a buying opportunity. It said:

    The ING share price has retraced ~10% following the discovery of avian flu in the Golden Plains and in NSW. While it may serve as a reminder of the inherent agricultural risks facing free range operations it has at this time had no impact on the ING business. We see the current weakness as a buying opportunity, noting similar bio risks in the almond industry (varroa mite) has had limited lasting impact on SHV. Feed cost indicators remain lower than a year ago and if 2024-25 crops develop as projected then this will likely emerge as a key earnings driver in 2H25-1H26e.

    The post Buy this ASX 200 stock for 20% upside and a 6% dividend yield appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Inghams Group Limited right now?

    Before you buy Inghams Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Inghams Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • These are the 10 most shorted ASX shares

    Close up of a sad young woman reading about declining share price on her phone.

    At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Pilbara Minerals Ltd (ASX: PLS) is still the most shorted ASX share with short interest of 20.7%. This is down slightly week on week. Short sellers appear to believe that lithium prices will remain at low levels for years.
    • IDP Education Ltd (ASX: IEL) has 13.3% of its shares held short, which is down slightly week on week. This language testing and student placement company has warned that student visa changes in a number of key markets are going to weigh on its near term performance.
    • Liontown Resources Ltd (ASX: LTR) has 11.4% of its share held short, which is up week on week again. This lithium developer’s shares lost almost 70% of their value in FY24. Short sellers appear to believe they can fall further.
    • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound to 10.3%. Concerns over weak consumer spending and revenue margin headwinds could be behind this.
    • Sayona Mining Ltd (ASX: SYA) has short interest of 9.9%, which is up since last week. This lithium miner is currently paying more to produce lithium than it receives from buyers.
    • Syrah Resources Ltd (ASX: SYR) has short interest of 9.7%, which is down week on week. This graphite miner is currently battling production suspensions and further cash burn due to weak battery material prices.
    • Chalice Mining Ltd (ASX: CHN) has short interest of 9.7%, which is up week on week. Short sellers aren’t letting up on this mineral exploration company’s shares despite them being down almost 80% over the last 12 months.
    • Westgold Resources Ltd (ASX: WGX) has short interest of 9.3%, which is down sharply week on week. This short interest may be due to doubts over the gold miner’s proposed merger with Canada-based Karoa Resources.
    • Australian Clinical Labs Ltd (ASX: ACL) has short interest of 9.2%, which is up since last week. This health imaging company warned that is expecting to report another sizeable decline in profits in FY 2024.
    • Lynas Rare Earths Ltd (ASX: LYC) is a new entry in the top ten with short interest of 8.5%. Weak rare earths prices are likely to be why short sellers are targeting the miner.

    The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Australian Clinical Labs Limited right now?

    Before you buy Australian Clinical Labs Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Clinical Labs Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • The far-right has taken another step toward power in France’s elections

    Marine Le Pen
    Marine Le Pen at Le Dôme de Paris.

    Artur Widak/NurPhoto via Getty Images

    • The far-right scored a major win in the first round of parliamentary elections in France.
    • Marine Le Pen's National Rally won roughly 34% of the vote, per projections.
    • President Emmanuel Macron called for a snap election in early June in what was a huge gamble.

    The far-right National Rally has opened up a lead in the first round of critical parliamentary elections in France, with results that could soon spell the end of the centrist government alliance backed by French President Emmanuel Macron.

    Projections in Sunday's first round showed that Marine Le Pen's National Rally had secured 34% of the national vote, followed by a roughly 29% share for the leftist alliance New Popular Front and 20% for Macron's Together alliance.

    The second round of voting will be held on July 7.

    The parties are competing for 577 seats in the National Assembly, the lower house of the French parliament.

    After the initial first-round results, Le Pen told supporters it was important to earn a majority vote in the second round — a feat that could usher in National Rally president Jordan Bardella as France's prime minister.

    Macron called for a snap election earlier this month after Le Pen's party scored major wins in the European parliamentary elections.

    The move by the French president was seen as a major gamble as there were only three weeks to campaign. He recently sought to warn voters of what he said were the perils of potential far-right or far-left governments.

    "When you are fed up with everything, when daily life is hard, you can be tempted by extremes that have quicker solutions," Macron said during a recent interview on the podcast "Generation Do It Yourself."

    "But the solution will never lie in rejecting others," he added.

    Macron defeated Le Pen in both the 2017 and 2022 French presidential elections. However, while Le Pen only won 34% of the national vote share in the first election, she made substantial gains two years ago and captured more than 41% of the national vote amid growing dissatisfaction with Macron's leadership.

    Should the National Rally perform strongly in the second round of this year's parliamentary elections, it could give France its first far-right government since World War II.

    Read the original article on Business Insider

  • Buy Rio Tinto and these ASX dividend shares in July

    Smiling man sits in front of a graph on computer while using his mobile phone.

    Fortunately for income investors, there are plenty of ASX dividend shares for them to choose from on the Australian share market.

    But which ones could be top options for investors in July?

    Let’s take a look at four top dividend shares that analysts are tipping as buys. They are as follows:

    APA Group (ASX: APA)

    APA Group could be an ASX dividend share to buy. It is an energy infrastructure company that owns, manages, and operates a portfolio of gas, electricity, solar and wind assets.

    Macquarie sees its shares as a buy. The broker currently has an outperform rating and $9.40 price target on them.

    As for dividends, the broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $7.99, this equates to 7% and 7.2% dividend yields, respectively.

    Charter Hall Retail REIT (ASX: CQR)

    Citi thinks that the Charter Hall Retail REIT could be an ASX dividend share to buy. It is a property company focusing on supermarket-anchored neighbourhood and sub-regional shopping centres.

    The broker has a buy rating and $4.00 price target on its shares.

    Citi expects inflation-linked rental increases to underpin dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.25, this will mean very large yields of 8.6%.

    Rio Tinto Ltd (ASX: RIO)

    Analysts at Goldman Sachs think Rio Tinto could be a top option for income investors. It likes the mining giant due to its “compelling relative valuation” and its forecast for “strong production growth in 2024 & 2025.”

    The broker has a buy rating and $138.90 price target on the miner’s shares.

    Goldman expects fully franked dividends per share of US$4.29 (A$6.41) in FY 2024 and then US$4.55 (A$6.80) in FY 2025. Based on the latest Rio Tinto share price of $119.00, this will mean yields of approximately 5.4% and 5.7%, respectively.

    Universal Store Holdings Ltd (ASX: UNI)

    A final ASX dividend share that could be a buy in July is youth fashion retailer Universal Store.

    Bell Potter is feeling bullish about the company and recently put a buy rating and $6.15 price target on its shares.

    It is forecasting fully franked dividends per share of 24 cents in FY 2024 and then 31 cents in FY 2025. Based on its current share price of $4.97, this will mean yields of 4.8% and 6.2%, respectively.

    The post Buy Rio Tinto and these ASX dividend shares in July appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Apa Group right now?

    Before you buy Apa Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Apa Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Monday

    Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a relatively positive note. The benchmark index rose 0.1% to 7,767.5 points.

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

    ASX 200 expected to fall

    The Australian share market looks set to fall on Monday following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.45% lower. In the United States, the Dow Jones was down 0.1%, the S&P 500 was 0.4% lower, and the Nasdaq dropped 0.7%.

    Oil prices soften

    It looks like ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.25% to US$81.54 a barrel and the Brent crude oil price was down 0.3% to US$85.00 a barrel. This couldn’t stop US crude oil from recording its third weekly gain amid rising tensions in the Middle East.

    Buy TechnologyOne shares

    Goldman Sachs thinks that TechnologyOne Ltd (ASX: TNE) shares are in the buy zone right now. After looking at the enterprise software provider’s opportunity in the UK market, the broker has reiterated its buy rating with an improved price target of $19.70 (from $18.85). It said: “The UK addressable market is 2-3x ANZ, with minimal current penetration (<1% wallet share) and a similar competitive dynamic to ANZ, creating a significant long-term growth runway for TNE.”

    Gold price edges higher

    It could be a relatively positive start to the week for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher on Friday. According to CNBC, the spot gold price was up 0.1% to US$2,339.6 an ounce. This was driven by rate cut optimism after US inflation came in as expected.

    IGO’s lithium dividend

    IGO Ltd (ASX: IGO) shares will be on watch today after the battery materials miner released an update on its lithium business. According to the release, the company has received $159.3 million in dividend payments from Tianqi Lithium Energy Australia (TLEA) for the June 2024 quarter. This brings total dividends received from TLEA during FY 2024 to $761.4 million. IGO CEO, Ivan Vella, commented: “The substantial dividend IGO has received from TLEA during FY24, during a period of heightened market volatility and complexity, is testament to the value our lithium business can generate through the cycle.”

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

    Should you invest $1,000 in Igo Ltd right now?

    Before you buy Igo Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Igo Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has positions in Technology One and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • It’s dangerously easy to ‘jailbreak’ AI models so they’ll tell you how to build Molotov cocktails, or worse

    cyberattack malware
    Skeleton Key can get many AI models to divulge their darkest secrets.

    REUTERS/Kacper Pempel/Illustration/File Photo

    • A jailbreaking method called Skeleton Key can prompt AI models to reveal harmful information.
    • The technique bypasses safety guardrails in models like Meta's Llama3 and OpenAI GPT 3.5.
    • Microsoft advises adding extra guardrails and monitoring AI systems to counteract Skeleton Key.

    It doesn't take much for a large language model to give you the recipe for all kinds of dangerous things.

    With a jailbreaking technique called "Skeleton Key," users can persuade models like Meta's Llama3, Google's Gemini Pro, and OpenAI's GPT 3.5 to give them the recipe for a rudimentary fire bomb, or worse, according to a blog post from Microsoft Azure's chief technology officer, Mark Russinovich.

    The technique works through a multi-step strategy that forces a model to ignore its guardrails, Russinovich wrote. Guardrails are safety mechanisms that help AI models discern malicious requests from benign ones.

    "Like all jailbreaks," Skeleton Key works by "narrowing the gap between what the model is capable of doing (given the user credentials, etc.) and what it is willing to do," Russinovich wrote.

    But it's more destructive than other jailbreak techniques that can only solicit information from AI models "indirectly or with encodings." Instead, Skeleton Key can force AI models to divulge information about topics ranging from explosives to bioweapons to self-harm through simple natural language prompts. These outputs often reveal the full extent of a model's knowledge on any given topic.

    Microsoft tested Skeleton Key on several models and found that it worked on Meta Llama3, Google Gemini Pro, OpenAI GPT 3.5 Turbo, OpenAI GPT 4o, Mistral Large, Anthropic Claude 3 Opus, and Cohere Commander R Plus. The only model that exhibited some resistance was OpenAI's GPT-4.

    Russinovich said Microsoft has made some software updates to mitigate Skeleton Key's impact on its own large language models, including its Copilot AI Assistants.

    But his general advice to companies building AI systems is to design them with additional guardrails. He also noted that they should monitor inputs and outputs to their systems and implement checks to detect abusive content.

    Read the original article on Business Insider

  • Robert Kraft donates $1 million to Yeshiva University to help Jewish transfer students after axing support for Columbia University

    People walk by the campus of Yeshiva University in New York City on August 30, 2022
    Patriot's owner Robert Kraft donated $1 million to Yeshiva University.

    Spencer Platt/Getty Images

    • Billionaire Robert Kraft donated $1 million to Yeshiva University for a new program.
    • The program "will help accommodate transferring Jewish students," the university said.
    • Kraft withdrew support for Columbia University after campus protests against the Israel-Hamas war.

    Robert Kraft, the billionaire owner of the New England Patriots, donated $1 million to Yeshiva University to establish a program for Jewish transfer students after yanking his support from Columbia University.

    Yeshiva University, a private Orthodox Jewish institution in New York City, said in a press release that the Blue Square Scholars program "will help the University accommodate transferring students who are switching to YU for its quality education and nurturing campus atmosphere."

    The university earlier said it had seen an increase in enrollment since the start of the conflict in Gaza, which has divided universities across the country.

    "In the aftermath of October 7th, YU has been at the forefront of universities fighting the rise of antisemitism on college campuses across the country and has opened its doors to transfer students who feel unsafe on their current campuses," the university said.

    Robert Kraft
    Robert Kraft said he is "honored" to establish the Blue Square Scholars program at Yeshiva University.

    Getty Images

    The press release said Kraft's donation would aid the university's efforts to help Jewish students grappling with antisemitism. Kraft founded the Foundation to Combat Antisemitism in 2019.

    "I am honored to establish the Blue Square Scholars program at Yeshiva University in order to give students a welcoming place to further their education and grow into leaders who will serve as advocates for unity and respect and will push back on all hate," Kraft said in a statement.

    Representatives for Yeshiva University and Kraft did not respond to a request for comment from Business Insider.

    Kraft's $1 million donation comes two months after he severed ties with Columbia University, his alma mater.

    Protesters outside Hamilton Hall at Columbia University
    Protesters outside Hamilton Hall at Columbia University in New York City.

    Selcuk Acar/Anadolu/Getty Images

    Kraft had been a reliable megadonor for Columbia University but criticized the school after campus protests broke out in April. Pro-Palestinian supporters held demonstrations calling for a cease-fire and demanding the school divest from Israel and any companies doing business in the country.

    In a full-page ad in May, Kraft accused elite universities of causing "hate" on campuses. "The leadership and faculty of so many of our leading educational institutions have failed their students," he wrote.

    Other universities, like Harvard, have also faced the ire of Jewish megadonors over student protests against the war.

    Islamophobia, meanwhile, also increased on college campuses in the wake of the war.

    Despite his criticisms, Kraft told CNN he will still support The Kraft Center for Jewish Student Life at Columbia University.

    Read the original article on Business Insider

  • Top ASX shares to buy in July 2024

    Multi-ethnic people looking at camera sitting at public place screaming, shouting and feeling overjoyed about their windfall, good news or sports victory.

    Happy new financial year!

    If, like many investors, you took the end of FY24 as an opportunity to shake up your ASX share portfolio, you may now be looking to fill some holes in it.

    Whether you cashed in some gains, offloaded a loser or two, or are simply looking to further diversify, right now could be the perfect time to usher in a few new investments.

    We asked our Foolish writers which ASX shares they think deserve pride of place in your portfolio in FY25 and beyond.

    Here is what they came up with:

    7 best ASX shares for July 2024 (smallest to largest)

    • Betashares Global Uranium ETF (ASX: URNM), $130.96 million
    • Step One Clothing Ltd (ASX: STP), $253.92 million
    • PWR Holdings Ltd (ASX: PWH), $1.10 billion
    • Corporate Travel Management Ltd (ASX: CTD), $1.94 billion
    • Betashares Nasdaq 100 ETF (ASX: NDQ), $4.95 billion
    • Transurban Group (ASX: TCL), $38.34 billion
    • ResMed Inc (ASX: RMD), $42.75 billion

    (Market capitalisations as of market close 28 June 2024).

    Why our Foolish writers love these ASX stocks

    Betashares Global Uranium ETF

    What it does: URNM is intended to track the performance of a basket of Australian and international uranium miners. The ETF provides instant diversification with exposure to 38 leading uranium producers across the globe.

    By Bernd Struben: I believe the nuclear renaissance sweeping across the world is still in its early days. If that proves true, then this uranium-focused ASX ETF is well-placed for long-term outperformance.

    Aussie investors will recognise two of URNM’s top 10 holdings: Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE).

    Over the past 12 months, the Betashares Global Uranium ETF has gained more than 54%. With shares having slipped 15% since late May, this could be an opportune entry point. The ETF paid out 40 cents per share in unfranked dividends in 2023.

    Furthermore, it was only in December that 22 nations – including the United States, Japan, and France – pledged to triple their nuclear power capacity by 2050. And the US Government recently said it would invest up to US$900 million to accelerate the development of nuclear energy.

    As with most commodities, it takes a lot of time to bring new uranium mines into production. And with demand looking like it will keep rising sharply, I expect uranium supplies will be playing catchup for some years yet.

    Motley Fool contributor Bernd Struben does not own units of the Betashares Global Uranium ETF.

    Step One Clothing Ltd

    What it does: Step One Clothing is a direct-to-consumer online retailer of underwear. According to the company, it offers “high quality, organically grown and certified, sustainable, and ethically manufactured innerwear”. It has a presence in Australia, the United Kingdom, and the United States.

    By Tristan Harrison: The Step One Clothing share price has dropped by around 25% since 12 April 2024, making it look pretty cheap to me.

    The business is gaining traction across its core markets – in the FY24 first-half period, total revenue rose 25.5% to $45 million, with 8.9% growth in Australia, 38% growth in the UK, and 256% growth in the US.

    The HY24 result also delivered rising profit margins, which is a great sign for future profit growth as revenue builds. The company’s gross profit margin increased 0.5 percentage points to 81.2% and its earnings before interest, tax, depreciation, and amortisation (EBITDA) margin increased 1.7 percentage points to 22.5%. Net profit after tax (NPAT) rose by 34.7% to $7.1 million.

    If Step One can grow its presence in the UK and the US, including expanding the distribution of its women’s lines, then I think the company’s future is very bright.

    According to Commsec estimates, the Step One share price is valued at 21x FY25’s estimated earnings and it could pay a grossed-up dividend yield of 6.6% in that year. 

    Motley Fool contributor Tristan Harrison does not own shares of Step One Clothing Ltd. 

    PWR Holdings Ltd

    What it does: PWR Holdings is a leading provider of advanced cooling solutions for motorsports and automotive industries worldwide.

    By Kate Lee: PWR Holdings ticks many boxes for me, as I recently covered here. 

    It is a global market leader in cooling systems, initially recognised for supporting Formula 1 racing teams, but its expertise extends far beyond motorsports. 

    Notably, its aerospace and defence segment is growing rapidly, contributing 12% of revenue in 1H FY24. 

    Additionally, PWR Holdings is a founder-led company with high insider ownership and superior return on equity (ROE) ratios, consistently above 20%.

    The PWR Holdings share price has dropped 15% from its peak in February, placing its price-to-earnings (P/E) ratio at 34x based on FY25 earnings estimates by S&P Capital IQ. This is at a mid-point of its historical trading range of between 20x and 52x.

    Despite its relatively high multiple, the company offers a robust growth outlook, led by a trustworthy management team, in my view.

    PWR Holdings shares offer a dividend yield of around 1.25% at Friday’s closing price of $10.98.    

    Motley Fool contributor Kate Lee does not own shares of PWR Holdings Ltd. 

    Corporate Travel Management Ltd

    What it does: Founded by Jamie Pherous 30 years ago, Corporate Travel Management has grown into a global travel management solutions provider, serving customers in the United States, Australia, New Zealand, Europe, and Asia.

    By Mitchell Lawler: Corporate Travel Management has all the makings of a great company: it’s founder-led, financially disciplined, and has a large opportunity for further growth. Yet, shares in this profitable business are back to 2016 levels. 

    Corporate Travel has grown its net earnings by 136% since 2016 despite the turbulence caused by COVID-19. Specifically, the travel management company recorded $111.1 million in net profits after tax (NPAT) for the 12 months ended 31 December 2023, recovering from $27.7 million in the prior year.

    As economic weakness weighs, the market has punished Corporate Travel stock this year, down almost 33%. Personally, I see it as a rare chance to build a position in a proven and profitable business with a good margin of safety.

    Motley Fool contributor Mitchell Lawler does not own shares of Corporate Travel Management Ltd.

    Betashares Nasdaq 100 ETF

    What it does: The NDQ ETF tracks the performance of the NASDAQ 100 Index (NASDAQ: NDX) (before fees and expenses). 

    By Bronwyn Allen: The NDQ ETF gives Aussie investors exposure to the 100 largest companies listed on the NASDAQ. The NASDAQ is full of innovation stocks. These are typically global businesses that are leaders in their fields and bring world-changing products and services to the fore. These include the Magnificent Seven stocks of Meta Platforms, Amazon, Apple, Alphabet, Nvidia, Microsoft, and Tesla.

    Secondly, the NDQ ETF is highly complementary for ASX 200 ETF investors because it provides geographical earnings diversification (Fun fact: 50% of earnings are non-US), and its sector composition is the opposite of the ASX 200.

    The NDQ ETF is overweight in tech stocks with very minor exposure to financials and materials, while the ASX 200 is overweight in banking and mining shares. And while past performance is no guarantee of future performance, it’s hard to ignore the 137% NDQ ETF price lift over five years compared to an approximate 16% gain for the ASX 200. 

    Motley Fool contributor Bronwyn Allen does not own units of the Betashares Nasdaq 100 ETF.

    Transurban Group

    What it does: Transurban is the ASX’s largest toll road stock, operating several arterial tolled routes across Brisbane, Melbourne, and Sydney.

    By Sebastian Bowen: In these uncertain times, I’m increasingly looking for stability and defensiveness in my ASX share portfolio. With that in mind, few companies fit the bill better than toll-road operator Transurban.

    If you’ve ever driven in Sydney, Melbourne, or Brisbane and paid a toll, chances are you’ve been a Transurban customer. Traffic volumes tend to be highly stable and predictable, which in turn makes the earnings (and dividends) of this company relatively easy to anticipate. 

    What’s more, Tranurban has negotiated very generous contracts for most of its tolled roads. It is often able to raise its tolls every quarter by either the rate of inflation or by an annualised 4%, whichever is higher. 

    That bodes well for any income investor looking for a reliable stream of cash flow from their portfolios. This July, Transurban shares are trading on a dividend yield of close to 5%. As such, this is a stock that I would happily add to my portfolio right now.

    Motley Fool contributor Sebastian Bowen does not own shares of Transurban Group.

    ResMed Inc

    What it does: ResMed is a medical device company that primarily provides cloud-connectable devices for the treatment of sleep apnoea, chronic obstructive pulmonary disease, and other respiratory conditions.

    By James Mickleboro: ResMed shares have been very volatile over the last 12 months. This has been driven by concerns over the emergence of weight loss wonder drugs like Ozempic and Mounjaro. The latter caused a sharp selloff during the final week of June when trial results revealed it was effective at treating sleep apnoea in obese people.

    However, it is worth noting that the strongest results were achieved with a combination of Mounjaro and a continuous positive airway pressure (CPAP) device. In light of this, while weight loss drugs are likely to negatively impact ResMed’s total addressable market (TAM), they are unlikely to be category killers. I think this makes June’s underperformance a great buying opportunity for investors in July.  

    Ord Minnett certainly does, too. Last week, it put a buy rating and a $33.50 price target on RedMed shares.

    Motley Fool contributor James Mickleboro owns shares of ResMed Inc.

    The post Top ASX shares to buy in July 2024 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Corporate Travel Management Limited right now?

    Before you buy Corporate Travel Management Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Corporate Travel Management Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Corporate Travel Management, Meta Platforms, Microsoft, Nvidia, PWR Holdings, ResMed, Tesla, and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Corporate Travel Management, PWR Holdings, and ResMed. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Betashares Global Uranium Etf, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • John Fetterman’s fitness for office was questioned after his 2022 Senate debate. He wants Democrats to ‘chill’ after Biden’s poor performance.

    Fetterman Biden
    President Joe Biden, right, and Pennsylvania Sen. John Fetterman during an event in Philadelphia.

    AP Photo/Manuel Balce Ceneta

    • Sen. John Fetterman leaped to Biden's defense after his poor debate performance last week.
    • "I refuse to join the Democratic vultures on Biden's shoulder after the debate," he wrote on X.
    • Fetterman, who once faced his own bad debate, slammed pundits who said he'd lose in 2022.

    Pennsylvania Sen. John Fetterman has a message for Democrats who want President Joe Biden to step aside following his poor debate performance on Thursday: "Chill."

    For Fetterman, the second-guessing and outright panic from some Democratic quarters toward Biden is reminiscent of the criticism he faced following a rocky 2022 Senate debate against his then-opponent, GOP nominee and celebrity surgeon Dr. Mehmet Oz.

    In a series of remarks following Biden's debate with former President Donald Trump, Fetterman made it known that he disagreed with members of his party who were seeking alternatives to the president.

    "I refuse to join the Democratic vultures on Biden's shoulder after the debate," the senator wrote on X. "No one knows more than me that a rough debate is not the sum total of the person and their record."

    Biden now faces one of the most daunting challenges of his political career as he continues to campaign while reassuring supporters of his fitness for office and resisting pressure from some Democrats who want him to make way for a new, younger nominee.

    Fetterman said that after his 2022 debate, some pundits predicted that he would lose to Oz. The senator was more than happy to point out that not only did he win, but his Senate race was the only one in the country that year where the seat changed parties.

    "What happened?" Fetterman wrote. "The only seat to flip and won by a historic margin (+5). Chill the fuck out."

    During an appearance on "Fox News Sunday," the senator once again compared his situation with Biden's.

    "We had a difficult debate, and yet we still managed to go on to win," he told host Shannon Bream. "One debate is not a career."

    Fetterman's debate took place in October 2022, following a stroke that he suffered in May of that year. The then-candidate's speech patterns were affected by the stroke, and Republicans leaped at the chance to make his health an issue ahead of the general election, questioning whether he had the acuity to serve in the Senate. Some Democrats at the time also wondered why Fetterman agreed to debate Oz at all, concerned that his performance had boosted GOP fortunes.

    After Fetterman began his term in the Senate last year, he took time off to enter the Walter Reed National Military Medical Center, where he was treated for depression. He has spoken openly about the experience and the "downward spiral" that he endured after winning the Senate contest.

    Read the original article on Business Insider