• Manufacturing hotspot Vietnam rolled out the red carpet for Putin, and the US is trying to act cool

    Russia's President Vladimir Putin and Vietnam's President To Lam pose for photos during an official visit at the Presidential Palace in Hanoi, Vietnam June 20, 2024.
    Russia's President Vladimir Putin and Vietnam's President To Lam.

    • Russian President Putin visited Vietnam, where the two countries signed a dozen agreements this week.
    • Vietnam's warm welcome of Putin isn't a good look for the US after Washington and Hanoi elevated ties in 2023.
    • Vietnam's relationship with Russia dates back to the Soviet era and holds sentimental value.

    Wanted by the International Criminal Court, Russian President Vladimir Putin still traveled to Vietnam on a two-day visit, where he was warmly welcomed.

    On Thursday, the Russian leader wrapped up his trip to Vietnam. The two countries inked about a dozen cooperation agreements covering a range of subjects, including education and plans for a nuclear science and technology center.

    Vietnam is not a member of the ICC, so Putin was safe there. Russia and Vietnam also have a long history going back to the Soviet era, so his visit is also not surprising.

    However, Putin's quick trip — which came less than a year after the US upgraded its ties with Vietnam — isn't a good look for Washington or the West, which have imposed sweeping restrictions against Russia over its invasion of Ukraine.

    Vietnam is a strategic partner for US and its allies

    The US is among Vietnam's largest trading partners, accounting for trade worth $111 billion last year. Russia's trade with Vietnam over the same period was just worth $3.6 billion.

    Australia and Japan have also elevated their relationships with Vietnam over the past year, underscoring the Southeast Asian nation's strategic role in a changing geopolitical landscape.

    Putin's visit could jeopardize these newly-forged partnerships because the optics are so stark, wrote Hoang Thi Ha, a senior fellow at the ISEAS–Yusof Ishak Institute in Singapore, on Wednesday.

    Western allies may rethink "Vietnam's reliability as a strategic partner in the region," Hoang wrote.

    "While Vietnam is not directly aiding Russia's war efforts, its warm reception of Putin could be perceived as ending foreign legitimacy to his regime and undermining US-led international efforts to oppose Russia's war in Ukraine," wrote Hoang, who is also a co-coordinator of the Regional Strategic and Political Studies Programme at ISEAS.

    Vietnam is a manufacturing hotspot for many multinational companies diversifying their operations outside China — the world's factory floor for the last 40 years — to diversify their supply chain risks.

    The US is playing it cool — but really isn't

    US Treasury Secretary Janet Yellen played it cool, saying on Thursday that America's elevated relationship with Vietnam doesn't mean Hanoi has to break up with Moscow or Beijing.

    "Vietnam has a policy and strategy of working collaboratively with many different countries, and it is not a condition of our partnership that they sever their ties to Russia or to China," Yellen told a news conference in Atlanta.

    Still, the US embassy in Vietnam issued a sharp criticism of the visit, saying that "no country should give Putin a platform to promote his war of aggression and otherwise allow him to normalize his atrocities."

    Hot on the heels of Putin's trip, Washington is sending Daniel Kritenbrink, the US Assistant Secretary of State for East Asian and Pacific affairs, to Vietnam, the State Department said on Thursday.

    Kritenbrink will meet senior Vietnamese officials on Friday and Saturday to underscore "strong US commitment" to Washington and Hanoi's strategic partnership, said the State Department.

    Hanoi's sentimental attachment to the past influences pragmatism

    While Hanoi has a much-touted "bamboo diplomacy" policy of flexibility and balanced relations with diverse powers, it is still attached to its past.

    This sentimentalism can influence the pragmatism that marked Hanoi's foreign policy for the last two decades, wrote Hoang at the ISEAS–Yusof Ishak Institute.

    It's also a smart political move, as a segment of Vietnamese still holds "a deep fondness for Russia," wrote Hoang.

    "Many still feel nostalgic for the Soviet Union and grateful for its support to Vietnam during the wars against the French and Americans," Hoang added. "Some are extremely enamored with Putin as an anti-Western symbol and a strongman leader, a phenomenon coined locally as 'Putin-mania.'"

    Read the original article on Business Insider
  • $20,000 invested in the ASX MOAT ETF 5 years ago is worth how much?

    Man holding a calculator with Australian dollar notes, symbolising dividends.

    One exchange-traded fund (ETF) that is popular with Australian investors is VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT).

    With almost $1 billion in net assets, a lot of wealth has been put into this fund.

    In fact, that’s more than what is invested in Myer Holdings Ltd (ASX: MYR) and Kogan.com Ltd (ASX: KGN).

    But has it been a good investment? Let’s take a look at what a $20,000 investment five years ago would be worth today.

    What is the ASX MOAT ETF?

    Firstly, let’s take a look at what exactly the VanEck Vectors Morningstar Wide Moat ETF provides investors.

    The fund manager, VanEck, describes the ASX MOAT as an ETF that gives “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.”

    It then notes that the “wide moat ETF aims to provide investment returns before fees and other costs which track the performance of the Index.”

    How are the holdings selected?

    As it mentions above, this ETF puts together a group of ~54 companies with sustainable competitive advantages that are trading at attractive prices.

    These companies will change periodically depending on the status of their competitive advantages or valuation.

    VanEck notes that at each quarterly review, current index constituents that are ranked within the top 150% of the eligible universe based on current market price/fair value ratio are given preference for inclusion in the fund.

    And from the remaining eligible securities, those with the lowest current market price/fair value ratios are included in the index sector cap.

    This has ultimately led to the likes of Google parent Alphabet Inc (NASDAQ: GOOG), automatic test equipment designer Teradyne Inc (NASDAQ: TER), online giant Amazon.com Inc (NASDAQ: AMZN), and Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.B) been included in the fund at present.

    Big returns

    The good news is that the ASX MOAT ETF’s investment focus on sustainable competitive advantages and fair valuations has delivered the goods for investors over the last five years.

    In fact, over this period, the ETF has outperformed the market and delivered mouth-watering returns for investors.

    Since this time in 2019, the ETF has achieved an average total return of approximately 16.4% per annum.

    This means that if you had invested $20,000 into the ASX MOAT ETF five years ago, you would have compounded your way to almost $43,000 today. That’s more than double your original investment.

    The post $20,000 invested in the ASX MOAT ETF 5 years ago is worth how much? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf right now?

    Before you buy Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf 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 Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf 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 5 May 2024

    More reading

    Suzanne Frey, an executive at Alphabet, 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. 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 Alphabet, Amazon, Berkshire Hathaway, and Kogan.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Teradyne. The Motley Fool Australia has recommended Alphabet, Amazon, Berkshire Hathaway, Kogan.com, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Chinese retail giants tried to juice spending with iPhone and Lululemon discounts in an annual shopping bonanza

    618 Mall Promotion in Hangzhou
    An e-commerce anchor sold 618 promotional goods on a live broadcast at a mall in Hangzhou, China, on June 18, 2024.

    • China's 618 shopping festival faced challenges, despite creative strategies to attract shoppers.
    • Alibaba, ByteDance, and JD.com offered large discounts amid an uncertain economic environment.
    • By one measure, 618 sales — a barometer of consumer health — fell nearly 7% year-on-year.

    China's e-commerce platforms worked hard to attract shoppers during the country's annual 618 shopping festival. But economic troubles got in the way of big sales.

    The 618 promotion is a weeks-long event from late May to June 18, during which online platforms launch flash sales. This year saw internet companies like Alibaba, ByteDance, and JD.com offering steep discounts to woo Chinese consumers hit by persistent deflation, youth unemployment, and the property crisis.

    It's is the second-biggest sale after Singles Day, which takes place in November and is likened to Black Friday in the US. The summer shopping festival is seen as a key indicator of China's general retail temperature — and signs so far this year show that consumer spending is still muted.

    In recent weeks, Alibaba offered a 50% discount on Lululemon clothing, JD.com sold some Apple iPhones at discounts as high as 20%, and TikTok's sister company Douyin cut prices aggressively.

    Luxury brands, which are seeing a purchase slowdown in China, joined the festival, too. Burberry livestreamed its 618 discounts, while Louis Vuitton offered shoppers a 30-minute virtual personalized shopping experience on WeChat.

    After the end of 618, Alibaba and JD.com said sales grew, but neither reported specific figures.

    According to figures from Syntun, a Chinese third-party data agency, total sales on Alibaba's Tmall, JD.com, and Pinduoduo fell 6.9% year-on-year. Total sales during the festival were 742.8 billion yuan, or $102.3 billion, the first time sales dropped in the eight years since Syntun started collecting data.

    Home appliances, skincare, cosmetics and perfume, and personal care products were the top three categories in terms of sales, according to the data company.

    The drop comes amid China's slow post-pandemic recovery, as people exercise caution with their discretionary spending. According to a research note from Dutch bank ING published in May, Chinese consumers are cutting spending on clothing, cosmetics, and jewelry and instead choosing to spend their money on experiences like dining and sports. They are also flocking to safe haven investments like gold and supporting local manufacturers, instead of spending on overseas luxury brands like Gucci, Apple, and Starbucks.

    The slowdown may also stem from a plethora of year-round sales and discounts.

    "The promotional period is too long, and all the marketing has gotten confusing," said Constance Zhou, a 31-year-old who told the Financial Times she did not buy anything this year. "The platforms are always doing promotions. Regular shoppers don't have any motivation to participate."

    Read the original article on Business Insider
  • ResMed shares are in a two-month lull. Is this a chance to buy?

    Exhausted young Caucasian woman lying on comfortable sofa in living room sleeping after hard-working day, tired millennial female fall asleep on couch at home, take nap or daydream, fatigue concept

    ResMed CDI (ASX: RMD) shares are trading at $31.94 apiece on Friday, up 0.60% for the day and outpacing the ASX 200, which is up 0.17%.

    ResMed stock is up 25.8% in the year to date but this includes a two-month lull over May and June so far.

    During this period, the share price has been rangebound between about $31 and $33 per share.

    This is well below the 12-month price target of several brokers.

    So it begs the question, are ResMed shares a buy while they are stuck in the doldrums?

    ResMed shares overcome last year’s panicked sell-off

    As the chart above shows, ResMed shares were sold off in the second half of last year.

    The sleep apnoea device maker lost market capitalisation mainly because investors started feeling nervous about the potential impact of GLP-1 drugs like Ozempic on demand for ResMed’s products.

    They feared an impact because GLP-1 drugs are incredibly effective in treating obesity, and this disease is a common precursor to sleep apnoea.

    That fear sent ResMed shares tumbling to a four-year low of $21.14 on 13 October.

    But the stock has rebounded significantly after the company and many brokers educated investors.

    The key messages included that sleep apnoea has many different causes — not just obesity.

    Secondly, the total addressable market (TAM) remains enormous despite any impact GLP-1s might have on rates of obesity worldwide.

    What ResMed told shares investors about GLP-1s

    ResMed CEO Mick Farrell told investors last October that in-house modelling had quantified the impact of GLP-1s on ResMed’s TAM.

    He said GLP-1s may cost the company 200 million people in terms of TAM. However, the total TAM for sleep apnoea worldwide would still be 1.2 billion by 2050 after taking GLP-1s into account.

    At the time, 22.5 million people were using ResMed CPAP machines. Thus, Farrell successfully demonstrated the small proportionality of the GLP-1 risk to ResMed’s business.

    Then in January, Farrell revealed further in-house research that found GLP-1s were actually bringing in more customers for ResMed.

    The research showed a 10% increase in patients on GLP-1s buying sleep apnoea machines.

    This is happening partly because the GLP-1 hype has encouraged people to see their doctor about their obesity for the first time. During these consultations, sleep apnoea has also been identified, leading to more people buying ResMed products.

    Blackwattle Investment Partners reckon ResMed has actually “turned the GLP threat into an opportunity” by raising awareness of the combined healthcare benefits of GLP-1 drugs and CPAP products.

    Brokers say it’s not too late to buy

    Bell Potter has a buy rating on ResMed shares and a 12-month price target of $36. Citi has the same rating and price target. Macquarie has an outperform rating on the stock with a $34.85 price target.

    Based on these targets, ResMed shares have room for 10% to 13% more share price growth.

    Lachlan Hughes, a portfolio manager at Swell Asset Management, says ResMed has “decades of growth ahead as the penetration is low and it’s the number one player in its market”.

    The post ResMed shares are in a two-month lull. Is this a chance to buy? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Resmed Inc. right now?

    Before you buy Resmed Inc. 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 Resmed Inc. 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 5 May 2024

    More reading

    Motley Fool contributor Bronwyn Allen 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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Brokers name 3 ASX shares to buy now

    A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

    It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

    Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

    REA Group Ltd (ASX: REA)

    According to a note out of Citi, its analysts have upgraded this property company’s shares to a buy rating with an improved price target of $221.00. The broker highlights that the company has a dominant position in the largest real estate markets and is able to invest heavily in its products and technology. Citi expects the latter to help underpin strong earnings growth over the medium-to-long term. In addition, it sees potential upside from stronger than expected monetisation of seller and mortgage leads and margin support from its flexible cost base. Overall, the broker is expecting this to lead to earnings ahead of consensus estimates in FY 2025 and FY 2026. The REA Group share price is trading at $194.87 today.

    Treasury Wine Estates Ltd (ASX: TWE)

    A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating on this wine giant’s shares with an improved price target of $15.20. The broker was pleased with the company’s Penfolds update this week. And while it acknowledges that its FY 2025 Penfolds EBITS guidance was ~3.5% below consensus estimates, it believes investors should focus more on the medium term. It highlights that its ~15% CAGR in FY 2026 and FY 2027 EBITS excluding any price increases is strong. It also demonstrates management’s confidence in its execution despite the highly volatile consumer environment. All in all, the broker believes that the building blocks of its EBITS growth to FY 2027 is balanced and of high quality. The Treasury Wine share price is fetching $12.57 on Friday.

    Woolworths Group Ltd (ASX: WOW)

    Analysts at Morgan Stanley have upgraded this supermarket giant’s shares to an overweight rating with an improved price target of $37.00. This follows the release of the results of a major household survey which has made the broker more positive on the supermarket industry. It feels that the survey points to consumer trends that will result in better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the results point to Woolworths being the biggest winner from these trends. As a result, it has elevated the company to be its top industry pick. The Woolworths share price is trading at $33.63 this afternoon.

    The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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

    Before you buy Rea 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 Rea 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 5 May 2024

    More reading

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

  • Guess which ASX mining stock is rocketing on deal with lithium giant SQM

    a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.

    Talga Group Ltd (ASX: TLG) shares are having a strong finish to the week.

    In afternoon trade, the ASX mining stock is up 13.5% to 64.5 cents.

    Why is this ASX mining stock surging?

    Investors have been fighting to get hold of the battery materials and technology company’s shares following the release of a big announcement.

    According to the release, Talga has entered into an earn-in agreement with lithium giant Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM). This agreement is for Talga’s Aero Lithium Project in Sweden.

    Under the binding agreement, Talga has granted SQM the right to sole fund exploration expenditure of up to US$19 million over the next seven years. This will give the Chilean lithium miner the rights to earn up to a 70% ownership interest in the Aero project. This is subject to Swedish foreign direct investment clearance.

    In addition, Talga will also be paid a management fee for each stage of the potential earn-in arrangement, and a success fee if a decision to mine on Aero is made. Talga retains all rights and obligations in relation to graphite minerals within Aero.

    The release also notes that SQM has completed extensive due diligence on Aero. This includes site visits, so it clearly likes the look of the project.

    And this may not be the only project that the two parties work together on. Under the agreement, they may agree to collaborate on potential new lithium areas and projects in Sweden.

    ‘Aero might be significant’

    Talga’s managing director, Mark Thompson, notes that the project could be significant for the European market. He commented:

    We are delighted to partner with SQM on our Aero lithium project in Sweden, which provides an important chance to build a European lithium supply for the green transition and EU localisation objectives. As one of the few potentially large-scale lithium hard rock opportunities in Europe, Aero might be significant to the region’s battery and electric vehicle industry.

    This sentiment was echoed by the CEO of the SQM International Lithium division CEO, Mark Fones. He commented:

    We are pleased to enter into this agreement, which represents our dedicated efforts to build a global and competitive lithium asset portfolio. Expanding into new and promising jurisdictions, such as Sweden, has been a strategic goal for us, and partnering with Talga, who has demonstrated expertise in the region, further enhances this achievement.

    The post Guess which ASX mining stock is rocketing on deal with lithium giant SQM appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Talga Resources Limited right now?

    Before you buy Talga Resources 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 Talga Resources 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 5 May 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.

  • Why these three ASX All Ords stocks are leading the charge higher this week

    a man in a business suit sits at his laptop computer at his desk and smiles broadly in an office setting, giving an air of optimism and confidence.

    With just a few hours of trade left on Friday, the All Ordinaries Index (ASX: XAO) is up 0.6% for the week, with due thanks to three rocketing ASX All Ords stocks.

    Which companies are we talking about?

    I’m glad you asked!

    Despite slipping today, the PYC Therapeutics Ltd (ASX: PYC) share price is up 18.2% since last Friday’s closing bell.

    The Capitol Health Ltd (ASX: CAJ) share price has flown even higher, up 20.0% for the week.

    And Pantoro Ltd (ASX: PNR) is also amply rewarding shareholders this week, with shares up 18.8% over the five trading days.

    Here’s why investors have sent the ASX All Ords stocks flying higher.

    What’s boosting these ASX All Ords stocks?

    The last price-sensitive news out of PYC Therapeutics was back on 7 June.

    At the time the clinical-stage biotechnology company reported on promising progress with its drug discovery program. That program is directed towards a severe neurodevelopmental disorder, Phelan McDermid Syndrome, which is caused by a loss of one functional copy of the SHANK3 gene.

    Investor interest in the ASX All Ords stock was stirred when PYC Therapeutics said it had successfully restored the deficient protein and would now progress towards human trials, expected to start in 2025.

    “This is a big step forward in this body of work. This is the data that the clinicians have been asking us to generate before we push into the clinic” PYC’s CEO Rohan Hockings said on the day.

    Which brings us to the second ASX All Ords stock leading the charge this week, diagnostic imaging provider Capitol Health.

    The Capitol Health share price gained 10.2% on Monday and another 9.3% on Tuesday after the company reported its board had accepted a takeover offer from Integral Diagnostics Ltd (ASX: IDX).

    With the takeover offer representing a premium of some 33% to last Friday’s closing price, investors sent the stock soaring.

    Commenting on the proposed acquisition, Capitol Health managing director Justin Walter said:

    Today’s proposed merger announcement with Integral, represents an exciting opportunity for all our valued radiologists, technicians, and staff to be part of Australia’s largest pure-play publicly listed imaging company.

    Ian Kadish, Integral CEO added, “The merger would create a scalable platform that would unlock significant value for stakeholders of both Integral and Capitol, including patients, doctors and shareholders.”

    Which brings us to the third ASX All Ords stock shooting the lights out this week, Pantoro.

    Shares in the Western Australian gold producer and explorer are marching higher for the fourth consecutive day today following the company’s growth announcement.

    With a growth budget of $25 million, the miner said it could double the size of its exploratory drill campaign following initial drilling results. Management flagged 85,000 meters of combined diamond and reverse circulation (RC) drilling over four key targets in FY 2025 at the company’s Norseman project.

    Commenting on the growth plan that put the ASX All Ords stock in the top gainers list this week, Pantoro managing director, Paul Cmrlec, said:

    This is a very exciting period in the development of the Norseman goldfield. For the first time we are in a position to re-develop the Norseman Mainfield with an outstanding balance sheet position, and operations generating strong cashflow.

    The post Why these three ASX All Ords stocks are leading the charge higher this week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Capitol Health Limited right now?

    Before you buy Capitol Health 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 Capitol Health 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 5 May 2024

    More reading

    Motley Fool contributor Bernd Struben 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 recommended Integral Diagnostics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    The S&P/ASX 200 Index (ASX: XJO) is having a reasonably positive finish to the week. In afternoon trade, the benchmark index is down 0.2% to 7,787.2 points.

    Four ASX shares that are failing to follow the market higher today are listed below. Here’s why they are falling:

    Guzman y Gomez (ASX: GYG)

    The Guzman y Gomez share price is down almost 5% to $28.58. Investors appear to have been taking profit on Friday after a very strong first session yesterday following the quick service restaurant operator’s initial public offering (IPO). Excitement over its IPO led to Guzman y Gomez’s shares opening 36% higher than its $22.00 listing price on Thursday. This gave the Mexican food chain a $3 billion valuation and meant that its shares were trading on a crazy multiple of 500x estimated FY 2025 earnings.

    KMD Brands Ltd (ASX: KMD)

    The KMD Brands share price is down 6.5% to 36.5 cents. This has been driven by the release of a disappointing trading update from the retailer this morning. KMD Brands revealed that its second half group sales were down 8.4% through to the end of May. This reflects a 5.9% decline in Rip Curl sales, an 8.4% drop in Kathmandu sales, and a 21.8% fall in Oboz sales. As a result, the company now expects underlying EBITDA to be approximately NZ$50 million for the full year. This will be down over 50% from NZ$105.9 million in FY 2023.

    Mineral Resources Ltd (ASX: MIN)

    The Mineral Resources share price is down 6.5% to $56.11. This follows significant weakness in the lithium industry today after the battery making ingredient continued to fall. In addition, the mining and mining services company announced plans to close its Yilgarn Hub iron ore operation this week. Management notes that having carefully considered all options, an assessment confirmed that the continuity of the Yilgarn Hub is not financially viable beyond the end of 2024. It has made the decision to cease Yilgarn Hub iron ore shipments by 31 December.

    Pilbara Minerals Ltd (ASX: PLS)

    The Pilbara Minerals share price is down 4% to $3.07. Investors have been selling the lithium miner’s shares following the release of the pre-feasibility study (PFS) for the expansion of production at the Pilgangoora Operation. Management revealed that its PFS determined that production capacity at Pilgangoora Operation could be expanded to more than 2 million tonnes per annum (Mtpa). This would come with an estimated capital expenditure of ~$1.2 billion. And while the study has a good NPV, it is based on long-term lithium price assumptions meaningfully above current levels and Goldman Sachs’ forecasts. Also, news of a potentially big increase in production is not necessarily good news when there are forecasts for a lithium surplus.

    The post Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Guzman Y Gomez right now?

    Before you buy Guzman Y Gomez 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 Guzman Y Gomez 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 5 May 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.

  • Nuclear power, debt and burritos

    A worker with a clipboard stands in front of a nuclear energy facility

    I don’t need to tell you that social media can be an awful cesspit of mistruth, abuse and algorithmic manipulation. (Exhibit A: My name being used and my video being overdubbed in an attempt to scam people!)

    But it can also be a great place to interact with people of good faith from right across the political and ideological spectrum.

    As an example, I’d been wrestling with so many contradictory claims and counter-claims on Australia’s energy future (this was before the recent announcement by the Opposition Leader… I have no time for the politics of this!), and tweeted that I had come to a point where I thought that nuclear power might have to be part of the power mix, despite my misgivings.

    And thanks to the good graces of my followers, climate activist (and Climate 200 political funding body convener) Simon Holmes à Court was tagged in a reply.

    He told me why he thought I was wrong, and a conversation ensued… that ended up with Simon agreeing to be a guest on our podcast, The Good Oil. (It’s officially ‘The Good Oil with Scott Phillips’, because our podcast partners pointed out there were already a lot of pods called ‘The Good Oil’, but it always makes me cringe!).

    And why am I telling you all this? Well, two reasons.

    One, social media can be a pretty decent place for most (not all) of us if you cultivate a positive approach and some quality followers. 

    Second, and more importantly in this context, we recorded that episode this week, and I reckon if you’re interested in the energy future of the country, you’ll get a lot out of having a listen to our conversation. I did!

    You can find the episode here on Apple Podcasts, or just search ‘The Good Oil with Scott Phillips’ on your favourite podcast player.

    —–

    Speaking of public policy, the announcement this week was just the latest in a long list of the many and varied ways that our governments have found to spend taxpayers’ money.

    Now, let me say that I’m very much in favour of government spending where there are goods or services (including safety nets) that aren’t adequately or better provided by the private sector.

    But we heard this week that on top of the Federal Government debt heading to $1 trillion, the combined state debts are heading to $800 billion, with no signs of slowing down.

    And that at a time when the RBA is trying to slow the economy!

    It is, I hope you’ll agree, deeply irresponsible. And perhaps worse, none of the various oppositions in those parliaments are making any signs of wanting to hold the incumbents accountable, or to promise more fiscal responsibility, so there’s not much hope of change at the political level, whichever way the electoral winds blow.

    No, I’m not really surprised. I do remember a time, though, when both sides of politics actually considered responsible Budget management an important part of governing in the national interest.

    And if you’re wondering why it matters… we have to pay the interest on that debt; money that can’t be spent on other things. And the higher the debt goes, the riskier our balance sheet becomes, and the less we’re financially prepared to handle the next crisis.

    Oh sure, we can just print money… but that’s kinda part of what got us into this inflationary mess. Actions, unfortunately, have consequences.

    —–

    The other money printing? That might just be the existing shareholders of burrito chain Guzman y Gomez (ASX: GYG), now an ASX-listed company, who’ve printed some very nice profits by taking the company public.

    From an IPO price of $22 (50% higher than Morningstar publicly said it was worth), the shares closed at $30. That’s… a spicy burrito (sorry!) if ever there was one. How spicy? The company now has a market cap of $3 billion and a profit last year of $3 million.

    I’ll save you the maths.. That’s a P/E of 1,000 times!

    Now, investors are never buying last year’s profits – we’re looking forward and hoping to harvest future profits. The company is forecasting a decent lift next year, and has ambitious growth plans well past that.

    This might be stating the obvious… but it’ll need to!

    Can it get there? Maybe. I do love the company’s food, but I’m not sure this is a risk/reward worth chasing. It wouldn’t be the first company to blow away expectations… or the first one to leave investors feeling as flat as a tortilla!

    Have a great weekend. 

    Fool on!

    The post Nuclear power, debt and burritos appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Guzman Y Gomez right now?

    Before you buy Guzman Y Gomez 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 Guzman Y Gomez 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 5 May 2024

    More reading

    Motley Fool contributor Scott Phillips 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.

  • Top 10 most traded ASX shares and US stocks in May

    Ten smiling business people wave to the camera after receiving some winning company news.

    BHP Group Ltd (ASX: BHP) and ANZ Group Holdings Ltd (ASX: ANZ) were the top two most traded ASX shares last month among investors using the SelfWealth trading platform to buy and sell stocks.

    Among the 10 most traded shares were eight ASX 200 companies and two from the All Ords.

    Let’s take a look.

    Top 10 most traded ASX shares in May

    Here are the top 10 most traded ASX shares in May, according to data from Selfwealth Ltd (ASX: SWF).

    Rank ASX shares Percentage of buy orders
    1 BHP Group Ltd (ASX: BHP) 57.6%
    2 ANZ Group Holdings Ltd (ASX: ANZ) 53.3%
    3 Fortescue Ltd (ASX: FMG) 54.6%
    4 Woodside Energy Group Ltd (ASX: WDS) 67.7%
    5 Telstra Group Ltd (ASX: TLS) 75.1%
    6 Pilbara Minerals Ltd (ASX: PLS) 47.6%
    7 Westpac Banking Corp (ASX: WBC) 47.8%
    8 Vulcan Energy Resources Ltd (ASX: VUL) 54.5%
    9 Woolworths Group Ltd (ASX: WDS) 75.4%
    10 Mesoblast Ltd (ASX: MSB) 55.4%

    As you can see, ASX consumer staples share Woolworths shares received the strongest buyer interest among the top 10 most traded shares in May.

    Top broker Goldman Sachs has a conviction buy rating on Woolworths with a 12-month share price target of $39.40.

    Based on the Woolworths share price of $33.70 on Friday, this implies a potential upside of 17% for investors in FY25 if they buy today.

    Telstra shares had the second strongest buying activity during the month.

    Goldman has a buy rating on the ASX telecommunications share with a $4.25 price target.

    The Telstra share price is $3.66 at the time of writing. Goldman’s target, therefore, implies a potential upside of 16% in FY25 on this stock.

    On Friday, the S&P/ASX 200 Index (ASX: XJO) is trading 0.21% higher at 7,785.8 points. Meantime, S&P/ASX All Ordinaries (ASX: XAO) shares are up 0.19% to 8,027.7 points.

    Top 10 most traded US stocks in May

    Here are the top 10 most traded US stocks in May among SelfWealth traders.

    Rank US stocks Percentage of buy orders
    1 GameStop Corp (NYSE: GME) 43.8%
    2 Faraday Future Intelligent Electric Inc (NASDAQ: FFIE) 55%
    3 Tesla Inc (NASDAQ: TSLA) 63.8%
    4 NVIDIA Corp (NASDAQ: NVDA) 66%
    5 Advanced Micro Devices, Inc. (NASDAQ: AMD) 59.6%
    6 Apple Inc (NASDAQ: AAPL) 43.5%
    7 Amazon.com Inc (NASDAQ: AMZN) 69.9%
    8 Alphabet Inc Class A (NASDAQ: GOOGL) 66.1%
    9 Microsoft Corp (NASDAQ: MSFT) 73.4%
    10 Marathon Digital Holdings Inc (NASDAQ: MARA) 53.4%

    Microsoft shares received the strongest buyer interest among the top 10 in May.

    Microsoft is the biggest company in the United States, with a market capitalisation of $3.31 billion.

    However, earlier this week Nvidia briefly overtook Microsoft when its market cap reached $3.34 billion.

    Nvidia underwent a 10-for-1 stock split last week. It closed overnight at US$130.78 per share.

    The post Top 10 most traded ASX shares and US stocks in May appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Australia And New Zealand Banking Group right now?

    Before you buy Australia And New Zealand Banking 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 Australia And New Zealand Banking 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 5 May 2024

    More reading

    Suzanne Frey, an executive at Alphabet, 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. Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, Mesoblast, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, Goldman Sachs Group, Microsoft, Nvidia, and Tesla. 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 Telstra Group. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.