Stock Pick

  • What’s happening with the big 3 ASX 200 iron ore stocks today?

    S&P/ASX 200 Index (ASX: XJO) iron ore stocks are delivering some divergent results today.

    In morning trade on Tuesday, the ASX 200 is up 0.9%.

    Here’s how the big three ASX 200 iron ore stocks are faring at this same time:

    • Fortescue Metals Group Ltd (ASX: FMG) shares are down 4.4%
    • BHP Group Ltd (ASX: BHP) shares are up 0.7%
    • Rio Tinto Ltd (ASX: RIO) shares are up 1.2%

    So, what’s going on?

    ASX 200 iron ore stocks shrug off Chinese headwinds

    Rio Tinto and BHP shares are shrugging off headwinds today thrown up by a retrace in the prices of their top earning metals.

    The Fortescue share price look to be coming under selling pressure amid news that 50.3 million shares were sold in a block trade at a price of $21.60 per share. That’s 6.0% below yesterday’s closing price of $22.98 a share.

    On the metals front, iron ore declined 2.1% overnight to trade for just over US$105 per tonne. Even hot-running copper slipped, with the red metal down 0.8% to US$9,666 per tonne.

    BHP and Rio Tinto shares saw their internationally listed stocks slide overnight. The BHP share price closed down 1.0% on the New York Stock Exchange (NYSE), while Rio Tinto shares fell 0.8%. But Aussie investors aren’t following their US counterparts in selling the ASX 200 iron ore stocks today.

    This week’s industrial metals’ price decline looks to be linked to ongoing weakness in China’s economic recovery.

    Yesterday, China’s National Bureau of Statistics released a trove of data, most of which fell short of analyst expectations.

    While industrial production in the world’s number two economy was up 5.6% year on year, it was down from April, coming in below the median forecast of a Bloomberg survey.

    And China’s steel-hungry property markets showed ongoing signs of weakness, with real estate investment and house prices falling again in April.

    What are the experts saying?

    Commenting on the disappointing Chinese data that could throw up headwinds for ASX 200 iron ore stocks down the road, Jacqueline Rong, chief China economist at BNP Paribas said (quoted by Bloomberg), “The most disappointing in May’s data is probably that property sales barely saw any improvements even after so many supportive measures.”

    Indeed, this has seen numerous economists call for more government stimulus measures to get the economy back up to speed.

    “We still need to see new stimulus coming in. Otherwise, the growth momentum could very much weaken,” Helen Qiao, chief Greater China economist at Bank of America Global Research said.

    More fiscal support may be in the pipeline. But ASX 200 iron ore stocks will likely be waiting a while for monetary easing with China’s government wary of further devaluing the yuan against the greenback.

    According to Bloomberg economists Chang Shu and David Qu:

    Policy support could make a significant difference. But the People’s Bank of China’s focus on currency stability appears to have tied its hands on cutting interest rates, at least until the Federal Reserve moves.

    Stay tuned!

    The post What’s happening with the big 3 ASX 200 iron ore stocks today? appeared first on The Motley Fool Australia.

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

    Before you buy Bhp 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 Bhp 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

    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 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.

  • A surgeon general’s warning on social media wouldn’t be as powerful as good-old-fashioned parenting, experts say

    A young girl looks at her cell phone while her mom looks over her shoulder
    The US surgeon general suggested attaching warnings to social media platforms.

    rbkomar/Getty Images

    • The US surgeon general wants to attach an official government warning to social media platforms.
    • But social media experts are mixed on how whether a warning could help curb kids' mental health woes.
    • Parents can and should play a massive role in teaching their kids how to stay safe online. 

    The US surgeon general on Monday proposed a bold new step in fighting social media's negative effects on children, suggesting the government affix social media platforms with a surgeon general's warning about the inherent risks of being too online.

    But social media experts and researchers are mixed on just how effective such a move would be.

    In a New York Times op-ed published this week, Dr. Vivek Murthy called for government warning labels on social media platforms, citing recent studies that point to kids' worsening mental health in an increasingly digital world.

    "Adolescents who spend more than three hours a day on social media face double the risk of anxiety and depression symptoms, and the average daily use in this age group, as of the summer of 2023, was 4.8 hours," Murthy wrote, citing a 2019 American Medical Association study and a 2023 Gallup poll.

    While scientific researchers are still hashing out the exact impacts social media has on children, Titania Jordan, chief parent officer at parental controls company Bark Technologies, said parents need only look around to see the ways in which kids are suffering.

    "The rates at which young children are struggling with suicidal ideation, exposure to graphic sexual content, drug, and alcohol-related content — dying because of fentanyl-laced pills they've bought on Snapchat — the bullying, the depression, the disordered eating, the predators, the violence — all of those are way higher than anyone would imagine," Jordan told Business Insider.

    Last year, Murthy made a similar social media-related plea, issuing a surgeon general's advisory that urged Americans to pay attention to what he deemed a public health issue. Since then, Meta founder Mark Zuckerberg has testified before Congress about the company's child safety policies, and legislation focused on online safety for kids continues to work its way through Congress.

    But little has actually changed, Jordan said. And kids themselves are increasingly aware of social media's potential harms. According to one August 2022 study, almost half of all adolescents said social media makes them feel bad about their bodies.

    "A warning label via a pop-up on an app isn't going to be the end-all-be-all to keeping kids safe online, but at least it starts the conversation and levels the playing field," Jordan said.

    A mixed-bag

    Karen North, a professor of digital and social media at the University of Southern California, is skeptical about whether a surgeon general's warning would do much of anything to curb kids' mental health woes.

    "It's far more complicated than putting a warning on something that is clearly dangerous, like cigarettes or alcohol, because social media is a real mixed bag," North said. "It's a true double-edged sword.

    While social media has, without question, negatively affected scores of children, many young people have also used the platforms to build community, befriending people they would never have had the chance to meet in "the real world," North said.

    She questioned which platforms would be subject to the surgeon general's warning. Instagram and TikTok, certainly. But what about something like Duolingo? And what exactly would the warning say, North wondered, noting that social media is rarely exclusively harmful.

    Still, a warning — which could only be implemented with Congress' approval — could have marginal benefits in keeping the conversation around mental health top of mind, North said.

    But there's something even more powerful in fighting social media's perils, online experts said: Parenting.

    Proactive parenting

    For most kids, social media use begins at home. Parents set the rules, purchase the smartphones, and model social media behavior.

    "We as parents and caregivers have to say no and delay," Jordan said, echoing Murthy's call to restrict kids' social media use until high school.

    Kids often point to feeling left out without smartphones or access to social media, said Jordan, who is a parent. She suggested parents resist the urge to bend to their children's will and instead encourage their kids to focus on spending time with their peers in the physical world.

    But what about when social media facilitates connection in the physical world? North, who is also a parent, said when her daughter was in middle school, the tween's peers exclusively used Snapchat to make plans and organize meetups. Without the app, her daughter would have been left in the dark on social gatherings.

    "Someone once said you have to give your kids the tools for success in the world that you've placed them in," she told BI.

    Instead of restricting kids' access to social media entirely, North suggested parents take an active role in teaching their children how to use social media as safely as possible.

    "We hand over social media to our kids at a young age, but we don't do the same thing with crossing the street," North said. "We take them, time after time, holding their hand and pointing to the stop sign. We tell them to look both ways. We go to great lengths to teach kids how to cross."

    The same should go for using social media, she argued.

    "Parents need to teach their kids how to cross the virtual street," North said.

    Are you a parent who has struggled with your children's social media use? Have you restricted your kids' access to social media or taken a proactive approach to teaching them how to navigate the digital world? Email the reporter at esnodgrass@businessinsider.com to share your social media stories.

    Read the original article on Business Insider

  • Buy ’em now! Brokers name 3 ASX All Ords shares to add to your portfolio

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    The S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.76% to 8,003.8 points in early trading on Tuesday.

    As reported in The Australian, 3 All Ords stocks have just gained buy ratings from top brokers.

    Let’s check them out.

    Capstone Copper Corp CDI (ASX: CSC)

    ASX All Ords copper shares are benefiting from the global focus on future decarbonisation. Copper is a key material required in electric vehicles, wind turbines, and solar energy systems.

    It’s also an essential building material for data centres, which is an explosive growth segment of the property market supporting today’s global artificial intelligence boom.

    Copper futures rose to a record high of US$5.20 per pound last month but have since retreated to US$4.45 per pound on fears that short-term demand in China may fall due to lower industrial output.

    The long-term outlook for copper is still very positive, though.

    Most experts say that gradually rising demand as decarbonisation grows, set against a looming lack of supply due to the high cost of starting new copper mines, will keep the commodity price rising over time.

    Copper futures remain 17.7% higher than this time last year, and top broker Goldman Sachs has a year-end price target of US$5.44 per pound.

    This all bodes well for the dual-listed Canadian-based Capstone Copper, which only began trading on the ASX in April.

    Macquarie has commenced coverage on the ASX All Ords copper share with an outperform rating and a 12-month price target of $9.80.

    At the time of writing, the Capstone Copper share price is already higher than the target at $10.02, up 2.24% for the day so far.

    Integral Diagnostics Ltd (ASX: IDX)

    Integral Diagnostics is an ASX All Ords healthcare share. The company provides medical imaging services.

    Yesterday, Integral Diagnostics announced it had made an offer to merge with competitor Capitol Health Ltd (ASX: CAJ).

    Investors weren’t too impressed with the all-scrip offer, and the ASX All Ords healthcare share fell 4.14% to close at $2.43 yesterday.

    A rebound is occurring today, with the Integral Diagnostics share price up 4.53% to $2.54 at the time of writing.

    Meantime, JP Morgan is backing the ASX All Ords healthcare share for growth.

    The broker has raised its rating on the stock to overweight, with a 12-month price target of $2.80.

    Life360 Inc (ASX: 360)

    Canaccord has started coverage on this popular ASX All Ords technology share with a buy rating.

    The broker has a 12-month share price target of $40 on the stock.

    UBS has also started coverage on Life360, but it’s less ambitious about potential share price growth.

    The broker has a neutral rating on Life360 shares and a $32 share price target. Still, that’s more than double the current share price.

    The ASX All Ords tech share is changing hands for $15.30 apiece today, down 0.91% at the time of writing.

    Life360 is the location technology company behind the Life360 app, which millions of families worldwide use to keep track of each other.

    As my colleague James reports, Life360’s monthly active users increased by 4.9 million during the first quarter to 66.4 million.

    This is boosting revenue amid management’s efforts to increase average revenue per user and the number of paid subscribers.

    The post Buy ’em now! Brokers name 3 ASX All Ords shares to add to your portfolio appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Life360 right now?

    Before you buy Life360 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 Life360 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

    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, Life360, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

  • Insiders are buying these ASX shares after selloffs

    I think that it can be useful for investors to keep an eye on which shares are experiencing meaningful insider buying.

    This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its directors.

    If they are buying, it could be a sign that they are confident in the direction the company is heading and/or see value in its shares.

    With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently.

    And as they are all down heavily year to date, it’s possible that these directors believe they have been oversold. Let’s see what has been happening:

    Chrysos Corporation Ltd (ASX: C79)

    This mining technology company’s shares are down a disappointing 40% since the start of the year.

    One director that is taking advantage of this weakness to buy their first shares in the PhotonAssay creator is Gregory Holt. According to change of director’s interest notice, Holt picked up 12,000 shares through an on-market trade on 12 June.

    The insider paid an average of $5.05 per share, which equates to a total consideration of $60,600.

    Shaw & Partners would likely be very supportive of this purchase. Last month, the broker put a buy rating and $7.50 price target on the company’s shares.

    IDP Education Ltd (ASX: IEL)

    This heavily shorted language testing and student placement company’s shares are down 23% in 2024 and 37% on a 12-month basis. This has been driven largely by disruption in key markets caused by changes to student visa rules, which is weighing heavily on its performance.

    Nevertheless, one of the company’s non-executive directors appears to remain positive on the future and sees this as a buying opportunity.

    A change of director’s interests notice shows that Tracey Horton bought 1,300 shares through an on-market trade on 7 June. Horton paid a total of $19,691.65 for the shares, which equates to a price of approximately $15.15 per share.

    Goldman Sachs currently has a buy rating and $21.75 price target on its shares. So, this insider could do very well if the broker is on the money with its recommendation.

    Lendlease Group (ASX: LLC)

    Finally, this property developer’s shares have lost 27% of their value this year.

    The company’s independent non-executive director, Elizabeth M. Proust, AO, has taken advantage of this weakness to top up her position.

    Ms Proust picked up 20,000 shares on 11 June through an on-market trade. The insider paid an average of $5.675 per share, which represents a total consideration of $113,500. This boosts her holding to a total of 123,061 Lendlease shares.

    While none of the major brokers rate Lendlease as a buy, they do see value in its shares. For example, UBS has a neutral rating and $7.10 price target. This is 30% higher than where its shares trade today.

    The post Insiders are buying these ASX shares after selloffs appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Chrysos Corporation Limited right now?

    Before you buy Chrysos Corporation 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 Chrysos Corporation 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 positions in and has recommended Chrysos, Goldman Sachs Group, and Idp Education. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why did this ASX All Ords stock just crash 45%?

    A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.

    The All Ordinaries Index (ASX: XAO) is up a healthy 0.7% today, but ASX All Ords stock Melbana Energy Ltd (ASX: MAY) isn’t joining in the rally.

    Shares in the oil and gas company closed yesterday trading for 6.6 cents. In morning trade on Tuesday, shares were swapping hands for 3.6 cents apiece, down a precipitous 45.4%. The share price has since regained some of those losses, trading for 3.9 cents apiece at the time of writing, down 40.9%.

    Here’s what’s putting the ASX All Ords stock under heavy selling pressure.

    What did the ASX All Ords stock report?

    The Melbana Energy share price is crashing after the company released an update after market close yesterday on its appraisal well Alameda-3.

    The ASX All Ords stock holds a 30% interest in and is the operator of Block 9 PSC, an oil project located onshore in Cuba, where the well is situated.

    On 9 June, the company commenced a flow test of the Marti reservoir, penetrating the Alameda-3 well.

    As you can likely guess by the cascading share price, all did not go well with the latest testing.

    Melbana Energy noted that despite good indications of fracturing from wireline logs and high reservoir pressures, “results of the test were not as expected”.

    The ASX All Ords stock took two stabs at flowing the well but said that both times it did not achieve the complete removal of drilling mud and downhole fluids from the test string. And oil did not flow to surface.

    On the plus side, Melbana reported recovering oil on reverse circulation of the DST string, demonstrating the presence of oil very deep on the structure.

    The company has ruled out mechanical blockage and suspects the lack of flow is due to emulsions in the lower portion of the test string. It has now suspended the Marti reservoir section while it awaits the results of the latest data analysis.

    Melbana will now conduct tests on the shallower Alameda formation.

    What did management say?

    Commenting on the flow test results sending the ASX All Ords stock plunging today, Melbana Energy executive chairman, Andrew Purcell, said:

    The logs we have obtained in the Marti formation show excellent fracturing and the down hole pressure is very high. This is consistent with what we encountered here last time but, so far, we’ve been unable to get clean flow to surface.

    There may have been a reaction between the different fluid system we are using this time (which has delivered excellent well control) and the reservoir so we’re going to pause this test whilst we study the samples and data we’ve obtained and get on to testing the shallower Alameda formation in the meantime.

    With today’s intraday losses factored in, the ASX All Ords stock is down 56% over 12 months.

    The post Why did this ASX All Ords stock just crash 45%? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Melbana Energy right now?

    Before you buy Melbana Energy 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 Melbana Energy 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 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.

  • Should investors be bullish about BHP shares with the FY25 outlook?

    An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.

    The BHP Group Ltd (ASX: BHP) share price has fallen 15.59% since the start of 2024. With the changing economic picture, investors may be wondering whether FY25 can reignite things for the ASX mining share.

    In the last few weeks, BHP has attempted to take over the UK miner Anglo American, but those offers were knocked back, and now BHP shares are trading at a near 52-week low.

    The price of the resource is usually a key factor in the profitability and success of commodity stocks like BHP. Let’s examine what the outlook is for BHP.

    Iron ore price forecast to recover

    I believe the iron ore outlook is key for BHP because the iron division normally generates the most profit for the ASX mining share.

    June 2024 has seen the iron ore price fall to US$106 per tonne, the lowest in two months and much lower than the start of 2024 when it was above US$140 per tonne.

    The recent decline in June has been, according to Trading Economics, due to pessimistic iron ore demand expectations with China. Trading Economics noted Dexin China, a property developer, has been ordered to liquidate by a Hong Kong court just one year after a restructuring was approved. It’s the latest in a string of Chinese developers to be wound up.

    Trading Economics said this liquidation “added to doubts over a potential recovery” for the sector amid Chinese consumer weakness and “plunging home demand” significantly denting home sales in China. There has been a 34% year over year plunge in sales from the 100 largest Chinese constructors.

    These developments have increased expectations of low iron ore demand. However, the Chinese government has proposed a number of measures to support distressed property developers and help reduce the country’s rising housing inventory.

    However, Trading Economics is forecasting that the iron ore price can recover based on its global macroeconomic models and analyst expectations. In 12 months, it expects the iron ore price to reach US$125.97 per tonne, an increase of almost US$20 per tonne.

    If that forecast of a higher iron ore price comes true, it could significantly increase BHP’s short-term profitability and help support BHP shares.

    Strengthening view on the copper price

    If BHP can grow its copper exposure, then copper could become a more important element for the ASX miner in the future. It wanted to buy Anglo American for the copper mines, so it will have to find another source of copper growth.

    Analysts at Macquarie recently increased their forecast for the copper price for 2025 by 9% to US$9,575 per tonne. This price would represent a higher price than most of the past decade, according to Statista.

    FY25 profit forecast

    In terms of BHP’s 2025 annual numbers, the broker UBS has forecast BHP to generate US$55.5 billion of revenue, US$0.5 billion more than what’s forecast for FY24.

    UBS has suggested BHP could generate earnings before interest and tax (EBIT) of US$23.6 billion in FY25, which would represent an increase of more than US$7 billion compared to expectations of US$16.1 billion of EBIT in FY24.

    The broker has forecast BHP could generate US$13 billion of net profit after tax (NPAT), which would be approximately US$400 million more than FY24’s estimated NPAT of US$12.6 billion.

    UBS suggests BHP could pay an annual dividend per share of US$1.54 in FY25, which is US 17 cents more than the projected payout of US$1.37 in FY24.

    It seems analysts are expecting FY25 to be a better year for BHP shares than FY24.

    The post Should investors be bullish about BHP shares with the FY25 outlook? appeared first on The Motley Fool Australia.

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

    Before you buy Bhp 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 Bhp 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

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

  • ASX healthcare stock surges 11% on ‘incredibly valuable’ FDA news

    A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today

    Race Oncology Ltd (ASX: RAC) shares are roaring higher on Tuesday morning.

    In early trade, the ASX healthcare stock is up 11% to $1.94.

    Why is this ASX healthcare stock surging?

    Investors have been buying the clinical stage biopharmaceutical company’s shares this morning after it received a major boost in the United States.

    According to the release, the United States Food and Drug Administration (FDA) has extended Rare Paediatric Disease Designation (RPDD) to RC220 bisantrene for the treatment of childhood (paediatric) subtypes of acute myeloid leukemia (AML).

    This isn’t the first time the company has been granted this important designation. RPDD was previously granted by the FDA to RC110 bisantrene in 2018.

    The company notes that RPDD is granted for new treatments of serious or life-threatening diseases which affect fewer than 200,000 people in the United States and which primarily affect individuals less than 18 years of age.

    Approximately 70% of rare diseases are exclusively paediatric in onset, with 95% of rare diseases having no approved treatments.

    What are the advantages?

    The ASX healthcare stock explains that RPDD qualifies a sponsor eligible to receive a Priority Review Voucher (PRV) from the FDA at the time of marketing approval or authorisation for drug in the paediatric rare disease area.

    In addition, the RPDD for paediatric AML may enable Race Oncology to be eligible to receive a PRV that can be redeemed for an accelerated 6-month review of RC220 bisantrene or any other new drug application submitted to the FDA.

    Another positive is that granted PRVs may also transferred or sold to other companies for use in the same manner on the secondary market. And these are certainly very valuable.

    Management highlights that the reported purchase prices of PRVs to third parties on the open market have averaged more than US$100 million. Two PRVs have been sold in recent times for US$110 million.

    ‘Incredibly valuable’

    Race Oncology’s CEO, Dr Daniel Tillett, was pleased with the news. He said:

    US FDA RPDD is incredibly valuable as not only does it offer eligibility for the award of a PRV, but the ability to work with passionate clinicians and regulators to bring help to children and adolescents facing an enormously challenging disease with few effective treatment options.

    The ASX healthcare stock’s chief medical officer, Dr Michelle Rashford, adds:

    There is a need for new medicines designed to treat these rare childhood cancers which can be devastating for families. The US government has created incentives like the Priority Review Voucher scheme to encourage companies to invest in research and clinical studies in paediatric cancers. To be able to contribute to better treating childhood cancers like paediatric AML by collaboratively working with a dedicated international paediatric cooperative group would be very rewarding.

    The post ASX healthcare stock surges 11% on ‘incredibly valuable’ FDA news appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Race Oncology Limited right now?

    Before you buy Race Oncology 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 Race Oncology 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.

  • Nvidia jumped 27% after its stock split announcement. Can Broadcom beat it?

    A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares

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

    Investors went wild for Nvidia‘s (NASDAQ: NVDA) stock split. 

    Shares of the artificial intelligence (AI) chip leader jumped 27% from the stock split announcement on May 22 to the execution of the split on June 7.

    The gains were enough to put Nvidia past the $3 trillion market cap mark and within a hair of becoming the most valuable company in the world. (It’s in a close three-way race with Apple and Microsoft.) While a strong first-quarter earnings report from Nvidia also helped give the stock a boost, the stock split seemed to be the main reason for the 27% pop. Shares continued to march higher after the earnings report, and even gained another 9% in the week after the split went into effect.

    Now, fellow chip stock Broadcom (NASDAQ: AVGO) is taking a turn. Following Nvidia’s 10-for-1 stock split, Broadcom announced a similar 10-for-1 split when it reported fiscal second-quarter earnings after hours on June 12. Broadcom’s stock split is set to go into effect on July 15.

    Investors seem to like the move. Shares of Broadcom, which may be best known for its networking chips, have already jumped 16% in the two days since the announcement.

    Broadcom was due for a stock split

    Broadcom shares now trade above $1,700, higher than Nvidia was before its stock split. This is one of the highest share prices on the market.

    In the announcement, management said the stock split was intended to “make ownership of Broadcom stock more accessible to investors and employees.”

    Since it was acquired by Avago (which took the name Broadcom) in 2016, the company hasn’t split its stock, though the old Broadcom split its stock three times between 1999 and 2006.

    While the share price appreciation is one reason for the stock split, Broadcom’s growth potential in the generative AI era offers another reason for the split.

    Broadcom acquired virtualization software specialist VMWare late last year, and VMware has been the primary driver of its growth. Revenue jumped 43% in the second quarter to $12.5 billion, ahead of estimates at $12 billion, though without VMware, revenue rose 12%.

    Management also said revenue from AI products reached $3.1 billion, representing roughly a quarter of total revenue. Management said demand from cloud infrastructure companies for both networking and custom accelerators is strong. It now expects networking revenue to grow 40%, compared to its earlier forecast of 35%, due to AI demand. It also raised its full-year revenue guidance from $50 billion to $51 billion, $11 billion of which would be AI revenue.

    Is Broadcom a buy?

    With or without the stock split, Broadcom looks like a smart long-term stock to own. The company has a long history of successfully integrating acquisitions and cutting costs, and it looks poised to do that again with VMware.

    Meanwhile, the company might not have as much exposure to AI as Nvidia, but its competitive strengths in areas like networking and custom ASIC chips are becoming apparent. For example, seven of the largest eight AI clusters in deployment today use Broadcom Ethernet solutions.

    Broadcom stock has soared in recent months so some of the growth in AI is baked into the price. But its financials also got a boost from the VMware acquisition, which is giving profits a significant boost.

    Buying Broadcom on the stock split alone isn’t a good idea, but the split could help push shares higher in the coming months. As enthusiasm for AI stocks continues to percolate, Broadcom deserves to gain with the broader sector, as it’s clearly benefiting from increasing demand for generative AI. 

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

    The post Nvidia jumped 27% after its stock split announcement. Can Broadcom beat it? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Jeremy Bowman has positions in Broadcom. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and 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 recommended 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.

  • Guess which ASX mining stock is rocketing 16% on a new discovery

    Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price

    The Sun Silver Ltd (ASX: SS1) share price is catching the eye of investors on Tuesday morning.

    At the time of writing, the ASX mining stock is up a sizeable 16% to 53 cents.

    Why is this ASX mining stock rocketing?

    Investors have been fighting to get hold of the silver and gold explorer this morning after it released an update on the Maverick Springs Silver-Gold Project in Nevada, United States.

    According to the release, the company has identified an outstanding high-grade target zone within the north-western section of the “globally significant” project.

    The ASX mining stock notes that the high-grade target zone was defined as part of an ongoing comprehensive review of historical data, drill material, and recent field activities. During these reviews, the company’s team has uncovered exceptional high-grade silver intervals in multiple historic drill-holes of up to 6,216g/t Silver (Ag).

    Management highlights that these zones are significant as they lie on the north-western boundary of the defined mineralised zone. Furthermore, the grades and intercept widths are significantly larger than the average grades and intercepts of the current JORC modelled mineral resource.

    In addition, recent fieldwork has identified rocky outcrops and pathfinder elements up to 1.2 km from the current defined mineralisation boundary in the North-West. It believes that this supports the theory that potential resource extensions may be located in this area.

    But it gets better. Management points out that the absence of rocky outcrops within the current mineralised zone excites the team about the possibility of surface mineralisation in the north-west area of the property.

    Sun Silver’s exploration team is now finalising drill-hole locations to target the high-grade zone as well as extensional targets along trend.

    It notes that definition and mapping of these high-grade intercepts near the north-western corner has guided the exploration team in targeting continuation of mineralisation along-trend but also focusing on higher grade areas as part of its inaugural drilling campaign.

    ‘Boosted confidence’

    The ASX mining stock’s executive director, Gerard O’Donovan, was very pleased with the news. He said:

    Defining this high-grade zone and generating inaugural drill targets validates our diligent analysis of crucial data and drill information at Maverick Springs. Mapping high-grade results near the north-western border of the current Resource has boosted confidence in potential for extension of mineralisation beyond defined boundaries and the potential for discovering higher grades. We look forward to testing these theories in our upcoming inaugural drill campaign.

    The post Guess which ASX mining stock is rocketing 16% on a new discovery appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    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.

  • 2 ASX dividend shares offering over 5% yield

    Middle age caucasian man smiling confident drinking coffee at home.

    In the world of investing, dividends are like the steady heartbeat of a healthy portfolio. They provide a regular income stream, offering a cushion against market volatility.

    Are you seeking some reliable ASX dividend shares with impressive yields? Read on to explore two ASX shares currently offering dividend yields of over 5%.

    Metcash Ltd (ASX: MTS)

    Where do you shop for groceries these days? Surely, Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) are the main ones that come to mind.

    In addition to these two retail giants, IGA Supermarkets are also doing well, with over 1,400 stores nationwide.

    Furthermore, IGA owner Metcash shares are trading cheaper than its bigger peers. Using earnings estimates by S&P Capital IQ:

    • Metcash shares are trading at 13x FY25 estimated earnings
    • Woolworths shares are trading at 23x FY25 estimated earnings
    • Coles shares are trading at 20x FY25 estimated earnings

    Based on actual dividends paid over the past 12 months, Metcash offers a higher dividend yield than its peers.

    • Metcash offers a fully franked dividend yield of 5.9%
    • Woolworth offers a fully franked dividend yield of 3.2%
    • Coles offers a fully franked dividend yield of 3.9%

    Its 1H FY24 results were mixed. While revenue, net of charge-through sales, grew by 1.3% from a year ago to $7.8 billion, its underlying operating profit decreased 3.4% to $246.5 million. Underlying net profit after tax was down 10.9% to $142.5 million.

    With that said, in the same report, Metcash provided a positive trading update for the second half. For the first four weeks of 2H FY24, food sales, excluding volatile Tabacco products, increased by 4.8%, while hardware and liquor sales were up 2.4% and 1.5%, respectively.

    The Metcash share price closed Tuesday at $3.72 after falling 4% over the past month.

    HomeCo Daily Needs REIT (ASX: HDN)

    HomeCo is a property trust focused on owning and managing a portfolio of properties that cater to everyday consumer needs. The real estate investment trust (REIT) currently manages about 1,200 tenants across over 50 properties, serving major brands like Woolworths, Coles, Bunnings, KFC, and more.

    In 1H FY24, the REIT boasted robust leasing fundamentals, with over 99% occupancy and rent collection. Funds from operations (FFO) increased by 1% from a year ago to $89.4 million, or 4.3 cents per share (cps) on a unit basis. The trust distributes nearly 98% of its FFO, or 4.2 cps for 1H FY24, in accordance with the REIT’s distribution requirement.

    The annual distribution is 8.4 cps, yielding 6.8% at the current security price of $1.22. Although there’s no franking credit attached to it, this is a pretty generous yield.

    The trust appears undervalued based on its net asset value. Its net assets were valued at $3.1 billion as of 31 December 2023. This is $1.44 per unit of security, meaning its current security price is at a 16% discount to its asset value.

    Morgans also recently recommended HomeCo Daily Needs REIT to buy due to the resilience of its cash flows and its exposure to accelerating click and collect trends.

    The HomeCo Daily Needs REIT unit price closed at $1.22 on Monday after falling 3.17% over the past month.

    The post 2 ASX dividend shares offering over 5% yield appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Homeco Daily Needs Reit right now?

    Before you buy Homeco Daily Needs Reit 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 Homeco Daily Needs Reit 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…

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    Motley Fool contributor Kate Lee 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 positions in and has recommended Coles Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.