Tag: Motley Fool Australia

  • Not sure about the big four banks? Buy these ASX dividend shares instead

    dividend shares

    While I think that the big four banks are top options for income investors right now, not everyone is a fan of them.

    So, if you’re looking for dividends outside the banking sector, then the two shares listed below might be the ones to buy:

    Aventus Group (ASX: AVN)

    The first share that I think could be a good alternative to the big four banks is Aventus. It is a retail property company which specialises in large format retail centres (retail parks) across Australia. At the last count, the company had a total of 20 centres in its portfolio. These centres are home to a diverse tenant base of 593 quality tenancies. This includes many of the largest retailers in the country such as ALDI, Bunnings, Officeworks, The Good Guys, and Super Cheap Auto.

    Pleasingly, its portfolio has a high weighting towards everyday needs, which I believe leaves it better positioned than most to ride out the current crisis. One broker that is particularly positive on Aventus is Goldman Sachs. It recently forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a massive forward ~8.2% distribution yield.

    Sydney Airport Holdings Pty Ltd (ASX: SYD)

    If you don’t mind waiting until FY 2021 for dividends, then I think Sydney Airport could be a great option. While the airport operator could still pay a heavily reduced final dividend, I would suggest investors turn their attention to the future.

    Although it will take time for travel markets to recover in full, I’m optimistic the domestic travel market will be strong enough to allow the company to pay a 29 cents per share dividend in FY 2021. If this estimate proves accurate, it will mean a 5.2% dividend yield next year. I think this makes it well worth considering a patient investment in its shares.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    The post Not sure about the big four banks? Buy these ASX dividend shares instead appeared first on Motley Fool Australia.

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  • The latest ASX recommendation changes by top brokers

    Market up or down

    Get used to being whiplashed fellow Fools! The market is ding-donging and unlikely to break out to the up or downside until the August reporting season or a black swan event – whichever comes first.

    It doesn’t take much to move share prices in this environment, and I think changes to broker recommendations will have an outsized impact on ASX share prices.

    While the S&P/ASX 200 Index (Index:^AXJO) slumped by more than 2% in after lunch trade, the 3P Learning Ltd (ASX: 3PL) share price surged by a similar amount to 85 cents for this reason.

    Education’s priceless

    Morgan Stanley upgraded the online education services group to “overweight” from “equal-weight” after secured a US$10 million ($14.6 million) revenue opportunity.

    3PL will supply the ministry of education of a Middle East country with Mathletics licenses and services.

    This is a significant deal given that the group posted revenue of $54 million in FY19.

    While the agreement is for 12-months, there is scope to extend the term and to increase the number of licenses for the online math program.

    Price target upgrade

    Morgan Stanley believes the ministry wants 3PL to succeed, but just counting the one-year revenue, the broker’s price target jumps to $1.10 from 86 cents a share.

    “Initial evidence of sales execution, uplift in cash from service delivery and positive implications on strength of sales pipeline (with high incremental margins) suggests that 3PL is too cheap at <2x EV/Sales FY20e,” said the broker.

    “There are questions that need clarifying, but sales have improved significantly and the risk-reward is much more constructive now in our view.”

    Falling star

    On the flipside, the Galaxy Resources Limited (ASX: GXY) share price came crashing back to earth after Credit Suisse downgraded it to “neutral” from “outperform”.

    Shares in the lithium miner tanked 4.4% to 76 cents at the time of writing as a result.

    The broker’s decision comes after it updated its estimates for Galaxy’s Mt Cattlin project, moderating production and the weak outlook for the commodity, which is made worse by the COVID-19 pandemic.

    Nearer-term challenges

    This is despite Germany and China increasing or extending subsidies for electric vehicles. Lithium is a key component used in the batteries of these automobiles.

    But Credit Suisse believes it will take time for these subsidies to make an impact on the demand-supply of the commodity.

    “Sustained demand growth will be needed to absorb supply chain inventory and latent production capacity as a precursor to improved pricing,” explained the broker.

    “We estimate concentrate inventory held by [Australian] producers at ~130kt, but production utilisation of only ~55%, meaning there is >1.4Mt latent concentrate supply, equivalent to over half of 2019 global lithium production.”

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post The latest ASX recommendation changes by top brokers appeared first on Motley Fool Australia.

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  • ABS reveals which industries (and ASX shares) may rebound hard after COVID-19

    Closeup of a keyboard with a shopping trolley icon and a credit card

    The Australian Bureau of Statistics (ABS) has revealed which industries (and ASX shares) could see a bounce after COVID-19.

    According to The Guardian reporting, the ABS is looking at Aussie spending habits during the coronavirus pandemic.

    The latest survey, conducted in mid-June, is about what Australians are going to spend money on once restrictions are loosened again.

    The Guardian quoted ABS head of Household Surveys, Michelle Marquardt, talking about people’s spending intentions: “a majority expected to increase their spending on recreational activities (74%), eating out (74%), private transport (73%), personal care (70%), childcare (66%) and public transport (55%).”

    What does this mean for ASX shares?

    Well it’s good to see that people do plan to spend more money when restrictions allow. It is spending that makes the economy tick.

    Recreational activities could mean a lot of different things. There are plenty of shares this could be applicable to such as: Ardent Leisure Group Ltd (ASX: ALG), Experience Co Ltd (ASX: EXP), Crown Resorts Ltd (ASX: CWN), Event Hospitality and Entertainment Ltd (ASX: EVT), Ingenia Communities Group (ASX: INA), Star Entertainment Group Ltd (ASX: SGR), Sealink Travel Group Ltd (ASX: SLK) and Village Roadshow Ltd (ASX: VRL).

    Eating out would probably benefit the food shares listed on the ASX like Domino’s Pizza Enterprises Ltd. (ASX: DMP), Collins Foods Ltd (ASX: CKF), Retail Food Group Limited (ASX: RFG) and Redcape Hotel Group Pty Ltd (ASX: RDC).

    You’d think that private transport would be good for shares like Ampol Ltd (ASX: AMP), Viva Energy Group Ltd (ASX: VEA) and Waypoint REIT Ltd (ASX: WPR).

    Increased spending on personal care would be good for shares like BWX Ltd (ASX: BWX), McPherson’s Ltd (ASX: MCP), Sigma Healthcare Ltd (ASX: SIG) and Australian Pharmaceutical Industries Ltd (ASX: API).

    It also looks like it would be good news for childcare related shares like G8 Education Ltd (ASX: GEM), Think Childcare Ltd (ASX: TNK) and Arena REIT No 1 (ASX: ARF).

    What about travel?

    People are also asked about their travel intentions. The ABS survey revealed that 55% were planning to go on a domestic holiday while less than a third were planning an international holiday.

    Of the people planning to take a domestic holiday, 20% intended to go within the following month and another 68% planned to go within the following six months. Most people aren’t thinking about an international holiday in the short-term. Of people thinking about an overseas holiday, 44% were thinking about doing it within six to 12 months and 31% were thinking about taking the holiday more than a year in the future.

    Shares like Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN) and Sydney Airport Holdings Pty Ltd (ASX: SYD) are obviously being disrupted by COVID-19 right now, but it’ll be pleasing for them that people are thinking about taking domestic holidays.

    Do any of these ASX shares look like buys?

    I think there’s a case for many of the shares hit by COVID-19 if you think about the long-term. Shares should be long-term investments. What happens over the next 12 months shouldn’t change your long­-term thinking about a business too much, unless it could go bust. I’m not sure about travel shares at today’s prices. The rising case numbers in Melbourne have hurt the prospect of the country being completely COVID-19 free this year, and may limit travel between Melbourne and the rest of the country for a bit longer.

    I do believe that shares like BWX, McPherson’s, API and Ingenia could be ones to watch over the next couple of years. I’m quite excited by the prospect of the continuing international earnings growth for BWX and McPherson’s.

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited and Webjet Ltd. The Motley Fool Australia owns shares of EXPERNCECO FPO. The Motley Fool Australia has recommended Collins Foods Limited, Crown Resorts Limited, Domino’s Pizza Enterprises Limited, and Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post ABS reveals which industries (and ASX shares) may rebound hard after COVID-19 appeared first on Motley Fool Australia.

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  • 3 exciting small cap ASX shares to add to your watchlist

    At the small end of the Australian share market, I believe there are a good number of shares with the potential to grow into much larger entities in the future.

    Three which I think ought to be on your watchlist right now are listed below. Here’s why I think they have very promising futures:

    Clover Corporation Limited (ASX: CLV)

    The first small cap to watch is Clover. It is a producer of ingredients such as omega-3 oils that go into infant formula, supplements, and baby food. Clover has been growing at a strong rate over the last few years thanks largely to increasing demand for ingredients from infant formula manufacturers. Pleasingly, I’m confident that its strong growth can continue over the coming years. Especially given favourable changes to ingredient requirements in a number of key markets.

    Mach7 Technologies Ltd (ASX: M7T)

    Another small cap share to add to your watchlist is Mach7. It is a medical imaging data management solutions provider which offers software that helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. Demand for its offering has been growing strongly, leading to Mach7 reporting a 158% increase in first half revenue to $9.1 million. Since then the company has announced the acquisition of Client Outlook. It is a leading provider of an enterprise image viewing technology and increases Mach7’s total addressable market from US$0.75 billion to US$2.75 billion.

    MNF Group Ltd (ASX: MNF)

    A final small cap to watch is MNF Group. It specialises in Voice over Internet Protocol (VoIP) technology, which is used to convert analogue audio signals into digital data that can be sent over the internet. Demand for VoIP services has been growing very strongly this year because of the pandemic and the work from home initiative. So much so, in April MNF Group was able to reaffirm its full-year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) of between $36 million and $39 million. 

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited, MACH7 FPO, and MNF Group Limited. The Motley Fool Australia has recommended MACH7 FPO and MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 exciting small cap ASX shares to add to your watchlist appeared first on Motley Fool Australia.

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  • Are you in your 20s? Here’s why I would buy these quality ASX shares

    social-media-young-people

    One advantage of investing in your 20s is that you can afford to take higher risks.

    This doesn’t mean you should start day trading your savings away, it just means you can invest in companies which might not be suitable for investors approaching retirement.

    This is because if you’re in your 20s, you have a lot of time to recover your losses if things don’t go to plan.

    Another advantage of investing in your 20s is the ability to benefit greatly from compounding.

    For example, a single $10,000 invested in the share market and earning a 9% return would grow to be worth ~$23,700 in 10 years. Whereas in 40 years it would be worth a massive ~$315,000.

    If you can then afford to invest $5,000 into the share market each year after year one (and earn the same return), you’ll have amassed a fortune of $2.15 million at the end of year 40.

    That certainly is a nice nest egg to retire on, with only a very limited outlay each year.

    With that in mind, here are three top ASX shares I think could be good options for investors in their 20s:

    Afterpay Ltd (ASX: APT)

    The first share that I think investors in their 20s ought to consider buying is this payments company. I believe it is well-positioned for growth over the next decade thanks to the growing popularity of buy now pay later with consumers and retailers and its international expansion opportunity.

    Bubs Australia Ltd (ASX: BUB)

    Another option to consider is Bubs. It is a goat’s milk-focused infant formula and baby food company which has been growing its top line at a rapid rate over the last couple of years. Pleasingly, I believe it still has a long runway for growth. Especially given its growing distribution footprint online in China and offline in Australian supermarkets. 

    Pushpay Holdings Group Ltd (ASX: PPH)

    A final option to consider is Pushpay. It is a provider of a donor management system, including donor tools, finance tools, and a custom community app to the faith sector. It has been growing at a rapid rate thanks to its leadership in a niche but lucrative market. I believe can continue its growth over the coming years thanks to its sticky product, the shift to a cashless society, and its industry-leading software.

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BUBS AUST FPO and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Are you in your 20s? Here’s why I would buy these quality ASX shares appeared first on Motley Fool Australia.

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  • These are the 3 reasons I own Pushpay shares

    Payment Technology

    I follow a few investing groups on Facebook was recently asked on one why I owned shares in fast-growing payments company Pushpay Holdings Ltd (ASX: PPH).

    It was a great question. The Pushpay share price has been rocketing this year, leaving some investors scratching their heads. Everyone invests for different reasons and for me Pushpay has the makings of a great long-term growth story.

    These are my 3 reasons why I think Pushpay is a winner:

    1. Pushpay is a ‘top dog’ in an important, emerging industry

    Pushpay’s software allows church attendees to make donations through mobile payments. The company was one of the first in the contactless payments space and in transforming the way people give money. Growth exploded and there were signs early on that Pushpay was becoming a dominant player in the niche.

    Becoming a ‘top dog’ has proven invaluable in 2020. The on-set of COVID-19 has made in-person church gatherings difficult. It has forced churches to find alternative ways to keep congregations connected, informed and the church funded. Pushpay’s perfect positioning helps to meet that need.

    2. Pushpay has a strong switching cost moat

    I want to own companies with strong economic moats and Pushpay, to me, is an example of a company with high switching costs.

    It becomes a time-consuming and disruptive process to change to a competing product once customers and the congregation are set up with the software and app. I think this sustainable advantage will help Pushpay retain customers and produce high rates of return over a long period.

    3. The business has a history of superb execution

    One of my initial arguments for owning Pushpay shares was that it was led by Co-founder and CEO, Chris Heaslip. A visionary leader, Heaslip had a history of delivering on the aggressive goals set for the company. Imagine my nervousness when both Chris Heaslip and fellow co-founder, Eliot Crowther exited the business in short order, selling down significant proportions of their shareholdings!

    Yet, even in the face of such massive management upheavals, the business has continued to thrive. To me, this is evidence of an extremely robust business model.

    Peter Lynch has a quote that says “Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.” Pushpay is certainly not being run by idiots, but having a highly effective business model means the company has escaped the ‘key person risk’ which can be common to start-ups.  

    Foolish takeaway

    My thesis for owning Pushpay shares centred around it being an early mover in an important, emerging industry with a strong economic moat. But the business model has proven to be incredibly robust and sturdy enough to endure a storm of management changes. In my view, these are markers of a great business and the type of companies I want to own in my portfolio.

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Regan Pearson owns shares of PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post These are the 3 reasons I own Pushpay shares appeared first on Motley Fool Australia.

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  • Why the Auteco Minerals share price has doubled today

    rocket shooting higher

    The Auteco Minerals Ltd (ASX: AUT) share price is flying today after the gold explorer released its maiden JORC Resource for its flagship project.

    At the time of writing, Auteco Minerals shares have skyrocketed 100% to 16 cents apiece. 

    About Auteco Minerals

    Auteco Minerals is an emerging mineral exploration company focused on advancing high-grade gold resources at the Pickle Crow Gold Project.

    The Pickle Crow project is located in the Uchi sub-province of Ontaria, Canada. The province hosts major projects such as Evolution Mining Ltd (ASX: EVN)’s 25-million ounce Red Lake gold complex, Newmont’s Musselwhite gold mine (5.7 million ounces), and First Mining’s Springpole project (4.7 million ounces).

    The Pickle Crow deposit was originally discovered in the early 1930s and commenced commercial production in 1935. Operating until 1966, the mine produced 1.5 million ounces of gold at an average grade of 16 grams per tonne (g/t) gold.

    What’s moving the Auteco share price?

    This morning, Auteco announced a maiden JORC 2012-compliant inferred resource of 830,000 ounces of gold at 11.6g/t gold for its Pickle Crow project.

    The resource is based on a review of the existing data at the project, including previous non-JORC estimates, and runs from the surface immediately adjacent to existing underground and surface infrastructure.

    The company noted that mineralisation remains open on all lodes along strike and at depth.

    “This maiden JORC Resource, which has been independently calculated, confirms Pickle Crow is a significant, high-grade deposit with immense growth potential,” said executive chair Ray Shorrocks.

    Auteco started its maiden drilling program at Pickle Crow last month. Since then, nine holes for 2,079 metres have been completed, with all assays pending analysis.

    What now?

    Based on visually-encouraging observations from the first few drill holes, Auteco has added a second drill rig and increased the initial drill program from 5,000 metres to 10,000 metres.

    “This is just the beginning of work at Pickle Crow,” said Mr Shorrocks.

    Looking forward, Mr Shorrocks said the company’s active exploration has three goals:

    1. Adding geological confidence to already identified areas of mineralisation that can be brought into the resource inventory;
    2. Extensions to the current known resources; and
    3. New discovery through step out exploration.

    Auteco Minerals shares last traded at 16 cents apiece, which gives the company a current market capitalisation of around $210 million.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why the Auteco Minerals share price has doubled today appeared first on Motley Fool Australia.

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  • 3 star ASX 200 shares for all types of investors

    asx shares

    The S&P/ASX 200 Index (ASX: XJO) is home to 200 of the biggest and brightest companies that Australia has to offer.

    But with so many options to choose from, it can be hard to decide which ones to buy. In order to narrow things down, I have picked out three top ASX 200 shares that I believe might appeal to certain investors.

    They are as follows:

    Appen Ltd (ASX: APX)

    If you’re a growth investor, then you might want to consider an investment in Appen. It is a tech company that prepares the data to go into artificial intelligence (AI) and machine learning models. This is a vital part of the process in creating successful models and is likely to mean that its services remain in demand for many years to come. Especially given how important these models are becoming for businesses and the high level of investment being made in them. Overall, I expect this strong demand to underpin above-average earnings growth for many years to come.

    Coles Group Ltd (ASX: COL)

    Income investors that are on the lookout for dividend shares might want to consider this supermarket operator. I believe Coles is well-placed to deliver solid earnings growth over the next decade thanks to its refreshed strategy, defensive business, and expansion opportunities. And with the company planning to pay out upwards of 90% of its earnings to shareholders, I feel this bodes well for its dividends in the future. At present I estimate that its shares offer a fully franked 3.9% FY 2021 dividend.

    Telstra Corporation Ltd (ASX: TLS)

    Finally, I think that Telstra would be a good option for value investors. At present the telco giant’s shares are changing hands for an estimated 19x full year earnings. I think this is great value given its increasingly positive outlook. After several very tough years, I believe a return to growth is on the cards in the coming years. This is thanks to rational competition, the easing of the NBN headwind, its material cost reductions, and the arrival of 5G internet. In addition to this, I’m confident its dividend cuts are over and that 16 cents per share will be sustainable from its cash flows for the foreseeable future.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd and COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Microsoft is giving up on retail

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

    customers inside and outside a Microsoft retail store

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

    Shortly after giving up on live-streaming, Microsoft (NASDAQ: MSFT) is doing likewise with retail. The company announced last week that it would be permanently closing all physical retail stores in a major strategic shift, thus ending a decade-long experiment in replicating Apple‘s (NASDAQ: AAPL) success in retail. The first Microsoft Store opened in October 2009, nearly 11 years ago.

    Here’s why the software giant is pulling the plug on its stores.

    Four locations will be repurposed

    Like many retailers, Microsoft stores have been crushed by the COVID-19 pandemic. Locations have been closed since March as a result of various virus-related lockdown orders, and none have reopened even as some local restrictions have eased. Employees have still been able to assist customers, including average consumers and enterprise customers, remotely with virtual training and support calls.

    Only four locations in London; New York City; Redmond, Washington; and Sydney will remain open, but they will be repurposed as Microsoft Experience Centers instead of traditional retail stores. Microsoft expects to eat a pre-tax charge of approximately $450 million, or $0.05 per share, in the second quarter.

    Microsoft told The Verge that it would not be laying off any employees as a result of the decision. Instead, those workers will transition to other corporate offices where they will remotely work on sales, training, and support. Accordingly, the aforementioned pre-tax charge should relate primarily to things like lease terminations and other associated costs instead of severance or termination benefits.

    Meanwhile, the enterprise software tech behemoth will invest heavily in its digital storefronts — which Microsoft says collectively have 1.2 billion monthly visitors — to facilitate virtual interactions.

    “Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” Microsoft exec David Porter said in a statement. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

    Chasing Apple

    It was always clear that Microsoft was hoping to emulate Apple. The stores were designed to look almost identical to Apple stores, including the use of minimal aesthetics and overall layout. Microsoft often positioned them in close proximity to Apple stores. But Microsoft was never able to achieve the same level of success. Foot traffic was always uninspiring, and the company has never provided much financial detail around the segment.

    Apple, on the other hand, often tops retail rankings for sales per square foot. Apple is trying to reopen its stores as local conditions permit, but the Mac maker has had to reclose stores in certain states where coronavirus cases are spiking.

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

    5 stocks under $5

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

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

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Evan Niu, CFA owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Microsoft is giving up on retail appeared first on Motley Fool Australia.

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

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  • Here are 2 easy ways to invest in quality international shares on the ASX

    international shares

    If you’re wanting to add a little exposure to international markets to your portfolio, then the simplest way to do this is by investing in exchange traded funds (ETFs).

    This is because there are ETFs out there that give investors access to whole indices, sectors, themes, and countries.

    Two which I think are good options for investors wanting to invest in international shares are listed below:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The BetaShares Asia Technology Tigers ETF could be a great option for investors looking for exposure to the Asian market. This ETF aims to track the performance of an index comprising the 50 largest technology and ecommerce shares in Asia (excluding Japan). This includes the likes of Alibaba, Tencent, Baidu, and JD.com.

    BetaShares notes that the ETF provides investors with diversified exposure to a high-growth sector that is under-represented in the Australian share market. Given how these companies are rapidly changing the lives of billions of people in the region, I believe the fund is well-placed to generate strong returns over the next decade and beyond.

    BetaShares NASDAQ 100 ETF (ASX: NDQ)

    But if you’re more interested in gaining exposure to the U.S. share market, then you might want to consider the BetaShares NASDAQ 100 ETF. This fund gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. This means investors will be buying a piece of household names such as Amazon, Apple, Facebook, Netflix, and Starbucks through just a single investment.

    Given the positive long term outlooks of many of the companies on the index, I believe the BetaShares NASDAQ 100 ETF could provide stronger returns than the ASX 200 over the next decade. This has certainly been the case over the last five years, with the ETF generating an average return of 20.54% per annum.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

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

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Here are 2 easy ways to invest in quality international shares on the ASX appeared first on Motley Fool Australia.

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