Tag: Motley Fool

  • Is there more bad news in store for BNPL shares like Zip, with Macquarie analysts ‘becoming more cautious’?

    Upset woman with her hand on her forehead, holding a credit card.Upset woman with her hand on her forehead, holding a credit card.

    Shares in Zip Co Ltd (ASX: Z1P) have weakened in 2022 and are now trading at 52-week lows as trading resumes this week.

    With a 71% loss this year to date, it’s no wonder why investors are shying away from the BNPL sector and shunning names like Zip.

    TradingView Chart

    More bad news to come for the Zip share price?

    Not helping the situation is newly-acquired Block – nee Afterpay – reporting extensive losses in its interim results last week.

    Bought on a hefty sum of $39 billion (Australia’s largest ever public buyout), Block’s share price fell immediately after the purchase.

    Zip Co when ahead an then purchased BNPL peer Sezzle, Inc. a short time afterwards, albeit at a shave of the price.

    In 2022 cash earnings are becoming more important than ever, and from its consolidated statement of income, Afterpay printed a pre-tax loss of $502 million for the half year to 31 December 2021 – no improvement from a circa. $76 million loss last year.

    Analysts at Macquarie have become less constructive on the sector and have noticed some shifting trends amongst consumers.

    It believes there are “red flag[s] for the BNPL industry” based on its assessment of website visits – a key driver of growth, analysts say.

    “This is the first time we’ve seen negative growth since tracking the data series,” it wrote in a recent note to clients.

    “We consider BNPL more of a customer acquisition tool, and in the case of declining customer numbers the value of BNPL diminishes.”

    Macquarie values Zip $1.85 and urges its clients to sell, alongside 45% of coverage, according to Bloomberg data.

    Its average price target is $2.95, however, helped by bullish positions from Ord Minnett and Jarden valuing Zip at $4 and $5.75 apiece respectively.

    Hence the sentiment appears mixed amongst those analysts covering the company, but either way Zip has a long ways to go before its share price returns to former highs.

    In the last 12 months the Zip share price has fallen more than 86% into the red.

    The post Is there more bad news in store for BNPL shares like Zip, with Macquarie analysts ‘becoming more cautious’? appeared first on The Motley Fool Australia.

    These 5 Cheap Shares Could Be Set For Huge Gains (FREE REPORT)

    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 find out the names of these stocks in the FREE stock report.

    *Extreme Opportunities returns as of February 15th 2021

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    Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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 Bruce Jackson.

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  • The Webjet share price has dropped 9% in six months. Is now the time to pounce?

    A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls

    A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price fallsThe Webjet Limited (ASX: WEB) share price has fallen by 9% over the past six months. Could it be time to go for the ASX travel share?

    Some investors seem to think so, since 11 April 2022 the Webjet share price has risen by more than 10%.

    As one of the ASX’s travel shares, it has been heavily impacted by COVID-19 and the related effects.

    However, the analysts now think that it could be a reopening idea to think about.

    Buy ratings on the Webjet share price

    Multiple brokers now call Webjet a buy. Last week, Citi called the Webjet share price a buy, with a price target of $6.50. It thinks that the business model will allow its profit to scale quickly, with the company capable of taking market share. Management has talked up this potential.

    Based on a return to profitability in FY23, the Webjet share price is valued at 33x FY23’s estimated earnings, according to Citi.

    Ord Minnett also thinks that the Webjet share price is a buy, with a price target of $7.51. That implies a potential rise of almost 30%. This broker is also expecting a medium-term recovery for Webjet, with the potential to capture an increased share of the market.

    The latest update

    It’s been a while since the latest update from the company, which was the FY22 first half result.

    Management said that the business was turning around as global travel markets started to reopen. It pointed to positive working capital delivering $3.5 million per month of a cash surplus.

    It said that WebBeds had been profitable since July 2021, with costs down 30% compared to pre-COVID and it was on track to be 20% more cost-efficient at scale. The November 2021 total transaction value (TTV) was 63% of pre-COVID volumes, before many key markets had reopened.

    The Webjet online travel agency (OTA) segment returned to profitability in October 2021.

    It also said it was seeing a rapid return to high booking volumes as markets reopened. The third quarter was tracking ahead of the second quarter.

    Webjet noted that it has expanded its geographic presence with WebBeds in the “key” North American market, added “significant” domestic inventory globally, and signed a range of new domestic and OTA customers. This means it has a “materially larger” opportunity for growth than was targeted before COVID-19.

    The ASX travel share also said that Webjet OTA was positioned for growth and has a “genuine opportunity” to increase market share as consumers shift to buying online. It also noted that the innovations offered by the Trip Ninja technology would play a key role in growing market share of the international flights market.

    Webjet said that the opportunities are “significant” with pent-up global demand. It thinks it will be back at pre-COVID booking volumes by the second half of FY23.

    Webjet share price snapshot

    While Webjet has dropped 9% over the last six months, it’s up around 8% since the start of the year. However, the Webjet share price remains heavily down since the pre-COVID price.

    The post The Webjet share price has dropped 9% in six months. Is now the time to pounce? appeared first on The Motley Fool Australia.

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

    Before you consider Webjet, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet 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 are better buys.

    *Returns as of January 13th 2022

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    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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • What sort of dividend yield do Santos shares currently trade on?

    ASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy sharesASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy shares

    The Santos Ltd (ASX: STO) share price has been powering ahead since the beginning of the calendar year.

    This comes as the price for commodities has surged in recent times following the Russian war in Ukraine.

    At Thursday’s market close, the energy producer’s shares finished 1.1% higher to $8.19 apiece.

    When looking at year to date, its shares have risen by almost 30%.

    What’s driving the Santos share price higher?

    It seems investors are optimistic about the Santos share price, considering its 8% gain over the past month.

    Sentiment has strengthened across the sector amid the regional war playing out on Europe’s doorstep. With a possible embargo on Russian oil from the West, this could lead to demand further outpacing supply.

    In its full year results released in February, Santos reported revenue of US$4.71 billion, up 39% over the prior corresponding period.

    The robust performance was driven by production of 92.1 mmboe (million barrels of oil equivalent) and sales volumes of 104.2 mmboe.

    Higher oil and LNG (liquified natural gas) prices were realised along with the 3 weeks contribution from Oil Search’s assets. The latter added weight to Santos’ book on the final stretch of the FY21 period.

    Overall, the company posted an underlying net profit after tax (NPAT) of US$946 million, up 230% year-on-year.

    Santos noted that it expects to ramp up production of 100 to 100 mmboe in the new financial year. Furthermore, sales volumes is forecasted to be in the range of 110 to 120 mmboe.

    Santos’ dividend yield

    Santos paid a fully franked final dividend of US 8.5 cents per share to shareholders in March.

    On top of this, the company rewarded shareholders with an interim dividend payment of US 5.5 cents apiece last earnings season.

    When factoring in the current share price, this gives Santos a trailing dividend yield of 2.32%.

    Santos commands a market capitalisation of roughly $27.79 billion, with more than 3.38 billion shares on its books.

    The post What sort of dividend yield do Santos shares currently trade on? appeared first on The Motley Fool Australia.

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

    Before you consider Santos, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos 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 are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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  • Why is the Medibank share price trailing NIB over the past year?

    Two businesspeople in suits run, one chasing the other.Two businesspeople in suits run, one chasing the other.

    The Medibank Private Ltd (ASX: MPL) share price has performed well over the last 12 months, but it’s also been bested by one of its health insurance peers.

    The Medibank share price is currently 9.03% higher than it was this time last year, having finished last week’s trade at $3.14.

    The NIB Holdings Limited (ASX: NHF) share price, however, has surged an impressive 20.07% over the last 12 months. It’s currently valued at $6.52.

    For context, the S&P/ASX 200 Index (ASX: XJO) has gained just 6.48% since this time last year.

    So, what pushed NIB’s stock to outperform that of Medibank over the period? Let’s take a look.

    Why has the NIB share price outperformed Medibank?

    NIB’s stock pulled ahead of Medibank’s this time last year and managed to hold on to that lead for much of the last 12 months.

    That push was brought on by a business update and full-year outlook released by NIB in late April.

    Then, the company returned to providing guidance after scrapping the notion in 2020 amid the COVID-19 pandemic.

    And it was good guidance, indeed, boosting the NIB share price 10.2% higher.

    Though, the NIB share price handed back that gain in August on the release of the company’s full-year results.

    The Medibank share price’s year was far less dramatic. And some brokers seemingly expect the gap between the two stocks’ performance to close.

    The Motley Fool Australia’s Zach Bristow reported JP Morgan favoured Medibank’s shares over those of NIB in January.

    Additionally, Credit Suisse slapped Medibank’s shares with a price target of $3.50 and a ‘buy’ rating, my colleague, Tristan Harrison, reported in March.

    Finally, analysts at Morgans upgraded Medibank’s stock to an ‘add’ with the expectation it will reach $3.43 in late February, according to reporting by James Mickleboro.

    So far this year, the Medibank share price has slipped 8.45% while the ASX 200 has slumped 0.87%.

    At the same time, the NIB share price has tumbled 10.44%.

    The post Why is the Medibank share price trailing NIB over the past year? appeared first on The Motley Fool Australia.

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

    Before you consider Medibank, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Medibank 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 are better buys.

    *Returns as of January 13th 2022

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    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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 NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why has the Woolworths share price outperformed Wesfarmers so far in 2022?

    woman in an office with their fists up after winningwoman in an office with their fists up after winning

    The Woolworths Group Ltd (ASX: WOW) share price has continued to climb in recent times.

    In fact, on Thursday’s market close, the conglomerate’s shares edged 0.58% higher to $38.48, closing in on its 2022 high.

    On the other hand, Wesfarmers Ltd (ASX: WES) shares have struggled to hold ground. Its shares hit a 52-week low of $47.45 in late February and are travelling sideways since.

    In contrast, Wesfarmers shares finished 0.10% lower to $48.33 at the end of Thursday’s trading session.

    When looking at year to date, Woolworths shares are up almost 2%, while Wesfarmers shares are down more than 18%.

    What’s the difference between the two conglomerate giants?

    While COVID-19 created one of the most challenging six months for Woolworths, it ended the period with positive trading momentum.

    Learning from the Delta outbreak, management swung its action plans in place dealing with isolating employees and supply chain issues.

    As a result, group sales grew strongly in the first half by 8% to $31,894 million.

    In contrast, Wesfarmers reported robust earnings for its Chemicals, Energy and Fertilisers business, as well as Bunnings. However, this was offset by slower sales across Officeworks and the Kmart group. The latter had been impacted by temporary store closures between July and October 2021.

    Wesfarmers management noted that the entire group’s retail businesses experienced around 34,000 store trading days affected by trading restrictions. This represented almost 20% of total store trading days for the first half.

    In addition, operating costs and stock availability were impacted by ongoing supply chain disruptions and elevated team member absenteeism.

    Looking at the top line, Wesfarmers recorded a 0.1% loss to $17,758 million for the H1 FY22 period.

    Is the Woolworths share price a buy?

    Since the release of its half year results, a number of brokers have weighed in on the company’s shares.

    Citi analysts upgraded their outlook on Woolworths shares to buy from neutral, with a price target of $40.30 per share.

    Following suit, Jefferies also had a bullish outlook, adding 8.1% to $40.

    Based on the current Woolworths share price of $38.48, this implies a slight upside of roughly 4%.

    Woolworths has a price-to-earnings (P/E) ratio of 5.86, with a trailing dividend yield of 2.44%.

    The post Why has the Woolworths share price outperformed Wesfarmers so far in 2022? appeared first on The Motley Fool Australia.

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

    Before you consider Woolworths, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths 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 are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Aaron Teboneras 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 owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Broker tips Xero share price to rise 30% due to ‘compelling global growth story’

    world's biggest companies represented by one person holding cityscape and another holding earth in hands

    world's biggest companies represented by one person holding cityscape and another holding earth in handsThe Xero Limited (ASX: XRO) share price has been having a very tough year.

    Weakness in the tech sector has led to the cloud accounting platform provider’s shares losing 30% of their value in 2022.

    While this is disappointing, it could be a buying opportunity for investors according to analysts at Goldman Sachs.

    This morning the broker spoke very positively about the company’s future and noted that it sees a lot of value in the current Xero share price.

    What did the broker say about the Xero share price?

    According to the note, Goldman Sachs has retained its buy rating with a slightly trimmed price target of $133.00.

    Based on the current Xero share price of $102.78, this implies potential upside of almost 30% for investors over the next 12 months.

    Goldman commented: “Following the recent underperformance (absolute/relative), we see an attractive entry point into what is a compelling global growth story and our preferred large cap technology name in ANZ.”

    What else did the broker say?

    Goldman has been speaking with accountants and it appears pleased with the feedback it was given.

    The broker explained: “Our accountant channel checks provided positive feedback for Xero’s offering in APAC/UK, with room for improvement in the US/RoW, noting the software enables operating efficiency, new customer wins, fee uplift and increases retention (outperforming customer churn). However, on app store fees, accountant partners remain cautious that it may disrupt the open API ecosystem.“

    In addition, its analysts highlight recent federal budget tailwinds (cloud accounting expensing) and high frequency data points.

    In respect to the latter, Goldman said: “High frequency data points highlight (1) Xero has had positive app download momentum in USA/RoW during 2H22; (2) Xero vacancies have normalised into 2H22 post flagged investment at the FY21 result; (3) app integrations have slowed marginally since introducing fees in Aug-21; while (4) PH/HK/ZA have accelerated growth in accountant partners (UK/Aus remain the largest channels).”

    All in all, the broker has seen nothing to dampen its bullish view on the Xero share price.

    The post Broker tips Xero share price to rise 30% due to ‘compelling global growth story’ appeared first on The Motley Fool Australia.

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

    Before you consider Xero, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Xero 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 are better buys.

    *Returns as of January 13th 2022

    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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Broker says Bank of Queensland share price is great value

    A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle

    A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle

    The Bank of Queensland Limited (ASX: BOQ) share price was sold off last week.

    This followed a negative reaction to the regional bank’s half year results release.

    This latest decline means the Bank of Queensland share price is now down 14% over the last six months.

    Is the Bank of Queensland share price good value now?

    According to a note out of Goldman Sachs, its analysts believe the recent weakness in the Bank of Queensland share price has opened up a buying opportunity for investors.

    In response to its half year results, the broker has retained its buy rating but trimmed its price target slightly to $9.34.

    Based on the current Bank of Queensland share price of $7.99, this implies potential upside of approximately 17% for investors over the next 12 months.

    Goldman is also expecting the bank’s shares to provide investors with a fully franked 5.6% dividend yield over the same period. If we add this into the equation, the total return stretches to over 22%.

    What did Goldman say about the result?

    The broker appeared to be reasonably happy with Bank of Queensland’s half year result. Though, while the bank smashed its earnings estimates, it notes that this was due almost entirely to lower bad debts.

    Goldman explained: “BOQ’s 1H22 cash earnings were up 14% on pcp to A$268 mn, 17% above previous GSe, driven by a much better-than-expected performance on BDDs. As such, PPOP [pre-provisioning operating profit] was only 0.9% higher than our estimates, driven by better than expected expenses, partially offset by lower margins. BOQ announced an interim dividend of A22¢, which was in line with GSe (with a 2.5% discounted DRP), while CET1 was 9.7% (vs GSe 9.5%).”

    Why are its shares good value?

    Goldman notes that the Bank of Queensland share price is trading at a material discount to peers and historical averages.

    It said: “BOQ’s 12-month forward PER (ex-dividend adjusted) is trading at a 30% discount to the sector versus a 15-year average discount of 2%.”

    In addition, the broker highlighted: “Our Buy rating on BOQ is predicated on i) BOQ’s cost performance and its continued delivery of ME Bank synergies, which have been accelerated and increased, ii) continued strong above system volume growth, supplemented by its transition to digital platforms and its associated process improvements.”

    The post Broker says Bank of Queensland share price is great value appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bank of Queensland right now?

    Before you consider Bank of Queensland, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland 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 are better buys.

    *Returns as of January 13th 2022

    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 Bruce Jackson.

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  • Keen to bag the Washington H Soul Pattinson dividend? Read this

    a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

    Many investors might be looking forward to the next dividend payment from the Washington H Soul Pattinson and Co Ltd (ASX: SOL) share price. Not because this ASX conglomerate is about to pay out a monstrous dividend. But because 2022 will mark the 22nd year in a row that ‘Soul Patts’ shares will pay out a dividend that has been higher than the previous year’s payment. If all goes well, of course. Such a streak is unmatched on the ASX.

    As it happens, Soul Patts’ first dividend of the year will hit investors’ bank accounts next month, on 13 May, to be precise. But if an investor wants to be in line to receive this payment, they had better be fast. That’s because Soul Patts trades ex-dividend tomorrow. That in effect means that any shareholder who owns Soul Patts shares as of today is eligible for this payment. But come tomorrow, new shareholders will miss out this time.

    When a share trades ex-dividend, we normally see the value of the dividend leave the company’s share price for this reason. So don’t be surprised if we see a share price dip for Soul Patts in tomorrow’s trading.

    Soul Patts shares primed to pay dividends

    So what can shareholders expect? Well, this payment will be the company’s interim dividend for FY 2022. It will be worth 29 cents a share, and come with full franking credits. Twenty-nine cents a share is a healthy 11.5% increase on last year’s interim dividend of 26 cents per share. Shareholders will have to receive this dividend in cash seeing as Soul Patts doesn’t currently offer a dividend reinvestment plan (DRIP).

    Soul Patts’ last dividend was the final payment for FY 2021, which came to 36 cents per share. Putting this payment with the one investors will receive next month would give Soul Patts shares a forward yield of 2.25% on the last Washington H Soul Pattinson share price.

    The post Keen to bag the Washington H Soul Pattinson dividend? Read this appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Soul Patts right now?

    Before you consider Soul Patts, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Soul Patts 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 are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • AMP share price on watch amid Collimate Capital sale talks with Dexus and ‘multiple’ parties

    two business men sit across from each other at a negotiating table. with a large window in the background.

    two business men sit across from each other at a negotiating table. with a large window in the background.

    The AMP Ltd (ASX: AMP) share price will be one to watch on Tuesday morning.

    This follows the release of an announcement by the financial services company.

    Why is the AMP share price on watch?

    The AMP share price will be in focus today after the company confirmed speculation that it has been having discussions with “multiple” parties over a potential divestment.

    According to the release, AMP is in discussions with these parties, which include DEXUS Property Group (ASX: DXS), in relation to the potential sale of the assets and businesses of Collimate Capital.

    Collimate Capital is the new name of the company’s private markets business, which AMP is currently in the process of demerging. It is a global asset manager and a leader in real assets.

    AMP chose the name Collimate as it speaks to its “vision, foresight, and expertise in long-term value creation for clients.” The word is a scientific term meaning “to make rays of light or particles parallel” and is used as a metaphor for alignment, clarity, and precision.

    Potential sale

    No details have been provided in respect to what Dexus or another suitor would be willing to pay for the business. Management has only stated that it will seek to maximise value for shareholders, whether that be through a sale or a demerger.

    It commented: “AMP will continue these discussions with a focus on maximising the value for shareholders by getting the best outcome for clients and employees. While these discussions continue, AMP remains in a position to pursue either a sale or demerger of these businesses.”

    Dexus has also responded to the speculation, confirming that it is in talks with AMP.

    It said: “Dexus confirms that it has been engaged in discussions with AMP regarding a possible transaction. Dexus notes that it regularly reviews strategic opportunities that have the potential to enhance Security holder value and at this stage, there is no certainty that a transaction will result.”

    Both AMP and Dexus intend to update the market as necessary in line with their continuous disclosure obligations.

    The post AMP share price on watch amid Collimate Capital sale talks with Dexus and ‘multiple’ parties appeared first on The Motley Fool Australia.

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

    Before you consider AMP, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP 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 are better buys.

    *Returns as of January 13th 2022

    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 Bruce Jackson.

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  • Is it time to buy the iShares S&P 500 ETF?

    Four ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their facesFour ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces

    It has been a tricky time for the iShares S&P 500 ETF (ASX: IVV). It has fallen by 10.3% in 2022 to date. But could it be time to invest in the exchange-traded fund (ETF)?

    One of the useful things about an ETF is the diversification that it can provide in a single investment.

    What’s so good about an S&P 500 fund?

    Legendary investor Warren Buffett once said about S&P 500 funds: “I recommend the S&P 500 index fund and have for a long, long time to people.”

    He has also said: “For most people, the best thing to do is to own the S&P 500 index fund.”

    Let’s have a look at what is in the ETF.

    Sector diversification

    The ASX is dominated by two sectors: resources and financials.

    But the iShares S&P 500 ETF has different weightings, with those exposures to sectors that generally demonstrate more long-term growth.

    Looking at the weightings as of 13 April 2022: IT had a 26.9% weighting, healthcare had a 14.1% weighting, consumer discretionary had an 11.9% weighting, and financials had an 11% weighting. Those are the sectors that had a double-digit weighting.

    iShares S&P 500 ETF holdings

    As the name suggests, there are meant to be 500 different businesses in the portfolio.

    All of them are listed in the US. However, there are plenty of them that have international sources of earnings.

    For example, Alphabet (NASDAQ: GOOG), (NASDAQ: GOOGL)’s YouTube and Google are available in most countries worldwide. Microsoft (NASDAQ: MSFT)’s office tools and software are used across the world.

    There are plenty of world leaders in the portfolio.

    Aside from Alphabet and Microsoft, there are names like these in the portfolio: Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), Meta Platforms (NASDAQ: FB), Tesla (NASDAQ: TSLA), Nvidia Corporation (NASDAQ: NVDA), Berkshire Hathaway, Unitedhealth, Johnson & Johnson, JPMorgan Chase, Procter & Gamble, Exxon Mobil, Visa, Home Depot, Mastercard, Pfizer, Costco, Coca Cola, Broadcom, Walt Disney and McDonald’s.

    Annual management fee

    Another advantage the iShares S&P 500 ETF can provide is its extremely low management fee.

    The lower the fees, the more of the returns that stay in the hands of the investor.

    Blackrock provides this ETF with an annual management fee of 0.04%. This is one of the cheapest ETFs on the ASX.

    The post Is it time to buy the iShares S&P 500 ETF? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in iShares S&P 500 ETF right now?

    Before you consider iShares S&P 500 ETF, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and iShares S&P 500 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 are better buys.

    *Returns as of January 13th 2022

    More reading

    John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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. owns and has recommended Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, Mastercard, Meta Platforms, Inc., Microsoft, Nvidia, Tesla, Visa, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Johnson & Johnson and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Mastercard, Meta Platforms, Inc., Nvidia, Walt Disney, and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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