Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) has performed strongly on the back of a roaring rise of ASX bank shares like Commonwealth Bank of Australia (ASX: CBA). When the economy improves, I think these ASX shares could be good performers in a potential bull market.

Arguably, we’re already in a bull market – in the 12 months to 29 February 2024, the MSCI World Index went up 25.6%.

However, there are some stocks where the strength and confidence of the economy significantly influence their earnings. These are three stocks that I think could rise if the economy improves.

BHP Group Ltd (ASX: BHP)

BHP is the largest mining business in the world, with significant exposure to commodities like iron ore and copper.

When the economy is stronger and businesses and households are more confident, it could lead to more demand for BHP’s commodities, increasing the prices of these commodities and boosting profitability.

The iron ore price has weakened to around US$100 per tonne, but a recovery in the global economy could help increase demand from China (which is a major manufacturer of the world’s goods).

As for copper, ongoing investments around the world in decarbonisation and electrification could lead to a stronger copper price over time.

As the ASX’s biggest company, if there’s going to be a bull market for the ASX 200, I think BHP will be an important contributor.

Macquarie Group Ltd (ASX: MQG)

The ASX bank share sector has soared – Macquarie shares have gone up too, up 19% in six months.

The Macquarie Asset Management division is already doing well from the strong asset prices. I think some of the company’s divisions are primed to see a recovery in performance. The investment banking division (Macquarie Capital) may benefit if there are more initial public offerings (IPOs) and capital raisings.

Macquarie’s commodities and global markets (CGM) division saw a big decline in profitability in its recent result, so an improvement in the economy could be a boost for profit in this segment.

It’s one of the biggest companies on the ASX and could become an even larger part of the ASX 200 if it does well and leads a bull market charge.

Corporate Travel Management Ltd (ASX: CTD)

The ASX share has seen a recovery from the bad times of COVID-19 – travel has returned strongly.

However, some companies and governments may be looking to save on costs in the short term amid the inflationary environment. The company referred to a negative $15 million impact to earnings before interest, tax, depreciation and amortisation (EBITDA) in the second quarter of macroeconomic issues.

The Corporate Travel Management share price is down around 20% from 29 January 2024, but I think there’s plenty of scope for it to recover, particularly with profit projected to increase in FY25 and FY26.

According to the projection on Commsec, the Corporate Travel Management share price is valued at under 14 times FY26’s estimated earnings.

The post 3 ASX shares I think will lead the next bull market charge appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income
• The BHP share price was surprisingly resilient in March. Now what?
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy right now
• 13 ASX 200 shares at 52-week highs

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

from The Motley Fool Australia https://ift.tt/OPBG0fn

Some ASX shares are exposed to very supportive tailwinds, which can be helpful for earnings and potentially the share price as it plays out.

The share prices I’m going to refer to have already gone on strong runs. I’m not saying the below two stocks are cheap – but they could keep rising over the long term because of that tailwind support.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia and New Zealand. As the saying goes, there are only two things certain in life – death and taxes. And we can’t invest in the Australian Taxation Office (ATO).

Funeral providers are in a very defensive industry, which means the company may be able to generate a consistent base level of earnings each year, depending on the number of funerals that are performed each year.

According to the Australian Bureau of Statistics (ABS), death volumes are expected to increase by 2.5% per annum from 2023 to 2030 and 2.9% from 2030 to 2040.

The average revenue per funeral is also increasing for the ASX share – it rose by 4.5% in the FY24 first-half period to $6,630.

A combination of more funerals and more revenue per funeral can help the company’s organic revenue growth. It’s also steadily growing by making acquisitions which can increase its geographic presence.

According to the projections on Commsec, it’s predicted to grow its earnings per share (EPS) by 23% between FY24 and FY26.

Goodman Group (ASX: GMG)

Goodman is one of the biggest businesses on the ASX, with a market capitalisation of $63 billion.

It has become a huge ASX share by developing industrial property estates around the world. There is growing demand for industrial property because of the importance of logistics for businesses and the long-term growth of e-commerce (which requires distribution centres).

The large demand for industrial property is helping drive the rental income higher, boosting the business’ operating profit.

One of the most exciting shifts by the business is that it’s now planning to become heavily involved in the data centre space. In the recent FY24 first-half result, it said it had made significant progress on advancing and expanding its global data centre power bank – “securing power and planning, commencing infrastructure and working with customers on optimal delivery models that best suit their needs”. It said it has reached 4GW.

Its total work in progress (WIP) is $12.9 billion, with a development yield on cost of 6.7%, with data centre projects representing 37% of WIP.

The ASX share said that “data centres are expected to be a key area of group for the group” and have “attractive development margins on existing and new projects”.

NAOS Asset Management recently shared two quotes about data centres. Stuart Gibson, the co-CEO of ESR Group Ltd (the largest real estate manager in the Asia Pacific region) said:

The entire Asia Pacific region is becoming a really attractive market for data centre development and is expected to remain so for decades to come, given the explosion in data processing demand in this part of the world.

Yukio Kani, CEO of JERA Co (Japan’s largest power provider) recently said:

It’s [data centre power requirements] a very hungry caterpillar.

The post I think these 2 ASX shares could make strong long-term buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top ASX shares to buy in April 2024
• Here’s how the ASX 200 market sectors stacked up last week
• 13 ASX 200 shares at 52-week highs
• Here are the top five ASX 200 shares in Macquarie’s model growth portfolio
• Here are the top 10 ASX 200 shares today

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 Goodman Group. The Motley Fool Australia has recommended Goodman Group and Propel Funeral Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MzqkpU2

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is having a subdued start to the shortened week and has just slipped into the red. At the time of writing, the benchmark index is down slightly to 7,896.3 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising on Tuesday:

Austal Ltd (ASX: ASB)

The Austal share price is up 11% to $2.44. Investors have been buying this shipbuilder’s shares after it received and rejected a takeover offer from South Korean chaebol, Hanwha. It made an unsolicited, conditional, and non-binding indicative proposal to acquire Austal by way of a scheme of arrangement for $2.825 cash per share. This represented a 28.4% premium to where the Austal share price ended last week. However, Austal is concerned that it would not be able to obtain the relevant regulatory approvals in Australia and the USA to enable it to proceed.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 67% to 93 cents. This is despite there being no news out of the biotechnology company this morning. Though, it is worth highlighting that the company’s shares on Wall Street rocketed higher overnight. So, this gain appears to be in response to that. Investors have been fighting to get hold of Mesoblast’s shares since the US FDA gave one of its stem cell therapies a big boost last week. Its shares are now up over 150% in the space of a week.

Novonix Ltd (ASX: NVX)

The Novonix share price is up almost 5% to 90 cents. This morning, this battery materials and technology company announced that it has been recommended to receive a major tax credit from the United States Government. Novonix looks set to receive US$103 million (A$159 million) in tax credits to support production of critical battery materials from its Riverside facility in Chattanooga, Tennessee.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up 5% to $1.44. This has been driven by news that the uranium miner has commenced production at the Langer Heinrich Mine (LHM) in central western Namibia. Both uranium concentrate production and drumming were achieved at LHM on 30 March, which means that the company will soon be able to capitalise on the sky high prices that uranium is currently commanding. Paladin Energy plans to provide guidance for key FY 2025 LHM operational parameters in the second half of the year.

The post Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Blast off! Mesoblast share price surging 60%
• Novonix share price booming 5% on cracking tax credit
• Paladin Energy share price storms higher on big uranium production news
• Guess which ASX 300 stock is jumping 9% after receiving a takeover offer
• Top ASX shares to buy in April 2024

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 Austal. 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.

from The Motley Fool Australia https://ift.tt/qh5rTS0

Banking $2,000 a month in passive income from S&P/ASX 200 Index (ASX: XJO) dividend shares is far more achievable than you may think.

The ASX 200 offers numerous quality blue-chip companies with lengthy track records of reliable dividend payouts.

And unlike most international stock markets, like in the United States, many of these companies pay fully franked dividends. That will provide you with credit for the corporate taxes these companies have already paid on their profits.

Meaning, investors should be able to hold onto more of that passive income at tax time.

Before looking at my three top ASX 200 dividend shares to consider buying now, a few important points.

Diversification and trailing yields

First, please note that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors. While you can study forecast yields as well, those are essentially just analysts’ best guesses at what the future may bring.

Second, while I’ll look at three top ASX 200 shares to buy for passive income, an ideal income portfolio should hold considerably more than three stocks. Proper diversification among various sectors will reduce the risk of your income taking an unexpectedly big hit if any particular company or sector comes under pressure.

With that said…

A $2,000 monthly passive income from ASX 200 dividend shares

My first stock to buy for $2,000 a month in passive income is BHP Group Ltd (ASX: BHP).

The ASX 200 iron ore miner paid a final fully franked dividend of $1.251 per share on 28 September. The interim dividend of $1.096 per share was paid right before Easter, on 28 March.

That equates to a full-year (rounded) payout of $2.35 per share. At the recent BHP share price of $45.05 a share, BHP trades on a fully franked trailing yield of around 5.2%.

My second stock to buy now for passive income is ASX 200 coal share New Hope Corp Ltd (ASX: NHC).

New Hope paid a final fully franked dividend of 30 cents per share on 7 November. The interim dividend of 17 cents per share will be paid on 1 May. (New Hope stock trades ex-dividend on 15 April.)

At the recent New Hope share price of $4.74, the ASX 200 dividend stock trades on a fully franked yield (partly trailing, partly pending) of 9.9%.

This brings me to my third top passive income share, ASX 200 bank stock National Australia Bank Ltd (ASX: NAB).

NAB shares delivered a fully franked interim dividend of 83 cents per share on 5 July. The bank paid a final dividend of 84 cents per share on 15 December, for a full-year payout of $1.67 a share.

At the recent NAB share price of $34.63, that equates to a fully franked trailing yield of 4.8%.

How much to buy?

If I were to invest an equal amount in each of these ASX 200 dividend shares, I’d earn an average yield of 6.6%.

For my $2,000 monthly passive income (or $24,000) a year, I’d need to invest $363,636 today.

That should enable me to withdraw that monthly passive income without touching the capital.

I’ll also be hoping for share price gains to help turbo-charge these returns.

And if I don’t have that much money to invest in one go, that’s fine too. I can always invest smaller amounts every month and let the magic of compounding help propel me to my goal in good time.

Now, as always, before investing in these ASX 200 dividend shares for passive income, or any other stocks, be sure to do your own thorough research first.

If you don’t have the time, or are uncomfortable with that, reach out to an appropriate professional for some expert advice.

The post 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The BHP share price was surprisingly resilient in March. Now what?
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy right now
• Here are the top 10 ASX 200 shares today
• Why it’s a great day to own BHP shares

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.

from The Motley Fool Australia https://ift.tt/l8VwIQW

It’s been a fairly happy day for the S&P/ASX 300 Index (ASX: XKO) and most ASX 300 shares so far this Tuesday. At the time of writing, the ASX 300 has risen by a comfortable 0.14%, putting the index at around 7,860 points. But let’s discuss what’s going on with Aussie Broadband Ltd (ASX: ABB) shares.

Aussie Broadband shares don’t seem to be benefitting from the optimism we are seeing across the broader share market today. At the time of writing, the ASX telco has tanked by almost 1%, down 0.98% at $3.54 a share.

It’s possible that a new ASX announcement out of Aussie Broadband is a factor here.

This morning, just before market open, Aussie Broadband gave investors an update regarding the saga surrounding the purchase of its fellow ASX telco Superloop Ltd (ASX: SLC)’s shares.

The relationship between Superloop and Aussie Broadband has been an interesting one to observe in 2024 to date.

Over February and March, we saw some ASX drama after Aussie Broadband lobbed a takeover offer at Superloop shareholders.

In late February, Aussie offered a non-binding indicative proposal to Superloop investors. It was an all-scrip offer, putting up 0.21 Aussie Broadband shares for every Sueprloop share owned. A few days later, Superloop rejected the offer, calling it ” opportunistic” stating that it “fundamentally undervalues Superloop”.

However, this takeover offer was quickly overshadowed by the revelation that Aussie Broadband had acquired a 19.9% stake in Superloop itself.

Aussie Broadband buys and sells Superloop shares

The company didn’t respond well to this development and launched legal proceedings against Aussie in Federal Court. Superloop argued that Aussie Broadband’s share buy-up wasn’t permitted under its constitution because it occurred “without the prior approval of the Info-communications Media Development Authority (IMDA) in Singapore”.

It asked Aussie to reduce its stake to under 12% within ten business days.

Aussie Broadband initially responded by calling the purchase “inadvertent”, but stated that it would appeal the legal proceedings. This was unsuccessful.

However, today, the company has given investors an update.

In an ASX filing this morning, the telco confirmed that it had adhered to Sueprloop’s request, and sold off some of its Superloop stock. Here’s what the statement said:

Aussie Broadband Limited… refers to its acquisition of a 19.9% relevant interest in Superloop… which was announced on 26 February 2024 and the subsequent notice from Superloop directing ABB to dispose of its legal and beneficial ownership in a number of shares in Superloop, which was announced on 18 March 2024.

On 1 April 2024, ABB entered into an agreement to sell 37,621,056 fully paid ordinary shares in Superloop at a sale price of $1.31 per share. Following the sale, ABB has a 11.99% shareholding in Superloop.

So it appears this puts to bed the legal drama that has swirled around these two companies over the past month or so. This action by Aussie Broadband might well explain why investors are a little cool on this telco’s shares during today’s trading thus far. But let’s see if this is indeed the end of this ASX telco saga.

The post Aussie Broadband shares are falling on a big sale today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Aussie Broadband share price whipsaws as company denies rumours
• Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling
• Aussie Broadband share price falls as legal proceedings commence against Superloop
• 3 ASX All Ords shares that brokers tip will grow 30% to 40% this year
• Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling today

Motley Fool contributor Sebastian Bowen 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 Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WVG9xan

The BHP Group Ltd (ASX: BHP) share price is off to a strong start in April

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner closed up 1.4% on 28 March, the last trading day of the month, at $44.27. In lunchtime trade today, shares are swapping hands for $45.20 apiece, up 2.1%.

For some context, the ASX 200 is up just 0.06% at this same time.

As for the month just past…

BHP pays dividend and weathers iron ore storm

The BHP share price closed out February at $43.93.

That means shares in the ASX 200 mining giant gained a slender 0.8% in March.

But let’s not forget the dividend.

BHP paid a fully franked interim dividend of 72 US cents per share (AU$1.10 per share) on 28 March. The stock traded ex-dividend on 7 March.

If we add that back in, then BHP stock gained an accumulated 3.3% over the month, plus the potential tax benefits from those franking credits.

What now for the BHP share price?

BHP managed to weather the iron ore and nickel storms of March in good form.

Iron ore was trading for just over US$117 per tonne at the beginning of the month before briefly dipping below the psychologically important US$100 per tonne level mid-month.

The steel-making metal – BHP’s top revenue earner – has been on a bit of a rollercoaster since then.

After slipping back below US$100 per tonne yesterday, iron ore was trading for US$101.65 per tonne overnight.

Of course, that’s still well down from the more than US$140 that same tonne was worth at the start of 2024.

As for how iron ore will impact the BHP share price in the months ahead, much of that will depend on China.

The nation’s steel-hungry real estate markets remain depressed. But its industrial sector is heating up.

If China’s government ups its stimulus measures, iron ore prices could well rebound, boosting the bottom line for BHP.

But not everyone is convinced the industrial metal will return to early 2024 levels.

Katana Asset Management portfolio manager Romano Sala Tenna labelled the recent strength in iron ore prices as “abnormal” in the face of China’s faltering property markets.

According to Sala Tenna (quoted by The Australian Financial Review):

We think the drop has been very reasonable given how abnormal the price had remained before now. We wouldn’t be surprised to see it go lower.

This could impact higher-cost producers and eventually see a pullback in supply if prices don’t hold up.

“We may be starting to get close to the cost curve for some of the higher-cost Chinese producers, so we may start to see some pushback,” Sala Tenna added.

However, as the lowest-cost iron ore producer in the world, BHP is well-positioned for any weakness in prices.

Another headwind for the BHP share price in April to keep an eye on in the months ahead is nickel.

Last month the ASX 200 miner addressed the pressure from a global oversupply of nickel, fuelled by cheap ‘dirty nickel’ out of Indonesia, backed by Chinese companies.

This has impacted its Nickel West operations, with the miner planning to mothball the project until nickel prices recover.

“30% of the Australian nickel market has gone offline and another 30% is under pressure,” BHP’s retiring CFO David Lamont said.

It could be some time before BHP shares enjoy renewed tailwinds from higher nickel prices.

Over the weekend, Indonesia doubled down on its nickel goals, with the government aiming to quadruple the nation’s nickel output by the end of the decade.

The post The BHP share price was surprisingly resilient in March. Now what? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy right now
• Why it’s a great day to own BHP shares
• 5 things to watch on the ASX 200 on Thursday
• Down 14% in 2024, why is the BHP share price sliding again today?

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.

from The Motley Fool Australia https://ift.tt/TyKMVpm

The Mesoblast Ltd (ASX: MSB) share price shot out of the gates on Tuesday, opening at 80 cents per share and rising to an intraday peak of 88.5 cents within the first two hours of trading.

The intraday high represents a 59.45% gain over the closing price of 55.5 cents last Thursday, prior to the market shutdown for the Easter long weekend.

At the time of writing, the Mesoblast share price has settled back to 87 cents per share.

What’s the news from Mesoblast today?

The only news from the biotech company today is a non-price-sensitive announcement relating to a change in substantial holding.

That’s for United States investor Gregory George and G to the Fourth Investments.

The notice advised a collective stake increase from 10.23% to 11.99% last Thursday.

There’s no other news today.

However, Mesoblast did have a big announcement last week that sent its share price soaring.

Let’s recap.

What’s pushing the Mesoblast share price higher?

Mesoblast requested a pause in trading last Tuesday morning before releasing some big news.

The company announced that the US Food and Drug Administration (FDA) had informed it that after reviewing the clinical data from its Phase 3 study, there appeared to be sufficient evidence to support Mesoblast’s submission for remestemcel-L to treat kids with steroid-refractory acute graft versus host disease (SR-aGVHD).

Remestemcel-L is being developed for inflammatory diseases in children and adults, including steroid-refractory acute graft versus host disease, and biologic-resistant inflammatory bowel disease.

CEO Silviu Itescu said the company would now refile its Biologics License Application (BLA). This will happen in the June quarter after the company addresses outstanding product characterisation matters.

Silviu said:

The responses and guidance from FDA are clear and provide us with a high level of confidence to refile our BLA for remestemcel-L in children with SR-aGVHD.

What is remestemcel-L?

This is the drug that Mesoblast has been trying to get approved for the past three-and-a-half years.

There was much excitement in mid-2020 while Mesoblast was awaiting the FDA’s first decision on its flagship drug, also known as Ryoncil.

This can be seen in the Meosblast share price chart below.

Remestemcel-L has FDA Fast Track designation, a process to facilitate the development and speedy
review of therapies for serious conditions that fill unmet medical needs.

It also has Priority Review designation, which is given to drugs that treat a serious condition and provide a significant improvement in safety or effectiveness over existing treatments.

Survival outcomes have not improved for 20 years for children or adults with the most severe forms of SR-aGVHD.

As you can see, the Mesoblast share price was trading above $5 per share back in those days.

The market was shocked when the FDA knocked back the application in October 2020.

Mesoblast worked with the FDA for two years to address the issues. It resubmitted its Biologics License Application (BLA) resubmission for remestemcel-L in the treatment of children in March 2023.

But FDA knocked it back again in August. The Mesoblast share price spiralled down almost 60% after the FDA said it needed more data to support marketing approval for remestemcel-L for kids.

Mesoblast then sat down with the FDA in what is called a Type A meeting.

The FDA advised the company that the key remaining issue for pediatric approval was providing further evidence that the potency assay will assure the consistent efficacy of the commercial product.

Mesoblast later provided the FDA with new data from a second potency assay.

The company said:

The new data show that the RYONCIL product made with the current manufacturing process that
has undergone successful inspection by FDA, demonstrates greater potency than the earlier
generation product, providing context to its greater impact on survival.

Mesoblast has been waiting for the FDA to respond to the new data ever since.

Mesoblast share price snapshot

The Mesoblast share price is down 13.3% over the past 12 months.

However, in the year to date, it is up 174%.

The post Blast off! Mesoblast share price surging 60% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top ASX shares to buy in April 2024
• Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping
• 3 ASX All Ords shares up 50%+ in March
• Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher
• Mesoblast share price rockets 36% on breaking FDA news

Motley Fool contributor Bronwyn Allen has positions in Mesoblast. 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.

from The Motley Fool Australia https://ift.tt/t91Niuy

I hope you saw our press release, sent out yesterday.

The one talking about the launch of a brand new service, Motley Fool Alchemy: an offering to help politicians buy our votes, and to help Australians use Super for lots of things, including jetskis and, well, more. Maybe even retirement.

I hope you realised it was April 1; April Fool’s Day – The Motley Fool’s favourite day of the year. I’m pretty sure you did.

Because as is our tradition, each year we try to have a little fun with our announcements, starting off somewhat plausibly, then laying it on thicker and thicker until the joke is laid out so plainly that we hope our readers can’t avoid the realisation.

And we try to centre it around an important point: something we want to put into stark relief by making a joke that’s not all that far from reality.

This year, the target was simple: the ongoing temptation for politicians – from both sides of the House – to try to get their hands on Superannuation; either directly, or as a way to convince you to vote for them.

In the past couple of years, we’ve seen Super grabbed for discretionary spending during COVID (hello jetskis and flatscreen tellies) and earmarked for aged care spending, affordable housing investment, diversion to emergency funding for domestic violence victims, and – most recently – proposed to be used as a housing deposit for first home buyers.

Why do they do it? Because it’s there… and, for governments, it’s costless. They get to buy our votes (or, more generously, solve some societal problems) without using the Federal Budget.

And some of the time, we fall for it. The ‘well, it’s your money’ line is pretty convincing. But that ignores the concessional taxation on contributions and concessional tax on earnings, for a start. It also ignores the reality that the money has been set aside specifically for retirement.

But, more insidiously, they use it against us because we’re evolutionarily not prepared for thinking about the long term. Essentially, our biology means we’re very good at thinking about now, and Future Me is too abstract a concept. The flatscreen TV feels good, now, and the cost for our retirement is far less obvious… so we shortchange our future selves.

Not only because it takes money out of the account today, but also because it steals from future compounding, which would otherwise result in us having multiples of today’s account balance at retirement.

So, there are many worthy (and more than a few unworthy) things that a responsible government could fund. Including much of what I listed above, and more, besides.

But governments should resist the urge to take the easy option – the bait and switch of using our retirement savings to solve unrelated problems. Yes, a house is better than Super. But you know what’s better? Both. Yes, we should do everything in our power to assist those leaving abusive relationships. But we shouldn’t ask them to trade off their retirement savings for physical and emotional safety.

As a mature, wealthy country, we need to reject the notion that these things are ‘either/or’ decisions. They must be ‘and’ outcomes, instead. That’s what we’re asking our politicians to do, and what we’re making sure you’re aware of.

We hope you enjoyed our little joke, and we hope you also value the serious issues behind it.

Now, to start planning for next year…

The post Alchemy? Nah, Fool’s gold, instead! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why March was a record-smashing month for the CBA share price
• How is the Vanguard Australian Shares ETF (VAS) falling almost 1% today?
• These are the 10 most shorted ASX shares
• Novonix share price booming 5% on cracking tax credit
• Why is this ASX mining stock sinking 47% to a record low?

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

from The Motley Fool Australia https://ift.tt/7gqHJwn

The Commonwealth Bank of Australia (ASX: CBA) share price had a month to remember in March.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed out February trading for $116.41.

Despite numerous analysts labelling the bank as over-priced, trading at a significant premium to its peers, CBA finished March trading for $120.42 a share, notching a series of new record highs early in the month.

That strength saw the ASX 200 bank stock gain 3.4% over the month, handily outpacing the 2.6% gains posted by the benchmark index over this same period.

Australia’s biggest bank also outperformed many of its rivals over the month.

The VanEck Vectors Australian Banks ETF (ASX: MVB) is exclusively invested in ASX bank stocks. And the exchange-traded fund (ETF) trailed CBA’s performance, gaining 2.0% in March.

Eligible shareholders will also have received the boosted, fully franked interim CBA dividend of $2.15 a share on 28 March, the final trading day of the month. Though the stock traded ex-dividend in February, so this is unlikely to have had any impact on the CBA share price in March.

What’s been happening with the CBA share price?

Among the tailwinds for CBA, and indeed every ASX bank stock, is the rising expectation of a soft landing for the Aussie economy with interest rate cuts on the horizon.

A stronger economy would bode well for CBA’s books, ushering in higher lending with lower non-performing loan levels.

And March saw investors increasing their bets on interest rate cuts from the Reserve Bank of Australia (RBA) in 2024 amid signs inflation is coming under control.

A lower official cash rate could help boost the bank’s bottom line, and the CBA share price, if the bank decides not to pass the full level of those cuts on to its borrowers.

With an eye on costs, March also saw CBA announce that its Western Australian subsidiary, Bankwest, will become a digital-only bank in 2024. Forty-five Bankwest branches will be closed by October 2024. Fifteen other regional Bankwest centres will be converted to CBA branches.

ASX 200 investors shrug off broker warning

The CBA share price had a strong run in March despite some bearish sentiment on the broader ASX 200 banking sector from analysts at Macquarie.

On 14 March, Macquarie downgraded National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) to an underperform rating.

The broker already had CBA at an underperform rating with a price target of $95 a share. Or some 21% below the current CBA share price.

“Banks are trading at peak multiples without a clear fundamental reason,” Macquarie analyst Victor German said at the time.

“We believe the economic and stock-specific settings that underpinned banks’ outperformance during previous rate cut cycles are not evident,” he added.

Time will tell.

But with CBA smashing into new all-time highs in March, I wouldn’t be rushing to hit the sell button.

The post Why March was a record-smashing month for the CBA share price appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Own CBA shares? It’s payday for you!
• 5 things to watch on the ASX 200 on Thursday
• Are CBA shares really worth $120?
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• These 5 high-quality companies are now paying a better income than CBA shares

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 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.

from The Motley Fool Australia https://ift.tt/mY2eK3p

It’s been a decent, if not spectacular, start to the short trading week for most ASX shares this Tuesday. At the time of writing, the S&P/ASX 300 Index (ASX: XKO) has advanced by 0.12%, putting the index at just over 7,850 points. But let’s talk about what’s going on with the Vanguard Australian Shares Index ETF (ASX: VAS).

VAS units are seemingly not enjoying the same kind of goodwill as the ASX 300 index that it tracks. This exchange-traded fund (ETF) ended last week at $98.84 per unit. But this morning, those same units opened at $98.50, and have since fallen to just $98.05 each at present. That’s a drop worth a not-insignificant 0.8%.

This is rather strange at first glance. After all, VAS is an ASX index fund that just happens to track the ASX 300 index itself. That means that these two instruments should, at least in theory, mirror each other almost exactly. So to see a divergence like this is highly unusual.

Well, it would be, if we didn’t have a fairly simple explanation as to what’s going on in this particular situation.

Why are VAS units taking an ASX hit today?

Today is the Vanguard Australian Shares ETF’s ex-distribution day.

Last week, we warned that the latest dividend distribution from this ASX ETF was incoming. Vanguard recently revealed that the latest quarterly dividend distribution, covering the three months to 31 March 2024, would be worth 84.9 cents per unit.

That is a pleasing 47.1% rise over last year’s quarterly dividend of 57.7 cents that investors received for the same period.

It takes VAS’ full-year ASX payout to $3.74 per unit.

However, as we warned last week, the last day investors could buy VAS units on the ASX with the rights to this payment attached was last Thursday. Today is the day that Vanguard scheduled its index fund to trade ex-distribution for this upcoming payment.

This means that from this Tuesday, VAS units don’t come with the rights to receive this dividend distribution, and any new investors will have to wait for the next quarterly payout.

As such, those Vanguard units just became inherently less valuable. And as a result, we are seeing a bit of a fall in the fund’s value on the ASX this morning. This is a normal occurrence anytime an investment goes ex-dividend (in this case, ex-distribution).

Eligible Vanguard investors can now look forward to receiving their dividend later this month on 17 April.

At the current Vanguard Australian Shares ETF pricing, this index fund has a dividend distribution yield of 3.81%.

The post How is the Vanguard Australian Shares ETF (VAS) falling almost 1% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 excellent ASX ETFs for smart investors in April
• Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here’s what you have to do
• How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement?
• Here are the next distribution dates for your Vanguard ETFs
• If you own the Vanguard Australian Shares ETF (VAS), make sure you’re doing this

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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.

from The Motley Fool Australia https://ift.tt/1jCAzc4