Tag: Motley Fool

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this mining giant’s shares to $39.45. The broker has upgraded its iron ore forecasts to reflect stronger steel production in China. It also notes that it prefers BHP over its peers due its ability to generate strong free cash flow even when iron ore prices fall to more sustainable levels. I agree with Morgan Stanley and would be a buyer of BHP’s shares right now.

NEXTDC Ltd (ASX: NXT)

A note out of the Macquarie equities desk reveals that its analysts have upgraded this data centre operator’s shares to an outperform rating with a $12.30 price target. The broker made the move largely on valuation grounds after a recent pullback in the NEXTDC share price. Outside this, it likes the data centre operator due to its belief that it is one of only a handful of companies that stand to benefit from the COVID-19 crisis both in the short and long term. This follows the acceleration of digital transformation plans by businesses globally. I think Macquarie is spot on and NEXTDC would be a great long term option.

TechnologyOne Ltd (ASX: TNE)

Analysts at Morgans have upgraded this enterprise software company’s shares to an add rating with a slightly reduced price target of $8.76. According to the note, the broker is confident that TechnologyOne is well-positioned to deliver on expectations in FY 2020. In light of this, it feels a sharp pullback in its share price is a buying opportunity for investors. Especially given the strength of its business model and its well-funded and large customer base. I think Morgans makes some good points and TechnologyOne could be worth considering.

More reading

• BHP’s climate plan is rubbish: shareholder group
• IGO share price surges on potential sale of Tropicana
• Why the Rio Tinto share price is outperforming its peers
• An all-weather ASX resources shares strategy
• 3 quality ASX shares that could provide monster returns

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. 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 Brokers name 3 ASX shares to buy right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ifk7Ho

A shareholder group has panned BHP Group Ltd (ASX: BHP)’s climate change plan.

The mining giant this week revealed its plans to reduce its operational greenhouse gas emissions by at least 30% from 2020 to 2030.

Investor advocacy body Australasian Centre for Corporate Responsibility (ACCR) stated BHP needs to “go back to the drawing board”.

“BHP fails to deliver any meaningful outcomes in terms of actual emissions reduction. It needs to try harder,” said ACCR climate director Dan Gocher.

“BHP should be aiming for a 40-60% reduction in all of its emissions by 2030.”

While BHP chief executive Mike Henry claimed the targets are in line with the Paris Agreement, the ACCR didn’t share that view.

Gocher said “most climate scientists” would also disagree.

“BHP is… cynically using FY2020 as a baseline, rather than a historical, lower number,” he said.

“BHP may have finally given up on thermal coal but it and its industry associations are still betting heavily on gas — which is proven to have the same, if not worse emissions than coal once fugitive methane emissions are factored in.”

BP did it, so why can’t BHP?

The method of reducing emissions was also criticised.

“BHP continues to rely on unproven and horribly expensive carbon capture and storage (CCS) to decarbonise its Scope 3 emissions, rather than simply leaving fossil fuels in the ground.”

British energy conglomerate BP plc (LON: BP) promised last month that it would no longer explore for oil and gas in new countries. Gocher said that this showed it’s possible.

“Anything less than a commitment from BHP to cap then reduce production of fossil fuels over the coming decade is simply inadequate,” he said.

“BHP’s US$400 climate investment program hasn’t changed since July 2019, and is dwarfed by the $US8 to US$9 billion it was planning to spend on oil and gas projects before the COVID-19 pandemic struck.”

BHP also announced that executive remuneration would be tied to the delivery of its climate plan.

“We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they can control,” Henry said.

“Our actions must be of substance.”

More reading

• Brokers name 3 ASX shares to buy right now
• IGO share price surges on potential sale of Tropicana
• Why the Rio Tinto share price is outperforming its peers
• An all-weather ASX resources shares strategy
• Why you should use the market sell-off to buy these ASX stocks

Motley Fool contributor Tony Yoo 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 BHP’s climate plan is rubbish: shareholder group appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hkbXwa

The Commonwealth Bank of Australia (ASX: CBA) is the latest to muscle in on the booming BNPL space that sent the Afterpay Ltd (ASX: APT) share price rocketing to the moon.

Australia’s largest listed bank launched a zero-interest credit card that’s aimed to win market share from Afterpay, reported News.com.au.

CBA’s move comes a day after National Australia Bank Ltd. (ASX: NAB) issued a card with the same benefits.

Afterpay share price under pressure

The Afterpay share price slumped 2.9% to $73.42 during lunch time trade, although I don’t think CBA’s offering if really hurting sentiment.

The S&P/ASX 200 Index (Index:^AXJO) lost 0.7% of its value on weak overnight leads from Wall Street. The CBA share price and NAB share price have also lost more than 1% at the time of writing.

How big a threat is CBA and NAB?

The buy-now pay-later (BNPL) solutions from the big banks aren’t likely to be as popular as Afterpay, in my view.

For one, the bank cards just lack the “cool” factor that is vital to younger spenders who are driving growth in BNPL.

The other issue is that CBA product attracts a monthly fee, according to the news report. Consumers have to pay $12 a month for a $1,000 limit, $18 a month for $2,000 and $22 per month for $3,000.

What this means is that you are in fact paying an annual “interest rate” of 14.4% if you fully utilised the $1,000 credit limit on the cheapest plan. The NAB solution also charges a monthly fee. So much for zero-interest!

High interest in zero-interest

The banks will argue the maintenance fee is not interest and that consumers can earn rebates at select merchants. The rebates could allow you to recoup the fee (and maybe more), but in my eyes this is an interest charge.

I am not an advocate for Afterpay, but it’s worth noting that the fintech doesn’t charge any fees unless you miss a payment. Afterpay makes money by charging the merchant, while I suspect the big banks collect payment from both consumers and merchants.

Bigger threat to Afterpay and friends

But there is a more sinister rival Afterpay and its peers like the Zip Co Ltd (ASX: Z1P) share price. This is Elon Musk’s previous baby, PayPal, which revolutionised online peer-to-peer payments.

PayPal is very popular and is the dominant payment of choice for online shoppers. It already has the customers and networks to get its BNPL product off to a flying start.

The global market is certainly big enough for several large players to emerge, and Afterpay may cement itself in one of those spots.

But the real question is whether Afterpay can sustain its lofty market premium in the face of stiffening competition.  

More reading

• What I’ve learned writing for The Motley Fool
• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• Why BrainChip, Evolution, Nearmap, & Zip shares are tumbling lower
• IGO share price surges on potential sale of Tropicana
• A guide to using the dollar-cost averaging strategy

Brendon Lau owns shares of Commonwealth Bank of Australia and National Australia Bank Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Afterpay (ASX:APT) share price facing new competitive pressure appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZpUZXd

Buy the dip.

Sound investment advice, or a mug’s game?

Depending on your approach, it could fall to either side of that line.

Timing the market to buy at the lows, or sell at the highs, is educated guess work at best. Which is why you’ll be hard pressed to find a single fund manager who’s managed to do so successfully over the long term.

With that said, it’s hard not to look back to 23 March, when the S&P/ASX 200 Index (ASX: XJO) hit its post COVID-19 selloff low, as prime buy-the-dip territory. And with the benefit of hindsight, of course, we know it was. The index of the top 200 listed Aussie shares is now up 29% from that low.

But the buy-the-dip question is again beginning to percolate.

Like United States share markets, most ASX companies have seen their share prices slip over the past few weeks, with the ASX 200 down nearly 5% since 25 August. And it’s down around another 1% in early afternoon trade today.

That was to be expected, with all the major US and European indices losing ground yesterday (overnight Aussie time). The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) again led the way down, losing 2.0%. That puts the Nasdaq down 9.5% from the all-time highs it hit on 2 September.

You can blame US politicians for that. Yesterday, Democrats and Republicans failed to reach agreement on a new, and much needed, stimulus bill. The Republican package is worth around US$600 billion (AU$822 billion), while the Democrats were spruiking stimulus worth more than US$2 trillion.

At the end of the day, US businesses and households got $0.

That’s politics for you.

Share price tug of war

Whether you choose to wait and see how things play out or find some shares you believe are trading at a bargain, fund managers opted to swoop in after the Nasdaq’s big falls.

Goldman Sachs’ data (as reported by Bloomberg) showed that “professional managers that make both bullish and bearish equity bets scooped up internet and software companies on Friday and Tuesday at the fastest rate in five months.”

Addressing the fundies’ bargain hunting spree, Chris Gaffney, president of world markets at TIAA Bank, said, “They’re just riding the wave and believe that with interest rates low and inflation non-existent and with the Fed saying, ‘We’ll let it run a little hot,’ there’s more room to run. Is it a bubble and do we continue to inflate that bubble? I think that it can continue to inflate.”

Rick Meckler is a partner at Cherry Lane Investments. When it comes to buying the dip, he points out that you’re currently competing with traders selling at near record high share prices. Meckler says (as quoted by Reuters), “It’s going to be a battle for the next couple of days from investors who are trying to pick spots to get back in to technology and traders who are using some of these sharp rallies to take profit.”

Alec Young, chief investment officer at Tactical Alpha LLC, says central bank support has been supporting buy-the-dip investors (from Bloomberg), “You’d probably need to see a lot more pain inflicted before you started to see more hesitance on the part of the retail crowd. There’s been a pattern where buying the dip has been working ever since the Fed stepped in aggressively back in March and April. It’s been such a successful strategy.”

Foolish takeaway

Lacking a functional crystal ball, I have no more insight into how the share markets will move over the short term than anyone else. Which makes consistently timing the precise lows in the market impossible.

That’s where longer-term investors have the advantage.

While share prices could well fall further from here, there are a lot of tailwinds in place to send them back up in the mid term.

First, though there are no guarantees in life, it’s hard to imagine that US politicians won’t break through the current gridlock over the next tranche of stimulus spending. One way or another, that’s likely to come through over the next few weeks…if not sooner.

Second, as Chris Gaffney and Alec Young pointed out above, the US Fed — and indeed central banks across the developed world, like our own RBA — will keep rates at record lows and prime the quantitative easing (QE) pumps for as long needed. And there’s nothing share markets like more than easy money.

Then there’s the looming promise of a vaccine. There’s no guarantee here either about the timing or the eventual effectiveness. But the world’s top biotech shares are pouring everything they have into being the first to knock down the coronavirus.

Failing that, we have advances in treatment and the promise of accurate rapid testing to minimise the economic damage caused by social distancing and lockdowns.

On the testing front, Australian company Anteotech Ltd (ASX: ADO) is leading the charge.

On Wednesday, Anteotech announced it had completed the second phase of its high sensitivity COVID-19 antigen rapid test sooner than originally expected. The company is now moving into the third phase with an eye on moving toward full commercialisation. Anteotech estimates that could happen within the next 5 to 8 months.

Year to date, the Anteotech share price is up 100%.

If you’d bought the dip in Anteotech’s share price back on 13 July, you’d be sitting on a gain of 200%.

Where was that crystal ball when we needed it?

More reading

• Anteotech (ASX:ADO) share price rockets 19% on COVID test announcement

Motley Fool contributor Bernd Struben 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 These fund managers are buying the dip, should you? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35qZjsM

The Pro Medicus Limited (ASX: PME) share price has rebounded higher following a morning decline.

At the time of writing the health imaging company’s shares are up 2.5% to $26.60.

Why is the Pro Medicus share price storming higher?

Investors have been buying Pro Medicus’ shares after the release of two announcements just before lunch.

The first announcement reveals that the company has signed a seven-year contract with NYU Langone Health. Management advised that NYU Langone Health is one of the largest health systems in the state of New York and one of the most respected and innovative healthcare institutions in North America.

The contract, which is based on a transaction-based licensing model, will see the company’s Visage 7 technology implemented across all of NYU Langone’s radiology and subspecialty imaging departments. This includes breast imaging and replaces all existing legacy PACS with a single centralised instance of the Visage 7 Enterprise Imaging Platform.

The implementation will span six hospitals and numerous additional locations across the NYU Langone healthcare network, with the first sites expected to go-live in the third quarter of FY 2021.

Pro Medicus CEO’s, Dr Sam Hupert, commented: “NYU Langone completed a thorough selection process that required the final round of vendors to perform extensive on-site pilots. This enabled NYU to assess the differences between systems and, importantly, do so in their production environment, which is the ultimate test of how a product will perform.”

“Winning this deal further validates our belief that we have a unique and highly differentiated offering. We stream the pixel data, unlike others who still compress-and-send the images,” he added.

Research agreement.

In addition to the above, the company announced that it has also signed a multi-year research collaboration agreement with NYU Langone Health.

The agreement will see the two parties work together to design and develop next-generation products for enterprise imaging. This includes areas such as workflow optimisation, integration with multi-vendor reporting platforms, as well as integration of artificial intelligence technology.

NYU Langone will also become a member of the Visage AI Accelerator program.

Dr Hupert believes that this agreement could extend the company’s technological lead over the competition even further.

He explained: “This is a major milestone for our company. We changed the paradigm of what a diagnostic imaging (PACS) product should be by natively integrating 3D and advanced visualisation into a single platform. We believe this, combined with our proprietary streaming platform, has given us an 18 to 24 month technology lead.”

“We are now looking at what is next, what a system would look like in say 3 to 5 years, and are starting to do the research and development to make that a reality and then be the first to commercialise it,” Dr Hupert concluded.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX shares I’d buy if this crash gets worse
• Broker picks best ASX small cap stocks to buy from the reporting season
• Here’s how to make a $1 million portfolio by investing $1,000 a month
• Buy and hold these fantastic ASX healthcare shares until at least 2030

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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 Pro Medicus (ASX:PME) share price higher on major contract win and research agreement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35qbt5q

Shares for beginners… it’s not as easy as it sounds. There are literally thousands of shares on the ASX and tens of thousands of shares around the world to choose from. Thus, it’s easy for a beginner investor to be overwhelmed with choice or paralysed with indecision if they are just starting out on their investing journey. That’s why I’ve found 2 ASX shares today that I think are perfect for a beginner investor. I’ll lay out why below.

2 ASX shares perfect for beginner investors

1) Woolworths Group Ltd (ASX: WOW)

Our first share for beginners is a company everyone would be familiar with – Woolies, you know, the fresh food people one. I’ve chosen Woolworths, not for its growth potential or ‘shoot the moon’ possible returns. Far from it. Woolies is a steady, mature, dividend-paying business that is probably unlikely (in my view anyway) to significantly outperform the market over the long term.

Saying that, I still think it’s a good choice for a starter investor. It’s relatively easy to understand as a business, and it’s easy to go and visit a Woolies store and get a feel for how ‘your company’ works and how it makes money — invaluable experience for a beginner in my view. As mentioned earlier, you’ll also get a biannual dividend, which on current prices signals a yield of around 2.57%. I think Woolies is a company you can comfortably buy to get a handle on investing, and leave in the bottom drawer.

2) Magellan Global Trust (ASX: MGG)

Our second share today is this listed investment trust (LIT) from Magellan Financial Group Ltd (ASX: MFG). Magellan has steadily built a reputation as one of the best global fund managers in Australia. The Global Trust is designed so you as the investor don’t really have to do anything apart from buy the shares. A management team picks the actual shares held within the trust for you and buys and sells them on your behalf.

MGG focuses on a well-diversified portfolio of global companies. As of 31 July, some of the companies it currently holds include Microsoft Corporation (NASDAQ: MSFT), Facebook Inc (NASDAQ: FB), Visa Inc (NYSE: V) and Tencent Holdings (OTCMKTS: TCEHY). MGG also aims to pay a cash distribution of 4% annually, which you can choose to reinvest at a 5% discount. All in all, I think this LIT is a top choice for a beginner. And just like Woolies, I think you can easily put MGG in the bottom drawer and forget about it if you so wish.

More reading

• 3 ASX shares that are trading at bargain prices
• Here’s why some ASX dividend shares just go nowhere
• Latest ASX stocks top brokers are urging you to buy today
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher
• Magellan share price up after reporting increased FUM for August

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, 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 its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Facebook and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook, Microsoft, and Visa and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Facebook. 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 2 top notch ASX shares for beginners appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Zmi50P

The Kleos Space SA (ASX:KSS) share price is today taking off as the company provided an update on its scouting mission launch. The Kleos share price has risen by 7.55% to 28 cents on the news.

What is Kleos Space?

Kleos is a space powered radio frequency reconnaissance company. Kleos aims to guard borders, protect assets and save lives by delivering global activity-based intelligence and geolocation as a service. The Luxembourg company provides data as a service (DaaS) to its clients.

Furthermore, its upcoming cost-effective global geolocation data will be critical in the enforcement of law and regulation.

The first Kleos Space satellite system, known as Kleos Scouting Mission (KSM), will deliver commercially available data and perform as a technology demonstration. KSM will be the keystone for a later global high capacity constellation. The scouting mission will deliver targeted daily services with the full constellation delivering near-realtime global observation.

Why is the Kleos share price rocketing?

This morning, the company reported an update on the launch of KSM on the Indian Space Research Organisation’s latest mission. The company is launching scouting satellites under a ride-share contract with Spaceflight Inc, with the launch managed by NewSpace India Limited (NSIL). 

The Kleos Scouting Mission’s four satellites have been mission-ready since the middle of 2019. They were shipped to the launch site in February 2020, with the launch expected in March. However, the COVID-19 pandemic has delayed launch operations.

The company has been updated on a new launch date for the four Kleos satellites, with current planning aiming for the 1st half of November. However, Kleos noted the schedule was subject to change depending on operational circumstances beyond NSIL control. 

Foolish takeaway

the Kleos share price has gained a little over 80% since listing on the ASX in late 2018. The monitoring company generated no revenue for its half year ending 30 June 2020, but the Kleos scouting mission offers attractive future potential. The Kleos share price is down 8% for the year.

More reading

• 2 top notch ASX shares for beginners
• What I’ve learned writing for The Motley Fool
• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• Rio Tinto (ASX:RIO) heads roll, but investors want more
• Why the Retail Food Group (ASX:RFG) share price is up 4%

Motley Fool contributor Daniel Ewing 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 Kleos (ASX:KSS) share price shoots for the stars appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iq9fGY

You can learn a lot about investing from the amazing Fools at The Motley Fool. For me, I had the privilege of being able to share some of these learnings with you as a reader. However, I have actually learned a lot about ASX share investing through my writing. Here are the biggest lessons I have learned, which could help you with your own share investing.

Confirmation bias is real

A lot of investing resources focus on the fundamental or technical analysis of shares. Looking at the bigger picture, they can also tend to focus on the macro-economic environment. In my opinion, the key to your investing success is closer to home. It’s you.

Humility is an underrated quality in an investor. It will help you to understand your flaws and adjust accordingly. For me, one of my biggest biases is the need for confirmation. That is, I seek out support for my ideas to give me the confidence required to invest.

Whenever you are about to make a share purchase or sale, take a step back to really consider the opposite side of the story. This will open your eyes to the potential outcomes and actually give you more conviction once you have made this consideration.

An investing journal is critical

The share market is volatile. Anyone who was investing in March, or during the great recession, or the dot-com bubble will know this. Considering and understanding your emotions is critical to making rational, long-term decisions in these circumstances.

Writing down your ideas makes you think longer and harder, and provides a great reference point for investing decisions. Being able to see if your original investment thesis is broken is a truly powerful investing tool.

I love share investing

It’s safe to say that I am in love with share investing. It has provided me with an income, growing wealth, entertainment and a lot of happiness. It would be ‘lower-case f’ foolish of me to think that everyone was the same.

If you’re not passionate about share investing, but still want to invest, I would suggest outsourcing it to a trusted person/team. For example, I know that a number of Fools in the United States follow the investments of David Gardner, even when the investments are not 100% within their circle of competence. Finding a trusted and reliable external advisor, such as The Motley Fool, can boost your investment returns, whilst allowing you to spend less time analysing and worrying.

There’s more to life than investing 

True investing is a journey. The fruits of your labour unfortunately come later down the track. However, there is more to life than investing in the S&P/ASX 200 Index (ASX: XJO). Set a goal, have a purpose and a reason for investing. It doesn’t matter what it is, big or small, but knowing what you are aiming for will allow you to set the right course, enjoy the ride and celebrate when you get there.

Invest in yourself first

I’m definitely not the first one to say this, but investing in yourself will always provide the greatest returns. Prior to writing for The Motley Fool, I had very limited writing skills. My grammar was OK and I knew what paragraphs were, but I didn’t know how to write for an audience or build a story.

Investing time, effort and money into yourself will open doors or allow you take opportunities when they arise. Often coming with a pay rise or new source of income, this can be very rewarding when extrapolated over a career.

The Foolish bottom line

This has probably been one of the easiest (yet hardest) articles I’ve written for The Motley Fool. That’s because it has come from the heart, but is unfortunately my last, for now. 

All the best on your journey to become smarter, happier, and richer.

Fool on!

More reading

• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• IGO share price surges on potential sale of Tropicana
• Up 9.2% in 1 day, is the Clinuvel Pharmaceuticals (ASX:CUV) share price a buy?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.5%, gold miners glitter

Motley Fool contributor Lloyd Prout 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 What I’ve learned writing for The Motley Fool appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3k7jIaq

At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is following Wall Street’s lead and trading notably lower. The benchmark index is currently down 0.95% to 5,852.4 points.

Here’s what is happening on the market today:

Rio Tinto CEO to exit.

The Rio Tinto Limited (ASX: RIO) share price has been a comparatively positive performer on Friday after announcing that its CEO, J-S Jacques, has agreed to step down and leave the company. He will remain in his role until the earlier of the appointment of a new CEO or 31 March 2021. Mr Jacques is leaving following a review into the destruction of the Juukan rockshelters in May. A number of fellow executives will be leaving with him.

Tech shares sink lower again.

The tech rout wasn’t over after all. A number of popular ASX tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are trading notably lower on Friday following more weakness on the tech-heavy Nasdaq index overnight. At the time of writing the S&P ASX All Technology index is down 1.6%.

Nearmap completes placement.

The Nearmap Ltd (ASX: NEA) share price has crashed lower today after the aerial imagery technology and location data company completed its fully underwritten institutional placement. Nearmap raised $72.1 million at a 4.2% discount of $2.77 to support its growth. In addition to this, Goldman Sachs downgraded its shares to a neutral rating this morning on valuation grounds.

Best and worst ASX 200 performers.

The best performer on the ASX 200 at lunch is the Whitehaven Coal Ltd (ASX: WHC) share price with a 3% gain. This follows a 1.9% rise in the thermal coal price during overnight trade. The worst performer by some distance has been the Nearmap share price with a sizeable 11% decline. This follows the completion of its institutional placement.

More reading

• What I’ve learned writing for The Motley Fool
• Rio Tinto (ASX:RIO) heads roll, but investors want more
• Why BrainChip, Evolution, Nearmap, & Zip shares are tumbling lower
• Nearmap (ASX:NEA) share price tumbles 11% following capital raising
• Why IGO, IPH, Jumbo, & Whitehaven shares are pushing higher today

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 Nearmap Ltd. and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. 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 ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35rx655

The CEO and two other executives have now departed Rio Tinto Limited (ASX: RIO), but shareholders are demanding more.

Chief executive Jean-Sebastien Jacques, iron ore head Chris Salisbury and corporate affairs boss Simone Niven all exited Friday by “mutual agreement”.

The mining giant made the move in reaction to shareholder outrage over the destruction of Juukan Gorge, a site of significant historical and cultural value in Western Australia.

What led to this?

Only two weeks ago, Rio Tinto refused to blame any one person or decision over the May explosion, insisting $7 million reductions in exec bonuses were enough.

That left shareholders, including major superannuation funds and the Future Fund, fuming.

“Does the company feel that £4 million is the right price for the destruction of cultural heritage?” Australian Council of Superannuation Investors (ACSI) chief Louise Davidson said at the time.

Future Fund chair and former federal treasurer Peter Costello reportedly met Rio Tinto chair Simon Thompson to tell him heads would have to roll.

So on Friday morning the Rio Tinto board executed a stunning backflip, cutting loose its CEO and two senior executives.

Sackings welcome but Rio has plenty more to do

However, there was more work for Rio Tinto to do, according to shareholder advocate Australasian Centre for Corporate Responsibility (ACCR).

“The removal of these three executives is just the first step,” ACCR legal counsel James Fitzgerald told The Motley Fool.

“The behaviour of the Board and senior management is reminiscent of the arrogant ignorance that led to Rio Tinto’s withdrawal from Bougainville in 1989.”

While the “tragic destruction” of Juukan Gorge cannot be undone, the “dishonest malaise” in the four months since had disgusted shareholders. 

“Investors have stepped up in this instance and demonstrated that they will not accept corporate misinformation and the absolute disrespect to cultural sites that has become Rio’s modus operandi,” said Fitzgerald.

“Shareholder democracy and investor action is alive and well in Australia.”

The ACSI welcomed the executive departures, but also warned more action was required.

“Rio Tinto now has the opportunity to address the necessary remediation, cultural heritage and risk processes with fresh eyes,” said Davidson on Friday.

“Rio Tinto must prioritise working with traditional owners the Puutu Kunti Kurrama and Pinikura people to rebuild their relationship. It is critical that this is not delayed.”

Executives better ‘think twice’

Fitzgerald said captains of industry would now “think twice” before misleading investors, the community and parliamentary enquiries.

“This is just the first step on a long path towards restoring Rio Tinto’s good practice and reputation in its relationships with Indigenous peoples.”

There were reports that Rio Tinto’s own cultural relations employees were muzzled or ignored in the decision-making leading up to the Gorge blow-up.

“The company’s conscientious but beleaguered communities staff deserve to be supported and encouraged in their important work,” said Fitzgerald.

Future board appointments at Rio would be carefully monitored, said Davison, to ensure awareness of community and societal responsibilities.

“We will also be looking closely at the separation arrangements, with the expectation that any exit won’t provide a windfall for executives on their departure.”

More reading

• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• IGO share price surges on potential sale of Tropicana
• Rio Tinto (ASX:RIO) announces CEO exit following Juukan destruction
• Why the Rio Tinto share price is outperforming its peers
• Why you should use the market sell-off to buy these ASX stocks

Motley Fool contributor Tony Yoo 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 Rio Tinto (ASX:RIO) heads roll, but investors want more appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iiYI09