Why I’d still buy this UK stock despite shares rising on takeover talks

first_imgWhy I’d still buy this UK stock despite shares rising on takeover talks Thomas Carr | Tuesday, 14th January, 2020 | More on: AVAP Image source: Getty Images. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Thomas owns shares of Avation plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”center_img Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Last week saw aircraft lessor Avation (LSE: AVAP) – one of my favourite shareholdings – announce that it has effectively put itself up for sale. More accurately, the company is conducting a strategic review, which could result in M&A, a partial sale of its aircraft portfolio, or a sale of the whole company. Indeed, it confirmed that it’s in talks with a suitor for the whole company, and has encouraged offers from other possible buyers.Re-rating of the share priceAt the time of writing, Avation’s market capitalisation is around equal to the company’s last published net asset value (the book value) at around £188m. However, this net asset valuation related to the end of June last year. I’m convinced that the net asset value has increased since, paving the way for a re-rating of the share price.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Over the last four years, Avation’s net asset value has increased by an average of 17% per year, almost doubling from $128m in 2015, to $240m in 2019. What’s more, the company has already reported lease revenue growth of 12% in the first half of FY 2020, compared to the prior year. Based on its track record and proven operating model, I think it’s more than likely that this growth has also led to an increase in the company’s book value.Intriguingly, Avation may also be conservative in its valuation of aircraft on its balance sheet. In fact, the company has repeatedly shown an ability to sell its aircraft at prices that are over 10% greater than book value.The book value also fails to take into account profitability and the return that the company is able to generate from its assets, not to mention future growth. The shares have already risen by 10%, since the news that it’s up for sale became public last week. But considering all these factors, I believe that the shares are still undervalued by anything from 15% to 30% — showing just how undervalued they were before.Takeover warsHere at the Motley Fool, we take a long-term view of investing and I wouldn’t suggest buying a share just for a quick profit. Yes, I think this extra value would be reflected in the sale price of the company’s assets, through a higher transaction price, regardless of whether it’s a partial or complete sale. There’s even the possibility that a bidding war could ensue, potentially pushing the asking price higher.But there’s also the possibility that there will be no sale, in which case, buyers of these shares will have acquired a top-quality company, that has an impressive track record of growing revenues, profits, net asset value and its dividend. I like companies like that, and sale or no sale, I reckon these shares are only going one way in the long term. See all posts by Thomas Carrlast_img read more

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ISA investors! Three 5% dividend yields whose share prices could explode in 2020

first_img Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Gold prices continue to edge higher. It’s a phenomenon I expect could persist through 2020 as investor concerns over key geopolitical and macroeconomic issues are likely to persist.It’s the tension over the unfortunate coronavirus outbreak, and its subsequent global spread that’s driving gold right now. The safe-haven metal just hit fresh seven-year tops above $1,610 per ounce. A run of troubled updates from some of the planet’s biggest companies have illustrated the impact that the illness is having on the global economy.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Shipping giant Maersk said that it has cancelled scores of trips for its container vessels, a reflection of weak Chinese factory activity. Airline Qantas warned on profits as it cancelled all flights to mainland China. And Apple cautioned the market about sagging sales of its iPhone because of supply chain difficulties and shuttered stores in its key Chinese marketplace.Those negative updates were all issued in the space of a couple of days this week. And they are just a taster of what’s been hitting investor sentiment more recently. The number of alarming warnings is likely to continue gaining momentum as global businesses steadily absorb the impact of the coronavirus tragedy on their operations, too.Growth forecasts under pressureA new study from Oxford Economics has done little to calm the nerves, either. It estimates that Chinese gross domestic product (or GDP) growth will plunge to just 3.8% in the first quarter. As a result, global GDP expansion in the three months to March will register at 1.9%.Oxford Economics also cut its forecasts for the whole year, somewhat unsurprisingly. It shaved six-tenths of a percentage point off its Chinese GDP growth estimate, to 5.4%. Its estimate for worldwide GDP growth is now put at 2.3%, too, down from 2.5% previously.The forecasting body said that global GDP growth will pick up in the second half of 2020 “as the disruption from the virus outbreak fades, firms make up for the output lost earlier in the year, and the effect of China’s policy response starts to feed through to activity.” A logical assumption, sure. But we could well see more GDP estimates reduced further down the line should COVID-19 keep spreading quickly.Protect yourselfIn this environment it could be a good idea to protect your shares portfolio with exposure to gold. It’s not just coronavirus-related fears that could fuel flight-to-safety demand for the yellow metal. Fresh tensions over Brexit, trade wars, and a host of other issues could also boost the commodity price in 2020.I for one reckon buying shares in Highland Gold Mining, Polymetal International, and Centamin could be a good idea in the current climate. It’s not just that they all look cheap on paper (the latter trades on a forward price-to-earnings-growth ratio of 0.5 times. The other two carry price-to-earnings ratios of 10 times and below for this year).It’s that they also carry prospective bulky dividend yields of 5% and above, too. All three of these diggers surged in value in 2019 thanks to strong gold prices. It looks as if the same phenomenon could be in train for 2020, too. See all posts by Royston Wild I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Royston Wild | Saturday, 22nd February, 2020 Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img ISA investors! Three 5% dividend yields whose share prices could explode in 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares Enter Your Email Addresslast_img read more

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Stock market crash: I’d buy when UK shares are on sale!

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Stock market crash: I’d buy when UK shares are on sale! Image source: Getty Images. Thomas Carr | Monday, 2nd March, 2020 See all posts by Thomas Carr Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Thomas owns shares of Wizz Air Holdings. The Motley Fool UK has recommended Redrow and Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Addresscenter_img Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. The FTSE 100 index came crashing down last week, falling a massive 11%. Around the world, stocks sold off in a manner that we’ve not seen since the global financial crisis in 2008. Investors are fleeing in their droves, in a panicked response to the global coronavirus outbreak.Clearly, these are worrying times. Nobody knows how long the outbreak is going to last, and what damage it’s going to do. It’s this uncertainty that’s being played out in the global financial markets, so dramatically.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Market overreactionBut my view is that the markets – as they so often do – have overreacted to this uncertainty. Over the last 100 years, international businesses, economies, and stocks, have repeatedly demonstrated that they can, in time, recover from any number of setbacks. Stock markets recovered from the Second World War, the 2001 terrorist attacks, and the SARS outbreak. Stock markets have recovered from every single event of the last century.My own view is that the outbreak will negatively affect earnings and business performance in 2020, but that by next year, it will be business as usual. As such, I believe that the market sell-off has presented mass buying opportunities, the likes of which I’ve not seen in the last 10 years.Airline stocks have been among the worst affected. Shares in IAG – the owner of British Airways – have fallen by around 26% in the last two weeks. The group is now valued at just three times 2018’s earnings. Its valuation effectively implies that IAG will be unprofitable for multiple years. Reaching that conclusion, on what we have seen from the coronavirus so far, is completely irrational, in my opinion.The discounted cash flow model — used by analysts to value shares — shows that when interest rates are low (as they are now), the value of a company is less dependent on short-term profits. As long as profitability is at some point restored, the valuation should remain intact.Flying lowLike IAG, Wizz Air’s shares have also fallen by more than 20%, bringing its valuation to around 11 times this year’s expected earnings. Considering its recent track record of profitable growth, I think this represents a real bargain.Costain, Redrow, Direct Line and Aviva, have also seen their share prices fall more than 10% over the last two weeks. With P/E (price to earnings) ratios of under 10, all these stocks look too cheap to me, especially considering dividend yields of 9%, 4%, 6% and 8%, respectively.Sainsbury’s shares have sunk by 5%, less than most, but still enough to warrant attention. The supermarket is now valued at a 48% discount to its net assets, and has a hefty 5% dividend. As far as I’m concerned, it should be relatively immune to the affects of the outbreak. People will still need to shop for essentials like food and drink, after all.The best opportunitiesThe stock market crash has affected the shares of virtually every sector of the market. I believe that the best opportunities lie in both the sectors that are most affected, where share prices have collapsed, and also in those sectors that will not be badly affected, but that have been caught up in the general sell-off.As Warren Buffett says: “Be fearful when others are greedy, and greedy when others are fearful’’. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shareslast_img read more

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Stock market crash: A FTSE 100 stock I’d buy as a global recession looms

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Royston Wild owns shares of Unilever. The Motley Fool UK owns shares of and has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Stock market crash: A FTSE 100 stock I’d buy as a global recession looms Royston Wild | Friday, 22nd May, 2020 | More on: ULVR Simply click below to discover how you can take advantage of this.center_img Our 6 ‘Best Buys Now’ Shares It’s clear by now we’re in the throes of a severe global recession. Lockdown measures continue to be rolled back, but the financial implications of the Covid-19 breakout will be harder to shake off.Stock pickers need to be more careful in this tough macroeconomic and geopolitical environment. Current events don’t mean they need to run for the hills though. There remain plenty of FTSE 100 shares that should remain profit-making, even as a sharp downturn develops.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A perfect stock for a global recessionUnilever (LSE: ULVR) is a blue-chip I own. I bought it because its products remain in high demand even when broader consumer confidence sinks. Its products are expensive, relatively speaking. But they aren’t so dear that shoppers begin to shun them as their wallets become lighter.The FTSE 100 comany’s beauty labels, household goods, and food ranges are popular for a number of reasons. It’s a result of the huge sums it pays to market them and keep them living in the public’s consciousness. It’s also because Unilever is committed to innovation to keep its brands fresh, talked about, and reflecting changes in broader consumer behaviour.Sales of its Dove products, for example, have benefitted recently due to what it calls “microbiome-friendly innovations.” In layman’s terms, this refers to producing products that are kinder to the billions of natural microorganisms that live on the surface of the skin. Many see microbiome-friendly formulations as the future of skincare.Beloved brandsYou don’t have to take my word on just how popular Unilever’s goods are all over the planet. Kantar Worldpanel’s Brand Footprint 2020 report perfectly illustrates the love affair global consumers have with its brands.Of the world’s top 10 most chosen brands, the FTSE 100 firm can lay claim to three of them. Lifebuoy is the globe’s best-selling soap and sits in fifth place on the list. Sunsilk is perched in seventh position as the most popular haircare product. And its Dove stable of beauty products sits one place lower in eighth.This sort of popularity means Unilever can lift prices on its products without suffering a meaningful dent in volumes too. It’s a quality that exists in both good and bad times.Too cheap!Current City forecasts reflect the resilience of Unilever’s operations. Sure, the number-crunchers expect annual earnings to dip 2% in 2020. This is a reflection of the temporary impact that lockdown measures have had on consumer demand in the early part of the year. Indeed, the FTSE 100 share’s profits are predicted to rise 7% in 2021 on the back of its recession-proof suite of products.Today, Unilever trades on a forward price-to-earnings (P/E) ratio of 18.5 times. Okay, it’s a little above the Footsie historical average. But it still reflects great value given its position as the ultimate ‘peace of mind’ stock. I’m thinking of buying more shares in the consumer goods goliath. Especially with a global recession almost upon  us. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address See all posts by Royston Wildlast_img read more

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Is the Barclays share price now too cheap to ignore?

first_img Image source: Getty Images. Kevin Godbold | Monday, 3rd August, 2020 | More on: BARC Simply click below to discover how you can take advantage of this. Last week’s half-year results report from Barclays (LSE: BARC) revealed some poor numbers. And, looking ahead, the directors aren’t expecting much improvement during the second half of the year. In fairness, the market appears to be up with events because the Barclays share price has already plunged by about 45% this year.Will an earnings rebound boost the Barclays share price?However, City analysts following the firm expect full-year earnings to come in more than 80% down on 2019’s figures. The directors expect the uncertain economic outlook and the low interest rate environment to combine to make trading in the second half “challenging”.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In fairness, banks are ‘supposed’ to see the collapse of their earnings, dividends, and share prices when the economy goes into recession. If you invest in out-and-out cyclical shares, you’re ‘signing up’ for the volatility that comes with the stocks. And banks are perhaps the most cyclical outfits that exist.Banks facilitate the finances of other businesses and individuals. Therefore, if things are tough for the banks’ customers, things are tough for the banks. Right now, Barclays is seeing higher levels of bad debts, for example.I’ve long ago abandoned any notion of trying to invest in Barclays or any other bank for the long term. What’s the point? The stocks will lead the market into and out of every recession and downturn. Profits will swing up and down and, over the long haul, my investment could end up going nowhere. That’s essentially what has happened since the last crash around 11 years ago with Barclays. Why shouldn’t it happen after this one?It’s cheap, but is it risky?But the stock does look cheap. With the share price near 103p, the net tangible asset value is running close to 0.3. And City analysts have pencilled in a triple-digit percentage rebound in earnings for 2021. It’s easy to make a case for Barclays being too cheap to ignore.If I were to invest in the share now it would only be a relatively short-term trade aiming to catch the next up-leg. Back in 2009, for example, Barclay’s shot up by about 260% from its crash lows over a period of just seven months. Yet after that dramatic rise, the share has never been as high again since, which adds more weight against the idea of choosing the stock for a long ‘hold’.I know there have been a few dividends along the way for shareholders, but capital losses can wipe out years’ worth of income gains when a stock crashes. And although the valuation indicators show the share looks cheap now, it is still risky. Barclays is so beholden to the outcomes in the real economy that it could easily plunge 50% again from where it is now before it starts to recover.On balance, I’d rather invest in one of the many other decent companies listed on the stock market. So Barclays isn’t too cheap for me to ignore. See all posts by Kevin Godbold Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your free copy of this special investing report now!center_img Is the Barclays share price now too cheap to ignore? Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares 5 Stocks For Trying To Build Wealth After 50last_img read more

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Why I’m considering the Aston Martin share price

first_img See all posts by Rupert Hargreaves Why I’m considering the Aston Martin share price Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Rupert Hargreaves | Saturday, 23rd January, 2021 | More on: AML Simply click below to discover how you can take advantage of this. I am considering adding Aston Martin (LSE: AML) shares to my portfolio. While the company might not be suitable for all investors, I believe it may fit my value investing style well. However, I’m wary that the business may not live up to expectations. Therefore, as an investment, I would only ever consider a modest position. Nevertheless, there are a couple of reasons why I believe the business may be able to reverse its poor performance over the past few years. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Weighing up the Aston Martin share priceThere are a couple of qualities that I look for in every investment. These are a strong brand and an experienced management team.Aston Martin certainly has the former. The company owns one of the most coveted luxury car brands globally. In 2018, the brand was estimated as being the seventh most valuable brand in the UK. When it comes to management, Aston Martin has a mixed track record. However, its new management team is made up of a former Mercedes executive and Canadian billionaire, Lawrence Stroll, who earned a great deal of his fortune turning around luxury brands. There’s no guarantee he will be able to do the same with the luxury carmaker, but Stroll has an impressive CV nevertheless. The fact that the company has both of the qualities outlined above has piqued my interest in the Aston Martin share price. Still, the group does have some drawbacks. For example, I’m not particularly eager to invest in businesses loaded with debt.The carmaker has a lot of expensive debt. Last year it raised a total of $1.1bn at an interest rate of 10.5%. In comparison, blue-chip Royal Dutch Shell issued debt last year with an interest rate of less than 2.4%. This tells me that Aston had to offer investors a lot to get them to hand over the cash. The group also issued nearly £250m of shares last year to raise even more money. Problems ahead?Aston Martin believed that by raising so much money last year, the organisation wouldn’t need to tap the market again. That may be true. The group may have borrowed enough to put its issues behind it. Just because the company has struggled in the past, does not mean that it will again in the future. However, I think the business has an uphill struggle ahead of it. Too much debt can be hugely problematic for a business, and I’ve made many mistakes in the past buying into highly indebted firms. As such, I plan to continue watching the Aston Martin share price closely over the next few months to see if its turn around begins to gain traction. If the green shoots of growth begin to show, it could be an extremely positive sign, although a turnaround is not guaranteed.  Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img read more

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My best stocks to buy now list: 2 FTSE 100 shares I’d buy and hold for 10 years

first_img Image source: Getty Images. See all posts by Peter Stephens Despite the recent stock market rally, a number of FTSE 100 shares continue to trade at prices that may not reflect their long-term potential. As such, they could prove to be among the best stocks to buy now. That is because of their capacity to deliver recoveries in the coming years.Clearly, there is no guarantee that any stock will ever bounce back to its previous levels. The economic outlook could deteriorate, or their financial performance may disappoint.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, I feel the risk/reward opportunities on offer from these two companies could make them relatively attractive. As such, they may be worth buying now and holding for the next decade.An undervalued company relative to FTSE 100 sharesGSK’s share price has declined heavily in recent weeks after the healthcare business warned that its dividend may be cut in future. As such, it has underperformed many other FTSE 100 shares in the last year. It is currently down 25% over the last 12 months.As a result of its stock price decline, the company now has a price-to-earnings (P/E) ratio of around 11. This suggests that it could be undervalued relative to the wider stock market. And with a dividend yield of over 6%, investors may have priced in the potential for a reduction in dividend payouts over the coming years.A stock with improving long-term prospectsAnother company that has underperformed many FTSE 100 shares in the last year is Imperial Brands. The tobacco business’s shares have declined by around 20%, with investors adopting a cautious stance due to its change in management and disappointing financial performance. It also faces a general decline in smoking in many markets. Looking ahead, Imperial Brands is forecast to return to profit growth next year. Its dividend yield of almost 10% suggests that it could offer good value for money relative to other FTSE 100 shares. And, with a refreshed management team and new strategy, it may be able to expand its presence in the lucrative next-generation products segment that includes e-cigarettes.Building a diverse portfolio of UK sharesAlthough GSK and Imperial Brands may offer good value for money after their recent share price declines, there is no guarantee that they will deliver outperformance of other FTSE 100 shares. In fact, there is no guarantee that they will produce positive returns over any time period due to the uncertainty that continues to exist in the world economy at the present time.As such, it is worthwhile diversifying across a wide range of companies. This can reduce the scope for one or more poor performers to negatively impact on a portfolio’s returns. Through building a diverse portfolio, it may be possible to experience a period of growth – especially among today’s undervalued shares. They may offer the greatest scope for capital growth in a likely stock market rally over the coming years. Simply click below to discover how you can take advantage of this. Peter Stephens owns shares of GlaxoSmithKline and Imperial Brands. The Motley Fool UK has recommended GlaxoSmithKline and Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Our 6 ‘Best Buys Now’ Shares My best stocks to buy now list: 2 FTSE 100 shares I’d buy and hold for 10 years I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Peter Stephens | Friday, 19th February, 2021 FREE REPORT: Why this £5 stock could be set to surgelast_img read more

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Is the QFI share price set to become a big multibagger?

first_img Investing in penny shares is a popular strategy, and Quadrise Fuels (LSE: QFI) certainly fits that category. The QFI share price is just 5p, but it has climbed 220% over the past 12 months. Along the way, it dipped as low as 1.15p at one stage. So what’s the story, and is this a penny share that could make me rich?It’s all about synthetic heavy fuel oil (HFO). My Motley Fool colleague Zaven Boyrazian has explained it. In short, HFO is a fuel derived from oil and used by cargo ships. But it’s not exactly clean — it’s big in greenhouse emissions, and highly toxic. That’s where Quadrise Fuels and its Multiphase Superfine Atomised Residue (MSAR) technology comes in. It’s a way to combine HFO residue with water and produce a non-toxic alternative fuel with reduced carbon dioxide and nitrogen oxide emissions.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That sounds good to me, and the industry seems to like it too. This bioMSAR product, as its called, dominated the company’s interim results released in March. So, we have an effective technology, producing a lower-emissions fuel that could be in heavy demand in the coming years. The QFI share price gains since the formal launch in December do not surprise me.What’s the downside?But it can’t all be roses, can it? Well no, as the financial situation does look risky to me. Many a promising growth company with an exciting new product has tempted me over the years. But the need to keep seeking new finance has diluted out the early investors and left them with little or nothing. Quadrise Fuels is not profitable yet, reporting a £2.3m loss for the six months to December 2020. And that has to put a drag on the QFI share price. There was £1.1m in cash at 31 December. And Quadrise raised £7m from a placing in March. There should be enough to keep the company going until July 2022, but is that long enough to turn to profit? I think it’s very likely that further cash will be needed before we see any profits. Still, Quadrise does have a proven product, which is better than many growth companies at this stage in their development.QFI share price historyI keep coming back to the QFI share price of just 5p. Now, the absolute level really doesn’t matter. The company would be exactly the same with one hundredth of the number of shares priced at 500p. But there’s one rule of thumb I always remember. Penny shares almost never start out that way — they usually start a lot higher and then crash.That’s exactly the story at Quadrise Fuels. Back in 2013, investors valued the shares at more than 50p. We’re looking at a 90% fall in a little over seven years. Still, past performance is not a guide to future performance, and that works both ways. Just because the QFI share price has crashed in the past, that doesn’t mean it won’t keep on rising over the next few years. There are plenty of risks here, and I rarely buy unprofitable growth stocks or penny shares. But this one does tempt me. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Is the QFI share price set to become a big multibagger? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Addresscenter_img FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Alan Oscroft | Tuesday, 18th May, 2021 | More on: QFI See all posts by Alan Oscroft Our 6 ‘Best Buys Now’ Shareslast_img read more

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Best stocks to buy now: 2 FTSE 100 reopening shares

first_img Rupert Hargreaves | Monday, 24th May, 2021 | More on: CPG IHG Image source: Getty Images Our 6 ‘Best Buys Now’ Shares As the reopening of the UK economy continues, I believe some of the best stocks to buy now are businesses that may benefit from this trend. As such, here are two FTSE 100 companies that I’d buy for my portfolio. Best stocks to buy nowThe first company on my list is the catering group Compass (LSE: CPG). Before the pandemic, this enterprise operated a relatively profitable business.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Contract catering requires little upfront investment as the facilities and equipment are usually owned by the client. This allowed the company to generate robust profit margins and a strong return on investment before the pandemic.However, over the past 12 months, the company’s revenue has slumped. It reported a 30.4% decline in its last financial year. In addition, operating margins fell from 7% before the pandemic, to 3.4%. The thing is, the pandemic may have disrupted many of the company’s markets, but people are still eating. This suggests to me that as the economy recovers and reopens, Compass’s revenues should return. This is the primary reason why I believe Compass is one of the best shares to buy now. I think the group should return to growth over the next 12-24 months as the world gets back to normal. That said, it’s unlikely to be plain sailing for the FTSE 100 company over the next few months. It’s unclear if office workers will ever return in pre-pandemic numbers. It could also be sometime before large events return. Further, another coronavirus wave may set its recovery back months. Despite these risks, I’d buy the FTSE 100 company for my portfolio of recovery stocks today.FTSE 100 growthThe other company I believe is one of the best shares to buy now for a recovery portfolio is InterContinental Hotels (LSE: IHG).Just like Compass, this company has suffered significantly over the past 12 months. But the owner of hotel brands such as Holiday Inn, Crowne Plaza, and InterContinental should see a return to growth as travel and tourism activity worldwide recovers.Indeed, the company is already reporting a pick-up in demand. According to its latest trading update, occupancy across its hotels was around 40% at the end of March.However, management noted there was “clear evidence” that revenues would increase substantially in the months ahead, based on forward-booking trends.  Of course, if there’s another coronavirus wave, these trends will mean nothing. Customers will cancel, and the company will return to stage one. That’s the most considerable risk the business faces right now. It could also struggle due to excess capacity in the hotel sector. Still, I’d buy InterContinental Hotels for my portfolio of FTSE 100 recovery shares today despite these risks and challenges. As a way to play the economic rebound, overall I think this is one of the best shares to buy now.  Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Compass Group and InterContinental Hotels Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Best stocks to buy now: 2 FTSE 100 reopening shares The Motley Fool UK’s Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign.But with this opportunity it could get even better.Still only 55 years old, he sees the chance for a new “Uber-style” technology.And this is not a tiny tech startup full of empty promises.This extraordinary company is already one of the largest in its industry.Last year, revenues hit a whopping £1.132 billion.The board recently announced a 10% dividend hike.And it has been a superb Motley Fool income pick for 9 years running!But even so, we believe there could still be huge upside ahead.Clearly, this company’s founder and CEO agrees. Enter Your Email Address Learn how you can grab this ‘Top Income Stock’ Report now See all posts by Rupert Hargreaveslast_img read more

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Will the easyJet share price bounce back?

first_img Last week’s decision to put Portugal on the amber list for UK travellers was a big disappointment for easyJet (LSE: EZJ). But markets had already turned cautious on airlines — the easyJet share price fell steadily for most of May.The airline’s shares have fallen by nearly 10% over the last month, trimming the stock’s 12-month gain to 15%. Travel restrictions may continue a while longer, but easyJet has plenty of cash on hand to survive short-term setbacks — is now the right time for me to buy the stock?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Three good thingsLet’s start with the good news. easyJet has completed its “largest ever” restructuring and cost-cutting program over the last six months. This has included redundancies, pay cuts, and changes to working hours for flight crew.Assuming that air travel returns to normal later this year, I think easyJet’s profitability could recover quite quickly. This could support a higher share price, despite the dilution from new share issues.The next few months seem likely to be difficult, but easyJet still has plenty of cash on hand. The airline reported £2.9bn of cash and unused debt at the end of March. CEO Johan Lundgren does not expect to need more financing unless the 2022 summer season is disrupted.Finally, I think that easyJet’s low-cost structure, large size, and short-haul focus mean that it could take market share from higher-cost flag carrier airlines when air travel recovers. This could help easyJet recover more quickly than some rivals.The bad news?It’s not all good news. Airline industry body the IATA estimates that passenger numbers in Western Europe won’t return to 2019 levels until the end of 2023. This worries me because many of the costs involved in running an airline are fixed. They don’t change when passenger numbers fall.What this means is that while easyJet is flying at reduced capacities, its costs per seat are much higher. This makes it harder to fly profitably. I think this could put pressure on easyJet’s share price for some time yet.Some of these increased costs should fall away quickly when travel restrictions are lifted. But some won’t. One area that concerns me is easyJet’s aircraft finance costs. These have risen sharply due to higher debt levels and an increase in the number of leased aircraft in easyJet’s fleet.These changes helped the airline to raise funds last year, but this money must now be repaid.easyJet share price: my decisionMy sums suggest that at a share price of 1,000p, easyJet shares are valued at around 12 times historic peak earnings. This suggests to me that the market has already priced in a strong recovery in air travel.I’m also worried that it may take longer than expected for easyJet’s profit margins to fully recover. Although some operating costs should be lower, I think these savings may be offset by higher finance costs.On balance, I think easyJet’s share price is probably high enough at the moment. I don’t see any good reason for a higher valuation, but I can see some potential risks. I’m not interested in buying at this level, but I do think that easyJet will remain one of the better airline stocks. Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Will the easyJet share price bounce back? Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Roland Head | Wednesday, 9th June, 2021 | More on: EZJ Enter Your Email Addresscenter_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: London Luton Airport Simply click below to discover how you can take advantage of this. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Roland Headlast_img read more

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