Financial News from The Motley Fool Australia

  • Here’s why Westfield Group popped 2.6% today The Motley Fool Australia - Tue, Jun 17, 2014 2:16 PM AEST

    What: On a day where the S&P/ASX 200 Index (^AXJO) (ASX:XJO) has struggled to post a gain, shares in Westfield Group (WDC.AX) have rallied 28c or 2.6% to be trading at $10.89. While there have been many concerns that the deal will not be approved by shareholders of Westfield Retail Trust (WRT.AX) this time around (a 75% approval rate is required), it is now believed enough shareholders will have changed their stance to give the Group a narrow win. Now what: The deal will see Westfield Group's international assets spun off to form Westfield Corporation, while both the Group's and the Trust's local assets will be merged to form Scentre Group. While I like both Westfield Group and Westfield Retail Trust as investments, I certainly don't think they're the best ideas for today's money.

  • Gold to soar? Which stocks to buy for a market correction The Motley Fool Australia - Tue, Jun 17, 2014 11:00 AM AEST

    Defensive investments including Telstra Corporation Ltd (TLS.AX), Woolworths Limited (WOW.AX) and government bonds provide some lower-risk protection. Gold also may provide some measure of insurance against deflation, inflation and international conflicts. The latter is evident in the mini gold rally while US President Barack Obama continues to weigh up options on action to take in Iraq. The future direction of the gold price is difficult to predict.

  • 3 dividend stocks for your watchlist now The Motley Fool Australia - Tue, Jun 17, 2014 10:40 AM AEST

    It's a sad situation for savers and retirees who rely on a deposit account. Thankfully, investors who understand the benefits that the share market can provide are not bound by the skinny returns of a deposit account, but rather they can seek out significantly better opportunities. Given these circumstances it's easy to see why investors, particularly those thinking about their superannuation and the need to draw down upon it, are focusing on stocks with high dividend yields. That should allow the company to continue to grow its dividend with research provided by Morningstar suggesting dividends totalling 4.5 cents per share (cps) could be paid in FY 2015.

  • Is this analyst right on Woolworths Limited? The Motley Fool Australia - Tue, Jun 17, 2014 6:26 AM AEST

    This morning while reading through the daily "buy" and "sell" recommendations issued by analysts at major stockbroking firms, I noticed one analyst had a "sell" recommendation on Woolworths Limited (WOW.AX). What struck me most about the recommendation to sell Woolworths was not so much the recommendation itself, but rather the reason behind it.  "Woolworths plans to open 35 new supermarkets in the next three years, while Coles plans to open 20 new stores. On average, the Woolworths stores will be smaller than the Coles outlets, and they will be located in smaller population areas.  While the Coles stores will be in new catchment areas, the new Woolworths stores appear to be cannibalising its existing network".

  • 4 reliable blue-chip stocks for retirement The Motley Fool Australia - Tue, Jun 17, 2014 5:54 AM AEST

    With overseas earnings growing quickly and a 5.1% fully franked dividend yield, there's a lot to like about ANZ. Like ANZ it dominates the local market with reputable operating margins and a large customer base, providing the perfect platform from which it can leverage its overseas expansion. It is forecast to pay a 3.2% fully franked dividend in the next 12 months. Despite trading on a whopping 66 times FY13 earnings, the toll road operator is forecast to pay a 4.3% dividend with partial franking.

  • 3 stocks to grow your wealth over the next decade The Motley Fool Australia - Tue, Jun 17, 2014 5:24 AM AEST

    It certainly isn't as cheap as it was three years ago, but Telstra Corporation Ltd (TLS.AX) is still an excellent buy today. We all know how Warren Buffet's Berkshire Hathaway story has played out... The success of the investment conglomerate has been second to none over the decades. The good news is Australian investors have the opportunity to invest in a company with a very similar business approach, which goes by the name of Washington H. Soul Pattinson and Co. Ltd (SOL.AX). Unlike Berkshire however, Soul Patts also offers investors a juicy dividend.

  • Here’s why Arrium Limited tumbled 4.8% The Motley Fool Australia - Tue, Jun 17, 2014 5:12 AM AEST

    Shares in iron ore miner Arrium Limited (ARI.AX) plunged a further 4.8% on Monday after dropping 6% in trading last week. With the iron ore price now trading just below US$91 a tonne after maintaining an average of US$135 a tonne through 2013, confidence is deteriorating for high-cost iron ore miners like Arrium, Mount Gibson Iron Limited (MGX.AX) and Atlas Iron Limited (AGO.AX). While the three larger miners of the commodity, being Fortescue Metals Group Limited (FMG.AX) and in particular BHP Billiton Limited (BHP.AX) and Rio Tinto Limited (RIO.AX), will be able to cope with the lower price, the higher cost miners could struggle to make a profit should the iron ore price drop any lower. Although the iron ore stocks are trading at considerable discounts compared to their prices at the beginning of the year, I am avoiding the sector because I believe there could well be further to fall.

  • 3 reasons to buy Veda Group Ltd shares The Motley Fool Australia - Mon, Jun 16, 2014 2:57 PM AEST

    Shareholders of data analytics business Veda Group Ltd (VED.AX) are likely becoming nervous as the stock continues to gain downwards momentum. However, there is another stock I just can't seem to look past - and it's one that I already own! Its shares have also fallen in price lately and, given its excellent long-term growth potential and fantastic fully franked dividend yield, I can't help but think I should be buying more ...

  • 3 great shares to watch this week The Motley Fool Australia - Mon, Jun 16, 2014 10:56 AM AEST

    At first glance these three companies look very different, but they all have one trait in common - seriously poor trading conditions in their respective industries. Arrium Ltd (ASX: ARI) suffers from weak ...

  • Why SEEK Limited makes a great retirement stock The Motley Fool Australia - Mon, Jun 16, 2014 9:08 AM AEST

    One of the toughest aspects to investing in growth stocks is having the foresight to "pay up" for an investment. Overpaying for any investment - whether it is a residential investment property, a commercial property, a private business, or a share in a listed company - will rarely provide an acceptable return if you have overpaid to begin with. The tricky thing about investing in growth stocks is that on first glance a company may appear expensive and therefore be dismissed by an investor when actually the company may be a bargain when the future growth is factored in. An example of such a company is online employment classifieds business SEEK Limited (SEK.AX).

  • Why you should buy these oil stocks The Motley Fool Australia - Mon, Jun 16, 2014 8:05 AM AEST

    What: Oil producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) were over 1% higher on Friday as details emerge about the quickly escalating troubles in Iraq. According to ...

  • Why Coca-Cola Amatil Ltd looks a bargain The Motley Fool Australia - Mon, Jun 16, 2014 5:06 AM AEST

    Times are certainly tough for shareholders of embattled beverage distributor Coca-Cola Amatil Ltd (CCL.AX). One large investor sold $270 million worth of the company's shares after the market closed on Thursday, indicating they're not so confident of Coca-Cola Amatil's future. A pricing war with Schweppes is still raging while pressures are also coming from supermarket giants Woolworths Limited (WOW.AX) and Wesfarmers Ltd's (WES.AX) Coles business. To make matters worse, doubts have emerged over its growth potential in Indonesia and there are fears of changing consumer health trends and tastes which impacts the certainty of Coca-Cola Amatil's future.

  • 4 growth stocks set to rocket The Motley Fool Australia - Fri, Jun 13, 2014 4:00 PM AEST

    Management at one of Australia's leading information technology (IT) service providers recently stated that cloud-based computing was set to the biggest shift in the IT space since the personal computer was released! Whether you agree with the magnitude of the statement or not, it would certainly appear that cloud computing is set to change the landscape of IT with a number of businesses set to benefit from the growth in cloud-based technology.

  • 3 reasons to hold onto your Macquarie Group Ltd shares The Motley Fool Australia - Fri, Jun 13, 2014 10:45 AM AEST

    The Big Four banks are said to be fully valued in price, but could investment bank Macquarie Group Ltd (MQG.AX) be the same? The investment bank is returning to revenue and earnings levels of previous years. Both international and domestic financial markets are improving from the Global Financial Crisis. The US stock market is hitting new highs and the bull market is still making its way upwards.

  • This top ASX stock is up more than 460% in 2014 The Motley Fool Australia - Fri, Jun 13, 2014 6:15 AM AEST

    Forget Woodside Petroleum Limited (WPL.AX), BHP Billiton (BHP.AX), Oil Search (OSH.AX) or Rio Tinto Limited (RIO.AX), there's another Australian resources stock stealing the limelight. The stock I'm speaking of is Liquefied Natural Gas Limited (LNG.AX) ("LNGL"), a $600 million US LNG play with enormous potential. As some readers may already know, the company has been a favourite of many  writers  here at The  Motley Fool Australia. For those who aren't aware, LNGL has plans to be involved in the liquefaction of LNG through its gas export facility, named Magnolia, in the U.S. state of Louisiana.

  • The 4 share growth portfolio that could change your life The Motley Fool Australia - Fri, Jun 13, 2014 6:07 AM AEST

    With the end of financial year fast approaching investors are preparing themselves for an onslaught of bad news and weak earnings reports. The retail sector has taken centre stage over the past week with a multitude of retailers including Reject Shop Ltd (TRS.AX) announcing downgrades. More importantly, there are some gems which not only have strong historic earnings growth, but that continue to have great future prospects. Slater & Gordon Limited (SGH.AX) has provided shareholders with a total shareholder return (TSR) of 26.7% over the past five years.

  • 3 reasons Cover-More Group Ltd is a top class investment The Motley Fool Australia - Thu, Jun 12, 2014 2:41 PM AEST

    Have you ever heard of the listed niche insurer, Cover-More Group Ltd (ASX: CVO)? If the answer is "no" then you are certainly not alone and that is exactly why this little-known company could ...