That's because Morgans believes the exciting company could be a small-cap ASX share to buy now.

Which small-cap ASX share?

The small cap that Morgans is bullish on is 6K Additive Inc (ASX: 6KA).

It describes itself as a US-based manufacturer and trusted supplier of premium metal powders for additive manufacturing and alloy additions for the aluminium melt industry. Importantly, it notes that all its products are made from sustainable sources.

The company highlights that its manufacturing process produces the highest quality metal powders that are truly spherical, void of porosity and satellites with better unit economics than competing technologies.

What is the broker saying?

Morgans is positive on the company's outlook, highlighting that it has a growing customer base filled with some very large names. It said:

6K Additive (6KA) is a US-based advanced materials company that upcycles metal waste into engineered feedstock, producing high-value powders and alloys for aerospace, defence, medical, energy, and industrial applications. The company delivered 4Q25 revenue of US$5.6m (representing a run-rate of ~US$22.4m pa) with over 100 active customers including ABB, Boeing and Ford.

6KA has a potential sales pipeline of ~US$250m pa and plans to use proceeds from its recent IPO (Dec-25) to consolidate and scale its operations in the US. This will result in a 5x increase in powder production capacity (from 200mt to 1,000mt) and deliver significant margin improvement and production efficiency.

In light of this, the broker has initiated coverage on the small-cap ASX share with a speculative buy rating and $1.30 price target.

Based on its current share price of 88 cents, this implies potential upside of almost 50% for investors over the next 12 months.

Commenting on its speculative buy recommendation, the broker said:

We initiate coverage on 6KA with a SPECULATIVE BUY rating and a target price of $1.30. Backed by proven technology, a closed-loop model, and broad customer validation, we believe the company is well-positioned to benefit from strong demand in metal additive manufacturing and US government initiatives to reshore the sourcing and processing of critical minerals.

Trading on 3.7x FY27F (Jun Y/E equivalent) EV/Revenue versus a domestic peer median of 9.5x, we view 6KA's valuation as relatively attractive – though suited to more assertive investors.

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Investments that offer both growth and income potential are usually lucrative ones. A company, or set of companies in the case of an ETF, that can afford to pay out substantial income whilst consistently growing its earnings and profits is often a sign of a potentially hot investment.

One such investment is in my own ASX share portfolio, and is one that I have held for a number of years now. Ever since my first purchase, this ASX ETF has delivered both growth and income in spaces. As such, I have no plans to ever sell this high-flying ETF.

It is none other than the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

The VanEck Wide Moat ETF is a fund that is designed to mimic the investing philosophy of the legendary Warren Buffett.

Buffett has long touted the benefits of investing in companies with 'wide economic moats'. A moat is a concept Buffett himself coined a while ago. It refers to an intrinsic competitive advantage a company can possess, which helps it stay ahead of its competition, in the same way a castle's moat kept out intruders centuries ago.

An ASX ETF to buy for growth and income?

There are a few forms that this kind of moat can take. Some examples include a strong and trusted brand, a cost advantage over competitors, or providing a good or service that customers find difficult to avoid paying for.

The VanEck Wide Moat ETF holds a portfolio of US stocks that are selected based on their perceived possession of at least one of these moats.

We can see this in action by looking at some of this ASX ETF's holdings. As of 31 August, these included the likes of Alphabet, Boeing, Nike, Disney, Adobe, Caterpillar, Microsoft and Clorox.

It's not hard to see why these names appear in MOAT's holdings. Microsoft, for example, provides products like Office, Teams and Windows that are indispensable in modern workplaces. Disney has some of the best intellectual property in entertainment, while Nike has one of the world's most beloved brands.

This strategy has worked exceptionally well for this ASX ETF. Since its inception in mid-2015, MOAT units have appreciated by about 210% (at recent pricing), which works out to be roughly 12% per annum.

In addition, its investors have also routinely enjoyed substantial dividend income from this ETF. MOAT tends to pay out just one dividend distribution every year. But it's often a substantial one. To illustrate, investors have just banked an annual payout worth $7.56 per unit. That gives this ASX ETF a trailing yield of about 6.1%.

If we combine both growth and income, MOAT investors have enjoyed an average return of 15.05% per annum since inception (again, as of 31 August).

Past performance is never a guarantee of future returns, of course. But even so, this track record, I believe, speaks for itself.

The post I own this ASX ETF for both growth and dividend income appeared first on The Motley Fool Australia.

That's because there are a growing number of exchange traded funds (ETFs) out there for investors to choose from.

But which ones could be buys for Aussie investors right now?

To narrow things down lets take a closer look at five ASX ETFs that could be worth considering if you have $2,000 to invest into the share market this week. They are as follows:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. It gives you exposure to around 1,200 large and mid-cap companies from developed markets — including the US, Japan, the UK, and Europe. It is a low-cost, highly diversified way to invest in the world's most established economies and industries.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF for investors to look at is the VanEck Morningstar Wide Moat ETF. It holds a concentrated portfolio of US companies that analysts believe have sustainable competitive advantages. It also blends in value by selecting stocks trading at attractive prices relative to their fair value. Current holdings include giants such as Walt Disney (NYSE: DIS), Boeing (NYSE: BA), and Nike (NYSE: NKE).

Betashares Asia Technology Tigers ETF (ASX: ASIA)

A third ASX ETF to look at is the Betashares Asia Technology Tigers ETF. It is focused on leading tech companies across Asia, including Tencent, Alibaba, Samsung, and PDD Holdings. For investors who want exposure beyond Silicon Valley, this fund taps into one of the fastest-growing digital economies on the planet.

Betashares Crypto Innovators ETF (ASX: CRYP)

If you are bullish on the long term outlook of cryptocurrencies but don't want to invest in coins then this ASX ETF could be for you. It offers investors exposure to the companies building the crypto economy. This includes exchanges like Coinbase (NASDAQ: COIN), as well as miners and blockchain infrastructure providers.

Betashares Australian Quality ETF (ASX: AQLT)

A final option for Aussie investors to consider buying is the Betashares Australian Quality ETF. It is a smart way to own high-quality ASX shares with strong balance sheets, low debt, and stable earnings. In many respects, this is a refined version of the ASX 200 index, which could be ideal for long-term compounding. It was recently named as one to consider buying by the team at Betashares.

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It's been a banner year for the stock market. However, not every stock has been a winner as some sectors performed better than others. Tech and utilities soared, while others like real estate and healthcare underperformed.

So what are the five worst performers on the Dow Jones Industrial Average (DJINDICES: ^DJI) list of blue chip stocks? Let's take a look.

1. Boeing (down 36.5%)

Boeing (NYSE: BA) has had a rough year. It started early as the stock price fell after the door panel on a Boeing jet flown by Alaska Airlines popped off mid-flight. Follow-up investigations revealed a workplace culture where quality controls became overly lax. Boeing brought in a new CEO, but a full-fledged turnaround could take years.

2. Nike (down 27.5%)

Nike (NYSE: NKE) struggled this year as missteps under former CEO John Donahoe (also ousted this year) led to declining sales and profits and market share losses to upstart competitors like On Holding and Deckers' Hoka brand. Nike was also criticized for moving away from brand marketing and wholesale relationships with chains like Foot Locker. It's expected to change strategy under new CEO and company veteran Elliott Hill.

3. Merck (down 8.5%)

Merck (NYSE: MRK) is one of several pharmaceutical stocks that underperformed this year. The company struggled to find growth beyond Keytruda, a cancer drug, as franchises like HPV vaccine Gardasil and diabetes drug Januvia declined due to Gardasil's weakness in China and competition for Januvia. Keytruda now makes up nearly half of its revenue, though the headwinds against other drugs have eaten into profits.

4. Johnson & Johnson (down 6.3%)

Johnson & Johnson (NYSE: JNJ) is also down this year as it's faced headwinds associated with lawsuits around its talcum-based products, and profits have declined due to legal costs and increased research and development (R&D) expenses.

5. Amgen (down 4.8%)

Like other healthcare stocks, Amgen (NASDAQ: AMGN) missed out on the cyclical tailwinds that lifted the broad market, and it's faced challenges with MariTide, a weight loss drug that could be linked to bone mineral density loss. Revenue from oncology treatments and established products like Enbrel are also down.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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"Space is hard" goes the old saw among space investors. But here's a new truism you might want to memorize: Space is hard -- and it can also be weird.

Investors got their latest lesson in just how strange space investing can get late last month, when NASA revealed that it's planning a new mission to send a volunteer space mission into orbit to adjust the orbit of the Hubble Space Telescope -- and potentially extend the telescope's lifespan by another 15 to 20 years.  

Cue Elon Musk

It should surprise exactly no one to learn Elon Musk is at the center of this latest "weird space news" story. As NASA explains, the space agency has signed an agreement with SpaceX to study potentially sending a "Polaris Program" mission Crew Dragon spacecraft to Hubble, where it will dock with the telescope and use the engines on the Crew Dragon to lift Hubble to a higher orbit.  

For those not familiar with Polaris, this is the private space initiative set up by pilot, billionaire, and Shift4 Payments (NYSE: FOUR) CEO Jared Isaacman last year. Polaris was initially founded to run the Inspiration4 mission that sent four private astronauts (Isaacman captained the crew) to space for a three-day orbit of the Earth in September 2021.

It has since evolved into a multi-mission project that will launch at least three more times -- all aboard SpaceX spaceships -- and attempt to set records for the highest Earth orbit crewed mission ever flown, the first private spacewalk, and the first test of SpaceX Starlink laser-based communications from space, to space.  

Which brings us back to NASA -- and Hubble.

As NASA advised late last month, Polaris and SpaceX have proposed running a mission "at no cost to the government," aiming to potentially keep the 32-year-old Hubble Space Telescope in operation into the 2050s. Although there may be some risk in allowing private contractors to take control of the NASA satellite, the alternative is to allow Hubble's orbit to decay naturally -- in which case the spacecraft might fall back to Earth as early as 2030.  

And of course, the fact that the mission would be performed gratis for NASA just adds to the attraction.

Space volunteers

The volunteer nature of this mission, however, does raise some questions for space investors going forward. Chief among them: How are for-profit companies like Northrop Grumman, Boeing, and Lockheed Martin supposed to compete with a company like SpaceX if it's -- even only occasionally -- going to run off and do volunteer work for NASA for free?

In this particular case of the Hubble mission, of course, it wouldn't really be SpaceX volunteering its services. Rather, billionaire Isaacman -- who is hiring the SpaceX Falcon 9 rocket ship for his flight anyway -- will be picking up the tab.

But in future years, as the cost of spaceflight plummets (in and of itself a problem for space launch companies like the Boeing-Lockheed joint venture United Launch Alliance), the chance that SpaceX might do further missions for free, in order to ingratiate itself to its biggest customer, could rise.

After all, according to SpaceX, once it gets its Starship mega-rocket up and running, the cost of each launch could theoretically fall as low as $2 million -- a relative rounding error that could prompt SpaceX to do some missions for free.

And SpaceX isn't the only space company that's begun performing science missions for free. Upstart small rocket company Rocket Lab (NASDAQ: RKLB), for example, is promising to send a space probe to Venus sometime next year. With funding provided by philanthropists, MIT, and Rocket Lab's own cash, the mission could cost as little as $10 million -- or about 2% of what NASA pays private contractors to conduct similar missions.  

What it means for investors

Suffice it to say: This is not how for-profit companies ordinarily operate.

And, yes, as a space fan myself -- and as a taxpayer -- I applaud the idea of private businesses using their own capital, and supplementing it with help from philanthropists, to advance the cause of space exploration. As an investor, however, I do wonder what this might mean for for-profit aerospace companies like Boeing, Lockheed, and Northrop.

The good news is that, according to data from S&P Global Market Intelligence, these three companies in total still enjoy annual "space" revenues in excess of $30 billion, largely paid for by NASA and other big space customers. For the time being at least, there seems to be more than enough paying work to go around.

As the cost of access to space falls, however, and new rivals become unpredictably -- and illogically! -- willing to do formerly paid-for space work for free, the economics of space investing could become increasingly uncertain.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This year has served an unpleasant but necessary reminder that the stock market doesn't move up in a straight line. Since the beginning of 1950, there have been more than three dozen double-digit percentage corrections in the broader market. Of course, few have been as painful as the bear market we're experiencing now.

However, pain historically brings with it opportunity on Wall Street. When given enough time, every stock market correction and bear market throughout history has been wiped away. That makes bear markets an especially intriguing time to do some shopping.

Arguably one of the best places to begin your search for stocks to buy is the Dow Jones Industrial Average (DJINDICES: ^DJI). The Dow Jones is a 126-year-old index comprised of 30 historically profitable, time-tested, multinational businesses. In other words, these are mature companies that have proved their worth over decades (or more than a century), and they could make smart buys during the bear market decline.

What follows are three attractively priced Dow stocks that have the capacity to turn an initial investment of $400,000 into $1 million by 2028.

Salesforce

The first Dow Jones Industrial Average stock with the tools needed to turn a $400,000 investment into a cool $1 million over the next six years is cloud-based customer relationship management (CRM) software solutions provider Salesforce (NYSE: CRM).

The biggest headwind Salesforce is contending with is the growing likelihood the US or global economy will enter a recession. It's not uncommon for growth stocks to see their valuation multiples contract during recessions as investors become more focused on traditional metrics (e.g., price-to-earnings ratios). Thankfully, Salesforce has a clear-cut edge in the CRM software space that commands a premium valuation.

For those wondering, CRM software is what allows businesses to enrich existing relationships with their customers to generate more revenue. It can cover simple tasks, such as resolving product or service issues, as well as handle more complex chores, like running predictive sales analyses to determine which customers would be likely to buy a new product or service. Keep in mind that while CRM software is perfectly designed for service-oriented companies, it's gaining plenty of traction in the healthcare, industrial, and financial arenas.

What makes Salesforce special is its absolute dominance of the CRM software space. It's been ranked as the No. 1 CRM solutions provider for nine consecutive years, according to IDC, and accounted for close to 24% of worldwide CRM spend in 2021. While Salesforce's share of the CRM market has grown every year since 2017, its top four competitors have shrunk to a combined 19.6% market share.  In short, Salesforce won't be knocked off its pedestal in this double-digit annual growth category anytime soon.

As noted previously, co-founder and co-CEO Marc Benioff has done a phenomenal job of using bolt-on acquisitions as a source of growth. A steady diet of deals has broadened the company's service ecosystem and provided additional cross-selling opportunities.

If Benioff's forecast of $50 billion in annual sales by the end of fiscal 2026 proves accurate -- this would mark just shy of 100% growth from fiscal 2022 -- Salesforce would have a very good chance to generate 150% returns over the next six years. 

Boeing

A second Dow Jones stock that has the ability to turn a $400,000 initial investment into $1 million by 2028 is commercial airline and military aircraft manufacturer Boeing (NYSE: BA).

If there's a Dow stock that perfectly embodies the battle of short-term risk versus long-term reward, it's Boeing. Although the COVID-19 pandemic ravaged the airline industry for a period of about two years, many of the company's issues have been self-inflicted. This includes having its lauded 737 MAX cumulatively grounded for two years due to mechanical and electrical issues, as well as dealing with a roughly 15-month stretch (May 2021-August 2022) where 787 Dreamliner deliveries were halted. 

The key point here is that it's a lot easier to fix internal shortcomings than it would be to deal with persistent demand issues. With 787 deliveries back on track and the company expected to boost 737 MAX output from 27 planes monthly at the beginning of this year to 47 per month by the end of 2023, operating cash flow could really begin to ascend over the next 12 months. 

Something else investors should take into account is that Boeing's backlog remains robust. Through the first half of 2022, Boeing had $372 billion in orders on backlog, including more than 4,200 commercial planes.  Considering that the global energy supply chain is somewhat broken following the pandemic and Russia's invasion of Ukraine, crude oil, and therefore jet fuel prices, are liable to remain high. This could be the spark to encourage commercial airlines to order more fuel-efficient aircraft.

Boeing's defense, space, and security division is another positive for long-term investors. Since most government contracts span multiple years, revenue and operating cash flow for this segment tend to be highly predictable from one year to the next. 

Owning Boeing stock will require patience. But if the company can use the next six years to right the ship and simply get back to where it was on an operating basis prior to the pandemic, it should be able to deliver a 150% return to its shareholders from its current level.

Visa

The third Dow stock that can turn $400,000 into $1 million by 2028 is payment processor Visa (NYSE: V).

One of the most interesting things about Visa is that its biggest headwind at the moment is also one of its greatest catalysts. Visa is a cyclical business, which means that it fires on all cylinders when the US and global economy are expanding, and it struggles when recessions arise and consumers/enterprises spend less. With a number of pundits expecting a US recession, it's no wonder we've witnessed weakness in shares of Visa.

But here's the thing about being cyclical: It strongly favors the patient. Virtually every period of expansion lasts substantially longer than contractions or recessions. This is what allows Visa to grow in lockstep with the US and global economy over time.

Visa finds itself well-positioned for high-single-digit or low-double-digit growth domestically and internationally. In the US, Visa held a 54% share of credit card network purchase volume, as of 2020.  Among the four major processors in the US, none gobbled up more share following the Great Recession than Visa. Meanwhile, it has a multidecade opportunity to expand into emerging market regions considering that most overseas transactions are still being conducted in cash.

A generally conservative management team is a feather in Visa's cap, too. While it could easily enter the lending arena and generate interest income, Visa chooses to focus on payment processing. This choice means the company isn't directly affected by rising loan delinquencies or credit losses during a recession. Not having to put cash aside to cover losses is what allows Visa to emerge from inevitable economic downturns in such great shape.

It's rare that a nearly $395 billion company can sustain a 10%+ growth rate over a long period, but that's exactly what long-term investors are getting with Visa.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Investors are breathing a sigh of relief on Dec. 2 following yesterday's Dow Jones Industrials (DJINDICES: ^DJI) 462-point decline. At 2:11 p.m. ET, the Dow Jones is up 680 points, or 2% higher, as investor worry about the Omicron variant of the coronavirus fades. Today's gains are broad, with 26 of the Dow Jones' 30 component stocks, including Boeing, higher today. 

Today's gains are led by aerospace giant Boeing (NYSE: BA), one of yesterday's worst performers. Shares are up more than 5% on both the reduced fears that Omicron will lead to broad travel bans and news that Chinese regulators are set to recertify the 737 MAX for commercial operation in that country. 

Following on Boeing's heels are payments and credit card giants Visa (NYSE: V) and American Express (NYSE: AXP), with shares up more than 4% on a hopeful outlook about the recovery of global travel and spending. Shares of yesterday's biggest loser, Salesforce.com (NYSE: CRM), are also up almost 3% today following yesterday's double-digit drop after giving underwhelming guidance for its fourth quarter. 

Today's worst-performing Dow stock is Apple (NASDAQ: AAPL), down more than 1% on rumors that demand for the iPhone 13 is falling. 

Boeing investors hopeful on China and continued travel recovery

Word first got out a couple of weeks ago that the Civil Aviation Administration of China (CAAC) was getting closer to letting the company's flagship, narrow-body jet return to commercial service. But a report in The Wall Street Journal on Thursday offered more detail, including what looks like a complete list of changes it requires Boeing to make. That's a serious step toward recertification that would also likely lead to a big jump in orders for Boeing aircraft to service Chinese markets after a multiyear freeze on sales to Chinese operators. 

Boeing's gains, exceeding most stocks today, weren't just a product of good news out of China. Like the other consumer and travel-related companies that gained sharply today, investors are also betting that travel and spending will continue to trend higher, and the initial worries about the Omicron coronavirus variant are probably overdone. 

Omicron bull market?

It seems that many investors believe that to be the case, with most of yesterday's biggest losers and many of the Dow Jones stocks that fell yesterday reporting gains. These include Visa and American Express, which have seen most of their in-country payment volume recover and surge past 2019 levels. However, both have seen cross-border transactions from travel continue to lag pre-COVID numbers. Investors also sent bank stocks up today, with Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) up more than 2.5% on hopes for continued economic health and the potential that interest rates will move higher sooner rather than later. That's a positive for lenders. 

Shares of Caterpillar (NYSE: CAT) and Walt Disney (NYSE: DIS) also gained more than 2.5% today, on expectations that businesses will continue to buy heavy equipment, and consumers will continue to spend and increasingly travel, ideally to Disney resorts and theme parks. Home Depot (NYSE: HD), one of yesterday's biggest winners, gained another 2% today as investors remain convinced that the home improvement giant will continue to win customers looking to improve their current home or update the home they just bought. Housing demand continues to remain sky-high, a positive indicator for the home improvement giant's prospects. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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For many decades, the prohibitive cost of sending humans outside earth meant space travel was monopolised by the public sector.

But this is no longer the case, according to Nucleus Wealth head of investments Damien Klassen.

"For me, what is incredible is the pace of cost reductions being seen in the sector," he said on the Nucleus blog. 

"Elon Musk's SpaceX has brought the cost of launching equipment into space down by a factor of 10. And there is a realistic roadmap to bringing it down by another factor of 10."

He pointed out that only 20 years ago solar power was "a novelty", but after dramatic cost reductions, it is now transforming the energy industry.

"The question is, what sectors could be affected by a similar change? What emerging trends should we be watching today?" 

Klassen said the entry of the private sector makes the new space race very exciting.

"Plus it is an interesting hedge on the continued souring of US-China relations. If the space sector isn't at least on your radar, it should be."

How to get exposure to the space sector

There are many ways to invest in the space industry in overseas markets.

Mammoth US defence contractors, like Boeing Co (NYSE: BA) and Lockheed Martin Corporation (NYSE: LMT), are one path.

"But space investment is only a part of a very large company. And they are often not working on some of the cutting edge technology."

Klassen mentioned that there are a couple of space-themed exchange-traded funds in the US too: Procure Space ETF (NASDAQ: UFO) and ARK Space Exploration & Innovation ETF (BATS: ARKX).

But as for ASX shares, he named 4 companies.

"Electro Optic Systems Hldg Ltd (ASX: EOS) is the biggest of the crew," said Klassen.

"Brainchip Holdings Ltd (ASX: BRN), Xtek Ltd (ASX: XTE), and Kleos Space SA (ASX: KSS) round it out."

The Australian companies are small caps, so there is considerable risk compared to the much larger overseas investments.

"If you are looking for Australian stocks, then be prepared for some red ink on your P&L," Klassen said.

"You need to be comfortable with the product and see a path to profitability."

He warned investors to avoid buying "a dream".

"If there is another space race, you can expect most defence contractors to benefit. That will not be the case for smaller stocks."

Electro Optic Systems shares have lost 37% for the year, while Xtek has shaved 26% off its value. Meanwhile, Brainchip has gained 10.5% so far in 2021 and Kleos Space has returned a handsome 56.5%.

The post Want to invest in space? Here are 4 ASX shares appeared first on The Motley Fool Australia.

This follows the company's latest announcement that it's been engaged by aerospace giant Boeing (NYSE: BA).

At the time of writing, the advanced 3D parts manufacturer's shares are fetching 23 cents, up 27.78%.

AML3D wins important partner

Investors are snapping up AML3D shares after the company provided an exciting update to the ASX.

According to its release, AML3D received a purchase contract from Boeing to produce and supply a 3D printed tooling component.

The Invar-36 "mandrel tool artifact" is a nickel-iron alloy used in applications that require high dimensional stability.

This material contains 36% nickel and possesses a rate of thermal expansion approximately one-tenth that of carbon steel. It's currently adopted in a variety of applications such as telecommunications, aeronautical and aerospace engineering, cryogenic engineering and more.

AML3D will use its proprietary wire additive manufacturing (WAM) process to manufacture the 150kg tool.

Once delivered, Boeing will assess and test the Invar-36 tool for its mechanical properties, internal soundness and vacuum integrity.

AML3D noted that although the contract is worth less than $50,000, the significance of the partnership is massive. This is due to Boeing's size and credibility as a leading international aerospace company. The potential commercial benefits of the collaboration could shoot AML3D to stardom.

Commenting on the agreement, AML3D managing director, Andrew Sales said:

AML3D is very excited to begin working with Boeing, one of the world's largest aerospace companies. This purchase contract will provide the company with a key opportunity to showcase its ability to produce parts on time and to specification with a high-quality customer as the world adapts to 3D printed solutions in addition to traditional manufacturing.

About the AML3D share price

During the past year, AML3D shares went on a steep rise to reach 73 cents in September 2020 before gradually treading lower. The company's shares are up 48% since this time last year but are down 36% year-to-date.

Based on today's price, AML3D presides a market capitalisation of roughly $22 million, with approximately 99 million shares on issue.

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That's where the US markets can come in handy. Not only is America home to some of the best companies in the world such as Apple Inc (NASDAQ: AAPL). it also offers ASX investors some exposure to trends and sectors that the ASX 200 just can't.

So here are 3 ASX exchange-traded funds (ETFs) that have the potential to easily expose any ASX investor's portfolio to the US markets.

3 ASX ETFs that can offer ASX investors easy US markets exposure

iShares S&P 500 ETF (ASX: IVV)

Here we have a simple, cheap US-based index fund. The S&P 500 Index (INDEXSP: .INX) is one of the largest and most-tracked index in the world. It holds 500 of the largest companies in the US. That's everything from Apple and Microsoft Corporation (NASDAQ: MSFT) to Ford Motor Company (NYSE: F) and Adobe Inc (NASDAQ: ADBE). This is the index that IVV tracks. This ETF has been an objectively solid performer over the past 10 years, returning an average of 17.93% per annum. it also has one of the lowest management fees of any ETF on the ASX at 0.04% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another US-based index fund here. But instead of the S&P 500, NDQ tracks the Nasdaq-100 (INDEXNASDAQ: NDX). This index is a little different, holding only the companies that list on the Nasdaq exchange. The Nasdaq is one of the major stock exchanges in the US, but it's a lot newer than its main rival the New York Stock Exchange. As such, it tends to house mostly tech companies. It's largest holdings are Apple, Microsoft, and other tech giants like Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB) and Netflix Inc (NASDAQ: NFLX).

NDQ charges a management fee of 0.48% per annum, and has retuned an average of 20.94% per annum since its inception in 2015.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is a little different from the above examples as it is not an index fund. Rather, it can be described as an 'active ETF'. That's because it invests in companies that meet certain criteria – that of a wide economic moat. VanEck works with Morningstar to identify a concentrated portfolio of at least 40 US shares that show signs of a 'wide moat'.

'Moat' is a Warren Buffett term that describes a company's intrinsic competitive advantage. This can be in a powerful brand, cost advantage or other factors that enable a company to stay on top of its competition. Some of MOAT's top holdings include Pfizer Inc. (NYSE: PFE), Boeing Co (NYSE: BA) and Buffett's own Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B). MOAT charges a management fee of 0.49% per annum. It has returned an average of 20.38% per annum since its inception in 2015.

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The Qantas share price was trading at $4.85, up 2.97% at the market close today.

Yesterday, the airline announced it will be introducing new routes through an expanded deal with Alliance Air.

Let's take a closer look at the latest news from Qantas.

Qantas readying for domestic take-off

According to Qantas, it's getting ready for an expected boost to domestic travel by expanding its 3-year agreement with Alliance Air.

The expansion will see Qantas use 4 more 94-seat E190 jets for its regional QantasLink services. The new planes will bring the total number of aircraft used by QantasLink up to 18.

The new E190 jets mean Qantas can use its Boeing (NYSE: BA) 737 aircrafts to create new routes and increase flight frequency.

E190 jets can complete 5-hour trips, which Qantas says is perfect for linking regional centres with smaller capital cities.

The first route to see more travellers seated on E190 jets will be between Adelaide and Canberra. The small capital cities will see the frequency of flights between them double to 18 a week after the new planes' introduction.

Qantas says more routes and services resulting from the new agreement will be announced shortly.

Additionally, Jetstar has loaned 3 Airbus A320 aircraft from Jetstar Asia in Singapore for use in Australia.

According to Qantas, the increased demand for Australian domestic services coincides with decreased demand in Asian international services.

The Singaporean planes will join 6 that Jetstar has already borrowed from Jetstar Japan.

Jetstar can also use up to 5 Boeing 787-8 planes that normally fly internationally in its domestic operations.

Commentary from management

Qantas CEO Alan Joyce commented on the airline's latest news:

Since travel demand started to recover about a year ago, our strategy has been to think creatively about how we use our fleet to add capacity back in, generate revenue and get more of our people back to work…

Expanding our long-standing relationship with Alliance gives us access to a different aircraft type without spending any capital…

Victoria represents about 20 per cent of our total network and with restrictions in Melbourne easing and as borders start to reopen, we expect to see a quick rebound in travel demand just as we have in other cities when lockdowns ended.

Qantas share price snapshot

This year has been tough on the Qantas share price, though it's not far from the ASX green.

Qantas shares have fallen 0.81% in 2021 but are up 11.61% since this time last year.

The post The Qantas (ASX:QAN) share price has taken off today appeared first on The Motley Fool Australia.

Cathie Wood, the CEO of ARK Invest, is known for finding hypergrowth names with upside potential. The three largest holdings in ARK's six actively managed funds are Tesla, Square, and Teladoc. None of the three is cheap by traditional valuation metrics like price to sales (P/S) or price to earnings (P/E). But ARK believes that these companies, and others like them, will lead to a doubling of U.S. GDP to $40 trillion by 2035. 

By contrast, The Dow Jones Industrial Average (DJIA) will celebrate its 125^th anniversary on May 26. But while it's meant to reflect the entire U.S. economy, it doesn't exactly conjure an image of growth. In fact, the Nasdaq has given investors twice the return of the DJIA over the last five years.

Surprisingly, the four DJIA components that ARK owns -- Apple (NASDAQ: AAPL), Caterpillar (NYSE: CAT), Boeing (NYSE: BA), and Honeywell (NYSE: HON) -- are all relatively stable companies with histories of earnings growth, rather than up-and-coming rising stars. Here's why Cathie Wood likes these four Dow stocks, along with some surprising reasons she doesn't like a few others. 

1. Apple: $79.6 million

The ARK Fintech Innovation ETF (NYSEMKT: ARKF) owns 606,427 shares of Apple, which is worth nearly $80 million as of Apple's closing price on April 12. While this may sound like a lot, Apple is the fund's 24^th-largest holding and comprises less than 2% of its total value. ARK is a firm believer in mobile technology's increasing role in commerce, repeatedly noting the success of China's mobile payment system, so Apple's fintech developments like the Apple Card and Apple Pay make it a natural fit in ARK's Fintech ETF.

Augmented Reality (AR) is one of ARK's most closely followed trends. In its Big Ideas 2021 presentation, ARK called out Snapchat, Facebook, and Apple for increasing their investments in AR (all three companies are held in the Fintech Innovation ETF). ARK also supports Apple's decision to transition Macs to ARM processors. ARK believes ARM could become the new processor standard by 2030, displacing Intel and leading to further domination by AMD and NVIDIA. 

AAPL Total Return Level data by YCharts

2. Caterpillar: $75.6 million

Earth moving equipment manufacturer Caterpillar is the 15^th-largest holding in the ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ). After a strong market-beating year in 2020, shares of Caterpillar are currently right around their all-time high. In fact, Caterpillar is up over 25% so far in 2021, making it one of the best-performing stocks in the DJIA.

Caterpillar is an international company that generates over half its sales from outside the U.S. Global competition in the construction, mining, and energy industries is fierce, especially in China -- which is Caterpillar's hottest market. To stay ahead, Caterpillar is implementing machine learning and big data to help its customers better manage their fleets. Caterpillar has developed tools like Cat Connect and Cat Digital, which can be used for both existing and new equipment. 

3. Boeing: $22.5 million

Boeing is the 11^th-largest holding in the newly launched ARK Space Exploration & Innovation ETF (NYSEMKT: ARKX). As the world's second-largest maker of commercial airplanes and a leading aerospace company, Boeing has a clear role to play in the burgeoning space industry. Boeing's Defense, Space, and Security segment is a prime contractor for NASA's Space Launch System, a heavy-lift rocket for human space exploration. Boeing also builds satellites and software systems for commercial, military, and scientific exploration. 

4. Honeywell: $7.4 million

Honeywell is a minor holding, ranking 28^th in ARK's Space ETF. Honeywell manufactures and designs components for the commercial airline industry and the defense industry. However, its strides in the industrial internet of things (IIOT), which involves developing operational technology (OT) for industrial equipment, are right up ARK's alley. Honeywell would fit nicely into the ARK Innovation ETF (NYSEMKT: ARKK), the largest of its actively managed ETFs. But because the fund is centered almost entirely around tech stocks, that's unlikely to happen anytime soon.

Surprising Dow stocks ARK doesn't own

ARK's tech-centered focus may lead investors to assume it owns Salesforce and Microsoft, which are both Dow stocks. But it doesn't. The ARK Next Generation Internet ETF (NYSEMKT: ARKW) holds 53 securities, but not Verizon. And while five out of the DJIA's 30 components are financial companies, Ark's fintech fund holds none of them. Finally, the ARK Genomic Revolution Multi Sector ETF (NYSEMKT: ARKG) is focused heavily on healthcare, yet holds none of the DJIA's five healthcare stocks. 

Takeaways

Industrial stocks aren't often thought of as the most exciting sector on Wall Street. However, leading dividend-paying industrial stocks with growth potential have been handsomely rewarding investors for decades. Cathie Wood and her team think a handful of these names have bright futures in emerging industries. Honeywell and Caterpillar, in particular, stand out as two top-tier companies poised to raise their dividends and beat the market over the long term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Cathie Wood's ARK Invest only owns 4 Dow stocks, and they aren't what you think appeared first on The Motley Fool Australia.

At the time of writing, the Zoono share price has retreated slightly but still remains a staggering 38.3% higher to 83 cents per share.

US tested and approved boosts Zoono share price

According to the release, Zoono's Microbe Shield surface sanitiser has been tested by an independent laboratory in New Jersey, United States. The US FDA regulated facility found Zoono's flagship sanitiser to be successful against Human Coronavirus 229E. Previously the products had only been tested against the COVID surrogate feline coronavirus.

Additionally, the product now meets the US EPA Standard ASTM E1053, which relates to the assessment of the virucidal activity of chemicals.

Following the US regulatory approval, the company has sourced new distribution partners in Norway, Luxembourg, Greece, and Poland. Reportedly initials orders are pending in each country.

Deals for days

In another win for the Zoono share price, the company has gained another two highly notable partnerships. After an extensive market evaluation, Microsoft Corporation (NASDAQ: MSFT) has offered Zoono the opportunity to be an approved supplier to the tech company's office network.

An initial purchase of Zoono's sanitiser products has already been received for the Redmond Campus. This location is Microsoft's corporate headquarters in Washington, with 125 buildings and 53,500 staff across the campus. A full US rollout will be engaged once employees return to the campus in May.

Secondly, Zoono has partnered with Boeing Co (NYSE: BA) to distribute Microbe Shield to airlines globally. The flagship sanitiser meets the Boeing standard for use in aircraft interiors. As a result, Boeing has made the product available from its official online store.

Sales, production, and intellectual property

Zoono indicated that its orders shipped for Q3 FY21 are in excess of $5 million. This is despite global freight and logistic challenges. Furthermore, Fine Hygiene Group is on target to meet sales projections of US$7 million over the next 6 months. Once relevant regulatory requirements are satisfied, Fine will expand into new markets including Europe, United States, and Australia.

Lastly, the company has brought its plastic bottle production in-house. This is in an effort to avoid supply chain bottlenecks. Zoono plans to commence production in the near future. As a means of protecting the company's specialised formulations, global patent applications have been submitted.

Zoono share price rejuvenation

The update is a sight for sore eyes, after a year of disappointing share price performance for Zoono shareholders. Even with the inclusion of today's gain, the share price is down 53% in the past 12 months.

However, this seemingly positive update has brought a renewed interest to Zoono. In fact, the traded volume is in excess of 5.8 million shares — more than 17 times the shares monthly average volume.

The company's share price remains volatile due to its small market capitalisation of $135 million.

The post Zoono (ASX:ZNO) share price soars 40% on Microsoft deal appeared first on The Motley Fool Australia.

At the time of writing, the company's shares have clawed back some ground and are now trading at 90 cents, down 20%.

This, after the advanced aerospace manufacturer provided investors with a business update on its preliminary results for the first half of FY21.

What did Orbital announce?

In today's release, Orbital advised it achieved preliminary revenue of $19 million for the six months ending 31 December 2020. The company attributed this 67% increase on the prior corresponding period to strong output from its two engine production lines.

Orbital is the primary engine supplier for tactical unmanned aerial vehicles to Insitu Inc – a subsidiary of global behemoth, Boeing Co (NYSE: BA). Orbital runs operations in both Australia, and the United States.

Orbital CEO and managing director, Todd Alder, commented:

Throughout 2020 we proactively managed the additional risks brought about by COVID-19, managing our global supply chain and distribution network and implementing measures within our operations to keep our teams safe while continuing to manufacture.

So, what's sinking the Orbital share price?

With the positive news at the top of the release, Orbital went on to mention that it has revised its 2021 full-year revenue guidance. The adjustment is due to Insitu Inc requiring a drop in production volumes from one of the two engine models. Recent challenging market conditions caused by COVID-19 were blamed for what will be a loss of potential revenue to the company.

As a result, Orbital altered its production targets up until June 2021. Revised revenue guidance for the FY21 is expected to fall between $30 million and $40 million.

Mr Alder touched on the renewed update, saying:

Taking into consideration reduced customer requirements, we have revised our forecast production targets for the second half of FY21. While this adjustment to our production schedule is regrettable, we continue to manufacture and progress our deliverables under the existing long term supply agreement with Insitu.

It's worth noting that, Orbital has two of five engine models currently in production with Insitu Inc. A third engine model is currently in the development stage. It's anticipated that the upcoming engine will be ready for production in Q4 FY21 at its Western Australia facility.

Customer diversification

To avoid stunted growth, the company is focused on diversifying its customer base. Orbital has been busy at work with Northrop Grumman and one of Singapore's largest defence companies on engine development programs. It has scheduled the engine protypes to be sent to its retrospective customers in 2021 for further testing.

Said Mr Alder:

We continue to make good progress with our existing engine development programs and are advancing negotiations on additional Tier 1 defence opportunities.

With our superior heavy fuel patented technology and the current market opportunities that exist, we are confident in our ability to build our global customer base and create an exciting platform for long term growth in the rapidly evolving UAV industry.

The post Here's why the Orbital (ASX:OEC) share price has tumbled 20% today appeared first on The Motley Fool Australia.

Boeing (NYSE: BA) issued its annual forecast for the commercial jet market in October. Not surprisingly, the aerospace giant reduced its estimate for global aircraft deliveries over the next 20 years – and especially for the current decade – relative to its 2019 outlook.

Despite slashing its long-term forecast, Boeing still may be overestimating the level of aircraft demand between 2020 and 2029. However, the scariest thing in its updated outlook is that even if its demand forecast is accurate, Boeing has virtually no path to getting back to pre-pandemic production levels during the current decade.

What the forecast says

Boeing estimates that manufacturers will deliver 18,350 new aircraft between 2020 and 2029, including 1,240 regional jets: a market segment that Boeing and Airbus (OTC: EADSY) don't participate in. That puts the estimated addressable market for Boeing and its chief rival at 17,110 aircraft over the 10-year forecast period.

Unsurprisingly, Boeing expects single-aisle mainline jets (like the Boeing 737 MAX) to continue to account for the vast majority of demand, with 13,570 deliveries between 2020 and 2029. Wide-body passenger jets and freighters represent the other 3,540 projected deliveries.

Most of these deliveries are spoken for

The scary thing for Boeing is that most of these projected deliveries have already been sold – and mostly not by Boeing. This is particularly true for narrow-bodies: the high-volume segment of the market.

In the first 10 months of 2020, Airbus delivered 355 single-aisle jets. It ended October with an enormous backlog of 6,517 unfilled narrow-body orders across its A220 and A320 families. Airbus' 2020 deliveries and current firm orders account for 51% of what Boeing projects will be delivered over the entire decade in the single-aisle market. Meanwhile, due to the 737 MAX grounding, Boeing has only delivered 13 narrow-bodies year to date (mainly military variants). Its backlog for the 737 family – its only entry in the single-aisle market – totals 3,365 orders.

Furthermore, while Boeing and Airbus dominate the commercial jet market, they aren't the only players. Russia's Irkut had 175 firm orders for its MC-21 jet as of September. Meanwhile, China's COMAC claims to have 815 orders for its C919 jet, although only around 300 of those appear to be firm orders. Both new models had their first flights in May 2017, and both manufacturers expect to begin deliveries in late 2021, although it's certainly possible that the timeline will slip to 2022.

In short, more than 10,700 single-aisle jets have been delivered in 2020 or are on firm order today. The 737 MAX accounts for less than a third of that figure. Meanwhile, fewer than 3,000 additional single-aisle jets would need to be ordered to meet the market's projected demand through 2029.

Unless Boeing secures the lion's share of those orders – which would mark a big turnaround from recent history – it is virtually locked into its current position as a distant No. 2 in the most important part of the commercial jet market.

To be fair, Boeing is in better shape for wide-bodies, where it still has leading market share. It has delivered 98 wide-bodies this year – including passenger, freighter, and military variants – compared to just 58 deliveries for Airbus. Boeing ended October with 910 outstanding firm wide-body orders, versus Airbus' 860. However, wide-bodies (including freighters) will account for just 20% of aircraft deliveries this decade, according to Boeing's forecast. Moreover, that projection could still be too generous.

A new normal for Boeing

In 2018, Boeing delivered 806 commercial jets: 580 737s and 226 wide-bodies. Meanwhile, Airbus delivered 800 jets: 646 narrow-bodies and 154 wide-bodies.

Airbus' current narrow-body backlog equates to an average of more than 700 annual deliveries between 2021 and 2029: more than what it delivered in 2018. Boeing's current backlog wouldn't even support an average of 400 annual 737 deliveries. Since there are potentially fewer than 3,000 additional orders up for grabs for narrow-body deliveries this decade, the aircraft manufacturer would need to capture a disproportionate share of that business to get back to building nearly 600 737s annually.

Getting even 50% of the incremental order volume could be challenging. Airbus' A220 is smaller than the smallest 737 MAX model, giving it lower trip costs, while the A321XLR has significantly more range than any 737 MAX. Thus, Airbus addresses market segments that Boeing doesn't participate in today. Additionally, Irkut and COMAC are virtually guaranteed to capture additional orders because of their status as national champions. COMAC in particular is poised to tap into the enormous Chinese airline market.

As for wide-bodies, even if Boeing's forecast is accurate and it maintains a modest market share advantage, annual deliveries would remain firmly below its 2018 tally. Barring some unexpected event that causes a rapid shift in the market share landscape, Boeing will struggle to make a full recovery from the double-whammy of the 737 MAX grounding and COVID-19 pandemic.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The scariest thing in Boeing's 10-year forecast appeared first on The Motley Fool Australia.

The company provided an update on the order this morning, after which Amaero shares were placed in a trading halt. The trading halt was requested in relation to a potential capital raising. 

About Amaero 

Amaero made its ASX debut on 6 December 2019 at an initial public offering (IPO) offer price of 20 cents per share. The company uses additive manufacturing processes, otherwise known as 3D printing, to produce components out of various metal alloys. Its clients are predominantly in the defence and aerospace industries.

Amaero is Australia's largest metal 3D printing company by volume of 3D printers. Currently, six out of the top ten defence companies in the world are Amaero clients. 

The company's growth strategy is to focus on immediately addressable commercial opportunities whilst still providing growth optionality. It aims to assist defence and aerospace clients in preparing for future military and aviation platforms utilising Amaero's proprietary metal 3D printing processes and alloys. The company says its products provide improved performance and decreased weight whilst delivering mechanical enhancements not achievable via traditional manufacturing methods.

Amaero share price performance 

The Amaero share price has rocketed more than 300% since its IPO to a closing price of 65 cents on Wednesday. The company has made a series of significant achievements since listing including: 

• Tooling agreement with Fletcher Insulation, Australia's leading insulation company, for the development of an additive manufacturing application, to provide a superior tooling solution to Fletcher and its global manufacturing network. 
• Development agreement with top 10 global automotive manufacturer for metal 3D printing of tooling. 
• Commencement of qualification statement of work for the world's largest aerospace manufacturer. 
• International patent application in final stage for its high performance titanium alloy. 

The company had $4 million in cash and cash equivalents as at 30 June and believes it can become cash flow positive by 2023.

Boeing purchase order for evaluation parts 

Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners. It also produces defence, space and security systems which support airlines and government customers in more than 150 countries. Its products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defence systems, launch systems, advanced information and communication systems, and performance-based logistics and training. 

The evaluation parts for Boeing will be developed and manufactured at Amaero's facilities in California and Melbourne. 

The post Amaero (ASX:3DA) shares in trading halt after Boeing order appeared first on The Motley Fool Australia.

The study commissioned by investor education provider Invezz.com found that 9 out of the 10 most-searched stocks are in the tech sector.

Tesla Inc (NASDAQ: TSLA) was the most-searched share among Australians, seeing an average monthly search volume of 79,800 over the last 12 months.

The result is perhaps not surprising, with the electric car maker's shares going gangbusters this year. It started 2020 at US$86.05 but is now US$574 — multiplying 6.7-fold in just 11 months, during a pandemic year no less.

In fact, The Motley Fool reported this week that there are now more Tesla shareholders in Australia than people who actually own the company's cars.

The only ASX share Australians are interested in

Zero-brokerage trading platforms for US shares have apparently shifted Australian investors' attention overseas. The only ASX-listed company to feature in the top 10 was Afterpay Ltd (ASX: APT).

The buy now, pay later provider's shares have also been on a wild uphill ride. 

The Afterpay share price sat at $8.90 during the bottom of the COVID-19 crash, but is now hovering around $96. It has broken the $100 ceiling several times in recent weeks.

The only non-technology share in the top 10 was Boeing Co (NYSE: BA).

The aerospace company has had a turbulent couple of years with well-publicised accidents in its new 737 MAX plane and COVID-19 killing the aviation industry.

The share price reached US$440 in March last year just before the manufacturer grounded the 737 MAX. It then sunk to US$95.01 in March as flying became a distant memory.

Boeing stocks have climbed well this month in anticipation of coronavirus vaccines to sit currently at US$217.61.

Australians want knowledge before diving into shares

The study also asked more than 1,700 Australians who did not own shares what would encourage them to buy some.

Almost three-quarters said more knowledge of what they're investing in would get them over the line. Cutting down on personal expenses to free up more cash was the big concern for 65% of respondents.

A fear of risk was also a factor that caused hesitation. An acceptance of those risks would get 62% to buy their first shares, while 34% would take the leap if they were less afraid of negative market forecasts.

The post 10 most searched shares in Australia appeared first on The Motley Fool Australia.

As CommSec is one of the largest online brokers in the country, this data can be indicative of general investing trends in our market. This week's data covers 16-20 November.

So here are the top 10 US shares that CommSec customers were buying last week:

Most traded US shares on the ASX

According to CommSec, the 5 most traded international shares last week were the following:

1. Tesla Inc (NASDAQ: TSLA) – representing 7.7% of total trades with a 67%/33% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 4.8% of total trades with a 71%/29% buy-to-sell ratio.
3. Alibaba Group Holding Ltd (NYSE: BABA) – representing 2.7% of total trades with a 91%/9% buy-to-sell ratio.
4. Apple Inc (NASDAQ: AAPL) – representing 2.4% of total trades with a 52%/48% buy-to-sell ratio.
5. Palantir Technologies Inc (NYSE: PLTR) – representing 2% of total trades with a 91%/9% buy-to-sell ratio.

The next 5 most traded shares were these:

1. Pfizer Inc (NYSE: PFE)
2. Moderna Inc (NASDAQ: MRNA)
3. Microsoft Corporation (NASDAQ: MSFT)
4. Boeing Co (NYSE: BA)
5. Teladoc Health Inc (NYSE: TDOC)

What can we learn from these trades?

Another fascinating set of numbers to peruse this week, to be sure. Last week, we noted how the frantic buying pressure we saw in October has dampened into a more even buy/sell spread. That trend seems to be continuing this week, with a far more even split between buyers and sellers for Apple and Tesla especially. However, we also see that trades of Alibaba and Palantir are remaining very lopsided towards the buying end.

Interestingly, some investors seem to be very keen to take profits off the table with Tesla, given the stock has climbed close to 40% since the start of the month (although 67% of traders are still evidently hoping they are not too late to jump on this train). However, the Apple share price is pretty much flat over the month, despite 48% of traders also taking cash off the table there.

Turning to Alibaba and Palantir, the shares investors are scrambling to buy, Palantir is up 126% since the start of the month, whereas Alibaba is down more than 8%.

Another stock to note here is Boeing – the giant US aerospace and weapons manufacturer. Boeing has not appeared on this list for months (at least to my knowledge), and yet makes the No. 9 spot this week. Again, it's probably got something to do with Boeing stock rising more than 50% in November so far.

We also see continued interest in pharmaceutical/vaccine companies like Pfizer and Moderna, which continues the trend we have seen in recent weeks as well.

A final trend we see continuing from last week is the absence of the FAANG stocks (aside from Apple) that often appear at the summit of these lists. Amazon.com Inc (NASDAQ: AMZN) and Facebook Inc (NASDAQ: FB) didn't even make the top 10 (they were 11 and 18 respectively), whereas Google parent Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) couldn't even cut the top 20.

The post Here are the US shares that CommSec customers are buying appeared first on The Motley Fool Australia.

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Cyan Investment Management director and portfolio manager, Dean Fergie, reveals two Aussie businesses that are winning big contracts, and some ASX-listed foreign companies to avoid.

The Motley Fool: What's your fund's philosophy?

DF: Our philosophy is to find smaller, less well-known stocks that are commercially proven but not well-recognised and likely to go through a sustained growth phase for the next 3 to 5 years or more. 

We tend to avoid really speculative businesses and businesses that are mature, and look for the next ones that are up-and-coming.

MF: So is it fair to say that your investments are focused on smaller cap?

DF: Yeah. Our philosophy is that the bigger you get, the harder it is to grow at double digit-plus rates. So by definition you have to look down at the spine of the market.

COVID-19 crash 

MF: How's the fund going this year with all the volatility?

DF: The short answer is volatile. We took a lot of pain when COVID first came out and then have retraced some of that and more since that time.

MF: Did you manage to buy anything during the March dip?

DF: We bought quite a few stocks. I think we played it reasonably well. But you can probably always do a little bit better in hindsight. 

What I saw is the stocks or the funds that were really defensively positioned in March did really, really well. Then in April and May they all did relatively poorly and vice versa. 

We made some smart investment positions, but did we put all our money into that cohort of tech stocks that have done exceptionally well? No, unfortunately not.

I think more than ever it's a really important time to be diversified. Because if you've got all your stocks in a really defensive basket, or a really aggressive basket, or technology-laden, or value-based, there'll be times when you'll do incredibly well and times where you'll do incredibly poorly. And it's very uncertain when those periods are going to be. 

Buying and selling 

MF: What do you look at closely when considering buying a share?

DF: The ability to scale… Obviously that leads to technology businesses, specifically software, but also businesses that can grow organically or that are embarking on potentially a new kind of business angle that's not largely been explored already. 

We look at a lot of tech businesses, financial services, and we're quite big in education. We've dabbled quite successfully in some food businesses — one of our early investments that was successful was Bellamy's Australia Limited (ASX: BAL). Professional services as well.

MF: What triggers you to sell a share?

DF: Disappointment in terms of management execution, or potentially if there's new competitors to come into the market, or just companies [that] disappoint on an earnings front. 

If you think you're losing money on something, or if something's changed, just sell out. Take the capital loss and move into something that's more successful. That's the way we look at things.

MF: Even if the company is doing reasonably well, would you sell out because it's reached a certain target that you might have set for yourself?

DF: Yeah, there's an element of that. I guess what happens is that if you have stocks that become very successful, they become quite a large part of your portfolio. We have a hard limit of not having any one position more than 10% of our portfolio. So when you have businesses that rise exponentially, you're forced to sell them down. I think that's sensible. 

One of the beauties of stocks is that you have these incremental changes to your holdings. It's not like buying a house where you're either all in or all out. You can fine-tune your exposure to stocks relatively easily and cost-effectively. 

That's one of the great advantages of the stock market that I think a lot of investors don't really take advantage of. They want to buy everything at the bottom and sell everything at the top, and that's unrealistic. 

So we just buy more stocks at lower prices and sell more of them at higher prices, and not try and be too binomial about those decisions.

What's coming up?

MF: Where do you think the world is heading at the moment?

DF: I wouldn't be alone in saying that the broader economy has got a lot of challenges ahead. But what we're seeing in 2020 is that there's been a massive disconnect between economic outlook and the stock market. They just don't reflect each other anymore. 

A lot of that has actually been driven by incredibly low interest rates. Just emotionally, investors don't want to leave their money in any kind of defensive asset class if it's not giving them any return. 

So every opportunity where there's a market dip, they've looked at getting into the stock market. And even the biggest funds, the pension funds, and massive super funds tend to be allocating more towards equities. On top of that, you've got a massive amount of retail day traders in the market sending stocks sky high with massive volumes. 

So whilst I think the near-term economic outlook does look challenging, I don't think it's necessarily a bad thing for the stock market because even if you've got businesses that are earning 3% or 4% earnings yields and potentially 1% or 2% dividend yield fully franked, that's a better outcome, if you're prepared to take the capital risk, than leaving your money in the bank right now.

At the end of the day, that's what drives the stock market, demand versus supply.

MF: That situation you just described, do you think it's a fundamental structural change that's here to stay? Or do you think the situation will return back to "normal"?

DF: It will depend on the direction of interest rates. They clearly can't go very much lower unless they go negative and I don't think that's looking like a realistic outcome. 

I would suggest that a lot of that rotation into stocks has already happened. The All Ordinaries Index (ASX: XAO) is not back to pre-COVID highs, but it almost is. Certainly the smaller end, the Emerging Companies Index, is 10% above where it was pre-COVID. 

So you're seeing a lot of money flow back into the stock market really, really aggressively. And it almost creates its own demand. It's almost like this elastic band in that you rail against the bullishness of the stock market till it runs so far that you just give up and cave in — and go and buy stocks like everyone else. 

But there are patches of the market that look crazily overvalued.

When we saw a potential vaccine come out and all those tech stocks tumble within the space of a day, I think that was a little bit of a warning sign — a canary in the coal mine — that it just can't go on forever. 

Sooner or later, all investors are going to come back to buying things on fundamentals. 

Overrated and underrated shares

MF: What's your most underrated stock at the moment?

DF: One stock that we've held for a while and just hasn't performed like we expected is a business called Quickstep Holdings Limited (ASX: QHL), which is an advanced carbon fibre manufacturer. 

They do a lot of work for the defence force… It's capped at sort of $60 million [market capitalisation], it does about $80 million in revenue, and is moderately profitable. 

They just penned a deal to buy a maintenance division of Boeing Co (NYSE: BA), which will add to their revenue. We look at that on just basic earnings multiples and revenue multiples and think it looks really cheap. 

Then when you look at it versus a number of these other advanced manufacturers in terms of like Titomic Ltd (ASX: TTT), AML3D Ltd (ASX: AL3), and Amaero International Ltd (ASX: 3DA)… it just looks ridiculously good value. So that's one we like. 

It's been a long slog for them to get where they are now, but they've got a lot of cash on their balance sheet. Contracts with global defence force businesses like Boeing, Lockheed Martin Corporation (NYSE: LMT) and Northrop Grumman Corporation (NYSE: NOC) — I just think it looks like a no-brainer in terms of a business to buy into, but the market just hasn't recognised it yet.

Another one that's going great guns at the moment is a hospital software provider called Alcidion Group Ltd (ASX: ALC). Again, they just signed a $9 million deal with a hospital in the UK. And they've got more than 20 million bucks in recurring revenue. They're getting very close to profitability. Global rollout. Reference sites.

MF: I see that one's spiked up this month?

DF: Yeah. It hasn't really done too much in the last 6 to 12 months. Everyone got pretty excited, went from I think about 6 cents to about 30, and has sort of come back.

With a lot of stocks, they run on momentum and then they kind of lose a bit of momentum and people get bored and they want to be on the next big thing regardless of what it is. So often you need a new contract or something new to excite people about it. 

I think [Alcidion]'s one of these businesses that just hasn't been big on announcing new contracts, but they've signed some that are really, really significant for a business that size. 

And you've seen that with the success of companies such as Pro Medicus Limited (ASX: PME) and the like. When those businesses get some success, certainly overseas, they can become very, very big businesses. 

MF: What do you think is the most overrated stock at the moment?

DF: I look at businesses like these Israeli technology ones like Weebit Nano Ltd (ASX: WBT), Dotz Nano Ltd (ASX: DTZ), Audio Pixels Holdings Ltd (ASX: AKP). 

They're all speculative businesses that are doing nothing in terms of revenue, keep sucking in investor cash, and don't make money. And they've got valuations in the hundreds of millions of dollars and I'm not necessarily sure that they've got anything particularly special. 

I'd say the same thing about businesses like Titomic — [they] don't really do much and they're still capped at a couple of hundred million bucks.

MF: Do you think there's a phenomenon these days of amateur investors egging each other on in internet forums?

DF: Oh, no doubt. A lot of investors will buy stocks because they're going up. It's pure speculation, but they just want to be in something because they think it'll be worth more next week than this week, not because they understand it, not because they think they're buying it at a cheap price, just simply because it's going up. 

You look at Kogan.com Ltd (ASX: KGN), Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY) as well. They've all got good business models, but the selling product online is not necessarily a business that's got huge barriers to entry. I mean, anyone can open up a Shopify store. 

Sure, you don't have the customer base, you don't have the reputation, you don't have the buying power, but they're not businesses that I think should be trading on 6 times sales and 100 times earnings. I can't see them scaling up any time soon. 

There's a lot out there that I would be very, very wary of on a purely valuation perspective.

Looking back

MF: Which stock are you most proud of from a past purchase?

DF: Afterpay Ltd (ASX: APT) is the obvious one. 

MF: Do you still hold it?

DF: No, we sold out a while ago. 

One that we bought quite a while ago is RAIZ Invest Ltd (ASX: RZI). That one did struggle for a while. It's an online investing platform — I think they offer a really, really good product. Their app's got great functionality. 

They're getting a lot of long-term customers — more people are interested in investing. I think that's a business that's got tailwinds from the structural change that people want to think more about investing in stock markets and not leave their money in the bank. 

Secondly, it's a technology play and it's getting good growth both here and they're looking to launch overseas as well. So that's one that I think will go really well. 

But probably our two biggest winners we've ever had are Afterpay and Bellamy's and, oddly enough, we made a lot of money out of Experience Co Ltd (ASX: EXP) for a while before it kind of went really badly.

Stocks never go up and down in a straight line. And that's one where we got in early and managed to get out enough of them that we ended up getting a good return for our portfolio over a period where it went up 2 or 3 times before they… struggled a little bit.

MF: Has COVID-19 changed or altered your investment methods at all?

DF: What's happened is that investors, if you think of yourself as a traditional strong "numbers and valuation" player… then you would have left a hell of a lot of money on the table. 

I think you're naive to think that the market is just driven by valuations. It's not. It's driven by sentiment, excitement, enthusiasm, momentum, those sorts of things. And they will drive stocks much higher than might be, in your view, intrinsic value. And they can all disappear overnight. 

So you've got to appreciate that there's a lot of other drivers in the market other than pure financial fundamentals and try and kind of second guess where other investors are going to either see risk or opportunity in the market — and try and take advantage of that.

Advice for your readers is try and blend a little bit of fundamental analysis with what you see as an opportunity and excitement towards positions. 

Probably the highest profile stock float this year has been Adore Beauty because it's a mainstream business. A lot of females know about it. It's run by a female founder. It's a great news story. 

But it was, we thought… incredibly expensive. 

People I saw were saying "Oh look, you know, there's a girl… and she wants to buy shares because she thinks it's a really good company." 

You've got to put a framework of what you're buying around it. What are you getting for your money? And if you don't know that, you shouldn't really be investing because it's not that straightforward.

The post This cheap ASX share is supplying US giants: fundie appeared first on The Motley Fool Australia.

While the S&P/ASX 200 Index (Index:^AXJO) performed remarkably well during the coronavirus meltdown, US equities have raced ahead, particularly the tech-laden Nasdaq Composite (INDEXNASDAQ: .IXIC).

Aussies are joining in the party as US tech stocks are among the favourite their picks in the month of June, according to investment platform eToro.

Racing to the top

Electric car icon Tesla Inc (NASDAQ: TSLA) tops the list of US stocks being snapped up by Aussie investors last month – at least that's the case for eToro's clients.

The stock recently reached a record high despite its founder Elon Mask's attempt to talk it down by questioning its lofty valuation.

"Tesla's share price was up more than 22 per cent in June as it went on to breach $1,000, smashing its record high," said eTora analyst Josh Gilbert.

"The electric vehicle giant is the world's most valuable carmaker and can put its recent success down to improved sales in China.

"A recent email leaked from Tesla CEO Elon Musk saw the share price surge more than 8 per cent in June, as Musk showed optimism the company could break even in the second quarter."

Other popular stocks include some of the FANG stocks such as Facebook, Inc. Common Stock (NASDAQ: FB), which is ranked number five, and Amazon.com, Inc. (NASDAQ: AMZN), ranked seventh.

Taking big risks

However, there are a few interesting US stocks among the top 10 list. One that stands out for me is car rental company Hertz Global Holdings Inc (NYSE: HTZ), which is trading under bankruptcy protection.

The pandemic forced the overindebted group to its knees and the outlook isn't so good as international travel looks to be off the agenda for a while yet.

But investors have been happy to buy the stock despite the very real risk that they will lose everything. The flood of liquidity from central banks may be one reason why retail investors are clambering to climb the risk curve with greater gusto than professionals.

Other interesting stocks on the list include aircraft maker Boeing Co (NYSE: BA) and carrier American Airlines Group Inc (NASDAQ: AAL). Perhaps Aussie investors are looking for an alternative to Qantas Airways Limited (ASX: QAN).

Foolish takeaway

Investing in blue-chip US stocks is one way to gain diversification in your portfolio as long as you know what you are doing and can spend the time doing your homework.

But there are real concerns about overstretched valuations for some of the more popular US names. While sometimes it can pay to run with the crowd, those that are happy to follow the herd will need to be nimble.

If the tide turns, and that's a question of "when" not "if", stocks that have climbed the highest have the farthest to fall.

Those looking for stocks with solid fundamentals even during these trying times might want to read this free report from the experts at the Motley Fool.

Click on the free link below to find out more.

The post The most popular US shares that Aussies are buying includes a few surprising names appeared first on The Motley Fool Australia.