I think this is one of the best FTSE shares to buy now

first_img Our 6 ‘Best Buys Now’ Shares Kevin Godbold | Tuesday, 16th March, 2021 | More on: STVG I think this is one of the best FTSE shares to buy now FTSE SmallCap company STV (LSE: STVG) operates as a digital media and broadcasting business. The firm has a “refreshed” three-year strategic plan to accelerate the diversification of its trading. And the target is to achieve “at least” 50% of operating profit from business lines other than traditional broadcasting by the end of 2023.Why I reckon STV is a FTSE share to buy nowAnd despite the coronavirus crisis, today’s full-year results report demonstrates progress towards that goal. However, the five-year financial and trading record shows advertising earnings have been patchy. There’s no escaping the large cyclical element in the business. On top of that, the sector is competitive. And the reason STV needs to diversify is to catch up with an audience that is migrating to digital channels leaving the traditional broadcasting operations behind. I see such trends as negatives regarding the case for investing in the shares now.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…Nevertheless, today’s figures encourage me. Revenue dipped by 14% compared to the prior year. And adjusted earnings per share plunged 18%. But the net-debt number dropped by 53%. And the directors restored shareholder dividends, saying the move is “a measure of the Board’s confidence in STV’s future growth.”In 2020, STV managed to generate a third of its operating profit from new revenue streams, so it’s well on the way to the 50% target. Digital revenue rose by 5%. And online viewing rose 68% with revenue via video-on-demand (VOD) lifting 12% during the year. However, total advertising revenue dropped by 10%.The company also announced new content deals with Sony and eOne. And the studio division won 19 new commissions in the year, despite the pandemic. Meanwhile, in one measure of progress, audiences grew by 14% for STV broadcasting operations and by 83% on the STV Player.Robust financesThe strong operational and financial performance enabled the company to pay back in full its furlough grant of £1.6m. Happily, STV is one of many publicly listed companies that have been sending coronavirus-related monies back to the nation’s coffers.Adjusted operating profit came in “well ahead of initial expectations” at just over £18m. But that was still a year-on-year decline of 19%, although there was a “significant” improvement in the second half of the year.Nevertheless, STV needed to strengthen its balance sheet in the summer of 2020 with a placing raising a gross sum of around £16m. And in early March, the company agreed to a new £60m revolving credit facility.Looking ahead, the directors reckon the outlook for the business is positive and improving. And I see the stock as one with further to recover following the Covid crisis with the potential for further growth after that if the business can keep on winning digital market share. Although that outcome is not certain.And I’m not expecting progress to shoot the lights out in the years ahead. STV has been struggling for several years. And the share price has essentially travelled nowhere in the past decade.But I’m prepared to embrace the risks in the hope the firm will keep hold of its newly discovered growth mojo. With the share price near 335p, the forward-looking earnings multiple for 2021 is just over nine and the anticipated dividend yield is around 3.7%.Given that forward growth will likely be quite slow, I see the valuation as fair rather than cheap. 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. Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! The high-calibre small-cap stock flying under the City’s radar Simply click below to discover how you can take advantage of this.center_img Kevin Godbold has no position in any share 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. Enter Your Email Address Image source: Getty Images See all posts by Kevin Godbold Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! 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.last_img read more

How I’d double my money investing in stocks and shares

first_img See all posts by Harshil Patel 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. Our 6 ‘Best Buys Now’ Shares How I’d double my money investing in stocks and shares “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Simply click below to discover how you can take advantage of this. Harshil Patel owns shares in Scottish Mortgage Investment Trust, Fundsmith Equity, Amazon and Tesla. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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 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. Harshil Patel | Monday, 3rd May, 2021 | More on: SMT I aim to double my money every five years by investing in stocks and shares. Putting it another way, I aim to achieve an annual total gain of 15%. There’s a neat maths shortcut to approximate how long it will take to double my money called the rule of 72. Essentially, divide 72 by your annual gain to calculate the doubling time.The long-term average return from investing in stocks and shares is said to be around 8% to10%. Of course, past performance doesn’t guarantee future returns. But the period of average returns encompasses a range of scenarios including several wars, international catastrophes, and stock market bubbles.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…How I’d start investing in stocks and sharesInvesting in stocks and shares should be a long-term activity, in my opinion. There can be a greater element of risk involved during shorter timeframes. I try to invest for several years at the very least.This can mitigate fluctuations caused by some of the shorter-term economic, political, and psychological factors that affect stocks and shares.If I was starting again, I would begin my investing journey with carefully selected funds and investment trusts. I would look for funds that are global, diversified, and with competent managers.Top fundThere are a few options that would currently be at the top of my list. Firstly, I’d invest in Fundsmith, run by veteran portfolio manager Terry Smith. The past 10-year gains have been exemplary, in my opinion. At an average annual return of 18%, the fund performed very well.  Fundsmith focuses on quality and profitability. The fund only invests in high-quality businesses that can sustain a high return on capital employed. The companies must also have business advantages that are difficult to replicate. Once found, Fundsmith aims to hold these investments for a long period.Bear in mind, to meet stringent selection criteria, the portfolio is relatively concentrated. It holds between 20 and 30 stocks. This is fewer than many other funds and it could affect fund performance if one of the holdings were to significantly underperform. That said, given the high quality of the holdings, it’s not a major concern for me.Top investment trustIn the long term, I’m a great believer that technology will drive human progress forward. Computing power should rapidly increase over time and this could have large implications for multiple industries. Which industries will the next generation of winners come from?Tom Slater, joint manager of Scottish Mortgage Investment Trust (LSE:SMT) thinks healthcare, transport, transactions, and food delivery are the sectors to watch.Investing in stocks and shares from these industries could be rewarding over the long term. This actively managed investment trust has performed incredibly well, by any standard. Its average annual return over the past five years is 38%, and over the past 10 years is 24%.Holdings, including Tesla and Amazon, helped propel the trust to grow by 90% over the past year.A word of warning, however. The holdings are typically high-growth companies. As such, these stocks can be more volatile. As disruptors, they can experience setbacks in addition to breakthroughs. A change in market sentiment towards high-growth stocks can also have an amplified effect on a technology fund like Scottish Mortgage.That said, as a long-term investor willing to hold investments for over five years, I’m happy for it to form a core part of my portfolio. 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 copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more