Cheap shares: This FTSE 100 stock has soared 24% in a month. What I’d do with it today

first_img “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! As a value investor, I’m constantly on the lookout for cheap shares. However, thanks to the coronavirus crisis, the UK stock market is littered with ‘fallen angels’. These are successful firms whose share prices have collapsed, sometimes knocking many billions from company valuations.Cheap shares: several banks fit the billEarlier today, I wrote about how Barclays shares jumped after it produced a much-improved set of quarterly results. Steeply reduced loan losses and higher revenues from its trading division saw the bank’s shares leap by almost a tenth from Wednesday’s close to Friday afternoon. Also, in what’s known as a ‘halo effect’, other UK bank shares rose on Friday in sympathy.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…I have repeatedly written in the past that I view the stock of Lloyds Banking Group and HSBC Holdings as being cheap shares. However, there’s one big UK bank that I have yet to comment on: NatWest Group (LSE: NWG).NatWest shares take a diveAs I write, just before Friday’s close, NatWest shares are trading at 122.65p, up 3.6p (3%) on a positive day for the FTSE 100. But NWG stock has crashed by almost half in the past 12 months, falling 47.5%. Even worse, at their 52-week high on 13 December last year, NatWest shares changed hands for 265p. Thus, the stock has plummeted 53.7% in just 10 months. That’s pretty unpleasant for the bank’s shareholders, to say the least.Back in the spring meltdown, NatWest’s stock dived to 101.75p on 3 April, pushing it onto my ‘cheap shares’ watchlist. Then the stock rose steadily, hitting 137.35p on 5 June, since when it has weakened persistently. At its recent low of 90.54p on 21 September, NatWest’s share price had dipped 11% below its April trough. Ouch.RBS is reborn as NatWestNatWest is the same age as me (52), as we were both born in 1968. NatWest arose from the merger of National Provincial Bank (established 1833) and Westminster Bank (est. 1836). In March 2000, Royal Bank of Scotland acquired NatWest in a hotly contested takeover. The collapse of RBS during the global financial crisis of 2007–09 led to the mega-bank receiving a taxpayer bailout of over £45bn, with its ‘cheap shares’ being almost wiped out.Ditching the now-disgraced RBS name, the group rebranded as NatWest in July. Today, the group operates under names including Royal Bank of Scotland, NatWest, Ulster Bank (in Northern Ireland) and various private banks including Coutts.Cheap shares or value trap?Right now, NatWest shares trade 35.5% above their September low. Yet the company has a market value of just £14.4bn, which is peanuts compared to the peak valuation of the group.NatWest’s Q3 results are due out in a week’s time at 7am next Friday. Like Barclays, I think the bank will report steeply reduced Q3 loan losses, plus improved revenues at its trading division. Alas, its shares cannot be valued on forecast earnings (uncertain) and cash dividends (cancelled). Then again, given that this stock trades at roughly a 60% discount to its net asset value (NAV) per share, I can see ‘cheapness’ in it.In summary, I’d buy and hold these cheap shares today for capital gains and a return to dividends. Also, buying them inside a tax-free ISA will protect future profits and cash payouts from the taxman! 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. 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. Cheap shares: This FTSE 100 stock has soared 24% in a month. What I’d do with it today Our 6 ‘Best Buys Now’ Sharescenter_img Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. 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. Image source: Getty Images Enter Your Email Address Cliff D’Arcy | Friday, 23rd October, 2020 | More on: NWG See all posts by Cliff D’Arcylast_img read more

Iowa senators call for USDA to help ethanol industry as fuel prices fall

first_imgWASHINGTON —- Iowa ethanol producers are struggling as fuel demand is dropping with so many Americans staying home during the pandemic. Both of Iowa’s U-S senators are calling on the U-S-D-A to provide aid for ethanol producers before more plants shut down.Senator Chuck Grassley says the two-point-two trillion dollar CARES Act that passed Congress nearly three weeks ago was designed to keep all sorts of businesses afloat.  “The effort at the time we passed the CARES Act was to bring equity to the ethanol industry like what the petroleum industry was hoping to get done,” Grassley says. “Nothing went through for the petroleum industry so we didn’t get anything for the ethanol industry.”An official with the Iowa Renewable Fuels Association says production has fallen by about half and at least seven ethanol plants and two biodiesel plants have closed. Grassley says there are several financial avenues he’s pursuing to keep biofuels plants open.  “I tried to get money for the ethanol industry through their feedstock, subsizing their feedstock,” Grassley says.Iowa is the nation’s number-one ethanol and biodiesel producer with about half of the state’s corn crop devoted to ethanol each year. Grassley says Congress has pumped an additional $25 billion into the Commodity Credit Corporation due to the impact COVID-19 is having on corn prices. “There’s also money available for infrastructure for filling stations to get in E-15 pumps,” Grassley says. “We’re working to get that program operational.”One report estimates ethanol demand could fall by eight-billion gallons due to coronavirus.Senator Joni Ernst tweeted on Monday night: “The decrease in fuel consumption during #COVID19 has left biofuels facilities little choice but to idle production or close completely. Keeping these plants open is vital for Iowa’s economy.”last_img read more