Day: 16 July 2021

The S&P/ASX 200 Index (ASX: XJO) is having a rather wild day of trading this Friday. The ASX 200 has been playing jump rope with its break-even line all day, and is currently up 0.016% to 7,337 points at the time of writing.

So, let’s take a look at some of the ASX 200 shares that are being traded the most heavily today.

3 of the top traded ASX 200 shares today

Whitehaven Coal Ltd (ASX: WHC)

The most heavily traded ASX 200 share on the market today is coal miner, Whitehaven with a substantial 16.05 million shares traded.

This might be the result of some love shown by brokers recently. 

As my Fool colleague, James covered earlier today, a number of brokers have remained bullish on Whitehaven.

One is Bell Potter, which lifted its Whitehaven share price target to $2.50 this morning. At the time of writing, the coal miner’s share price is up a very healthy 3.86% to $2.15 a share.

Telstra Corporation Ltd (ASX: TLS)

Telstra is another high-flying ASX 200 share trading big today, with 10.72 million shares changing hands.

After hitting a new 52-week high of $3.79 at the start of this month, Telstra has more or less bounced around that level ever since.

Today, the Telstra share price is down 0.79% to $3.75.

There hasn’t been any major news or announcements today. However, my Fool colleague, Tony noted this morning that the telco is currently a top holding of a major fund manager.

Telstra’s intraday high today is $3.79 and the intraday low is $3.75. 

Evolution Mining Ltd (ASX: EVN)

So far this Friday, a hefty 14.34 million shares in this ASX 200 gold miner have been traded. That’s likely a direct result of Evolution’s steep share price losses so far today.

At the time of writing, the Evolution share price is down a nasty 5.05% to $4.70 a share.

This fall comes after the company issued an update this morning. The update told investors that the miner’s FY21 production numbers came in at 681,000 ounces of gold, which was 2% below the bottom range of its April guidance.

Evidently, investors aren’t impressed!

 

The post Here are 3 heavily traded ASX 200 shares today appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Rio Tinto update disappoints, Evolution sinks

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out two ASX dividend shares brokers think investors should buy:

Monash IVF Group Ltd (ASX: MVF)

According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this fertility treatment company’s shares with an outperform rating and $1.00 price target. The broker notes that trading conditions are very favourable in the IVF industry and its outlook is positive.

In addition to this, Macquarie highlights that the company’s balance sheet is strong thanks to last year’s capital raising. Macquarie is forecasting a 4.1 per share fully franked dividend in both FY 2021 and FY 2022. Based on the current Monash IVF share price of 83.7 cents, this will mean attractive yields of 4.9% for income investors.

Sandfire Resources Ltd (ASX: SFR)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $8.55 price target on this copper producer’s shares. The broker was pleased with Sandfire Resources’ strong finish to the year, with copper and gold production at DeGrussa surprising to the upside. Sandfire Resources produced 70,845 metric tons of copper during the 12 months, above its guidance of 67,000 to 70,000 tons.

Credit Suisse believes the company is well-placed to grow its earnings and dividend. In respect to the latter, it is forecasting fully franked dividends of 39.2 cents per share in FY 2021 and then 40.1 cents per share in FY 2022. With the Sandfire Resources share price currently trading at $6.80, this will mean yields of 5.75% and 5.9%, respectively, over the next two financial years.

The post Top brokers name 2 ASX dividend shares to buy today appeared first on The Motley Fool Australia.

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• ASX copper shares up and down as copper price bounces back

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price continues to shine this year, posting a 39% return over the previous 3 months.

At the time of writing, Mineral Resources shares are exchanging hands at $59.99, a 1.66% dip into the red on the day.

Let’s zoom in on the tailwinds driving the Australian mining company’s share price lately.

New drilling advancements

On 6 July 2021, the company announced its wholly-owned subsidiary Energy Resources Limited had secured a drilling rig for the Lockyer Deep 1 well. The conventional gas exploration well is located onshore in the Perth Basin, along the coast of Western Australia.

The exploration permit for the Lockyer Deep 1 is a joint venture between Energy Resources and Norwest Energy NL (ASX: NWE). The interests are divided into an 80%-20% split between Energy Resources and Norwest, respectively.

Energy Resources can now start gas exploration drilling at the site of the well towards the end of July.

Speaking on the potential benefits of the well’s success to the company, Mineral Resources managing director Chris Ellison said:

The drilling of Lockyer Deep 1 will be a significant milestone for MRL because it will signify the start of an extensive conventional gas exploration program in our onshore Perth Basin and Northern Carnarvon Basin acreage in line with our strategy to secure our own energy at the lowest cost and lowest emissions possible.

Investors seem to have liked this outcome, as Mineral’s shares have climbed by 5% since the announcement.

Macquarie presentation day

Mineral Resources’ presentation at the Macquarie Conference on 5 May seems to have been a key inflection point its share price.

In the presentation, the company detailed it is the world’s largest crushing contractor. Additionally, it stated it is Australia’s 5th largest iron ore producer and the world’s 5th largest lithium miner.

Given the strengths in iron-ore markets observed this year, it stands to reason that Mineral Resources will receive a premium for its iron-ore sales.

Analysts at Macquarie Group Ltd (ASX: MQG) were quick to upgrade price targets following the conference. They have assigned an outperform rating with a price target of $73.

Investors have relished the bullish commentary, rewarding Mineral’s shares with a 24% gain since the timing of the conference.

Mineral Resources share price snapshot

Mineral Resources continues to be a performing name on the ASX this year, gaining nearly 40% in 3 months.

The Mineral Resources share price has posted a return of 153% over the last 12 months. By contrast, the S&P / ASX 200 Index (ASX: XJO) has posted a return of 22% over the same period.

The company has a market capitalisation of $11.5 billion at the time of writing.

The post Why the Mineral Resources (ASX:MIN) share price is up 39% in 3 months appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The leading broker Citi believes that at the current Appen Ltd (ASX: APX) share price, it could be a potential takeover target.

Appen might be a takeover target

According to reporting by the Australian Financial Review, Citi thinks that the technology business could be a potential acquisition idea at the current share price of around $13.

The broker noted that an important issue to try to understand was whether Appen’s decline was due to a structural issue (such as self-learning systems, in-sourcing etc), competition or another problem.

What’s been going on?

Appen said a couple of months that there were a few reasons why 2020 didn’t show as good growth as normal.

It pointed out that the Australian dollar strengthened in the second half of FY20, dampening revenue translated from US dollars into Australian dollars. The business also pointed out that COVID-19 has impacted the face to face selling motion (but this appears to be “in the past now” given the uptick in wins it saw in the fourth quarter of 2020).

Appen also said COVID-19 has interrupted many businesses and that in turn reduced their digital advertising spending for a period. This in turn impacted major customers’ sources of revenue and although digital spending has bounced back “nicely”, it’s driving them to invest in new AI products that are less reliant on advertising.

Customers are also responding to data privacy and anti-trust concerns, as well as heightened competition amongst each other. Those issues are also driving new AI product developments, ones that rely less on personal data and make them more independent.

Citi’s thoughts on the Appen share price

The broker has lowered its growth expectations for the business for the next five years.

However, due to the company’s low price, Citi now believes that Appen looks attractive. The AFR quoted Citi analyst Siraj Ahmed:

Our discussions suggest demand for human annotated training data is not structurally impaired and that ongoing growth is expected, with evolving regulations and data privacy laws as key tailwinds medium-term.

However, our discussions also point to slower growth for data annotation as the major tech companies develop better systems.

With the recent increase in M&A and given Appen’s position as a leader in the AI training data space as well as client exposure, we would not be surprised if Appen was a potential acquisition target for an IT Services or BPO firm.

We note Appen’s main competitor Lionbridge was acquired by Telus International for 16x – 20x EV/EBITDA versus Appen currently trading at 13x.

The post Top broker says Appen (ASX:APX) might be a takeover target at this share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The SelfWealth Ltd (ASX: SWF) share price entered into a trading halt on Thursday, pending the completion of a $10 million capital raising.

While shares in the trading platform remain halted, the company provided more details for the uses of funds and an earnings guidance for FY21.

Capital raising to drive growth strategy

SelfWealth plans to raise $10 million through a capital raising at 39 cents per new share, or a 9.3% discount to its last close of 43 cents.

In addition, the company will offer eligible shareholders the opportunity to participate in a capped non-underwritten share purchase plan, raising up to $2 million.

SelfWealth also intends to utilise existing cash reserves of $3 million to pursue its planned growth initiatives.

With $15 million in total funds, the main areas of spend include $7.3 million in technology investment, $3.5 million in marketing, $2.2 million in data strategy and infrastructure, and $1.4 million in additional headcount.

SelfWealth previously said that it was negotiating with several cryptocurrency exchanges to roll out a new cryptocurrency product by Q2 FY22.

However, today’s capital raising presentation said that the company will not be allocating funds towards a new cryptocurrency trading service until all Board and regulatory approvals are obtained.

As a result, the new cryptocurrency product is not expected to launch earlier than Q3 FY22.

Earnings guidance

SelfWealth forecasts FY21 revenue to be in the range of $18.2 million to $18.7 million, compared to $7.8 million in FY20.

Furthermore, the company expects an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of between $900,000 and $400,000, compared to a loss of $2.9 million in FY20.

SelfWealth share price tumbles in 2021

The SelfWealth share price has struggled to gather momentum this year after a stellar 232% surge in 2020.

After releasing fourth quarter results on Monday, the SelfWealth shares continued to struggle, diving 11.96% lower on the day to a 1-year low of 40.5 cents.

The post SelfWealth (ASX:SWF) share price on watch next week after $10 million capital raising appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The 5G Networks Ltd (ASX: 5GN) share price has rocketed 10.06% higher today after news of a merger with Webcentral Group Ltd (ASX: WCG). Shares in both of these Aussie communications groups have ended the week after entering into a Merger Implementation Agreement.

Webcentral merger sees 5G Networks share price soar

Investors received the news of a merger between these Aussie small-caps well. According to today’s presentation, the merger will aim to deliver value through a number of avenues.

5G Networks focuses on cloud-based solutions, managed services and network services. Webcentral is one of Australia’s top domain providers and the “largest Australian-owned operator of fibre networks, cloud and data centres”, according to the company’s presentation.

The companies are hoping a larger entity will create enhanced prospects for growth. Webcentral and 5G Networks also flagged a push towards inclusion in the S&P/ASX 300 Index (ASX: XKO) as another highlight.

Other key benefits of the merger include a simplified sales strategy for a combined 330,000+ customers, alongside cost synergies, combined management expertise and a consolidated debt facility.

Investors were clearly bullish on the merger news as the 5G Networks share price surged higher. Shares in the telco are up 10.06% at the time of writing with Webcentral shares up more than 5%.

On a pro-forma, consolidated basis, the merged entity would have revenue of $110-120 million with an earnings before interest, tax, depreciation and amortisation (EBITDA) margin in excess of 20%. On top of the 330,000+ customers, the companies boast 2,500 corporate and government clients, along with 360 staff.

The big message today was one of growth. This morning’s presentation indicates the consolidated group will be focused on acquisitions and organic growth into FY2022 and beyond.

That was music to investors’ ears who propelled the 5G Network share price higher on Friday morning. Today’s gains mean the company’s shares are now up 13.5% in July.

The post 5G Networks (ASX: 5GN) share price jumps 10% on Webcentral merger appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended 5G NETWORK FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If small caps are too high on the risk scale for your investment tastes, then you might be better off looking at the mid cap space.

These companies are lower down the risk scale but still have the potential to generate outsized returns for investors in the future.

With that in mind, I have picked out two mid cap ASX shares that are highly rated right now. Here’s what you need to know about them:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to look at is Bravura Solutions. It is a leading provider of software solutions for the wealth management and funds administration industries.

Bravura owns a portfolio of solutions that are both high quality and have significant market opportunities. Chief among them is the key Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices.

But it doesn’t stop there. Bravura has been on an acquisition spree over the last few years, strengthening its offering. As a result, it also has the FinoCamp, Midwinter, and Delta Financial Systems solutions. FinoCamp builds unique and highly flexible software that supports the UK wealth market, Midwinter is a financial planning software provider, and Delta Financial Systems provides technology to power complex pensions administration in the UK market.

Times have been hard over the last couple of years because of Brexit and COVID-19. However, it appears as though the company has finally moved on and is ready to resume its growth again.

It is for this reason that Goldman Sachs is a fan of the company. It currently has a buy rating and $3.90 price target on its shares. Goldman believes Bravura has a massive growth opportunity in the UK and ANZ markets.

Nearmap Ltd (ASX: NEA)

Another mid cap ASX share to look at is Nearmap. It is an aerial imagery technology and location data company.

Thanks to its technology, every day the company helps thousands of users conduct virtual site visits for deep, data-driven insights. It notes that this enables informed decisions, streamlined operations, and significant cost savings.

Demand for its offering has been growing strongly in the ANZ and North American markets over the last few years and has continued in FY 2021. Earlier this week, Nearmap released its full year update and revealed a record performance in the United States. This led to Nearmap outperforming its guidance in FY 2021.

It expects to report a 26% increase in annual contract value (ACV) to $133.8 million on a constant currency basis. This compares to its previously upgraded ACV guidance of $128 million to $132 million.

Looking ahead, management appears confident in its growth trajectory. It continues to target annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley remains bullish. This week the broker retained its overweight rating and $3.20 price target on its shares.

The post 2 highly rated mid cap ASX shares tipped as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bravura Solutions Ltd and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd (ASX: NAB) and its share price are being scrutinised today. This comes as the potential Forum Finance fraud situation drags another ASX bank share into the mix.

At the time of writing, the NAB share price is off by 0.44% to $25.90. However, it is not alone in the red sea on Friday. All big four banks are showing weakness to finish the week.

Forum Finance creating muddy waters

The potential fraud saga involving Forum Finance continues to grow murkier. Only a couple of weeks ago, Westpac Banking Corp (ASX: WBC) revealed it had uncovered a potential case of fraud.

The matter relates to a portfolio of equipment leases with Westpac customers arranged by Forum Finance, founded by Bill Papas.

On Friday, reports from The Australian are suggesting NAB may also hold exposure to the fallout.

While the bank acted as Forum Finance’s transactional banker, it is believed Australia’s third-largest bank also holds a substantial chunk of the mortgages against Papas’ property portfolio.

Papas’ assets might be at risk of being reassumed to cover debts. This follows Westpac appointing McGrathNicol as liquidators. At this stage, the exact whereabouts of Papas is unknown.

Other regulatory pressures

The Forum Finance dilemma is not the only matter potentially weighing on the NAB share price. Both NAB and the Commonwealth Bank of Australia (ASX: CBA) could also be suffering some negative sentiment due to allegations involving BSP Financial Group (ASX: BFL).

The Australian Financial Review reported senior managers of the group have been ordered to be removed following breaches of anti-money laundering laws in Papua New Guinea. Consequently, CBA and NAB are caught in between due to providing ‘correspondent’ banking services to BSP.

Based on Australian law, both banks are mandated to carry out regular due diligence assessments on correspondent banks.

NAB share price recap

Unfortunately for shareholders, the NAB share price has been the worst-performing so far in 2021 out of the big four banks. On a year-to-date basis, NAB has returned 12.9%. Meanwhile, CBA is up 16.8%; ANZ is up 18.7%; and Westpac is up 26.7%.

Following the dip in the NAB share price, the bank’s market capitalisation is now $85.84 billion.

The post NAB (ASX:NAB) share price slides as potential Forum fraud deepens appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price is pushing higher in afternoon trade.

At the time of writing, the conglomerate’s shares are up 0.5% to $58.91.

This leaves the Wesfarmers share price trading within sight of its record high of $59.63.

Why is the Wesfarmers share price pushing higher?

The Wesfarmers share price was given a boost today when the company’s Mt Holland lithium project received ministerial approval.

According to the release, the company’s Covalent Lithium business has received the Ministerial Statement under the Environmental Protection Act 1986 (WA). This outlines the conditions that apply to the construction and operation of the lithium hydroxide refinery as part of the Mt Holland lithium project.

Covalent Lithium is a joint venture company jointly owned by Wesfarmers and lithium giant Sociedad Quimica y Minera de Chile (SQM).

What now?

Following the receipt of this approval, the Mt Holland lithium project has now received all critical approvals. As a result, construction and project development have commenced.

Positively, management advised that the expected project timing and Wesfarmers’ share of capital expenditure for the project remain in line with expectations.

This means that the first production of lithium hydroxide is expected in the second half of the 2024 calendar year and Wesfarmers’ share of capital expenditure is approximately $950 million. The latter will be funded using existing cash and debt facilities.

Why lithium?

When announcing its final investment decision earlier this year, Wesfarmers’ Managing Director, Rob Scott, stated his belief that the project was an attractive investment for shareholders.

He said: “The development of the Mt Holland lithium project presents an attractive investment for Wesfarmers shareholders. The project capitalises on our Chemicals, Energy and Fertilisers divisions’ chemical processing expertise and Western Australia’s unique position to support growing global demand for electric vehicle battery materials which will make a crucial contribution to global efforts to reduce greenhouse gas emissions.”

“We have been pleased with progress of discussions with key battery manufacturers, which reflect a positive outlook for battery quality sustainably sourced lithium hydroxide,” Mr Scott added.

The post Wesfarmers (ASX:WES) share price higher on lithium update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Jupiter Energy Ltd (ASX: JPR) share price has soared into the green this morning, after the company released its quarterly activities report.

At the time of writing, Jupiter Energy shares are changing hands at 6.5 cents a piece, up 75.68% on the day.

Let’s take a closer look at what the company posted earlier this morning.

What is Jupiter Energy?

Jupiter Energy is an oil and gas exploration company that has appraisal, development and production interests for oil and gas in Kazakhstan.

According to its website, it owns “100% of an exploration permit in the Mangistau Basin, West Kazakhstan”.

At the time of writing, it has a market capitalisation of $5.7 million.

Jupiter’s quarterly results

In its report, the company exhibited unaudited sales revenue of approximately $1.196 million, up 6% from the previous quarter.

This revenue was based on the sale of approximately 32,000 barrels of oil, at an average price of US$29 per barrel.

In the previous quarter, it had realised sales of 34,000 barrels of oil, albeit at a lower price of US$25 per barrel.

Cash receipts for the quarter came in flat to the previous quarter at $1.4 million.

Jupiter also completed the transition of its Akkar North interests into commercial production during the quarter.

Additonally, the company laid out further details of its “strategic review” that has been underway since 2020. Under the review, the company is discussing the implementation of a “100% gas utilisation plan”. If successful, the plan would see Jupiter start selling oil for export.

The board has ensured it will “keep shareholders informed of any material progress in this area” over time.

Investors have relished this morning’s release as Jupiter shares continue to remain in the green in afternoon trading.

Jupiter Energy share price snapshot

The Jupiter Energy share price has posted a 35% return this year to date. It has also gained 320% over the past 12 months.

Jupiter shares have outpaced the S&P / ASX 200 Index (ASX: XJO)’s return of 22% over the past year.

The company’s shares are trading off their 52-week high of 17 cents, but are aloft the 52-week low of 1.8 cents.

The post Jupiter Energy (ASX:JPR) share price surges 75% on activities report appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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