Day: November 9, 2021

Analysts name 2 ASX growth shares to buy

share price gaining

Luckily for growth investors, there’s no shortage of quality growth shares on the Australian share market for them to choose from.

Two that are highly rated right now are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first growth share to look at is Adore Beauty. It is Australia’s leading pure-play online beauty retailer.

After delivering strong growth in FY 2021, Adore Beauty has followed this up with further strong growth in the first quarter of FY 2022. Its recently released first quarter update revealed revenue of $63.8 million, up 25% on the prior corresponding period. This annualises to ~$255 million.

While this is a large number, it is still only a modest slice of the Australian beauty and personal care (BPC) market. That is currently estimated to be worth $11.2 billion and growing.

One leading broker that is a fan of Adore Beauty is UBS. It currently has a buy rating and $6.00 price target on its shares.

Goodman Group (ASX: GMG)

Another growth share for investors to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Thanks to its high quality portfolio, which has been curated expertly by management to give it exposure to industries benefiting from structural tailwinds such as the digital economy, Goodman has been growing its earnings at a solid rate over the last decade.

Pleasingly, this looks set to continue in FY 2022. Last week the company released its first quarter update and revealed that the consistent execution of its strategy has resulted in increased transactional activity and higher earnings certainty for the full year.

This led to Goodman upgrading its operating earnings per share growth guidance for FY 2022 to be in excess of 15%. This compares to prior guidance of 10% growth.

This went down well with Citi, which retained its buy rating and lifted its price target on Goodman’s shares to $27.50. The broker believes Goodman is well-placed for growth and has a three-year earnings per share CAGR estimate of ~16%.

The post Analysts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in Goodman right now?

Before you consider Goodman, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Goodman wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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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Beach Energy (ASX:BPT) share price dips amid news Seven may dump 30% holding

a woman under an umbrella stands looking out to sea on a beach in heavy rain with grey clouds gathering over the ocean.

The Beach Energy Ltd (ASX: BPT) share price failed to finish the day in the green on Tuesday. Disappointing shareholders, the oil and gas company slipped 1.9% lower during the session, finishing at $1.31 per share.

Negative sentiment was too strong among investors today after rumours that the company’s largest shareholder, Seven Group Holdings Ltd (ASX: SVW), might be looking for an exit.

Let’s dive deeper into the details.

Putting the Beach Energy share price under pressure

According to The Australian, there are whispers circulating that Seven Group could be looking to sell. At the time of writing, Seven Group holds roughly 30% of all Beach Energy shares on issue, making it its largest shareholder by far. In total, the stake has a value of $897 million based on the current Beach Energy share price.

Reportedly, the diversified investment group is chasing a buyer for its Beach holding following its takeover of construction materials manufacturer, Boral Limited (ASX: BLD). The rather messy process of climbing up to a 70% shareholding in Boral meant forking out $5.7 billion to get there.

While the merger and acquisition realm is hot at the moment, Seven Group might find it challenging to obtain a buyer of its Beach Energy stake. Sources say buyers of oil and gas assets are getting hard to come by as environmental, social, and governance (ESG) considerations become a higher priority.

Furthermore, if these rumours are true, it only adds to the volatility taking place in the Beach boardroom. Last week, the company experienced the departure of its managing director and CEO Matt Kay. In the meantime, chief financial officer Morné Engelbrecht has temporarily assumed the role.

While we can’t draw a direct correlation between the Beach Energy share price and today’s rumours, it is possible that it was a contributing factor towards the decline.

The Beach Energy share price is down more than 27% year-to-date.

The post Beach Energy (ASX:BPT) share price dips amid news Seven may dump 30% holding appeared first on The Motley Fool Australia.

Should you invest $1,000 in Beach Energy right now?

Before you consider Beach Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Mitchell Lawler 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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Cannindah Resources (ASX:CAE) share price just tanked 42%. What on earth happened

A sad BHP miner holds his head in his hands

Shares in Cannindah Resources Ltd (ASX: CAE) charged down today to finish 42.11% in the red.

In somewhat surprising fashion, the mineral explorer’s share price plummeted following a company update outlining progress at its Mt Cannindah site.

While the company reported positive assay results from its exploration program, the market responded otherwise, sending its shares southwards.

So what happened? Analysing market trade data and the company’s announcement, we uncover what went down for Cannindah’s share price today.

What did Cannindah announce?

Cannindah advised it had obtained assay results from a drillhole at its Mt Cannindah site in Queensland. The results now indicate a major expansion in known copper, gold, and silver mineralisation.

The company notes the mineralised zones are divided into three subsections.

These are labelled as a “surface oxide zone” of up to 14 metres from the surface. This is followed by a “supergene zone” from 14-33 metres in depth. Each zone contains copper, according to the company’s update.

There is also a supergene zone from 14 metres to 177 metres with a number of different grades and concentrations of resource.

All in all, the company intersected copper in hole 3 of its drilling program “aggregating to 493m @ 1.17% copper equivalent (0.89% Cu, 0.26g/t Au, 15.2g/t Ag)” from the surface.

For reference, ‘copper equivalent’ is the combined value of all economic metals in the intersected zone, with their value adjusted to an equivalent grade of copper, usually in US dollars.

It is widely accepted that anything over 100 metres and 1% copper equivalent or better is considered to be high grade.

Curiously, the release notes that Cannindah is drilling existing holes to examine the deep plunge of the copper mineralised zone at Mt Cannindah.

With this effort, it has “pushed on further down plunge to the west and discovered previously unknown or poorly delineated copper zones”.

So what happened with the Cannindah share price today?

The market responded poorly to the company’s announcement today, sending its shares well into negative territory.

Examining trade tickets from a trade summary provided by Bloomberg market data, we see a dump of almost 20 million Cannindah shares that occurred on Australian exchanges today.

A particularly large bloc trade of 225,000 shares in two lots was also executed through broker Credit-Suisse First Boston (CSFB).

In addition, there were 11 trades of more than 100,000 shares today for Cannindah’s float with more than 60% of these occurring within the first hour of trading.

Overall, there were a total of 2,482 trades completed today for Cannindah shares. That’s around 256% higher than yesterday and more than 570% above last Friday’s session.

With this scurry of trading activity where large volumes of the company’s shares exchanged hands, the picture starts to form as to what pulled the rug beneath Cannindah investors on Tuesday.

Aside from the project update and ensuing trading activity, there was no other remarkable market news out of Cannindah’s camp today.

At the close, the Cannindah share price finished at 33 cents apiece, down from 57 cents on Monday.

Cannindah share price snapshot

In the past 12 months, the Cannindah share price has soared more than 1,078%, rallying 965% this year to date.

These returns are light years away from the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of just 20% over the same time.

The post Cannindah Resources (ASX:CAE) share price just tanked 42%. What on earth happened appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cannindah Resources right now?

Before you consider Cannindah Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cannindah Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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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Why the Latrobe Magnesium (ASX:LMG) share price rocketed 23% on Tuesday

Factory worker wearing hardhat and uniform showing new metal products to the manager supervisor.

The Latrobe Magnesium Limited (ASX: LMG) share price skyrocketed today. In fact, the magnesium share has collected a new all-time high, with the share price reaching 15 cents apiece.

It appears both macro and micro events are aiding in the ascension of the relatively little-known resource company. Ongoing concerns of a magnesium shortage have placed company’s exposed to the alloy element on many watchlists. At the same time, Latrobe released some news of its own last week that might have investors excited.

Here’s a look at the current landscape for Latrobe Magnesium on the ASX.

What’s going on with ASX-listed Latrobe Magnesium?

Investors pushed the Latrobe Magnesium share price to new heights on Tuesday, despite no announcements released by the company. As such, we’re forced to take notice of what could be influencing this move more broadly.

Despite European automakers assuring investors that magnesium shortages are not of immediate concern, car part suppliers say otherwise. According to an article published by Reuters, suppliers of components to big auto are wary that if China does not increase its magnesium supply soon, issues will likely arise.

Furthermore, on its earnings call, Volkswagen’s head of purchasing, Murat Aksel stated:

We cannot forecast right now if the shortage on magnesium, which will happen definitely according to planning, will be bigger than the semiconductor shortage.

The concerns of an imminent shortage continue irrespective of China’s partial resumption of production. Reports indicate that the number of magnesium producers that have spun back up is not enough to significantly ease the shortage.

In turn, investors are speculating on ASX-listed Latrobe Magnesium benefitting from a potential lift in magnesium prices.

What else?

Closer to home, last week Latrobe announced the expansion of its demonstration plant. According to the release, the demonstration plant will increase from 3,000 tonnes per annum to 10,000 tonnes per annum (tpa) in response to world demand.

The company expects that the increased production will result in revenue of roughly $110 million and estimated earnings before interest, tax, depreciation, and amortisation (EBITDA) of $42 million.

Positively, Latrobe noted it already has a buyer for 8,000 tpa under its current offtake agreements. Meanwhile, another 2,000 tpa worth is being sought after by enquiries received.

These catalysts have helped Latrobe Magnesium return 575% on the ASX since the beginning of 2021.

The post Why the Latrobe Magnesium (ASX:LMG) share price rocketed 23% on Tuesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Latrobe Magnesium right now?

Before you consider Latrobe Magnesium, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Latrobe Magnesium wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Mitchell Lawler 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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