Day: December 30, 2021

Why is the Bega Cheese (ASX:BGA) share price jumping today?

The Bega Cheese Ltd (ASX: BGA) share price is edging higher this afternoon. This comes after the Australian manufacturer saw a massive buy-up of its shares today from Fortescue CEO Andrew Forrest.

At the time of writing, Bega Cheese shares are up 3% at $5.49 apiece.

Cue the cheese jokes…

Fortescue CEO carves his slice of Bega

Under Forrest’s investment company, Tattarang Agrifood Investments, more than 20 million shares in the company have been secured, amounting to more than $108 million.

The massive order was placed on 10 November and was finalised yesterday.

This amounts to a 6.61% stake in the company — making Forrest the fourth largest shareholder behind Ethical Partners Funds Management, Fil Investment Management Australia, and Vinva Investment Management.

This comes following a trading update given by Bega Cheese on 23 December, reporting strong local and international demand, and normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY22 to be between $195 million and $215 million (FY21 was $145 million).

Despite alternative milks becoming ever more popular, and with the company reporting costs and supply chain disruptions due to the COVID-19 pandemic, Bega Cheese remained positive in its report, with product goals “on target”.

However, the Bega Cheese share price dropped by around 12% on the release of the news.

Bega Cheese share price snapshot

Bega Cheese is one of the better-performing stocks today, climbing as high as $5.56 earlier in the day.

The Bega Cheese share price has seen a fairly stable year, seeing an increase of almost 7%.

The manufacturer has a market capitalisation of more than $1.5 billion. It has over 300 million shares issued and a price-to-earnings ratio (P/E) of 20.

The post Why is the Bega Cheese (ASX:BGA) share price jumping today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bega Cheese right now?

Before you consider Bega Cheese, 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 Bega Cheese 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 Alice de Bruin 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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3 exciting small cap ASX shares rated as buys

A group of executives sit in front of computer screens in a darkened room while a colleague stands giving a presentation with a share price graphic lit up on the wall

If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

All three have been given buy ratings and tipped for big things in the future. Here’s what you need to know about them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share that has been given a buy rating is Alcidion. It is a healthcare technology company behind a range of solutions including Patientrack. It helps clinicians know a patient’s status in real-time. Patientrack uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Demand has been growing for its solutions from a range of international healthcare institutions, which has been underpinning strong revenue growth.

Bell Potter currently has a buy rating and 45 cents price target on Alcidion’s shares.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is the fast-growing document productivity software company behind the increasingly popular Nitro Productivity Suite. This suite provides integrated PDF productivity and electronic signature tools to businesses of all sizes. In addition, the company recently entered into an agreement to acquire Connective NV for €70 million (~A$110 million). Connective is Belgium’s leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries. This puts Nitro in a strong position for growth in a total addressable market estimated to be worth $28 billion per year.

Bell Potter is also very positive on Nitro Software. It currently has a buy rating and $4.50 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap that is rated as a buy is Volpara. It is a provider of breast imaging analytics and analysis products that improve clinical decision-making and support the early detection of breast cancer. Demand for its offering has been growing strongly in recent years and has supported stellar revenue growth. This continued during the first half of FY 2022, with Volpara reporting subscription revenue growth of 35% to NZ$11.8 million. This is still only a fraction of its US$750 million addressable market in just breast cancer screening. Volpara is also now expanding into the US lung cancer screening market with its RevealDx and Riverain integrations.

Morgans currently has an add rating and $1.87 price target on the company’s shares.

The post 3 exciting small cap ASX shares rated as buys appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*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. owns and has recommended Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd and Nitro Software 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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Brokers name 3 ASX shares to sell

Keyboard button with the word sell on it.

Given that many brokers are taking a well-earned break over the holiday period, broker notes aren’t being published as regularly as normal.

In light of this, listed below are a few recent broker recommendations that are still very relevant today. Here are three ASX shares rated as sells:

DEXUS Property Group (ASX: DXS)

According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company’s shares. While Citi acknowledges that a number of the DEXUS’ peers have recently announced strong updates, it isn’t in a rush to change its rating. The broker has previously flagged potential for further weakness in office rental markets, which it feels is likely to feed into office asset pricing. The Dexus share price is trading at $11.13 on Thursday.

Insurance Australia Group Ltd (ASX: IAG)

A note out of Morgan Stanley reveals that its analysts have downgraded this insurance company’s shares to an underweight rating and cut their price target on them to $3.75. Morgan Stanley has concerns over IAG’s margin outlook and ability to hold onto its market share. In light of this, it feels investors should stay away from the company’s shares. The IAG share price is fetching $4.36 at the time of writing.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and $4.10 price target on this airline operator’s shares. This followed the release of Qantas’ trading update. Credit Suisse suspects that Qantas could now report a greater than expected loss in FY 2022 of ~$1.6 billion. This is due to the emergence of the omicron variant and the prospect of the international travel recovery being delayed. The Qantas share price is trading at $5.02 on Thursday.

The post Brokers name 3 ASX shares to sell appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

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 and has recommended Insurance Australia 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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Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December?

two older men wearing colourful tropical patterned shirts and hats like tourists puzzle over a map one is holding while he other holds up a hand as if indicating he doesn't know where they are going.

The Webjet Limited (ASX: WEB) share price has been struggling this month. Meanwhile, that of Helloworld Travel Ltd (ASX: HLO) has surged higher.

Having ended November trading for $2.23, Helloworld’s shares are now swapping hands for $2.52. That represents a 13% gain.

However, the Webjet share price has slumped over the same period, falling almost 4% to trade at $5.28.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 3.6% over the course of December.

So, what’s been weighing on the Webjet share price and buoying Helloworld’s stock? Let’s take a look.

Why is the Helloworld share price gaining as Webjet’s falls?

The Webjet share price has been struggling over December as the company’s short interest remains high.

As of The Motley Fool Australia’s most recent weekly short-selling breakdown, 8.8% of its shares were in the hands of short-sellers. Though, that figure has been falling over recent weeks despite no news being released by the company.

Perhaps, the market’s confidence the Omicron COVID-19 variant won’t result in another wave of global lockdowns might be increasing.

Particularly, since Prime Minister Scott Morrison declared the country is “not going back to lockdowns” last week.

Still, Webjet’s stock hasn’t bounced back from its unexplained mid-December slump.

Meanwhile, the Helloworld share price surged 16% on 15 December when the company announced it’s undergoing a $175 million asset sale.

It is selling its corporate and entertainment travel businesses in Australia and New Zealand to Corporate Travel Management Ltd (ASX: CTD).

Following the divestment, Helloworld will be focusing on its leisure and corporate travel networks, air consolidation business, wholesale and inbound businesses, and its logistics business.

The resulting funds will allow it to repay debt and capitalise on pent-up consumer demand as borders reopen following COVID-19.

Though, despite its strong month’s performance, the Helloworld share price has only broken even year to date. Meanwhile, the Webjet share price is almost 4% higher than it was at the start of the year.

The post Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December? appeared first on The Motley Fool Australia.

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

Before you consider Webjet, 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 Webjet 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 Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Webjet 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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