Day: February 7, 2022

2 excellent ASX growth shares analysts rate very highly

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

A man with a yellow background makes an annoncement, indicating share price changes on the ASXA man with a yellow background makes an annoncement, indicating share price changes on the ASX

If you have room for some new portfolio additions, then it could be worth considering the two ASX growth shares listed below.

Analysts are very positive on these shares and have recently rated them as buys. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first ASX growth share for investors to consider is this leading lithium miner.

Allkem was formed after two leading lithium miners, Galaxy Resources and Orocobre, merged last year to create a top five global lithium miner. It owns a number of operations across the world including Olaroz, James Bay, Mt Cattlin, and the Sal de Vida brine project.

Combined, the company appears well-placed to benefit from sky high lithium prices being underpinned by tight supply, the decarbonisation trend, and the rise of electric vehicles.

Morgans is very positive on lithium prices and has named Allkem its top pick in the industry. It currently has an add rating and $13.25 price target on its shares.

Megaport Ltd (ASX: MP1)

Another ASX growth share that could be in the buy zone is Megaport. It is a leading cloud connectivity and networking solutions provider.

Megaport has been growing at a solid rate in recent years thanks to its first mover advantage in a market benefiting from two long-term structural tailwinds. These are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).

Goldman Sachs is very positive on Megaport’s outlook and believes it has an enormous growth runway. It notes that the company has a A$129bn opportunity in fixed enterprise networking.

It is for this reason that the broker recently initiated coverage on the company’s shares with a buy rating and $20.00 price target.

The post 2 excellent ASX growth shares analysts rate very highly 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 over ten 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 January 12th 2022

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Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022?

a man sits on a rocket propelled office chair and flies high above a citya man sits on a rocket propelled office chair and flies high above a citya man sits on a rocket propelled office chair and flies high above a city

The Global Lithium Resources Ltd (ASX: GL1) share price is exploding this year.

The company’s shares closed at $1.50 today, a 0.67% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.13% today.

Let’s take a look at what has caused the company’s share price to surge.

Why is Global Lithium having such a good month?

The Global Lithium share price has rocketed 57.89% since the market close on 31 December 2021. As my Motley Fool colleague Bernd reported last week, ASX lithium shares have benefited from skyrocketing prices and supply shortages of battery metal.

Global Lithium Resources is a lithium miner exploring the Marble Bar Lithium Project (MBLP) in the Pilbara region of Western Australia. The company also acquired an 80% stake in the Manna Lithium Project in Kalgoorlie at the end of the December quarter.

Today, the company revealed drilling has started at its flagship WA lithium project. This is the largest drilling program conducted by the company to date and will involve drilling 380 holes. While the Global Lithium share price did not move substantially today, it may be that investors have already priced in the company’s drilling program at the mine.

What did management say?

Commenting on the announcement, Global Lithium chair Warrick Hazeldine said:

The lithium sector in the Pilbara has the potential to become this generation’s mining success story in
Western Australia and deliver parallels to the growth achieved in recent decades by the region’s iron ore
industry.

Global Lithium has a significant opportunity to play a major role in this expansion at MBLP. Not only are we advancing an exciting project in a well-established mining region, but we have also secured a cornerstone strategic investor, Yibin Tianyi, to help drive development of this asset.

January 2022 updates

In late January, the company released its quarterly activities report. However, shares fell 11% on that day. The company reported a cash balance of $11.1 million and no debt. Exploration and evaluation expenses totalled nearly $1.3 million.

Global Lithium also stated it plans to undertake significant exploring activities at its Manna Project in 2022.

On 13 January, the company’s shares elevated 15% on news of new appointments on its board. Ronald Mitchell was appointed executive director of markets and growth, while Greg Lilleyman took on the role of non-executive director.

Lilleyman has 30 years of international experience in the mining sector, while Mitchell has 25 years of industry experience including 10 years in the lithium and battery industry.

Share price snap shot

The Global Lithium share price has exploded by around 650% in the past 12 months. In the past month, it has soared 39%, while it has fallen 3% in the past week.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 4% over the past year.

The company has a market capitalisation of roughly $204 million based on its current share price.

The post How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022? 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 over ten 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 January 12th 2022

More reading

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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These ASX 200 shares can beat inflation: expert

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.With a new year, the ASX now seems to be in the grip of some new fears. As most investors would be aware, 2022 hasn’t been the easiest start to the year. As it stands today, the ASX 200 remains down more than 6.3% in 2022 so far. Why such a disappointing beginning to the year? Inflation concerns have arguably stoked many of the uncertainties we’ve seen across investing markets recently.

Inflation has indeed been on the rise. Just last week, we heard from the Reserve Bank of Australia (RBA) which told the public that inflation was running hotter than it predicted just a few months ago. Seeing as inflation can erode the wealth of all investors, this has understandably prompted some concerns.

So how does one position an ASX share portfolio to beat inflation? Let’s check out the ideas of one investing expert.

Jason Beddow is the managing director of listed investment company (LIC) Argo Investments Limited (ASX: ARG). According to reporting in the Australian Financial Review (AFR) this week, he recently gave an interview discussing the current inflationary environment. Mr Beddow reckons the gains we have seen over the ASX the past 18 months or so are unlikely to be repeated. That’s given the “extreme stimulus” in response to the COVID-19 pandemic is winding up.

ASX expert picks shares to beat inflation

As such, Beddow says that Argo is “moving up the safety scale a bit”.

“I think you’ve got to be in the bigger, quality stocks,” he stated.

So how does one position a portfolio in such an environment when inflation is of major concern? With those same larger, higher-quality companies, according to Beddow. He names CSL Limited (ASX: CSL), Macquarie Group Ltd (ASX: MQG), and BHP Group Ltd (ASX: BHP) as great places to start.

But Beddow also reckons ASX 200 energy companies like Santos Ltd (ASX: ATO) and Woodside Petroleum Limited (ASX: WPL) are also worthy of a look. Beddow says that demand for oil and gas “should be strong for more than a decade” and those companies are likely to be “solid performers as inflation rises and investment returns are harder to come by”. He says packaging company Amcor (ASX: AMC) is also in the same boat.

Beddow also names the big banks, like Commonwealth Bank of Australia (ASX: CBA), as shares that “should be reasonable investments over the next year”. That’s due to the “traditional rule of thumb [that] their net interest margin would benefit from rising interest rates”.

Mr Beddow’s comments come as Argo reported its half-year financial earnings his morning. As my Fool colleague Bernd covered at the time, Argo reported a 91.5% rise in earnings per share (EPS), as well as a 14.3% rise in its interim dividend. Over the period, Argo topped up its investments in Macquarie, CSL, and EML Payments Ltd (ASX: EML). It unloaded positions in Boral Limited (ASX: BLD), AGL Energy Limited (ASX: AGL), and Crown Resorts Ltd (ASX: CWN).

The post These ASX 200 shares can beat inflation: expert appeared first on The Motley Fool Australia.

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

Before you consider CSL, 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 CSL wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia owns and has recommended Amcor Limited. The Motley Fool Australia 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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Down 10% in a month, here’s why the Silver Lake (ASX:SLR) share price climbed today

rising gold share price represented by a green arrow on piles of gold blockrising gold share price represented by a green arrow on piles of gold blockrising gold share price represented by a green arrow on piles of gold block

The Silver Lake Resources Limited. (ASX: SLR) share price pushed higher on Monday. The gold producing and exploration company released an announcement regarding an on-market share buyback.

At market close, Silver Lake shares finished the day up 1.99% to $1.54. It’s worth noting that its shares are down more than 10% in the past month.

Silver Lake set to commence share buy back

In today’s statement, Silver Lake advised it intends to begin an on-market share buyback over the next 12 months. This will see management begin to reduce surplus capital whilst increasing shareholder value.

Basically, this means that when Silver Lake buys back its shares, the number of shares on its registry will decrease. With a lesser amount, this effectively increases the value of each share as the revenue and profits remain the same.

The company is seeking to buy back up to 10% or approximately 912.48 million ordinary shares within the above period.

The proposed start date will commence on 24 February 2022 and run until 23 February 2023.

Silver Lake noted that its strong balance sheet, as well as forecasted free cash flow generation, provides it ample flexibility.

As such, the board made the decision to undertake the value accretive capital management initiative.

The company stated that the structure of an on-market buyback allows it to take advantage of share price volatility.

By conducting purchases during periods where the share price has fallen significantly, this is an opportunity to benefit the business.

The on-market buyback program does not require shareholder approval and will be executed at the company’s discretion.

Silver Lake share price snapshot

Over the past 12 months, Silver Lake shares have fallen around 1% despite surging since late September. When looking at 2021 alone, its shares are down over 13%.

Silver Lake commands a market capitalisation of roughly $1.41 billion with approximately 912.46 million shares issued.

The post Down 10% in a month, here’s why the Silver Lake (ASX:SLR) share price climbed today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Silver Lake share price right now?

Before you consider Silver Lake share price, 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 Silver Lake share price wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

Motley Fool contributor Aaron Teboneras 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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