Day: February 19, 2022

3 small cap ASX shares with enormous upside potential

surprised asx investor appearing incredulous at hearing asx share price

surprised asx investor appearing incredulous at hearing asx share pricesurprised asx investor appearing incredulous at hearing asx share price

The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan’s software allows sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Morgan Stanley is positive on Bigtincan’s future. So much so, it has an overweight rating and $2.10 price target on its shares. The latter is more than double the current Bigtincan share price.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is this online sports betting company. Over the last couple of years, BlueBet has been growing its top line very strongly. This has been driven by the increasing popularity of mobile sports betting and its growing, but modest, market share. Management appears confident in can continue to grow its market share in Australia in the coming years and also has its eyes on the enormous US market.

The team at Morgans remains positive on BlueBet. The broker currently has an add rating and $1.60 price target on its shares. This is just less than double the current BlueBet share price of 84 cents.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Whispir estimates that it has a total addressable market of US$4.7 billion in just the United States market. So, with management guiding to annual recurring revenue (ARR) of $65 million to $70 million in FY 2022, it clearly has a very long growth runway.

Canaccord Genuity recently reiterated its buy rating and $3.50 price target on the company’s shares. This compares to the latest Whispir share price of $2.06.

The post 3 small cap ASX shares with enormous upside potential 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 has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, BlueBet Holdings Ltd, and Whispir 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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3 ETFs for ASX investors to watch in 2022

ETF on top of a chart with a magnifying glass on it.

ETF on top of a chart with a magnifying glass on it.ETF on top of a chart with a magnifying glass on it.

If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs give investors access to a large number of different shares through just a single investment.

With that in mind, listed below are three ETFs that could be worth a closer look. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of an index comprising the 50 largest technology and online retail stocks in Asia (excluding Japan). These companies are among the fastest growing in the region and are busy revolutionising the lives of billions of people. Among the ETF’s holdings are Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for those that are interested in the cryptocurrencies industry rather than directly in coins. The fund manager notes that the ETF is designed to capture the full breadth of the crypto ecosystem, by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), those whose balance sheets are held at least 75% in crypto-assets, and diversified companies with crypto-focused business lines. Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Square/Block.

BetaShares Global Cybersecurity ETF (ASX: HACK)

A final ETF from BetaShares to look at is the BetaShares Global Cybersecurity ETF. It provides investors with exposure to the leaders in the global cybersecurity sector. The fund manager notes that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. This bodes well for the companies included in the ETF such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta.

The post 3 ETFs for ASX investors to watch 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

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 BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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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Is the Woolworths (ASX:WOW) share price a buy or sell right now?

man doing stocktake at supermarket

man doing stocktake at supermarketman doing stocktake at supermarket

Looking at the Woolworths Group Ltd (ASX: WOW) share price right now, is it a buy or sell?

Woolworths shares have gone down 11.6% since the start of the year. Over the past six months it has fallen 18%. This has reversed the gains made in the second half of 2021.

In the last year, the Woolworths share price is slightly up, with a 1.6% gain.

What’s going on?

There was a steep sell-off of Woolworths shares on 14 December 2021 down to $37.45.

The supermarket business released a trading update about the first half of FY22.

It said that after the easing of lockdowns in New South Wales and Victoria during October, sales in ‘Australian food’ had moderated as customers return to more normal shopping habits. Total sales in the first half to the middle of December were up 3%.

But, it also said direct COVID costs in Australian food are expected to be approximately $150 million. On top of that, there has been indirect disruption to stores and distribution centres from operating in a COVID environment that has led to elevated operating costs of approximately $60 million to $70 million in the half.

Supply chain costs were also impacted by higher volumes, fuel price increases and the impact of balancing supply across distribution centres on the eastern seaboard.

E-commerce sales are still growing strongly. Online sales were up 50% in the half. While the profitability of e-commerce continues to improve, e-commerce sales are lower margin, which together with a decline in-store sales, has impacted overall profitability in the half.

Australian food FY22 first half earnings before interest and tax (EBIT) is expected to be between $1.19 billion to $1.22 billion (down from $1.31 billion last year).

Australian food may have the biggest influence on the Woolworths share price, but there are other divisions to keep track of.

Big W sales in the second quarter were stronger than the first. Second quarter sales were down 3.3% year on year, though first quarter sales were down 17.5%. Big W first half EBIT is expected to be $20 million to $30 million (down from $133 million).

New Zealand food sales growth was “strong” as it benefited from lockdowns and higher inflation.

The Woolworths share price also suffered during the broader share market correction in January 2022.

Is the Woolworths share price a buy or sell?

Opinions are mixed on the business.

Ord Minnett thinks that Woolworths shares are a buy, with a price target of $39.60.

However, Credit Suisse rates the business as a sell, with a price target of just $30.87. The broker thinks the growth outlook is slowing and is not confident that Woolworths’ profit margins won’t be affected by inflation. Inflation could also impact the retailer Big W.

Based on Credit Suisse FY22 estimates, the Woolworths share price is valued at 33x FY22’s estimated earnings with a grossed-up dividend yield of 3.1%.

Using Ord Minnett projections, Woolworths shares are valued at 30x FY22’s estimated earnings with a grossed-up dividend yield of 3.5%.

The post Is the Woolworths (ASX:WOW) share price a buy or sell right now? appeared first on The Motley Fool Australia.

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

Before you consider Woolworths, 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 Woolworths 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 Tristan Harrison 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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2 promising ASX shares this fund manager likes

ASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy

ASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buyASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy

Respected fund manager Wilson Asset Management (WAM) has recently identified two promising ASX shares that it owns in one of its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.

WAM says WAM Active invests in market mispricing opportunities in the Australian market.

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.2% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 2.8%.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Champion Iron Ltd (ASX: CIA)

This is a mining business which is headquartered in Canada.

Champion Iron is described as a premium iron ore miner exploring the Bloom Lake and Fire Lake projects in the Canadian province of Quebec.

Last month, Champion Iron announced in its third quarter update that its growth project ‘Phase II’ remains on track for an April completion.

The ASX share has announced its dividend of C$0.10 per share. It also continues to invest for growth as well.

Champion Iron has increased its leverage to higher iron ore prices. It’s progressing growth projects which are expected to double product output this year.

WAM is still bullish on the business and expects “considerable” free cash flow will be generated by the completion of the ‘Phase II’ project.

Life360 Inc (ASX: 360)

The fund manager describes Life360 as a business which provides a family safety platform that allows parents to track the whereabouts of their children. It has over 33 million users globally.

WAM said the initial catalyst for the investment was the appointment of Randi Zuckerberg, the sister of Meta (Facebook) founder, CEO and Chair Mark Zuckerberg.

In January 2022, Life360 provided an update for the quarter for the three months to December 2021. This showed the third consecutive quarter of record subscribers, which led to a 62% increase in revenue growth. It beat previous company guidance.

The fund manager also noted that the ASX share completed the acquisition of Bluetooth tracking device company Tile in January 2022. The holiday period trading was tracking to plan.

This environment of rising bond yields and the rotation out of higher growth shares has impacted some share prices, so WAM has “managed” the position size accordingly.

Life360 and its underlying business model are “strengthening” according to the fund manager, with the acquisition of Tile causing the company to emerge as a global leader in location tracking services. WAM says the outlook remains positive.

The investment team believe that a potential dual-listing in the US remains a key catalyst for the company.

The post 2 promising ASX shares this fund manager likes appeared first on The Motley Fool Australia.

Should you invest $1,000 in Life360 right now?

Before you consider Life360, 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 Life360 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 Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. 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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