Day: February 24, 2022

2 intriguing ETFs for ASX investors to watch

Looking for some exchange traded funds (ETFs) to boost your portfolio? If you are, you might want to look at the ones below.

Here’s why they could be worth researching further:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for investors that are interested in investing in the cryptocurrency industry rather than coins.

BetaShares notes that the ETF is designed to capture the full breadth of the crypto ecosystem. This is achieved by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), companies with balance sheets that hold 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 Afterpay-owner, Block. Given the nature of the industry, it is not likely to be one for the fainthearted.

VanEck Australian Resources ETF (ASX: MVR)

If you’re more interested in the traditional type of mining, then you may want to look at the VanEck Australian Resources ETF.

This ETF gives investors exposure to a diversified portfolio of ASX-listed shares with the aim of providing investment returns before fees and other costs of the MVIS Australia Resources Index.

This index is a pure-play rules-based Australian sector index that tracks the performance of the largest and most liquid ASX-listed companies that generate at least 50% of their revenues or assets from the Australian resources sector.

Among the ETF’s holdings are many of the most well-known miners on the Australian share market. This includes the likes of BHP Group Ltd (ASX: BHP), Newcrest Mining Ltd (ASX: NCM), Rio Tinto Limited (ASX: RIO), and Woodside Petroleum Limited (ASX: WPL).

The post 2 intriguing ETFs for ASX investors to watch 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 Betashares Crypto Innovators ETF. 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 top growth shares analysts rate as buys after the market meltdown

A man looks surprised as a woman whispers in his ear.

A man looks surprised as a woman whispers in his ear.A man looks surprised as a woman whispers in his ear.

Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below.

Here’s what you need to know about these buy-rated growth shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. While the pandemic hit Aristocrat hard, it has bounced back very strongly and even appears to be winning market share from rivals.

Furthermore, its digital business continues to grow strongly and generate significant recurring revenues thanks to the ongoing popularity of its portfolio. And while the company has just missed out on a major real money gaming acquisition, management appears intent on increasing its exposure to this growing market and certainly has the balance sheet strength to do so.

Morgans is very positive on Aristocrat and has an add rating and $48.00 price target on its shares. Based on the current Aristocrat share price of $36.70, this implies potential upside of approximately 31% for investors.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Thanks to the popularity of these brands and management’s ongoing investment in R&D, Breville has been growing at a solid rate for years. This has continued in FY 2022, with the company delivering 23.6% increase in half year revenue to $878.7 million and a 25.1% lift in net profit after tax to $77.7 million.

Morgans is also a fan of Breville and has recently put an add rating and $32.00 price target on its shares. With the Breville share price currently fetching $27.18, this suggests potential upside of approximately 18% for investors over the next 12 months.

The post 2 top growth shares analysts rate as buys after the market meltdown 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. 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 oil price has just hit an 8-year high. What might this mean for ASX shares?

The oil price has reached an 8-year high. What could this mean for ASX shares?

Oil prices have risen above US$100 and have hit a price that hasn’t been seen for almost a decade.

It has been a very volatile day for the ASX share market. The S&P/ASX 200 Index (ASX: XJO) fell by 3% today to 6,991 points.

What’s happening?

Russia has started a full-scale invasion of Ukraine, as reported by various media and Ukrainian officials.

Before today, geopolitical concerns had sent the oil price higher. It’s possible that there could be major economic sanctions against Russia, which was the second biggest oil producer in 2020 according to reporting by Forbes.

Sanctions on Russian oil could hurt the available global oil supply, when prices were already rising.

According to reporting by Forbes, Russia produced 10.1 million barrels of oil per day of crude oil and natural gas condensate in 2020.

How could the higher oil price affect ASX shares?

There are a few key oil producers on the ASX. Two of the biggest are Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

Another major ASX-listed oil producer is BHP Group Ltd (ASX: BHP), though it’s planning to divest its oil business to Woodside in the next few months.

However, there are a number of wider impacts that higher oil prices could have.

There are plenty of ASX shares where they use a lot of oil products in their main operations, or the supply chain does, like Qantas Airways Limited (ASX: QAN), Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

There are plenty of other ASX shares that use oil in some way.

In a bid to try to control oil prices, Australia is considering using its 1.7 million barrels of fuel reserves held in the United States as part of a joint effort with like-minded nations according to reporting by the Australian Financial Review.

The newspaper said that Energy Minister Angus Taylor said Australia was working with the US and the International Energy Agency “to monitor global energy markets, ensure ongoing supplies and plan for appropriate measures to ensure energy security.” Mr Taylor continued:

Australia is prepared to join other IEA member countries to contribute to a global collective action, if one is called, through using our oil stocks held in the United States’ Strategic Petroleum Reserve (SPR) and will continue to monitor global gas markets.

Inflation concerns

Inflation was already a big concern for ASX shares, economists and central bankers before this difficult situation, as well as the climbing oil price.

The Guardian quoted Melbourne-based Kyle Rodda from IG Markets that said that the increase in fuel prices could lead to further inflation, making central banks have to react strongly to inflation:

… the supply disruptions in commodity prices would drive costs higher, and exacerbate the inflation central banks are already struggling to contain.

That means despite, this the Fed – and others – would be unable to buffet the shock, and would potentially have to tighten policy – a very negative scenario for risk assets.

Rising interest rates can have a downward impact on asset prices like ASX shares.

Warren Buffett said at the 1994 Berkshire Hathaway annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The post The oil price has just hit an 8-year high. What might this mean for ASX shares? appeared first on The Motley Fool Australia.

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

Before you consider BHP, 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 BHP 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 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 owns and has recommended COLESGROUP DEF SET. 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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Medical Developments International (ASX:MVP) share price on watch as losses widen

a doctor in a white coat with a stethoscope around his neck stands in the hallway of a hospital deep in concentration over a tablet device in his hands.

a doctor in a white coat with a stethoscope around his neck stands in the hallway of a hospital deep in concentration over a tablet device in his hands.a doctor in a white coat with a stethoscope around his neck stands in the hallway of a hospital deep in concentration over a tablet device in his hands.

The Medical Developments International Ltd (ASX: MVP) share price will be on watch on Friday.

This follows the release of the healthcare company’s half year results after the market close.

Medical Developments International share price on watch after big loss

  • Revenue down 23% to $9.865 million
  • Net loss after tax widened from $1.1 million to $7.4 million
  • Cash and cash equivalents of $28.3 million

What happened during the first half?

For the six months ended 31 December, Medical Developments International reported a 23% decline in revenue to $9.865 million. This decline was entirely due to $6.4 million in non-recurring contract income recorded during the prior corresponding period. This overshadowed a 55% increase in core sales, supported by a 131% jump in Australian Penthrox sales.

On the bottom line, Medical Developments International generated a net loss after tax of $7.4 million, compared to a loss of $1.1 million a year earlier. Though, after adjusting for non-operating items, the company’s loss was comparable to the prior period.

No dividend was declared for the half once again.

Management commentary

Medical Developments International’s Chair, Gordon Naylor, was pleased with the progress the company made during the half.

He said: “I continue to be pleased with the progress being made by Brent and his leadership team to reshape and focus MVP. It is especially encouraging to see early signs that the approach is working. Despite the pandemic challenges, Penthrox sales growth is strong in Europe, our primary growth corridor over the next few years. We’re also seeing solid underlying growth in Australian sales and our US respiratory franchise.”

“Our renewed focus has meant that we have taken formal decisions to cease further development of continuous flow processes for third parties and to exit the Veterinary segment, allowing our skilled resources to be applied to the core pain segment.”

“In another positive development, our next generation Penthrox delivery device (‘Selfie’) has reached the milestone of formal project approval. Our aim is for Selfie to propel further future business growth. I thank Brent and the MVP team who have been through a challenging time. The challenges aren’t over, but I am confident that the company is heading in the right direction,” Mr Naylor added.

No guidance has been provided for the remainder of FY 2022.

The post Medical Developments International (ASX:MVP) share price on watch as losses widen appeared first on The Motley Fool Australia.

Should you invest $1,000 in Medical Developments International right now?

Before you consider Medical Developments International, 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 Medical Developments International 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 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 Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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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