Day: 2 March 2022

If you’re a fan of small cap ASX shares, then you may want to add the two shares listed below to your watch list.

Here’s what you need to know about these growing small cap ASX shares:

Nitro Software Ltd (ASX: NTO)

The first small cap to watch is Nitro Software. It is a document productivity software company that is aiming to drive digital transformation in organisations around the world.

Nitro is doing this with its Nitro Productivity Suite. This suite provides businesses of all sizes with integrated PDF productivity and electronic signature tools through a horizontal, software-as-a-service, and desktop-based software solution.

Management is very positive on the future, particularly after a recent acquisition strengthened its offering.

It said: “Nitro believes the expanded product suite delivered by the Connective acquisition will drive substantial opportunities in the fast-growing US$17 billion global SaaS eSign market as organisations around the world increasingly demand high-trust and highly secure eSign and workflow solutions.”

In response to its recent full year results, the team at Bell Potter put a buy rating and $2.75 price target on the company’s shares.

PlaySide Studios Limited (ASX: PLY)

Another small cap to watch is PlaySide Studios. It is one of the largest independent video game developers in Australia.

At present, the company’s portfolio comprises 50+ titles that are delivered across four platforms. These are mobile, virtual reality, augmented reality, and PC. Among these titles are games developed in collaboration with studios such as Disney and Pixar.

PlaySide has also recently announced promising deals with a number of parties. This includes games publishing giants 2K Games and Activision Blizzard, as well as gaming influencer company One True King. These deals look set to support the company’s growth in a market estimated to be worth US$159 billion per annum at present.

Canaccord Genuity currently has a buy rating and $1.30 price target on its shares.

The post 2 small cap ASX shares that are highly rated by brokers appeared first on The Motley Fool Australia.

More reading

• Playside (ASX:PLY) share price launches 6% on surging half-year revenue
• Nitro (ASX:NTO) share price sinks 14% despite record result
• 2 small cap ASX shares getting analysts excited
• 3 buy-rated ASX tech shares with at least 60% upside potential
• 2 exciting ASX growth shares analysts are tipping for big things

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 recommended 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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Wednesday was a big day for oil prices, and ASX oil shares made the most of it.

The S&P/ASX 200 Energy Index (ASX: XEJ) led the market today, gaining a whopping 4.88%, with oil producers making up the sector’s leaders.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.28% higher while the All Ordinaries Index (ASX: XAO) also ended the day with a 0.28% gain.

Let’s take a closer look at what boosted oil prices on Wednesday.

What drove oil prices, and ASX oil shares, higher today?

The price of oil soared to seven year highs on Wednesday – trading well over US$100 per barrel.

The rapid increase came after the International Energy Agency announced it will release 60 million barrels of oil from emergency reserves to calm supply concerns following Russia’s invasion of Ukraine.

However, the size of the release – less than a single day’s worth of global consumption – seems to have fuelled fears of a shortfall.

The Brent crude oil futures rose 5.8% to a high of US$111.09 per barrel on Wednesday, according to data from CNBC.

Meanwhile, West Texas Intermediate futures rose to US$109.30 per barrel at its intraday high – representing a 5.6% increase.

ASX oil giants Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Beach Energy Ltd (ASX: BPT) all saw their share prices take off, along with the commodity’s value.

Santos was the ASX 200 Energy Index’s best performer on Wednesday. Its share price gained 6.2% to close at $7.71.

Meanwhile, the share prices of Woodside and Beach Energy gained 6.14% and 4.22% respectively.

Woodside was among several energy stocks to hit a new 52-week high on Wednesday.

Broker predicts a bright future for these energy producers

Likely also boosting shares in Santos and Woodside was a note out of Credit Suisse.

The broker believes the conflict in Ukraine – and the resulting decision among international energy giants to pull out of projects in Russia – could spell great news for the companies.

Credit Suisse analyst Saul Kavonic was quoted by The Australian as saying:

 [The conflict] could present material upside to LNG supply/demand fundamentals benefiting Woodside and Santos, both in terms of pricing, asset selldowns and appetite to develop new growth projects.

With only Qatari and the US presenting material supply growth options on the table near-term, we expect more capacity may need to be incentivised elsewhere.

More marginal LNG projects may even return again, such as Browse, Sunrise, and the Darwin LNG expansion.

The post The price of oil is soaring to new highs and these ASX oil shares are cashing in appeared first on The Motley Fool Australia.

More reading

• Black gold! 3 ASX energy shares pumping new 52-week highs today
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Here’s why the Beach Energy (ASX:BPT) share price is climbing today
• Woodside (ASX:WPL) shares are up 6% today. Here’s the lowdown
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks

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. 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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Here’s the understatement of the last couple of years: There’s just a little bit going on right now.

Ukraine.

COVID.

Floods.

They are, of course, more important as human issues than financial ones.

Each brings suffering in its own way, and the investment implications do – and should – come second.

But, as I’ve said before (and will say again), I’m a financial advisor working for an investment advice business, so that’s where I’ll focus most of my comments.

Still, it’s important to recognise that the real issues aren’t financial – and we hope for a good result in each case.

Financially speaking, though, in each case there’s no shortage of ‘new news’ with each passing day (or sometimes hour).

It’s hard to keep up with.

As soon as you’ve digested the last piece of news, and started to think about the implications, another one takes its place.

Again, those new pieces of news are important. They are real and they are impactful for the people involved.

They are also potentially impactful, economically and financially.

Potentially.

In the short term.

Medium term at best, is my guess.

That may not be the case if you’re a Russian oligarch, of course. Or a Lismore cafe owner.

The latter group have my sympathy. The former, not so much.

But for the rest of us?

Those of us who have a diversified portfolio of ASX and US-listed companies?

Over the long term?

I’m going to stick my neck out here.

I don’t know how long COVID hangs around. I don’t know how long the Russian invasion of Ukraine takes to play out. And I don’t know what Mother Nature has in store for Brisbane or the Northern Rivers region of New South Wales.

But I’m going to suggest that a year from now, none of those issues is weighing heavily on share prices.

Those odds get even longer if we look out 2, 3 or 5 years.

Now, think about the things that have occupied your mind recently, when thinking about your investments.

Are you waiting for COVID to finally go away?

Are you just going to ‘wait and see’ over Ukraine?

Have the floods, as awful as they are, distracted you from your long term investing focus?

Here’s what I tweeted this morning:

—–

The more nervous the market gets, the more it overweights the short term and underweights the long term.

That, right there, is the opportunity for the patient, stoic, long term investor.

—–

We’ve seen just that over the past few weeks on the US and Australian share markets.

Overactive, overstimulated and overtrading.

Traders trying to second guess what the rest of the market might do next.

And that’s despite next-to-no actual operational or financial impact for the vast, vast majority of the companies listed on our stock markets.

Remember, too: when the market falls by 2% it’s wiping one-fiftieth off the value of all listed companies.

And, if you believe (you should) that share prices are the sum total of all future cash flows of those companies, from here to eternity… well, shaving one-fiftieth of that number away because of an issue half a world away just seems silly, doesn’t it?

I got quite a few replies to that tweet.

One asked whether I was saying we were at the bottom.

My reply was simple:

—–

No-one knows.

And probably useless to try.

The question I ask myself: “Will these shares be worth materially more in 5 and 10 years?”

If yes, I buy.

The short-term volatility is just a distraction.

—–

There’ll be more news.

More crises.

More reason to dither.

More justification to ‘wait and see’.

And, if history is any guide, the money will be made while all of that happens.

Which means we have a choice.

Me?

I’m buying.

I reckon that’s the right approach for almost everyone else, too.

Fool on!

The post What investors do while traders are distracted appeared first on The Motley Fool Australia.

More reading

• This ASX mining share rocketed 21% today. Here’s why
• ‘Hope for the best and plan for the worst’: BHP boss
• Own Endeavour (ASX:EDV) shares? Here’s how the company is responding to the Ukraine crisis
• Analysts name 2 excellent ASX tech shares to buy
• Black gold! 3 ASX energy shares pumping new 52-week highs today

Motley Fool contributor Scott Phillips 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 S&P/ASX 200 Energy Index (ASX: XEJ) was the best performing sector on the ASX today, closing the day 4.89% higher. The S&P/ASX 200 Materials Index (ASX: XMJ) came in second, gaining 2.81%.

The price movements come as global commodity prices climb amid conflict between Russia, Ukraine and the rest of the world.

Against that backdrop, an Aussie cobalt developer has received government support for its project in New South Wales.

At market close, the Cobalt Blue Holdings Ltd (ASX: COB) share price was up 20.65% to 55.5 cents. In comparison, the broader ASX All Ordinaries Index (ASX: XAO) was up 0.21%.

So, what’s going on with this ASX mining share?

Renewable energy project receives Government support

Cobalt Blue’s Broken Hill Cobalt Project (BHCP) was awarded “Major Project Status” by the Australian government today — a move that will support the development of the project over three years.

The project aims to produce “high quality, battery ready cobalt sulphate” for renewable energy solutions.

The company says the project has the potential to be “one of the largest cobalt producers in the world” and has the attention of “more than 30 of the world’s largest battery manufacturers”.

Cobalt Blue said the government grant gives “formal recognition of the national economic implications of the BHCP through its contribution to growth, productivity, government revenue, industry and regional development”.

Further, the company said the project was “the only large scale, ex African, Greenfield primary cobalt project globally”.

Critical minerals projects such as BHCP are integral components of The Australian Critical Minerals Strategy and Australia’s Long Term Emissions Plan as well as aligning with national security and interests to bolster geopolitical stability and building sovereign capability in the sector.

Project to position Australia as ‘number 2 cobalt producer’

Commenting on the development, Cobalt Blue CEO Joe Kaderavek said:

Granting Major Project Status to the Broken Hill Cobalt Project will greatly assist COB to raise development capital by recognising the strategic importance given to this Project by The Australian Government.

This milestone is particularly important for overseas partners and well timed in our development journey.

COB can now boast both Made in Australia and Backed by Australia.

Cobalt Blue share price snapshot

Over the last 12 months, this ASX mining share has increased 37% in value.

It’s also risen more than 12% this year to date.

The company has a current market capitalisation of around $170 million.

The post This ASX mining share rocketed 21% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• What investors do while traders are distracted
• ‘Hope for the best and plan for the worst’: BHP boss
• Own Endeavour (ASX:EDV) shares? Here’s how the company is responding to the Ukraine crisis
• Analysts name 2 excellent ASX tech shares to buy
• Black gold! 3 ASX energy shares pumping new 52-week highs today

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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

BHP Group Ltd’s (ASX: BHP) leadership and the management of other companies are thinking about the potential impacts of the Russian invasion of Ukraine.

The Australian Financial Review reported that BHP’s Chair Ken MacKenzie believes more companies and investors will decide to follow the decision of the oil businesses BP and Shell to exit Russia.

Mr MacKenzie thinks that boards and management teams will be looking at the best-case and worst-case scenarios to consider the potential outcomes on the business, as well as cyber risks.

The AFR quoted Mr Mackenzie who said:

As business people, our role is to understand those situations, to understand the potential range of outcomes that can come from a geopolitical situation. We call that scenario analysis and then develop contingency plans around that to protect the business. That’s our job, but none of us have a crystal ball.

I always say, hope for the best and plan for the worst. So, it’s everything from one scenario which would be a quick, peaceful resolution, which we’re all looking for, to the unthinkable.

And we’ve just got to understand the implications to our business and get out in front, which is what everybody did during the pandemic, very successfully.

Is Europe important for BHP?

BHP makes less than 2% of its earnings – around $1 billion of sales – from Europe.

The more important market for the business is China which is a big customer for BHP’s iron ore and it also buys a lot of its other commodities as well.

Mr MacKenzie noted that there is a bit of tension between Australia and China, but said there is mutual dependency – “We need China and China needs us.” He also said that its business-to-business relationships with its Chinese suppliers and customers “have never been stronger”.

BHP share price snapshot

The BHP share price rose 3.8% today. That means that it has now risen by 14% this year, despite now going ex-dividend.

One of the latest analyst ratings comes from Macquarie, which rates it as a buy with a price target of $53. That implies a potential upside of around 10% over the next 12 months. The broker reckons the company can keep capitalising on the high resource prices.

The post ‘Hope for the best and plan for the worst’: BHP boss appeared first on The Motley Fool Australia.

More reading

• Here’s how these top 3 ASX 200 mining shares performed in February
• Why did the BHP (ASX:BHP) share price deliver such lacklustre gains in February?
• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?
• How might the conflict in Ukraine impact the iron ore price?
• Which ASX 200 shares have delivered the biggest dividend payout increases this earnings season?

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 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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A message from our CIO, Scott Phillips:

G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine

The Endeavour Group Ltd (ASX: EDV) is responding to the Ukraine crisis with one significant product change.

Endeavour shares were swapping hands at $7.02 at the close of trade today, a 0.57% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) gained 0.28% today.

Let’s take a look at how Endeavour Group is showing its support for Ukraine.

Russian product taken off the shelves

In response to Russia’s invasion of Ukraine, Endeavour has decided to pull all alcohol made in Russia from its liquor shops and hotels.

Endeavour owns major Australian liquor outlets and brands including Dan Murphy’s, BWS, ALH Hotels and Jimmy Brings.

An Endeavour Group spokesperson commented on the decision:

As an organisation, Endeavour Group is deeply concerned with the situation in Ukraine and we join the calls for peace.

Following feedback from a variety of stakeholders, we have decided to remove products of Russian origin from our stores, hotels and online businesses in the coming days.

Endeavour shares slipped 1% yesterday. As my Foolish colleague Sebastian Bowen reported, the company’s shares were trading ex-dividend.

Endeavour expects to pay a fully-franked interim dividend of 12.5 cents per share on 28 March. Endeavour reported a 15.6% boost in net profit after tax (NPAT) to $311 million in its half-year results on 21 February.

Coles Group Ltd (ASX: COL) has also decided to remove Russian-sourced drinks from its Liquorland, Vintage Cellars and First Choice Liquor stores, SBS News reported.

Endeavour share price snapshot

The Endeavour share price has surged 16.61% in the past year. In the past month alone, Endeavour shares have surged more than 10%.

For perspective, the benchmark index has returned around 5% over the past year.

Endeavour has a market capitalisation of about $12 billion based on its current share price.

The post Own Endeavour (ASX:EDV) shares? Here’s how the company is responding to the Ukraine crisis appeared first on The Motley Fool Australia.

More reading

• Party pooper? Why the Endeavour (ASX:EDV) share price is slumping today
• Here’s what you need to know about the Woolworths (ASX:WOW) dividend
• ASX 200 shares stage comeback amid Russia optimism
• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher
• Crack a bottle! Endeavour (ASX:EDV) share price jumps 11% on profit lift

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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If you’re a fan of tech shares, then you may want to look at the two listed below.

Here’s why these tech shares have been rated as buys:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is a printed circuit board (PCB) design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the clear leaders in their field and used by companies such as Amazon, BAE Systems, Facebook, and Tesla.

Last month Altium released its half year results and revealed a 28% increase in revenue to US$102 million and a 38% jump in net profit to US$23 million. This stellar growth is being underpinned by strong demand for its software thanks to favourable tailwinds such as the Internet of Things (IoT) and artificial intelligence. These are supporting an explosion of electronic devices globally. 

Pleasingly, Altium’s CEO, Aram Mirkazemi, is positive on the future. He said: “We are picking up pace toward market dominance and accelerating our transformative vision to digitally connect electronic design and manufacturing to the broader engineering ecosystem.”

Bell Potter remains positive on Altium following its half year results. In response to the release, the broker retained its buy rating but trimmed its price target to $38.75.

Megaport Ltd (ASX: MP1)

This leading cloud connectivity and networking solutions provider could be a tech share to buy. This is due to its first mover advantage in a massive market.

Goldman Sachs estimates that Megaport has exposure to $129 billion per annum spent on fixed enterprise networking across its current geographies. This market is being underpinned by structural tailwinds such as the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).

All in all, the broker believes this leaves Megaport well-placed for growth over the next decade. As a result, it has put a buy rating and $19.50 price target on the company’s shares.

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

More reading

• Brokers name 2 exciting ASX growth shares to buy in March
• 2 top ASX growth shares that have been heavily sold off
• Here’s everything you need to know about the latest Altium (ASX:ALU) dividend
• ASX 200 tech shares take a hammering as Ukraine fears escalate
• Leading brokers name 3 ASX shares to sell today

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 Altium and 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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The All Ordinaries Index (ASX: XAO) has recorded a day in the green today, finishing the trading day up 0.28%. at 7,406.3 points. A small gain, but a gain nonetheless. But ASX energy shares, on the whole, have fared far better.

Thanks to rapidly rising energy prices, most ASX energy shares enjoyed extremely pleasing gains over the course of the trading day. So let’s check out three such shares that managed to hit new 52-week highs this Wednesday.

3 ASX energy shares that hit a new 52-week high today

Karoon Energy Ltd (ASX: KAR)

Karoon Energy was one company that enjoyed some robust gains on the markets today. Karoon shares opened at $2.19 apiece this morning, and finished the trading day at $2.17 each. However, the company hit a new 52-week high of $2.21 a share during intraday trading. Even after coming down slightly from that high by the end of the session, Karoon shares remain up almost 90% over the past 12 months.

New Hope Corporation Limited (ASX: NHC)

Coal miner New Hope is another ASX energy share that is enjoying some love today. New Hope shares opened at $2.77 this morning before rising as high as $2.83, the company’s new 52-week high. Again, the company has dipped by close. But even so, this miner was still up just over 5.2%. New Hope also remains a long way from its 52-week low of $1.13 a share. Over the past 12 months, this company has given investors a return of 130%.

Woodside Petroleum Limited (ASX: WPL)

Woodside is our final and largest ASX energy share to check out today. This black gold digger opened at $29.68 a share this morning. But after a few gyrations, Woodside ended up setting a new 52-week high at its closing share price of $30.44. Over the past 12 months, this oil share has given investors a healthy return of more than 23%.

The post Black gold! 3 ASX energy shares pumping new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Woodside (ASX:WPL) shares are up 6% today. Here’s the lowdown
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Own Woodside (ASX:WPL) shares? Here’s the latest on the energy giant’s major court win
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX energy shares smashing 52-week highs today

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. 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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An energy industry expert believes excitement over hydrogen has overshadowed a bigger investment opportunity that many ASX shares are involved in.

Shannon O’Rourke is the former general manager of new energy at Woodside Petroleum Limited (ASX: WPL). He is also the founder of the company’s hydrogen, carbon, and carbon capture and storage businesses. He believes the traditional battery sector provides more benefits that other emerging energy sources.

O’Rourke became the CEO of the Future Battery Industries Cooperative Research Centre (FBICRC) in December after more than 25 years in the energy sector.

Let’s take a look at the energy technology that he believes Australia should invest in for the future.

Battery technology a better opportunity than hydrogen: O’Rourke

As an energy industry veteran, O’Rourke has seen plenty of “hydrogen hype” – a trend that many ASX shares have leaned into. But he’s looking to convince policymakers to invest in battery technology research.

O’Rourke told The Australian that “hydrogen has a place… but, ultimately the opportunity is much bigger and much real for batteries.”

“[Australia has a] huge strength in minerals,” he continued. “It should be incumbent on us to turn that into a strength in mineral processing and materials.”

FBICRC is reportedly pushing for a $750 million stand-alone Australian Battery Institute (ABI) to be included in the upcoming Federal budget.  

It argues an ABI would ensure Australia’s battery industry could help keep costs of domestic energy storage technology low.

Currently, Australia’s battery industry adds $1.3 billion to the economy. It holds a 50% market share in critical ores and demand for domestic storage products is growing. Yet, most of its trade is with China, as the nation controls 90% of the world’s battery chemicals market.

FBICRC argues Australia could create said chemicals, as well as advanced materials, cells, and modules for global value chains.

Commenting on FBICRC’s Towards 2030 – Australia’s Battery Powered Future strategy released on Monday, O’Rourke said:

Put simply, Australia has a choice.

We can continue our traditional focus on the mining and export of raw battery materials and accept the lost opportunity of value add for Australia.

Alternatively, we can shift our mindset, invest with purpose and adopt courageous and visionary policy settings. These measures have the potential to unlock a significant economic prize of $7.4 billion annually and more than 34,000 jobs by 2030.

Which ASX shares are involved in battery technology?

There are plenty of ASX shares involved in the battery technology industry.

Perhaps the most iconic ASX battery share is Novonix Ltd (ASX: NVX). The company is involved in graphite exploration and mining, battery technology, and battery materials.

Additionally, Ecograf Ltd (ASX: EGR) is a vertically integrated creator of battery anode material.

Finally, ASX newbie, Li-S Energy Ltd (ASX: LIS) has created a new battery technology based on lithium sulphur chemistry.

The post Expert explains why this investment opportunity is ‘much bigger’ than hydrogen appeared first on The Motley Fool Australia.

More reading

• Novonix (ASX:NVX) share price jumps as net assets, cash earnings spike
• How have ASX lithium stocks been faring this reporting season?
• Down 39% in a month. Has the tide turned for Novonix (ASX:NVX) shares?
• Why Cettire, Novonix, Serko, and Zip shares are sinking today

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. 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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Considering adding crypto to your superannuation savings?

You’re not alone.

While few investors would have considered relying on crypto to help their retirement nest eggs a few years ago, sentiment is beginning to change.

Considering adding crypto to your super?

If you have been thinking about adding crypto to your super portfolio, there are a few important things you need to know.

First, Australian super funds don’t currently invest in digital tokens.

While that may change, at the moment only people with self-managed super funds (SMSFs) can add the likes of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) into their fund.

Second, if you are considering taking this path, don’t lose sight of the high volatility that’s still part and parcel of almost all cryptos, save some stablecoins.

Over the past 12 months, for example, the Bitcoin price has been as low as US$28,894 and as high as US$68,790, according to data from CoinMarketCap.

As for the world’s number 2 crypto by market cap, over the past full year the Ethereum price traded as low as US$1,451 and as high as US$4,892.

Something to keep foremost in mind if you’re looking at accessing your super savings in the short term.

What the industry experts are saying

Karl Mohan is the general manager Asia Pacific at Crypto.com.

Mohan offered the following tips to folks contemplating adding crypto to their SMSF (courtesy of The Australian):

One, always get financial advice specific to the circumstances of the super fund and the individual. Two, understand risk appetite and investment horizons. Three, learn about crypto and understand what you are investing in.

Creation Wealth senior financial planner Andrew Zbik stresses the speculative nature of tokens like Bitcoin and Ethereum. “It’s an asset, but it’s a speculative asset. If you are new, you need to ask yourself, ‘Why am I doing it?’” he said.

According to SMSF Association deputy CEO Peter Burgess, only $218 million worth of crypto was held in self-managed super funds in 2020. That’s less than 0.1% of the total SMSF assets.

Though crypto numbers in SMSFs have likely notched up in the past year, Aussie investors eyeing their retirement savings are “adopting a very conservative and measured approach,” he said.

Burgess also highlighted the importance of knowing the tax codes that may apply (quoted by The Australian):

Holding crypto must be allowed under the terms of the fund’s trust deed and it must be consistent with the fund’s investment strategy, which, among other things, requires an SMSF trustee to consider the risk profile of members, investment diversification and the cashflow and liquidity needs of members.

And if you want another hurdle to adding crypto into your super fund, he added, “Many licensed financial advisers are not permitted to provide advice on such investments, which adds another layer of risk.”

Finally, there are the tax implications.

H&R Block director of tax communications Mark Chapman cautioned, “It can be difficult to calculate income and gains from cryptocurrency in your fund’s tax return. A reputable tax agent will be able to do this for you.”

The post Considering adding crypto to your super? Read this appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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