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.

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• Novonix (ASX:NVX) share price jumps as net assets, cash earnings spike
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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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The Treasury Wine Estates Ltd (ASX: TWE) share price rocketed higher since announcing its FY22 half-year results two weeks ago.

While the wine giant delivered a drop in earnings, investors looked past this and focused on the future. This led to the company’s share price advancing by more than 8% since 16 February.

However, Treasury Wine shares have edged lower today, down 2.10% to $11.415.

Here’s what is dragging the share price down on Wednesday.

Treasury Wine shares trade ex-divided

With the company’s half year results delivered, investors are eyeing Treasury Wine shares as they go ex-dividend today.

According to the half-year report, Treasury Wine produced a softened performance across key metrics.

In summary, net sales declined by 10.1% to $1,267 million over the previous corresponding period. 

The company’s Penfolds business felt the impacted by reduced shipments to mainland China. However, this was partly offset by the strong growth achieved through global priority markets and channels.

As a result, net sales revenue per case increased by 16% to $95.60.

On Treasury Wine’s bottom line, net profit after tax (NPAT) fell 7.5% to $109.1 million.

The board maintained a fully-franked interim dividend of 15 cents per share.

Management noted that the latest dividend equates to a payout ratio of 66% of NPAT.

The company’s dividend policy is to distribute between 55% to 70% of normalised net profit after tax each year.

It is worth noting that there is a capital management program that has been active since FY18. This returns excess capital efficiently through an on-market share buy-back.

When can Treasury Wine shareholders expect payment?

Treasury Wine will pay the interim dividend to eligible shareholders approximately 4 weeks away on 1 April. The dividend is fully-franked, which means investors can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 7 March to 18 March.

There is no DRP discount rate and the last election date for shareholders to opt-in is on 4 March.

Based on today’s price, Treasury Wine commands a market capitalisation of roughly $8.25 billion, and has a trailing dividend yield of 2.45%.

The post Here’s why the Treasury Wine (ASX:TWE) share price is sliding today appeared first on The Motley Fool Australia.

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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 recommended Treasury Wine Estates 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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March 2022 could be a good month to go hunting for cheap ASX shares with low price/earnings ratios (p/e ratios) according to the experts.

Businesses can trade at very different valuations. Some have market capitalisations that are around 10x the net profit. Some others are priced at 100x the profit, or more.

Often, those highly-priced businesses have a lot of growth expectations built-in. But it’s possible that the lower-priced ones can surprise the market. But low p/e shares can also disappoint as well. But experts have found these two which look like opportunities:

Shaver Shop Group Ltd (ASX: SSG)

The Shaver Shop share price is rated as a buy by the broker Ord Minnett with a price target of $1.30. That implies a potential double-digit capital growth return over the next 12 months.

It’s a retailer of a wide range of grooming products for men and women. The ASX share is also expanding into other personal care categories like oral care.

The first half of FY22 suffered from store closures, leading to a profit decline of 8.6%, though sales actually increased by 2.8%. Online sales grew 37.2% to $51.6 million. The interim dividend from the cheap ASX share was grown by 40.6% to 4.5 cents per share.

The Shaver Shop share price is valued at 9x FY22’s estimated earnings with a projected grossed-up dividend yield of 11% according to Ord Minnett.

In the second half to date to 17 February 2022, the total sales were up 6.2% thanks to more online sales. Management says that the business is in a “very strong” position. Shaver Shop says that it’s the market leader across ANZ in the growing personal care and grooming segment. It benefits from exclusive access to many of the latest new product launches.

New customers, who shopped during COVID-19, can be converted into loyal, repeat customers that shop with all their personal grooming needs.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts business with a number of different brands such as Burson, Autobarn, Tuckline, ABS and Midas.

The Bapcor share price has seen a lot of volatility over the last two years. Cars are back on the road again, but it is down 20% after telling the market that its boss, Darryl Abotomey, was leaving the business earlier than expected after falling out with the board.

However, the cheap ASX share is still focused on growth. It wants to grow its overall network of locations, adding hundreds of outlets over the next few years. The ASX share also has growth aspirations for south east Asia – it has a small Burson network, but it also owns 25% of Tye Soon – a business with operations in multiple Asian countries.

The second half of FY22 is expected to be stronger year on year with no more lockdowns and Omicron impacts softening.

Bapcor is also aiming to be more efficient and sell more products online.

It’s currently rated as a buy by UBS, with a price target of $8.10. It values the Bapcor share price at 17x FY22’s estimated earnings and a grossed-up dividend yield of 4.1%.

The post 2 cheap ASX shares for value investors to buy in March 2022: experts appeared first on The Motley Fool Australia.

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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 has recommended Bapcor. 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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