Day: March 11, 2022

Here’s why the Magellan (ASX:MFG) share price fell 7% today and could keep falling

Humble fund manager of ASX shares with head in hands in front of lap top computer

Humble fund manager of ASX shares with head in hands in front of lap top computerHumble fund manager of ASX shares with head in hands in front of lap top computer

It was another disappointing day of trade for the Magellan Financial Group Ltd (ASX: MFG) share price on Friday.

The struggling fund manager’s shares ended the day almost 7% lower at $14.20. This latest decline means the Magellan share price has now lost over a third of its value in just 2022.

And if we were to go back and compare things to this time last year, the company’s shares are down by a whopping two-thirds.

Why did the Magellan share price tumbling today?

Investors were selling down the Magellan share price on Friday following the release of an update on the performance of flagship Global Fund.

As you might have guessed from the share price reaction, Magellan’s team did the not deliver a strong investment performance during the month of February. In fact, the Global Fund lost 7.2% during the month, which compares unfavourably yet again to a 5.4% decline by its benchmark.

This means that on a 12-month basis the flagship fund is now trailing its benchmark by a sizeable 9.1%.

Investors appear concerned that this underperformance could continue to weigh on its funds under management (FUM). Particularly given its high management fees of 1.35%.

As a comparison, rival GQG Partners Inc (ASX: GQG) charges management fees of just 0.49% on average for its funds. Furthermore, its global equity strategy returned -0.57% net of fees during February, much better than Magellan’s 7.2% decline.

Is this a buying opportunity?

The team at UBS don’t believe the weakness in the Magellan share price is a buying opportunity. Earlier this week the broker put a sell rating and $13.50 price target on the fund manager’s shares.

Unfortunately, its analysts now have concerns with its infrastructure FUM. UBS warned that there is an emerging risk that these FUM will be next to flow out to other fund managers. This follows a recent investment underperformance from this side of the business.

The post Here’s why the Magellan (ASX:MFG) share price fell 7% today and could keep falling appeared first on The Motley Fool Australia.

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

Before you consider Magellan, 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 Magellan 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 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 Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait?

piggy bank at end of winding roadpiggy bank at end of winding roadpiggy bank at end of winding road

The Transurban Group (ASX: TCL) share price has travelled sideways over the course of the last few years.

COVID-19 headwinds impacted traffic levels as state government-mandated restrictions were enforced Australia-wide. This led Transurban shares to falter while management focused on navigating the business through the pandemic.

Below, we calculate if the dividends have been worth the wait if a shareholder made an investment 3 years ago.

What if you had invested $10,000 in Transurban shares 3 years ago?

If you had invested $10,000 in Transurban shares on this day 3 years ago, you would have bought them for around $12.53 each. This would have given you approximately 798 shares without factoring in any dividend reinvestments over the years.

Fast-forward to today, the current Transurban share price is $12.73. This means those 798 shares would now be worth around $10,158.54 (798 shares x $12.73). When considering percentage terms, this implies an upside of 1.59%.

In contrast, the ASX 200 has returned a yearly average of 4.75% to shareholders in the past 3 years.

And the dividends?

Over the course of the last 3 years, Transurban has made a total of 6 bi-annual dividend payments from June 2019 to 2022.

Adding those 6 dividends payments gives us an amount of $1.285 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $1,025.43 (798 shares x $1.285).

When putting both the initial investment gains and dividend distribution, an investor would have made roughly $11,183.97.

In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $11,493.76.

Transurban share price snapshot

Over the past 12 months, the Transurban share price has shed around 1%, driven by poor trading conditions.

Its shares hit a 52-week low of $12.03 in January, before finding support around the mid $12 mark.

Based on the current share price, Transurban commands a market capitalisation of around $39.09 billion.

The post The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait? appeared first on The Motley Fool Australia.

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

Before you consider Transurban, 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 Transurban 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 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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Here’s why the Neometals (ASX:NMT) share price surged 6% on Friday

Rising rocket with dollar signs.Rising rocket with dollar signs.Rising rocket with dollar signs.

Shares in Neometals Ltd (ASX: NMT) charged higher on Friday to finish trading at 5.76% in the green at $1.47.

Investors appeared to be bidding shares up today amid the release of Neometals’ earnings results for the half-year ended 31 December 2021, which was released yesterday.

Whilst the release was deemed to be non-sensitive, it’s still more than worth a look to check in on the company’s progress.

What happened this year for Neometals?

  • Loss for the period from continuing operations of $2.86 million, down from $4.01 million the year prior
  • Profit from discontinued operations of $12.812 million for the period
  • Profit for the period of $9.943 million, up substantially from a loss of $4.03 million last year
  • Earnings per share (EPS) of $1.81 gained from a loss per share of 74 cents compared to FY20
  • Cash and equivalents of $68.57 million at the end of the period

What else happened in this period for Neometals?

During the period, Neometals entered into a joint venture (JV) with SMS group GmbH. The 50:50 JV is called Primobius GmbH and was incorporated to “co-fund and complete final stage evaluation activities and to consider
commercialisation of the [lithium-ion battery] LIB recycling technology”, the company says.

“During the period, Primobius made strong progress towards technical and commercial validation of its sustainable LIB Recycling Technology”, it added.

This progress includes formation of a demonstration plant to showcase results to partners and advancing both Class 3 engineering and feasibility studies at the site.

Primobius has also exclusively licenced its LIB recycling technology to Stelco SPV. The agreement will allow Stelco to advance commercial sourcing agreements and advance its construction and operating permit process, per the release.

Neometals is also exploring opportunities to commercially apply its proprietary “vanadium recovery processing flowsheet on stockpiles of vanadium bearing steel manufacturing by-product”.

To date, it is pursuing two partnerships in Scandinavia, namely in Finland and Sweden.

What’s next for Neometals?

Neometals say that in the coming period, it aims to update its SysCAD model for specific brine feed at the Bondalti project. It will also engage contractors to perform pilot tests at the site.

With respect to the demonstration site and upcoming studies, Neometals says both of these remain on schedule for completion in June 2022.

The company did not provide any formal earnings or financial guidance for the coming period.

Neometals share price snapshot

In the last 12 months, the Neometals share price has soared over 336% and is up another 3% this year to date.

Over the previous month, shares have held gains and are up around 1%, but have fallen 8% in the red this week.

The post Here’s why the Neometals (ASX:NMT) share price surged 6% on Friday appeared first on The Motley Fool Australia.

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

Before you consider Neometals, 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 Neometals 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 Zach Bristow 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 are the top 10 ASX shares today

Top 10 asx shares todayTop 10 asx shares todayTop 10 asx shares today

Today, the S&P/ASX 200 Index (ASX: XJO) took a step backward after the US posted its highest rate of inflation in 40 years last night. At the end of the session, the benchmark index finished 0.94% lower at 7,063.6 points.

While there were plenty of fallers today, the market offered up a few green beacons to be grateful for. These were in the form of energy and mining shares — our typical ‘risk off’ names on the ASX boards. As you might expect, the shares that performed the worst as the inflationary thematic stepped up were tech and consumer discretionary.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, AVZ Minerals Ltd (ASX: AVZ) was the biggest gainer today. Shares in the lithium developer took a 7.19% ride to the upside during Friday’s session despite there being no announcements from the company. Find out more about AVZ Minerals here.

The next biggest gaining ASX share today was yet another lithium company, Allkem Ltd (ASX: AKE). Just like AVZ, Allkem (formerly Galaxy Resources and Orocobre) did not post any new information today. However, the commodity space has been rife with enthusiasm as future supply is shrouded in uncertainty. Uncover the latest Allkem details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company Share price Price change
AVZ Minerals Ltd (ASX: AVZ) $0.895 7.19%
Allkem Ltd (ASX: AKE) $10.59 4.96%
Champion Iron Ltd (ASX: CIA) $6.85 4.58%
GQG Partners Inc (ASX: GQG) $1.275 3.66%
Alumina Ltd (ASX: AWC) $2.03 3.05%
South32 Ltd (ASX: S32) $4.89 2.95%
Mineral Resources Ltd (ASX: MIN) $46.43 2.74%
Meridian Energy Ltd (ASX: MEZ) $4.91 2.72%
Coronado Global Resources Inc (ASX: CRN) $2.01 2.55%
Incitec Pivot Ltd (ASX: IPL) $3.70 2.49%
Data as at 4:00pm AEDT

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today 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 Mitchell Lawler 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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