Day: 23 May 2022

The Invictus Energy Ltd (ASX: IVZ) share price is having a woeful day following the company’s latest release.

At the time of writing, the oil and gas exploration company’s shares are down 12% to 24.2 cents apiece.

Let’s take a closer look and see what Invictus updated the ASX market with today.

Invictus completes $12 million placement

Investors are scrambling to sell Invictus shares after details of an impending share dilution from the company.

According to its statement, Invictus advised it has received firm commitments to raise $12 million through a private placement. The offer was presented to new and existing sophisticated and institutional investors.

Under the placement, Invictus will issue roughly 60 million fully-paid ordinary shares at an issue price of 20 cents apiece. This represents a 27.3% discount to the last closing price of 24.5 cents on 18 May.

In addition, placement participants will receive a free option on a one-for-two basis, at a strike price of 35 cents. These options will have a one-year expiry date.

The company will seek to have the options listed on ASX and approval for director participation. This will be held at the extraordinary general meeting (EGM) on 30 June.

The proceeds of the placement will be used towards Invictus’ upcoming drilling campaign at the Cabora Bassa Project in Zimbabwe.

The company stated that the first well in the campaign will target the Mukuyu prospect, which has been independently estimated to contain 8.2 trillion cubic feet and 247 million barrels of conventional gas condensate.

Invictus managing director Scott Macmillan commented:

We are pleased to welcome new institutional investors onto our share register at an exciting time for the Company as we prepare to embark on our maiden drilling campaign in Zimbabwe.

Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the Company is well funded for the Mukuyu-1 well.

Drilling of the Mukuyu-1 well, which will test Africa’s largest undrilled onshore oil and gas prospect, remains on track to commence in July.

Invictus share price summary

Regardless of today’s decline, the Invictus share price has zipped almost 60% higher in the past 12 months.

Year to date, the company’s shares are up 96%.

Invictus has a market capitalisation of approximately $165 million, with around 674.5 million shares on issue.

The post The Invictus share price just tanked 12%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/s2GaSeP

The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 1.23% today, but one ASX mining share is storming much further ahead.

The Discovery Alaska Ltd (ASX: DAF) share price is soaring 44.6% to 9.4 cents at the time of writing. In earlier trade, the company’s share price surged nearly 62% to 10.5 cents.

So what is causing this ASX mining share to explode today?

Lithium discovery

Discovery Alaska shares are surging after the company confirmed lithium minerals at the Coal Creek prospect within the company’s Chulitna Project.

Analyser readings showed lithium mineralisation at twelve historical drill holes at the site. The company used a SciAps Z-901 LIBS handheld analyser to reveal lithium across broad zones within the drill holes.

This follows initial news on 29 May that lithium was identified at the site. The company has 100% ownership of the project, located in the US state of Alaska.

Discovery Alaska will now conduct laboratory analysis testing of the drill core with the aim of outlining a JORC lithium resource.

Commenting on the news, Discovery director Jerko Zuvela said:

The company is excited to progress lithium exploration works at our Coal Creek prospect with positive scanning results indicating broad zones of lithium in all drill holes tested thus far.

We look forward to realising the lithium potential at our Coal Creek prospect and
advancing works toward delineating a maiden JORC resource.

Share price snapshot

The Discovery Alaska share price has soared 102% in the past year, while the micro-cap is exploding 206% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 2% in the past year.

Discovery Alaska has a market capitalisation of about $21 million based on today’s share price.

The post Guess which ASX mining share leapt 60% this morning on a new lithium discovery? appeared first on The Motley Fool Australia.

More reading

• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/IQv1tLF

The Openpay Group Ltd (ASX: OPY) share price has returned from its trading halt and tumbled notably lower.

In afternoon trade, the buy now pay later (BNPL) provider’s share are down 13% to a new low of 25.5 cents.

This means the Openpay share price has now lost two-thirds of its value in 2022.

Why is the Openpay share price sinking?

The Openpay share price is under pressure today after the company completed a placement of shares to sophisticated and institutional investors.

According to the release, Openpay has raised $18.25 million from the placement at an 18.6% discount of 24 cents per new share.

The release explains that Openpay received cornerstone support from existing and new shareholders to invest $16 million under the placement. Though, a portion of this will be subject to shareholder approval.

Management intends to use the capital raised to accelerate its pathway to profitability in the ANZ market. This is expected to be achieved by June 2023.

This will involve acquiring new merchants and customers at scale in the ANZ market, increasing customer retention, making platform and technology enhancements, and contributing to its growing receivables book.

Supporting the ‘engine room of the company’

Openpay’s ANZ CEO, Dion Appel, notes that this capital raising will support the company’s key driver of growth.

Openpay ANZ is accelerating its pathway to profitability through sustainable growth, market-leading margins and business simplification. Australia is currently the engine room of the Company and we remain focused on delivering this plan. We appreciate the strong and continued support shown by existing shareholders, and new investors for the Placement and are pleased to welcome eligible shareholders to participate in the SPP on the same terms as the Placement to further accelerate our strategy.

Openpay will now seek to raise a further $2 million via a share purchase plan. This will be undertaken at 24 cents per share, which is the same price as the placement.

The post Why the Openpay share price is sinking 13% to a new low today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/hMRUuWq

ASX lithium shares have been some of the best performers on the exchange this year.

With lithium demand booming amid a surge in global electric vehicle production, many resource explorers are branching out from their traditional metals and turning their attention to uncovering the light-weight, highly-conductive metal.

And that’s seeing this small ASX gold share transforming into an ASX lithium share.

A nascent ASX lithium share

You may not be familiar with Ragusa Minerals Limited (ASX: RAS). The microcap resource explorer that’s been primarily focused on gold has a market cap of just $12 million. But it has big ambitions.

At time of writing the Ragusa share price is up 23% to 9.8 cents per share after earlier posting gains of 30%.

The aspiring ASX lithium share entered a trading halt on Friday pending an announcement released before market open today.

According to the release, Ragusa has entered into a tenement farm-in agreement with May Drilling for the exclusive right to earn an initial 90% interest in a tract of lithium prospective tenements. Ragusa maintains the option to increase its interest to 100%.

The tenements are located in the Litchfield Pegmatite Belt, located in the Northern Territory. Covering some 570 square kilometres, the area is in close proximity to Core Lithium Ltd‘s (ASX: CXO) Finnis Project.

What did management say?

Commenting on the agreement that could see the company transform into an ASX lithium share, Ragusa chair, Jerko Zuvela said:

The company has secured extremely strategic and highly sought-after lithium prospective tenements in the centre of a well-renowned lithium district. This is a significant opportunity to combine Ragusa’s existing NT lithium projects to create a combined ‘supergroup’ project area comparable to neighbours Core Lithium and Lithium Plus, and utilise our exploration and development experience to rapidly progress our NT Lithium Project in a Tier 1 jurisdiction close to major infrastructure.

With four currently granted tenements and considerable historic works to reference, Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district.

The post Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/94mqCfH

The Fortescue Metals Group Limited (ASX: FMG) share price is among the S&P/ASX 200 Index (ASX: XJO)’s top performers on Monday despite no news from the company.

The iron ore giant’s stock looks to be enjoying a boost from the commodity’s rising price.

At the time of writing, the Fortescue share price is $20.80, 3.23% higher than its previous close.

For context, the ASX 200 is up just 0.08% right now.

Let’s take a look at what might be helping bolster the ASX materials giant on Monday.

What’s boosting the Fortescue share price today?

The Fortescue share price is outperforming today. Its gains come after iron ore futures surged 2.5% to US$134.36 a tonne on Friday.

The steel-making ingredient’s value rose amid news China cut its benchmark reference rate for mortgages, according to CommSec.

And Fortescue’s stock isn’t alone in the green on Monday. The S&P/ASX 200 Materials Index (ASX: XMJ) is the index’s best performing sector today. It has gained 1.2% at the time of writing.

Fortescue is leading the sector’s rise. Meanwhile, shares in Champion Iron Ltd (ASX: CIA) and James Hardie Industries (ASX: JHX) are hot on its tail, having lifted 2.4% and 2.22% respectively.

At the same time, the share prices of fellow iron ore giants Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) are recording gains of 2.22% and 1.82% respectively.

The Fortescue share price has outperformed the ASX 200 to gain 8.38% over the course of 2022 so far. Though it has slipped around 6% since this time last year.

The post Here’s why the Fortescue share price is surging on Monday appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 mining shares responding to the election outcome?
• 3 reasons why I plan to own my Fortescue shares for the long term
• How soon can Fortescue start making money from green hydrogen?
• What’s the outlook for Fortescue shares with Twiggy at the helm?
• Fortescue share price pushes higher following leadership changes

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/OM52XRZ

It hasn’t been a fantastic start to the trading week this Monday for the Telstra Corporation Ltd (ASX: TLS) share price.

Telstra shares are today trading at $3.94 each, down 0.38% for the day so far. That’s in stark contrast to the S&P/ASX 200 Index (ASX: XJO), which remains in the green today, despite having lost much of its earlier lead.

But Telstra shares haven’t had the best week either. The telco is trailing the ASX 200’s performance over the past five trading days as well. So what’s going on with Telstra? Why have Telstra shares been lagging the broader markets?

Well, it’s not entirely clear. But last week’s news regarding Telstra could have played a role.

Telstra shares stagnate amid sluggish market share news

As we covered on Thursday, there was some bad news out regarding Telstra’s share of the national broadband network (NBN) market. The Australian Competition and Consumer Commission (ACCC) revealed that both Telstra and its fellow internet service provider TPG Telecom Ltd (ASX: TPG) lost market share over the three months to 31 March 2022. Over these three months, Telstra, TPG and the Singtel-owned Optus all lost 0.3% of market share in the provision of NBN services.

Taking this share was a bevvy of smaller telco providers, spearheaded by Aussie Broadband Ltd (ASX: ABB). Aussie Broadband managed to boost its market share by a substantial 0.5%. However, this still leaves the telco aspirant with a total market share of 6.1%. Even though Telstra, TPG and Optus lost some skin, they still command a market share of 43.7%, 23.3% and 13.9% respectively.

Even so, this news wasn’t particularly good for Telstra and its larger rivals. Perhaps it’s no wonder that investors have gone lukewarm on the telco over the past few trading days.

The Telstra share price is now down 6.4% in 2022 so far. Even so, it remains up a pleasing 15.16% over the past 12 months. At the current Telstra share price, this ASX 200 telco has a market capitalisation of $45.83 billion. This gives Telstra shares a trailing dividend yield of 4.05%.

The post Why has the Telstra share price lagged the ASX 200 over the past week? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• These 3 shares are topping the ASX 200 volume charts on Thursday
• These ASX 200 companies just lost market share to a small-cap rival
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Is the Telstra share price cheap compared to other ASX 200 shares?

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OM3LDyx

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The valuations of growth stocks have been tested lately in the wake of unprecedented inflation levels, hiked interest rates, and the economic impacts of Russia’s invasion of Ukraine. The Nasdaq Composite has descended 28% year to date, and the Cboe Volatility Index — commonly referred to as Wall Street’s fear gauge — has soared nearly 80% in the same time frame, highlighting investors’ uneasiness at the present moment. 

Tesla (NASDAQ: TSLA), one of the most polarizing stocks on Wall Street, has joined the sell-off by shedding 41% of its value since the start of the year. The EV leader’s market capitalization eclipsed $1 trillion in late 2021, but the stock has since backpedaled, settling at a $738 billion market cap today. Will the Elon Musk-led company return to the $1 trillion zone, and if so, when? While macro headwinds and Musk’s dramatic potential takeover of Twitter surely haven’t helped Tesla, the EV giant’s business continues to make headway in a grand fashion.

On that note, let’s discuss two reasons to consider buying Tesla stock today and one justification for holding back.

Buy: Business is booming

In a quarter rife with macroeconomic challenges and COVID-related shutdowns in its Shanghai factory, Tesla delivered big for its shareholders. The company raked in total sales of $18.8 billion, growing 81% year over year and beating Wall Street estimates by 5%.

Likewise, earnings per share (EPS) finished at $3.22, climbing 246% and smashing consensus forecasts by a whopping 42%. The EV commander produced 305,407 vehicles and completed 310,048 deliveries, adding to the already-strong quarter with respective increases of 69% and 68%. 

Per management’s guidance, investors can expect the company to achieve 50% average annual growth in vehicle deliveries over a multi-year time horizon. For the full fiscal year 2022, Wall Street analysts are projecting the company’s top line to surge 61% year over year to $86.3 billion and EPS to mount 81%, reaching $12.31.

Given that Tesla’s factories have been operating below capacity for several quarters and will continue to do so throughout 2022, the company’s growth amid such setbacks is nothing short of remarkable. Its robust balance sheet reveals a 660% year-over-year increase in free cash flow generation, rising to $2.2 billion in the first quarter of 2022 from $293 million in the year-ago period. All told, the EV juggernaut is in an advantageous position to expand its operations in the years to follow. 

Buy: Massive industry potential

Tesla brings a lot of mainstream attention to the EV market, but don’t be fooled: the industry is still in its early innings. As of today, there are more than 10 million electric vehicles on the road, but that represents just 1% of global car stock. By 2030, it’s projected that there will be 300 million electric cars on the road, a 2,900% upsurge from existing levels. It’s also expected that EVs will account for 60% of new car sales by then, a drastic increase from 5% in 2020.

On a broader scale, the global EV market is set to register a compound annual growth rate of 25% through 2030, indicating a market size of nearly $1 trillion by that time. While competition is heating up tremendously, Tesla is well-positioned to remain a winner in the years to come. In 2021, the company was responsible for almost 70% of registered EVs in the U.S. and it reigns over nearly 15% of the global EV market. In other words, it’s not Tesla that investors should worry about when considering increased competition in the industry.

Stay away: Steep valuation

At face value, Tesla’s valuation appears outrageous. The stock is trading at 95.8 times earnings today, indicating a lofty valuation in and of itself. Comparing the EV giant’s price-to-earnings (P/E) multiple to that of other automobile manufacturers paints an even clearer picture.

TSLA PE Ratio data by YCharts

Competitors Ford, General Motors, and Toyota carry price-to-earnings multiples of 4.5, 6, and 8.5, respectively, serving steep discounts compared to their EV peer. Whether Tesla warrants a premium valuation is a classic debate; however, there’s no denying that the stock is richly priced today.

Should you buy Tesla?

Tesla is a great company, but its latest pullback has grabbed my attention. That said, it’s still trading at a steep valuation and would need to suffer a far greater correction to be considered cheap. Although Tesla continues to make fantastic strides on the financial front, I’d hold off on buying the stock for now. Not only are there more actionable opportunities available on the market today, but there is also a good chance that macro headwinds and Twitter-related drama drag this stock down further in the coming quarters.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock fell again today
• Why Tesla stock got dented today
• Why Tesla stock is falling again today
• The US stock market just took a major dive. What’s going on?
• Why Tesla stock dropped this morning

Luke Meindl has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Twitter. 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 Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/k9rVR4D

It’s a good day for the Santos Ltd (ASX: STO) share price. It’s storming higher despite no news having been released by the company.

However, oil prices are on the up-and-up and a broker has tipped a 22% upside for the company’s stock.

At the time of writing, the Santos share price is $8.23, 1.86% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.22% while the S&P/ASX 200 Energy Index (ASX: XEJ) outperforms.

Let’s take a closer look at what might be going on with the oil and gas giant’s shares on Monday.

Santos share price rallies into the week

The Santos share price is in the green today, potentially driven by higher oil prices.

Global oil prices lifted on Friday amid expectations the European Union might ban Russian oil and the lockdown in Shanghai could end on 1 June, according to CommSec.

Brent crude oil price increased 0.5% to US$112.55 a barrel on Friday while the US Nymex crude oil price rose 0.9% to reach US$113.23 a barrel.

That’s likely also helping to boost the energy sector 0.85% higher today. The sector is the ASX 200’s second best performer on Monday and one of just two outperforming the broader market right now.

It’s being led by the Paladin Energy Ltd (ASX: PDN) share price’s 2.38% gain.

Santos’ stock is the index’s second best performer today while that of Woodside Petroleum Limited (ASX: WPL) is coming in third.

Finally, the Santos share price might be being lifted by news of a positive broker note.

As my colleague James Mickleboro reported earlier, Morgans slapped Santos’ shares with a $10 target and an add rating. That represents a 22% upside on its current level.

The Santos share price has gained 24.5% in 2022. It’s also 22.1% higher than it was this time last year.

The post Why is the Santos share price leaping higher on Monday? appeared first on The Motley Fool Australia.

More reading

• 2 ASX energy shares that brokers rate as buys for exposure to sky high oil prices
• 5 things to watch on the ASX 200 on Monday
• Here are the 3 most traded ASX 200 shares on Friday
• New or old energy: Have oil producers bested ASX lithium shares?
• 5 things to watch on the ASX 200 on Thursday

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/gMnIesj

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is heading south today.

At the time of writing, the bank’s shares are 0.63% lower to $25.34.

For context, the S&P/ASX 200 Financials (ASX: XFJ) sector is also slightly in reverse, down 0.68% to 6,506.2 points.

A mixed session on Wall Street on Friday night has led the broader ASX market to trade sideways.

ANZ appoints new board member

The ANZ share price is hovering in negative territory despite the company’s latest announcement to bolster its board.

In its release, ANZ advised that it has appointed experienced global business and technology executive Jeff Smith to its board.

Mr Smith will take up the role of non-executive director from 1 August 2022, subject to meeting regulatory requirements.

ANZ highlighted Mr Smith’s wealth of experience in which he served as chief information officer at several organisations. This includes IBM (NYSE: IBM), Suncorp Group Ltd (ASX: SUN), and Telstra Corp Ltd (ASX: TLS).

Over the last five years, Mr Smith has been chief operating officer of Florida-based World Fuel Services. As such, he will be stepping down from that position at the end of the calendar year.

Mr Smith’s other appointments include being a non-executive director of cloud security company Sonrai Security Inc. He is also an advisor to the boards of Zoom Video Communications Inc and Box Inc.

Notably, Mr Smith was previously a member of ANZ’s International Technology and Digital Business Advisory Panel until 2019.

ANZ chair Paul O’Sullivan touched on the new appointment:

Jeff’s vast experience with technology and executive management will complement the Board and I am confident he will provide valuable service to both the organisation and to ANZ’s shareholders as we continue through a period of significant transformation.

Moving forward, Mr Smith will split his time between Australia and the United States.

He will stand for election as a director at ANZ’s annual general meeting on 15 December 2022.

ANZ share price review

Throughout the year, the ANZ share price has continued to move in circles, reflecting a 7.9% loss for the period.

More recently, investor fears regarding a global economic slowdown have hit the company’s shares hard. In the past month, ANZ shares are down 8.8%.

The company commands a market capitalisation of around $71.24 billion, making it the sixth largest company on the ASX.

The post ANZ shares backtrack despite the bank bolstering its board appeared first on The Motley Fool Australia.

More reading

• Has the ANZ dividend been growing?
• 3 cheap ASX shares set to boom with higher interest rates: Wilsons
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?
• Experts name 2 ASX dividend shares to buy with big fully franked yields
• Already down 7% in 2022, is the ANZ share price cheap?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Qx8S7WE

The Woodside Petroleum Ltd (ASX: WPL) share price is off to a good start this week.

The S&P/ASX 200 Index (ASX: XJO) energy giant closed on Friday at $28.77 per share and is currently trading for $29.30, up 1.84%.

That compares to a slim 0.09% gain for the ASX 200 at this same time.

So, why is the Woodside share price outperforming?

Oil edges higher and BHP merger in the spotlight

ASX energy shares, as you’d expect, tend to rise in fall in line with energy costs.

With Brent crude oil prices notching up 1% to just over US$113 per barrel, the Woodside share price is a likely beneficiary.

Then there’s the pending merger with BHP Group Ltd‘s (ASX: BHP) petroleum assets. Shareholders approved the merger last week.

Leading broker Morgans sees a lot of upside from that merger.

According to Morgans:

We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP).

From an economic standpoint we think WPL is getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with [earnings before interest, tax, depreciation and amortisation] EBITDA of US$4.7bn pa and growth options.

Morgans has a $33.60 target for the Woodside share price. That is some 15% higher than the current share price.

Woodside share price snap shot

The Woodside share price has gained 33% so far in 2022. That compares to a year-to-date loss of around 4% posted by the ASX 200.

Woodside pays a 6.5% trailing dividend yield, fully franked.

The post Why is the Woodside share price having such a strong start to the week? appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 mining shares responding to the election outcome?
• 2 ASX energy shares that brokers rate as buys for exposure to sky high oil prices
• 5 things to watch on the ASX 200 on Monday
• Down 15% since early March, is the Rio Tinto share price an ASX mining buy?
• Everything you need to know about the upcoming BHP dividend

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/eNV8gaY