Day: 26 May 2022

If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here’s what you need to know about these dividend shares:

Adairs Ltd (ASX: ADH)

The first ASX dividend share for investors to look at is leading furniture and homewares retailer, Adairs.

Its shares hit a new 52-week low on Thursday, which means they are now down 45% since the start of the year.

While this is disappointing, the team at Morgans appear to believe it could be a buying opportunity. Particularly given its belief that the introduction of Adairs’ new national distribution centre and the newly acquired Focus on Furniture business will “underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple.”

Its analysts currently have an add rating and $3.50 price target on the company’s shares. Based on the current Adairs share price of $2.24, this implies significant upside for investors.

But it gets better, with the broker forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. If Adairs does indeed pay these dividends, it will mean yields of 8.4% and 11.6%, respectively, over the next couple of years.

Elders Ltd (ASX: ELD)

Another ASX dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the Australia/New Zealand region.

Unlike Adairs, Elders’ shares have been performing positively this year. This has been underpinned by its strong performance in FY 2022, which saw Elders report an 80% increase in first-half EBIT to $132.8 million last week.

The team at Goldman Sachs was impressed. In response, the broker put a buy rating and $21.00 price target on its shares. It likes Elders due to its “strong track record; good industry structure; potential for positive earnings surprise; and an attractive valuation.”

In addition, the broker expects dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $13.38, this implies attractive yields of 3.7% and 4%, respectively.

The post Experts name 2 top ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• This ASX 200 company just hiked its latest dividend by almost 70%, here’s what you need to know
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares starting the week with new 52-week highs
• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS 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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If you’re interested in adding some growth shares to your portfolio, then the two listed below could be worth a look.

These ASX growth shares have been named as buys and tipped to climb materially higher from current levels. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first growth share for investors to look at is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games. The latter includes the hugely popular Raid: Shadow Legends, which is generating significant recurring revenues for its Pixel United business. In addition, the company is looking to win a big share of the emerging real money gaming market.

The team at Citi is very positive on Aristocrat and believes it “represents a compelling long-term growth story.” It currently has a buy rating and $41.00 price target on the company’s shares. Based on the current Aristocrat share price of $33.95, this implies potential upside of 21% for investors over the next 12 months.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share that could have room to race higher is Lovisa. It is a fast-fashion jewellery retailer which has been growing at a solid for over a decade. The good news is that due to the popularity of its offering and its global expansion plans, the company has been tipped to continue this trend long into the future.

Morgans is very positive on Lovisa and believes the company could “prove to be one of the biggest success stories in Australian retail.” Its analysts have an add rating and $24.00 price target on its shares. Based on the current Lovisa share price of $14.51, this implies potential upside of 65% for investors over the next 12 months.

The post Analysts name 2 ASX growth shares to buy with major upside potential appeared first on The Motley Fool Australia.

More reading

• Looking to secure the Aristocrat biggest-ever dividend? Here’s what you need to do
• 3 ASX growth shares brokers rate as buys right now
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Buy these ASX growth shares in May: experts
• Top brokers name 3 ASX shares to buy next week

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 Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Today, the S&P/ASX 200 Index (ASX: XJO) struggled to find momentum as investors fled equities across nearly all sectors. At the end of the session, the benchmark index finished 0.69% lower at 7,105.9 points.

The headlines continue to be dominated by disconcerting developments at a macro level. Today, it was a combination of economic growth warnings from China and the US Federal Reserve suggesting it will be raising rates at the next two meetings.

Almost in unison, 10 of the 11 sectors sunk into the red today amid suppressed sentiment. The only portion of the market to escape the crimson fate was tech shares, buoyed by a takeover bid for Appen Ltd (ASX: APX).

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, ALS Ltd (ASX: ALQ) was the biggest gainer today. Shares in the testing, inspection, and certification company jumped 6.08% after releasing solid full-year results yesterday. The team at Morgans released a note this morning giving the company an ‘add’ rating. Find out more about ALS here.

The next best performing ASX share across the market today was Lake Resources Ltd (ASX: LKE). The lithium exploration company lifted 2.82% despite not releasing any announcements. Although, strength was prevalent across lithium names today. Uncover the latest Lake Resources details here.

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

ASX-listed company	Share price	Price change
ALS Ltd (ASX: ALQ)	$12.74	6.08%
Lake Resources Ltd (ASX: LKE)	$1.46	2.82%
Pro Medicus Ltd (ASX: PME)	$40.66	2.68%
Wisetech Global Ltd (ASX: WTC)	$40.80	2.36%
Virgin Money Uk Plc (ASX: VUK)	$2.66	2.31%
Ansell Ltd (ASX: ANN)	$27.36	2.01%
REA Group Ltd (ASX: REA)	$110.97	1.97%
Infratil Ltd (ASX: IFT)	$7.35	1.80%
Chorus Ltd (ASX: CNU)	$6.70	1.67%
Core Lithium Ltd (ASX: CXO)	$1.28	1.59%

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.

More reading

• How do ASX shares typically perform following a demerger?
• Why is the Zip share price beating the ASX 200 today?
• The Lake Resources share price has plummeted 30% in a month. What’s going on?
• Why ALS, Appen, Objective Corp, and WiseTech shares are pushing higher
• Are newly-listed Lottery Corp shares worth buying? ASX brokers weigh in

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia has recommended Ansell Ltd. and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Global Lithium Resources Ltd (ASX: GL1) share price finished in the green today.

The company’s shares climbed 2.55% to finish the day at $1.61. In contrast, the  S&P/ASX 200 Index (ASX: XJO) fell 0.69% today, while the S&P/ASX 200 Materials Index (ASX: XMJ) slipped 0.96%.

Let’s take a look at why Global Lithium had such a good day.

Drilling on schedule

The Global Lithium share price took off after the company announced drilling has commenced at the Manna lithium project. The project is located 100km east of Kalgoorlie in Western Australia. The company acquired an 80% stake in the project in late 2021.

Profile Drilling Services has been engaged to conduct the reverse circulation (RC) drilling program to 20,000m depths.

Global Lithium aims to provide a mineral resource update at the project after the drilling program.

The company said it will update the market further when initial drilling results are at hand.

Commenting on the news, head of Geology Stuart Peterson said:

We are pleased to announce that the company has commenced active exploration activities at the Manna Lithium Project, marking an important milestone for GL1.

We are excited to now be engaged in large scale exploration programs at both of our key projects in the tier 1 lithium and mining jurisdiction of Western Australia.

Global Lithium plans to conduct metallurgical test work, earmarked for completion in the fourth quarter of this year.

The lithium exploration company is also exploring the Marble Bar lithium project in the Pilbara.

Global Lithium share price snapshot

The Global Lithium share price has exploded by 531% in the past 12 months, while it is surging 69% year to date.

In the past month, it has fallen 23%, while it is down 8.5% in the past week.

For perspective, the ASX 200 has returned 0.19% over the past year.

The company has a market capitalisation of about $255.5 million based on its current share price.

The post Here’s why the Global Lithium share price jumped higher today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Global Lithium share price is soaring 7% today

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.

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Experts have chosen some ASX dividend shares to rate as buys, which are expected to pay very large dividends to investors.

Companies aren’t rated as buys just because they are expected to pay large dividends. If the analyst thinks the valuation is good then it will be rated as a buy.

A combination of a large dividend and share price rises could be attractive.

GQG Partners Inc (ASX: GQG)

GQG Partners is a large fund manager which is based in the US but is listed in Australia.

The fund manager is rated as a buy by the broker Morgans. The price target is $2.15, which suggests a possible upside of around 34% on today’s closing price of $1.60.

Morgans thinks the current volatility that markets are seeing could be a short-term headwind. However, it’s the broker’s pick in the sector because of the ongoing fund inflows.

According to Morgans, GQG is going to pay a dividend yield of 7.4% in FY22 and 8% in FY23.

The company is committed to paying a high dividend payout ratio. It recently declared a quarterly dividend that represented approximately 90% of the company’s estimated first-quarter distributable earnings.

In its latest quarterly update, it said for the three months to March 2022, it experienced net inflows of US$3.4 billion despite “an extremely challenging macro environment”.

The ASX dividend share has commented that it’s seeing business momentum across multiple geographies and channels, including in the Australian and Canadian retail channels.

Nick Scali Limited (ASX: NCK)

Nick Scali is an ASX dividend share that operates both Nick Scali stores and Plush Think-Sofas after an acquisition.

The business is rated as a buy by the broker Macquarie, with a price target of $12.70. That implies a potential upside of more than 40% from Thursday’s closing price of $8.79.

In terms of the potential dividends, Macquarie has predicted that Nick Scali is going to pay a grossed-up dividend yield of 8.8% in FY22 and 8.1% in FY23. The broker thinks that Nick Scali can continue to perform with its elevated order book. It’s expected to revert back to a more normal level.

The company recently gave an update to the market to show it’s planning to grow its total store network from 108 to 186 over the long term. It’s going to grow the Plush business, increase its online sales, potentially make more acquisitions, and try to increase profit margins.

The ASX dividend share sees an opportunity to grow Plush’s gross profit margin from the pre-integration historical range of 50% to 52%, up to a margin of at least 60% by widening the price range of products, leveraging the existing Nick Scali supplier base and delivery network, and other tactics.

In the FY22 second half to 30 April 2022, Nick Scali said it had seen total written sales growth of 36.5% year on year including Plush. Excluding Plush, written sales orders were in line with the prior corresponding period.

The outstanding order bank at the end of April remained “elevated”, up almost 90% on the previous year.

The post 2 ASX dividend shares with HUGE yields that experts rate as buys appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 300 retail shares in June?
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares enjoying a Wednesday windfall
• Here are the top 10 ASX shares today
• 2 ASX dividend shares with yields above 5%

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 Scott Phillips.

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ASX 200 investors love an ‘exciting’ share. Every year it seems, we have a new success story that investors are chasing for eye-watering returns and a big slice of the future.

This year has seen ASX lithium shares like Pilbara Minerals Ltd (ASX: PLS) or AVZ Minerals Ltd (ASX: AVZ) fill this role. In years gone by, it has been everything from Afterpay and Zip Co Ltd (ASX: ZIP) to WiseTech Global Ltd (ASX: WTC) and Pro Medicus Limited (ASX: PME).

But sometimes, the exciting shares don’t bring home the bacon when it comes to long-term returns. Just look at the current Zip share price to see this in action.

Sometimes, it’s the ‘boring’ companies that are the most exciting to hold over a long period of time. That’s especially the case during periods of high inflation. This is what we are starting to see across the global economy.

Inflation means the price of everything rises. So, for a company to succeed in this difficult environment, it must also have enough pricing power to pass these rising costs onto its customers. So let’s see which ‘boring’ companies this ASX fund manager is identifying as pricing-power winners today.

Fundie names 3 ASX 200 shares with pricing power

Michael Maughan of Tyndall Asset Management recently sat down with Livewire. There, he discussed the ASX shares with pricing power that he is looking at today.

Maughan identifies insurers as a good place to look. He reckons the “larger brands” such as Suncorp Group Ltd (ASX: SUN) and Insurance Australia Group Ltd (ASX: IAG) are the best stocks in this space.

Maughan said:

While repair costs are rising [with insurers], the pricing environment means they can be absorbed, and longer-term margin goals met. Whatever claims inflation the general insurers are seeing has already been priced into higher premiums, and we see potential for further increases.

This current inflationary environment has seen bond yields rise and expectations increase for significant cash rate rises. This means that the interest earnings on the premium float of insurers are rising and will add meaningfully to profits.

Maughan names supermarkets as having inflationary pricing power, too. He reckons Coles Group Ltd (ASX: COL) is worth a look.

Maughan said:

Coles… and Woolworths… are increasing prices with food inflation, and all of our channel checks suggest there is more of this to come as supplies continue to be disrupted by war, plagues, and floods. The evidence so far suggests that no one in the industry is sacrificing their margins to take market share… We expect supermarkets will continue to be key defensive havens as inflation accelerates.

So, these are the sectors that this fund manager is looking to in this brave new world of higher inflation. Pricing power is the key, and it seems that ‘boring’ shares like IAG, Suncorp, and Coles are the ASX shares that this expert reckons will do just fine.

The post Fundie reveals 3 ASX 200 shares with major pricing power to counter inflation appeared first on The Motley Fool Australia.

More reading

• How do ASX shares typically perform following a demerger?
• How might the IAG share price fare with another ‘catastrophe’?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• Here’s why the Coles share price is tumbling 5% 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 positions in and has recommended Pro Medicus Ltd., WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET, Insurance Australia Group Limited, Pro Medicus Ltd., and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The future could be tough for S&P/ASX 300 Index (ASX: XKO) retail shares. Morgan Stanley has reportedly warned Australia’s retail sector could face similar headwinds to those recently impacting US retail giants.

That could be dire for ASX 300 retail shares such as Nick Scali Limited (ASX: NCK), JB Hi-Fi Limited (ASX: JBH), City Chic Collective Ltd (ASX: CCX), and Eagers Automotive Ltd (ASX: APE).

Let’s take a closer look at why the financial services provider is reportedly wary of the retail sector.

Are ASX 300 retail shares about to face headwinds?

ASX 300 retail shares beware. Morgan Stanley warns Australia’s retail sector may face the same consumer trends that recently dinted some US retail monoliths.

Target Corporation (NYSE: TGT)’s stock tumbled nearly 25% on the back of a trading update last week. Within the release, the company announced fewer sales had forced it to discount merchandise to clear inventory.

That, and a similar story over at Walmart Inc (NYSE: WMT), helped spark a sell-off among US-listed retail shares.

And Morgan Stanley equity strategists believe such happenings could soon make it to Aussie shores, according to The Australian.

“US retail experience around wallet shift, cost pressures, and inventory overbuild raise questions for our market,” Morgan Stanley equity strategists, led by Chris Nicol, were quoted by the publication as saying.

They said US retailers were caught off guard as consumers moved away from durables and towards consumables due to rising inflation. That came alongside higher fuel prices, leading to greater costs for retailers.

“These effects are also building in Australia and are arguably not reflected in consensus sales and earnings estimates that in aggregate have only seen positive revision momentum during Covid boosts and reopening benefits.”

One red flag for Morgan Stanley is ASX 300 retail shares building up inventories due to supply chain challenges. This could backfire and lead to discounting.

City Chic was among the retailers deliberately bolstering its inventory last half. It was doing so in an attempt to ward off stock shortages during key sales periods.

Australia’s 13.6% savings rate will likely protect the sector for now. But Morgan Stanley is reportedly wary it might not translate to greater spending.

[M]uch of this savings drawdown is centred in recovering services categories, as well as absorbing headwinds from rising costs of living and higher interest rates.

Should consumers hedge future impact with caution in other categories this would also inhibit the level and pace of the ultimate drawdown in savings – with discretionary goods most vulnerable to spending adjustment.

The post What’s the outlook for ASX 300 retail shares in June? appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares to buy this month: experts
• Why are ASX 200 retail shares getting hammered on Thursday?
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Why is the JB Hi-Fi share price being slashed 8% today?
• Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping

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 recommended Target. 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.

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Woolworths Group Ltd (ASX: WOW) has revealed how it plans to counteract higher wages. Woolworths shares are currently trading at $34.16, a 2.59% fall. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is down 0.5% in late afternoon trade.

Additionally, Coles Group Ltd (ASX: COL) shares are sliding 2.22%, while Wesfarmers Ltd (ASX: WES) shares are dropping 1.76%. The S&P/ASX 200 Consumer Staples (ASX: XSJ) index is 2.39% in the red today.

Let’s take a look at how Woolworths plans to deal with potentially higher wages in the future.

Boost productivity

Woolworths plans to improve productivity and invest in technology to combat rising wages, the Australian Financial Review reported. A spokesperson for the company told the publication:

Like all good retailers, we will continue to focus on productivity across our business including looking at process improvement opportunities and investment in technology to sustainably reduce the effort required by our teams.

These productivity changes could include improving the efficiency of the Direct to Boot Groceries service, improving scanner technology for home delivery, and a new internal app to help staff swap shifts.

In the company’s third-quarter sales results in early May, CEO Brad Banducci expressed support for wage increases for staff. He said:

We also support the Australian Retailers Association’s position for an increase in team member wages that keeps pace with underlying cost-of-living increases.

Incoming Labor Prime Minister Anthony Albanese said before the election he supports a wage rise of 5.1%, in line with inflation.

In comments reported by Sky News he said: “We think no one should go backwards. People should be at least keeping up with the cost of living.”

Woolworths share price snapshot

The Woolworths share price has fallen by 7.5% in the past year, while it is down 10% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned less than 1% in a year.

Woolworths has a a market capitalisation of nearly $42 billion based on today’s share price.

The post Own Woolworths shares? Here’s how the retailer plans to combat rising wage costs appeared first on The Motley Fool Australia.

More reading

• How do ASX shares typically perform following a demerger?
• How safe is the Woolworths dividend?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Leading brokers name 3 ASX shares to buy today
• Is the Woolworths share price a buy following the latest acquisition or a no deal?

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.

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One thing that investors might want to look for when picking investments is a quality management team. Particularly in the current economic environment which is throwing all sorts of spanners into the works.

Two companies that have management teams that analysts at Morgans rate highly are listed below. Here’s what you need to know about them:

Treasury Wine Estates Ltd (ASX: TWE)

This wine company could be an ASX 200 share to buy according to Morgans. The broker has been pleased with the way management has transformed its operations after being shut out of China and believes it is well-placed for double-digit growth over the coming years.

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing a number of material headwinds. The foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on the wine company’s shares. Based on the current Treasury Wine share price, this implies 19% upside for investors.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 share which has a highly rated management team is Wesfarmers. It is the owner of a high quality portfolio of retail brands and industrial businesses. Morgans is a fan of the company and believes it could be a top option for investors.

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.

The broker currently has an add rating and $58.50 price target on the company’s shares. Based on the current Wesfarmers share price, this suggests potential upside of 27%.

The post Experts name 2 ASX 200 shares with high quality management teams to buy appeared first on The Motley Fool Australia.

More reading

• How do ASX shares typically perform following a demerger?
• Guess which ASX 200 shares UBS just added to its ‘best ideas’ list
• These 3 ASX shares have plunged this year: Expert reveals what to do
• Top brokers name 3 ASX shares to buy today
• Could the new Labor Government herald better days for Treasury Wine shares?

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 positions in and has recommended Wesfarmers Limited. 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 Scott Phillips.

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Are TerraUSD (CRYPTO: UST) and Terra (CRYPTO: LUNA) really making a comeback?

That depends on who you ask.

Some crypto enthusiasts, particularly we’d imagine those still holding LUNA and UST, are buoyed by the resuce plan put forth by the, erm, stablecoin’s founder Do Kwon.

We’ll look at that plan shortly.

But first, the reason you may be hearing about a big comeback for Terra’s Luna and UST tokens is that both saw their prices surge over the past 24 hours.

Though both have given some or all of those gains back in recent hours.

How’s this for volatility?

Both Terra tokens saw some more wild volatility over the past 24 hours. A speculator’s delight, perhaps, with the potential to make, or lose, big bucks in a matter of hours.

But hardly in line with the long-term investing philosophy embraced by The Motley Fool.

Here’s what we mean.

Since this time yesterday, UST traded as high as 32 US cents and as low as 7 US cents. It’s currently trading for just under 10 US cents.

And remember, this is supposedly the stablecoin that was meant to consistently be worth US$1. Which it more or less was. Right up until that peg snapped as confidence in Terra evaporated two weeks ago, on 12 May.

As for Terra’s LUNA, the token which was intended to help the algorithmic UST maintain its peg by enabling people to swap UST for US$1 worth of LUNA at any point, it got absolutely trampled as crypto investors rushed for the exits.

LUNA hit record highs just over two months ago, trading for US$119 on 5 April, according to data from CoinMarketCap.

It’s currently trading for 0.017 cents after hitting a peak of 0.020 cents overnight.

That’s about as close to down 100% from April’s highs as you can get with some US$40 billion having gone up in virtual thin air.

What’s all this about a Terra LUNA rescue plan?

Do Kwon is determined to try to get his project – backed by Terraform Labs – back on track.

A rescue measure he put forth, supported by 65% of voters in the Terra community, will see the blockchain split off from the original to be called Terra Classic. LUNA will be rebranded as LUNA Classic (CRYPTO: LUNC). The new blockchain won’t support UST.

Existing LUNA holders can expect to receive their Classic LUNC tokens inside the next 24 hours.

Kwon reported that will happen via what’s known as an ‘airdrop’.

The post Are Terra UST and Terra Luna really making a comeback? appeared first on The Motley Fool Australia.

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• Can the AMP dividend yield really push to 15%?
• Why I’d buy the iShares S&P 500 ETF right now for instant diversification
• Here are the 3 most traded ASX 200 shares on Thursday
• Sick of the ASX falls? Me too!

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.

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