Month: May 2022

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is out of form again and tumbling lower. At the time of writing, the benchmark index is down 1.5% to 6,961 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is up almost 1% to $102.31. This follows the release of the banking giant’s third-quarter update. For the three months ended 31 March, compared to the quarterly average during the first half, CBA reported a 1% decline in operating income to $6,103 million and flat cash earnings of $2,400 million. The latter was 9% ahead of the analyst consensus estimate.

Incannex Healthcare Ltd (ASX: IHL)

The Incannex Healthcare share price is up 11% to 40.5 cents. This morning the medicinal cannabis focused pharmaceutical company announced that it has entered into an agreement to acquire APIRx Pharmaceuticals. Based in the United States, APIRx is a leading pharmaceutical company specialising in cannabinoid active pharmaceutical ingredients and drug products.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 7% to $1.74. This follows a positive reaction to the bank’s investor day update from a number of brokers. One of those brokers was Macquarie, which upgraded Judo Capital’s shares to an outperform rating with an improved price target of $2.15. Its analysts believe the company is well-placed to deliver above system growth over the coming years.

Orica Ltd (ASX: ORI)

The Orica share price is up 6% to $16.65. Investors have been buying this commercial explosives company’s shares following the release of its half-year results. Orica reported a 25% increase in revenue to $3,277 million. And while it posted a net loss after tax of $85 million, this was driven partly by a large tax expense. Underlying earnings before interest and tax was up 58% to $245 million.

The post Why CBA, Incannex, Judo Capital, and Orica shares are rising appeared first on The Motley Fool Australia.

More reading

• Here’s why the Incannex share price is rocketing 18% today
• ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash
• CBA share price pushes higher on consensus-beating quarterly update
• Orica share price spikes amid 25% jump in sales revenue
• CBA share price on watch following $2.4bn Q3 cash profit

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Shares of Tabcorp Holdings Ltd (ASX: TAH) are rangebound today and are currently less than 1% down at $5.03 apiece.

The Tabcorp share price has traded in a range of $4.975 –$5.065 to the point of writing in Thursday’s session.

What’s up with the Tabcorp share price today?

Shareholders had their chance to vote on the company’s decision to proceed to a demerger of The Lottery Corporation from Tabcorp.

Shortly after voting, it was revealed that Tabcorp shareholders have “overwhelmingly approved” the demerger.

Tabcorp Chairman, Steven Gregg was pleased on the result.

We are pleased to have received shareholder approval for the demerger of The Lottery Corporation from Tabcorp.

This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success.

What now?

Tabcorp says that it will now seek orders from the Supreme Court of NSW for approval of the merger. The hearing is scheduled for Friday 20 May 2022.

“If the Scheme is approved by the Court,” Tabcorp says, “Tabcorp proposes to lodge a copy of the orders made by the Court with the Australian Securities and Investments Commission on Monday, 23 May 2022 and the Scheme will become effective on that date.”

“Subject to approval of the Scheme by the Court, The Lottery Corporation shares are expected
to begin trading on ASX on a deferred settlement basis on Tuesday 24 May 2022.”

Investors can determine their entitlements to The Lottery Corporation shares from 7pm (Sydney time) on Wednesday, 25 May 2022.

Tabcorp shares are less than 1% in the green for the last 12 months and are flat this year to date as well.

The post Tabcorp share price rangebound following lotto demerger vote appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• ‘Hidden value’: The ASX share with a major catalyst coming
• Gambling & explosives: fund reveals 2 ASX shares to buy right now

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 Scott Phillips.

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Investors are punishing the CSR Ltd (ASX: CSR) share price in Thursday’s session having pushed prices 9% lower on the day.

CSR shares are currently swapping hands at $5.20 apiece as downward pressure continues on the company from traders exiting positions en masse.

Volume is also 625% of its 4-week average amid a slew of broker downgrades, despite the majority of analysts still advocating to buy.

CSR share price revised down

Jefferies and Macquarie both levelled of their view of CSR in recent notes, both downgrading the company to neutral.

Analysts at Jefferies reckon there “is a period of capex catch-up ahead” in correspondence to clients and “…forecasts, the prospect of the current pipeline of work falling sharply”.

The broker also mentioned that headwinds in the housing market, such as interest rates and softening prices will also weaken new housing approvals.

It cut CSR to a hold at a $5.90 per share valuation, just behind Macquarie who values the share at $6.05 each.

Analysts at UBS were less pessimistic on the outlook, baking in a strong buy call that’s been retained for some time now by the Swiss investment bank.

Still, these three brokers would be going against the grain, even after the company’s full year earnings release yesterday.

At present, 75% of coverage has CSR as a buy right now, according to Bloomberg data. Whereas the remaining 25% advocate it to hold CSR shares.

The consensus price target from this list is $6.35 per share, implying a 22% upside potential should the bull thesis play out.

CSR share price snapshot

In the last 12 months the CSR share price has booked a 15% loss after extending another 11% into the red this year to date.

In fact across all major time frames CSR shares are in the red.

The post Why is the CSR share price plunging 9% today? appeared first on The Motley Fool Australia.

More reading

• CSR share price lifts as company constructs 20% more profit
• Do CSR shares have a dividend reinvestment plan?
• Is the CSR share price fully valued in April 2022?
• How big will the CSR dividend be in 2022?
• Top broker warns this ASX 200 share may be next to issue a profit warning

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 Scott Phillips.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $44.00 price target on this gaming technology company’s shares. Macquarie is positive on Aristocrat due to its belief that the company is well-positioned to deliver solid growth in the coming years. This is thanks to strong performances from its existing businesses and potential M&A activity. The latter is supported by its cash balance of well over $1 billion. The Aristocrat share price is trading at $30.92 today.

Life360 Inc (ASX: 360)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but slashed their price target on this location technology company’s shares to $5.50. Morgan Stanley continues to forecast strong recurring revenue growth from Life360. However, due to a de-rating in the tech sector, it has taken an axe to its valuation. But with price target this still offering material upside, it holds firm with its overweight rating. The Life360 share price is fetching $3.13 on Thursday.

Lifestyle Communities Limited (ASX: LIC)

Analysts at Goldman Sachs have retained their conviction buy rating and $24.50 price target on this retirement communities company’s shares. Goldman is very bullish on Lifestyle Communities due to Australia’s ageing population, structural growth in demand for land lease options, and fundamental valuation support for cap rates. The Lifestyle Communities share price is trading at $13.50 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Thursday thrashing: ASX tech shares tumble
• Broker names 3 emerging ASX shares to buy now
• 3 ASX All Ordinaries shares having a stellar run on Wednesday
• Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today
• ASX 200 midday update: Magellan names its new CEO, Link shares crash

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. 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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The Medibank Private Ltd (ASX: MPL) share price is heading south on Thursday following a broader market slump.

This comes amid the private health insurer announcing some key dates for its 2022 calendar this morning.

At the time of writing, Medibank shares are fetching at $3.165, down 0.47%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is struggling throughout the day to trade at 6,977.9 points, down 1.23%.

What’s Medibank’s agenda for the remainder of 2022?

With the year almost halfway done, Australia’s premier health insurance provider, Medibank released its key dates for 2022.

The most important date in the near term is on 18 August, when the company will deliver its full year results.

In addition to its 12-month performance report, a 2022 final dividend will also be announced by the board.

The ex-dividend date is scheduled to occur the following month on 7 September. This is when investors must have purchased Medibank shares to be eligible for payment of the upcoming dividend.

The date for when shareholders will receive the final dividend payment is set for 29 September. 

For context, Medibank returned to shareholders a fully-franked final dividend payment of 6.9 cents per share for FY21.

Lastly, the company will hold its 2022 annual general meeting (AGM) on 16 November. This will likely recap the events over the last 12 months, as well as the near-term outlook for the private health insurer.

Medibank share price snapshot

Since this time last year, the Medibank share price has travelled in circles to post a gain of around 5%.

When looking at year to date, its shares have traversed the other way, down 5%.

Based on today’s price, Medibank commands a market capitalisation of roughly $8.73 billion.

The company currently has a trailing dividend yield of 4.10% and a price-to-earnings (P/E) ratio of 20.06.

The post Own Medibank shares? Here’s what to watch over the coming months appeared first on The Motley Fool Australia.

More reading

• How big will the Medibank dividend be in 2022?
• The Medibank share price has leapt 5% in a month. Could it be on the comeback trail in May?
• This ASX 200 healthcare share has a fully franked dividend yield over 4% right now
• Why is the Medibank share price trailing NIB over the past year?

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.

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ASX coal shares are outperforming on Thursday amid surging energy commodity prices.

In fact, the S&P/ASX 200 Energy Index (ASX: XEJ) is one of the best-performing sectors today. It’s recording a slump of just 0.8%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped 1.23% on Thursday. The index is being weighed down by the tech sector’s whopping 7.8% tumble.

Let’s take a closer look at why most ASX coal shares are buoyed amid a sea of red today.

Why are ASX coal shares outperforming?

Shares in two of the biggest ASX-listed coal companies are doing better than the broader market today.

Right now, the Yancoal Australia Ltd (ASX: YAL) share price is leading. It’s recording a gain of 0.75% and trading at $5.38 apiece.

Meanwhile, shares in ASX 200 energy giant Whitehaven Coal Ltd (ASX: WHC) are flat after surging to 2.6% earlier today. At the time of writing, they’re trading at $4.98.

The coal producers’ shares are likely benefiting from the price of the energy commodity.

Newcastle coal futures are trading 1.99% higher at US$385 a tonne on Thursday afternoon. That’s the highest it’s been since it came off its all-time high of US$415 per tonne in March.

It comes as The Australian reports energy experts have noticed electricity generators are finding it harder to source coal in New South Wales lately.

That’s likely a sign of surging demand and, potentially, an ongoing result of sanctions placed on Russia – a major coal producer – following its invasion of Ukraine.

The price of coal could also be weighing on Australian energy prices.

The average energy spot price in Queensland has more than doubled in 2022 – averaging $144 per megawatt hour for the year so far – compared to 2021’s average of $61.81.

Victoria’s average energy spot price is fairing best this year, having risen around 37% compared to its 2021 average.

The post Why are these ASX coal shares having a top run today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 3 ASX 200 energy shares storming to new 52-week highs today
• Why did ASX coal shares having such a stellar run on Thursday?
• Here are the top 10 ASX shares today
• How might the election outcome impact the outlook for ASX energy shares?

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.

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Despite sinking over the past month, the Pilbara Minerals Ltd (ASX: PLS) share price has returned unbelievable gains over the decade.

Arguably, investing your money in businesses that are either new to the market or emerging can make you seriously rich. Of course, there is an inherent risk, particularly given when a company is still finding its footing.

Nonetheless, we calculate how much you would have made if you’d bought $10,000 worth of Pilbara Minerals shares a decade ago.

How much would your initial investment be worth now?

If you’d invested $10,000 into Pilbara Minerals shares this time 10 years ago, you would have picked them up for approximately 2 cents apiece. This equates to about 500,000 shares without topping up along the way.

Fast-forward to today, Pilbara Minerals shares are exchanging hands at $2.56 at the time of writing. This means that those 500,000 shares would be now worth a staggering $1.28 million. That’s right! A $10,000 investment in Pilbara Minerals shares and letting time do the work would reap some serious rewards.

When factoring in percentage terms, this implies an incredible gain of 12,600% or an average yearly return of 62.45%.

In comparison, investing the same amount in an ASX 200 index-tracking fund would have given back 62.72% over 10 years. This equates to an average of 4.99% per year.

If you are wondering about the Pilbara Minerals dividends, the company has chosen not to pay a percentage of its profits to date. Instead, it has decided to invest in its business and keep the balance sheet healthy in times of commodity downturns.

And without doubt, that decision by management has paid off for long-term shareholders.

Pilbara Minerals share price summary

Regardless of the recent slump, the Pilbara Minerals share price has continued to accelerate by 114% over the past 12 months.

The company’s shares hit an all-time high of $3.89 in mid-January before treading lower in the following weeks. One can only imagine how much you’re initial $10,000 investment would be then.

Spoiler alert: It would have been close to $2 million at the peak!

Pilbara Minerals presides a market capitalisation of roughly $7.62 billion and has more than 2.97 billion shares on its registry.

The post If you’d bought $10,000 of Pilbara Minerals shares 10 years ago, congratulations! Here’s what you’d have now appeared first on The Motley Fool Australia.

More reading

• Down 20% in a month, is the Pilbara Minerals share price a buy?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 2 ASX shares at ‘appealing’ buy prices right now
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Low charge: Is the party over for ASX lithium stocks?

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.

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Shares in Polynovo Ltd (ASX: PNV) were 7% higher in early trading today but have since resettled at $1.16, up 2.67% despite no market-sensitive information being released by the medical device company today.

Polynovo shares have risen from the dead, having spiked in a vertical fashion by 35.1% in the past five trading days. This has potentially ended a downwards trend that began at the start of FY22 when the Polynovo shares were trading at $2.82.

The Polynovo share price has also bifurcated away from the S&P/ASX 200 Health Care Index (ASX: XHJ). Over the past five trading days, the broader index gained just 0.6%.

What’s up with the Polynovo share price?

Recently, share purchases by various insiders have made the news.

As we reported on Tuesday: “An entity owned by the company’s chair David Williams splashed out yesterday, snapping up $227,500 worth of Polynovo stock on the market. Additionally, another two of the company’s directors reported buying into its stock last week, each snapping up parcels of 100,000 shares.”

Insider purchases by executives and directors are often interpreted as a vote of confidence by the market. This might be inspiring ASX investors to bid up the Polynovo share price in recent days.

The gain comes at the expense of short-sellers who still appear to have their tentacles wrapped around the stock. Polynovo is the fifth most shorted stock on the ASX, as we reported on Monday.

What do the experts think of Polynovo?

The shift in market sentiment appears to be matched by analyst sentiment. Three out of the five analysts covering Polynovo say it’s a buy right now, according to Bloomberg data.

The teams at Evans & Partners, Macquarie, and Bell Potter say buy. They value Polynovo shares at 12-month target prices of $1.40, $1.60, and $1.50 respectively. Meanwhile, Ord Minnett and Wilsons each rate it as a hold.

Polynovo share price snapshot

In the past 12 months, the Polynovo share price has slipped by 55%.

Polynovo has a market capitalisation of $711.31 million with 661.7 million shares outstanding.

The post Why is the Polynovo share price surging 35% in 5 days? appeared first on The Motley Fool Australia.

More reading

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• Why EOS, Pendal, PolyNovo and Xero shares are charging higher
• Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher
• Down 40% in 2022, this ASX 200 share is climbing amid insider buying action
• These are the 10 most shorted ASX shares

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 positions in and has recommended POLYNOVO FPO. 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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Last month, we looked at the Australian Vanadium Ltd (ASX: AVL) share price and how this vanadium hopeful’s shares had rocketed more than 160% over the preceding month. At the time, Australian Vanadium had soared more than 16% in one day, meaning its shares had risen from 4 cents per share to almost 12 cents.

Well, as it turns out, that was about as good as it got for Australian Vanadium. Today, the company is trading 3.5% down for the day so far at a share price of 5.5 cents. That means this company has fallen by around 31% over the past month alone. Since its new all-time high of 12 cents a share that we saw on 4 April, the company has now dropped by 50%. Ouch.

Why has the Australian Vanadium share price crashed more than 30% in a month?

So, what’s going on with this vanadium company? Well, as we covered last month, what really seemed to set investors onto Australian Vanadium shares was the March announcement that the company would be awarded a $49 million grant from the federal government’s Modern Manufacturing Initiative.

As we noted at the time, investors seemed to be flocking to ‘green metals’ shares such as lithium and cobalt. And vanadium looked set to join the list. Vanadium does indeed have potential uses in next-generation battery technology. Some experts believe vanadium can enable batteries known as ‘redox flow batteries’, which have the potential to last for more than 20 years, with little loss of charging capacity.

But unfortunately for investors, enthusiasm for green metals and the companies that mine or produce them, has waned dramatically over the past month. Lithium shares that were red hot only weeks ago, such as Pilbara Minerals Ltd (ASX: PLS) and AVZ Minerals Ltd (ASX: AVZ), have seen steep falls in value recently. We’ve seen this trend extend right across most ASX metals and mining shares for that matter. So it’s probably for this reason that Australian Vanadium shares have had such an awful month.

Even so, the Australian Vanadium share price remains up a pleasing 83% in 2022 so far, and up 175% over the past 12 months.

The post Why has the Australian Vanadium share price crashed 31% in a month? appeared first on The Motley Fool Australia.

More reading

• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) mining shares have, as a whole, delivered some outsized gains to investors over the past full year.

But despite soaring commodity prices, many ASX 200 mining shares have struggled in 2022.

What’s been happening with the big miners?

Over the past month, for example, the Allkem Ltd (ASX: AKE) share price has fallen 15%. At the current share price, the lithium producer has a market cap of $7.2 billion.

Copper, gold, and nickel miner Oz Minerals Limited (ASX: OZL) also had a rough month, falling 15% since 12 April. It has a current market cap of $7.4 billion.

Lynas Rare Earths Ltd (ASX: LYC) is another ASX 200 mining share giving back gains recently. Though still up 49% over the past full year, the Lynas share price is down 11% over the past month. The world’s second-largest producer of rare earths now has a market cap of $7.9 billion.

For some context, the ASX 200 is down 6.3% over the past month.

Are these ASX 200 mining shares now good value?

With the recent retracement in their share prices, are these ASX 200 mining shares a buy?

According to analysts at Canaccord, led by Reg Spencer, the answer is yes.

“Looking through the short-term volatility, we see the recent pullback as an opportunity to invest in sector leaders with robust balance sheets and near-term earnings growth/positive free cashflow yields, particularly those with leverage to attractive long-term supply/demand fundamentals such as Allkem, Lynas Rare Earths, and Oz Minerals,” they said, as reported by The Australian.

Canaccord said miners like these ASX 200 mining shares haven’t performed as well as expected, given their historically close correlation to commodity prices, likely dragged lower by the wider market sell-off.

Despite some pressure from rising interest rates, the analysts also have a positive outlook for gold, citing supply disruptions and the looming potential of a recession in the United States as supportive of prices.

And miners involved in producing commodities like lithium and copper, required for the global push for electrification, should see strong long-term demand for their products. Canaccord said that’s despite short-term pullbacks in demand due to China’s COVID-19 lockdowns and forecasts of sluggish global economic growth.

The post Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker appeared first on The Motley Fool Australia.

More reading

• Why is the Lynas share price storming higher today?
• Low charge: Is the party over for ASX lithium stocks?
• The Lynas share price has plunged 6% today! What’s going on?
• Expert warns investors about lithium and battery mineral ASX shares
• Here’s why ASX lithium stocks are rocketing higher 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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