Day: 3 June 2022

Today, the S&P/ASX 200 Index (ASX: XJO) paraded its third consecutive week of positive performance. At the end of the session, the benchmark index finished 0.88% higher at 7,238.8 points.

The lingering prospect of a 40 basis point increase to the Australian cash rate on Tuesday next week was not enough to shake investors of their bullish sentiment today.

Only one lonesome sector was unable to finish in the green today. The consumer discretionary sector was weighed down by disappointing performances from Domino’s Pizza Enterprises Ltd (ASX: DMP) and Wesfarmers Ltd (ASX: WES).

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, Champion Iron Ltd (ASX: CIA) was the biggest gainer today. Shares in the iron ore exploration company jumped 8.14% as the price of the steel-making commodity rose to US$142.20 per tonne. Find out more about Champion Iron here.

The next best performing ASX share across the market today was Pilbara Minerals Ltd (ASX: PLS). The big name lithium producer experienced a generous 7.46% uptick in its share price as lithium companies continued their rebound on Friday. Uncover the latest Pilbara Minerals details here.

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

ASX-listed company	Share price	Price change
Champion Iron Ltd (ASX: CIA)	$7.84	8.14%
Pilbara Minerals Ltd (ASX: PLS)	$2.45	7.46%
Liontown Resources Ltd (ASX: LTR)	$1.27	6.72%
Nickel Industries Ltd (ASX: NIC)	$1.295	6.58%
Core Lithium Ltd (ASX: CXO)	$1.215	6.58%
Summerset Group Holdings Ltd (ASX: SNZ)	$9.58	6.44%
Wisetech Global Ltd (ASX: WTC)	$42.94	5.07%
Grange Resources Ltd (ASX: GRR)	$1.69	4.97%
Mineral Resources Ltd (ASX: MIN)	$60.35	4.81%
Block Inc (ASX: SQ2)	$119.76	4.52%

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

• Why did the Nickel Industries share price leap 7% on Friday?
• Here are the 3 most traded ASX 200 shares on Friday
• One broker’s outlook for lithium supply and demand and what it could mean for ASX lithium shares
• Why are the ASX 200 iron ore giants outperforming on Friday?
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher

Motley Fool contributor Mitchell Lawler has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, Inc., Wesfarmers Limited, and WiseTech Global. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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It turned out to be a very pleasant day for the S&P/ASX 200 Index (ASX: XJO) on Friday. By market close, the ASX 200 had gained a healthy 0.88% and vaulted back over 7,200 points. But it was an even better day for one ASX 200 share. That would be the Nickel Industries Ltd (ASX: NIC) share price.

Nickel Industries shares ended up finishing the day at $1.30 each, up a pleasing 6.58%.

So what was behind this spirited performance?

Well, it’s not entirely clear. There hasn’t been any major news out from Nickel Industries today. There were the results of the annual general meeting to consider though. These were released earlier this week. Perhaps the biggest consequence of note was the approval of the name change from Nickel Mines to Nickel Industries which was approved by shareholders.

It’s not known if this caused any added optimism for Nickel Industries shares today though.

So let’s consider something else. Over the week, a number of green metals shares saw some savage selling pressure. These included many ASX lithium shares, as well as Nickel Industries. Wednesday saw Nickel Industries lose almost 4%, which was backed up by another 1.6% loss yesterday.

So perhaps today’s bullish moves higher were just an answer to the selling we saw earlier in the week. Perhaps investors saw a bargain when the market opened this morning.

Whatever the true reason for Nickel Industries’ stellar performance today, it was no doubt welcomed by shareholders after such a wild week.

At the current Nickel Industries share price, this ASX 200 share has a market capitalisation of $3.51 billion.

The post Why did the Nickel Industries share price leap 7% on Friday? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher
• 5 things to watch on the ASX 200 on Friday
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update

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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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.

What happened

The price of cryptocurrency Waves (CRYPTO: WAVES) has had an exciting week. At the time of writing, the price per token is only up 5.73% over the previous 24 hours. But the price has more than doubled over the past week. And it’s likely due to increasing optimism for the Waves ecosystem, which includes stablecoin Neutrino USD (CRYPTO: USDN).

So what

As a stablecoin, the price of Neutrino USD should always be $1. But it is more similar to failed stablecoin TerraUSD than to a stablecoin like Tether, which is backed by U.S. dollar reserves. And from May 9 to May 12, the price for Neutrino USD dropped all the way to $0.75, according to CoinMarketCap.com.

TerraUSD was collateralized by Luna (now called Luna Classic). The supply could increase or decrease by minting and burning new tokens in accordance to demand with an exchange mechanism between TerraUSD and Luna Classic. At least that’s how it was supposed to work. In reality, the two tokens ultimately entered what’s called a “death spiral” and couldn’t pull out.

Therefore, when Neutrino USD fell, many assumed that it would enter a death spiral with its accompanying token Waves as well. But it didn’t. As of this writing, the price of Neutrino USD is $0.99 — not perfect but practically recovered.

Because Neutrino USD was able to fight its way back, it’s restoring investor confidence in Waves, and that’s why the price has recovered so dramatically in the past week.

Now what

There’s a flip side to this conversation. To restore Neutrino USD to its $1 peg, coins had to be removed from circulation. Because of this, the overall market capitalization has fallen roughly 20% since April. This has effectively decreased total coin supply to meet user demand and stabilize the price.

But lower demand is a concern. For the price of Waves to keep going up sustainably, you’d want to see an increase in activity on the entire ecosystem, including for Neutrino USD. But as suggested by Neutrino USD’s declining market cap, that might not be happening right now, which is something to keep an eye on.

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

The post Why this small cryptocurrency kept making waves today appeared first on The Motley Fool Australia.

More reading

• What’s boosting the Ioneer share price 14% higher?
• Woolworths share price edges lower despite green milestone
• Investors are betting on the Pointsbet share price today, it’s up 5%
• Here are the 3 most traded ASX 200 shares on Friday
• Down 9% in a week, is the Lottery Corp share price a buy? 

Jon Quast 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.

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

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The Ioneer Ltd (ASX: INR) share price is leaping higher on Friday despite the company’s silence. However, the stock did tumble more than 20% over the course of Wednesday and Thursday

At the time of writing, the Ioneer share price is 52 cents. That’s 14.29% higher than its previous close but 3.7% lower than it was at the end of last week.

For context, the All Ordinaries Index (ASX: XAO) has gained 0.94% today and 0.77% since last Friday’s close.

Let’s take a closer look at what’s been going on with the lithium and boron producer and its peers today.

What’s driving the Ioneer share price higher today?

 The Ioneer share price is the ASX All Ordinaries’ top performer on Friday.

The S&P/ASX 200 Materials Index (ASX: XMJ) is also having a good day today. While the company isn’t a constituent of the S&P/ASX 200 Index (ASX: XJO) many of its lithium-producing peers are among the sector’s leaders.

Right now, the share prices of fellow lithium stocks Liontown Resources Limited (ASX: LIO), Pilbara Minerals Ltd (ASX: PLS), and Mineral Resources Limited (ASX: MIN) are up 6.3%, 6.1%, and 5.2% respectively.

The lithium miners’ share prices’ gains might represent a rebound after Wednesday’s disastrous session.

Then, the market appeared to react to bearish sentiment from Goldman Sachs and news a major Chinese electric vehicle manufacturer could bypass lithium markets.

The Ioneer share price tumbled 16% on Wednesday and another 6% on Thursday. Thus, today’s movements might be a simple correction following the sell-off.

Though, the gain hasn’t been enough to boost the stock back into the longer term green.

The Ioneer share price is still nearly 37% lower than it was at the start of 2022. However, it is 38% higher than it was this time last year.

The post What’s boosting the Ioneer share price 14% higher? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries mining shares having a terrific Tuesday

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 positions in and has recommended Goldman Sachs. 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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The Woolworths Group Ltd (ASX: WOW) share price is underperforming on Friday despite the company taking yet another major sustainability step.

The supermarket giant has pledged to pull plastic shopping bags from Woolies supermarkets and Big W stores over the coming 12 months.

At the time of writing, the Woolworths share price is trading at $34.56, 0.20% lower than its previous close. In comparison, the S&P/ASX 200 Index (ASX: XJO) is recording a 0.78% gain right now.

Let’s take a closer look at the company’s plan to remove 9,000 tonnes of plastic from circulation each year.

Woolies to wave goodbye to plastic carry bags

The Woolworths share price is struggling to fire up on Friday. Its suffering comes amid news the supermarket giant is ditching reusable plastic carry bags.

The bags in question are sold in-store for 15 cents each, with a 45-cent option available in Big W. They’re made from 80% recycled materials and are recyclable through REDcycle bins which can be found in Woolworths stores.

The supermarket operator has already ditched the bags in Western Australia ahead of a state government mandate. There, 76% of customers have supported the move. Next to wave goodbye to the bags will be South Australia and the Northern Territory, with the rest of the country following suit by June 2023.

The bags were first offered in 2018 to help customers adjust to the removal of single-use plastic shopping bags from supermarkets. Nowadays, 80% of Woolies shoppers already bring their own bags from home, according to the food retailer.

The supermarket will continue to provide 70% recycled paper bags for customers who forget to bring their own.

Woolworths supermarkets managing director Natalie Davis commented on the decision, saying:

Customers expect us to lead on sustainability, and this is one way we are growing greener by reducing plastic and ensuring the regular trip to your local Woolworths or BIG W is having less impact on the environment.

The reusable plastic bags have played their part and now it’s time to do away with selling plastic shopping bags at our checkouts for good.

Most Woolies’ produce departments will still offer plastic bags to carry fruit and vegetables. However, the company is working to provide more sustainable options. In South Australia, for example, it provides compostable fruit and veg bags, complementing the state’s access to household composting.

Woolworths share price snapshot

Today’s dip included, the Woolworths share price is around 10% lower than it was at the start of 2022.

It has also fallen nearly 5% since this time last year.

The post Woolworths share price edges lower despite green milestone appeared first on The Motley Fool Australia.

More reading

• Why did the Woolworths share price underperform on Thursday?
• Own Woolworths shares? Here’s how the retailer plans to combat rising wage costs
• 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?

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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The Pointsbet Holdings Ltd (ASX: PBH) share price is currently up by more than 5%.

While that’s a substantial rise in just one session, it’s still down by more than 13% over the past month, so it’s recovering some of the lost ground.

The gains come as other businesses which are known for growth are also in the green. For example, the Xero Limited (ASX: XR) share price is up more than 1%, the REA Group Limited (ASX: REA) share price is up 2.7% and the Pilbara Minerals Ltd (ASX: PLS) share price is up 5%.

The company gave an update on its global leadership team earlier this week.

Pointsbet management team change

The company announced that executive director Mr Manjit Gombra, who was the President of product and technology, will transition to becoming a non-executive director.

Dr Jerry Bowskill is going to join the company as group chief technology officer on 18 July 2022, taking over from Mr Gombra-Singh.

Pointsbet said that Dr Bowskill is an experienced technology executive with a successful track record as a ‘C-level’ leader with a range of international regulated gaming and fintech organisations, from start-ups to public companies. Most recently, he was the executive director and chief technology officer at Capital International.

The company also announced that Mr Andrew Catterall will join the company as Australian CEO on 4 July 2022. He is the former CEO of Racing.com. He is looking to lead the business towards profitability at the earnings before interest, tax, depreciation and amortisation (EBITDA) level. Mr Catterall has a mandate to continue growth and seek “important strategic opportunities which can strengthen the business.”

The Pointsbet share price fell over 10% on the day of the announcement.

The post Investors are betting on the Pointsbet share price today, it’s up 5% appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Origin, PointsBet, and Zip shares are sinking today
• These were the best performing ASX 200 shares last week
• Why Infomedia, Pilbara Minerals, PointsBet, and Talga shares are racing higher
• ASX 200 midday update: Appen crashes, lithum shares jump
• 2 ASX-listed companies that are growing rapidly

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 positions in and has recommended Pointsbet Holdings Ltd and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pointsbet Holdings 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 S&P/ASX 200 Index (ASX: XJO) has decided to put a positive spin towards the end of the week on Friday. At the time of writing, the ASX 200 has gained a healthy 0.73% today and is now well back over 7,200 points. TGIF indeed.

But let’s now delve deeper into these ASX gains and have a look at the shares that are currently at the top of the ASX 200’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

South32 Ltd (ASX: S32)

Resources giant South32 is our first ASX 200 share to check out this Friday. So far today, a hefty 13.2 million of this diversified miner’s shares have been bought and sold on the markets. This doesn’t appear to be the result of anything out of the company itself.

Saying that, the South32 share price has enjoyed a strong move higher today. The company is currently up a pleasing 2.11 % at $5.08 a share. This is probably the source of these higher volumes.

Liontown Resources Limited (ASX: LTR)

ASX lithium share Liontown Resources is next up this Friday. This trading day has seen a sizeable 14.72 million Liontown shares trade hands as it currently stands. This has almost certainly been caused by the massive jump we have seen in this company’s shares today.

After a painful week of selling, Liontown shares have bounced back with a vengeance this Friday. The company is currently up a whopping 5.46% so far at $1.26 a share. Even so, Liontown still remains down more than 8% over the past five trading days.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX 200 lithium share in Pilbara rounds out our list today. So far, a notable 38.31 million Pilbara shares have bounced around the share market at this point of the trading day. Like Liontown, Pilbara shares have been steamrolling ahead after a painful week.

In Pilbara’s case, we have seen the company gain an impressive 5.26% during today’s trading session. No wonder so many shares have been traded.

The post Here are the 3 most traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

More reading

• One broker’s outlook for lithium supply and demand and what it could mean for ASX lithium shares
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher
• Could the Pilbara share price take off in June?
• It was an eventful month for Liontown shares in May. Here’s what went down
• Was May a good month for the Pilbara Minerals share price?

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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The Lottery Corporation Ltd (ASX: TLC) share price isn’t off to a good start since its spin-off, but this might be an opportunity as it’s the newest buy idea from Morgans.

The broker calls Lottery Corporation “one of the highest performing lotteries businesses in the world” when it initiated coverage with an add recommendation.

This didn’t save the Lottery Corporation share price from falling just over 3% to $4.40 during lunchtime trade. The drop takes its loss over the week to 8.5%.

Lottery Corporation share price’s poor start to the ASX

This isn’t an auspicious beginning for the group after it split from Tabcorp Holdings Limited (ASX: TAH).

But there are a lot of things to like about the newly minted shares. Some of the things Morgans likes about Lottery Corporation include long-dated and exclusive licenses to operate lotteries across Australia – apart from WA.

Morgans commented:

Lottery ticket sales are resilient to economic cyclicality, cash flows are steady and predictable, and there is a low ongoing need for capex.

These characteristics mean we expect TLC to be able to deliver a fully franked dividend at a high payout ratio, while still paying down debt steadily.

Desirable defensive qualities

The broker likened the Lottery Corporation share price to that of an infrastructure asset. During these volatile times, defensive cash flows should be highly prized.

Further, there are no major license renewals facing the group until 2028 in Victoria. Its license to sell Keno has an average 29-year expiry.

Another source of strength is the group’s large distribution networks. The lottery tickets are sold by 4,000 retailers as well as online either directly or through Jumbo Interactive Ltd (ASX: JIN).

What is the Lottery Corporation share price worth?

Morgans is tipping robust earnings growth for the Lottery Corporation share price. The broker said:

We forecast TLC to deliver 15% growth in EBITDA to $702m in FY22. With growth expected in both the Lotteries and Keno divisions, we forecast EBITDA to reach $765m in FY25, implying a FY19-25F EBITDA CAGR of 7%.

We model a lesser rate of EBITDA growth (+4%) in FY23 as the number of large jackpots is expected to normalise after an unusually prolific FY22.

The broker’s 12-month price target on the Lottery Corporation share price is $5.40 a share. This implies a 23% upside before the 16 cents a share forecast dividend is paid.

The child looking better than the parent

On the flip side, Morgans is less enamoured by the parent. It thinks the lotteries and Keno businesses were the jewel in the crown of the Tabcorp share price.

Morgans holds a cautious view on the wagering and gaming divisions that remain with Tabcorp. This prompted it to downgrade its recommendation on the Tabcorp share price to hold from add with a target price of $0.95 a share.

The post Down 9% in a week, is the Lottery Corp share price a buy?  appeared first on The Motley Fool Australia.

More reading

• Fund manager names 3 ASX shares with monopoly moats
• What’s dragging on the Tabcorp share price today?
• How do ASX shares typically perform following a demerger?
• Are newly-listed Lottery Corp shares worth buying? ASX brokers weigh in
• Could Tabcorp’s newly demerged Lottery Corporation become a takeover target?

Motley Fool contributor Brendon Lau 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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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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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.

What happened

Yesterday, shares of electric car leader Tesla (NASDAQ: TSLA) took a 2.4% tumble as U.S. media obsessed over Elon Musk’s emailed ultimatum: Tesla office workers must cease working from home and report to the office, or else find a new job and “pretend to work somewhere else.”

Today, though, Tesla’s stock took a turn for the better, rising 4.7%, as investors reacted positively to news that the company is delaying delivery of longer-range electric vehicles in the U.S. Why is that?

So what

Reuters is reporting that because of snarls in the automotive parts supply chain, Tesla has been forced to delay deliveries of certain long-range models of its electric vehicles in the U.S. This sounds like bad news for Tesla — not what you’d expect to send the stock shooting up. According to the news agency, new orders of long-range versions of Tesla’s Model Y electric crossover will not arrive before December, and maybe not until March 2023. Orders for long-range Model X electric SUVs, placed today, won’t arrive before February 2023 (and perhaps as late as May).

Only with the Model 3 do things look a bit better. Long-range versions of the Tesla electric sedan, ordered today, will at least arrive before the end of this year — sometime between September and December.  

Now what

What does this mean for Tesla and its investors? I see two possibilities — not mutually exclusive.

First and foremost, delays mean unhappy customers, and customers unhappy with being asked to wait for a new Tesla might decide to buy an electric car from Volkswagen, from General Motors, or from Kia or Hyundai instead. If that’s the case, then this supply-chain problem could cost Tesla revenue and further threaten its goal of delivering 1.5 million EVs this year.

On the plus side, though, consider: In recent years, “long range” has become kind of the default, and the low-price option for most Tesla EVs — while premium-fare models with higher price tags are dubbed “performance” or even “plaid.” In delaying deliveries of “long-range” models, therefore, Tesla seems to be favoring production and sale and delivery of its highest-priced and highest-margin products — a pattern we’ve seen in the past as well at Tesla.      

This means that, even if sales and delivery numbers take a hit, Tesla appears to be doing all it can to preserve its profits until the supply-chain problems work themselves out and it can shift back into volume production mode.

For Tesla investors, I think that’s probably a good thing — and a reason for Tesla stock to go up, not down.

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

The post Why Tesla stock did a U-turn today appeared first on The Motley Fool Australia.

More reading

• The Tesla share price has rallied 18% in less than a fortnight. What’s going on?
• Why Tesla stock is still falling today
• Why the Tesla share price stalled on Tuesday
• If you’d bought $5,000 of Tesla shares 5 years ago, woohoo! Here’s how much you’d have now
• Why Tesla stock keeps going up

Rich Smith 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 Tesla. 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.

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Not every company inside the S&P/ASX 300 Index (ASX: XKO) has face-melting growth — but maybe they don’t all need it.

On the contrary, many investors are seeking the sanctuary of steady profit machines during these unpredictable times. Fears of a rate hike-induced recession are renewing investors’ prioritisation of predictability and financial stability.

In a recent interview conducted by Livewire, long-time investing experts Josh Clark and Gary Rollo, from QVG Capital and Montgomery Investment Management respectively, showed their enthusiasm for one ASX 300 tech share that fits the bill.

This ASX 300 share strikes the sweet spot

It would be hard to find a tech share in the ASX 300, or at all for that matter, that hasn’t suffered at the hand of weaker markets recently. To highlight this, the S&P/ASX All Technology Index (ASX: XTX) is nearly 32% underwater compared to the start of the year.

Despite this, Clark and Rollo were in agreeance that billing solutions company Hansen Technologies Limited (ASX: HSN) is a buy.

Unlike its potentially more exciting tech peers, Hansen doesn’t boast +30% revenue growth. In the 12 months ending 31 December 2021, the company increased its revenue by 5% to $314.4 million.

Commenting on this fact, Rollo shared his perspective on Hansen, stating:

Look, it’s not a high growth type business, it’s got stable industry fundamentals in the sector that it plays in. It’s basically giving you market-level growth, but in a business model that’s a bit better than the market. You’ve got a founder-led management team where they’ve given some punchy targets for years two, three, four, and five; in terms of what they think they can get to — M&A’s got to be part of that story.

Likewise, Clark also believes the founder-led team is a strong selling point. Most importantly, this includes the founder and CEO Andrew Hansen, who holds a 17.5% stake in the company.

Furthermore, Clark explained this ASX 300 tech share’s enviable track record of value creation, stating:

[T]hey’ve been able to go and purchase businesses with sticky revenues, retain those revenues, but then improve that margin profile of those businesses over time. And that’s where a lot of the values come from.

What has Hansen been up to?

In the past month, Hansen Technologies has secured an extension with an existing customer and signed a new multi-year contract.

The extension involved one of the Nordic region’s largest energy service providers, Gasum. According to the release, the extension will see Gasum use Hansen Trade (an energy trading solution) for more use cases.

Additionally, the ASX 300 tech share landed a multi-year agreement with SwissGrid to deploy Hansen MDM (meter data management).

The post Can slow and steady win the race? Why fundies love this ASX 300 tech share appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 high quality ASX blue chip shares to buy right now
• Brokers name 3 ASX shares to buy today
• Candle in the wind: Why is the Dusk share price down 20% in a month?
• What are brokers forecasting for the Westpac share price in June?
• 2 great ETFs I’d buy in June 2022

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies. 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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