Day: June 11, 2022

These were the worst performing ASX 200 shares last week

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the IAG share price continue to fall

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the IAG share price continue to fall

The S&P/ASX 200 Index (ASX: XJO) was out of form and dropped deep into the red last week. The benchmark index fell 4.2% to end the period at 6,932 points.

While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performing ASX 200 shares:

Zip Co Ltd (ASX: ZIP)

The Zip share price was the worst performer on the ASX 200 last week with a 20.3% decline. Investors were selling Zip and other buy now pay later (BNPL) shares after tech giant Apple announced the launch of its BNPL service. Apple Pay Later will allow users to split the cost of an Apple Pay purchase into four equal payments with no interest. The service works with any merchant that already supports Apple Pay and does not require a new payments terminal. This means that merchants don’t even need to offer BNPL for consumers to transact with them with this payment method.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn’t far behind and tumbled 17.8% lower during the period. There were a couple of catalysts for this weakness. The first was the release of another disappointing monthly update which revealed a further sizeable decline in funds under management. The other catalyst was news that the company has been dumped from the ASX 100 index.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form and dropped 16.5% over the five days. Investors were selling the sports betting company’s shares amid weakness in the tech sector. This led to the S&P ASX All Technology index losing 5.2% of its value last week. Loss-making tech shares like PointsBet were hardest hit.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price was a poor performer and tumbled 16.3% last week. Broad market weakness appears to have been weighing on this mineral exploration company’s shares. Not even the company’s appearance at the Resources Rising Stars Conference or some insider buying could stop its shares from falling.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet 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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3 ASX shares going ex-dividend next week

busy trader on the phone in front of board depicting asx share price risers and fallersbusy trader on the phone in front of board depicting asx share price risers and fallers

As we move throughout the month of June, a number of ASX shares have their ex-dividend date coming up.

An explanation for the ex-dividend date is when investors must have purchased a company’s shares. Let’s say you buy XYZ shares on or after the ex-dividend date, then the upcoming dividend will go to the seller.

Below, we take a look at the three small-cap shares that are trading ex-dividend next week.

Which ASX shares are going ex-dividend?

KMD Brands Ltd (ASX: KMD) shares will trade ex-dividend next Tuesday for the adventure retailer’s NZ$0.03 cents (A$0.027) per share fully franked dividend. This will be paid to eligible shareholders on 30 June. The KMD Brands share price closed down 3.67% at $1.05 on Friday.

Plato Income Maximiser Ltd (ASX: PL8) shares are set to trade without the rights to the investment company’s $0.0055 cent per share fully franked dividend on Wednesday. Shareholders will have to wait until 30 June for their paycheck. Plato shares closed 1.25% higher on Friday at $1.215.

Tower Ltd (ASX: TWR) shares will also trade ex-dividend next Wednesday for the New Zealand-based insurer’s NZ$0.025 cents (AS0.023) per share unfranked interim dividend. Eligible Tower shareholders can expect to be paid this dividend on 30 June. The Tower share price closed in the green on Friday, up 1.67% to 61 cents.

It is worth noting that, commonly, the share price of a company drops on the ex-dividend date by the amount of the dividend that is paid to shareholders. 

Foolish Takeaway

To qualify for any of these dividends you need to make sure you are on the share registry before the ex-dividend date. Again, this is either Tuesday or Wednesday, depending on which ASX share you buy.

It’s worth noting that if you sell on or after the ex-dividend date, you will still qualify for the dividend.

The post 3 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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

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3 ASX tech shares that could pop when the mood turns

a man and a woman sitting in a technology related work environment high five each other while the man wears headphones around his heck and the woman sits in front of a laptop.a man and a woman sitting in a technology related work environment high five each other while the man wears headphones around his heck and the woman sits in front of a laptop.

The year 2022 has been brutal on ASX technology shares.

The S&P/ASX All Technology Index (ASX: XTX) has declined by around 35% so far this year, and there is no relief in sight.

But long-term investors will already know the tide will turn sooner or later.

Shaw and Partners portfolio manager James Gerrish said that the ride will be bumpy at least for the rest of 2022.

“It’s going to [be] a volatile and unforgiving year for stocks that are not making money and trading on very high multiples of revenue that have any type of slip-up.”

So for now, his team is just sticking to ASX tech shares names that are profitable.

‘Highest risk and greatest potential reward’

But of course, with risk comes reward.

Gerrish admits that once the sentiment turns back in favour of high-growth stocks, some pre-profit tech companies may have far more upside.

“If sentiment changes in the space, that is where the highest risk and greatest potential reward will be found.”

Out of those, he named three ASX tech shares in particular that are best placed for a return to glory.

“We like Dubber Corp Ltd (ASX: DUB) and see deep value there — however, the share price has been terrible,” he said in a Market Matters Q&A.

“Life360 Inc (ASX: 360) is another worth consideration given its sharp recent declines versus its growth profile, while some value is starting to show in Megaport Ltd (ASX: MP1).”

What do these 3 ASX tech shares do?

Melbourne-headquartered Dubber develops cloud communications software. Its shares have been beaten down by 73% year-to-date.

It’s one that The Motley Fool chief investment officer Scott Phillips picked as the “strike bowler” in his “ASX XI” back in January.

“Takes three-for-none or bowls a brace of wides and goes wicketless,” he said.

“But you wouldn’t be without them, especially in test cricket over a long series.”

Dubber certainly has bowled a few down legside this year. Here’s hoping it can take a five-for soon.

Life360 shares have fared just as worse this year, dropping a painful 69% so far.

Bell Potter loves the family app maker though, setting a price target that’s more than double the ASX tech share’s current price.

“Bell Potter is positive on the company and believes it has ample cash to fund it through to cash flow breakeven,” reported The Motley Fool last week.

“The broker has a buy rating and $7.50 price target on its shares.”

Megaport, despite plunging 67% in value this year, has plenty of fans.

The virtual network provider also has a stock price target that exceeds double the current level, this time with Goldman Sachs.

“The company is tipped to expand rapidly in the future as public cloud adoption and multi-cloud usage increase,” reported The Motley Fool last week.

“Goldman sees networking-as-a-service as a key driver of the company’s growth in the future.”

The post 3 ASX tech shares that could pop when the mood turns appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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Motley Fool contributor Tony Yoo has positions in Dubber Corporation, Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dubber Corporation, Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Apple stock: The bull and bear cases today

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

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

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

The stock market is having a very lackluster 2022 so far. The S&P 500 has contracted 13% since the start of the year, and the Nasdaq Composite, which is heavy with technology stocks, which can be more speculative, has toppled 23% in the same time frame. Equities continue to battle an unfavorable economic and geopolitical environment that includes 40-year high inflation, higher interest rates, and concerns about the war between Russia and Ukraine. 

Even some of the world’s star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. The iPhone maker’s business has held up very nicely compared to other big tech companies like FAANG counterparts Netflix and Meta Platforms, yet the stock has been punished, sinking 18% year to date.

Let’s discuss Apple’s bull and bear case to help investors decide if they should add the stock to their portfolios now.

What’s looking good?

Unlike many of its technology peers, Apple’s business hasn’t seemed to suffer from the macro headwinds. In its second quarter of 2022, which ended on March 26, the company beat analysts’ estimates for both revenue and earnings. Both total sales and diluted earnings per share grew 8.6% year over year in the quarter. The tech giant’s products segment, which represented 80% of total revenue, had a very strong outing during the quarter, as each product category, excluding iPad, experienced sales growth year over year. The products segment includes iPhone, Mac, iPad, and wearables, Home, and accessories.

Apple’s services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, and other subscription businesses, expanded at a rapid clip once again in the most recent quarter. Its total sales were nearly $20 billion, equal to 17.3% growth year over year, and the segment’s gross margin expanded 254 basis points to 72.6%. Steady expansion from its products segment is a plus, but the company’s growth trajectory is highly dependent on its services category. Fortunately for Apple and its shareholders, the company’s $28.1 billion in cash and cash equivalents provides more than enough funding to develop this business further.

The latest sell-off has also soothed the tech leader’s valuation. At the start of the year, the company was trading around 30 times earnings, which is notably higher than its five-year mean price-to-earnings (P/E) multiple of 23.1. Today, however, the stock has a P/E of 24.1, which represents a much more reasonable valuation. 

What’s keeping investors away?

Boasting a market capitalization of $2.4 trillion, Apple is an enormous company, which in turn limits its ability to grow like it once did. Analysts expect the tech juggernaut’s top line to reach $394 billion in fiscal year 2022, indicating 7.7% growth year over year, and its bottom line to increase 9.4% to $6.14 per share. In 2023, Wall Street projects total revenue to climb just 5.6% to $416.2 billion and earnings per share to ascend 6.8% to $6.56. 

While the stock’s P/E has dropped to around 24, one could argue that there are more attractively priced stocks out there when considering growth rates. For instance, its fellow FAANG peer Alphabet is currently trading at 21.2 times earnings while projected to grow its bottom line by 18.7% in 2023, according to Wall Street analysts. With expectations that growth will continue to slow for Apple moving forward, it’s not unreasonable to assume that certain investors will eventually fall out of love with the stock. And provided its subpar dividend yield of only 0.60%, the company may not be able to attract dividend and value investors, either.   

I believe in the long-term picture

In today’s sagging market, Apple extends investors a valid buying opportunity. Its resilient business model, extraordinary balance sheet, and lower P/E serve as compelling reasons to buy the stock right now. Despite its slowing growth, I believe the company will continue to deliver market-beating returns in the long run. It’s time to take advantage of the stock market’s shortsightedness by accumulating shares of this tech giant today. 

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

The post Apple stock: The bull and bear cases today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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Luke Meindl has positions in Apple. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Netflix. 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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