Day: August 20, 2022

Love tech? Here are 2 excellent ETFs for ASX tech investors

Five happy friends on their phones.

Five happy friends on their phones.

If you’re looking to invest in the tech sector but aren’t sure which shares to buy, then you may want to consider exchange traded funds (ETFs).

That’s because there are a number of ETFs out there that allow investors to buy a slice of some of the world’s biggest and brightest tech companies.

Two ETFs that will allow you to achieve this are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for tech investors to look at is the BetaShares Asia Technology Tigers ETF. This ETF gives investors exposure to some of the largest tech companies in the Asian market (excluding Japan).

BetaShares believes this is a good place for investors to put funds, noting that technological adoption in Asia is surpassing the West. Furthermore, with this trend tipped to continue in the future, this is expected to underpin strong growth in the sector over the next decade.

There are approximately 50 companies included in the fund including the likes of Alibaba, Infosys, JD.com, Meituan, Pinduoduo, Samsung, and Tencent.

In respect to the latter, Tencent is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which connect over a billion users with each other.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF for tech investors to look at is the BetaShares Global Cybersecurity ETF. As its name implies, this popular ETF gives investors exposure to the leading companies in the global cybersecurity sector.

The cybersecurity sector has been growing strongly in recent years. Pleasingly, due to increasing demand for cybersecurity services because of the growing threat of cyber attacks and the shift to the cloud, it has been tipped to continue doing so for a long time to come.

Included in the fund are global cybersecurity giants and emerging players from around the globe. Among the companies you’ll be buying a piece of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

The post Love tech? Here are 2 excellent ETFs for ASX tech investors 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 August 4 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 BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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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Looking to buy Cleanaway shares? Here’s what you need to know about the company’s latest acquisition

A business handshake with a forest backdrop, indicating a share price rise or deal between clean, green companiesA business handshake with a forest backdrop, indicating a share price rise or deal between clean, green companies

The Cleanaway Waste Management Ltd (ASX: CWY) share price is in focus after the company announced its latest acquisition.

Cleanaway has a market capitalisation of $5.6 billion at the time of writing. However, it’s about to get a bit bigger after the company announced a capital raising and a deal to expand its network.

Let’s look at what the company announced.

Global Renewable Holdings

Cleanaway has big plans with its ‘Blueprint 2030’ strategy, which includes medium-term opportunities to “deliver the blueprints under the strategic infrastructure growth and sustainable customer solutions pillars”. This starts with Global Renewables Holdings Pty Ltd (GRL).

GRL is a licensed composting facility that processes around a fifth of Sydney’s ‘red bin’ household waste at its strategically located Eastern Creek site and delivers around 30% of landfill diversion and “better carbon outcomes” compared to landfill.

The facility currently composts ‘organics’ from red bin household waste and will gradually transition to source separated food organics and garden organics feedstock to meet council customer needs.

Cleanaway is the exclusive contracted provider of waste to the GRL facility until 2032, with waste supply underpinned by contracts with surrounding councils, with which Cleanaway has long-term existing relationships.

Cleanaway said it’s committed to enhancing the facility over time, including an expected $40 million to $45 million update to enclose the compost maturation area.

What are the financial implications for Cleanaway shares?

Cleanaway has entered into a binding agreement and the overall acquisition price is $168.5 million.

The company said that GRL would add 5.2% to its earnings per share (EPS) on an FY22 basis based on the placement proceeds used to fund the purchase price and transaction costs associated with the acquisition.

Cleanaway said this provides the business with an opportunity to immediately internalise existing volumes and acquire “attractive” pro forma FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $21.4 million.

The acquisition also eliminates an unfavourable contract provision for Cleanaway in relation to GRL where payments to GRL exceeded receipts from councils (this contract was acquired as part of the Suez acquisition).

Cleanaway also said this deal would allow it to leverage its geographically diverse network to capture organics share, with GRL and a further planned Lucas Heights facility providing Sydney-wide processing capability.

How is it going to pay for this?

Cleanaway is undertaking a fully underwritten placement of new Cleanaway shares to eligible institutional investors to raise $350 million.

The offer price is $2.50, which is a 7.7% discount to the last closing price of $2.71 per share.

This will result in around 140 million new shares being issued, representing 6.8% of its existing issue capital.

With the share purchase plan, eligible Cleanaway shareholders will be able to subscribe for up to $30,000 of new shares. It’s intended to raise up to $50 million.

Cleanaway share price snapshot

Cleanaway shares are currently halted at $2.71 each. They have dropped 14.5% this year to date, but are up almost 6% over the past 12 months.

The post Looking to buy Cleanaway shares? Here’s what you need to know about the company’s latest acquisition appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cleanaway Waste Management Ltd right now?

Before you consider Cleanaway Waste Management Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cleanaway Waste Management Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of August 4 2022

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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 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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4 ways emotional intelligence can supercharge your ASX shares: expert

Woman on her laptop thinking to herself.Woman on her laptop thinking to herself.

Experts are constantly banging on about focusing on company fundamentals.

It’s wise advice, but it naïvely assumes a share market that is completely efficient. That is, everyone behaves rationally according to all the public information available.

Investors know from their experience just in 2022 how false this is.

Emotions have a huge impact on how and where ASX shares go. It might be painful for some to admit, but it’s true — because everyone participating is human.

To understand what goes on with stocks outside of company fundamentals, AMP Ltd (ASX: AMP) chief economist Dr Shane Oliver this week pointed out how investors can be more emotionally intelligent.

Recognise everyone else is irrational

The first step is to admit that share prices and investors do not behave rationally.

“Recognise that investment markets are not only driven by fundamentals, but also by the often-irrational and erratic behaviour of an unstable crowd of investors,” Oliver said on the AMP blog.

“The key here is to be aware of past market booms and busts so that when they arise in the future, you understand them and do not overreact.” 

By ‘overreact’, Oliver is referring to behaviour like selling everything during a market bust or piling onto “unstable bubbles”.

Recognise you are irrational, like everyone else

By natural extension, the second step is to acknowledge that you, yourself, are impacted by emotions.

“In other words, be aware of how you are influenced by lapses in your own logic and crowd influences,” said Oliver.

“For example, you could ask yourself: ‘Am I highly affected by recent developments? Am I too confident in my expectations? Can I bear a paper loss?’”

Pick a strategy and stick with it

The next action is to choose an appropriate investment methodology according to your own taste and appetites.

And hold on tight for the long term.

“To guard against emotional responses, choose an investment strategy which can withstand inevitable crises whilst remaining consistent with your financial objectives and risk tolerance,” said Oliver.

“Then stick to this even when surging share prices tempt you into a more aggressive approach, or when plunging values suck you into a defensive approach.”

If you must fiddle, go contrarian

The last piece of advice is to run in the opposite direction to the herd.

“If you are tempted to trade, do so on a contrarian basis,” said Oliver.

“Buy when the crowd is bearish, sell when it is bullish. Extremes of bullishness often signal eventual market tops, and extremes of bearishness often signal bottoms.”

Successful investing calls for “going against the crowd” at extreme times, he added, and monitoring investor sentiment research can assist. 

“But also recognise contrarian investing is not foolproof,” said Oliver.

“Just because the crowd looks irrationally bullish (or bearish) doesn’t mean it can’t get more so.”

The post 4 ways emotional intelligence can supercharge your ASX shares: expert appeared first on The Motley Fool Australia.

Should you invest $1,000 in Amp Ltd right now?

Before you consider Amp Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Amp Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of August 4 2022

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Motley Fool contributor Tony Yoo 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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Is the Wesfarmers share price in the buy zone ahead of next week’s earnings result?

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.

The Wesfarmers Ltd (ASX: WES) share price will be one to watch in the coming week. The S&P/ASX 200 Index (ASX: XJO) giant is set to release its financial year 2022 earnings next Friday.

Could now be the time to jump in on the retail-focused conglomerate behind such businesses as Bunnings, Kmart, Officeworks, and Priceline?

At Friday’s close, shares in Wesfarmers were going for $48.92 apiece, 0.74% higher than their previous closing price. Meanwhile, the ASX 200 lifted 0.02% on Friday.

So, what are brokers forecasting for the Wesfarmers share price? Let’s take a look.

Do Wesfarmers shares boast 20% upside ahead of earnings?

The Wesfarmers share price could be set for growth, with broker Morgans tipping a potential 20% upside.

The broker likes the company’s offerings, which it dubbed “one of the highest quality retail portfolios in Australia”, my Fool colleague James Mickleboro reports. It also thinks highly of Wesfarmers’ management team.

And it’s backed up its praises with equally high expectations. The broker has a $58.40 price target on Wesfarmers’ shares.

It has also tipped the company to pay out $1.65 per share of fully franked dividends in financial year 2022.

That presumably means it expects Wesfarmers’ final dividend to come in at 85 cents after the company handed investors 80 cents per share in March.

Looking further into the future, Morgans predicts Wesfarmers will pay out $1.81 per share in dividends this financial year.

The optimistic outlook likely comes as a relief for embattled investors. The retail conglomerate’s stock has tumbled 18% since the start of 2022. It has also dumped 26% over the last 12 months.

For comparison, the ASX 200 Index has also fallen 6% year to date and 5% since this time last year.

The post Is the Wesfarmers share price in the buy zone ahead of next week’s earnings result? 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 August 4 2022

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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 positions in and has recommended Wesfarmers 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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