Day: August 22, 2022

2 wonderful ETFs to buy for portfolio diversification

ETF in written in different colours with different colour arrows pointing to it.

ETF in written in different colours with different colour arrows pointing to it.

If you’re wanting to diversify your portfolio with some exchange traded funds (ETFs), then you could do a lot worse than the two ETFs listed below that trade on the Australian share market.

Both of these ETFs provide investors with a large basket of shares from across the globe. Here’s why they could be top options for investors right now:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF for investors to look at is the iShares Global Consumer Staples ETF.

This ETF has been designed to measure the performance of the world’s leading consumer staples companies. These are the companies that produce or sell essential everyday products such as food, tobacco, and household items.

The beauty of these products is that demand for them is relatively consistent whatever is happening in the economy. As a result, given the current economic environment, it could be seen as a good option for investors that are looking for lower risk options.

Among its 100+ holdings are household names such as Coca-Cola, Coles Group Ltd (ASX: COL), Colgate-Palmolive, Diageo, L’Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

This means that investors can participate in the long-term growth potential of international economies in one fell swoop.

Vanguard believes the ETF could be suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 2 wonderful ETFs to buy for portfolio diversification 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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has positions in and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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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Link share price dips despite takeover nod

Projection of two hands being shaken on a deal.

Projection of two hands being shaken on a deal.

The Link Administration Holdings Ltd (ASX: LNK) share price ended the day lower by more than 2% even though shareholders just gave approval for the takeover.

For readers that didn’t know, Dye & Durham is trying to buy Link. It originally offered $5.50 per share, but then it reduced its offer to $4.81.

The reduction in the offer price acknowledged the movements in financial markets and the trading value of the Link share price and the PEXA Group Ltd (ASX: PXA) share price since the scheme was agreed upon in December 2021.

The offer price of $4.81 per share will be reduced by any special dividend paid by Link. The board said it currently intends to pay a fully franked special dividend of 8 cents per share.

Under the scheme implementation deed, Dye & Durham also agreed that Link shareholders can receive the net sale proceeds of up to 13 cents per Link share from the sale of Link’s banking and credit management business if it is sold and proceeds are received by Link prior to, or up to 12 months, after the implementation of the deal

The vote

Link’s directors recommended that shareholders vote in favour of the deal.

The board said the reduced offer represented a reasonable premium to Link’s last ‘undisturbed’ share price.

Directors pointed out that no superior proposal has emerged and the transaction provides certainty of value for Link shareholders and that investors will no longer be exposed to the risks associated with Link’s business.

The board also noted that the Link share price will continue to be subject to market volatility and may fall if the transaction is not implemented and there isn’t another offer.

The independent expert concluded that the offer is fair and reasonable and in the best interests of investors.

Link revealed that 98.71% of the votes cast by Link shareholders were in favour of the resolution to approve the scheme. It also said that 71.21% of Link shareholders present and voting voted in favour of the takeover.

What’s next?

The company noted that the offer remains subject to certain conditions, including receiving regulatory approvals and the approval of the Supreme Court of NSW at the hearing scheduled on 9 September 2022.

Assuming everything goes according to plan, Link will apply for its shares to be suspended from ASX trading from close of trading on 9 September 2022.

Shareholders will then be paid the special dividend of 8 cents per share, if declared, on 19 September 2022. Shareholders will be paid for their shares on 27 September 2022.

Link share price snapshot

Since the beginning of 2022, Link shares have fallen just over 20%.

The post Link share price dips despite takeover nod 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 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 Link Administration Holdings Ltd and PEXA Group Limited. 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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Why did the Province Resources share price pop then flop on Monday?

Falling ASX share price represented by young male investor sitting sadly in front of a laptop.Falling ASX share price represented by young male investor sitting sadly in front of a laptop.

The Province Resources Ltd (ASX: PRL) share price finished Monday in the red, despite outperforming during the day.

Following a company announcement this morning, the mineral explorer’s shares wavered between 14.5 cents and 16 cents, only to land on 13.5 cents at the closing bell.

At those highs, today’s return extended gains to more than 59% for the past month of trade, as seen below (returns from March to date).

TradingView Chart

What did Province announce?

After requesting a voluntary suspension in the trading of its securities on 15 August, the quote for Province Resources shares were today reinstated.

The move coincided with Province’s announcement that it has negotiated key terms with Total Eren Australia Pty Ltd to co-develop the HyEnergy green hydrogen project.

Province says that Total Eren is a global renewable independent power producer (IPP). Total Eren owns 3.5 GW of solar and wind farm assets globally.

It is owned in part by TotalEnergies SE (NYSE: TTE), known to be one of the world’s largest energy companies.

The agreement creates a 50:50 structure for the project and identifies key roles moving forward through feasibility stages.

Province CEO David Frances responded to the update. He said the key terms demonstrate the company’s “unique relationships with stakeholders” in the project.

“It also recognises the deep experience and technical capability that Total Eren brings to the table,” he said.

We have ensured that the key terms provide value for Province shareholders and provide the best possible path forward for the project and we look forward to continue our positive relationship with Total Eren.

Further advancements will now be made with the project. This will include key terms laid out as part of the reported deal structure.

Province Resources share price snapshot

In the last 12 months, the Province Resources share price has been on a volatile journey. Nonetheless, Province Resources shares are up 3.57% in that time.

Province Resources closed Monday down 6.9% at 13.5 cents a share.

The post Why did the Province Resources share price pop then flop on Monday? appeared first on The Motley Fool Australia.

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

Before you consider Province Resources 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 Province Resources Ltd wasn’t one of them.

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*Returns as of August 4 2022

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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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Pilbara Minerals share price jumped today as Macquarie tips 80% upside

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipelineThe Pilbara Minerals Ltd (ASX: PLS) share price closed almost 4% higher at $3.17 today, after one broker outlined a very bullish outlook for the ASX lithium share.

Pilbara Minerals is one of the ASX’s largest lithium miners, with a market capitalisation of more than $9.4 billion at the current share price.

The broker Macquarie thinks that the resources company will get a lot bigger over the next 12 months in terms of what investors will value the business.

What does Macquarie think will happen?

Firstly, let’s talk about the price target.

That’s where Macquarie thinks that the Pilbara Minerals share price will be in 12 months from now.

Macquarie has set its price target on Pilbara Minerals at $5.60, up from $4. That implies a rise of close to 80% over the next 12 months.

Why so positive? The broker thinks the lithium price will be stronger for longer than previously expected. This is largely due to the relationship between supply and demand and the current high price of lithium. Macquarie believes demand will outstrip supply in the medium-term.

In addition, the broker thinks that the price difference in lithium between China and regionally will continue until 2024.

Macquarie also increased its forecast for spodumene – a type of lithium ore with a higher level of lithium content which is used for batteries for electric vehicles.

The broker said that its annual price forecast for 2023 climbed by 55% and more than doubled for 2024, 2025 and 2026.

These pricing forecast increases mean that the broker now thinks Pilbara Minerals will generate more earnings in the coming years, with the ASX lithium share having plenty of leverage when lithium prices rise.

According to Macquarie, the Pilbara Minerals share price is now valued at under 5x FY23’s estimated earnings.

Experts confident on the company

Macquarie isn’t the only one that likes the look of Pilbara Minerals.

My colleague Brooke Cooper reported earlier today that TMS Capital’s Henry Jennings believes that lithium shares could benefit from the push towards electric vehicles if the current economic uncertainty fades away.

She also reported on expectations from Citi that Pilbara Minerals could start paying a dividend in FY23 with an initial payment of 29 cents per share in FY23 and then 21 cents per share in FY24.

Pilbara Minerals share price snapshot

Over the past two months, shares in the company have climbed more than 50%, although they are still almost 10% lower than at the start of the year.

Pilbara Minerals is due to report its full-year earnings results tomorrow.

The post Pilbara Minerals share price jumped today as Macquarie tips 80% upside 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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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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