Day: August 26, 2022

Guess which ASX All Ords share rocketed 15% on a rare earths deal with Twiggy Forrest

a young girl wearing a set of airplane wings stands on a tarmac with hands in the air and an excited look on her face as though she is about to take off.a young girl wearing a set of airplane wings stands on a tarmac with hands in the air and an excited look on her face as though she is about to take off.

Andrew ‘Twiggy’ Forrest is known for his foray into ASX-listed investments. On Friday afternoon, the Fortescue Metals Group Limited (ASX: FMG) chair added another S&P/ASX All Ords Index (ASX: XAO) member to his list of holdings.

This time around — instead of dairy products, seafood, or boots — Twiggy is tipping his fortunes into rare earths. These are the metals used to create the magnets used in the motors of electric vehicles and wind turbines.

Which ASX All Ords share is it?

The ASX company in question is Hastings Technology Metals Ltd (ASX: HAS). After returning from a trading halt, shares on Friday surged 15% to $4.94 apiece — a pleasing sight for shareholders.

According to the release, the rare earths explorer has entered into a binding share purchase agreement to acquire part of Neo Performance Materials Inc. Notably, Neo is the owner of the only commercially operational rare earth separation facility in Europe.

The deal will see Hastings grab 8,974,127 shares in the Canadian-listed Neo at a total value of $150 million. This will mean the ASX All Ords share will own 22.1% of the total shares on issue in Neo following the acquisition.

So, you might be thinking: where does Twiggy come into the picture? Well, as part of the announcement, Hasting revealed a $150 million investment from Wyloo Metals, which is part of Forrest’s investment holding company, Tattarang.

The rationale behind Hasting taking a stake in Neo is to potentially create a vertically integrated rare earths company. As the ASX-listed company puts it, a ‘mine-to-magnet’ value chain. Furthermore, this is in anticipation of Europe becoming a major hub of electric vehicle production in the future.

The deal for Twiggy

Regarding the $150 million investment from Wyloo Metals, here are the important details:

  • The investment is for $150 million in exchangeable notes
  • Term is over three years
  • Convertible for Hastings shares at $5.50 apiece
  • Wyloo is entitled to nominate a director to the Hastings board

Coincidentally, the news breaks on the same day that Lynas Rare Earths Ltd (ASX: LYC) revealed record results.

The Hastings share price has outperformed the ASX All Ords over the past year. On Friday afternoon, the company’s shares are 23.5% above where they were a year ago. Meanwhile, the All Ordinaries is down 5.3% over the same timeframe.

The post Guess which ASX All Ords share rocketed 15% on a rare earths deal with Twiggy Forrest 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

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*Returns as of August 4 2022

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Motley Fool contributor Mitchell Lawler has positions in Lynas Corporation Limited. 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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Here are the top 10 ASX 200 shares today

A girl lies in her room while using laptop and listening to headphones.A girl lies in her room while using laptop and listening to headphones.

The S&P/ASX 200 Index (ASX: XJO) recovered its losses from earlier this week today to trade flat week-on-week. The index closed Friday’s session 0.79% higher at 7,104.10 points.

That leaves it within 11 points of where it finished last week’s trade following a disastrous 2% tumble over Monday and Tuesday.

All except one of the ASX 200’s 11 sectors closed higher today. The S&P/ASX 200 Communication Index (ASX: XTJ) was alone in the red, slipping 0.3%.

The S&P/ASX 200 Energy Index (ASX: XEJ) was the top performer, soaring 1.3% despite oil prices falling overnight. The Brent crude oil price slipped 1.9% to US$99.34 a barrel while the US Nymex crude oil price fell 2.5% to US$92.52 a barrel.

The S&P/ASX 200 Materials Index (ASX: XMJ) also rose 1% despite a falling iron ore price. Iron ore futures slumped 0.2% overnight to trade at $104.96 a tonne. Meanwhile, gold futures lifted 0.6% to US$1,771.40 an ounce and all base metals majors ended in the green.

Looking to ASX 200 earnings:

So, which ASX 200 share outperformed all others to be crowned this week’s final top performer? Keep reading to find out.

Top 10 ASX 200 shares countdown

Coming in as Friday’s biggest gainer was none other than the Bega Cheese Ltd (ASX: BGA) share price. The stock surged 12% despite the company posting a 69% year-on-year fall in profits.

Today’s biggest gains were made by these ASX shares:

ASX-listed company Share price Price change
Bega Cheese Ltd (ASX: BGA) $4.18 11.76%
Viva Energy Group Ltd (ASX: VEA) $2.95 6.88%
Qantas Airways Limited (ASX: QAN) $5.18 6.58%
Life360 Inc (ASX: 360) $5.27 4.98%
Champion Iron Ltd (ASX: CIA) $5.50 4.17%
Pilbara Minerals Ltd (ASX: PLS) $3.55 4.11%
Insignia Financial Ltd (ASX: IFL) $3.67 3.97%
Fortescue Metals Group Limited (ASX: FMG) $19.87 3.81%
Breville Group Ltd (ASX: BRG) $22.41 3.27%
Flight Centre Travel Group Ltd (ASX: FLT) $17.07 3.14%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares 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 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 positions in and has recommended Life360, Inc. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Ramsay Health Care 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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Universal Store share price slides lower as earnings tighten in FY22

A young girls clings in fright to a big red slide.A young girls clings in fright to a big red slide.

The Universal Store Holdings Ltd (ASX: UNI) share price slid into the red today following the release of the company’s FY22 results.

At the close on Friday, Universal Holdings shares were down 2.9% for the day, swapping hands at $5 apiece.

Universal Store revenue, profit down in FY22

Key standouts from the company’s earnings results include:

  • Total Sales of $208.0 million, down 1.4% from last year’s result
  • Online sales totalling $35.7 million, up 38% year on year and a margin of 17%
  • Gross profit down 2.1% to $121.3 million, reflecting a margin of 58.3%
  • Underlying earnings before interest and tax (EBIT) of $30.9 million, down 29% year on year
  • Statutory net profit after tax (NPAT) of $20.6 million, down 15% year on year
  • Underlying earnings per share (EPS) of 28.9 cents
  • Final dividend of 10.5 cents per share, bringing total FY22 dividend to 21.5 cents per share

What else happened for Universal?

Despite COVID-19 headwinds, the company came in with a fairly steady result, with total sales declining 1.4% to $208 million.

However, most of the downside was experienced in H1 of FY22, with an overall sales growth of 7.4% in H2 FY22.

Meanwhile, online sales saw double-digit growth of 28.5%, eventually contributing a total of around 17% to total sales.

Despite this, statutory and underlying NPAT each decreased year on year by 15% and 30%, respectively.

Universal also declared a final dividend of 10.5 cents per share, fully franked, bringing the total FY22 dividend to 21.5 cents.

Management commentary

Speaking on the results, Universal Store CEO Alice Barbery said:

Despite lingering COVID-19 challenges during the year, I’m proud of how our team has responded,
culminating in a pleasing FY22 result.

FY22 was a tale of two halves with H1 impacted heavily by mandated store closures and evolving variants of COVID-19, including a challenging Christmas and new year period with the emergence of Omicron. Conditions in H2 progressively recovered with sales and foot traffic improving month on month as restrictions eased and social events and gatherings re-emerged.

Barbery said Universal Store continued “to evolve into a larger, more sophisticated, and more robust business following successful implementation of various key strategic initiatives and investments”.

What’s next for Universal Store?

The company says that FY23 has already started strong, with total sales already up 54% on this time last year to $12.5 million.

It also says that fewer lost store days would be of benefit to earnings in FY23. Moreover, B&M Store sales growth reached 70% on this time last year, and it expects to open five new stores in H1 FY23.

It did not provide specific earnings guidance.

The post Universal Store share price slides lower as earnings tighten in FY22 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 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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3 ASX All Ords shares that saw major price action on FY22 results

A man holds up his hand with 3 fingers upA man holds up his hand with 3 fingers up

It turned out to be a dream end to the trading week for the All Ordinaries Index (ASX: XAO) on Friday. At the market close, the All Ords index had gained a healthy 0.7% to finish at 7,345.8 points.

But it was an even better session for some All Ords shares, largely thanks to the ongoing avalanche of earnings reports.

So let’s check out three All Ords shares that saw major share price action on the back of FY22 earnings.

Three All Ords shares with big price moves on Friday

Cobram Estate Olives Ltd (ASX: CBO)

Cobram Estate shares had a very pleasing day of trading this Friday. The All Ords olive oil producer rocketed 8.93% to close at $1.525 a share. This morning, Cobram announced $140 million in group sales for FY22, which puts the company at a 49% market share of extra virgin olive oil in Australian supermarkets.

However, total revenue fell 44.3% from FY21 to $165.5 million. Earnings before tax (EBT) also fell by 49.5% to $2.5 million. On the bottom line, Cobram reported a net loss after tax of $0.7 million, down from the $35.2 million profit reported for FY21.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

Next up is automotive dealership company Peter Warren. Peter Warren shares initially bounced as high as $2.67 this morning — a 5.1% gain — but finished the day up 0.79% at $2.56. This follows the company dropping its FY22 earnings this morning, too. 

For FY22, Peter Warren reported revenue growth of 5.6% to $1.71 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20.4% to $130.1 million, while profits before tax also rose by 6.8% to $80.8 million.

Superloop Ltd (ASX: SLC)

Superloop shares also saw some major price action today. But unlike the other ASX All Ords shares here, this one disappointed investors. Superloop shares closed the day down a nasty 5.63% at 75.5 cents each.

Clearly, the market didn’t like what the company had to say this morning about FY22.

Superloop reported revenue growth of 137% for FY22 to $262.5 million. Underlying EBITDA was also up significantly, rising 37% to $25.4 million.

However, the company’s gross margin fell from 27.6% in FY21 to 23.5% in FY22. Superloop’s net loss after tax widened to $52.6 million for the financial year, up 82.5% from FY21’s loss of $32 million.

The post 3 ASX All Ords shares that saw major price action on FY22 results 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 Sebastian Bowen 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 PWR Holdings Limited and SUPERLOOP FPO. The Motley Fool Australia has positions in and has recommended PWR Holdings 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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