Day: 8 October 2022

Why analysts say these excellent ASX growth shares are buys
If you’re searching for growth shares to buy, then two ASX shares listed below could be worth considering.

Both have been named as buys by analysts and tipped to have material upside potential. Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share that has been named as a buy is Domino’s.

It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions.

And while the company is have a difficult time at present, analysts at Morgans believe investors should stick with the company. Particularly given its very positive long term outlook. It commented:

DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world. […] Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.

Morgans has an add rating and $90.00 price target on Domino’s shares.

Xero Limited (ASX: XRO)

Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting platform provider to small and medium sized businesses globally.

Xero has been on form again this year despite the tough economic environment. For example, in FY 2022 the company reported a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.

Despite this, the Xero share price has been sold off along with the rest of the tech sector. Goldman Sachs sees this as a buying opportunity for investors. Earlier this year it said:

Following the recent underperformance (absolute/relative), we see an attractive entry point into what is a compelling global growth story and our preferred large cap technology name in ANZ.

Since then its shares have fallen even further, which is likely to have left Goldman’s analysts licking their lips. Particularly given their believe that the company is “well-placed to navigate this uncertainty given the stickiness & importance of its software.”

The broker has a buy rating and $111.00 price target on Xero’s shares.

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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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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8 October 2022
Could oversold ASX growth shares now be a buying opportunity for value investors?
Value investing is where people buy good quality companies whose share prices have fallen below the intrinsic value of the businesses.

As per our Foolish guide to value investing:

Investors who use the value investing strategy hope that a company’s share price will rise as more people come to appreciate the true intrinsic value of the company’s fundamental business.

In the year to date, ASX growth shares have been smashed as inflation and interest rates rise.

Growth shares are typically young companies with debt. They’re usually highly leveraged because they’re growing, so they’ve needed to borrow. Some aren’t even profitable yet — but as the share market trades on future performance — their share prices have risen, hence the reference to ‘growth shares’.

Which ASX growth shares are looking good value?

Value investors love buying the dip and using dollar-cost averaging to build their long-term holdings. And you could say we’ve seen a dip in share values this year, right?

The S&P/ASX 200 Index (ASX: XJO) is down 11% and the S&P/ASX All Ordinaries Index is down 12% in the year to date.

Much worse, the S&P/ASX All Technology Index (ASX: XTX) is down 33%. (Australian tech stocks are typically considered growth shares.)

Two experts reckon many high-quality ASX growth shares have been oversold and are now attractive buying opportunities.

The qualifier there is high quality.

As GMO’s head of focused equity, Tom Hancock, points out: ” … growing quality companies … have an extra layer of protection in rising rate environments because they are less reliant on capital markets.”

Hancock writes on Livewire: ” … this year has presented an opportunity for value investors to take a fresh look at growth companies, especially quality growth companies.”

In another Livewire article, Tim Richardson of Pengana International Equities Limited says there has been “an indiscriminate sell-off in growth companies”, and high-quality stocks have been caught up in it.

Richardson writes:

The indiscriminate sell-off in growth companies this year has extended beyond those with little or no cash flow and dubious business models.

Quality growth stocks across the board have underperformed value stocks, leaving some great companies priced at more attractive valuation levels. This implies higher potential returns over the medium-to-long term.

Richardson points out that many high-quality growth shares are exposed to new, long-term trends caused by COVID-19. He says:

Working from home is here to stay. This brings growth opportunities for a wide range of disruptive businesses as people continue to work and shop at home, whilst consuming media, entertainment and dinner ‘from the couch’.

The decarbonisation of the global economy is now irrevocably underway, accelerated by the US Inflation Reduction Act.

Decarbonisation benefits companies in a range of sectors (e.g. electric vehicles, green project finance and renewable energy technology) that enjoy low sensitivity to the business cycle.

While neither Richardson nor Hancock reveal any specific growth stocks they like, my Foolish colleague Kate identifies several companies benefitting from these trends in her article, What is a growth stock and how to choose one.

Companies leveraged to the work-from-home trend include cybersecurity companies Tesserent Ltd (ASX: TNT) and Prophecy International Holdings Limited (ASX: PRO), workflow platform provider Whispir Ltd (ASX: WSP), and CV Check Ltd (ASX: CV1), which helps companies bring employees on board.

Kate also writes that decarbonisation is benefitting companies in the hydrogen sector, such as Pure Hydrogen Corporation CDI (ASX: PH2).

Hancock said he and his team have been buying quality ASX growth shares this year.

Hancock says:

This year’s gyrations in growth stocks have created an interesting opportunity for our Quality Strategy in which we have been able to acquire shares in high-quality growth companies at prices that have seemed to us to overplay the role of rates in determining investment results.

The post Could oversold ASX growth shares now be a buying opportunity for value investors? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Whispir Ltd. The Motley Fool Australia has recommended CV Check Ltd and Whispir 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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8 October 2022
3 high quality ETFs for ASX investors to buy next week
If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at?

Listed below are three high quality ETFs that could be worth considering. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF that could be a buy is the BetaShares Global Cybersecurity ETF. This fund provides investors with the opportunity to invest in the cybersecurity sector. This means you’ll be buying companies such as Accenture, Cisco, Cloudflare, Crowdstrike, and Palo Alto. Due to the growing threat of cyberattacks globally and the damage that these attacks can do (just ask Optus!), these companies look well-placed to benefit from increasing demand for cybersecurity services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to look at buying is the BetaShares NASDAQ 100 ETF. This ETF allows investors to buy many of the highest quality companies in the world in one fell swoop. That’s because the BetaShares NASDAQ 100 ETF is home to the 100 largest non-financial shares on the famous NASDAQ exchange. Among the companies you’ll be investing in are Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, and Tesla. And with the index down materially this year, now could be an opportune time to make a long term investment.

iShares Global Consumer Staples ETF (ASX: IXI)

A final ETF for investors to buy next week is the iShares Global Consumer Staples ETF. This ETF gives investors access to many of the world’s largest global consumer staples companies. Given that these companies manufacture and sell products that are always in demand with consumers, they could be good option in the current uncertain economic environment. Among the fund’s holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

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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 and BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS, BETANASDAQ ETF UNITS, and iShares Global Consumer Staples 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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8 October 2022
Were ASX 200 bank shares a safe place to park cash in Q1?
The first quarter of FY23 was a green period for ASX 200 bank shares overall.

They may have had a terrible month in September, but for the three months of Q1 FY23 they all trended up (or remained steady in the case of Commonwealth Bank of Australia (ASX: CBA)).

The Westpac Banking Corp (ASX: WBC) share price rose by 6.3% over the three months to 30 September.

National Australia Bank Ltd (ASX: NAB) shares went up 4.7%. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price went up 4.4%. CBA went nowhere — 0% movement by the end of the period.

By comparison, the S&P/ASX 200 Index (ASX: XJO) lost 1% over the period.

Does this mean ASX 200 bank shares are safe?

The word ‘safe’ is very subjective in share market investing. However, if you asked most Australians to name a few safe and reliable blue-chip shares, odds are they’ll mention at least one of the big four banks.

ASX 200 bank shares have a reputation for being long-established and profitable companies. They are generally considered to be great ASX dividend shares and many retiree investors will attest to that.

So, relatively speaking, one might consider them safe stocks.

As has been said by many commentators before, the big four Aussie banks are likely “too big to fail”.

ASX bank dividends are coming up

If you define safety as regular and reliable dividends, well, that’s what the ASX 200 bank shares are known for. So, if you parked your money in banks in Q1, you can look forward to some dividend income soon.

Three banks will announce dividends soon — ANZ on 27 October, Westpac on 7 November, and NAB on 9 November.

As we’ve previously reported, Citi expects the final NAB dividend to be 77 cents. This follows an interim dividend of 73 cents. All up, $1.50 per share for the full FY22. Based on today’s NAB share price of $30.14, this equates to a fully franked annual dividend yield of 7.1%.

Citi tips ANZ to declare a 72-cent final dividend, bringing the full dividend for FY22 to $1.44 per share. Based on the current ANZ share price of $24.29, this will mean a fully franked 8.5% annual dividend yield.

Goldman is forecasting a 62-cent final dividend from Westpac, bringing its full-year FY22 dividend to $1.23. Based on the current Westpac share price of $21.88, this will mean a fully franked yield of 8%.

What do the experts think of ASX 200 bank shares?

As reported on Livewire, Morgans, Jarden, and JP Morgan all rate NAB as their preferred banking stock.

Goldman Sachs analysts Andrew Lyons and John Li say Westpac is their pick for four main reasons.

Firstly, the company’s performance is strongly leveraged to rising interest rates. They also note superior cost management, continuing business investment, and “supportive share price valuations”.

Brad Potter, head of Australian equities at Tyndall Asset Management, expects the banks’ net interest margins (NIMs) to “continue to increase strongly over the next six to 12 months”, which will lead to “decent earnings growth”.

The wholesale Tyndall Australian share fund holds all four ASX 200 bank shares. It’s overweight in Westpac and ANZ shares and underweight in CBA shares.

Potter says: “CBA arguably deserves to trade at a premium to the other three banks, but the premium it’s trading on is astronomical.”

What will happen to ASX 200 bank shares in a recession?

There’s been lots of speculation about a potential recession in Australia or the United States soon.

Potter says:

In a recession, I don’t think the banks will be impacted particularly badly, particularly given their
very strong balance sheets, capital liquidity and provisioning levels.

But from a sentiment perspective, banks get sold off during a recession. And that’s why,
despite the fact we’ll get decent earnings growth coming through in the next six to 12 months,
their share prices are probably not reacting very well.

The post Were ASX 200 bank shares a safe place to park cash in Q1? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs and JPMorgan Chase. 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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8 October 2022
How big will the Woodside dividend be in 2023?
Last week was a good one for Woodside Energy Group Ltd (ASX: WDS) shareholders, with the market giving them a couple of gifts.

The first was a stronf rise in the Woodside share price after oil prices climbed again in response to news that OPEC will cut production by 2 million barrels per day in November.

Woodside dividend

Another gift that shareholders received was the energy giant’s latest interim dividend.

In August, when Woodside released its half year results, the company reported a massive 414% increase in underlying net profit after tax to US$1,819 million. This was driven by higher realised prices and the addition of the BHP Group Ltd (ASX: BHP) petroleum assets.

In addition, the company generated US$2,568 million of free cash flow during the half, which allowed the Woodside board to declare a fully franked interim dividend of 109 US cents per share or 160 Australian cents per share.

This represented 80% of underlying net profit plus 80% of the merger completion payment adjusted for working capital, which was the equivalent to returning approximately 81% of free cash flow.

Are there more big paydays to come?

According to a recent note out of Citi, its analysts are expecting more of the same in the second half and in FY 2023.

In respect to the former, the broker has pencilled in a fully franked full year dividend of 325 Australian cents per share. This suggests a final dividend in the region of 165 Australian cents per share for the second half, which alone represents a very generous 4.7% yield.

What about in 2023?

Looking even further ahead, Citi is forecasting more big dividends in FY 2023 for Woodside shareholders.

It is expecting the energy company to pay a 360 Australian cents per share fully franked dividend. This will mean a massive 10.3% dividend yield based on the latest Woodside share price.

Citi also sees modest upside for its shares at present. It currently has a buy rating and $36.50 price target on them.

The post How big will the Woodside dividend be in 2023? appeared first on The Motley Fool Australia.

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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 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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8 October 2022
Could dark clouds be gathering for ASX 200 coal shares?
ASX 200 coal shares have soared ahead in the year to date, but what’s the outlook for the future?

ASX 200 coal shares include New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC).

Whitehaven shares have soared 320% year to date, while New Hope shares have lifted 207%.

ASX coal share prices are closely linked to the price of coal. Whitehaven Coal reported a record realised coal price of $325 per tonne in FY22. New Hope also noted coal prices are “at record levels” in its 2022 financial results presentation.

So let’s take a look at the outlook for ASX coal shares.

What’s ahead for the coal price?

New Hope shares rose 1.18% today while Whitehaven Coal shares jumped 4.78%.

ANZ analysts are tipping that a boost in Chinese coal production could weigh on coal prices. However, European demand is expected to be strong.

In a research note on Friday, ANZ senior commodity strategist Daniel Hynes and commodity strategist Soni Kumari said:

Coal prices face upward pressure from strong European demand, though increasing domestic production in China could weigh on prices ahead of the peak heating demand season.

Strategists highlighted Europe’s energy crisis “is likely to prompt power utilities to switch from gas to coal”, which they said “could increase competition for seaborne coal. They added:

Chinese coal imports have slowed in recent months due to strong domestic production. There could be some relief as China and India import more Russian coal.

This week, a Federal Industry Department quarterly resources energy report had a mixed outlook on the coal price.

The report forecasts thermal coal to rise from US$245 a tonne in FY22 to US$309 a tonne in FY23.

However, the metallurgical coal price is expected to drop from US$404 per tonne in FY22 to US$283 per tonne in FY23.

Thermal coal export value is predicted to lift nearly 35% from $46 billion in FY22 to $62 billion in FY23. However, the metallurgical coal export value is forecast to decrease 12% from $66 billion to $58 billion. The report said:

Australian thermal coal prices remain extremely high, as European nations look to build stockpiles ahead of the Northern Hemisphere winter.

The exclusion of large quantities of Russian coal from markets in the Northern Hemisphere could inflate coal prices for years to come.

Share price snapshot

Whitehaven Coal shares have soared 228% in the past year, while New Hope shares have lifted 167%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 7% in the past year.

The post Could dark clouds be gathering for ASX 200 coal shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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8 October 2022
Did the Bitcoin price outperform the ASX 200 in the first quarter?
Over the quarter just past, the Bitcoin (CRYPTO: BTC) price hit lows of US$18,290 and a peak of US$25,136.

While that may sound volatile, it’s actually considered a fairly tight trading range for BTC.

The world’s first crypto kicked off the quarter on 1 July trading for US$19,269. By the end of the day on 30 September, the Bitcoin price stood at US$19,600. (Those prices will vary some depending on your time zone.)

That put the token up 1.8% over the quarter.

So, to answer the question posed in our title, yes, the Bitcoin price outperformed the S&P/ASX 200 Index (ASX: XJO).

The benchmark index shed 1.4% over the quarter. Though, to be fair, that figure doesn’t include any dividend payouts that would have been made by some of the index’s constituents over the three months.

Why did the Bitcoin price outperform?

For most of this year, the Bitcoin price has tended to magnify the moves we’ve seen in share markets.

When the ASX 200 heads up 1%, we often see Bitcoin gain two or three times as much. And the same happens in reverse.

There’s no single concrete reason why Bitcoin edged higher over the quarter while the ASX 200 edged lower. But one compelling cause looks to be that many of the speculators – or the so-called weak hands – sold their holdings as the token plunged lower this year.

Remember, it was less than a year ago, on 10 November 2021, that the Bitcoin price breached US$68,789. That was when investors still believed interest rates would remain at historic lows for several years to come.

Yet despite rates continuing to rise in Q1, Bitcoin wasn’t smashed.

Commenting on the crypto’s performance in September, Stephane Ouellette, CEO of FRNT Financial Inc, said “the ‘fast-money’ speculative crowd may be losing their influence on the space”.

As for the current quarter, the Bitcoin price is now at US$19,993, up 2% since 30 September.

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Motley Fool contributor Bernd Struben 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 Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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8 October 2022
Which has more upside, Allkem or Pilbara Minerals shares?
Two of the best performers on the ASX 200 index this year have been Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) shares.

Since the start of 2022, the Allkem share price has risen 32% and the Pilbara Minerals share price has risen an even stronger 58%.

This compares favourably to the ASX 200 index, which is down 11% over the same period.

Why are Allkem and Pilbara Minerals shares outperforming?

The key driver of these gains has been sky high lithium prices.

Unlike the growing number of lithium explorers on the Australian share market, these two companies are already pulling significant quantities of lithium out of the ground and benefiting from this strong pricing.

In fact, in FY 2022, Allkem reported a profit after tax of US$337.2 million, up from a net loss of US$89.5 million a year earlier.

And over at Pilbara Minerals, it reported a profit after tax of A$561.8 million compared to a loss of A$51.4 million in FY 2021.

The good news for investors is that with lithium prices tipped to remain strong for the foreseeable future and their production continuing to increase, brokers are tipping Allkem and Pilbara Minerals shares to keep on rising.

But which one can rise highest from here?

According to a recent note out of Macquarie, its analysts have an outperform rating and $21.00 price target on Allkem’s shares. Based on the current Allkem share price of $14.74, this implies potential upside of 42% for investors over the next 12 months.

As for Pilbara Minerals, the team at Macquarie has an outperform rating and $5.60 price target on its shares. This implies modest upside of 3.3% for investors based on the current Pilbara Minerals share price of $5.42.

Based on what Macquarie is saying, Allkem is the lithium share to buy right now.

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Motley Fool contributor James Mickleboro has positions in Allkem 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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8 October 2022
Is ASX 300 healthcare company Incannex profitable?
Healthcare share Incannex Healthcare Ltd (ASX: IHL) was added to the S&P/ASX 300 Index (ASX: XKO) last month.

The company is a clinical-stage pharmaceutical company with a focus on developing medicinal cannabinoid products and psychedelic therapies to help those with unmet medical needs.

Speaking on the company’s inclusion in the index, Incanncex CEO and managing director Joel Latham said:

We’re delighted to be … listed among the largest and most-recognisable companies in Australia.

Being listed in the index is a precursory investment condition for many domestic and international investment institutions so we are excited for the possibilities this recognition may bring.

But does adding the healthcare share to the ASX 300 expand the index’s unprofitable constituents? Let’s take a look at the company’s balance sheet to find out.

Is ASX 300 healthcare share Incannex profitable?

Healthcare share Incannex is among 16 shares added to the ASX 300 in the September quarterly rebalance. And the company is one of many being included in the rebalance that isn’t turning a profit.

Incannex brought in $788,654 of income in financial year 2022. However, that was nowhere near enough to cover the company’s costs.

In fact, it wasn’t even a third of the company’s advertising and investor relations spend – sitting at $2.7 million. Incannex also forked out $5.3 million on research and development and $2 million on employee salaries and benefits.

All in all, the ASX 300 healthcare company posted a total after-tax loss of $14.9 million for financial year 2022.

Though, it ended the period with $37.5 million of cash and no debt, meaning it’s not in dire need of capital.

Its cash position was bolstered back in April when it underwent a $24 million options exercise program. Additionally, the company listed on the Nasdaq in March.

Finally, Incannex finalised its acquisition of APIRx Pharmaceuticals in August.

Sadly, the company’s productive year hasn’t been reflected in its share price’s performance.

The stock has fallen 51% in 2022 so far to trade at 32 cents right now, including a 14% gain on Friday. That’s 0.6% higher than it was this time last year.

For comparison, the ASX 300 has slumped 11% year to date and 7% over the last 12 months.

The post Is ASX 300 healthcare company Incannex profitable? appeared first on The Motley Fool Australia.

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- Why has the Incannex share price rallied 20% in 2 weeks?
- Have Incannex Healthcare shares been a good investment in 2022?
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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8 October 2022
There were big winners and losers among ASX hydrogen shares in Q1. Here’s the lowdown
There was no clear direction for ASX hydrogen shares in the first quarter of financial year 2021. Though, many of the market’s favourites posted notable movements.

As some jumped close to 70%, others dumped a quarter of their value.

And while all that was happening, the broader market stayed relatively flat. The benchmark All Ordinaries Index (ASX: XAO) fell just 1% over the three months ended 30 September.

So, what went on with some of the market’s most notable ASX hydrogen shares in the September quarter? Let’s take a look.

Peaks and troughs for ASX hydrogen shares in Q1

ASX hydrogen shares put on a mixed performance over the first quarter, with some, like Frontier Energy Ltd (ASX: FHE), posting major gains.

The Frontier Energy share price lifted 68% over the period, closing September at 37 cents.

The company worked to secure a water supply needed to produce green hydrogen using energy from its Western Australia-based Bristol Springs Solar Project.

Its agreement with Water Corporation – announced on Thursday – will save the company from kicking off its back-up plan – building a desalination facility.

The Province Resources Ltd (ASX: PRL) share price also had a great quarter, gaining 54% to trade at 8 cents.

The big news from the company behind the HyEnergy Project last quarter came in August when it announced it had secured an additional 2,217 square kilometres of land for the project.

The Pure Hydrogen Corporation Ltd (ASX: PH2) share price also had a good run in the September quarter, gaining 23% to close the period at 27 cents.

However, the quarter wasn’t a good one for every major ASX hydrogen share.

The Hazer Group Ltd (ASX: HZR) share price dumped 25% over the period, slumping to trade at 57 cents.

The major drag on the stock was news a critical part of its demonstration plant had failed, delaying the company’s planned hydrogen production until 2023. The stock fell 17% on the back of the news.

And while most of its income comes from non-hydrogen sources, the S&P/ASX 200 Index (ASX: XJO) iron ore giant behind hydrogen-focused Fortescue Future Industries, Fortescue Metals Group Limited (ASX: FMG), saw its share price fall 4% last quarter.

The post There were big winners and losers among ASX hydrogen shares in Q1. Here’s the lowdown appeared first on The Motley Fool Australia.

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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 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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8 October 2022