Month: October 2022

Here are the 10 most shorted ASX shares
At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted share on the ASX after its short interest rose to 15.5%. Concerns over the travel market recovery saw Flight Centre’s shares sink to a 52-week low last week.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 13.9%. This betting technology company’s shares appear to have been targeted due to their lofty valuation and its cash burn.
- Block Inc (ASX: SQ2) has seen its short interest rise slightly to 10.6%. Short sellers may be going after this payments company due to tech sector weakness, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry.
- Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up week on week. A short report from a renowned short seller reveals that it is targeting the company largely due to doubts over its DLE technology.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.8%. Valuation concerns and significant weakness in the tech sector are likely to be behind this short interest.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.1%, which is up slightly week on week. Short sellers continue to target this infection prevention company amid concerns over its disruptive business model change in the key US market.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 7.8%. This may be due to concerns over what the uncertain economic backdrop could mean for consumer spending.
- Inghams Group Ltd (ASX: ING) has short interest of 7.8%, which is down slightly week on week. Concerns over higher input costs may be behind this short interest.
- Zip Co Ltd (ASX: ZIP) has seen its short interest rebound slightly to 7.8%. Doubts over the company’s profitability targets have been weighing on sentiment this year.
- Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 7.6%. This fund manager’s shares have dropped 36% in 2022. It appears as though short sellers see more pain ahead.
The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

.

More reading
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 Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/GzpySDU
3 October 2022
Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds
ASX dividend shares could be an interesting place to look for income. Yields on bonds are increasing as interest rates rise. But, dividend yields on ASX dividend shares are also going up.

As share prices go down, it pushes the prospective dividend yield up as well as making the actual valuation more attractive.

Looking at an example of bond yields, the exchange-traded fund (ETF) Vanguard Australian Government Bond Index ETF (ASX: VGB), Vanguard says that the running yield here is 2.89% and the yield to maturity is 3.66%.

I’m going to list a few ASX dividend shares that could provide better income than bonds for investors wanting to invest $5,000.

APA Group (ASX: APA)

This business owns a national gas pipeline, it transports around half of the country’s natural gas usage. It also has various energy generation (gas and renewable) and storage assets.

The yield has been pushed up by APA shares falling by around 20% since early August. It’s expecting to pay a distribution of 55 cents per security, which would be a 3.8% increase compared to FY22. The FY23 distribution yield is expected to be 5.75%.

APA Group has recently committed to reducing its emissions by 30% in gas transmission, reducing emissions intensity by 35% in power generation, and implementing an active program to reduce emissions it can control in electricity transmission.

The business has one of the longest-running consecutive annual dividend increases in the S&P/ASX 200 Index (ASX: XJO).

Collins Foods Ltd (ASX: CKF)

Collins Foods is a major franchisee of KFC outlets across Australia and Europe. It also has a growing Taco Bell network in Australia.

The business has continued to grow its revenue and profit. FY22 revenue increased 11.1% to $1.18 billion, while underlying net profit after tax (NPAT) from continuing operations improved by 25% to $59.7 million.

The ASX dividend share saw its dividend rise by 17.4% to 27 cents per share. At the current Collins Foods share price, it has a trailing grossed-up dividend yield of 4.4%.

It continued to see sales growth in the first seven weeks of FY23, particularly in Europe. KFC Netherlands has seen same-store sales growth of 12.2% and KFC Germany with 19.4% sales growth. It’s planning to open nine to 12 KFC Australia restaurants, two to five KFC Europe restaurants and nine to 12 Taco Bell restaurants. It wants Taco Bell to reach scale within three years.

The broker Morgans, which rates Collins Foods as an add with a price target of $11.50, thinks that Collins Foods will pay a grossed-up dividend yield of 4.6%.

Accent Group Ltd (ASX: AX1)

Accent is an ASX retail share that sells a variety of shoe brands, both owned brands and ones it acts as a distributor for. Examples of the brands include CAT, Dr Martens, Glue Store, Henleys, Hoka, Hype, Kappa, Nude Lucy, Sneaker Lab, Stylerunner, The Athlete’s Foot and Vans.

While it suffered from store closures due to COVID restrictions in FY22, it can benefit from a full year of ‘normal’ trading days in FY23. That may explain some of the 48.9% sales growth that it saw in the first seven weeks of FY23. Its gross profit margin was also “well ahead” of FY22. The business is also hoping to open 50 stores in FY23.

Morgans rates this one as an add as well, with a price target of $2. It thinks the business could pay a grossed-up dividend yield of 10%.

The post Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds appeared first on The Motley Fool Australia.

.

More reading
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 Collins Foods Limited. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool Australia has recommended Accent Group and Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/lVGQ3Jn
3 October 2022
These were the 5 best-performing ASX All Ords shares in September
The S&P/ASX All Ordinaries Index (ASX: XAO) had another treacherous month in September as concerns of rising inflation and interest rates continued to rattle the market.

The ASX All Ords index shed 7.6% across the month to close out September at 6,679 points.

But amongst the sea of red were some standout performers. Let’s check them out.

AMA Group Ltd (ASX: AMA)

Topping the ASX All Ords tables in September was smash repairer AMA Group, which clocked in a 43.8% gain across the month.

Prior to this, 2022 hadn’t been kind to the AMA share price but the company’s FY22 results, which were delivered in late August, may have turned the tide.

Last week, AMA also announced it will be divesting its FluidDrive business for $2.45 million in order to sharpen its focus on the core business.

CogState Limited (ASX: CGS)

Taking out the silver medal is neuroscience technology company CogState, which soared 34.2% in September.

There wasn’t any direct news from CogState during the month. But it appears an announcement from one of its partners, Eisai, sent the market into overdrive.

Eisai revealed that its experimental drug for the treatment of Alzheimer’s disease has helped slow cognitive and functional decline in patients in the early stages of the illness.

While CogState won’t directly benefit from this, it noted that these results could “lead to a general increase in research and development expenditure in respect of Alzheimer’s disease, which may provide additional sales opportunities.”

New Hope Corporation Limited (ASX: NHC)

Rounding out the podium finishes is ASX coal miner New Hope. In fact, it led the way for the ASX 200 in September with a 28.4% rise.

The New Hope share price has been supported by sky-high coal prices as demand continues to outpace supply.

New Hope also lifted the lid on a strong set of FY22 results last month. These results were headlined by a 12-fold increase in profits and a bumper dividend.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price continued to set new all-time highs in September, lighting up with a 24.9% gain.

Pilbara shares have been on a tear this year as the hype for ASX lithium shares reaches fever pitch.

During the month, Pilbara announced the results of the ninth auction on its battery material exchange (BMX) platform. The highest bid came in at US$6,988 per dry metric tonne (dmt), surpassing the winning bid of US$6,350/dmt in August.

Bullish broker notes from JP Morgan and Macquarie also boosted the Pilbara Minerals share price in September.

Argosy Minerals Limited (ASX: AGY)

Last but not least, not far behind Pilbara was fellow ASX lithium share Argosy Minerals, which punched in a monthly rise of 21.4%.

During the month, investors were given the opportunity to run the rule over Argosy’s first-half 2022 results, which saw net profit skyrocket 3,015% to $2.7 million.

Argosy also provided an update on drilling works at its Rincon Lithium Project, which are progressing better than scheduled.

The post These were the 5 best-performing ASX All Ords shares in September appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Cathryn Goh 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 CogState Limited. The Motley Fool Australia has positions in and has recommended CogState Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/m4lMNa3
3 October 2022
3 small-cap ASX mining shares ripe for adding now: experts
In a year when most ASX shares have lost value, mining stocks have been the lone light in the dark.

But even they have cooled off in the second half of 2022, due to concerns about recession around the globe. That’s because when economies slow down, commodity prices are the first to plunge.

So as we sit waiting for yet another interest hike on Tuesday, which are the ASX shares involved in the resources sector that are the best buys at the moment?

A panel of Wilson Asset Management analysts answered this question in a recent video:

‘Definitely a buy’ for early-stage miner

Equities dealer Will Thompson said that his team recently met with the management of Centaurus Metals Limited (ASX: CTM).

“It’s a really good company. We really like it,” he said.

“The ability to grow the resource… will then lead to financing discussions… and they’ll update the DFS [definitive feasibility study].”

With the share price down 36% since mid-April, Thompson reckons the valuation is attractive right now.

Centaurus acquired its current flagship project Jaguar from Brazilian giant Vale SA (BMF: VALE3) in 2020, and Thompson suspects that’s not the end of the story.

“They have some interesting relationships with Vale. You’ve got an offtake, and it’s still up for negotiation. At this stage [Centaurus] is definitely a buy.”

Gold miner ‘keeping costs down’

Thompson also rates Emerald Resources NL (ASX: EMR) as a buy.

He admitted gold stocks have been on the nose with the market in recent times.

“They’ve been able to keep their costs down — still keep producing at under $1,000 an ounce.”

Emerald has also acquired “a really interesting” new project named Bullseye.

“They’re also looking at developing a second mine in Cambodia,” said Thompson.

“So we think there’s some good valuation upside there. It’s a buy.”

The Emerald share price is down 4% so far this year, but has picked up more than 20% since a July trough.

Upside to 2023 guidance

Wilson senior equity analyst Shaun Weick likes the indirect resources exposure of NRW Holdings Limited (ASX: NWH).

“Mining services is back!” he said.

“FY 2022 results came in at slightly ahead of expectations and really reflects the worth of the COVID impact being behind these companies.”

In Weick’s view, the outlook for commodity demand remains strong.

“Order books are full, which provides good visibility. We see upside to the FY23 earnings guidance.”

In a tough year, the NRW share price is amazingly 29% higher than where it started in 2022.

Weick also feels the business is in a healthy state financially.

“The balance sheet is net cash, and valuation is screening compelling. We think it’s a buy.”

The post 3 small-cap ASX mining shares ripe for adding now: experts appeared first on The Motley Fool Australia.

.

More reading
- 3 ASX All Ords shares going ex-dividend on Wednesday
- 3 ASX All Ords shares smashing new highs on Monday
Motley Fool contributor Tony Yoo has positions in NRW Holdings 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.

from The Motley Fool Australia https://ift.tt/r5TzdSG
3 October 2022
Coles shares: Buy, hold, or fold?
This year has been a rocky one for S&P/ASX 200 Index (ASX: XJO) consumer staples share Coles Group Ltd (ASX: COL).

At one point, the supermarket operator’s stock had gained 8% year to date. However, after dumping 4.6% on the release of its full-year earnings, it has plunged into the red.

Right now, the Coles share price is $16.43, 8.2% lower than it was at the start of 2022.

Though, that marks a better performance than the ASX 200. The index has slumped 14.7% year to date, while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has dumped 9.6%.

Does the stock look set to continue outperforming then? Well, that depends on who you ask.

Could Coles shares really offer 22% upside?

The Coles share price could be gearing up to either rise or dive, with various brokers tipping it to head in different directions.

Batting for the bears is Goldman Sachs. The broker has hit Coles shares with a $15.60 price target and a sell rating – representing a potential 5% downside.

It believes the company “remains a laggard in digital transformation”, potentially leading to market share losses and further pressure on margins.

And the $300 million sale of its Coles Express business did nothing to quell the broker’s concerns, with Goldman Sachs saying the deal is immaterial.

Morgans, however, disagrees.

It thinks Coles will be able to focus more attention on its core business following the sale, which will result in greater balance sheet capacity, my Fool colleague James reports.

Meanwhile, Citi is said to believe the sale’s proceeds could help the company expand its supermarket network and continue its store renewal program.

The bullish brokers have both slapped Coles shares with buy ratings. Morgans has slapped the stock with $20 price target while Citi goes one better, tipping it to reach $20.10.

That suggests a potential upside of as much as 22%.

The post Coles shares: Buy, hold, or fold? appeared first on The Motley Fool Australia.

.

More reading
Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/IFCzYdV
3 October 2022
Down 30% in 2022: Here’s why I’m holding tight to my Vulcan Energy shares
Not many ASX lithium shares are as divisive as Vulcan Energy Resources Ltd (ASX: VUL). But, with many of its critics toting the company as both hopeful and exciting – albeit a long way from profitability – I’m holding onto my Vulcan shares.

The $1 billion S&P/ASX 300 Index (ASX: XKO) lithium developer differs greatly from its ASX peers. It aims to produce the battery-making material while maintaining a net zero footprint.

The company plans to use renewable energy from its geothermal and lithium brine resource to power its production.

Additionally, the resource is located in Europe, where lithium resources are few and far between and demand for the material is expected to surge.

Finally, the company aims to sell geothermal energy to the grid, thereby reducing Europe’s reliance on Russian energy.

After all that spruiking, some might think Vulcan Energy sounds like the market’s best-kept secret. But that’s likely not the case.

Unfortunately for investors like myself, the Vulcan Energy share price has struggled in recent times. It has dumped 31% year to date and 42% over the last 12 months to trade at $7.50 today.

While there are plenty of reasons to be cautious when it comes to the lithium share, I’m still hopeful.

The ups and downs of my investment

My investment in Vulcan Energy was my first ASX share purchase. It’s likely no surprise, then, that I’ve learnt a lot in my time holding the stock. If I could have that time again, here’s what I’d want to know.

Plenty of ASX 300 shares are yet to turn a profit, but red balance sheets bring additional risks. And as Vulcan Energy isn’t yet producing, the company is far from profitability.

Sentiment for unprofitable companies generally shifts alongside market conditions. Inflationary environments are particularly likely to turn the market away from companies operating in the red.

Investors should, therefore, be prepared to approach unprofitable stocks with realistic expectations of the potential volatility involved.

Additionally, the company’s flagship Zero Carbon Lithium Project represents a world-first. Meaning there is plenty of potential for the company to experience major challenges along its journey to production.

Finally, since Vulcan Energy was targeted by activist short seller J Capital in October 2021, the company’s short position has increased more than 500% to sit at 6.6% at last count.

That seemingly means the market is more pessimistic on the stock than it once was. While Warren Buffett encourages investors to ignore the crowd, such pessimism can be hard to stomach.

I’m still bullish on Vulcan Energy shares

With all that considered, I’m still happy with my investment in Vulcan Energy shares. And I’m not alone in expecting a bright future.

Broker Alster Research has tipped the stock to reach $20, representing a potential 167% upside.

Meanwhile, Medallion Financial Group’s Philippe Bui admits to being bullish on lithium, telling The Bull the company’s technology is “exciting”. However, as Bui prefers producers, he slapped Vulcan Energy shares with a sell.

Such sentiment was earlier heralded by Red Leaf Securities’ John Athanasiou, who said, courtesy of the publication:

In our view, favourable potential exists for Vulcan Energy to become a lithium producer with a zero-carbon footprint … Market sentiment has firmly moved towards conservative profitable operations. We prefer other stocks until sentiment towards risk improves.

Vulcan Energy shares are a complicated investment and will likely experience ups and downs in the coming years, but I plan to stick around for the long haul.

The post Down 30% in 2022: Here’s why I’m holding tight to my Vulcan Energy shares appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources 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.

from The Motley Fool Australia https://ift.tt/X9tYRVv
3 October 2022
5 things to watch on the ASX 200 on Monday
On Friday, the S&P/ASX 200 Index (ASX: XJO) finished another difficult week with a day in the red. The benchmark index sank 1.2% to 6,474.2 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to start the week with a small gain. This is despite another selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% higher this morning. On Wall Street, the Dow Jones was down 1.7%, the S&P 500 dropped 1.5%, and the NASDAQ also tumbled 1.5%.

Oil prices tumble

Energy producers such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough start to the week after oil prices tumbled on Friday. According to Bloomberg, the WTI crude oil price was down 2.15% to US$79.49 a barrel and the Brent crude oil price dropped 2.35% to US$85.15 a barrel. The deteriorating crude demand outlook weighed on prices.

Ramsay rated neutral

The Ramsay Health Care Limited (ASX: RHC) share price fell heavily in September after the private hospital operator’s takeover collapsed. However, the team at Goldman Sachs only believe that this leaves it trading at fair value. This morning the broker resumed coverage on the company with a neutral rating and $59.00 price target. Goldman notes that its “performance recovery [is] still impacted by Covid but with green shoots.”

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price edged higher. According to CNBC, the spot gold price was up 0.2% to US$1,672 an ounce on Friday night. However, this couldn’t stop the precious metal from having its worst quarter since March 2021.

Telstra rated neutral

Goldman Sachs is also sitting on the fence with the Telstra Corporation Ltd (ASX: TLS) share price following an update from the ACCC on the telco giant’s proposed agreement with TPG Telecom Ltd (ASX: TPG). The broker said: “We see slightly more uncertainty in the outcome of the MOCN agreement given balanced views expressed by the ACCC today.” Goldman has a neutral rating and $4.40 price target on Telstra’s shares.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

.

More reading
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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended 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.

from The Motley Fool Australia https://ift.tt/jnBEXGO
3 October 2022
Analysts name 3 ASX growth shares to buy next week
Are you looking to add some growth shares to your portfolio next week?

If you are, three ASX growth shares that could be worth considering are listed below. Here’s why analysts are tipping them as buys:

Airtasker Ltd (ASX: ART)

The first ASX growth share for investors to look at next week is Airtasker. It is Australia’s leading online marketplace for local services, connecting people and businesses. While the company has been around for a decade, it is still barely even scratching the surface of its enormous market opportunity. Management estimates that it has a total addressable market of $600 billion across Australia, the UK, and the US. This compares to its Gross Marketplace Volume (GMV) of $189.6 million in FY 2022, which was up 23.8% on the prior year.

Morgans is a fan and has an add rating and $1.05 price target on its shares.

Altium Limited (ASX: ALU)

Another ASX growth share for investors to look at when the market reopens is Altium. It is an an industry-leading printed circuit board (PCB) design software provider. PCBs are the boards you find inside almost all electronic devices and are integral to their operation. Thanks to Altium’s dominant position in the market, management is very confident in its outlook and is aiming to more than double its revenue to US$500 million by 2026.

Jefferies is positive on the company. It currently has a buy rating and $38.13 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

A final ASX growth share to consider next week is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a world class portfolio of poker machines and digital/mobile games. The latter includes games such as Cashman Casino, Gummy Drop, and RAID, which have helped the company amass ~20 million monthly active users. This is underpinning significant recurring revenues. Aristocrat is also undertaking a share buyback and looking to expand into the real money gaming market.

Citi is a fan of the company and has a buy rating and $40.20 price target on its shares.

The post Analysts name 3 ASX growth shares to buy next week appeared first on The Motley Fool Australia.

.

More reading
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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker 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.

from The Motley Fool Australia https://ift.tt/4XQqEnf
2 October 2022
2 top ETFs for ASX investors to buy in October
If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

That’s because ETFs give you the opportunity to invest in a large group of shares in one fell swoop, which can be a great way to build a diverse portfolio.

But which ETFs should you look at this month? Here are two popular ETFs that could be quality options right now:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be worth considering in October. Particularly given its incredibly poor showing during September, which has left it trading around its lowest levels of the year.

This ETF provides investors with access to the top 100 non-financial shares on the famous NASDAQ stock exchange. This includes the likes of Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla.

BetaShares also highlights that with a strong focus on technology, the ETF provides investors with diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

ETFS S&P Biotech ETF (ASX: CURE)

Another ETF for investors to consider in October is the ETFS S&P Biotech ETF.

This ETF gives investors exposure to the U.S. biotechnology sector. ETFS notes that these are companies that are engaged in the research, development and manufacturing of products based on genetic analysis and genetic engineering. This includes the development of immunotherapy treatments and vaccines to treat human diseases.

Among its holdings you will find the likes of ChemoCentryx, Global Blood Therapeutics, and Twist Bioscience.

A big fan of the ETF is Felicity Thomas from Shaw & Partners. She recently told Livewire:

I like to buy ETFs for the long term. We have an ageing population, and what’s the most important thing in the world? Your health. Biotech, healthcare, and life sciences, that’s where you want to be invested over the next couple of decades.

The post 2 top ETFs for ASX investors to buy in October appeared first on The Motley Fool Australia.

.

More reading
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 BETANASDAQ ETF UNITS and ETFS S&P Biotech ETF. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/cuaegYC
2 October 2022
The Qantas share price hit some turbulence in September
The Qantas Airways Limited (ASX: QAN) share price suffered from headwinds in September, falling by around 5%.

It’s still up by around 10% from the start of August, so it has just given back some of the recent gains that it has seen in the last couple of months.

Qantas shares did manage to outperform the S&P/ASX 200 Index (ASX: XJO), which fell by around 7.5%.

What happened in September?

The airline wasn’t the only one suffering from volatility during last month.

Investors are having to deal with the prospect of ongoing high inflation and the prospect of higher interest rates to bring it under control.

Inflation increases the costs for businesses and could potentially decrease household (and business) demand for some services.

Why do interest rates matter so much? Ray Dalio, the billionaire founder of Bridgewater Associates explains:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

In other words, it’s essential for valuation purposes.

Specifically on Qantas, it didn’t announce anything that it deemed to be price sensitive during the month.

But, Qantas did announce that Stephanie Tully would be the new CEO of Jetstar. She has worked at Qantas since 2004 across a number of positions in progressively senior roles. Markus Svensson will take on the chief customer officer role and become a member of the group executive committee that reports to the CEO.

Management commentary

Talking about those appointments, Qantas CEO Alan Joyce said:

These appointments come at an important time for us. The team is working incredibly hard to overcome challenges facing the whole industry as it gets back on its feet, and the data shows we’re almost there.

Managing this kind of executive renewal internally means we keep our momentum and can leverage a huge amount of corporate knowledge, including through the transition.

Stephanie has worked across several different parts of the airline, from crewing to marketing, and has a deep understanding of customer experience. She’s an outstanding leader and she’ll be leading a very experienced senior team at Jetstar to keep building on the strengths of that business.

Markus has navigated incredible levels of complexity in recent years, managing most of the commercial elements of the Qantas network through several waves of lockdown and recovery, and also managing our relationships with alliance partners around the world.

What is Qantas expecting in FY23?

Sometimes, the outlook can have a significant impact on the Qantas share price (or any business).

The fuel cost for FY23 is expected to be $5 billion, driven by a 60% increase in fuel prices compared to FY19.

Qantas is working on a number of initiatives to offset the inflation it’s experiencing, with cost and revenue initiatives.

The revenue per available seat kilometre is expected to fully recover increased fuel prices across the group as well as temporary unit cost increases associated with addressing its current operational challenges.

The airline said it was going to reduce its domestic capacity by another 10 percentage points in response to higher fuel costs and operational challenges. Some capacity may be restored once “operational resilience” improves. In the first half of FY23, capacity will be 95% of pre-COVID levels and in the second half, it will be 106% of pre-COVID levels.

In terms of international capacity, it will be 65% of pre-COVID levels in the FY23 first half and 84% in the second half of FY23.

The Qantas loyalty division underlying earnings before interest and tax (EBIT) is expected to increase to between $425 million to $450 million for FY23. “Strong yields” are expected to moderate in the freight division of Qantas, but will be above pre-COVID levels.

The post The Qantas share price hit some turbulence in September appeared first on The Motley Fool Australia.

.

More reading
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.

from The Motley Fool Australia https://ift.tt/OlWv0sa
2 October 2022