Month: October 2022

S&P/ASX 200 Index (ASX: XJO) shares in the real estate space are not the most exciting stocks for investors today. When interest rates are going up, investing in property shares sounds dumb. Right?

Let’s check out the numbers.

Over 2022 so far, the S&P/ASX 200 A-REIT Index (ASX: XPJ) is down 26%. That’s pretty close to the dismal performance of the S&P/ASX 200 Information Technology Index (ASX: XIJ), down 33%.

Yet we don’t hear about real estate shares nearly as much as technology shares. They just ain’t sexy.

Real estate shares are also down further than S&P/ASX 200 Consumer Discretionary (ASX: XDJ) shares, which have dominated headlines as experts tout cratering consumer confidence ahead due to inflation.

Consumer discretionary shares are down 20.8%, meaning they’re performing 5% better than property shares. Hmm.

Real estate options in the ASX 200

There are 76 real estate ASX shares on the market. Most of them are real estate investment trusts (REITs) representing a wide variety of areas in the property sector.

For example, there’s Mirvac Group (ASX: MGR), which is a major housing developer, and Scentre Group (ASX: SCG), the largest owner of premium Australian and New Zealand shopping malls. There are also property management and investment companies like Charter Hall Group (ASX: CHC).

Do you regret not buying that house?

If you did a straw poll among 50-plus-year-old Australians, odds are most of them will have a story lamenting a property they didn’t buy and what it’s worth today.

It’s a pretty common ‘kick thyself’ theme. They look back and wonder why on Earth they didn’t buy when prices were soft or falling.

Could we have a similar situation staring us in the face with ASX 200 real estate shares today?

Experts say buy this ASX 200 property share

The experts seem to think so, and one ASX 200 share they seem to be backing with conviction is Goodman Group (ASX: GMG).

According to data published on the Westpac trading platform, nine out of 14 analysts have a strong buy rating on Goodman shares today. Four say hold and one recommends a ‘moderate’ sell.

Presumably, a factor in their decision-making is the 36% decline in the Goodman share price in 2022.

What this has done is reduce the price-to-earnings (P/E) ratio to 9.1, which is well below the market and real estate sector averages of 14-plus.

As my colleague James reported yesterday, top broker Goldman Sachs is bullish, saying:

GMG continues to demonstrate its strong platform and positioning as evident in [the FY22] result, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space.

Goldman has a buy rating and a 12-month price target of $25.40 on this ASX 200 property share. That’s a 49.85% potential upside in just one year, by the way. Kinda sexy.

Who is Goodman Group?

Goodman Group is the largest REIT in Australia. Among property shares, it’s certainly a blue chip.

It’s also one of the largest shares on the ASX 200 with a market capitalisation of $31.14 billion.

Goodman is an integrated global property group that specialises in industrial property. Warehouses, factories, distribution centres, business and office parks — that sort of thing.

It has four divisions — property investment, fund management, property services, and property development. It operates in 14 countries across the Asia Pacific, Europe, the United Kingdom and the Americas.

According to founder and CEO Greg Goodman, they have $73 billion worth of real estate assets under management and $13.6 billion of developments in the pipeline.

The company manages 410 properties in total. It had an operating profit of $1.5 billion in 2022, according to its annual report.

Goodman shares closed the session on Wednesday at $16.95, up 2.36% for the day.

It has a 52-week high of $26.96 and a 52-week low of $15.57.

The post Down 36% in 2022, why analysts reckon this ASX 200 share is a bargain buy right now appeared first on The Motley Fool Australia.

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More reading

• Analysts say these high quality blue chip ASX 200 shares are buys
• The ‘controversial’ ASX 200 share to stash for 4 years: expert
• 3 ASX 200 shares I’d pounce on when the clouds clear: expert
• Analysts say these beaten down blue chip ASX 200 shares can rise 50%
• Goodman share price hits two-year low: Time to buy?

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 Goldman Sachs. 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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Australian markets were rangebound again today with the benchmark S&P/ASX 200 Index (ASX: XJO) creeping just 12 points higher to close at 6,810 — up 0.18% on the day.

The downside has been heavy this year for ASX 200 investors, and active stock pickers have moved front and centre once again.

Company fundamentals and company-specific features have become the new driving factors in equity markets, more so than the abundant liquidity of the past two years.

What this means for ASX 200 shares moving ahead remains to be seen. Nonetheless, investor preferences have changed.

IPH looking strong, expert says

As the wave of macro-headwinds continues for ASX companies, fundamentals are once again the most important piece of the puzzle.

With that, strong business models, producing strong, known cash flows, are standing out.

One ASX 200 share worth looking at is IPH Ltd (ASX: IPH), according to one expert. Celeste Funds Management’s Sheryl Chand identified the intellectual property services company as an opportunity in an article on Livewire today.

Chand noted IPH’s acquisition of Canadian specialist IP law firm Smart & Biggar earlier this year for $390 million, labelling it a ‘best in class’ acquisition of Canada’s IP assets.

“Not only does management expect EPS accretion of 10% in the first full year of ownership, but also the acquisition is strategically transformative for IPH,” she said.

However, it’s the company’s simple-to-understand business model and ability to make projections that are the most appealing in IPH’s case, Chand says.

IPH has a simple operating model and straight-forward financial reports. For example, their revenue recognition is easy to understand and does not require significant judgement or complex calculations.

We also like that they have predictable, recurring revenues, and a capital-light business model which is free from inventory-risk.

They also use reputable auditors and maintain a clean track record of reporting with no indicators of material misstatements.

It is for these reasons the fund is bullish on IPH and its operations domestically and abroad.

In the meantime, the share is up more than 10% this year to date, having bounced off a low in June.

It now trades back in line with its pre-pandemic highs, as seen on the chart below.

The post Buy this ASX 200 share with ‘predictable, recurring revenues’ and no inventory risk: expert appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today

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 recommended IPH Ltd. The Motley Fool Australia has recommended IPH 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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The S&P/ASX 200 Index (ASX: XJO) posted another green day on Wednesday, bringing its gains for the week so far to 2.01%. The index closed today’s session 0.18% higher at 6,810.9 points.

That was despite the latest inflation figures from the Australian Bureau of Statistics, which show the nation’s consumer price index (CPI) hit 7.3% over the 12 months to the September quarter – its highest in 32 years.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) tumbled 2.4% amid the data’s release, while the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) fell 0.5%.

The S&P/ASX 200 Energy Index (ASX: XEJ) also suffered, falling 1.4% despite oil prices rising.

The Brent crude oil price lifted 0.3% to US$93.52 a barrel overnight while the US Nymex crude oil price gained 0.9% to US$85.32 a barrel

Meanwhile, the S&P/ASX 200 Real Estate Index (ASX: XRE) rose 2.5% on Wednesday while the S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 2.4%.

All in all, eight of the ASX 200’s 11 sectors closed higher. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

The Costa Group Holdings Ltd (ASX: CGC) share price led the way on the index today, gaining 11% after its historical parent entity snapped up a 13.78% stake in the company.  

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Costa Group Holdings Ltd (ASX: CGC)	$2.47	10.76%
GUD Holdings Limited (ASX: GUD)	$7.65	5.37%
Ramelius Resources Limited (ASX: RMS)	$0.655	4.8%
Nufarm Ltd (ASX: NUF)	$5.63	4.45%
Charter Hall Long WALE REIT (ASX: CLW)	$4.30	4.12%
Centuria Industrial REIT (ASX: CIP)	$2.91	3.93%
Alumina Limited (ASX: AWC)	$1.335	3.89%
APA Group (ASX: APA)	$10.26	3.85%
De Grey Mining Limited (ASX: DEG)	$1.09	3.81%
Northern Star Resources Ltd (ASX: NST)	$8.56	3.51%

Our top 10 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.

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More reading

• Why is the Whitehaven share price getting beaten up today?
• Is the Lynas share price a buy ahead of tomorrow’s update?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Could this tailwind fuel Flight Centre’s share price into the future?
• Why Australian Strategic Materials, Bega Cheese, Costa, and Elmo shares are racing higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool Australia has recommended COSTA GRP FPO. 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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The BrainChip Holdings Ltd (ASX: BRN) share price ended the day lower on Wednesday.

The semiconductor company’s shares fell over 1.5% to 85.5 cents.

This means that the BrainChip share price is now down 9% since this time last week.

Why is the BrainChip share price down 9% in a week?

The BrainChip share price has tumbled in recent sessions despite there being no news out of the company.

However, it is worth highlighting that over the last six months, short sellers have been building large positions in the loss-making company.

BrainChip’s short interest was as low as 1.1% in March, whereas this month it was as high as 6.9%. This could have put pressure on the sell side of the equation.

While no short sellers have explained why they are targeting the company, its market capitalisation of $1.5 billion on next to no revenue could be a reason.

In addition, BrainChip is the only ASX 200 share that I’m aware of that doesn’t have any broker coverage. This could be interpreted as a sign that the smart money doesn’t believe BrainChip’s shares are investment grade.

As a result, the company may need to start generating some meaningful revenue in the near future to force a change of sentiment.

Time will tell if it does.

The post Why has the BrainChip share price plunged 9% in a week? appeared first on The Motley Fool Australia.

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More reading

• If I’d invested $1,000 in BrainChip shares a year ago, would I be happy right now?
• Why Bapcor, BrainChip, Evolution Mining, and Redbubble shares are sinking
• Can the BrainChip share price continue its growth run this quarter?
• Warning: BrainChip shares are being targeted by short sellers
• Why BrainChip, Emeco, Harvey Norman, and Pilbara Minerals shares are dropping

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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1) Overnight Tuesday, Wall Street rose for a third straight day on a combination of strong corporate earnings and falling bond yields. Excerpt from Bloomberg…

Investors still expect the Fed to raise rates by three-quarters of a percentage point during its meeting next week. But recent economic data is already showing that Fed tightening has started to weigh on the US economy, leading investors to speculate that the central bank may be approaching the end of its aggressive tightening campaign. This renewed expectation of less hawkishness from the Fed, as well as a better-than-expected earnings season so far, have pushed stocks higher in recent days.

2) Earnings from Coca-Cola and General Motors topped estimates. But the wheels fell off after the market close, with Google parent Alphabet missing earnings estimates and fellow tech-giant Microsoft reporting a disappointing revenue forecast.

In after-market trading, both the Alphabet share price and the Microsoft share price fell more than 6%.

It was only yesterday when I said “earnings risk” might usurp the risk of higher interest rates as the dominant driver of equity markets. 

Most of the heavy lifting has already been done on interest rates. Although there’s a lag, the desired effect – a slowing of economic growth – is starting to show up in corporate results. If Alphabet and Microsoft are feeling it, you can bet your bottom dollar companies with much less of a competitive advantage will be paddling upstream.

This bear market rally may be about to run out of steam.

3) Turning to Australia, the ASX 200 is largely flat in afternoon trade, at first following Wall Street’s lead higher, then falling back after Q3 headline inflation jumped to an annual rate of 7.3%, higher than expectations.

Naturally, Australian bond yields rose as talk of the RBA raising interest rates by 50 basis points on Melbourne Cup day came back into play. That said, according to the Australian Financial Review, interbank futures are implying only a 25% chance of the RBA hiking by 50 basis points. 

Markets have been hanging on the prospect of central banks slowing their rate of interest rate increases. For the time being, inflation is winning the battle, with equities, despite their recent bounce, coming a long second.

4) Speaking of earnings risk, one of today’s victims is Codan Ltd (ASX: CDA), the company best known for its gold metal detectors.

The Codan share price is being taken to the woolshed today after it forecast a significant contraction in first-half sales at its dominant Minelab division. Here’s what the company said:

Like many businesses we are operating under challenging market conditions, with geopolitical issues, a high inflationary environment and an increasing risk of global recession. The risk of declining sentiment may impact sales in the short term and management continues to monitor this risk closely.

The company expects sales for Minelab to be in the region of $75 to $80 million in the first half of FY23, compared to $138 million in the prior corresponding period. The reduction primarily relates to the disrupted nature of the African market, normalisation of sales as we transition to living with COVID…

Codan joins a long line of COVID beneficiaries – government stimulus in some African countries was seemingly spent on buying gold detectors – turned post-COVID flops. 

Codan shares are now down 80% from their June 2021 high. Ouch.

5) One of the other high profile COVID boom-to-bust stocks is Kogan.com Ltd (ASX:KGN). 

Unlike Codan, the Kogan share price is on the rise today despite reporting first-quarter gross sales falling 38.8%, cycling a quarter in the prior year that was heavily impacted by COVID-19 lockdown orders, a period when online retailers saw booming sales.

Investors today were buoyed by Kogan accelerating the sale of its final excess inventory, with the ever-optimistic Ruslan Kogan saying he does not believe the first quarter trading result is indicative of its projected trading performance.

Inflation and rising interest rates are putting pressure on households across Australia and New Zealand. It’s in the Kogan.com DNA to obsess over delivering the most in demand products and services at the best possible prices. We know that during periods of belt tightening like this, our responsibility to be the best place for Aussies and Kiwis to get a bargain on their key household items is more important than ever.

Good luck to Mr Kogan and his Kogan.com business. Kogan.com shares have fallen 86% from their October 2020 peak, although they have bounced almost 30% higher off their July 2022 low.

Whilst Kogan does indeed compete on price, it’s not the only discount retailer on the web. And when belts are being tightened, replacement cycles for cheap TVs and the like just might blow out a little.

6) The consumer discretionary stock I’m playing for the coming economic slowdown is Best & Less Group (ASX: BST). 

50% of its sales are in the baby and kids market. As children grow, they need bigger clothes, so there is a repeat purchase element to the business. 90% of its items sold retail for less than $20 and their average selling price is a modest $8.33.

Best & Less is profitable, has net cash on its balance sheet, and pays an attractive fully franked dividend.

Best and Less shares trade on eight times earnings with a fully franked dividend yield of 9.5%. Whilst not immune to an economic slowdown and having formidable competitors in the likes of Big W and Kmart, there does appear to be a decent level of downside protection for Best & Less shareholders.

The post The bear market rally has seen the ASX 200 jump five percent higher in October. It could all be about to run out of steam appeared first on The Motley Fool Australia.

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More reading

• Why Codan, Coles, Medibank, and Pilbara Minerals shares are sinking
• Why is this ASX All Ords share crashing 20% today?
• Kogan share price jumps despite first quarter sales collapse
• Here’s how I allocate my ASX share portfolio and why
• Nasdaq bear market: 2 magnificent US growth stocks you’ll regret not buying on the dip

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bruce Jackson has positions in Alphabet (A shares), Alphabet (C shares), and Best&Less Group Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Kogan.com ltd, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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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The ASX is welcoming a new exchange-traded fund (ETF) to its boards today. New ASX ETFs aren’t a new phenomenon. We seem to get a new one every couple of months these days. But the Global X Green Metal Miners ETF (ASX: GMTL) taps into an area that has seen white-hot interest on the ASX in recent months.

This new ETF from provider Global X does pretty much what it says on the tin. According to the provider, the fund invests in materials shares that have “strategic allocations to green metals such as lithium, copper, nickel and cobalt”.

However, this is not an ASX-centric ETF. ASX shares only make up 11.7% of this ETF’s portfolio as it currently stands. A plurality of the Green Metals ETF’s holdings hails from China at 42.2% of the portfolio. The United States and Canada make up another 10% each. That leaves 26.1% with ‘other countries.

In order to make the cut into his ETF, a green metal extractor, processor or trader must derive at least 50% of its revenues from green metals.

What kind of shares are in the Green Metal Miners ETF?

At present, the fund has 46 holdings. We don’t know all of them, but here is a list of the top ten by weighting and where they are from:

1. Albemarle Corp (US) at an 8.6% weighting
2. Eve Energy Co Ltd (China) at 6.7%
3. Ganfeng Lithium Group Co Ltd (China) at 5.8%
4. First Quantum Minerals Ltd (Canada) at 5.5%
5. Sociedad Quimica y Minera de Chile SA (Chile) at 4.5%
6. Zhejiang Huayou Cobalt Co Ltd (China) at 4.2%
7. Our own Pilbara Minerals Ltd (ASX: PLS) at 4%
8. Norsk Hydro ASA (Norway) at 3.7%
9. Boliden AB (Sweden) at 3.6%
10. China Northern Rare Earth Group High-Tech Co Ltd (China) at 3.5%

So how has this ETF fared on its first day of trading? Well, Green Metal Miners units hit the ASX at $10 per unit this morning. At present, the ETF has risen by… 0.3% to $10.03 per unit.

The Global X Green Metal Miners ETF charges a management fee of 0.69% per annum.

The post The Global X Green Metal Miners ETF just hit the ASX. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• Why is the Whitehaven share price getting beaten up today?
• Nasdaq futures are taking a hammering, but this ASX tech share is surging 14%. Here’s why
• Is the Lynas share price a buy ahead of tomorrow’s update?
• Why is the BetaShares Crypto Innovators (CRYP) ETF soaring 7% today?
• Woolworths share price dumps 3% as forecasts ‘remain challenging’

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 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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The Whitehaven Coal Ltd (ASX: WHC) share price is falling amid the company’s annual general meeting (AGM) and news it will host a second on-market share buyback.

It was granted shareholder approval to buy back up to approximately 25% of its issued shares at today’s meeting. Shortly afterwards, the company announced the commencement of the capital return activity.

But the S&P/ASX 200 Index (ASX: XJO) coal share’s announcement hasn’t been enough to see it in the green

The Whitehaven share price is currently trading at $9.68, 6.56% lower than its previous close.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) is today’s second-worst-performing sector, dumping 1.34% at the time of writing. Comparatively, the ASX 200 is up 0.1%.

Let’s take a closer look at the latest from the coal favourite.

What’s going wrong for Whitehaven today?

The Whitehaven share price is leading the energy index into the red despite news of another buyback and optimistic comments from the company’s CEO.

The coal giant has committed to buying back 240 million shares – or around 25% of its issued capital – over the next 12 months, beginning tomorrow.

That’s in addition to the 10% buyback the company completed earlier this month.

Meanwhile, in an address released to the ASX, Whitehaven CEO and managing director Paul Flynn said the company is still facing inflationary pressures and labour supply constraints. Flooding has also blocked access to its open-cut mines, hampering production.

However, it’s pushing past such disruptions. The company is still hopeful it will meet its previous guidance and will put excess cash towards capital returns and growth opportunities. Flynn commented:

First, we will use cash to maintain and optimise existing operations. Second, we will retain cash to maintain balance sheet strength and to have funding optionality and flexibility. And third, we will return capital to our shareholders in the form of franked dividends and share buybacks.

After those priorities we will use surplus cash to invest in growth if that is the best use of capital.

Growth investments might include [mergers and acquisitions] to increase our equity stakes in our existing business or where there are opportunities to grow in metallurgical coal and diversify our operations… But we will only invest in these growth opportunities if they deliver appropriate returns for our shareholders.

Whitehaven is aiming to return between 20% and 50% of its net profit after tax to shareholders through dividends and buybacks. That ratio may be higher if the company believes buybacks to be more attractive than investing in growth.

The company might also put excess cash towards diversifying its operations out of the Gunnedah Basin. It might also look to funnel funds into its Vickery or Winchester South development projects.

Is the Whitehaven share price ‘exceptional value’?

In what’s likely brilliant news for shareholders, the Whitehaven CEO believes the company’s share price has the potential to go even higher. Flynn said:

While the share price has appreciated considerably over the past year… earnings have increased more significantly.

Looking at the history of Whitehaven’s share price, there has been a strong correlation with coal price until about two years ago. At that point we started to see a disconnect… making Whitehaven shares exceptional value.

Today’s tumble included, the Whitehaven share price is around 270% higher than it was at the start of 2022. It has also gained approximately 256% since this time last year.

Flynn continued:

While we do not expect the current high prices to be the new normal, we do believe there is some structural change… which will deliver higher long-term pricing than before.

The coal market is not like any other.

There has been little reinvestment in the industry to respond to the supply shortage and very few companies are in the position that Whitehaven is in, where we have new development opportunities that we can bring on in the future.

The post Why is the Whitehaven share price getting beaten up today? appeared first on The Motley Fool Australia.

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More reading

• Is the Lynas share price a buy ahead of tomorrow’s update?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Could this tailwind fuel Flight Centre’s share price into the future?
• Do the highest-yielding ASX dividend shares really offer the best passive income?
• Could this represent another nail in the Zip share price coffin?

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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The Damstra Holdings Ltd (ASX: DTC) share price has been a strong performer on Wednesday.

In afternoon trade, the integrated workplace management solutions provider’s shares are up a massive 14% to 16 cents.

That’s despite Nasdaq futures currently pointing to the tech-focused index opening tonight’s session on Wall Street deep in the red. This follows an underwhelming update from Google parent Alphabet.

Why is the Damstra share price storming higher?

Investors have been buying Damstra’s shares in response to the company’s first quarter update this morning.

According to the release, Damstra delivered a 25% increase in revenue over the prior corresponding period to $7.4 million.

Another positive was that the company was profitable at an EBITDA level, with its EBITDA margin now growing towards the double digits. This has been supported by the company’s cost optimisation plan, which has achieved a run rate of $6.1 million. This represents 76% of its $8 million target.

This helped Damstra report positive operating cashflow of $0.3 million for the period, which was a big improvement on its operating cash outflow $1.7 million a year earlier. Free cash flow was still negative at $1.8 million but almost 50% lower than FY 2022’s average quarterly outflow of $3.4 million.

Damstra’s cash balance stood at $8 million at the end of September, with a further $5 million in funds from its credit facility currently undrawn.

Management commentary

Damstra’s CEO, Christian Damstra, was pleased with the quarter. He said:

Q1 FY23 has been a pleasing start to the financial year, showing continued growth in the business while structurally lowering our cost base. Our targeted improvement in cash burn profile is tracking as planned and we have total confidence we will, at a minimum, reach our $8m cost out target.

It is important to highlight the structural improvement in our cashflow which can be best demonstrated by free cash outflows being $1.8m for the quarter compared to the average quarterly outflow of $3.4m in FY22, which is a 47% improvement. This demonstrates that we have structurally lowered our cost base when coupled with increasing revenue, reinforcing our target of becoming free cash positive in second half of FY23.

The post Nasdaq futures are taking a hammering, but this ASX tech share is surging 14%. Here’s why 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 positions in and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings 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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It’s been another day of green ink for the S&P/ASX 200 Index (ASX: XJO) this Wednesday in what is turning out to be a fairly pleasing week thus far.

At the time of writing, the ASX 200 has gained a tenuous 0.06% up to around 6,800 points. It was even better earlier in the session, but the latest inflation figures seem to have dented investors’ optimism. 

But let’s now delve deeper into these gains by taking stock of the shares currently topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Core Lithium Ltd (ASX: CXO)

First up again today is ASX 200 lithium share Core Lithium. This Wednesday has seen a notable 25.66 million Core Lithium shares slide across to a new owner so far. We haven’t seen any fresh news or announcements from the company today.

As such, we can probably put these volumes down to the movements of the Core Lithium share price itself. This lithium producer initially had a strong start this morning, rising as high as $1.53 a share. But investors have taken their feet off the accelerator this afternoon, and Core Lithium is now up by just 1.16% at $1.49 a share.

Medibank Private Ltd (ASX: MPL)

Next up is an ASX 200 share that we rarely see on this list. Medibank Private has seen a significant 65.57 million of its shares find a new home thus far. After a trading halt was imposed last week due to the publicised cyberattacks the company has been dealing with, Medibank shares returned to trading today.

And it was a dramatic event. As my Fool colleague Brooke covered earlier, Medibank has plunged by 15% upon its return to trade. No wonder so many shares are flying around.

Sayona Mining Ltd (ASX: SYA)

Another ASX 200 lithium stock rounds out our list for today. Sayona Mining is currently topping the ASX 200’s trading volumes with a whopping 67.85 million shares bought and sold during today’s session so far. Sayona looks to be experiencing a similar situation to Core Lithium.

There’s been no news from the company. But we have seen the Sayona share price go on a very bumpy rise today. The company has played jump rope with the brake even line all day, with big rises and falls. At present, Sayona shares are up 1.92% at 26 cents each.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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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 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price could have new life breathed into it, thanks to an influx of new business travellers in the construction, engineering, and healthcare sectors. That’s according to a sample of recent Flight Centre booking statistics published in the Australian Financial Review.

Flight Centre shares are currently 2.15% higher at $16.19 apiece. The company’s share price has staged a recovery over the past month, gaining 5.6% although it remains down 8% year to date.

The release of pent-up demand for international demand could be sending its shares flying higher, and these new figures could alter the velocity of its recovery. Let’s cover the highlights.

Construction business travel is booming

Business travel for workers in the construction industry has grown 145 per cent compared with the period January to September 2019. It’s become Flight Centre’s third most important source of passengers, the article said.

Some catalysts for this percentage increase were said to be construction projects happening around the country, including the Commonwealth Games, due to be held in Victoria in 2026, and the Olympic Games to be hosted by Brisbane in 2032.

Flight Centre corporate managing director ANZ Melissa Elf commented:

Construction is absolutely booming across the country, from houses and units to high-rises and new stadiums, and this has led to a massive rise in the need for this industry to get on a plane to carry out business.

Engineering and medical business travel is also rising

Elf went on to say that Flight Centre is seeing similar growth in passengers from the engineering sector and that passenger numbers in the medical industry are also on the rise:

Engineering has followed a similar path to construction with its significant growth versus pre-COVID in 2019 but medical, understandably, has moved into the top four for the first time since before the pandemic began.

Overall, the mining and government sectors are the two most important industries for Flight Centre, according to the report.

This reboot adds to the positive coverage Flight Centre received last Tuesday, when a Macquarie broker stated that the company would likely surprise the market by posting better-than-expected results at its next annual general meeting.

The reasons for the broker’s optimism are Australia’s low unemployment rate and continued strong consumer spending.

Flight Centre share price snapshot

The Flight Centre share price is down 17.5% over the past year. For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 8.6% over the same period.

The company’s market capitalisation is around $3.22 billion.

The post Could this tailwind fuel Flight Centre’s share price into the future? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Do the highest-yielding ASX dividend shares really offer the best passive income?
• Could this represent another nail in the Zip share price coffin?
• Medibank share price plunges 15% as cyberattack bites into outlook
• Has the bottom of the share market now been and gone?

Motley Fool contributor Matthew Farley 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 Flight Centre Travel 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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