Month: October 2022

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard to carve out a modest gain. The benchmark index rose 2.5 points to 6,647.5 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Thursday after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% lower this morning. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is down 0.1%, and the NASDAQ has risen 0.2%.

Bank of Queensland remains neutral rated

The Bank of Queensland Ltd (ASX: BOQ) share price will be one to watch today after yesterday’s heroics. According to a note out of Goldman Sachs, its analysts have responded to its results by retaining their neutral rating with an $8.51 price target. Goldman said: “Despite valuation support, we believe its NIM leverage will ultimately underperform peers and its expenses will remain under pressure.”

Oil prices fall

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices dropped again on Wednesday night. According to Bloomberg, the WTI crude oil price is down 2.35% to US$87.25 a barrel and the Brent crude oil price is down 1.8% to US$92.57 a barrel. Global recession fears have been weighing on prices this week.

Lake Resources rated as a buy

The Lake Resources N.L. (ASX: LKE) share price has the potential to more than double in value according to analysts at Bell Potter. This morning the broker has retained its speculative buy rating with a slightly trimmed price target of $2.52. Bell Potter notes that the lithium developer has now signed two conditional offtake and equity agreements for a total of 50ktpa and 20%, respectively.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.35% to US$1,680 an ounce. Traders were selling down the precious metal ahead of the release of key US inflation data.

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

More reading

• Here are the top 10 ASX 200 shares today
• Looking to buy Bendigo Bank shares? Here’s how the bank compares with peers on one key metric
• Why Baby Bunting, Block, Fortescue, and Santos shares are dropping
• Why investors were looking on the bright side for ASX 200 bank shares today
• Bank of Queensland, BrainChip, Coronado Global, and Lake Resources shares are rising

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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Are you looking to add some growth shares to your portfolio in October?

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

Allkem Ltd (ASX: AKE)

The first ASX growth share that has been tipped as a buy is Allkem. It is a leading lithium miner with projects in Argentina, Australia, and North America. The company is already producing large quantities of lithium, but won’t stop there. It is now aiming to grow its production in a manner that allows it to maintain a 10% share of global lithium supply over the long term.

Macquarie is bullish on Allkem due to the strong lithium pricing outlook. As a result, it has put an outperform rating and $21.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that has been named as a buy is NextDC. It is one of the ANZ region’s leading data centre operators with a portfolio of world class centres across key locations throughout Australia. But like Allkem, NextDC isn’t resting on its laurels. It is now looking to expand into regional locations and overseas in Asia. This appears to put NextDC is a strong position to benefit from the ongoing structural shift to the cloud.

Goldman Sachs believes NextDC is well-placed for long term growth and has put a buy rating and $14.20 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

A final ASX growth share that has been tipped as a buy is Treasury Wine. It is the wine giant behind popular brands such as Penfolds, 19 Crimes, and Wolf Blass. The company was a very strong performer in FY 2022 thanks to its growing US business and the success of its premiumisation strategy.

Pleasingly, Morgans is bullish on Treasury Wine’s outlook and is forecasting “strong earnings growth” over the next few years. In light of this, it has put an add rating and $13.93 price target on its shares.

The post Analysts say these ASX growth shares are buys appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Core Lithium share price in the green today?
• Can ASX lithium shares charge higher over the rest of 2022?
• Which has more upside, Allkem or Pilbara Minerals shares?
• 3 excellent ASX growth shares analysts rate as buys

Motley Fool contributor James Mickleboro has positions in Allkem Limited and NEXTDC 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 recommended Treasury Wine Estates 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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The S&P/ASX 200 Index (ASX: XJO) posted its first gain of the week today. The index lifted 0.04% to close at 6,647.5 points.

It followed a mixed session on Wall Street that saw the Dow Jones Industrial Average Index (DJX: .DJI) gain 01%, the S&P 500 Index (SP: .INX) fall 0.6%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dump 1.1%.

The S&P/ASX 200 Financials Index (ASX: XFJ) led the way on Wednesday, gaining 1.9%.

Its strong performance came as Bank of Queensland Ltd (ASX: BOQ) posted its full year earnings and Commonwealth Bank of Australia (ASX: CBA) hosted its annual general meeting.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) fell 1.5% amid lower oil prices.

Both the Brent crude oil price and the US Nymex crude oil price fell slipped 2% overnight to trade at US$94.29 a barrel and US$89.35 a barrel respectively.

Miners and tech shares also had a rough day, with the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 200 Information Technology Index (ASX: XJI) both slipping 0.9%.

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

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share was none other than Bank of Queensland. The stock gained 11% on news the bank’s after tax profits lifted 15% year on year in financial year 2022.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Bank of Queensland Ltd (ASX: BOQ)	$7.59	11.13%
Coronado Global Resources Ltd (ASX: CRN)	$2.09	8.01%
Westpac Banking Corp (ASX: WBC)	$22.41	3.75%
BrainChip Holdings Ltd (ASX: BRN)	$0.875	3.55%
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	$24.75	3.34%
Perpetual Limited (ASX: PPT)	$23.94	3.23%
Lifestyle Communities Limited (ASX: LIC)	$16.09	3.21%
HomeCo Daily Needs REIT (ASX: HDN)	$1.19	3.03%
Whitehaven Coal Ltd (ASX: WHC)	$10.68	2.99%
Challenger Ltd (ASX: CGF)	$6.24	2.97%

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

• Looking to buy Bendigo Bank shares? Here’s how the bank compares with peers on one key metric
• Why investors were looking on the bright side for ASX 200 bank shares today
• Bank of Queensland, BrainChip, Coronado Global, and Lake Resources shares are rising
• Is this why a certain ASX 200 director keeps buying up big on their company’s shares?
• What’s the outlook for ASX 200 bank shares in Q2?

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 recommended Challenger Limited and 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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ASX 200 bank shares received some good support from ASX investors on Wednesday.

The Westpac Banking Corp (ASX: WBC) share price rose by 3.75% to finish at $22.41.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price went up 3.34% to $24.75.

The Commonwealth Bank of Australia (ASX: CBA) share price rose by 2.44% to close at $96.29.

National Australia Bank Ltd (ASX: NAB) shares went up 1.32% to $29.88.

By comparison, the S&P/ASX 200 Index (ASX: XJO) closed just 0.04% higher at 6,647.5 points.

Why did ASX 200 bank shares do well today?

The first factor is a flow-on effect after Bank of Queensland Ltd (ASX: BOQ) shares rose by an astonishing 11.3%.

That happened because the bank released its full-year results today. And, boy, were shareholders happy.

They appeared unperturbed about the 5% decline in cash earnings for the 12 months ending 31 August.

The key detail that likely excited them was a better-than-expected net interest margin (NIM) at the end of FY22.

Top broker Goldman Sachs stated:

The highlight of the result was that BOQ’s 4Q22 NIM came in at 1.81%, well ahead of the 1.75% 2H22 average, and also our FY23E forecast of 1.78% and Visible Alpha Consensus Data forecast of 1.75%.

This is good news for all banking stocks because investors have been worrying about NIMs all year.

The NIM is the amount of money ASX 200 banks earn from the interest paid by loan holders less the interest paid by the banks to savings deposit holders.

Rising interest rates are great for banks because they can charge more interest on existing and new loans. But they can also lead to reduced new mortgage lending and increased bad debts.

So, investors have been wondering what the NIMS of the big ASX 200 bank shares are going to look like when a bunch of the big lenders report their full-year results in the next month or so.

After seeing the Bank of Queensland’s NIM and its share price response today, they’re likely assuming other ASX 200 bank shares are poised to rise when those banks report their results.

Three of the big four will report shortly. ANZ on 27 October, Westpac on 7 November, and NAB on 9 November.

Adding to the momentum for ASX 200 bank shares today, CBA held its annual general meeting.

CBA CEO Matt Comyn spoke positively about the outlook:

Overall, we remain fundamentally optimistic about the medium to long term opportunities for Australia, as well as our capacity to provide support in the immediate future for customers who need us.

What do the experts think of the banks?

As we reported recently, head of Australian equities at Tyndall Asset Management Brad Potter 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 is overweight in Westpac and ANZ shares and underweight in CBA shares.

The post Why investors were looking on the bright side for ASX 200 bank shares today appeared first on The Motley Fool Australia.

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More reading

• Looking to buy Bendigo Bank shares? Here’s how the bank compares with peers on one key metric
• Bank of Queensland, BrainChip, Coronado Global, and Lake Resources shares are rising
• Is this why a certain ASX 200 director keeps buying up big on their company’s shares?
• What’s the outlook for ASX 200 bank shares in Q2?
• Guess which ASX 200 coal share is leaping higher on a possible takeover

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. 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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There are many different ways to judge Bendigo and Adelaide Bank Ltd (ASX: BEN) shares. One is to look at its profitability compared to an ASX bank share peer like Bank of Queensland Ltd (ASX: BOQ).

For readers who didn’t notice, BOQ just released its 2022 financial year result today for the 12 months to 31 August 2022.

I’m not saying to compare the banks’ market capitalisations or dividend yields. But I think it could be interesting to look at their net interest margins (NIMs).

What is a NIM?

A NIM could be the most important profitability metric for banks. Why? Because it measures the lending profitability of a bank. It tells investors what profit margin a bank is making on its loans.

There are two parts to how much of a net interest margin a bank achieves. This can have a major influence on both Bendigo Bank shares and BOQ shares.

The first part is the overall rate the bank is lending money at. For example, it could have lent $100,000 at an interest rate of 4%.

The other side of the equation is how much it is costing the bank to fund that loan. For example, it could be using $100,000 from a savings account and paying the saver an interest rate of 2%.

Readers may be able to quickly tell that the bank’s NIM for this is 2% — that’s the 4% lending rate, compared to the 2% rate on the savings account.

Banks need to attract savers, or pay for other sources of income, so that they can then lend out that money. If it doesn’t pay a good rate, then it won’t attract a lot of money.

Banks also need to offer an attractive interest rate so that they are competitive with their peers and can win over potential borrowers.

In recent times, competition has been pulling down on bank NIMs.

How do Bendigo Bank shares compare to BOQ shares?

A NIM doesn’t ultimately define which bank is better. But, I think it can show the competitive strength of a bank.

Let’s look at the NIMs reported in the FY22 results from both regional banks.

For the 12 months to 30 June 2022, Bendigo Bank reported that its NIM was 1.74% (down 21 basis points). I think it’s important to recognise that this result barely includes any effect of the Reserve Bank of Australia (RBA) raising interest rates.

Meanwhile, the result BOQ just released had a year-end date of the end of August, so it had a little more time for the RBA rate effect to flow through. Even so, BOQ’s full-year NIM was 1.74%, down 12 basis points for the financial year

When looking at the two, we can see that their NIMs were identical. It’s possible that if Bendigo Bank shares had the same year-end date as BOQ that its NIM may have been slightly higher.

It will be interesting to see what happens next with NIMs.

The market is expecting bank NIMs are going to rise because the RBA has been increasing the official interest rate. This is enabling banks to hike borrower rates quickly but take things a bit slower for savers.

I’m not sure which of these two ASX bank shares will see a stronger rise in their NIM in FY23. But, BOQ said today it has good momentum going into the new financial year and all three of its divisions are seeing lending growth.

The post Looking to buy Bendigo Bank shares? Here’s how the bank compares with peers on one key metric appeared first on The Motley Fool Australia.

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More reading

• Bank of Queensland, BrainChip, Coronado Global, and Lake Resources shares are rising
• What’s the outlook for ASX 200 bank shares in Q2?
• Bank of Queensland share price leaps 8% higher on results and NIM outlook
• Everything you need to know about the upsized Bank of Queensland dividend
• Bank of Queensland share price on watch following FY22 results

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 positions in and has recommended Bendigo and Adelaide Bank 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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Generally, an individual’s risk appetite will fall with age. This is because someone in their 20s or 30s has a lot more time to recoup their losses compared to someone in their 60s who is nearing retirement and will soon be reliant on their nest egg to fund their future lifestyle.

In light of this, if you’re building a retirement portfolio, it could be worth selecting shares that are consistent with your risk profile and investing goals.

With that in mind, listed below are a couple of ASX 200 shares that Morgans rates as buys and could be suitable for a well-balanced retirement portfolio:

Coles Group Ltd (ASX: COL)

The first ASX 200 share that could be a top option for a retirement portfolio is Coles.

It is of course one of Australia’s big two supermarket operators. In addition, Coles has a sprawling network of liquor stores.

Coles could be worth considering due to its solid growth prospects thanks to its refreshed strategy, its generous dividend policy, and its defensive qualities. Another positive is the company’s focus on automation which will cut costs and support its online business.

Morgans is positive on the company in the current environment. It commented:

[W]e continue to see COL as offering good value with the company possessing defensive characteristics that should hold up relatively well in a weaker economic environment.

The broker currently has an add rating and $20.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another top ASX 200 option for a retirement portfolio could be Telstra.

Telstra also has defensive qualities, shares a good portion of its profits with shareholders, and has solid growth prospects. The latter is being driven by the telco giant’s T25 strategy, which has just replaced the successful and transformational T22 strategy.

The team at Morgans is very positive on the company and believes this new strategy will unlock value for investors. It commented:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote on Telstra’s legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders.

Morgans has an add rating and $4.60 price target on its shares.

The post 2 excellent ASX 200 shares to buy for a retirement portfolio: broker appeared first on The Motley Fool Australia.

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More reading

• Telstra share price higher on AGM update
• What’s the outlook for ASX dividend shares for the rest of 2022?
• Buy this ASX 200 share in the aftermath of Optus hack: expert
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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 COLESGROUP DEF SET and Telstra Corporation 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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The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday and on course to record a decent gain. At the time of writing, the benchmark index is up 0.3% to 6,664.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down a further 3% to $3.01. Investors have continued to sell this baby products retailer’s shares following a surprisingly bad update at its annual general meeting. The team at Citi was disappointed. In response, the broker downgraded its shares to a neutral rating and slashed its price target from $5.62 to $3.32.

Block Inc (ASX: SQ2)

The Block share price is down 2% to $87.20. This follows a poor night of trade for the payments company’s shares on Wall Street. Investors were selling Block and other technology shares amid weakness in the tech sector. This led to the NASDAQ index dropping to a two-year low.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 2.5% to $16.81. This appears to have been driven by a pullback in iron ore prices overnight. In addition, on Monday, analysts at Morgans downgraded Fortescue’s shares to a reduce rating and cut the price target on them to $15.00. It has warned that the company’s free cash flow could be heading to zero in the near future.

Santos Ltd (ASX: STO)

The Santos share price is down almost 2.5% to $7.54. Investors have been selling Santos and other ASX energy shares following weakness in oil prices overnight. This was driven by concerns over a potential global recession and COVID lockdowns in China. Both could reduce demand for oil from end users.

The post Why Baby Bunting, Block, Fortescue, and Santos shares are dropping appeared first on The Motley Fool Australia.

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More reading

• If I’d invested $1,000 in Fortescue shares at the start of 2022, here’s how much I’d have now
• What’s the outlook for ASX 200 tech shares in the second quarter?
• Why Baby Bunting, Calidus, Pointsbet, and South32 shares are falling
• Why is the Woodside share price suffering on Tuesday?
• Why did this ASX 300 retail share just crash 25%?

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 Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Baby Bunting. 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down 58% in the year to date.

As my colleague Zach recently reported, Domino’s shares are now trading around 52-week lows.

At the time of writing, the Domino’s share price is $52.12, not far above its 52-week low of $49.83.

It’s been a tough ride for shareholders. But at least you’ll get a discount on your next order.

30% discount on pizza for shareholders

Domino’s is offering its shareholders a 30% discount on all large premium and traditional pizzas.

The deal, called ‘Shareholder Pizza Perks’, was sent out last week.

Shareholders received a personalised discount code to use on up to 25 orders between now and 1 December 2023. There is a minimum $22 spend on delivery orders.

Dominos share price struggles through 2022

Domino’s had a fantastic run during the first two years of COVID-19.

Lockdowns meant more people ordered in, which pushed up Domino’s earnings and shares. The Domino’s share price reached an all-time high of $164 in September 2021.

Domino’s was among a bunch of ASX shares that were COVID winners. But lockdowns were a short-term tailwind, so the share price has come back to Earth.

Before COVID hit, Domino’s shares were trading at about $62 apiece. Today, they’re trading considerably lower than that arguably because of two new challenges — rising inflation and interest rates.

Both stop consumers from spending, and inflation raises the costs of production, meaning a smaller margin for Domino’s even if it raises its pizza prices.

Domino’s reported a 4.6% bump in sales globally in its FY22 results released in August. But it experienced a 12.5% decrease in after-tax profit to $165 million.

As my colleague, Zach points out, this is a classic impact of inflation. Businesses enjoy greater revenue because they’re selling their products for higher prices. But they’re also paying more for the inputs to make those products, which can reduce their margins and hence their earnings.

What else is happening at Domino’s?

In August, Domino’s shelled out $214 million to buy 287 corporate stores in three new markets â€“ Malaysia, Singapore, and Cambodia.

Investors liked the move and the Domino’s share price moved up 7.2% on the day of the announcement.

Back on 23 September, Zach reported that brokers were still advocating Domino’s shares.

Seven out of 14 analysts were recommending Domino’s as a buy and seven were recommending to hold, according to Refinitiv Eikon data.

The consensus price target from those 14 brokers was $79.57, down from $89.35 in June.

Citi, for one, is bullish. The broker has a price target of $84.40 on Domino’s shares.

If Citi is right, then investors buying into the pizza chain today are in for a gain of almost 65% over the next 12 months.

The post Domino’s share price down 58% in 2022 but here’s 30% off your pizza appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why analysts say these excellent ASX growth shares are buys
• Morgans names 2 more of the best ASX shares to buy in October
• Are these beaten down ASX 200 shares going cheap?
• Down 65% from its all-time high, are Domino’s shares a deliciously-priced buy?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Dominos Pizza Enterprises 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 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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Wednesday is proving to be a good day to be invested in these three ASX mining shares as they rocket higher on the back of exciting news. In fact, one posted a gain of 30% at its intraday high.

So, which ASX miners have surprised the market today? Let’s take a look.

3 ASX mining shares soaring on exciting announcements

Wednesday has brought a modest gain for the broader market. The S&P/ASX 200 Index (ASX: XJO) is up 0.35% right now while the All Ordinaries Index (ASX: XAO) has lifted 0.27%.

But the GME Resources Limited (ASX: GME) share price’s performance has been anything other than modest. The stock is surging 26% right now to trade at 14.5 cents. And earlier today it hit a 52-week high of 15 cents, representing a 30% gain.

It follows a three-session trading halt within which the company announced an offtake agreement with Stellantis. The European automaker signed a non-binding memorandum of understanding for the future sale of battery grade nickel and cobalt products from the ASX miner’s NiWest Project.

GME Resources also launched a successful $4 million capital raise to help fund the project’s definitive feasibility study. The placement saw 42.1 million shares offered for 9.5 cents apiece.

Speaking of battery-grade nickel and cobalt offtake agreements, that’s exactly what’s driving the Queensland Pacific Metals Ltd (ASX: QPM) share price today. The ASX mining share is rocketing 17% right now to trade at 17.5 cents.

Queensland Pacific Metals announced a collaboration that will see General Motors Company (NYSE: GM) spending up to $108 million on an equity stake in the ASX-listed company.

Additionally, an offtake agreement will see General Motors purchasing any uncommitted nickel and cobalt from the TECH Project. The materials will be used to build electric vehicle batteries.

The final ASX mining share posting an eyepopping gain on Wednesday is Azure Minerals Ltd (ASX: AZS). It’s up 5% at 22 cents right now.

The company revealed its latest lithium find this morning, with “abundant” targets discovered at the Andover Project.

The visible spodumene identified at multiple locations has been confirmed to house grades of up to 1.62% lithium oxide.

The post 3 ASX mining shares rocketing higher on big news appeared first on The Motley Fool Australia.

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More reading

• Queensland Pacific Metals share price soars 18% on General Motors deal

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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1) Overnight, the selling in US stocks continued after the Bank of England Governor Andrew Bailey warned fund managers they had until the end of this week to unload bond positions they can’t maintain. 

“My message to the funds involved and all the firms is you’ve got three days left now,” Bailey said at the Institute of International Finance annual meeting in Washington on Tuesday. “You’ve got to get this done.”

This is one of those “cracks” JPMorgan chief Jamie Dimon talked about yesterday, saying the stock market could fall another 20% lower from here.

The slow grind down in stocks continues, as does the slow grind up in bond yields. As usual, tech stocks bore the brunt of the selling, with the NASDAQ-100 Index (NASDAQ: NDX) falling more than 1%.

Year to date, the Nasdaq 100 index is now down almost 35%. The aggregate bond index – usually seen as a safe investment – is down around 14% so far in 2022, and on track for its worst year since 1931. Bonds prices move down when interest rates move higher.

2) It’s a great time to have cash, just about the only asset class that hasn’t gone down in this brutal year of investing. As an added bonus, you can now finally earn a return on your cash, albeit only around 2.5%, and less than inflation. 

So, with so much uncertainty around, and creditable calls from the likes of Jamie Dimon about more pain to come, why not sell up everything and go to cash?

According to JPMorgan Asset Management, if you had invested $10,000 and missed the 10 best days from 2002 to 2021, your gains would have been cut by more than half. If you had missed 30 days, you would have missed out on more than 80% of potential gains.

Last Tuesday – when the RBA raised the cash rate by ‘only’ 25 basis points and the S&P/ASX 200 Index (ASX: XJO) soared 3.75% higher – may not have been one of those “10 best days,” but it’s certainly a day you don’t want to miss.

“Best days” usually happen in times of heightened volatility. One of those “best days” may signal the end of the bear market. We just don’t know when that will be. In the meantime, while we wait, we keep our eyes on the horizon, looking three to five years hence.

3) Speaking of volatility, this bear market is nothing like the GFC or the COVID crash.

The volatility index, commonly known as the VIX, is currently trading at 33. That’s above its long-term average of around 20, but way off the 80 level it hit in November 2008, and its record ever high of 82 in March 2020.

Harking back to the GFC – easily the most painful period of my investing life – although the VIX peaked in November 2008, the market didn’t bottom until March 2009. 

I vividly remember one “10 best days” in October 2008 when the Dow Jones Industrial Average Index (DJX: .DJI) soared an astonishing 11%, at the time, its best percentage gain since 1933. 

On that one day, the Morgan Stanley (NYSE: MS) share price soared a quite unbelievable 87% higher… again, I repeat, in just one day. 

Like then, there’s no way of ever picking the bottom of the market. More likely is you’ll be fully invested way before the market hits its nadir. When that happens, all you can do is trade in and out of current portfolio positions – out of one cheap stock and into one that’s even cheaper – or sit and wait for the market to eventually bottom, then turn higher. 

4) This “inflation shock” stock market crash feels like the dot-com bust. Volatility was elevated – like now – but didn’t spike much above 40. It was just a slow, painful grind lower – like now.

It will only be in hindsight that we know the market has bottomed. In the meantime, a strategy slowly and steadily deploying any cash you have into the market – either through a passive ETF like the Vanguard Australian Shares Index Fund (ASX: VAS) or individual companies – should serve you well, over time.

Yesterday, a limit order I had previously placed was triggered, and I bought shares in a microcap stock with these qualities…

1. Its share price is down over 80% in the past 12 months;
2. On a daily basis, is buying back its own shares;
3. Cash makes up almost 60% of its market capitalisation;
4. No debt;
5. Trades on 4 times EBITDA;
6. FY22 revenue grew almost 70%.

It looks to be one of the cheapest stocks trading on the ASX… although it undoubtedly has some company.

I’m already in the red, such is the nature of this brutal bear market, especially in small and micro industrial (non-mining and energy) stocks. But, I reckon the odds are in my favour, over time. 

The post If you wait for the stock market to bottom, you’ll miss out on absolute bargains, like ‘one of the cheapest stocks on the ASX.’ appeared first on The Motley Fool Australia.

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More reading

• Why dividends matter
• Why is the Vanguard Australian Shares Index ETF lagging the market on Monday?
• This ASX ETF was my first investment, and I’ll be holding it for the long term
• Is the Vanguard Australian Shares Index ETF (VAS) dividend growing?
• Why making your first purchase of ASX shares can be scary

Motley Fool contributor Bruce Jackson 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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