Stock Pick

Month: October 2022

  • Why Appen, GQG, Paradigm, and Talga shares are tumbling lower

    Disappointed man with his head on his hand looking at a falling share price his a laptop.

    Disappointed man with his head on his hand looking at a falling share price his a laptop.

    The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. In afternoon trade, the benchmark index is down 0.6% to 6,774.4 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Appen Ltd (ASX: APX)

    The Appen share price is down a further 2.5% to $2.87. Investors have continued to sell down this artificial intelligence data services company’s shares in response to a very disappointing update on Thursday. That update reveals that Appen expects FY 2022 revenue in the range of US$375 million to US$395 million and constant currency EBITDA of US$13 million to US$18 million. The latter will be down 77.2% to 83.5% over the prior corresponding period. In other news, this morning Ord Minnett retained its sell rating and cut its price target to $2.60.

    GQG Partners Inc (ASX: GQG)

    The GQG share price is down 4% to $1.53. This has been driven by a disappointing funds under management (FUM) update from GQG this morning. The fund manager revealed that its FUM fell 9.3% during September to US$79.2 billion.

    Paradigm Biopharmaceuticals Ltd (ASX: PAR)

    The Paradigm Biopharmaceuticals share price is down 13% to $1.68. This is despite there being no news out of the drug development company today. However, with its shares rocketing materially higher this week, some traders could be taking profit off the table. After all, the Paradigm share price is still up 15% this week despite this decline. This strong gain was driven by the release of promising study results.

    Talga Group Ltd (ASX: TLG)

    The Talga share price is down 12% to $1.17. This has been driven by the battery materials company announcing firm commitments for a $22 million placement. The company is raising the funds at a price of $1.10 per share, which represents a 17% discount to the Talga share price prior to its trading halt. Proceeds will be used partly to fund Talga’s advancement of the Vittangi Anode Project and the expanded operation of the Electric Vehicle Anode qualification plant.

    The post Why Appen, GQG, Paradigm, and Talga shares are tumbling lower 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 Appen Ltd. 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 Westpac share price has fallen the most of the ASX 200 big four banks over the past year. So, is it a cheap buy?

    A woman looks questioning as she puts a coin into a piggy bank.A woman looks questioning as she puts a coin into a piggy bank.

    The Westpac Banking Corp (ASX: WBC) share price is down 0.4% to $21.85 at the time of writing.

    Over the past 12 months, the oldest bank in Australia has also delivered the worst share price performance of the ASX 200 big four banks.

    The Westpac share price is down 16% over the period.

    This compares to a 7% dip in the Commonwealth Bank of Australia (ASX: CBA) share price and an 8% decline in the National Australia Bank Ltd (ASX: NAB) share price.

    The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is down 12%.

    What’s been happening lately with ASX bank shares?

    As my Foolish colleague Bernd reported, September was a crummy month for ASX bank shares.

    The Commonwealth Bank share price slipped 7% during September. NAB shares closed the month down 5.8%. The Westpac share price lost 4.5%. ANZ shares dipped slightly by 0.1%.

    It was a bad month for the market at large, with the S&P/ASX 200 Index (ASX: XJO) down 7.3%.

    What’s happening with the banks is that investors are worried about rising interest rates. While they might mean increased net interest margins (NIMs) for the banks, they could also cause mortgage lending to fall and bad debts to rise.

    NIM is the difference between the interest the banks are raking in on loans, and the interest they are paying out on savings deposits. Obviously, a rising official cash rate impacts both sides of the coin.

    While the banks have been quick to pass on the official rate rises to home loan customers, they’ve been slower to increase the interest paid on savings accounts.

    We’ll get the data on NIMs soon enough, with NAB, ANZ, and Westpac completing their FY22 financial year on 30 September.

    ANZ will report its full-year results on 27 October. Westpac will report on 7 November and NAB will report on 9 November.

    Why has the Westpac share price fallen the most?

    As reported on Livewire, Goldman Sachs analysts Andrew Lyons and John Li issued a research note on Wednesday in which they say Westpac is a buy.

    They point out that Westpac was the worst defender of profitability over the period from FY13 to now.

    But they like Westpac shares over the other big four ASX 200 banks right now for four reasons.

    Firstly, the company’s performance is strongly leveraged to rising interest rates.

    They also note superior cost management and Westpac’s latest market update, which indicated the bank is continuing to invest in itself.

    As my Fool friend James reported at the time, the update included the status of the Customer Outcomes & Risk Excellence (CORE) program, new climate commitments, the bank’s digital capabilities, and plans.

    Lyons and Li also cite Westpac’s “supportive share price valuations”.

    The Westpac share price is the lowest of the big four ASX 200 bank shares.

    According to the ASX website, Westpac shares are trading on a price-to-earnings (P/E) ratio of 15.05.

    This compares to a P/E ratio of 16.74 for CBA, 14.39 for NAB, and 10.23 for ANZ.

    The post The Westpac share price has fallen the most of the ASX 200 big four banks over the past year. So, is it a cheap buy? appeared first on The Motley Fool Australia.

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    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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  • Why Allkem, Karoon Energy, Stanmore Resources, and Whitehaven Coal are charging higher

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.5% to 6,782.9 points.

    Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

    Allkem Ltd (ASX: AKE)

    The Allkem share price is up 2.5% to $14.64. This morning this lithium miner announced a funding agreement for the development of its Sal de Vida project. Allkem and the International Finance Corporation have agreed a US$200 million non-binding term sheet for a project financing facility for the project in the Catamarca Province of Argentina.

    Karoon Energy Ltd (ASX: KAR)

    The Karoon Energy share price is up over 7% to $2.22. Investors have been buying this energy producer’s shares after its Bauna royalty rate reduction was approved. Once formalised, the reduced royalty rate will apply to all incremental production from the Bauna, Piracaba and Patola fields in Brazil.

    Stanmore Resources Ltd (ASX: SMR)

    The Stanmore Resources share price is up 5.5% to $2.52. This morning this coal miner announced that it has completed the acquisition of the remaining 20% interest in BHP Mitsui Coal from Mitsui. In accordance with the sale agreement, the final price payable for the acquisition was US$270 million after adjusting for dividends paid to date. Stanmore now owns 100% of the business, which has since been renamed Stanmore SMC.

    Whitehaven Coal Ltd (ASX: WHC)

    The Whitehaven Coal share price is up 4% to $10.87. This coal miner’s shares have continued to rise despite there being no news out of the company today. Following today’s gain, the Whitehaven Coal share price has now climbed a remarkable 295% since the start of the year.

    The post Why Allkem, Karoon Energy, Stanmore Resources, and Whitehaven Coal are charging higher appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why is everyone suddenly talking about ASX 200 gold shares?

    Two ASX shares investors fighting each other to grab gold treasure.Two ASX shares investors fighting each other to grab gold treasure.

    S&P/ASX 200 Index (ASX: XJO) gold shares could be poised to regain their shine.

    This year commenced well for the gold miners, as the price of the yellow metal they dig from the ground soared from US$1,800 per ounce in early January to US$2,050 per ounce by 9 March.

    That lift saw the Evolution Mining Ltd (ASX: EVN) share price gain 10.3% from 4 January through to 9 March.

    Fellow ASX 200 gold share Northern Star Resources Ltd (ASX: NST) gained 16.2% over that same period, while shares in Newcrest Mining Ltd (ASX: NCM) charged 15.2% higher.

    Then gold prices retraced all the way to US$1,622 per ounce by 26 September. As you’d expect, this saw all three of the above ASX 200 gold shares sell off sharply.

    While bullion has clawed back some of those losses since then, currently fetching US$1,710 (AU$2,664) per ounce, the ASX 200 gold shares remain down year-to-date.

    But their outlook appears to be brightening.

    What the hedging market is telling us

    Many gold miners opt to hedge part of their future gold delivery. That means they lock in a fixed price today for gold they won’t sell for several years yet. It’s a way to help even out revenues and reduce risk in a world of fluctuating gold prices.

    Northern Star hedges 20% of its future production.

    And, as The Australian reports, the ASX 200 gold share is getting hedging contracts for gold valued at AU$2,950 for delivery in three years’ time. That’s well above the current spot price of AU$2,664 per ounce.

    At the Melbourne Mining Club, Northern Star Resources’ CEO Stuart Tonkin said that rising interest rates have seen hedging contracts deliver some AU$100 per year above the spot price. That’s far higher than ASX 200 gold shares have been receiving when rates were at rock bottom.

    According to Tonkin:

    You typically only pick up $20 or $30 a year in a low interest environment. And now you’re seeing a bit of a ski ramp $100 a year forward. That’s because the interest rate increases are being calculated into bankers’ cost of money holding that gold contract.

    If the boffins calculating the value of the forward contracts have it right, gold priced in Aussie dollars could be heading for a new record high.

    But that won’t see Northern Star hedge any more of its production.

    “We still keep the hedge book at 20%,” Tonkin said. “It just means we’ve got some buffer. When the gold price does move it is often a shock, and we just want to make sure that we can manage through any of those type of rapid shocks.”

    How have these ASX 200 gold shares performed longer-term?

    Over the past 12 months, the Northern Star share price is down 5%, the Newcrest Mining share price is down 22%, and the Evolution share price is down 43%.

    ASX 200 gold stock shareholders will certainly be hoping that the new hedging contracts are correct in forecasting an upward trend in bullion prices.

    The post Why is everyone suddenly talking about ASX 200 gold shares? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • Why Fortescue’s green hydrogen plans just got a $13 million boost

    a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.

    Fortescue Future Industries has just received a multi-million Federal Government grant towards a major hydrogen conversion project.

    Fortescue Metals Group Limited (ASX: FMG) shares are 1.14% in the red today and are currently trading at $17.40. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.53% today.

    So what are the details of Fortescue’s green hydrogen plans?

    Huge hydrogen boost

    Fortescue Future Industries, together with Incitec Pivot Limited (IPL) will advance plans to convert IPL’s Gibson Island ammonia facility to run on green hydrogen.

    Today, the Australian Renewable Energy Agency (ARENA) advised that Fortescue and IPL will receive $13.7 million from the Federal Government.

    This will go towards a front-end engineering and design study (FEED). This study will investigate converting the ammonia plant to use 100% renewable hydrogen from a 500MW hydrogen electrolysis facility.

    Fortescue Future Industries, a global green energy company, is owned by Fortescue Metals.

    The total cost of the FEED stage of the project is about $38 million. A Final Investment Decision on the project is due in 2023.

    Commenting on today’s news, Fortescue Future Industries CEO Mark Hutchison said:

    Progressing this project into this final assessment stage is an important milestone in what will be a world-first conversion of an existing facility to become an industrial-scale producer of green hydrogen and green ammonia.

    One hundred jobs are set to be created at the project in the lead-up to this investment decision, with production targeted in 2025.

    ARENA CEO Darren Miller said:

    This is an exciting project for the parties involved and for Australia.

    Fortescue share price snapshot

    The Fortescue Metals share price has soared 25% in the past year, while it has lost 9% in the year to date.

    For perspective, the ASX 200 has shed nearly 7% in the past year, while falling 9% year to date.

    Fortescue has a market capitalisation of more than $53 billion based on the current share price.

    The post Why Fortescue’s green hydrogen plans just got a $13 million boost appeared first on The Motley Fool Australia.

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    Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • What’s the outlook for ASX 200 energy shares in Q2?

    a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.

    Energy continues to be the outperforming sector on the ASX this year, with a number of macroeconomic and geopolitical events taking precedence in the energy markets.

    At the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is tracking more than 1% higher on the day, extending year-to-date returns to 43%.

    What’s in store for ASX energy shares?

    The global energy markets remain susceptible to a number of undercurrents that are seeing record levels of pricing in 2022.

    Oil and gas segments remain the key catalyst to changes in energy indices, resulting in large price swings in each market. Gains have stemmed large cash flows for energy and utilities players this year.

    And just when market commentators had anticipated a pullback in the oil price, the Organisation of the Petroleum Exporting Countries (OPEC) agreed to steep cuts to its previously outlined production targets on Wednesday.

    The cut will be equal to about 2% of total global supply, and is “necessary to respond to rising interest rates in the West and a weaker global economy”, OPEC said, reported by Reuters.

    Traders have rallied the oil price in response to the decision, with Brent Crude oil futures trading back in range with February 2022 levels – that’s right before a huge breakout occurred.

    Stepping back, however, there’s been continued upside across all energy segments throughout 2022.

    These trends are continuing, and with the latest surprise from OPEC, it stands to reason that energy markets could rally again.

    Already we are seeing the impacts today with the ASX 200 Energy Index shifting back into gear after a sharp turn downwards in late September.

    As seen in the chart below, the major energy commodities have pushed to multi-year highs – and in near vertical fashion. The strength of this move has yet to be overcome.

    TradingView Chart

    What does that mean?

    The culmination of these factors puts ASX energy shares in prime position to capitalise on the opportunity.

    Names such as Santos Ltd (ASX: STO), Woodside Energy Group Ltd (ASX: WDS), Yancoal Australia Ltd (ASX: YAL), and BHP Group Ltd (ASX: BHP) are front and centre, having each clipped strong gains already this year.

    However, the rise in global inflation has, in part, been attributed to the rise in energy costs, which tie directly back to energy commodities.

    With that, the Reserve Bank of Australia (RBA) has committed to a fight against inflation, using interest rates as its weapon of choice.

    We’ll have to wait and see the impact of the RBA’s decisions. However, energy shares have been largely immune to the rising rates in 2022. That’s not to say this will continue, but it’s not to be ignored.

    Inflation data for August–September, released next month, will be key to understanding the path the RBA will take, and what impact this will have on ASX energy shares.

    In the meantime, there looks to be more volatility across energy sectors in the weeks ahead.

    The post What’s the outlook for ASX 200 energy shares in Q2? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Is the government getting cold feet on proposed changes to ASX dividend franking credits?

    A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

    Assistant Federal Treasurer Stephen Jones says the government will “have a look at” feedback about proposed legislation to stop companies paying franked special dividends funded via capital raisings.

    According to reporting in The Australian, Jones told Sky News in an interview that the government will “listen seriously” to feedback after the public consultation period via Treasury closed on Wednesday.

    One of the key criticisms has been the retrospective element, with the new rules requiring investors and super funds to pay back franking tax credits attached to special dividends received since December 2016.

    As my Fool colleague Brendon reported, the government says the measure will save $10 million a year. 

    But fund manager Geoff Wilson, chair of Wilson Asset Management, reckons it “could run into the billions“.

    Wilson has been a vocal opponent of the proposed laws. He has encouraged investors in his popular WAM funds to lodge their own objections to the draft law via Treasury.

    In separate reporting, the Australian Shareholders’ Association says the changes could “panic” already nervous investors, especially retirees relying on dividends to pay for the cost of living.

    The Association lodged a submission with Treasury during the public consultation period.

    The proposed changes will not impact ordinary dividends. ASX dividend shares will still be able to pay special dividends without franking.

    The Federal Treasurer, Jim Chalmers, has previously described the legislation as “a very minor measure” that closes a loophole that companies use to pay out excess franking credits on their books.

    The previous Coalition Government initially proposed the measure in 2016 but never went ahead with it.

    The S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.61% at the time of writing.

    The post Is the government getting cold feet on proposed changes to ASX dividend franking credits? appeared first on The Motley Fool Australia.

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  • Warren Buffett is getting a helping hand from a surprising source

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Warren Buffett has been making a bold bet on oil prices over the past year. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has been buying shares of oil giants Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) hand over fist to capitalize on the rise in crude prices.     

    While oil prices have cooled off on fears that we’re about to enter a global recession, that slump has reversed recently thanks to OPEC. The group of oil-producing nations has surprisingly agreed to cut its production by a whopping 2 million barrels per day, giving crude prices a lift. That should provide a boost to Buffett’s oil stocks in the future. 

    Taking matters into their own hands

    Oil prices have been on a wild ride this year. The price for Brent crude, the global benchmark variety, started 2022 below $80 a barrel. It soon spiked to more than $120 a barrel following Russia’s invasion of Ukraine. It remained in the triple digits well into the summer before cooling off on concerns that the global economy was starting to slow. Brent recently bottomed out in the low $80s.

    However, it surged above $90 a barrel on rumors that OPEC was about to cut its production. While initial reports suggested the group, along with other nations collectively known as OPEC+, would slash their output by 1 million barrels per day, they have since agreed to an even deeper reduction of 2 million barrels per day. It’s an astonishing development considering that analysts believe the market might not have enough oil supply to meet demand. 

    The cut should at least put a firm floor under oil prices. Meanwhile, it sets crude up to rally sharply if there’s an unexpected supply issue or demand doesn’t cool, as many anticipate in a global recession.

    Giving Buffett a helping hand

    Stable to rising crude prices should be a boon to Buffett’s oil holdings. Berkshire Hathaway has gobbled up more than 163.5 million shares of Chevron, equal to 8.4% of the oil giant’s outstanding shares. That position is worth over $25 billion, making it Buffett’s third-largest stock holding at 8% of his portfolio.   

    Meanwhile, Buffett took advantage of a decline in Occidental Petroleum’s stock price last month as oil prices cooled off to buy another 6 million shares. He now holds 20.9% of the company’s outstanding shares. That position is currently worth nearly $13 billion. Buffett has regulatory approval to take that position up to 50% in the future.

    Chevron has capitalized on rising crude prices this year. It produced $21.8 billion of cash flow from operations during the first half, nearly double the $11.2 billion it generated during that same period last year. That gave it the funds to boost its investments in traditional and new energy by 50%, increase its dividend for the 35th straight year, raise the top end of its share repurchase range to $15 billion, and pay down additional debt.

    Chevron’s cash flow ebbs and flows with oil prices. Because of that, it will likely see a boost from OPEC’s move to bolster crude prices. That would give it more money to allocate toward creating value for shareholders.

    Occidental Petroleum is in the same boat. It has cashed in on higher oil prices this year. It generated a record $4.2 billion of free cash in the second quarter alone. That gave it the funds to repay more than $8 billion of debt by May, quickly exceeding its target. This achievement gave Occidental the confidence to significantly increase its dividend and launch a $3 billion share repurchase program while setting an additional $5 billion debt reduction target. 

    The oil company is more likely to be able to repay debt and return capital to shareholders at a faster rate now that OPEC is making this surprising move to support oil prices. This catalyst could fuel a continued surge in Occidental’s share price this year.

    Boosting Buffett’s bold oil bets

    OPEC has had enough of crude’s recent slide. That’s evident in its surprising decision to slash its output by 2 million barrels per day. This move could drive oil prices higher in the coming months.

    That likely rebound should be a boon to Buffett’s oil investments because it will enable Chevron and Occidental Petroleum to generate more cash. They can use those funds to reduce debt and return more money to investors, which should help boost their stock prices. That unexpected intervention makes Buffett’s oil stock bets look like they’ll continue to pay off.  

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    The post Warren Buffett is getting a helping hand from a surprising source appeared first on The Motley Fool Australia.

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    Matthew DiLallo has positions in Berkshire Hathaway (B shares). 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.   

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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  • 4 ASX 200 directors who raised the stakes in their company shares in September

    A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

    It’s commonly understood in the investing world that when directors spend their own money buying more shares in the ASX companies they run, it’s usually a good sign.

    No one knows a business like the company directors that are calling the shots. And just like us regular ASX investors, they also want to put their money to best use for long-term wealth generation.

    Directors can buy more shares directly, in their own names, using personal cash savings. They can also buy through other vehicles such as super funds and family trusts.

    Sometimes they raise their ‘indirect interests’ in company shares when entities they are involved with purchase more stock. Either way, these are all publicly notifiable trades to the ASX.

    Regardless of the type of investment, an ASX 200 director increasing their personal financial ties to shares in the companies they run should indicate confidence in the stock. Arguably, it’s pretty much always a good sign.

    So, let’s look at who raised their direct or indirect interests in their own ASX 200 companies last month.

    Which ASX 200 directors have been raising their stakes?

    In no particular order, let’s take a look at the following ASX 200 share purchases involving directors.

    Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

    On 30 September, Soul Patts chair and non-executive director Robert Millner told the ASX he had increased his indirect interests in the company with the purchase of 170,000 shares on market.

    The cost was more than $4.5 million and the trades took place between 23 and 28 September.

    On the same day, his son and fellow non-executive director Thomas Millner made the same declaration.

    In both cases, the shares were purchased through three family entities — J S Millner Holdings Pty Limited, T G Millner Holdings Pty Limited, and Mary Millner Holdings Pty Limited.

    The purchase was a “notifiable interest because of a power to exercise, or control the exercise of, a right to vote shares in securities” registered in these names.

    Both men are also directors of New Hope Corporation and just raised their indirect interests there, too.

    New Hope Corporation Limited (ASX: NHC)

    Robert Millner and Thomas Millner declared the purchase of 300,000 New Hope shares last week.

    The shares were purchased for about $1.86 million through a series of trades on 28 September.

    The shares were purchased through three entities — T.G. Millner Holdings Pty Limited, J. S. Millner Holdings Pty Limited, and Hexham Holdings Pty Limited.

    Once again, the purchase was notifiable due to “a power to exercise, or control the exercise of, a right to vote shares in securities” registered in these names.

    Brickworks Limited (ASX: BKW)

    Interestingly enough, Robert Millner is also a director at Brickworks Limited. His colleague there, the managing director and executive director, Lindsay Partridge, also made a declaration to the ASX last week.

    Partridge reported he had increased his indirect interests in Brickworks in a number of ways.

    One of them was purchasing 33,182 shares on market on 26 September. The purchase was made through CPU Share Plans Pty Ltd under the Brickworks deferred STI (short-term incentive) scheme.

    Eagers Automotive Ltd (ASX: APE)

    Eagers Automotive director Nicholas Politis AM has been buying more shares in his company for many months.

    In September, Politis spent a tad over $230,000 buying 20,000 new Eagers shares. By the end of the month, he held more than 70.5 million shares.

    As we previously reported, in July Politis spent $1.5 million buying Eagers shares. By the end of that month, he held more than 70.33 million shares.

    He bought another 100,000 Eagers shares in August.

    The post 4 ASX 200 directors who raised the stakes in their company shares in September appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 Zip share price rocketed 50% in the first quarter, but what now?

    a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.

    a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.

    The Zip Co Ltd (ASX: ZIP) share price was well and truly back on form during the first quarter of the 2023 financial year.

    From the end of June through to the end of September, the buy now pay later (BNPL) provider’s shares rose a massive 57%.

    That was despite the Zip share price having an utterly terrible time last month, slumping a sizeable 28% amid the tech selloff.

    Why did the Zip share price race higher during the quarter?

    The strong performance by the Zip share price during the first quarter appears to have been driven by bargain hunters swooping in on the belief that BNPL shares had been oversold.

    For the same reason, the Openpay Group Ltd (ASX: OPY) share price rose 50% and the Sezzle Inc (ASX: SZL) share price rose 80% over the same period.

    In addition, at the very start of the quarter, Zip announced that it was abandoning its merger with Sezzle. This is expected to help with its aim of reducing its cost base and helping it achieve its profitability targets.

    Where next for its shares?

    Opinion remains incredibly divided on where the Zip share price is heading from here.

    For example, UBS has a sell rating and 45 cents price target on its shares. This implies potential downside of 34% for investors over the next 12 months from current levels.

    Whereas over at Ord Minnett, its analysts have an accumulate $1.10 price target on Zip’s shares. This suggests that its shares could have potential upside of almost 60% for investors between now and this time next year.

    Time will tell which broker makes the right call.

    The post The Zip share price rocketed 50% in the first quarter, but what now? 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 ZIPCOLTD FPO. 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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