Month: October 2022

Why is the PointsBet share price smashing the ASX All Ords on Thursday?
The PointsBet Holdings Ltd (ASX: PBH) share price is having a solid day despite the market weakness.

In morning trade, the sports betting company’s shares are up 3% to $2.10.

This compares favourably to a 0.3% decline by the All Ordinaries index.

Why is the PointsBet share price outperforming?

The catalyst for the rise in the PointsBet share price on Thursday has been the release of an announcement.

According to the release, the company’s Premier Turf Club business has entered into an agreement with 1/ST Technology to deliver a fully integrated, white-label advance-deposit wagering (ADW) horse racing betting experience to PointsBet customers across the United States.

1/ST Technology is a business division of The Stronach Group (TSG), which is North America’s dominant thoroughbred horse racing company.

Under the partnership, 1/ST Technology will provide market leading horse racing betting products and content solutions that will be fully integrated within the PointsBet sportsbook app. The partnership will also deliver a PointsBet branded stand-alone ADW offering in eligible states outside those in which the company currently offers sports betting.

The release notes that the company will own and operate the ADW business, with the ownership of customer data remaining with PointsBet.

Management expects the PointsBet branded ADW solution to launch in early 2023, delivering PointsBet an online betting presence in over 30 US states. This includes in jurisdictions in which it does not currently offer sports betting.

‘A pivotal moment’

PointsBet’s CEO, Sam Swanell, was very pleased with the news and sees it as a pivotal moment for the company’s US expansion. He said:

Today marks a pivotal moment in the evolution of our US expansion strategy. Horse racing has a unique role to play alongside sports betting in the United States, and despite already generating over US$6.5 billion per annum in industry online handle, we consider it an attractive category on the cusp of further expansion on the back of the ongoing shift from brick and mortar to digital.

With PointsBet’s mature market Australian racing expertise, and now a strategic partner in 1/ST TECHNOLOGY that provides us with a market leading portfolio of racing products and services, we can introduce new and existing customers to a dynamic and interactive PointsBet branded horse betting experience. This will be supported through cost effective offers and marketing, along with the utilisation of our extensive US sports betting database.

The post Why is the PointsBet share price smashing the ASX All Ords on Thursday? appeared first on The Motley Fool Australia.

.

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

from The Motley Fool Australia https://ift.tt/tiAakHs
6 October 2022
Lake Resources share price leaps 9% on new lithium deal
The Lake Resources NL (ASX: LKE) share price is surging higher, up 8.96% in early trade.

The ASX lithium stock closed yesterday trading at $1.00 per share and is currently fetching $1.095.

This comes in the wake of a new lithium deal announced this morning.

What new lithium deal was reported?

The Lake Resources share price is running hot after the miner announced a strategic investment and offtake agreement with WMC Energy at its Kachi Project, located in Argentina.

The Conditional Framework Agreement (CFA) will see WMC Energy take a 10% strategic investment in Lake Resources for $1.20 per share. Thatâs 20% above the Lake Resources share price on opening this morning.

The offtake agreement is for 50% of the Kachi Projectâs lithium product, up to 25,000 metric tons per annum (mtpa) of battery grade lithium (LCE). The offtake will be priced based on an agreed market price formula. It lasts for an initial 10-year term, with an option to extend for another five years.

Commenting on the collaboration, Lake Resources executive chairman Stu Crow said:

The CFA delivers a long-term strategic alignment with WMC and its supply chain into its European and North American customers. WMC Energy has a track record of being a market leader in nuclear fuels and expanded into battery materials including lithium to serve predominantly the US and European lithium-ion battery supply chain for EVs with their strategic needs.

Lake Resources CEO David Dickson added, âIncreasing customer and consumer scrutiny around the environmental and ethical credentials of lithium projects particularly from the European markets drives our focus on sustainable extraction.â

Also likely spurring the Lake Resources share price higher today is the prospect that the Kachi Project will be fully developed faster.

Amrish Ritoe, director of corporate business development for WMCâs battery materials team, said, âWith our extensive network in Europe and North America, we are well positioned to create a partnership with Lake and others that will help Lake to accelerate the development of the Kachi Project.â

The agreement remains subject to Lake Resources achieving a standard set of conditions.

Lake Resources share price snapshot

With todayâs intraday gains factored in, the Lake Resources share price is up an impressive 91% over the past 12 months. That compares to a 7% loss posted by the All Ordinaries IndexÂ (ASX: XAO) over the full year.

The post Lake Resources share price leaps 9% on new lithium deal appeared first on The Motley Fool Australia.

.

More reading
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.

from The Motley Fool Australia https://ift.tt/LegBFh6
6 October 2022
Down 20% since mid-August, Lynas share price ‘remains unattractive’: expert
The Lynas Rare Earths Ltd (ASX: LYC) share price has struggled since mid-August, but what do analysts predict for the company?

Lynas shares have descended more than 20% since market close on 17 August and are currently trading at $8.05 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 4% over the same time frame.

Let’s check the outlook for the Lynas share price.

What’s ahead?

Lynas is exploring rare earths Neodymium and Praseodymium (NdPr) at the Mt Weld Project in Western Australia. The company also operates a rare earths processing plant in Malaysia.

Ord Minnett senior investment advisor Tony Paterno is recommending investors sell Lynas Rare Earths shares.

Paterno highlighted Lynas’ recent water supply issues at its Malaysian processing plant. Lynas reported to the market on 13 September the disruption is “affecting production”.

Commenting on his outlook for the Lynas share price on The Bull, Paterno said:

We have lowered fiscal year 2023 production forecasts by 8 per cent. We have reduced our EBITDA forecasts by 13 per cent. In our view, the current risk/reward remains unattractive.

In June, Lynas received a $120 million US government contract for the establishment of heavy rare earths separation facility in Texas. It’s targeting production to begin in financial year 2025. As well, Lynas is also constructing a processing facility in Kalgoorlie.

However, another broker is more optimistic on Lynas shares. The team at Macquarie recently lifted the Lynas outlook to outperform with a $9.40 price target. That’s a nearly 17% upside on the current share price at the time of writing.

Share price snapshot

Despite a tough run year to date, the Lynas share price has risen 27% in the past 52 weeks.

For perspective, the ASX 200 has fallen nearly 6% in the past year.

Lynas has a market capitalisation of about $7.2 billion based on the current share price.

The post Down 20% since mid-August, Lynas share price ‘remains unattractive’: expert appeared first on The Motley Fool Australia.

.

More reading
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.

from The Motley Fool Australia https://ift.tt/xIwrYO5
6 October 2022
Why a 2-day stock market rally hasn’t killed the bear yet
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Investors have finally seen the stock market behave better over the past couple of days. After having to deal with a horrible September that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) into bear-market territory along with the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC), the first two trading sessions of October have been remarkable.

Yet as Wednesday morning dawned, investors appeared likely to have to prepare for a pause in the fourth-quarter celebration. With contracts on stock index futures down around 1%, it’s clear that long-term investors will have to have patience in order to benefit from the recovery when it comes. Moreover, the next several weeks will likely bring a lot more uncertainty into the mix, making it more important than ever to have conviction in your views of the companies in which you’ve invested.

Hope springs eternal

Investors have had to deal with a lot over the past several years. The economic disruptions from a global pandemic forced central banks and national governments to take unprecedented actions. Changes in behavior made businesses pivot sharply, both to keep themselves in operation and to respond to the changing needs of their customers. Even as the influence of the pandemic waned and people strived to return to their former lives, the pace of recovery in various places was out of alignment with others, causing more disruptions that kept businesses from reaching optimal efficiency and capacity.

Central banks always intended the emergency measures they took to be temporary, but market participants had learned to look at such comments with a cynical eye. Even after the financial crisis of 2008 and 2009 gave way to a decade-long expansion, for instance, Federal Reserve officials were reluctant to reverse the flow of liquidity they had added to the financial system in the wake of the Great Recession.

In that context, the current Fed’s insistence on raising interest rates sharply to prevent inflationary pressures from becoming entrenched in the U.S. economy stood out as a different sort of response from the central bank. In large part, the current bear market stems from investors’ disbelief that the Fed would hold the line even in the face of heavy criticism not just from financial markets but also from politicians and the public at large.

Will the Fed flinch?

Movements in the broader financial markets reflected the new belief that the Fed will indeed have to reverse the sharp course of its monetary tightening moves. The abrupt reversal of government policy in the U.K. showed that foreign countries were still paying close attention to what market participants had to say about their actions. The most obvious sign that investors hoped the same would happen in the U.S. came from the big decline in bond yields, which in some ways was even more remarkable than the two-day stock market rally investors have seen.

Yet it’s far from clear that the Fed will reverse course. Having staked its credibility on fighting inflation until the bitter end, even a conciliatory slowdown in its future course of interest rate increases could damage its reputation.

Meanwhile, markets will get huge amounts of information in the coming weeks about what’s happening in the economy. Hundreds of companies will release their third-quarter financial reports, with many of them probably emphasizing the impacts of inflation, a strong U.S. dollar, higher interest rates, and ongoing business disruptions as factors that have held back short-term growth. Yet what investors will likely focus on is whether those companies see better times ahead.

Similarly, economic data will shed light on how entrenched inflation has already become. If falling gasoline prices send costs of other goods and services down along with them, then the Fed might not need to be as aggressive.

Investors need to prepare for continued volatility. Even if the market is beginning a longer-term recovery, it won’t be obvious immediately — and you shouldn’t expect to see the market keep soaring day after day.

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

The post Why a 2-day stock market rally hasn’t killed the bear yet appeared first on The Motley Fool Australia.

.

More reading
Dan Caplinger 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.

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

from The Motley Fool Australia https://ift.tt/9INOATD
6 October 2022
The Rio Tinto share price held up surprisingly well in September. Here’s why
The Rio Tinto Limited (ASX: RIO) share price has seen plenty of volatility over 2022. But, interestingly, the miner significantly outperformed S&P/ASX 200 Index (ASX: XJO) during September.

Last month, the ASX 200 dropped by 7.3%. This compares to Rio Tinto shares which only fell by 1.1%.

Now, it’s worth pointing out that the Rio Tinto share price did start falling on 26 August 2022, and it fell by 5.3% between 26 August and the end of September. Clearly, not every share and index is going to go up and down at the same time. Though, the ASX 200 did drop by 8.9% between 26 August and 30 September.

Let’s have a look at what may have impacted the miner during the month.

September announcements

Rio Tinto made quite a few announcements during the month that may have led investors to want to buy its shares.

One of the first things was that Rio Tinto and Turquoise Hill finally reached an agreement in principle for the ASX miner to acquire full ownership of the Canadian-listed miner for C$43 per share.

This agreement has the unanimous approval of the independent special committee of Turquoise Hill’s board of directors.

The transaction will require the approval of 66.7% of votes cast by shareholders, including Rio Tinto’s and the approval of a simple majority of the votes cast by minority shareholders of Turquoise Hill.

This acquisition will enable Rio Tinto to move forward with the large Oyu Tolgoi copper mine in direct partnership with the Government of Mongolia.

This will also increase Rio Tinto’s exposure to copper, which is seen as having a promising future due to the decarbonisation trend.

Another factor that investors could have taken into account for the Rio Tinto share price was that the ASX mining share and China Baowu Steel Group have agreed to enter into a joint venture for the Western Range iron ore project in the Pilbara, Western Australia.

Construction will begin in early 2023, with first production expected in 2025. Western Range’s annual production capacity of 25mt of iron ore will help sustain production at its existing Paraburdoo mining hub.

Another Rio Tinto announcement was the start of underground mining at its Kennecott copper operations. It approved a $55 million investment in development capital to start underground mining and expand production at Kennecott.

The particular area of underground mining that Rio Tinto will focus on will deliver a total of around 30kt of additional mined copper through the period to 2027, alongside open-cut operations. The first ore is expected to be produced in early 2023, with full production in the second half of the year.

Rio Tinto share price snapshot

Over the past six months, Rio Tinto shares have fallen by around 18%.

The post The Rio Tinto share price held up surprisingly well in September. Here’s why appeared first on The Motley Fool Australia.

.

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

from The Motley Fool Australia https://ift.tt/Q9XBLMP
6 October 2022
Appen share price crashes 18% on ‘ongoing uncertainty’ update
The Appen Ltd (ASX: APX) share price is having a very difficult day on Thursday.

In morning trade, the artificial intelligence (AI) data services company’s shares are down 18% to a multi-year low of $2.73.

Why is the Appen share price crashing?

Investors have been selling down the Appen share price this morning following the release of the company’s trading update for FY 2022.

According to the release, there has been no improvement in trading conditions since the end of a difficult first half. As a result, the company is not expecting to deliver on its full year guidance.

In August, Appen advised that it expected its FY 2022 revenue skew to be weighted to the latter part of the second half, with revenue down year over year due to a slowdown of Global customers.

It also stated that its FY 2022 EBITDA and EBITDA margin was expected to be materially lower than FY 2021. This is mainly due to lower revenue, as well as its investment in product, technology, and transformation.

So how bad is it?

This morning Appen warned that there are significant challenges in providing guidance at this time. This is due to “ongoing uncertainty” in relation to global customer spend and the impact of economic conditions on new business.

Nevertheless, it has provided investors with an idea of what it is now expecting for the full year.

Appen is now expecting:
- FY 2022 revenue in the range of US$375 million to US$395 million (down 11.7% to 16.2%)
- Constant currency EBITDA of US$13 million to US$18 million (down 77.2% to 83.5%)
In respect to its earnings, management advised that this decline is largely due to lower gross profit from lower revenue, and an unfavourable change in its revenue mix. This revenue mix change reflects a reduction in some large higher margin projects and an increase in smaller lower margin projects.

Will things get better soon?

Worryingly for Appen, business is actually booming despite what you might think from the above guidance.

But despite its Global division continuing to win new projects and its project count sitting at an all-time high, the size and stage of these projects is insufficient to offset the reduction in revenue from higher margin core programs.

In addition, management revealed that its non-global business continues to grow. In fact, momentum in the Enterprise business is building with year to date bookings up 22% since this time last year. However, non-global revenues are typically at lower margins compared to its core programs.

In response to these challenges, Appen advised that it is focused on high impact initiatives. These include accelerating productivity improvements, increasing the use of offshore facilities for project delivery, engineering, and business support, and right sizing investments to market opportunities.

Appen’s CEO, Mark Brayan, commented:

Despite the challenging operating conditions, we remain committed to our long-term strategy including investments in New Markets to diversify revenue and products to improve productivity. While our plans to increase the use of offshore facilities are gathering pace as well as our actions to reduce costs, the full benefits of these programs will not be evident in FY2022.

Appen has a strong balance sheet with no debt. Additionally, the business has solid cash conversion, and we remain confident in our ability to invest and implement our strategy during this transitional period.

The post Appen share price crashes 18% on ‘ongoing uncertainty’ update appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

from The Motley Fool Australia https://ift.tt/13GoOuT
6 October 2022
The Woodside dividend is being paid to shareholders today. Here’s the lowdown
The Woodside Energy Group Ltd (ASX: WDS) dividend is due to hit bank accounts today.

Woodside shares have fallen more than 3% since market close on 5 September to $33.87. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has shed 2.09% in the same time frame.

Let’s take a look at the details of the Woodside dividend.

Woodside dividend to be paid today

Woodside investors are due to receive a fully franked dividend of US109 cents today. This will equate to $1.59953041 in Australian dollars, based on the exchange rate of US68.145 cents, as advised on 14 September.

Today’s interim dividend is 263% higher than the dividend paid in the first half of calendar year 2021.

The dividend includes 76 cents per share reflecting 80% of Woodside’s underlying net profit after tax (NPAT), and 33 cents per share from the merger with the petroleum business of BHP Group Ltd (ASX: BHP).

Woodside’s underlying NPAT exploded 414% to US$1.819 billion in the first half of 2022.

Woodside’s 2022 interim dividend is the largest delivered to shareholders since 2014. Commenting on the dividend in a briefing to investors on 30 August, CEO Meg O’Neill said:

It is pleasing to be able to maintain Woodside’s traditionally high dividend yield, particularly given the number of shares on issue was almost doubled on completion of the merger three months ago.

In 2020, Woodside’s interim dividend was US26 cents per share, 76% less than the 2022 interim dividend.

Back in 2018, the company delivered an interim dividend of US53 cents per share, while the 2019 interim dividend was US36 cents per share.

Woodside’s final dividend in 2021 was more than three times higher than the interim dividend.

Woodside share price snapshot

The Woodside share price has soared 35% in the past year, while it has surged 54% in the year to date.

For perspective, the ASX 200 has shed more than 8% in the past year.

Woodside has a market capitalisation of about $64 billion based on the current share price.

The post The Woodside dividend is being paid to shareholders today. Here’s the lowdown appeared first on The Motley Fool Australia.

.

More reading
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.

from The Motley Fool Australia https://ift.tt/T6JVK3f
6 October 2022
3 top-performing ASX ETFs in the first quarter of FY23
With the first quarter of the new financial year done and dusted, it’s an opportune time to take stock.

It was an eventful three months for the S&P/ASX 200 Index (ASX: XJO), which staged a comeback in August before giving back these gains in September.

In the end, the ASX 200 slipped by 1.4% across the quarter to finish at 6,474 points.

But that didn’t stop some ASX exchange-traded funds (ETFs) from knocking it out of the park.

Using data from Google Finance, let’s take a look at the three best-performing ASX ETFs in the first quarter of FY23.

BetaShares Global Uranium ETF (ASX: URNM)

Leading the way in Q1 was the BetaShares Global Uranium ETF, taking out the gold medal with a quarterly gain of 21.8%.

As its name suggests, the URNM ETF aims to provide investors with exposure to a portfolio of leading companies in the global uranium industry.

This includes companies involved in the mining, exploration, development, and production of uranium and modern nuclear energy. It also includes companies that hold physical uranium or uranium royalties.

The URNM ETF comprises around 35 companies. At the moment, its top three holdings are Cameco Corp (NYSE: CCJ), NAC Kazatomprom (LSE: KAP), and Sprott Physical Uranium Trust (TSE: U.U), which account for nearly 43% of the portfolio.

Uranium shares have been on a tear this year as Russia’s invasion of Ukraine has sent global energy markets into a tailspin. Countries have been turning to nuclear energy as a solution, which has sent uranium prices skyward.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Next up, the silver medal goes to the BetaShares Crypto Innovators ETF, which soared by 20.2% across the quarter to finish at $2.68.

The CRYP ETF aims to provide investors with ‘picks and shovels’ exposure to companies at the forefront of the crypto economy. This includes crypto trading platforms, companies building crypto mining equipment, and companies that have significant investments in crypto.

The CRYP ETF currently invests in around 30 companies. Top holdings include Coinbase Global Inc (NASDAQ: COIN), MicroStrategy Incorporated (NASDAQ: MSTR), and Marathon Digital Holdings Inc (NASDAQ: MARA).

Crypto markets have been hammered since the beginning of 2022. But they’ve found some support in the new financial year.

The Ethereum price jumped 24% across the quarter to finish at around US$1,300. However, the Bitcoin price didn’t fare as well, shedding roughly 3% to end at around US$19,500.

This comes amid hopes that the US Federal Reserve might slow down interest rate hikes. According to Forbes, experts believe cryptocurrencies offer a hedge against currency deflation, which is what could happen if interest rate hikes ease.

BetaShares Solar ETF (ASX: TANN)

Rounding out this all-BetaShares podium is the Solar ETF. It lit up with a quarterly gain of 14.4% to finish at $12.73.

The TANN ETF is a relatively new addition to the ASX, joining the ranks in June 2022. It aims to provide investors with exposure to a portfolio of global companies in the solar energy industry.

This includes solar panel manufacturers, inverter suppliers, installers, manufacturers of solar-powered charging systems, and providers of solar project finance.

There are currently 40 companies in the TANN ETF. Top holdings include First Solar Inc (NASDAQ: FSLR), a leading solar panel manufacturer; Enphase Energy Inc (NASDAQ: ENPH), a manufacturer of solar microinverters; and Tesla Inc (NASDAQ: TSLA), the renowned electric vehicle maker.

These companies enjoyed stellar quarters of their own, seemingly boosted by a recently-passed climate bill in the US. First Solar was the standout as its shares soared to new heights, nearly doubling across the three months to US$132.27.

The post 3 top-performing ASX ETFs in the first quarter of FY23 appeared first on The Motley Fool Australia.

.

More reading
- Don’t miss out on these very exciting ASX ETFs
- These could be 2 of the most exciting ETFs for ASX investors to buy
Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betashares Crypto Innovators ETF, Coinbase Global, Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended First Solar. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/f8YaRVd
6 October 2022
Why Tesla shares dropped Wednesday
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened

Tesla (NASDAQ: TSLA) shares have now plunged more than 20% in less than 20 days. There are several reasons for that, but a new catalyst now has the drop gaining momentum. Today, as of 10:34 a.m. ET, the stock was trading at its morning lows down 5.4%.

So what

Today’s move lower was sparked by the news that Tesla CEO Elon Musk has reversed course and now intends to follow through with his bid to purchase Twitter for his original offer price of $54.20 per share. Musk has been fighting in court to back out of the deal, but now intends to spend the full $44 billion he originally offered. That’s likely the part that has Tesla shareholders on edge today. But it shouldn’t be the only point of concern.

Now what

Musk already sold about $20 billion in Tesla stock over a six-month period beginning late last year. He sold an additional $7 billion in August as the fate of his fight to back out of the deal remained uncertain, and he might be forced to pay the full amount. Now he has agreed to that, and Wedbush analyst Dan Ives thinks he might sell another $2 billion or $3 billion of Tesla stock, according to Barron’s.

But that’s not the sole concern for Tesla shareholders. In taking over Twitter, Musk has to now lead a company he himself damaged with repeated claims of fake accounts and incorrect reporting metrics. Now he’ll have deal with repercussions that could include lost advertising and other income streams. Investors are right to wonder whether that could take his focus away from Tesla at a time when the company is ramping up two new factories and fending off an influx of new competition.

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

The post Why Tesla shares dropped Wednesday appeared first on The Motley Fool Australia.

.

More reading
Howard Smith 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 Tesla and Twitter. 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.

from The Motley Fool Australia https://ift.tt/IoDYfp0
6 October 2022
Analysts name 2 ASX dividend shares to buy with 4%+ yields
If you are looking to boost your income with some dividend shares, then two listed below could be worth a closer look.

Both of these dividend shares are expected to provide investors with great yields in the near term. Here’s what you need to know about them:

Macquarie Group Ltd (ASX: MQG)

The first ASX dividend share that could be in the buy zone is investment bank Macquarie.

That’s the view of the team at Morgans, which likes Macquarie due to its exposure to long-term structural growth areas such as infrastructure and renewables. The broker is also expecting the investment bank to benefit from recent market volatility through its trading businesses and win market share in Australian mortgages.

As for dividends, Morgans is expecting partially franked dividends of $7.07 per share in FY 2023 and $7.47 per share in FY 2024. Based on the current Macquarie share price of $162.10, this will mean yields of 4.3% and 4.6%, respectively.

Morgans has an add rating and $215.00 price target on the company’s shares.

National Storage REIT (ASX: NSR)

Another ASX dividend share that has been named as a buy is National Storage. It is one of the region’s leading self-storage operators with over 225 centres that provide tailored storage solutions to 90,000+ residential and commercial customers.

The team at Ord Minnett is positive on the company after its strong showing in FY 2022. National Storage reported a 28% increase in total revenue and a 46% increase in underlying earnings to $126.5 million. This was underpinned by acquisitions, a strong increase in revenue per available metre, and a 2.8% increase in its occupancy rate.

Looking ahead, the broker is forecasting dividends per share of 11 cents in both FY 2023 and FY 2024. Based on the current National Storage share price of $2.33, this equates to yields of 4.7%.

Ord Minnett has a buy rating and $2.70 price target on its shares.

The post Analysts name 2 ASX dividend shares to buy with 4%+ yields appeared first on The Motley Fool Australia.

.

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

from The Motley Fool Australia https://ift.tt/CqYyBz2
6 October 2022