Month: October 2022

Why is the Woodside share price beating the ASX 200 today?
The S&P/ASX 200 Index (ASX: XJO) is leaping 2.47% today, but the Woodside Energy Group Ltd (ASX: WDS) is outperforming the index.

The Woodside share price is leaping 3.73% today and is currently trading at $33.245.

Let’s take a look at why the Woodside share price is having such a good day.

Oil prices rise

Woodside is lifting today, but it is not the only oil producer having a good day. The Santos Ltd (ASX: STO) share price is rising 3.7%, while Beach Energy Ltd (ASX: BPT) shares are lifting 2.84%.

Higher oil prices overnight and a promising outlook for the oil price appear to be helping major oil producers including Woodside today.

The brent crude oil price lifted 4.4% to US$88.86 a barrel and WTI crude oil price rose 5.2% to US$83.63 a barrel in global markets overnight, Reuters reported.

Oil prices jumped after news emerged the Organization of the Petroleum Exporting Countries and allied (OPEC+) may cut output by more than 1 million barrels per day. In comments cited by Reuters, Oanda market analyst Craig Erlam said:

After a year of tolerating extremely high prices, missed targets and severely tight markets, the (OPEC+) alliance seemingly has no hesitation when it comes to acting rapidly to support prices amid a deterioration in the economic outlook.

PVM Oil Associates senior analyst Stephen Brennock tipped oil prices to hit US$100 a barrel again, CNBC reported. He said:

A further uptick in trading activity coupled with tightening near-term oil fundamentals could well push oil prices back to $100/bbl.

The brent crude oil price is currently up 0.42% to US$89.23 a barrel, while WTI crude oil is up 0.18% to US$83.78 a barrel, Bloomberg data shows. Natural gas is also up 0.25% to US$6.49 per MMBtu.

Woodside share price snapshot

The Woodside share price has risen nearly 6% in the past year, while it has gained almost 5% in the year to date.

For perspective, the ASX 200 has shed more than 10% in the past year.

Woodside has a market capitalisation of more than $3.3 billion.

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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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4 October 2022
Amazon’s second prime day: Genius move or worrisome indicator?
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.

It’s going to be Christmas in October for consumers after Amazon (NASDAQ: AMZN) announced it would be holding a second Prime Day event this year. Dubbed the Prime Early Access Sale, the e-commerce extravaganza will be held on Oct. 11 and Oct. 12.

The event is ostensibly intended to fire up consumers who are reeling from inflation ahead of the holidays — and also blunt the impact of similar sales events being held by Target (NYSE: TGT) and Walmart (NYSE: WMT). However, there are reasons to be concerned that Amazon could dull the luster of its main summer sale by holding too many similar doorbuster sales. It could also mask the slowdown its e-commerce operations are experiencing.

Getting a jump on Christmas

Amazon is extending early access to holiday savings to Prime program members in 15 countries (including, of course, new members signing up for 30-day free trials).

The move comes as Walmart prepared to kick off its own Christmas sales push on Oct. 1 by cutting prices in key categories, extending its returns window to Jan. 31 for products purchased now, and also making it easier to initiate returns by either using curbside pickup or return pickups from homes for Walmart+ members.

Target is similarly getting the season’s greetings going early with a Deal Days promotion that will run from Oct. 6 through Oct. 8, discounting thousands of items. The retailer has also said it intends to hire 100,000 seasonal workers to handle the expected holiday sales surge.

“Holiday creep” has been a problem for years, though. Because the Christmas season now can account for as much as 20% to 30% of a retailer’s annual revenue, chains have steadily pushed the start dates for their holiday-focused promotions earlier and earlier. This year’s moves just continue the trend.

Consumers are cutting back on shopping

Retailers’ desires to get a jump on their most important sales period may also reflect their concerns about slowing revenue growth. Amazon’s net sales growth slowed in the second quarter to just 7.2% year over year, bringing it to $121 billion. That was a slight deceleration from the 7.3% gain in the first quarter and also the slowest growth rate Amazon has recorded in more than two decades, even though the period included the summer Prime Day sale.

While we won’t see Amazon’s third-quarter results for a few weeks yet, it’s clear that the new Prime Early Access event is intended to juice the company’s fourth-quarter numbers. The competition is making similar efforts for similar reasons.

Target suffered a 90% year-over-year decline in profits in the second quarter as it slashed prices on inventory that wasn’t moving, while Walmart warned this summer that its full-year profits would plunge by 11% to 13% due to consumers cutting back on discretionary purchases. The retailer had previously expected a 1% profit decline.

The risk for Amazon, however, is it will dilute the effectiveness of Prime Day by having yet another sales festival. When consumers believe they won’t have to wait long for another major sale, it reduces their sense of urgency about buying. Adding this October sales event may also undermine the significance of Cyber Monday/Cyber Week, another important sales period for online retailers.

A blue Christmas

Some may see adding a second Prime Day-themed sales event to the calendar as a genius move on Amazon’s part, as it allows the e-tailer to remain competitive and appeal to consumers who are spending more cautiously due to inflation. But it’s also a worrisome trend as it hides from investors the actual sales slowdown underway.

Bain & Co. forecasts that holiday spending will grow by 7.5% from last year, but when adjusted for inflation, the increase will really only be 1% to 3%. Pulling some sales forward into October won’t really achieve anything for the retailer other than preventing later-acting rivals from stealing those sales away from it. While that could make it worthwhile, it could just end up being a wash because so many other chains are doing the same thing.

Amazon is still the place most consumers turn to first when shopping for goods online, but there might not be as much cheer this holiday season, no matter how early its Christmas sales begin.

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

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Rich Duprey has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Target, and Walmart Inc. The Motley Fool Australia has recommended Amazon. 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 October 2022
Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in
The value of Australia’s combined coal exports is tipped to surge to $120 billion in financial year 2023, driving the nation’s resource and energy exports to a record $450 billion — and plenty of S&P/ASX 200 Index (ASX: XJO) shares could cash in.

The findings were published in the Australian government’s latest Resources and Energy Quarterly report.

It tips the value of the nation’s thermal coal exports to surpass those of metallurgical coal during this fiscal year – reaching $62 billion and $58 billion respectively. That’s up from $46 billion and $66 billion respectively in financial year 2022.

Perhaps unsurprisingly, the S&P/ASX 200 Energy Index (ASX: XEJ) – hosting the market’s largest coal shares – is among the market’s best-performing sectors right now. It’s gaining 3.2% compared to the benchmark index’s 2.39% lift.

Aussie coal exports tipped to reach all-time high in FY23

Surging commodity prices will likely drive Aussie exports to a new record, according a report from the Department of Industry, Science, and Resources. And coal will be one of the major contributors.

Record thermal coal prices are expected to see $62 billion worth of the electricity-generating commodity exported in financial year 2023 – up from $46 billion in the previous year.

After averaging at US$333 a tonne in 2022, the thermal coal price is tipped to fall to US$125 a tonne in 2024. Though, that’s still well above historical averages.

It also faces potential boosts from the European energy crisis and possible La Niña-driven flooding in eastern Australia

An increase in thermal coal exports will likely offset the falling value of Australian metallurgical coal, otherwise known as coking coal.

The price of coking coal – mainly used to make steel – is forecast to average at nearly US$400 a tonne in 2022. After that, it’s tipped to fall amid normalising supply chains, reaching US$220 a tonne by 2024.

That means Aussie exports of the commodity are expected to fall from $66 billion in financial year 2022 to $58 billion in financial year 2023.

ASX 200 coal shares cashing in

Of course, what’s good news for coal is generally good news for ASX 200 coal shares. They’re all trading higher following the report’s release.

Shares in coal producer New Hope Corporation Ltd (ASX: NHC) are surging 5.16% right now.

Most of New Hope’s earnings come from thermal coal. Though, it’s got its eye out for opportunities in coking coal.

Meanwhile, the Whitehaven Coal Ltd (ASX: WHC) share price is up 3.61% at the time of writing. The company produces both thermal and metallurgical coal.

Finally, the share price of coal producer Coronado Global Resources Inc (ASX: CRN) is up 3.28%.

Most of the company’s business is in coking coal. The commodity represented 96% of the company’s coal revenues in the first half of 2022.

The post Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in appeared first on The Motley Fool Australia.

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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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4 October 2022
Why did the Lake Resources share price get smashed in September?
The Lake Resources N.L. (ASX: LKE) share price may be back on form on Tuesday, but it was a very different story in September.

During the month, the lithium developer’s shares crashed a disappointing 23% lower.

What happened to the Lake Resources share price last month?

Investors were selling down the Lake Resources share price last month for a couple of reasons.

The first was the significant market volatility that occurred amid concerns that a global recession is coming.

Higher risk investments, such as lithium shares, were hit hardest. This led to many lithium shares recording particularly large declines during the month.

What else?

Also putting pressure on the Lake Resources share price was news that the company is facing an ownership dispute with its partner Lilac Solutions.

Lilac Solutions is the company providing the DLE technology that will be integral to Lake Resources’ Kachi operation.

According to the release, Lilac Solutions believes it has until the end of November to achieve certain milestones that will grant it a 25% ownership in the Kachi project.

However, Lake Resources doesn’t agree and says that these milestones needed to be delivered by the end of September to achieve an interest in the project. To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement of both Lake and Lilac or by arbitration.

This is a bit of a concern for investors as Lilac Solutions’ unproven technology has been talked up by management as being the key to making the project a success. Management previously commented on Lilac’s technology. It said:

Lake believes DLE will become the primary method of lithium extraction because it is the only practical way to ramp up lithium supply sustainably and in a way that conforms to increasing ESG scrutiny on lithium projects. However, in the lithium industry not all DLE processes are the same. This is why Lake has taken the time to identify the process that is not only most efficient but also delivers a product that represents the most socially and environmentally sustainable approach to lithium extraction through ion exchange DLE and brine managed reinjection.

The phrase: ‘don’t bite the hand that feeds you’, springs to mind here.

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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 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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4 October 2022
ASX gold share surges 42% following ‘mining CEO of the year’ appointment and maiden lithium project news
The S&P/ASX 200 Materials Index (ASX: XMJ) is lifting nearly 3% today, but one ASX gold share is soaring far higher.

The Cygnus Gold Ltd (ASX: CY5) share price is soaring 42% today and is currently trading at 35.5 cents.

Let’s take a look at why this explorer is having such a good day.

Lithium project news

Cygnus Gold is exploring lithium, gold, nickel, copper and platinum. Today, the company advised it has appointed David Southam to the board.

The company has named this key appointment as it prepares for maiden drilling at the Pontax Lithium Project in James Bay, Canada.

Southam’s experience includes a three-year stint as managing director at Mincor Resources NL (ASX: MCR). He recently received “Mining CEO of the year” accolades from mining publication Mining News.

Southam will serve as non-executive director at Cygnus Gold from 1 November before taking on the managing director role from mid-February.

The Pontax lithium project is 50km away from the Allkem Ltd (ASX: AKE) James Bay lithium project.

Cygus highlighted that all holes drilled so far at Pontax have intersected with “spodumene bearing lithiumcaesium-tantalum (LCT) pegmatites”. The company plans to start a 10,000m drilling program in the upcoming quarter.

Commenting on today’s news, Cygnus chairman Ray Shorrocks said:

David’s decision to join Cygnus also speaks volumes about the potential at Pontax, where drilling has already established the presence of high-grade spodumene.

Cygnus Gold share price snapshot

The Cygnus Gold share has exploded 182% in the past year and is up 102% year to date.

For perspective, the ASX 200 Materials Index has climbed nearly 7% in the last year.

Cygnus gold has a market capitalisation of about $51 million based on the current share price.

The post ASX gold share surges 42% following ‘mining CEO of the year’ appointment and maiden lithium project news 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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4 October 2022
Leading brokers name 3 ASX shares to buy today
With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Life360 Inc (ASX: 360)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this location technology company’s shares with a buy rating and $7.50 price target. Goldman notes that Life360 is exposed to an estimated US$12 billion global total addressable market. In addition, the broker believes that Life360 is reaching a volume/pricing inflection point, with potential structural profitability tailwinds on the horizon. The Life360 share price is trading at $5.00 today.

New Hope Corporation Limited (ASX: NHC)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this coal miner’s shares to $7.20. The broker is positive on the company due to higher-than-expected coal prices. It also sees the potential Acland approval (AWL) as an under-recognised catalyst, capable of adding +70 cents per share to market valuations. The New Hope share price is fetching $6.60 on Tuesday.

Xero Limited (ASX: XRO)

Analysts at Citi have retained their buy rating and $106.80 price target on this cloud accounting platform provider’s shares. This follows the investor day event of rival Intuit. Citi highlights that the Quickbooks owner is growing subs quicker than Xero in the US. However, Xero is outperforming outside the US and particularly in the UK. Overall, it hasn’t seen anything to change its view that Xero is well-placed for strong growth. The Xero share price is trading at $73.78 this afternoon.

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Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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4 October 2022
Government tips Aussie lithium exports to surge 180%. Which ASX shares are in on the action?
ASX lithium shares are in the spotlight today.

Again.

This comes following the release of the Industry Department’s latest quarterly Resources and Energy Report.

And investors in lithium stocks will likely take heart from what the report reveals.

Lithium exports to surge 180%

Lithium is a crucial element in lithium-ion batteries that power EVs.

Some 75% of the world’s consumption of lithium currently goes into rechargeable batteries. And EV sales are forecast to grow tenfold over the next decade. Remarkable growth that’s kept ASX lithium shares high on investor radars.

With Australia already claiming the title of the world’s top exporter of lithium, the Industry Department report states, “Notably, lithium exports are now forecast to rise by over 180% to $13.8 billion in 2022-23.”

This compares to $4.9 billion in 2021-2022, a figure which was just revised upwards from the previous $4.1 billion estimate.

Remarkably, lithium export earnings in 2020-21 were ‘only’ $1.1 billion. Meaning a tenfold increase in just two years. Certainly, some gusty tailwinds for ASX lithium shares.

Further ahead, Industry Department analysts expect lithium export revenues to drop slightly in 2022-23 to $12.9 billion as lithium prices ease amid more supply coming onto the market.

As for prices for the battery critical mineral, the report stated, “We expect lithium hydroxide prices to lift from US$17,370 a tonne in 2021 to US$38,575 a tonne in 2022 and US$51,510 in 2023, and moderate to US$37,650 by 2024.”

That’s the outlook for the battery-critical metal.

Now which ASX lithium shares are in on the action?

Which ASX lithium shares are in on the action?

While there is a wide range of ASX lithium shares exploring lithium, only a handful are currently producing and exporting the metal.

First up we have Mineral Resources Limited (ASX: MIN).

While Mineral Resources is also a mining services company, it has a large footprint in the lithium space. The miner’s Mt Marion operations in Western Australia are situated in the Pilbara region.

The Mineral Resources share price is up 58% over the past 12 months.

Next, we have Allkem Ltd (ASX: AKE), formerly known as Orocobre.

Allkem’s projects are primarily located in Argentina. It supplies lithium carbonate to a variety of industrial and technical sectors. The miner is among the lowest-cost lithium producers in the world and aims to ramp up production by three times its current levels by 2026.

The Allkem share price is up 73% in 12 months.

The third ASX lithium share in the production stage is Pilbara Minerals Ltd (ASX: PLS).

Pilbara’s Pilgangoora Lithium-Tantalum Project is also located in the Pilbara region of Western Australia.

Pilgangoora is one of the largest hard-rock lithium-tantalum deposits in the world. Pilbara forecasts spodumene concentrate capacity at Pilgangoora will increase from 560,000 to 580,000 dry metric tonnes (dmt) this year.

The Pilbara share price is up 158% over the past full year.

In case you’re wondering, Core Lithium Ltd (ASX: CXO) isn’t officially on this list yet. That’s because the miner’s Finniss Lithium Project, located in the Northern Territory in proximity to Darwin, hasn’t produced its first lithium yet. Though that production is now forecast to be just months away.

The Core Lithium share price has rocketed 169% in 12 months.

The post Government tips Aussie lithium exports to surge 180%. Which ASX shares are in on the action? 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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4 October 2022
Why Allkem, Evolution, Paradigm, and Sayona Mining shares are zooming higher
The S&P/ASX 200 Index (ASX: XJO) is back on form on Tuesday and racing higher. In afternoon trade, the benchmark index is up 2.5% to 6,619.2 points.

Four ASX shares that have climbed more than most today are listed below. Here’s why they are zooming higher:

Allkem Ltd (ASX: AKE)

The Allkem share price has rebounded 7% to $14.14. Investors have returned to lithium shares again after investor sentiment improved materially following a very strong night of trade on Wall Street. This has helped drive the materials sector an impressive 3.35% higher on Tuesday.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is up 4% to $2.09. This follows a strong rebound from the gold price overnight after the US dollar and bond yields softened. In addition, this morning Evolution announced that it has secured a competitive, long-term power supply agreement for its Cowal Gold Operation under a new eight-year partnership with AGL Energy Limited (ASX: AGL).

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price has jumped 19% to $1.50. The catalyst for this has been the release of positive results from a clinical trial for osteoarthritis (OA). According to the release, several OA biomarkers analysed were observed to favourably change over time in patients treated with iPPS compared to a placebo. Management highlights that there were 303.1 million cases of hip and knee osteoarthritis worldwide in 2017, giving it a significant market opportunity.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 12% to 25.3 cents. Investors have been buying this lithium developer’s shares following a rebound in the lithium industry and the release of a promising announcement. The latter reveals that Sayona is looking at the potential production of lithium carbonate at the North American Lithium (NAL) operation. This lithium carbonate would be made from spodumene produced at NAL.

The post Why Allkem, Evolution, Paradigm, and Sayona Mining shares are zooming 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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4 October 2022
This FAANG stock is down 35%. Buying it could be a genius move
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.

This market is taking no prisoners. Whether you own shares of a newly public company or one of the world’s most dominant technology enterprises like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), it’s been a rough year. Specifically, Alphabet is down 35% from its high, its largest decline since the Great Recession (2007-2008).

But it’s not just a market issue. Companies that advertise to make money, like Alphabet, are pointing out economic turbulence on the horizon and bracing for a more challenging operating environment. It can sound cliched, but leaning into the fear and buying Alphabet could be a decision you’re bragging to your friends about when things eventually turn around. Here is why.

Advertising is becoming treacherous waters

Alphabet makes most of its money by selling ads on its two most popular internet platforms, Google Search and YouTube. Traffic is a vital part of that. The more eyeballs you have, the more you can charge for your ads. However, the total money companies spend on ads, which you can think of as a pie, can fluctuate in size. Companies might advertise more when the economy is doing well, and potential customers are spending more. On the other hand, ad budgets might shrink when the economy is doing poorly, and people aren’t spending as much.

The US economy has already been slowing down. Gross domestic product (GDP) was negative over the past two quarters. Some view it as a recession already, but the worst might not be over. The Federal Open Markets Committee (FOMC), which sets the federal funds rate, the benchmark interest rate that determines what the rest of the economy can borrow at, is rapidly increasing rates to combat high inflation.

U.S. Inflation Rate data by YCharts

This affects the economy. You may notice that mortgage rates at your local bank have soared. Companies that borrow money must now pay higher interest on their loans. Rising rates make borrowing more expensive and reduce how much people and businesses spend. That lower economic activity means that advertising budgets are likely coming down. That pie piece that represents advertising spend may get smaller.

Broken stock, not broken company

You can see this play out in Alphabet’s revenue growth over the past year, which has dramatically decelerated. Going from 40% growth year over year to 12% growth in four quarters seems like hitting the brakes pretty hard. But it’s essential to understand the context behind this and ask: Is this because Alphabet isn’t getting the eyeballs to charge for its ads, or is what companies spend on ads shrinking?

GOOG Revenue (Quarterly YoY Growth) data by YCharts

Based on the economic circumstances above, the pie is getting smaller. You can check advertising companies’ landscapes and see similar growth collapses. Roku, for example, guided for 35% revenue growth for the entire 2022 year in the first quarter. But it completely withdrew its full-year revenue growth guidance just one quarter later due to economic concerns.

On the other hand, Alphabet’s top two platforms (Google and YouTube) remain top traffic getters. A report for August from Semrush named Google and YouTube as the two top sites on the internet, garnering more than 23 billion visits in August. Facebook.com was third at just 5.5 billion visits, which shows just how large the gap is between Alphabet and the rest of the field. Investors can be reasonably sure that Alphabet’s ad revenue will recover once the economy improves because its websites remain the dominant internet destinations where brands prioritize their ad budgets.

Enjoy the sale

The stock’s decline remains a buying opportunity for long-term investors. Alphabet now trades at its lowest price-to-earnings (P/E) ratio in a decade and is well below its median P/E of 27. From a price-to-sales (P/S) standpoint, the stock has only been less expensive during the COVID-19 crash in 2020.

GOOG PE Ratio data by YCharts

Sure, growth may slow temporarily in this cruddy economic environment. Still, Alphabet remains a dominant business with a fortress-like balance sheet that includes $125 billion in cash against just $12 billion in debt. It seems this drop is market- and economy-driven and not due to Alphabet’s fundamentals, making this a possible buy-the-dip moment for patient investors.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Justin Pope has positions in Roku. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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4 October 2022
Why Cronos Australia, Mesoblast, Sims, and WAM Research are dropping
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and raced higher. At the time of writing, the benchmark index is up 2.45% to 6,614.4 points.

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

Cronos Australia Ltd (ASX: CAU)

The Cronos Australia share price is down 5% to 68.5 cents. This is despite there being no news out of the medicinal cannabis company. However, it is worth noting that even after today’s decline, the Cronos Australia share price is up 25% since this time last month. This could mean that profit taking is weighing on its shares today.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down over 1% to 83 cents. This also appears to have been driven by profit taking from investors following a strong showing on Monday. The biotech company’s shares jumped yesterday following the release of a promising update.

Sims Ltd (ASX: SGM)

The Sims share price is down over 1% to $13.05. This has been driven by the scrap metal company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving Sims’ partially franked 50 cents per share dividend later this month on 19 October.

WAM Research Limited (ASX: WAX)

The WAM Research share price is down 6% to $1.34. This has also been driven largely by the fund manager’s shares going ex-dividend this morning. WAM Research will be paying eligible shareholders a fully franked 5 cents per share dividend in a couple of weeks. That payment is scheduled to hit bank accounts on 17 October.

The post Why Cronos Australia, Mesoblast, Sims, and WAM Research are dropping 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 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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4 October 2022