Day: 21 November 2022

Gold fever looks to have gripped investors on Monday as they send this ASX gold share minnow rocketing.

The gold stock was up as much as 150% in early morning trade and is currently trading 111% higher at 14 cents.

Any guesses on which ASX gold share we’re talking about?

If you said Iceni Gold Ltd (ASX: ICL), give yourself a, erm, gold star.

So, why is the Iceni Gold share price going gangbusters?

What’s driving investor interest in this tiny ASX gold share?

Investors are snapping up Iceni Gold shares after the explorer reported discovering gold nuggets at its Guyer target area, situated within its 14 Mile Well Gold Project in Western Australia.

According to the release, the high-purity nugget trend extends across several kilometres and coincides with the UFF+ gold anomaly reported earlier this month. Iceni said this provided evidence of a nearby primary source for the nuggets, clearly piquing investor interest.

The ASX gold share has been conducting an extensive air core drilling campaign at Guyer, with 363 holes totalling 23,000 metres completed. The assays on the AC holes are expected any day now.

The Iceni Gold share price is likely getting an additional boost from the report that it has discovered additional nuggets at its Everleigh target.

Commenting on the development sending the ASX gold share rocketing today, Iceni technical director David Nixon said:

The gold nuggets provide physical support for the UFF+ soil anomaly and the shape and composition of the nuggets suggest primary sources are nearby. The results of the air core program at Guyer that covers the same area will help to confirm if there is mineralisation in that area.

The company cautioned investors that “the visual identification, estimates of mineral abundance or point pXRF measurements should never be considered a proxy or substitute for laboratory analyses”.

That laboratory analysis in this case is “imminent”.

Iceni share price snapshot

Despite today’s big leap higher, the ASX gold share remains down 27% year to date. That compares to a loss of 7% posted by the All Ordinaries Index (ASX: XAO) in 2022.

The post Guess which ASX gold share rocketed 150% today on a ‘significant nugget discovery’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are Vanguard International Shares ETF dividends fully franked?
• Warren Buffett doesn’t follow his own advice – and it’s made him richer
• Why did this ASX lithium share just crash 42%?
• Why is the Fortescue share price getting hammered on Monday?
• If I’d invested $1,000 in Westpac shares at the start of 2022, here’s how much I’d have now

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/xqMfB2r

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.

Warren Buffett has made many memorable statements throughout the years. One I’ve always especially liked is this line he wrote in his 1996 letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

That’s exactly the kind of thing you’d expect to hear from a legendary investor known for his buy-and-hold long-term mindset. This is the same person who once stated that his “favorite holding period is forever”. You’d also probably think Buffett has always practised what he’s preached.

Think again. Buffett doesn’t follow his own advice on this front nearly as often as you might expect. And it’s actually made him richer.

The 10-year test

My curiosity recently got the better of me. I went back to Berkshire’s 13F-HR filing for the third quarter of 2012. The purpose was simple: I wanted to see just how many of the stocks Buffett owned (via his stake in Berkshire) 10 years ago were still in his portfolio as of the latest regulatory filing.

In Q3 2012, Berkshire owned 37 stocks. Only 15 of those stocks were in the conglomerate’s portfolio 10 years later. Of course, this didn’t mean that Buffett hadn’t owned the other 22 stocks for 10 years. After all, he could have bought them well before 2012 and still held them for at least that long. That was exactly the case with seven of them. 

There were also some other unusual scenarios to account for. One of those stocks from 2012 (Precision Castparts) was fully acquired by Berkshire along the way. On the other hand, Buffett sold Viacom during the period only to buy it back with the purchase of Paramount Global shares earlier this year. (Viacom later became ViacomCBS and renamed itself Paramount Global in February 2022.)

We also should cut Buffett some slack in a few cases. Three of the companies in which Berkshire owned shares back in 2012 were later acquired and taken private — USG, Wabco, and The Washington Post. He couldn’t still own these stocks today even if he wanted to.

Still, though, Buffett didn’t hold on to 11 of the stocks in Berkshire’s portfolio in Q3 2012 for at least 10 years. That’s nearly 30% of the total number of stocks he owned back then. This got me to question whether his decisions to sell those stocks were smart moves.

A lazy analysis

I took an admittedly lazy approach in analyzing Buffett’s wisdom in selling so many stocks before he had held them for 10 years. But I think my quick-and-dirty method is nonetheless instructive.

No, I didn’t try to do the practically impossible task of guessing what Buffett did with the money made from those sales. I simply compared the performances of all the stocks in Berkshire’s Q3 2012 portfolio that Buffett hadn’t held for at least 10 years against how Berkshire itself performed between the end of Q3 2012 and the end of Q3 2022.

So what did I find? Only two of the 11 stocks that Buffett sold without holding for 10 years had delivered a total return greater than Berkshire’s by the end of the third quarter of 2022 — Deere and Verisk Analytics.

The bottom line here is that Buffett appears to have come out better overall by selling this group of stocks instead of holding them for 10 years. He’s richer because he didn’t dogmatically buy and hold.

RIP, buy and hold?

Don’t say “rest in peace” to the buy-and-hold philosophy just yet, though. For one thing, Buffett did use some wiggle words in his previous statements. He didn’t insist that investors should always hold stocks for at least 10 years. He merely said that you should be willing to own the stocks for that long.

The reality is that you can have a long-term mindset even when you don’t hold some stocks for an especially long period. I don’t think Buffett bought any of those stocks back then without being willing to own them for at least a decade. However, business dynamics can change. And it’s possible for even the Oracle of Omaha to make mistakes.

Perhaps Buffett won’t keep the stocks that he’s recently added to Berkshire’s portfolio for 10 years. If he doesn’t, though, I think his advice to Berkshire shareholders in 1996 is still relevant. Be willing to buy and hold for the long term. Let your winners run. But if your premise for buying a stock changes, sell it. Buy and hold doesn’t have to mean buy and hope.

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

The post Warren Buffett doesn’t follow his own advice – and it’s made him richer appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• I’d use the Warren Buffett method to create a ‘best ASX shares to buy now’ list
• This is how Warren Buffett defines a great business — and how you should too
• Is it a Warren Buffett stock or not? 5 simple questions to ask yourself
• These 3 US stocks were Warren Buffett’s biggest winners over the past 5 years
• Warren Buffett bought $9 billion in stocks and sold more than $5 billion last quarter

Keith Speights has positions in Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Deere & Company and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B 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.

from The Motley Fool Australia https://ift.tt/wTcPLyO

The Ragusa Minerals Ltd (ASX: RAS) share price is having a day to forget.

In morning trade, the lithium explorer’s shares crashed as much as 42% to 10.5 cents.

The Ragusa Minerals share price has since recovered a touch but remains down 22% at 14 cents.

Why is this lithium share crashing?

Investors have been hitting the sell button today after the company released an update on the NT Lithium Project located approximately 120km south of Darwin.

According to the release, the company has completed a total of 18 reverse circulation drillholes comprising a total of 1505 metres drilled. From these 18 drillholes, Ragusa revealed that 12 intersected pegmatite.

Select pegmatite drill samples have now been delivered to a laboratory for lithium analysis testing.

Ragusa chair, Jerko Zuvela, commented:

The Company is pleased to have conducted our maiden exploration drilling program at our strategic and highly prospective NT Lithium Project. We are very encouraged by the preliminary drilling observations at our priority targets, noting the scale of the pegmatite zones encountered within our project area. We look forward to receiving the lithium assay results in coming weeks.

The completion of the initial exploration program is another positive step that puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high-quality lithium district in a Tier 1 jurisdiction close to major infrastructure at a time of record lithium prices.

So what’s wrong?

While the above sounds positive, the Ragusa Minerals share price performance today certainly paints a very different picture.

This appears to be down to management’s comments on the drillholes. It notes that “geological staff identified additional samples containing visually significant levels of graphite in the hangingwall and footwall zones either side of some of the pegmatites.”

There was no mention of visible lithium, which appears to have investors concerned that the NT Lithium Project could ultimately prove to be a dud.

They will have to sit tight and wait for the assay results to be received in the coming weeks.

The post Why did this ASX lithium share just crash 42%? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Fortescue share price getting hammered on Monday?
• If I’d invested $1,000 in Westpac shares at the start of 2022, here’s how much I’d have now
• Does Amazon’s latest healthcare move make the stock a buy?
• Why is the Nanosonics share price crashing 12% today?
• Do you know what happened on the ASX recently?

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.

from The Motley Fool Australia https://ift.tt/fwvna6X

The S&P/ASX 200 Index (ASX: XJO) is having a rather shaky start to the trading week this Monday. At the time of writing, the ASX 200 has spent time in both positive and negative territory over the first hour or two of trading. The index is currently up, but only just, enjoying a gain of 0.1%, which puts it at just over 7,150 points.

But let’s talk about the Fortescue Metals Group Limited (ASX: FMG) share price. Although the ASX 200 is rising today, Fortescue shares are going the opposite way. The mining giant is currently suffering through a 3.4% loss, putting Fortescue down to $19.28 a share.

A 3.4% loss when the ASX 200 is in the green is certainly a move worthy of note. So what’s going on with Fortescue shares today?

What’s up with the Fortescue share price on Monday?

Well, it’s nothing to do with anything out of the company itself, since there is nothing today. In fact, Fortescue’s last ASX announcement was released back on 27 October. So this certainly isn’t moving the markets today.

But commodity prices certainly are. Prices of raw materials have taken a dive across the board today. As my Fool colleague James discussed this morning, this Monday has seen both lower oil and gold prices. This is weighing heavily on ASX resources shares of all shapes and sizes today.

Take BHP Group Ltd (ASX: BHP) shares. They are presently down by 1.5%. Woodside Energy Group Ltd (ASX: WDS) shares have lost 1.65%, while the Rio Tinto Limited (ASX: RIO) share price has tanked by 2.1%

We don’t yet have any firm pricing on iron ore for this week. But it’s clear investors aren’t too optimistic about this sector today, given that the ASX iron ore miners like Fortescue are some of the worst-performing ASX 200 shares this Monday.

So this is probably why we are seeing such weakness in the Fortescue share price thus far today.

At the current Fortescue share price, this ASX 200 mining giant has a market capitalisation of $59.5 billion, with a trailing dividend yield of 15.37%.

The post Why is the Fortescue share price getting hammered on Monday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Of all the ASX 200 miners, here’s why I decided to buy Fortescue shares
• Here are the top 10 ASX 200 shares today
• Is a weak US dollar good for ASX 200 mining shares?
• The latest $750 million investment by Fortescue’s Andrew Forrest might surprise you
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?

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

from The Motley Fool Australia https://ift.tt/1nRgIhM

If I’d sunk $1,000 into Westpac Banking Corp (ASX: WBC) shares on the first trading day of 2022, I’d be a happy investor today. Here’s how my figurative investment in the S&P/ASX 200 Index (ASX: XJO) big four bank would have played out for me.

Westpac shares prove a winner

Assuming I’d invested $1,000 in Westpac stock on 4 January 2022, I would have walked away with 46 shares, paying $21.66 apiece.

And for a while, that buy would have been a notably good one. The Westpac share price launched to a 52-week high of $24.67 in April – leaving my parcel with a total value of $1,134.82.

Sadly, that high didn’t last long. The bank stock plummeted in June amid a 0.5% rate hike executed by the Reserve Bank of Australia.

On 17 June, it reached its lowest point of the year, trading at $18.80. At that point, my initial investment would have held a value of $864.80.

Luckily, the Westpac share price has since recovered. Right now, the bank stock is trading at $23.93. Thus, my figurative 46 shares would be worth $1,100.78.

That’s a respectable 11-month return, particularly when considering the ASX 200 has dumped 6% so far this year. And this is before considering dividends.

What about dividends?

Westpac has declared two dividends in 2022. The company’s interim dividend came in at 61 cents and it recently revealed a 64-cent final dividend.

That means my 46 shares would have garnered me $57.50 in passive income this year. Additionally, both offerings were fully franked, meaning they could bring about tax benefits.

What might the future hold for Westpac shares?

Of course, past performance doesn’t guarantee future returns. However, the future looks bright for Westpac shares if you ask these top brokers.

Morgans tips the stock to rise to $25.80, slapping it with an add rating. Meanwhile, Goldman Sachs has gone one further, dubbing it a conviction buy with a $27.60 price target.  

Both brokers also expect the bank to grow its dividends over the coming years.

Thus, if I were to have bought Westpac shares in early 2022, I’d likely be holding tight to my investment today.

The post If I’d invested $1,000 in Westpac shares at the start of 2022, here’s how much I’d have now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers say these ASX 200 dividend shares are buys
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• Why is the Westpac share price tumbling on Thursday?
• Goldman says these ASX 200 bank shares can deliver 12%+ returns for three years
• Why is Wilsons selling down its ASX 200 bank shares?

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 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.

from The Motley Fool Australia https://ift.tt/1q9ZVzh

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 clear that Amazon (NASDAQ: AMZN) wants to make its mark in the world of healthcare. The e-commerce giant opened a pharmacy service two years ago. And the company’s trying to get a foothold in telemedicine, though it hasn’t been easy. Amazon is shuttering its own service, Amazon Care, and is in the process of buying 1Life Healthcare (NASDAQ: ONEM), better known as One Medical — a provider of in-person and virtual care.

But Amazon isn’t stopping there. Its latest news is the creation of Amazon Clinic. This is an online service that lets you connect with clinicians for a variety of minor problems — and get answers and prescriptions.

Let’s take a closer look.

An El Dorado

Telemedicine represents a sort of El Dorado for players and potential players. The U.S. market is forecast to grow at a compound annual growth rate of more than 15% to nearly $25.9 billion by 2027, according to Polaris Market Research. Competition is high. And even a company with the resources of Amazon probably will have trouble beating a leader like Teladoc Health.

But Amazon’s latest move may offer it an advantage in a niche market. Teladoc and others sell complete healthcare plans to corporations or individuals. But Amazon Clinic isn’t a plan: It works like an online clinic — and anyone can use it.

If you’ve ever spent hours waiting at a walk-in clinic, you’ll probably understand the potential of Amazon’s latest venture in healthcare. Instead of going to an in-person clinic if you have a minor problem like sinusitis or pink eye, you fill out a questionnaire about your symptoms on Amazon. Then it connects you with a medical professional who will send you a treatment plan.

The service isn’t covered by insurance. The price varies depending on the state you live in and the clinic you choose — but as an example, a consultation for pink eye costs $30 to $35 at a Florida clinic on the platform.

Amazon Clinic is sure to be an easier alternative than waiting around at a crowded walk-in clinic for treatment. So the service does have potential to fill a need — and become successful.

Does this make Amazon a buy? First, let’s answer another question: Will Amazon Clinic make Amazon a major player in healthcare? That’s unlikely.

A niche market

Even though this looks like a positive step for Amazon, we’re talking about a niche. The revenue opportunity is limited. And the business won’t necessarily drive patients to Amazon Pharmacy — the prescriptions can be filled anywhere.

So, I wouldn’t buy Amazon shares for this move. I wouldn’t even buy shares for the company’s plan to grow in the healthcare market, because it’s still way too early to predict whether Amazon can become a leader.

The company has already stumbled twice. As I mentioned earlier, it’s closing Amazon Care as of the end of this year. And last year, it ended a healthcare joint venture with Berkshire Hathaway and JPMorgan Chase.

But note that I actually would buy shares of Amazon today. Rather than for its healthcare efforts, I’d buy them for its long-term growth potential in e-commerce and cloud computing.

Right now, higher inflation and general economic woes are weighing on those businesses. But these are temporary problems. Over the long term, Amazon has the market share and resources to thrive.

Today, the shares are trading at 1.9 times sales. That’s around the lowest level by this measure since about 2015.

Amazon’s ambitions in healthcare are something to watch. But the company’s two main businesses are what make the stock a steal at today’s levels. 

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

The post Does Amazon’s latest healthcare move make the stock a buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Amazon stock fell today
• Is Amazon’s AWS creating a once-in-a-decade buying opportunity for the stock?
• Amazon unveils new healthcare service: Is the stock a buy?
• Don’t be fooled. Amazon’s international business is more profitable than you think
• Amazon is set for major layoffs. Here’s what it means for the stock

Adria Cimino has positions in Amazon. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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, Berkshire Hathaway (B shares), JPMorgan Chase, and Teladoc Health. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon and Berkshire Hathaway (B 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.

from The Motley Fool Australia https://ift.tt/8xOZmw6

The Nanosonics Ltd (ASX: NAN) share price is having a day to forget on Monday.

In morning trade, the infection prevention company’s shares are down 12% to $4.03.

Why is the Nanosonics share price crashing?

Investors have been hitting the sell button on Monday after brokers responded negatively to the company’s recent trading update.

One of those brokers was Goldman Sachs, which has reiterated its sell rating and $3.50 price target on the company’s shares.

Goldman highlights that Nanosonics has started FY 2023 positively in respect to sales but elected not to comment on its operating costs or earnings. It said:

As expected, there was no update on Opex at the 4m mark, which remains a key question following the sharp increase in headcount and operational infrastructure required for the new US distribution model. As a reminder, FY23 opex guidance of +15-18% surprised consensus to the upside at the time (following the +28% growth in FY22, which had already included some pull-forward), and was a key driver of our -50-130bps EBIT margin revisions in August.

Overall, whilst capital revenue continues to run ahead of our expectations, we are less clear on the near/long-term consumables trajectory and the cost/margin profile, and we make no changes to our forecasts (FY23E revenue/EBIT $153m/$10m).

What else?

Over at Morgans, the broker has downgraded Nanosonics’ shares to a hold rating with a $4.91 price target.

Its analysts made the move on valuation grounds following a strong gain by the Nanosonics share price over the last five to six weeks. It explained:

We recently upgraded our forecasts reflecting favourable currency moves and sit slightly above NAN’s recent revenue guidance range of growth of 20% to 25%. Although the year has started well for NAN with revenue up 42%, we prefer to wait until the 1H23 results before adjusting any forecasts.

As a result our target price remains unchanged at A$4.91 and given the recent share price strength we move to a Hold rating (from Add).

Though, with the Nanosonics share price now trading sharply below this price target, it is possible that Morgans’ analysts may soon see value emerging again.

The post Why is the Nanosonics share price crashing 12% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• Why Arafura, Nanosonics, NextDC, and OZ Minerals shares are rising today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares

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 Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics 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/KqAL8Iw

You might have missed the headlines.

Actually, I’m kidding – there weren’t any.

If there were, they would have said:

“All Ords up 7% over the last month!”

Nope. Not a single headline.

Even though the market gained more than the average annual capital gain in a single month.

Why?

Well, news needs to be… newsy.

Recent. Immediate.

A month’s worth of gains just aren’t very interesting.

For the uninitiated, it just doesn’t feel very exciting, or even newsworthy.

More exciting are the big one-day falls that are happening right NOW.

But which is, truly, more important?

You know the answer.

And so it falls to me, here, to do the anti-headlines.

The stuff that isn’t ‘news’ (the clue is in the first three letters), but is far, far more important.

But I don’t just want to do the headlines.

I want to dig a bit deeper.

See, a month ago, when the ASX was 7% lower, no-one rang a bell.

No-one said ‘Ready, set… INVEST!’.

In fact, it was quite the opposite.

I was being told, via email, social media and more, that worse was coming.

“Just wait ‘til Tuesday!” was one reply.

Turned out, the market rose on that day.

Now, I’m not saying I knew the market would rise 7%.

Far from it.

It could have well fallen 7% over the last month, instead.

No-one could have known.

Which is precisely why making – and listening to – predictions is dumb.

Especially, as the Danes say, about the future.

Are you still waiting for the coast to be clear?

You just missed out on a 7% gain.

Ah, but couldn’t the market fall again? And by more?

Yep.

Absolutely could.

I have no idea.

But remember, it goes up, over time.

Mathematically, you’ve been better off being invested, than not, over the past, oh, 120 years or so, as long as you have a long-term investment horizon.

And if you don’t?

Well, trying to pick short term share price movements is akin to playing metaphorical chicken on the investment highway.

And from here?

I don’t know what happens today.

Or this week, this month or for the rest of this year.

I don’t know what’ll happen next year, either.

No-one does, despite what some people will pretend.

As I’ve said before, those people who say they know are lying to you, or themselves, or both.

But here’s my stake in the ground, when it comes to my own portfolio.

I don’t think we’ve seen the peak for democratic capitalism.

If I’m right, that means more value will be created in the future, by people finding new ways to solve new and old problems.

And if that’s right, I think it’s also very probable that company profits rise, and with them, share prices.

Which is why I’m continuing to invest, for the long term, and I reckon you should, too.

Fool on!

The post Do you know what happened on the ASX recently? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Nanosonics share price crashing 12% today?
• Zip share price charges higher as BNPL regulation looms large
• What does this top broker have against ANZ shares?
• Inflation top of mind and confidence in focus. Scott Phillips on Nine’s Late News
• Core Lithium share price leaps higher for first time in 5 trading sessions

Motley Fool contributor Scott Phillips 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/Yk8BmWN

The Zip Co Ltd (ASX: ZIP) share price is marching higher in morning trade today, up 1.9% at the time of writing, having earlier posted gains of 4.6%.

Shares in the buy now, pay later (BNPL) stock closed on Friday trading for 71 cents and are currently changing hands for 79 cents apiece.

And there’s plenty of interest. More than $1.9 million worth of trades has been executed within the first hour of the opening bell, with more enthusiastic buyers than sellers pushing the Zip share price higher.

All this comes as news hits the wires that federal regulation is looming for the Aussie BNPL sector.

Why are regulators eyeing the BNPL sector?

The Zip share price has shrugged off potential concerns over pending new regulations intended to protect Australian consumers.

BNPL providers are bound by certain regulations. But they don’t face the same legal guidelines as credit card companies.

And with BNPL companies like Zip servicing a largely younger customer base, regulators are concerned that some of their clients could get into serious financial difficulties using their interest-free, pay-by-instalment plans.

According to Finance Minister Katy Gallagher (courtesy of The Australian Financial Review):

People are starting to see it as a credit card. Whether or not it should be included under the credit card regulations, so under the Credit Code, to give people some protections and also put some responsibility back on the providers, [are] about ensuring that people are able to afford to get into the contracts that they’re entering into.

Gallagher indicated that more BNPL customers are already having trouble making their repayments.

“Certainly, if you talk to consumer representatives in the financial sector, they’ll say that they’re seeing more and more people who are getting into strife with buy-now-pay-later,” she said.

Judging by the reaction of the Zip share price this morning, investors may believe that some additional regulatory scrutiny could be healthy for the BNPL stock moving forward.

“It’s responsible to have a look at how it is regulated and how people are using it, what some of the problems are and how to provide that protection to people,” Gallagher added.

Zip share price snapshot

Down 83% in 2022, the Zip share price has enjoyed a strong rebound over the past month, gaining 27% since 21 October.

For some context, the All Ordinaries Index (ASX: XAO) is down 6% for the calendar year and up 7% over the last month.

The post Zip share price charges higher as BNPL regulation looms large appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Boom! Why has the Zip share price soared 31% in a week?
• 3 ASX All Ordinaries shares having a cracker session on Thursday
• Guess which ASX All Ords share is leaping 22% on ‘significant progress towards profitability’
• Up 18% today: Can the Zip share price really fight City Hall?
• Why Accent, Block, Nufarm, and Zip shares are racing higher

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 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.

from The Motley Fool Australia https://ift.tt/qbwvDSY

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares have dropped 4.5% since 1 November 2022. That compares to a 3% rise for the S&P/ASX 200 Index (ASX: XJO), so ANZ has underperformed the market by around 7.5%.

A lot of attention is on the large ASX 200 bank shares of ANZ, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) because of rising interest rates.

However, higher interest rates are not just a free lunch for the big banks. It’s also increasing their costs because they have to pay more to savers, and wholesale costs have also increased.

Broker cautious on ANZ and other bank shares

Last week, my colleague Bernd Struben covered reporting by The Australian that the broker Wilsons was lightening its holdings of three of the major ASX 200 bank shares – ANZ, NAB and Westpac.

The broker said:

After the banks’ reporting season over the past few weeks, we have become increasingly cautious on the banks.

The reason for this pessimism is that Wilsons think that the banks may have reached a peak in the net interest margin (NIM).

A bank’s NIM measures how profitable its lending is. It compares the overall interest rate of its lending versus the cost of funding that lending.

For example, a $100,000 mortgage with a loan rate of 4.5% may be funded by a $100,000 term deposit costing the bank a rate of 3%. That would be a NIM of 1.5% for the bank.

NIMs have been rising recently as banks have quickly passed on the Reserve Bank of Australia (RBA) increases but have been slower to pass on the rate rises for savers.

According to my colleague Struben’s reporting:

The analysts believe the banks have likely reached a peak in net interest margins. They also pointed to a slowdown in the Aussie economy and housing credit amid rapidly rising interest rates. All up they said this means the earnings estimates for the banks are “too optimistic”.

The Wilsons Focus Portfolio has reduced its exposure to ASX 200 bank shares to 16.5%.

What’s the latest investors have heard?

A month ago, the bank reported its FY22 result, which showed that its total statutory net profit after tax (NPAT) had increased by 16% to $7.1 billion while continuing operations cash profit was up 5% to $6.5 billion.

However, profit before credit impairments, tax and large items was down 3% to $9.1 billion.

Profit movements can have a very big impact on the ANZ share price.

The bank decided to increase its annual dividend per share by 3% to $1.46.

But, ANZ did reveal that thanks to the higher interest rates, it’s expected to earn approximately $1.5 billion more net interest income in FY23 and $3.2 billion more in FY25.

Based on ANZ research forecasts, the bank thinks the RBA cash rate will be 3.35% in March 2023 and stay at 3.6% between June 2023 to June 2024.

Time will tell how much higher interest rates can help ANZ’s bottom line, how it affects current borrowers and if it helps the ANZ share price over time.

The post What does this top broker have against ANZ shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Time to buy? Which ASX 200 shares are trading on single-digit P/E ratios?
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• Why is Wilsons selling down its ASX 200 bank shares?
• Could this top ASX 100 share be the best of an ‘extremely cheap’ sector?
• Are ANZ shares really on track to offer a 7% dividend yield?

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 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.

from The Motley Fool Australia https://ift.tt/qpKQsGR