Day: December 3, 2022

Can the Pilbara Minerals share price regain its lustre in December?

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price risesFemale miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises

The Pilbara Minerals Ltd (ASX: PLS) share price had a tough run in November, but could better days be ahead?

Pilbara shares fell 8.45% in November and are currently fetching $4.86 as of Friday’s close, up 2.10%.

Let’s take a look at the outlook for the Pilbara Minerals share price.

What’s ahead?

Pilbara shares may have struggled in November, but they have lifted year to date. Pilbara shares have soared 52% since the start of the year.

If an investor had bought $1,000 worth of Pilbara shares for $3.20 after market close on 31 December, this investment would now be worth $1,506.96.

Pilbara Minerals advised this year that it is planning to pay its first ever dividend in the 2023 financial year. Management is planning to pay 20% to 30% of its free cash flow to shareholders.

Pilbara shares finished the month on a high, leaping 5% between market close on 28 and 30 November. So far in December, Pilbara Minerals shares have climbed a further 3.29%.

What do the experts say?

UBS has a sell rating on Pilbara shares, as my Foolish colleague Tristan reported recently. The broker has placed a $3.05 price target on the company’s share price.

Meanwhile, Jarden also has a sell rating on the Pilbara share price, with a 12-month price target of $3.65. This implies a downside of 24% on the current share price.

On the flip side, Macquarie placed an outperform rating on the Pilbara share price during the month with a $7.70 price target. This implies an upside of 59% based on the current share price.

What’s the latest?

Pilbara is exploring lithium at the Pilgangoora Project, 120km from Port Hedland in Western Australia.

Pilbara reported results from a Battery Materials Exchange (BMX) auction in mid-November. The company advised it intended to accept the highest bid of US$7,805 per dry metric tonne.

On 28 November, Pilbara announced it had entered a joint venture agreement with Calix for a mid-stream demonstration plant. Commenting on this project, managing director and CEO Dale Henderson said:

The mid-stream project has the potential to be a game changer for our industry.

Pilbara share price snapshot

The Pilbara share 91% in the last year, while it has climbed 1.67% in the last week.

For perspective, the ASX 200 has returned 1.64% in the past year.

Pilbara has a market capitalisation of about $14.55 billion based on the current share price.

The post Can the Pilbara Minerals share price regain its lustre in December? 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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3 best-performing ASX 200 energy shares in November

three men stand on a winner's podium with medals around their necks with their hands raised in triumph.three men stand on a winner's podium with medals around their necks with their hands raised in triumph.

ASX 200 energy shares have had a rocking year but for a terrible reason — that being the war in Ukraine. The conflict has disrupted global supply chains given Russia is a pretty big energy supplier, especially to Europe.

The S&P/ASX 200 Energy Index (ASX: XEJ) has soared this year, up around 36% in 2022 so far.

This compares to an almost 4% drop in the S&P/ASX 200 Index (ASX: XJO), which has occurred due to rising inflation and interest rates, as well as fears of a United States recession.

Here we look at the top three ASX 200 energy shares in November based on share price gains over the month.

No surprise to see coal miner Whitehaven at the top of the list. It’s had an unbelievable year with the share price up more than 250% so far, largely due to skyrocketing commodity prices.

The following data is from S&P Global Market Intelligence, canvassing ASX 200 energy shares with a minimum market capitalisation of $100 million.

Whitehaven Coal Ltd (ASX: WHC)

The top-performing ASX 200 energy share from the close on November 1 to the close on November 30 was Whitehaven, with a 9.73% share price gain.

This was largely due to thermal coal prices remaining near all-time highs over the month. Plus, it remains a favourite ASX share pick among brokers, with plenty of positive commentaries keeping investors excited.

The only price-sensitive news during November was a downgrade in FY23 production guidance due to bad weather caused by La Nina. As my Fool colleague Matthew reported, flooding has disrupted operations at some mines.

The Whitehaven share price closed 1.52% lower on Friday at $9.74.

Beach Energy Ltd (ASX: BPT)

Oil and gas producer Beach Energy was November’s next best-performing ASX 200 energy share with a gain of 8.87% in value.

The company is currently embroiled in a takeover battle for Warrego Energy Ltd (ASX: WGO). Beach and Warrego announced a deal on 14 November, whereby Beach would acquire all Warrego shares for 20 cents apiece. This trumped a scheme of arrangement proposal from Strike Energy Ltd (ASX: STX) a few days before.

The saga is continuing. Warrego received a counter offer from Gina Rinehart’s Hancock Energy Pty Ltd yesterday at 23 cents per share. Beach Energy bettered their offer at 25 cents on Friday. Warrego is considering its options.

Also supporting the Beach Energy share price in November was the commencement of production cuts by the Organization of Petroleum Exporting Countries (OPEC), as announced in October.

At Friday’s close, the Beach Energy share price was down 2.44% to $1.80.

Karoon Energy Ltd (ASX: KAR)

The third best-performing ASX 200 energy share in November was Karoon Energy, up 5.94%.

The oil and gas producer had a nice start to the month with Morgans giving a presentation on the company.

The Karoon Energy share price was volatile in November, moving rapidly between $2.20 and almost $2.40 several times over the four weeks. The company delivered an update on its Patola project on 21 November and held its annual general meeting (AGM) on 24 November.

The Karoon Energy share price closed on Friday at $2.32, down 2.52%.

The post 3 best-performing ASX 200 energy shares in November appeared first on The Motley Fool Australia.

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

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Why did the BrainChip share price smash the ASX 200 in November?

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

After a shocking start to the year, the BrainChip Holdings Ltd (ASX: BRN) share price outperformed the S&P/ASX 200 Index (ASX: XJO) in November.

The stock rose from 64.5 cents at the final close of October to finish November trading for 73 cents. That marks a 13.18% gain. In the meantime, the tech stock saw a 52-week low of 59 cents and a high of 78 cents.

For comparison, the ASX 200 lifted just 6.13% last month – meaning the BrainChip share price produced double the broader market’s gains.

Indeed, $1,000 invested in BrainChip shares at the end of October would have been worth around $1,130 at Wednesday’s close. That’s not too shabby for a single-month return.

So, what might have gone right for the artificial intelligence-focused tech company last month? Let’s take a look.

What drove the BrainChip share price higher last month?

Interestingly, there was no price-sensitive news from BrainChip last month.

Indeed, the last time the market heard a price-sensitive update from the company was in late October on the release of its disastrous quarterly activities report. That saw the stock plummet 21%.

The company also announced it has welcomed former Amazon.com Inc (NASDAQ: AMZN) leader and Arm executive Nandan Nayampally as its new chief marketing officer.

Meanwhile, investor sentiment for tech shares appeared to improve over the course of last month.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) lifted 2.87% in November while the S&P/ASX All Technology Index (ASX: XTX) rose 3.08%.

That may have had something to do with hints inflation could be softening, potentially leading central banks globally to ease up on interest rate hikes.

Of course, higher rates generally spell bad news for non-profitable shares like BrainChip and many of its technology-focused peers. That’s because higher rates increase the cost of debt and companies operating in the red often rely on debt to fund growth.

Sadly, the BrainChip share price’s recent rally hasn’t been enough to boost it into the longer-term green.

The stock is still 7% lower than it was at the start of 2022. Though, it has gained 16% since this time last year.

The post Why did the BrainChip share price smash the ASX 200 in November? 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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Morgans names 2 of the best ASX 200 shares to buy in December

Two brokers pointing and analysing a share price.

Two brokers pointing and analysing a share price.

The team at Morgans has been busy running the rule over a number of S&P/ASX 200 Index (ASX: XJO) shares again this month.

Among its best ideas for December are the two ASX 200 shares listed below. Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

Morgans has this gaming technology company on its best ideas list again this month.

Its analysts highlight that the company is well-placed for growth thanks to its ability to invest in design and development and its expansion in real money gaming (RMG).

It commented:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Morgans has an add rating and $43.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

A new addition to the best ideas list this month is Xero. The broker believes the cloud accounting platform provider’s shares are trading at a very attractive level. In fact, they are trading at a level that values the company less than the lifetime subscription value of its subscribers. It commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

Morgans currently has an add rating and $77.00 price target on Xero’s shares.

The post Morgans names 2 of the best ASX 200 shares to buy in December appeared first on The Motley Fool Australia.

FREE Guide for New Investors

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

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And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

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*Returns as of November 7 2022

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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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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