Day: 7 December 2022

An S&P/ASX 200 Index (ASX: XJO) stock capable of providing $800 of passive dividend income every month with just 1,000 stocks? Sign me up!

It might sound like a pipedream, but it’s on offer right now on the Aussie bourse.

The company behind the whopping figure is, of course, Rio Tinto Limited (ASX: RIO). The ASX 200 iron ore share has paid out nearly $9.61 per share in regular dividends – not counting special offerings – in 2022.

That figure also includes a whopping 52% cut to its interim dividend. But Rio Tinto’s payouts might be too good to be true.

All dividends offered by Rio Tinto in 2022

ASX 200 iron ore giant Rio Tinto has paid out $9.61 per share in regular dividends to Aussie investors this year despite tumbling demand for the steel-making commodity.

That means someone holding 1,000 shares in the miner would have received $9,610 in regular passive income – or $800.83 per month. And that’s before considering special dividends.

Though, past performance is not indicative of future performance, as I will get to in a moment.

Here’s a breakdown of all the offerings put on the table by Rio Tinto over the last 12 months:

Rio Tinto dividend value	Type	Month payable
$5.7704	Final	April 2022
$0.858	Special	April 2022
$3.837	Interim	September 2022

Building $800 of monthly passive income from the ASX 200 stock

So, how much would an investor have to fork out to buy 1,000 Rio Tinto shares and take advantage of its current 8.23% trailing dividend yield?

Well, with each share in the ASX 200 stock going for $116.20 at the time of writing, such a parcel would set a buyer back $116,200. If you’re anything like me, that figure is far from pocket change.

So, how would I work my way up to holding 1,000 securities? If that were my aim, I would invest a set amount each month and take advantage of Rio Tinto’s dividend reinvestment plan (DRP) to compound my holding.

For instance, if I had around $500 per month to invest in Rio Tinto shares, I could buy four each month and still have change (or extra to cover brokerage fees). That’s assuming the company’s share price stays exactly where it is right now.

If the Rio Tinto dividend yield also stayed put, I could bank 1,000 shares in around 12 years using the power of compounding.

Of course, in the real world, I would work to build a more diverse portfolio to better protect my investments.

Too good to be true?

However, this is where I might disappoint some readers.

As an ASX 200 materials share, Rio Tinto’s earnings, and therefore its dividends, are nearly entirely reliant on commodity prices, and that of iron ore in particular.

Unfortunately, some experts are bearish on the future of certain companies involved in the steelmaking ingredient.

Goldman Sachs, for one, is tipping Rio Tinto’s earnings to slump in coming years, as my Fool colleague James reports.

The broker expects the company to offer US$4.80 per share in dividends this financial year – $7.16 Australian at the current exchange rate.

That’s forecast to fall to $6.24 in financial year 2024 and to $6.18 in financial year 2025.

Still, if the broker’s forecasts prove accurate, 1,000 shares in the ASX 200 stock could provide more than $500 per month in passive income in a few years’ time.

The post I’d buy 1,000 shares of this ASX 200 stock for $800 in monthly passive income appeared first on The Motley Fool Australia.

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More reading

• Which ASX mining shares have had their dividend yields slashed the most in 2022?
• ASX 200 tech shares deep in the red today. Here’s why
• ASX 200 correction: A once-in-a-lifetime chance for supercharged passive income!
• Why is the CSL share price in the spotlight on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday

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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Not too long ago, ASX mining shares were heralded as dividend royalty on the Aussie share market. However, times have changed since 2020 and 2021. Commodity prices are not as shiny as they once were, putting pressure on those supersized payouts.

Instead, the baton has been passed on to oil and gas companies this year, as the world became desperate for energy in the face of crimped supply.

Due to the essential nature of energy, prices for these commodities ballooned throughout the year — with crude oil reaching US$130 per barrel after starting the year below US$50. ASX energy companies able to capitalise on the demand have witnessed eye-popping changes to their bottom lines and payouts.

Meanwhile, investors in ASX mining shares have watched on as their dividend yields have been — in many cases — squashed.

It might be painful, but let’s find out which mining companies have been dealt the biggest blow to their passive income potential.

ASX mining shares with detonated dividend yields

Before we unearth the harrowing tales of dividend disappearance, it should be said that changes in the dividend yield are a function of two variables. Either the dividend per share (DPS) paid by the company has altered, or the share price may have moved — or some combination of the two.

The worst outcome as an income investor is for your juicy yield to go from hero to zero. According to data from S&P Global Market Intelligence, five ASX mining shares have succumbed to this grim fate.

Comparing the dividend yield as of 31 December 2021 to today, the following companies have experienced a 100% reduction in their yield.

Company	Dividend yield on 31 December 2021	YTD share price performance
SSR Mining Inc CDI (ASX: SSR)	1.1%	-6.7%
Sandfire Resources Ltd (ASX: SFR)	5.2%	-19.6%
Perenti Ltd (ASX: PRN)	4.3%	19.4%
Mount Gibson Iron Limited (ASX: MGX)	4.7%	14.4%
St Barbara Ltd (ASX: SBM)	2.7%	-55.7%

While the above five ASX mining shares take the crown for the biggest reduction in dividend yield, there are several other large names that have experienced substantial yield suppression in 2022.

Which others have been hurt?

For example, Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) received a respective 55% and 29% yield slashing. Both companies feeling the effects of an iron ore price now half its 2021 highs.

Likewise, Newcrest Mining Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) have taken 37% and 29% hits to their dividend yields.

According to the latest Janus Henderson Global Dividend Index report, dividends from basic materials companies globally fell 21.8% year-on-year in the third quarter.

The post Which ASX mining shares have had their dividend yields slashed the most in 2022? appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price jumps amid Twiggy’s $4b renewables takeover
• 5 things to watch on the ASX 200 on Wednesday
• What’s the outlook for the iron ore price in 2023?
• Why Beach, Block, Magellan, and St Barbara shares are dropping
• Fortescue share price dips despite green hydrogen milestone ‘worth celebrating’

Motley Fool contributor Mitchell Lawler 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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The S&P/ASX 200 Index (ASX: XJO) is out of form on Wednesday. In afternoon trade, the benchmark index is down 0.6% to 7,247.8 points.

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

Coronado Global Resources Inc (ASX: CRN)

The Coronado share price is up 4.5% to $2.09. Investors continue to buy coal miners due to the high prices that the black gold is commanding right now. In addition, it is worth noting that earlier this week, Macquarie slapped an outperform rating and $3.10 price target on its shares. This implies potential upside of almost 50%.

GQG Partners Inc (ASX: GQG)

The GQG share price is up over 1% to $1.45. This morning this fund manager released its monthly funds under management update. GQG had a strong month and saw its funds under management rise 8.2% to US$90.7 billion from US$83.8 billion. However, it’s unclear how much of this increase was driven by financial markets having a stellar month.

Patriot Battery Metals Inc (ASX: PMT)

The Patriot Battery Metals share price is up 95% from its listing price to $1.17. This North America-based lithium developer listed on the Australian share market today following an IPO. Patriot’s flagship asset is the 100% owned Corvette Property, located near the Trans-Taiga Road and powerline infrastructural corridor in the James Bay Region of Québec.

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 7% to 36.5 cents. This morning this energy company announced that it has increased its stake in Warrego Energy Ltd (ASX: WGO) to 19.9%. Beach Energy Ltd (ASX: BPT) and Gina Rinehart’s Hancock Energy are currently in a bidding war for the energy explorer.

The post Why Coronado, GQG, Patriot Battery Metals, and Strike shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping
• Why is Clough’s collapse wreaking havoc on the Beach Energy share price?
• Strike Energy share price soars following Warrego buy up
• 5 things to watch on the ASX 200 on Wednesday
• Here’s how I’d invest $5,000 in ASX dividend shares to earn a second income

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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What makes a stock a ‘Warren Buffett-style’ stock? That’s a good question.

Warren Buffett is without a doubt one of the greatest investors of all time — and a living legend. Over the past 60 or so years, he has turned Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) from a failing textiles mill into the US$678 billion conglomerate it is today, achieving a compound annual return of around 20% per annum on average along the way.

What’s in a MOAT?

So what kind of companies does Buffett typically invest in? Well, they usually have one thing in common: a moat. A moat is an investing concept coined by Buffett himself. Here’s how he described the concept in his 2007 annual letter to shareholders of Berkshire Hathaway:

It’s better to have a part interest in the Hope Diamond than to own all of a rhinestone. A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns.

Therefore a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful world-wide brand (Coca-Cola, Gillette, American Express) is essential for sustained success. Business history is filled with ‘roman candles’, companies whose moats proved illusory and were soon crossed.

Looking at Berkshire Hathaway’s current holdings, we see plenty of moats. Companies like Coca-Cola and American Express, long-term Berkshire holdings, possess some of the most powerful brands in the world. Amazon.com is one of Berkshire’s more recent holdings. But there’s no doubt Amazon has one of the globe’s best pricing moats.

And Apple, Berkshire’s largest holding, is one of the most dominant companies on the planet with its brand, management team, and scale.

Berkshire doesn’t own any ASX shares at present, so it’s hard to know what kind of Australian companies Buffett might go for today. But there is one ASX investment that hones in on Buffett’s concept of a moat. And it’s an exchange-traded fund (ETF) that I personally own.

The VanEck Vectors Wide Moat ETF (ASX: MOAT) is a fund that focuses on only holding US shares that display characteristics of Buffett’s moat concept. These are selected by Morningstar, which looks for companies with “sustainable competitive advantages”.

This ETF’s current portfolio includes names like Microsoft, Alphabet, Kellogg, and Disney. Berkshire’s holding Amazon is also present, as are Berkshire Hathaway shares themselves.

Why I will never sell this Buffett-style ASX ETF

So we know that this ETF attempts to invest like Buffett does by looking for companies with moats. But does it have the numbers to back it up?

Well, this ETF has returned an average of 14.72% per annum over the past five years. That beats its S&P 500 benchmark, which has returned an average of 13.19% per annum over the same period.

Since the fund’s inception in mid-2015, the VanEck Wide Moat ETF has averaged an annual return of 14.88%, again beating the S&P 500 which averaged 12.78%.

Here’s a look at this ETF’s unit price to illustrate:

So we have a Buffett-style investment that has consistently outperformed the market. That’s enough to earn this ETF a place in my own portfolio. And enough for me to never want to sell this ASX investment.

The post One Warren Buffett-style stock I’m ‘never’ selling appeared first on The Motley Fool Australia.

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More reading

• I’d aim for a million by buying just a few ASX shares
• Will the Nasdaq or S&P 500 have a better 2023?
• What Warren Buffett can teach us about handling bear markets
• Could these be the best ASX ETFs to buy now for 2023?
• 74% of Warren Buffet’s portfolio is in these 5 stocks. Could this help guide which ASX shares to buy?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, American Express, Apple, Berkshire Hathaway, Coca-Cola, Microsoft, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another disappointing decline. At the time of writing, the benchmark index is down 0.75% to 7,236.2 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 8% to $1.67. This follows a series of negative developments for this energy producer all hitting at once. These include oil prices sinking overnight, Morgans downgrading its shares to a hold rating, and Beach being exposed to the Clough collapse. Clough was working on the Waitsia Stage 2 gas plant.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is down 12% to $1.06. This has been driven by the gold miner completing its institutional placement this morning. According to the release, Bellevue Gold raised $60 million at $1.05 per new share. This represents a discount of 13.2% to its last close price. Proceeds will be used to accelerate underground development and exploration at the Bellevue Gold Project in Western Australia.

Block Inc (ASX: SQ2)

The Block share price is down almost 3% to $92.26. This follows a poor night of trade for the payments company’s NYSE listed shares overnight. The Block share price came under pressure on Wall Street following a tech selloff amid concerns over rising interest rates.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price has sunk almost 9% to 62 cents. Once again, weakness in the tech sector is partly to blame for this. In addition, the loss-making semiconductor company has been targeted by short sellers recently. So much so, at the last count, it had a rather devilish 6.66% of its shares held short. Short sellers appear to believe Brainchip doesn’t justify a $1.1 billion market capitalisation given its pitiful revenue generation.

The post Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is Clough’s collapse wreaking havoc on the Beach Energy share price?
• ASX 200 tech shares deep in the red today. Here’s why
• Strike Energy share price soars following Warrego buy up
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Bellevue Gold share price on ice today?

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 Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Is the SPDR S&P/ASX 200 Fund (ASX: STW) an ASX exchange-traded fund (ETF)? That’s a good question.

The SPDR S&P/ASX 200 Fund certainly doesn’t have ‘ETF’ in its name. Most ETFs on the ASX, such as the Vanguard Australian Shares Index ETF (ASX: VAS), do.

But that doesn’t mean much, to be frank. So for a fund to be an ETF, it needs to be two things. Firstly, a fund (the F in ETF). This, the SPDR S&P/ASX 200 Fund is, as its name implies. Secondly, an ETF needs to be ‘exchange-traded’ (the ET in ETF).

Since the SPDR S&P/ASX 200 Fund can indeed be traded on the ASX under the ticker code ‘STW’, and is a fund, we can conclude that it is indeed an ETF.

Not just any ETF though. This fund has the unique distinction of being the oldest ASX-tracking index fund on the share market. Yes, it has an inception date of 27 August 2001.   

By contrast, the Vanguard Australian Shares ETF, which is by far the most popular ETF on the market, only opened its doors in May 2009. Another popular option is the iShares Core S&P/ASX 200 ETF (ASX: IOZ) which began in December 2010.   

So the SPDR ASX 200 Fund certainly has a lot of runs on the board.

How is the SPDR S&P/ASX 200 Fund different to other ASX ETFs?

But this fund is very similar to other ASX index funds. It closely tracks the S&P/ASX 200 Index (ASX: XJO), which in itself represents the largest 200 shares on the ASX by market capitalisation. The iShares Core ASX 200 ETF does exactly the same thing.

You’ll find BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) amongst both ETFs’ top holdings. As well as other major ASX 200 shares like the other ASX banks, Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS) and Fortescue Metals Group Limited (ASX: FMG).

The Vanguard Australian Shares ETF is slightly different, tracking the largest 300 ASX shares, rather than the largest 200.

The only real difference between the iShares ASX 200 ETF and the SPDR ASX 200 Fund is the fees they charge investors. Here, the iShares ETF has a slight advantage, charging a management fee of 0.09% per annum. That’s $9 a year for every $10,000 invested.

By contrast, the SPDR S&P/ASX 200 Fund charges 0.13% per annum or $13 a year for every $10,000 invested. Vanguard’s Australian Shares ETF charges 0.1% per annum.

So the SPDR S&P/ASX 200 Fund is indeed an ASX ETF, despite the absence of ‘ETF’ in its name. But, despite its pedigree as the first ASX ETF, it is just one of many on the ASX today.

The post Is the SPDR S&P/ASX 200 Fund (STW) an ETF? appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price jumps amid Twiggy’s $4b renewables takeover
• Why is the CSL share price in the spotlight on Wednesday?
• If you bought 100 shares of CSL 10 years ago, this is how much you would have today
• Bought $1,000 of CBA shares 10 years ago? Here’s how much dividend income you’ve received
• To retire early, I’d invest $100 each week in ASX 200 shares

Motley Fool contributor Sebastian Bowen has positions in CSL, Telstra Group, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Novonix Ltd (ASX: NVX) share price is trading 2.91% down at $2.00 during Wednesday afternoon trading.

This week, the lithium battery materials company has lost 13.5% of its value on the ASX.

That’s even more concerning when you consider that over the entire month of November, Novonix shares fell 16%, which made them among the worst-performing ASX 200 shares of the month.

With no news from the company so far in December, this week’s losses are likely a hangover from November. The likely reason for the Novonix share price tumble last month is two-fold.

Firstly, there was probably some profit-taking after the Novonix share price gained 50% in October.

The gains followed news that the United States Department of Energy had awarded Novonix a US$150 million grant for the expansion of its anode materials plant in Tennessee.

The second is China’s COVID-zero policy and lockdowns. This has wreaked global economic havoc and impacted many businesses associated with the global electric vehicle (EV) market.

Why is the Novonix share price so volatile?

As my colleague Brooke recently reported, investors have been turning their backs on unprofitable companies during these tough economic times. They’re not so keen on ASX tech stocks either.

This is because inflation is going up, which means younger companies not yet making a profit are facing major cost headwinds.

On top of that, interest rates are going up. Younger companies typically have more debt to finance their growth and development, so investors are wary of them right now, too.

That’s why the S&P/ASX 200 Information Technology Index (ASX: XIJ) has lost more than a third of its value in the year to date. The tech sector in Australia is in its infancy compared to the US.

But there’s more to Novonix’s volatility than macro issues.

A warning bell for Novonix shareholders was rung in September when the company’s auditors, PriceWaterhouseCoopers (PWC) said “a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern”. Eek.

In its 2022 annual report, Novonix reported a loss after tax of $71 million and about $40 million in net cash outflows.

PWC also noted that Novonix “remains dependent upon raising additional funding to finance its ongoing expansionary activities”.

Yeah, this makes Novonix shares not so appealing for the moment, especially for risk-averse investors.

In addition, Novonix is a small-cap share. It goes without saying that smaller companies typically experience more volatility than established blue-chip shares because they simply don’t have the same level of investor support.

What’s the latest at Novonix?

Novonix is a battery materials and technology company. It’s figured out a way to produce synthetic graphite anode material for lithium-ion batteries. It says this is safer and more environmentally friendly than naturally occurring graphite.

Novonix says demand for its anode material is increasing in the US. This is largely due to the growing local EV market and the US’s desire not to be so reliant on Chinese graphite producers.

Novonix hopes to become a major alternative local supplier. It has multiple facilities in Chattanooga, Tennessee and is trying to scale up production as fast as possible.

The US grant, announced in October, will be used to support this goal.

Novonix aims to increase production capacity to 10,000 metric tonnes of synthetic graphite per annum (tpa) by 2023. It is targeting 40,000 tpa by 2025 and 150,000 tpa by 2030.

Novonix expects to spend about US$1 billion on its expansion between 2023 and 2025.

The post The Novonix share price has crashed another 14% already this week. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Why did the Novonix share price crash 16% in November?
• These were the worst performing ASX 200 shares in November
• Here are the top 10 ASX 200 shares today
• Why has the Novonix share price crumbled 19% in 2 weeks?
• Will ASX 200 tech company Novonix deliver a profit in 2023?

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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The collapse of century-old builder Clough has hit headlines this week, and the news appears to be weighing on the Beach Energy Ltd (ASX: BPT) share price.

The oil and gas stock plummeted 4% yesterday and it’s down another 7.28% today, trading at $1.68 at the time of writing.

For comparison, the S&P/ASX 200 Index (ASX: XJO) slumped 0.5% yesterday and is down 0.77% right now.

But why is the Beach Energy share price among the dominos hit by the Perth-based builder’s collapse? Let’s take a look.

Clough’s collapse dints Beach Energy share price

It’s been a rough few years for the Aussie building industry. Much of it was shut down during the worst of the pandemic, only to be hit with supply chain issues and supply shortages on a return to ‘normal’.

Clough was just the latest building company to announce it’s entering voluntary administration on Monday. Its collapse came amid the termination of Webuild’s agreement to acquire the embattled company.

It has appointed Deloitte as administrator, responsible for its planned restructure and recapitalisation.

But where does the tumbling Beach Energy share price come into play? Well, Clough was contracted for engineering and construction work at the ASX 200 energy company’s Waitsia Stage 2 project.

Commenting on Clough’s voluntary administration yesterday, Beach Energy said:

Beach and [Mitsui], its joint venture partner and Waitsia operator, will work closely with the administrator, contractors, and stakeholders to ensure continued progress of the … Waitsia Stage 2 gas plant.

The remit of the project is to further develop the Waitsia gas field in the Perth Basin. It will create more wells and a new production facility capable of producing 250 terajoules each day.

Mitsui said it’s still too early to determine the impact the company’s collapse could have on the project, Reuters reports.

Such uncertainty has likely been weighing on the Beach Energy share price this week.

The stock might also be feeling the impact of earlier news from takeover target Warrego Energy Ltd (ASX: WGO). Warrego found a competing offer from Gina Rinehart’s Hancock Energy superior on Monday.

Beach Energy has five business days to put forward a higher bid. If it doesn’t, Warrego’s board will likely recommend Hancock’s offer to shareholders.

The post Why is Clough’s collapse wreaking havoc on the Beach Energy share price? appeared first on The Motley Fool Australia.

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More reading

• Strike Energy share price soars following Warrego buy up
• 5 things to watch on the ASX 200 on Wednesday
• Here’s why the Beach Energy share price is diving 6% on Tuesday
• Why Beach, Block, Magellan, and St Barbara shares are dropping
• 5 things to watch on the ASX 200 on Tuesday

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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Investors love to see directors, chairs, and even CEOs of ASX companies picking up shares of the business they are running. It’s not hard to see why.

Management buying shares of their own companies gives investors confidence that the highly-paid people running the show see value in shareholders’ futures.

It also helps incentivise management, ensuring that their financial fortunes are more closely tied to those of their shareholders.

So that might be why the Kogan.com Ltd (ASX: KGN) share price is holding up better than the broader market today. At the time of writing, Kogan shares are up by 0.31% to $3.28 each.

That looks pretty good against the All Ordinaries Index (ASX: XAO). It is currently down by a nasty 0.81%.

Director triples down on Kogan shares

Yes, this week we got the news that Kogan director Janine Allis has not doubled, but tripled her holdings in Kogan. An ASX filing shows that Allis boosted her holdings by 10,000 shares on 5 December.

She paid an average of $3.33 per share. That would equate to an investment of $33,300.

Allis previously owned 4,761 shares of Kogan, so this new tranche of 10,000 shares more than triples her stake in the ASX retail share.

Janine Allis has been an independent, non-executive director at Kogan since April 2021. Previously, she founded the popular juice chain Boost Juice.

So no doubt Kogan investors will be buoyed upon hearing about this large purchase of shares. It’s likely to be a much-needed confidence boost, given the company’s share price has lost a painful 62.5% of its value over 2022 alone.

At the current Kogan share price, the company has a market capitalisation of $351 million.

The post This Kogan director (and Boost founder) just tripled her holding of Kogan shares appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Why Kogan, Nick Scali, PointsBet, and Sayona Mining shares are pushing higher
• Kogan share price jumps 13% as boss touts ‘return to historic growth trajectory’
• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market

Motley Fool contributor Sebastian Bowen has positions in Kogan.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com. The Motley Fool Australia has positions in and has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.

After marching higher on Monday and Tuesday the S&P/ASX 200 Index (ASX: XJO) energy share is down 1.85% at the time of writing.

This comes amid a big fall in oil prices and despite Woodside announcing a gas sales agreement with Qenos Pty Ltd.

Woodside share price slides as oil hits 2022 lows

The Woodside share price is facing headwinds today as crude oil prices dropped to their lowest levels in 2022.

Brent crude oil prices fell 4% overnight to US$79.35 per barrel. It was only back in mid-June that Brent crude was selling for north of US$122 per barrel. Though it’s worth noting the Woodside share price is up some 10% since mid-June despite the big retrace in oil prices.

Crude prices fell as there looks to be plenty of near-term crude supply as we head into 2023. Investors have also been spooked by the outlook of slowing global economic growth alongside the US$60 per barrel price cap G7 nations have slapped onto Russian oil exports.

Commenting on the falling oil prices, Ed Morse, global head of commodity research at Citigroup Inc called the recent price actions “absurd”.

Morse told Bloomberg TV that traders are “fleeing the market” because, “We are getting toward the end of the year, and those who made money this year did not want to lose any.”

Gas sales agreement

In other developments that should offer some support to the Woodside share price, the company announced it’s entered into a gas sales agreement with Qenos.

The agreement will see Woodside supply natural gas from its equity position in Bass Strait, located in Victoria. It covers the supply of 4.5 petajoules of gas in 2023 for use at Qenos’ polyethylene manufacturing facilities in Victoria and New South Wales.

Commenting on the gas agreement, Woodside executive vice president of marketing & trading Mark Abbotsford said:

This agreement ensures affordable gas supply to an important large-scale industrial consumer at a time of increased volatility and uncertainty in east coast energy markets.

Woodside is a non-operating joint venture participant in the Bass Strait Project.

Woodside share price snapshot

Despite today’s dip, the Woodside share price remains up an impressive 64% over the past 12 months. That compares quite favourably to the 1% full-year loss posted by the ASX 200.

The post Woodside share price slides as oil sinks to 2022 low appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• If I bought $10,000 Woodside shares at the start of the year, how much would they be worth now?
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• Leading brokers name 3 ASX shares to buy today
• Is the Woodside share price cheap following its recent dip?

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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