Day: 3 January 2023

The new year is off to a disastrous start for the All Ordinaries Index (ASX: XAO) and most of the shares that call it home.

Despite posting a strong start to Tuesday’s session ­– it jumped as high as 0.47% in early trade – the benchmark index tumbled to a two-month low this afternoon.

Right now, the All Ordinaries is down 1.62% at 7,104.7 points.

Fortunately, though, not all its constituents are suffering. We’ve rounded up three that are posting gains of as much as 7%. Let’s take a look.

3 All Ordinaries shares posting whopping gains

The first All Ordinaries share defying today’s tumble is Airtasker Ltd (ASX: ART). Stock in the online marketplace for services is leaping 2.9% to trade at 35.5 cents right now despite the company’s silence.

Sadly, however, today’s gain hasn’t proven enough to boost the embattled share back into the long-term green. It’s fallen 75% since it floated on the ASX in March 2021.

Next up is media and entertainment company HT&E Ltd (ASX: HT1). The All Ordinaries share is roaring 3.63% higher to swap hands for $1 apiece. Its gain comes on news of a major divestment.

The company today revealed it’s agreed to sell its 25% stake in Soprano Design to Potentia Capital for around $66.3 million in cash.

If the name Potentia rings any bells, it’s likely because it’s the private equity firm that recently put in so-far-unsuccessful bids for both Tyro Payments Ltd (ASX: TYR) and Nitro Software Ltd (ASX: NTO).

Finally, the Neuren Pharmaceuticals Ltd (ASX: NEU) share price is rocketing 7.67% right now to trade at $8.56.

That’s despite no news having been released by the All Ordinaries biopharmaceutical share.

Today’s gain included, the stock is just 2.8% lower than the 15-year high it posted in November.

The post 3 ASX All Ordinaries shares defying today’s downturn to rocket higher appeared first on The Motley Fool Australia.

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More reading

• Why HT&E, Seven West Media, Tabcorp, and Weebit Nano shares are rising
• How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023
• Could this beaten-down ASX share be the next 100-bagger?
• 10 ASX shares I think are buys for 2023
• Prediction: 2 ASX shares I think could soar 1,000% in the next 10 years

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 Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has recommended Tyro Payments. 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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Many ASX 200 lithium shares are in the red on the first day of new year trading.

Pilbara Minerals Ltd (ASX: PLS) shares are down nearly 4% at the time of writing, while Core Lithium Ltd (ASX: CXO) is down 1.27%. Shares in Allkem Ltd (ASX: AKE) are currently trading 1.51% lower while Sayona Mining Ltd (ASX: SYA) shares are currently even with Friday’s closing price.

Let’s take a closer look at what might be weighing on lithium stocks today.

What’s going on?

Materials shares are falling overall so far today, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 1.13% at the time of writing. They’re performing better than the S&P/ASX 200 Index (ASX: XJO) which is down 1.67%.

Lithium is an essential component in the use of electric vehicle (EV) batteries. News that EV giant Tesla delivered fewer vehicles than expected in 2022 could be weighing on demand sentiment today.

Overnight, Tesla announced it delivered 405,278 electric vehicles in the fourth quarter of 2022. Overall in 2022, EV deliveries grew 40% year on year to 1.31 million.

However, this fell short of the company’s goal to lift deliveries by 50%, Bloomberg reported. Also, analysts had been tipping Tesla to deliver 420,760 vehicles during the quarter. Bernstein analyst Toni Sacconaghi said (as cited by Bloomberg):

We believe that Tesla is facing a significant demand problem. We believe Tesla will need to either reduce its growth targets (and run its factories below capacity) or sustain and potentially increase recent price cuts globally, pressuring margins.

Meanwhile, economic data out of China could also be weighing on investors’ minds. Manufacturing in China slowed in December, Bloomberg reported. China makes 75% of all lithium-ion batteries, according to a December Australian Department of Industry report.

In recent news, Core Lithium advised on Friday it has achieved the first shipment of 15,000 dry metric tonnes (dmt) of 1.4% Li2O. This achieved a price of US$951 per dmt. The ship will depart Darwin for Fancheng, China. Core Lithium CEO Gareth Manderson said:

The first DSO shipment being loaded for export from the Darwin Port is another significant milestone for the company.

Share price snapshot

The Core Lithium share price has soared 70% in a year

 The Sayona Mining share price has jumped 44% in the last 52 weeks.

Allkem shares have climbed 6% in a year.

Pilbara shares have gained 12.5% in the past year.

The post Why are ASX 200 lithium shares running on empty today? appeared first on The Motley Fool Australia.

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More reading

• Why Invictus Energy, New Hope, Pilbara Minerals, and WiseTech shares are dropping
• Why has the Core Lithium share price fallen 26% in a month?
• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Tuesday
• Here’s what I think could impact the Core Lithium share price in 2023

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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With most brokers taking a break over the holiday period, research notes are few and far between right now.

But don’t worry because listed below are three recent broker buy recommendations that still have plenty of upside potential.

Here’s why brokers think these ASX shares are in the buy zone:

Life360 Inc (ASX: 360)

According to a note out of Goldman Sachs, its analysts have a buy rating and $7.60 price target on this location technology company’s shares. Goldman believes that Life360 has ended the year positively, which it feels eases any risk to its FY 2022 guidance. In addition, the broker notes that the company’s subscription business trades at a discount to global subscription app peers when adjusting for its superior growth outlook. As a result, it sees scope for a re-rating in the future. The Life360 share price is trading at $4.85 today.

Maas Group Holdings Ltd (ASX: MGH)

Another note out of Goldman Sachs reveals that its analysts have a buy rating and $4.20 price target on this property, construction, and infrastructure solutions provider’s shares. Goldman highlights that Maas is in a transition phase that will see higher quality real estate income become the largest source of earnings in the next three years. And with Maas’ shares trading at 10x forward earnings, it believes there’s a lot of value on offer here. The Maas share price is fetching $2.58 today.

Premier Investments Limited (ASX: PMV)

Analysts at Macquarie have an outperform rating and $29.00 price target on this retail conglomerate’s shares. Macquarie has been impressed with the Smiggle and Peter Alexander owner’s strong start to the financial year. In fact, it highlights that the company’s sales growth is tracking ahead of its expectations. This led to Macquarie upgrading its earnings estimates for the year. The Premier Investments share price is trading at $24.57 on Tuesday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 23 ASX shares to buy in 2023 – brokers
• Bell Potter names the ASX tech shares to buy in 2023
• Top brokers name 3 ASX shares to buy today
• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• How to swap your job for $75,000 in retirement income using ASX dividend shares

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has recommended Premier Investments. 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 National Australia Bank Ltd (ASX: NAB) share price managed to significantly outperform the S&P/ASX 200 Index (ASX: XJO) in 2022.

Last year, the ASX 200 fell by around 7%, while NAB shares managed to deliver a positive gain of around 4%.

How did the bank manage to deliver a positive performance? I’d suggest it may have been down to two key things.

Positive run in 2022

A key factor for the performance of the ASX bank share segment of the market is interest rates.

The main profit generator for the Australian banking sector is lending. A change in the central bank interest rate can have widespread impact on the economy.

There were several interest rate rates by the Reserve Bank of Australia (RBA) last year. The interest rate jumped from 0.1% to 3.10%.

The lower official interest rate hurt bank lending margins, meaning their profitability was reduced. So, it would be logical for investors to think that higher interest rates can help lending margins.

NAB said that in the second half of its FY22, it had a net interest margin (NIM) of 1.67%. But, the fourth quarter NIM was 1.72%, up 10 basis points on the third quarter. This could be promising for short-term profitability.

Another factor that I think helped the ASX bank share in 2022 was that management has done a good job at turning the bank around and achieving growth.

In the FY22 report, the company reported cash earnings growth of 8.3% to $7.1 billion. Excluding the Citi consumer business acquisition, revenue rose 7.8%, mainly reflecting higher volumes with growth of 7.3% (with housing lending up 5.6% and non-housing lending up 9.6%).

NAB shares finished the 2022 financial year well capitalised, with a common equity tier 1 (CET1) ratio of 11.51%.

What could 2023 bring for the NAB share price?

The NAB CEO Ross McEwan referred to keeping “strong balance sheet settings”. McEwan said when he delivered the bank’s FY22 result:

Maintaining these settings is important during the current economic uncertainty, with higher interest rates and higher inflation likely to challenge some customers. However, strong employment conditions along with substantial household and business savings give us confidence in the resilience of our customers and the broader economy.

Our strategy is long term, and is not dependent on any particular operating environment or economic conditions. It is centred around an enduring ambition to improve the outcomes for our customers and colleagues. We have made good progress over the past two years which positions us well for a changing environment. However, there is more we can do. We will continue to remain focused on the disciplined execution of our strategy to support sustainable growth in earnings and shareholder returns over time.

However, the bank has also outlined key considerations for FY23.

It said that housing lending competitive pressures are “likely to intensify”, as well as the deposit mix headwind accelerating, further increasing funding costs.

The NIM impact of RBA cash rate increases on unhedged deposits is “expected to peak” in the first half of FY23, with the estimated benefit of cash rate increases from October 2022 expected to be “lower”.

So, the current monthly NIM that NAB is experiencing may be close to the best it is going to see during 2023. However, investors may also pay close attention to borrower arrears. If the higher interest rates mean some borrowers can’t afford their loans, then that could cause problems, leading to bad debts.

If I had to guess, I wouldn’t be surprised if the NAB share price doesn’t move that much over 2023.

The post 2022 was strong for the NAB share price. What’s next? appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received
• The 3 best-performing ASX 200 healthcare shares of 2022 revealed
• 5 things to watch on the ASX 200 on Tuesday
• 23 ASX shares to buy in 2023 – brokers

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

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The Core Lithium Ltd (ASX: CXO) share price has tumbled over the past month.

Core Lithium shares have descended nearly 26% since market close on 2 December and are currently fetching $1.02. For perspective, the S&P/ASX 200 (ASX: XJO) has shed 4% in the last month.

So what has been going on with the Core Lithium lately?

What’s impacted Core Lithium in December?

Core Lithium is not the only ASX lithium share that has fallen in the last month. Pilbara Minerals Ltd (ASX: PLS) shares have slid 26% in a month, while Sayona Mining Ltd (ASX: SYA) shares have lost 19%.

Core Lithium shares plunged nearly 30% between market close on 2 December and 28 December before finishing the year on a high.

A bearish note out of Goldman Sachs may have weighed on the company’s shares in early December. The broker put a sell rating on Core Lithium with a $1 price target. The commodity team at Goldman predicted lithium prices would start to fall in the second half of 2023. Analysts said:

Our commodity team now expect lithium prices through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through before declining over 2H23.

Electric vehicle demand concerns, the performance of US lithium shares, and the lithium price also weighed on ASX lithium shares in December.

The lithium carbonate price descended 15.6% from CNY 562,500 on 1 December to CNY 474,500 on 30 December.

On the US market, Livent Corp (NYSE: LTHM) shares have shed 24% in the last month, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares have lost 16%.

In positive news for Core Lithium in December, the team at Macquarie lifted its outlook on the Core Lithium share price to outperform with a $1.30 price target on the share price. This implies a 28% upside based on the current share price.

Macquarie is optimistic about the company’s ability to generate bumper free cash flow in the 2024 and 2025 financial years.

Core Lithium loaded the first shipment of 1.4% lithium oxide direct shipping ore from the Finniss mine on December 30. The ship containing 15,000 dmt of lithium oxide is bound for China from Darwin. Core Lithium shares soared nearly 6% on this day.

Commenting on this news, CEO Gareth Manderson said:

Core has made good progress during 2022 to transition from a mine developer to lithium producer. In 2023 we will continue this transition and the work required to build a quality operating business.”

Core Lithium share price snapshot

The Core Lithium share price has soared 73% in the past 52 weeks.

Core Lithium has a market capitalisation of nearly $1.9 billion based on the current share price.

The post Why has the Core Lithium share price fallen 26% in a month? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Tuesday
• Here’s what I think could impact the Core Lithium share price in 2023
• 23 ASX shares to buy in 2023 – brokers
• These were the best-performing ASX 200 shares of 2022

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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CSL Limited (ASX: CSL) shares endured a bumpy year in 2022, with the biotech company’s share price swaying between $240 and $305.

When all was said and done, the CSL share price outperformed the S&P/ASX 200 Index (ASX: XJO) by approximately 6%. However, outperforming the benchmark wasn’t exactly a high bar to clear considering the index fell by nearly 7%.

Here’s a look back at the key events for CSL shares in 2022.

Funding secured

In a disappointing start to last year, CSL shares tumbled 18% in the first six weeks of trading in 2022, as shown below. This was a much more pronounced fall than the 5% retreat by the Aussie benchmark.

Investors were on edge as the world grew more uncertain amid Russia’s invasion of Ukraine. Only a few weeks earlier, CSL had announced its intentions to acquire Swiss pharmaceutical company Vifor Pharma for A$16.4 billion.

The weakened market sentiment cast doubt on whether CSL would still be able to raise the funds needed to acquire Vifor. Though, on 14 February 2022, the $750 million share purchase plan had been completed — attracting over $940 million worth of applications. Likewise, the company proceeded to raise $4 billion by issuing bonds in the United States debt market in April.

Vifor enters the room

Between June and August, CSL shares bounced back by around 15% as the acquisition of Vifor drew closer. On 2 August, shareholders were notified that the completion of the deal was slated to take place by 9 August.

In light of the landmark deal, CSL managing director and CEO Paul Perreault said:

Joining CSL, the Vifor business adds near-term value along with a clear path to long-term sustainable growth. It also adds an outstanding management team, along with a high-value and complementary portfolio of products and market-leading position in the nephrology and iron deficiency spaces.

The acquisition of Vifor brings CSL’s products under development to 37 in total and increases its existing pipeline by 32%. Analysts have mostly praised the addition, giving CSL greater diversification in its offerings.

New era for CSL shares

The third and final pivotal moment for CSL shares in 2022 came when longstanding CEO Paul Perreault revealed his plans to retire in 2023.

After 10 years at the helm of one of Australia’s largest companies, Perreault has passed the baton to chief operating officer Dr Paul McKenzie. Following the news in December, the CSL share price proceeded to slip 4.5% over the rest of the month.

What could be ahead for CSL shares?

The first line item of 2023 will likely be Perreault officially stepping down from his role in March. From here, the former CEO will act as a strategic advisor to the company for six months to allow a seamless transition.

In terms of the CSL share price… Citi analysts are forecasting earnings per share (EPS) growth greater than 20% for FY23 and FY24. Hence, the Citi team has slapped a $340 price target on the biotech, representing approximately 19% upside from here.

Similarly, Macquarie has a favourable view on CSL shares for the year ahead. According to the investment bank’s latest model portfolio, CSL holds the highest weighting at 8.3% and a price target of $343.

The post 3 pivotal moments you might have missed for CSL shares in 2022. What now? appeared first on The Motley Fool Australia.

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More reading

• The 3 best-performing ASX 200 healthcare shares of 2022 revealed
• 23 ASX shares to buy in 2023 – brokers
• The top five ASX 200 shares in Macquarie’s model portfolio
• 3 five-star ASX 200 shares I would buy in 2023
• Can CSL shares yield a high return in 2023?

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 positions in and has recommended CSL. 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 Seven West Media Ltd (ASX: SWM) share price is marching higher on this first day of trading in 2023.

Shares in the ASX-listed media company are up 3.8% in morning trade at 41 cents per share.

This comes despite the broader market facing some headwinds today, with the All Ordinaries Index (ASX: XAO) down 1.0% at this same time.

So, why is the Seven West Media share price defying the sell-off?

What’s piquing ASX investor interest?

The Seven West Media share price looks to be getting a boost after the company announced a new agreement with Cricket Australia.

The new, seven-year deal extends Seven West’s media rights from the 2024-25 season to the 2030-31 season.

The company said that its 7plus channel will become the “live and free home of cricket”, providing a digital package of rights atop the broadcast on its Seven Network. Seven West Media has never held digital rights to cricket before this agreement.

Commencing in 2024, Seven West Media will see a 13% decrease in its media rights fees from its current agreement. The new agreement will see the media company pay $65 million in cricket media rights fees a year. SWM said that it has achieved cash savings from rights reduction and production savings of more than $50 million over the term compared to the existing rights deal.

Cricket Australia has said it will reduce the number of Big Bash League (BBL) games to create a shorter tournament that will run for five to six weeks.

Seven West and Cricket Australia had been involved in a legal stoush over prior contract issues. With the new agreement in place, both sides have agreed to drop the court proceedings, with each paying its own costs.

Commenting on the agreement that looks to be sending the Seven West Media share price higher today, CEO James Warburton, said:

We are delighted to extend our partnership with Cricket Australia until 2030-31. A comprehensive package of digital rights to the cricket for 7plus will ensure that for the first time, our viewers will be able to access cricket, live and free, in a way that suits them.

Our combined broadcast and digital rights for both cricket and the AFL means Seven and 7plus will be the home of sport all year round… We look forward to working with Cricket Australia to grow Test cricket, women’s internationals and the BBL and WBBL in the years ahead.

Seven West Media share price snapshot

As you can see in the below chart, the Seven West Media share price came under pressure in 2022, falling almost 35%. With that year behind us, we imagine investors will be cheering a positive start to the new year.

The post Seven West Media share price lifts off on new cricket announcement appeared first on The Motley Fool Australia.

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More reading

• 3 pivotal moments you might have missed for CSL shares in 2022. What now?
• Can these 2 ASX 200 shares crush the market again in 2023?
• Guess which ASX All Ords tech share is starting 2023 with a 6% gain
• My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023
• The Zip share price crashed 88% in 2022. Can it recover in 2023?

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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Although the S&P/ASX 200 Index (ASX: XJO) tumbled a disappointing 5.5% in 2022, not all ASX 200 shares fell with the market.

Two ASX 200 shares that crushed the market last year with gains of at least 20% were infant formula company A2 Milk Company Ltd (ASX: A2M) and airline operator Qantas Airways Limited (ASX: QAN).

Can these ASX 200 shares do it all again in 2023? Let’s take a look at what analysts are saying.

A2 Milk

Unfortunately, as things stand, brokers appear to believe that the A2 Milk share price has peaked for the time being.

For example, the most positive broker that I’m aware of is Bell Potter. However, while its analysts currently have a buy rating on the company’s shares, their price target of $6.80 is a touch below where its shares trade today.

Though, a stronger than expected update in February when A2 Milk releases its half year results could force Bell Potter and other brokers to rethink their valuations and recommendations.

Qantas

Things are looking comparatively better for the Qantas share price in 2023 according to analysts.

Goldman Sachs believes the market is severely undervaluing its shares given its very positive performance and outlook. The broker has a conviction buy rating and $8.20 price target on its shares.

Elsewhere, Morgans has an add rating and $8.50 price target and Morgan Stanley has an overweight rating and $9.00 price target. These three price targets imply potential upside of at least 36% for the ASX 200 share over the next 12 months.

In respect to the Morgans recommendation, its analysts commented:

The discount being applied to QAN is unwarranted, in our view. Solid value exists in QAN given we expect further EBITDA growth over FY24/25 and think pent-up demand to travel will underpin a healthy demand environment for some time.

The post Can these 2 ASX 200 shares crush the market again in 2023? appeared first on The Motley Fool Australia.

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More reading

• 23 ASX shares to buy in 2023 – brokers
• Bought $1,000 of Qantas shares 10 years ago? Here’s how much dividend income you’ve received
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• Brokers name 3 ASX shares to buy next year
• 3 ASX shares near 52-week highs I think can climb higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 All Ordinaries Index (ASX: XAO) is off to a rough start this year, having fallen 1.35% right now. But not all shares on the ASX’s iconic index are suffering.

The Weebit Nano Ltd (ASX: WBT) share price is rocketing 6.15% higher today on exciting news of the company’s next-generation memory technology. The All Ords tech share is currently swapping hands for $3.45.

So, what’s got the market excited about the Weebit Nano share price on the first trading day of 2023? Let’s take a look.

Why this All Ords tech share is surging on Tuesday

The Weebit Nano share price is taking off after the company announced it’s released its first 22-nanometre (nm) demonstration chip to manufacturing – a process known as having been taped-out.

The demo chips integrate the company’s embedded resistive random-access memory (ReRAM) module in an advanced 22nm fully depleted silicon on insulator (FD-SOI) process technology.

22nm is one of the industry’s most common process nodes. It’s also too small to allow the use of embedded flash.

Weebit Nano’s demo chip aims to fill the resulting gap, offering a low-power, cost-effective embedded non-volatile memory solution able to withstand harsh environments.

Commenting on the news driving the All Ords tech share higher today, CEO Coby Hanoch said:

We are continuing to accelerate Weebit’s path towards more advanced geometries to meet a clear market need in applications such as microcontrollers, IoT [internet of things], 5G, edge AI [artificial intelligence], and automotive.

There is increased interest from companies looking to use our ReRAM to create exciting new products in these areas.

The company worked with partners CEA-Leti and CEA-List to scale its ReRAM technology to 22nm.

Weebit Nano share price outperforms tech sector

Today’s gain is just the latest for the Weebit Nano share price. It’s managed to dodge the carnage felt by the broader tech sector over the last 12 months.

The stock is currently 20% higher than it was this time last year. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has tumbled 35%.

The post Guess which ASX All Ords tech share is starting 2023 with a 6% gain 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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A new year gives me the opportunity to review how things went in 2022. Some of my ASX shares managed gains, while others suffered double-digit losses. I’ll be happy to buy more of two of them.

It was a very rough year for some sectors of the ASX share market. Inflation and the subsequent interest rate rises have sent some investors running for the exits, with a number of ASX tech shares and ASX retail shares down more than 50% over the past year, such as the Temple & Webster Group Ltd (ASX: TPW) share price.

While I’m not expecting most of 2023 to be like 2022, there could be more volatility ahead. Who knows what’s going to happen next? That’s part of the fun of investing.

Fortescue Metals Group Limited (ASX: FMG)

My best-performing ASX share was the ASX iron ore share, Fortescue. It rose by around 7% in 2022.

I think it must be pointed out that the timing of the start and end of the 12-month return has played a part here. If the 12-month comparison were done on 13 January, the Fortescue share price would have shown a decline, though if the 12-month return were calculated in it mid-December it would show an even better return than 7%.

Just over a year ago, the iron ore price had slumped to below US$100 per tonne, amid fears about the Chinese real estate sector, including Evergrande. Remember that? But then the Fortescue share price recovered through November and December 2021.

There has been another recovery through November 2022 for Fortescue, as China’s COVID restrictions were removed. This could lead to an economic boost like we saw in western countries during 2022.

Not only did the Fortescue share price rise over the year, but it also paid a full-year dividend of A$2.07 per share, adding around 11% to the return (excluding franking credits).

Due to the strengthening iron ore price, I don’t think I’m going to buy any more Fortescue shares unless there’s a significant fall, which could be triggered by a drop in the iron ore price to below US$100 again.

Duxton Water Ltd (ASX: D2O)

This company owns water entitlements and leases them out to farmers on short-term or long-term contracts. The Duxton Water share price rose around 6% over 2022.

Despite the very heavy rainfall that southeast Australia has experienced over the last year, water values have held up well, despite there being an abundance of the commodity at the moment.

With La Nina (the wetter weather pattern) on track to end soon, this could mean less ‘supply’ of water and could mean higher prices. But, I’m not basing my investment interest on a guess about the weather or short-term water entitlement price movements.

I think water entitlements are a good way to get indirect exposure to the large food sector in Australia. Plus, the ASX water share can offer differentiated returns to the S&P/ASX 200 Index (ASX: XJO).

At the current Duxton Water share price, it’s at a 14% discount to the post-tax net asset value (NAV). Plus, it’s forecasting dividend growth for the next couple of years, so I will be looking to buy more of this stock in 2023.

L1 Long Short Fund Ltd (ASX: LSF)

This ASX share is a listed investment company (LIC) that invests in a mix of ASX shares and international shares.

It has the ability to ‘short’ shares – betting that a share price will go down – as well as invest normally. This can mean that it can deliver stable, or even positive, returns during volatile years like 2022.

But, I think it’s worth saying that negative returns from its ‘long’ investments can still lead to negative overall returns – or the shorted shares can rise, which would also mean negative returns.

I’m looking to buy more shares of this LIC this year at a net tangible assets (NTA) discount in the high single digits or low double digits. I also like the idea of the growing dividend from this LIC.

The post My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 defining moments for Fortescue shares in 2022
• 2 ASX 200 shares I’m never selling
• Iron ore price in 2023: Bull vs. bear
• Better buy for 2023: BHP vs. Fortescue shares
• 25% of my retirement portfolio is in these 5 ASX shares: Here’s why I believe they’re winners for 2023 and beyond

Motley Fool contributor Tristan Harrison has positions in Duxton Water, Fortescue Metals Group, and L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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