Author: openjargon

ASX gold stocks have been some of the most sought-after investments on the Australian share market in 2024. Thanks to surging gold prices, investors have been chasing gold shares like Newmont Corporation (ASX: NEM) with a vengeance this year.

It’s not hard to see why. Since the end of February, Newmont shares have rocketed a whopping 37% or so. The story is similar with other gold miners like Gold Road Resources Ltd (ASX: GOR), Silver Lake Resources Ltd (ASX: SLR) and Northern Star Resources Ltd (ASX: NST).

But next week, Newmont shares will be in the spotlight. That’s because this ASX gold-mining giant is set to trade ex-dividend for its latest shareholder payment on Monday, 3 June.

Newmont’s dividend payments work a little differently from those of most other ASX gold stocks — differently from most other ASX shares, in fact.

This is due to Newmont’s status as an ASX CDI (CHESS Depository Interest). Newmont’s ASX shares actually represent the company’s primary listing on the US markets.

Newmont shares are about to pay out

Thanks to Newmont’s acquisition of the former king of the ASX gold pack, Newcrest Mining, last year, ASX investors who owned Newcrest shares at the time were issued Newmont CDIs on the ASX. These CDIs aren’t real ASX shares, but represent ownership of the company’s primary stock, listed on the New York Stock Exchange as Newmont Corporation (NYSE: NEM) shares.

Owners of Newmont’s ASX shares are still entitled to everything Newmont gives its shareholders, including dividend payments. But since Newmont is a US-based company, these dividends are a little different. For one, they no longer come with franking credits attached. They are also paid out quarterly rather than the six-month interval, which is the norm on the ASX.

The latest of these quarterly dividends is due to hit investors’ bank accounts next month on 27 June. However, if anyone who wishes to receive this dividend who doesn’t already own Newmont stock, time is running out.

Since the company will be trading ex-dividend for this upcoming payment on Monday next week, the last day you can buy Newmont shares with the right to receive the latest dividend attached is tomorrow, 31 May. Anyone who buys this stock from Monday onwards misses out this time.

The company’s dividend will be worth 25 US cents per share (38 cents at current exchange rates). It will be the third dividend that Newmont’s ASX investors will enjoy since the company joined the Australian markets.

This payment is between Newmont’s December dividend of 42.6 cents per share and March’s payment of 26.5 cents per share.

On an annualised basis, it would give Newmont shares a dividend yield of 2.43% at current pricing.

Time to buy?

You might think that today is a great day to buy Newmont shares, bag this dividend, and perhaps sell out later with some free money in your pocket.

Well, unfortunately, there’s no free lunch here. When a company trades ex-dividend, its shares usually fall by whatever the value of the dividend that has just been lost was.

As such, you can either buy more expensive Newmont shares today with the dividend rights attached, or you can buy the cheaper shares next week that come without this dividend. You can’t have the cake and eat it too, unfortunate as that may be.

So if you like Newmont as a business and a gold miner, by all means buy the shares today. But if you’re chasing a quick buck, just hit up the casino instead.

The post Newmont shares are about to trade ex-dividend. Time to buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newmont. 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.

If the share market were a sport, Nvidia Corp (NASDAQ: NVDA) stock would be in the running for MVP of 2024. The computer chip technology company extended its record share price last night, reaching US$1,154.92 before settling at US$1,148.25.

Catapulted by the burgeoning demand for hardware to power artificial intelligence, the US-based graphics card maker has shot up the ranks of most valuable companies. Today, Nvidia is worth US$2.82 trillion, hot on the heels of Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) for the number one spot.

Only four short years ago, Nvidia’s market capitalisation stood at US$214.5 billion, one-thirteenth of what it is today. With the stock almost tripling in value in the past year alone, I think I’d be better off buying a certain ASX stock instead.

Buffett senses are tingling on Nvidia stock’s high

Don’t get me wrong… I believe Nvidia is a phenomenal company. Not that it matters from an investment perspective, but I’ve been on ‘Team Green’ for GPUs (graphic processing units) since saving enough money to buy my first high-performance gaming computer in 2015.

I toyed with the idea of investing in Nvidia stock many times over the years. In 2018 (up 1,900% since), in 2021 (up 400% since), and in 2022 (up 580% since). Not once did I pull the trigger, opting for Advanced Micro Devices Inc (NASDAQ: AMD) in its place. Betrayal of Team Green, I know.

But now, I can’t help but think there’s a bit of euphoria surrounding Nvidia.

I get a little nervous when a company’s stock price chart looks like the one below. If you’re a long-term investor, stock price action shouldn’t dictate whether to buy or sell. But it can tell you about investors’ mentality and mood.

A timeless quote from the legendary Warren Buffett is, “Be fearful when others are greedy, and be greedy when others are fearful”.

It’s rare now to hear anything but optimism about the demand for AI and the boost it will generate for Nvidia stock. My inner Buffett is detecting a euphoric vibe among investors. A ‘no questioning it, just believe!’ frame of mind.

Meanwhile, my mind is contemplating the ‘what ifs’…

What if demand for accelerated computing drastically tapers at a point?

What if Nvidia’s margins revert back to around 25% instead of its recent 53%?

What if Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), aka TSMC, lifts prices?

Personally, I think Nvidia’s growth is murkier now than it was two or three years ago. And while a 42 times forward earnings multiple mightn’t be the steepest ask, I’m not sure those earnings are sustainable.

Relocating the greed to where there’s fear

Channelling my inner Buffett again, I’m inclined to invest where fear has engulfed a good company. Often, this provides a greater margin of safety, minimising the downside and increasing the upside.

I genuinely believe Corporate Travel Management Ltd (ASX: CTD) is an ideal current alternative to Nvidia stock. It’s a completely different business, providing travel management solutions. However, like Nvidia, it is highly profitable, growing at an above-market rate, and is founder-led.

The difference is that this ASX stock trades at a price-to-earnings (P/E) ratio of 17 times, and its shares are out of favour — down 37% over the past 12 months. Weaker full-year FY24 guidance set the selling into motion on 21 February 2024.

I reckon the fear is overdone.

In my opinion, buying Corporate Travel Management now is more like buying Nvidia stock in 2021 or 2022 before the boom. It may not achieve the same meteoric gains, but I think there is less of a rosy outlook already baked into this ASX stock than Nvidia.

The post Which ASX stock I’d rather buy than Nvidia at $1,148 per share appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Mitchell Lawler has positions in Advanced Micro Devices and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Apple, Corporate Travel Management, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Advanced Micro Devices, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have space in your portfolio for some new ASX growth stocks in June, then it could be worth checking out the five listed below.

They have all recently been named as buys by brokers and tipped to rise meaningfully from current levels.

Here’s what you need to know about these top growth shares:

Flight Centre Travel Group Ltd (ASX: FLT)

The first ASX growth stock that could be a buy in June is travel agent giant Flight Centre. Analysts at Morgans are very positive on the company and believe its transformed business model means it is “well placed over coming years.”

The broker currently has an add rating and $27.27 price target on its shares.

IDP Education Ltd (ASX: IEL)

Goldman Sachs thinks this beaten down language testing and student placement company’s shares are dirt cheap at current levels. While the broker acknowledges that it is facing short term headwinds, it remains very positive on its long term growth. This is thanks to structural tailwinds and its dominant market position.

Goldman has a buy rating and $25.30 price target on its shares.

Life360 Inc (ASX: 360)

Bell Potter thinks this rapidly growing location technology company is an ASX growth stock to buy. Its analysts believe that Life360 has the “potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents.” The broker also sees scope for a “re-rating of the stock given the higher multiples of comps.”

It has a buy rating and $17.75 price target on Life360’s shares.

Lovisa Holdings Ltd (ASX: LOV)

Bell Potter is also very bullish on fashion jewellery retailer Lovisa and sees it as a top ASX growth stock to buy.

Its analysts believe that Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034. This is expected to drive strong sales and earnings growth over the next decade.

Bell Potter currently has a buy rating and $36.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Finally, Goldman Sachs is also a fan of this enterprise software provider and sees it as an ASX growth stock to buy. Its analysts highlight that they “see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility.”

The broker has a buy rating and $18.85 price target on Technology One’s shares.

The post Brokers name 5 fantastic ASX growth shares to buy in June appeared first on The Motley Fool Australia.

More reading

• Check out this soaring ASX stock, up 300% in 2 years, with more gains likely to come
• ‘Significant potential’: One unexpected ASX 200 AI share to buy now
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• Should I buy TechnologyOne shares before they trade ex-dividend on Thursday?
• 4 ASX growth shares to buy to supercharge your portfolio in June

Motley Fool contributor James Mickleboro has positions in Life360, Lovisa, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Life360, Lovisa, and Technology One. The Motley Fool Australia has recommended Flight Centre Travel Group, Lovisa, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.5% to 7,625.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Catapult Group International Ltd (ASX: CAT)

The Catapult Group share price is up 11% to $1.72. Investors have been buying this sports technology solutions provider’s shares following the release of a strong full year result for FY 2024. Catapult reported a 20% increase in revenue to a record of US$100 million. This was underpinned by accelerating SaaS revenue, which increased by 24% to US$82 million. Another big positive was that Catapult delivered on its guidance to generate positive free cash flow (FCF) in FY 2024. It generated FCF of US$4.6 million, which represents a sizeable US$26.2 million improvement year on year.

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 4% to $4.78. This morning, this clinical-stage radiopharmaceutical company announced that it has entered into a supply agreement with SpectronRx for the production of Cu-64. Management notes that Cu-64 has an ideal 12.7-hour half-life that helps to overcome the overwhelming supply restraints of current-generation radiodiagnostics. This significantly reduces the scheduling strain on imaging centres, as well as enhancing product performance with longer imaging timepoints.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up a further 3% to $119.68. Investors have been buying this health imaging company’s shares this week after it announced five new contracts with a combined minimum contract value of $45 million. Management advised that the contracts will be fully cloud deployed and are expected to be completed within the next 6 months. Goldman Sachs responded positively to the news. Its analysts reiterated their buy rating and lifted their price target on Pro Medicus’ shares to $136.00.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 3% to $6.09. This may have been driven by another note out of Goldman Sachs. This morning, the broker reiterated its buy rating and $8.05 price target on the airline operator’s shares. It said: “The discounted valuation versus peers and its own history implies that the market is pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks), which we view as a buying opportunity.”

The post Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Group International, Goldman Sachs Group, and Pro Medicus. The Motley Fool Australia has recommended Catapult Group International and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A little-known ASX microcap stock is setting the bar high today even as the All Ordinaries Index (ASX: XAO) wallows in the red.

Shares in the company, which specialises in developing innovative films and coatings, closed Monday trading for 2.2 cents. The stock entered a trading halt on Tuesday at the company’s request, pending today’s announcement.

That announcement was released this morning and has clearly stoked investor interest.

Earlier today, shares in the ASX microcap stock were swapping hands for 4.6 cents apiece, up an eye-watering 109.1%.

After some likely profit-taking, shares are trading for 3.7 cents at the time of writing, still up an impressive 68.2%.

Any guesses?

If you said Nanoveu Ltd (ASX: NVU), give yourself a virtual gold star.

Here’s what’s got investors excited.

ASX microcap stock lifts off on binding agreement

The Nanoveu share price is going ballistic after the company reported it has signed a binding heads of agreement (HOA) with Rahum Nanotech.

The HOA replaces the non-binding memorandum of understanding the ASX microcap stock signed with the South Korean company back in November for exclusive distribution rights for Nanoveu’s EyeFly3D in South Korea.

EyeFly3D is a film and software combination that allows users to experience 3D on everyday mobile handheld devices and other digital displays without requiring glasses.

Nanoveu has granted Rahum Nanotech exclusive distribution rights in South Korea. The company reported that minimum orders totalling US$19.73 million (AU$29.64 million) by 31 December 2026 will be required to maintain that exclusivity.

Subject to Rahum Nanotech meeting those minimum purchase requirements, the companies could mutually agree to extend the exclusivity.

The ASX microcap stock said it has received an initial cash deposit of US$70,000 from an initial order of US$372,000, which includes app development reimbursement. The company will supply 28,000 EyeFly3D screens for Android and Apple iPhones from this initial order.

What did management say?

Commenting on the binding agreement sending the ASX microcap soaring today, Nanoveu CEO Alfred Chong said:

Following signing the non-binding MOU in November last year, Nanoveu and Rahum Nanotech have progressed significantly in software development and evaluation of the South Korean market potential for Nanoveu’s EyeFly3D products…

The HOA includes targeted future minimum purchase orders for many more EyeFly3D screens, which will be suitable for a wide range of Android and Apple iPhones, with screens for tablets also being developed.

Lee Myeong Hoon, president of Rahum Nanotech, looks to have further stoked investor interest in the growth prospects of this ASX microcap stock.

“We’ve chosen the EyeFly3D technology for its unparalleled clarity and breathtaking immersive experience,” Hoon said.

He added, “With the vast potential we foresee in South Korea and the promising opportunities we’ve uncovered, we stand firm in our confidence to not only meet but surpass our targets ahead.”

The post Guess which ASX microcap stock just rocketed 109% on a new deal! appeared first on The Motley Fool Australia.

More reading

• Newmont shares are about to trade ex-dividend. Time to buy?
• Which ASX stock I’d rather buy than Nvidia at $1,148 per share
• Brokers name 5 fantastic ASX growth shares to buy in June
• Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today
• Why BHP, GR Engineering, Novonix, and Pointerra shares are dropping today

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.

It has been another tough session for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index is down 0.55% to 7,624.3 points.

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

BHP Group Ltd (ASX: BHP)

The BHP Group share price is down almost 2% to $44.27. This has been driven largely by significant weakness in the mining sector today. In addition, the Big Australian pulled the plug on its proposed takeover of Anglo American (LSE: AAL) overnight after being refused an extension to its deadline for making a firm offer. Anglo American stated: “BHP has not addressed the Board’s fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American’s shareholders.”

GR Engineering Services Ltd (ASX: GNG)

The GR Engineering Services share price is down 4% to $2.09. This follows the release of a guidance update from the engineering services company this morning. Management advised that it now expects FY 2024 revenue in the range of $415 million to $430 million. This is down from its previous guidance range of $500 million to $530 million. The reduction in revenue guidance reflects delays in expected contract awards. One positive is that the company’s EBITDA is still expected to be higher year on year and in the range of $50 million to $51 million in FY 2024. This is up from $44.4 million in FY 2023.

Novonix Ltd (ASX: NVX)

The Novonix share price is down almost 3% to 70 cents. This has been driven by broad weakness in the battery materials industry on Thursday after a poor night for peers on Wall Street. This has offset the release of a positive update on the company’s Riverside facility. Novonix revealed that when the Riverside facility reaches its targeted capacity of 20,000 tpa, it expects to be achieving operating margins in the range of 23% to 30%. This excludes any benefits from Section 301 tariffs.

Pointerra Ltd (ASX: 3DP)

The Pointerra share price is down 5% to 3.6 cents. This morning, this technology company announced that it has received firm commitments from existing and new institutional, professional and sophisticated investors for a $2.05 million placement. These funds are being raised at a discount of 3.3 cents per new share. The proceeds will be used to advance the company’s strategic objectives for FY 2025.

The post Why BHP, GR Engineering, Novonix, and Pointerra shares are dropping today appeared first on The Motley Fool Australia.

More reading

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• Should you buy BHP shares now before tonight’s Anglo American takeover reveal?

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 Pointerra. The Motley Fool Australia has recommended Gr Engineering Services. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have suffered some pain in the last year, with a 22% decline, as shown on the chart below. Could a rise in profit lead to a resurgence for the ASX telco share?

Recently, some investors may have lost confidence in the company’s outlook because of its enterprise business. The telco is best known for its mobile division, but other divisions also contribute.

Telstra has been reviewing the enterprise segment and has decided on a number of actions to rectify it. It’s going to reduce the number of net applications and services (NAS) products, simplify the customer sales and service model, and reduce its cost base. Up to 2,800 roles will be removed, with one-off restructuring costs of between $200 million and $250 million across FY24 and FY25.

In that same announcement, Telstra said it planned to remove the CPI inflation-linked annual price review for its postpaid mobile plans.

After considering Telstra’s announced changes, let’s examine what the broker UBS projects Telstra’s profit will be for the next couple of years.

FY24

UBS believes that Telstra can continue to raise its mobile prices despite the removal of the CPI indexation. That confidence comes from Telstra’s “network differentiation,” competitors raising prices in March, and consumers’ being “somewhat a bit more conditioned on an annual price rise rhythm for mobile contracts.”

UBS noted Telstra’s commentary suggests “strong subscriber growth momentum has continued”, which gives the broker “comfort the likely willingness of consumers to continue to pay higher prices for network differentiation over the medium-term”.

The broker has forecast Telstra’s net profit after tax (NPAT) could reach $$2.05 billion in the 2024 financial year and it may pay an annual dividend per share of 18 cents.

FY25

The broker thinks there is a “likelihood” of further cost reductions beyond FY25 and that the ASX telco share could see 2% growth of its blended mobile average revenue per user (ARPU) in FY25, with 3% growth in postpaid and 4% with prepaid, according to UBS.

Telstra has guided its underlying FY25 earnings before interest, tax, depreciation and amortisation (EBITDA) could be between $8.4 billion and $8.7 billion.

UBS suggests Telstra’s FY25 profit could be virtually flat, with NPAT forecast at $2.04 billion. The ASX telco share is forecast to pay a dividend per share of 19 cents in FY25, according to the broker.

FY26

After the job cuts and adjustments in mobile prices, UBS has predicted Telstra’s net profit can jump 24% in FY26 to $2.53 billion after a 2.5% rise in revenue. In other words, the broker is expecting Telstra’s net profit margin to significantly improve in the 2026 financial year.

Telstra’s dividend is forecast to increase by 2 cents per share in FY26 to 21 cents per share. The broker is projecting the ASX telco share to generate 22 cents of earnings per share (EPS) in FY26, meaning its dividend payout ratio would be below 100%, which is sustainable and allows for profit reinvestment.

Overall, I think the projected direction of Telstra profit looks promising and could help support the Telstra share price in the next couple of years.

The post Here is the earnings forecast through to 2026 for Telstra shares appeared first on The Motley Fool Australia.

More reading

• How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now
• How UBS expects Telstra shares to gain 27% and deliver dividend growth
• 3 ASX 200 blue-chip shares to buy now
• Buy these ASX shares and get 5% and 6.5% dividend yields
• 3 top ASX 300 dividend shares to buy now for $3,000 a month in passive income

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 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.