Author: openjargon

Sayona Mining Ltd (ASX: SYA) shares are having a relatively positive session.

At the time of writing, the lithium miner’s shares are flat at 3.5 cents.

This compares favourably to many of other ASX lithium stocks today.

For example, Pilbara Minerals Ltd (ASX: PLS) shares are down 1.5%, Core Lithium Ltd (ASX: CXO) shares have tumbled 3%, and Liontown Resources Ltd (ASX: LTR) shares are almost 4% lower.

Why are Sayona Mining shares outperforming?

It appears that the release of an announcement this morning has given investor sentiment a boost and kept the lithium miner’s shares above water.

According to the release, the results from 36 new drillholes totalling 8,803 metres at its 75% owned North American Lithium (NAL) operation in Quebec, Canada, are demonstrating “the high-grade nature of this strategic asset.”

The company notes that all the drilling results from the 2023 exploration program are now complete, validated, and released. Furthermore, the first results from the 2024 exploration drilling program, which is currently underway, are now being reported.

Management believes the 2023 drill program has been successful in demonstrating the potential to increase the mineral resource base at NAL. It highlights that it was designed to test extensions to mineralisation and provide in-fill data for the upgrade of mineral resource categories.

The latest drilling results include the identification of high-grade lithium mineralisation outside the mineral resource estimate (MRE) pit shells. This is particularly the case in the North-West and South-East extensions. It feels this supports the potential conversion of some of the inferred resources to indicated category within the MRE pit shells.

‘Superb quality’

Sayona Mining’s interim CEO, James Brown, appeared to be very pleased with the strong drilling results. He commented:

We are delighted to have another strong set of drilling results from North American Lithium which continue to highlight the superb quality of this mine. The results reported today have shown that mineralisation continues outside of the existing MRE pit shells so the next key step will be to complete a recalculation of the MRE to include recent drilling. Additionally, we will also complete a further 30,000 metres of drilling throughout 2024 to better understand the full potential of the NAL mineralisation.

The news hasn’t been enough to prop up the shares of Piedmont Lithium Inc (ASX: PLL), which owns the remaining 25% interest in the NAL project. Its shares are down 3% to 15 cents at the time of writing.

The shares of both Sayona Mining and Piedmont Lithium remain down over 80% on a 12-month basis.

The post Why are Sayona Mining shares outperforming other ASX lithium stocks today? appeared first on The Motley Fool Australia.

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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.

The All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade today, but this ASX All Ords stock isn’t going anywhere just yet.

Shares in the clinical dermatology company closed at 34 cents apiece yesterday, which sees the stock up almost 18% in five days.

Today shares in the ASX All Ords stock entered a trading halt pending a key approval announcement from the United States Food & Drug Administration (FDA). Shares are expected to resume trading this Friday.

Any guesses?

If you said Botanix Pharmaceuticals Ltd (ASX: BOT), go to the head of the virtual class.

Here’s what’s happening.

What’s happening with the ASX All Ords stock?

Last Wednesday, 12 June, Botanix announced that it had submitted the last label materials to the FDA for its prescription product Sofdra. Sofdra is developed to treat excessive underarm sweating. Also known as primary axillary hyperhidrosis, for our medically inclined readers.

That announcement saw the ASX All Ords stock charge higher over the next three trading days.

Investor enthusiasm looks to have been piqued by the company noting that its labelling discussions present the final step before the “anticipated FDA approval of Sofdra”. Botanix said its been in discussions with the FDA on product carton design and the wording of information to be provided to patients and physicians about Sofdra.

Commenting on the anticipated approval that sees the ASX All Ords stock in a trading halt today, Botanix CEO Howie McKibbon said:

Our team has been highly focused on completing these last label components, well in advance of approval.

Our label and packaging materials are an important part of the materials that we will use to communicate important safety and efficacy information upon approval of Sofdra.

The company said that FDA approval for Sofdra remains on target for this Friday, 21 June. Upon approval, it said that Sofdra will be the first new chemical entity approved for excessive underarm sweating.

Atop of Sofdra, the ASX All Ords stock has a range of other products in late-stage clinical development to potentially treat a variety of dermatology conditions.

Botanix share price snapshot

If you look back to the chart up top, you’ll see just how strong the Botanix share price has performed over the past months.

In 2024 alone, the ASX All Ords share has gained 76%.

Investors who bought shares 12 months ago will be sitting on gains of 205%.

And savvy investors who bought shares at the very end of 2022 (30 December) will have seen those shares rocket by 570%.

The post Guess which high-flying ASX All Ords stock was just halted ahead of a key FDA decision appeared first on The Motley Fool Australia.

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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.

QBE Insurance Group Ltd (ASX: QBE) shares are under pressure on Wednesday morning.

At the time of writing, the insurance giant’s shares are down 1.5% to $18.08.

Why are QBE shares falling?

Investors have been selling the company’s shares this morning after it released an update on its North American strategic review and its expectations for the first half of FY 2024.

In respect to the former, the insurer has revealed that it plans to commence an orderly closure of its North America middle-market segment.

According to the release, the segment represented gross written premium of ~US$500 million in FY 2023 and has experienced performance challenges over several years.

Management believes that the closure of middle-market will serve to refocus North America’s strategy on those businesses, which hold more meaningful market position, relevance and scale.

The good news is that the closure will have no incremental impact on appetite or strategy for North America’s three core businesses, Specialty, Crop and Commercial.

QBE intends to begin non-renewing middle-market policies in accordance with applicable state regulations, with gross written premium expected to begin reducing in FY 2024, before falling more substantially in FY 2025.

A restructuring charge of ~US$100 million before tax will be recorded in the FY 2024 result to account for costs associated with the business closure. Positively, the closure is expected to have limited impact on QBE’s FY 2024 group combined operating ratio.

Half year update

With QBE rapidly approaching the end of its first half, it has taken this opportunity to update the market on its expectations for the six months.

The release reveals that first half gross written premium is expected to be ~US$13.1 billion. This represents constant currency growth of ~3% on the prior corresponding period, with net insurance revenue expected to be ~US$8.4 billion.

Group catastrophe costs in the five months to May 2024 are estimated at ~US$500 million. This compares to its first half catastrophe budget of US$609 million. Recent events have included US convective storms, the Dubai floods, and an initial estimate of US$175 million to US$225 million to account for QBE’s net exposure to the ongoing civil unrest in New Caledonia.

QBE’s investment performance has been solid. It notes that total investment income in the five months to May 2024 was US$643 million. This improved from US$406 million during the first quarter. The result includes a favourable credit spread impact of US$76 million and a risk asset result of US$104 million. As of May, the net impact from asset liability management activities remained neutral.

In light of the above and based on its preliminary view of its half year result, QBE continues to expect FY 2024 group constant currency gross written premium growth in the mid-single digits, and a FY 2024 group combined operating ratio of ~93.5%.

QBE shares remain up 18% over the last 12 months.

The post QBE shares drop on half year update and strategic review appeared first on The Motley Fool Australia.

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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.

The exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ) provides a way for Australian investors to gain exposure to the biggest companies listed on the US-based NASDAQ stock exchange.

The ETF seeks to track the performance of the largest 100 stocks by market capitalisation. This group is collectively the NASDAQ-100 Index (NASDAQ: NDX).

When you think of the NASDAQ, the first thing that may come to mind is mega US tech stocks.

That’s understandable, given that the NASDAQ is home to the Magnificent Seven — six of which are, indeed, mega US tech stocks.

Just to remind you, the Magnificent Seven stocks are Meta Platforms Inc (NASDAQ: META), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Tesla Inc (NASDAQ: TSLA).

Tesla is the outlier among the group as it is in the consumer cyclical market sector.

And it’s not the only non-tech business in the NASDAQ 100, either.

The first thing you may not know

While the NASDAQ 100 (and thus, the Betashares Nasdaq 100 ETF) is certainly ‘overweight’ in tech stocks, there are also many stocks from other sectors.

Here is the latest Betashares Nasdaq 100 ETF sector allocation, as published on betashares.com.au.

As you can see, only half the NDQ ETF’s allocation is tech stocks.

At the recent ASX Investor Day held in Sydney, Betashares investment strategist Tom Wickenden pointed out that the Betashares Nasdaq 100 ETF was a particularly complementary holding for ASX 200 investors.

One reason is their opposite sector weightings.

The S&P/ASX 200 Index (ASX: XJO) is dominated by banks and major miners, while the NDQ ETF is dominated by tech stocks.

The ASX 200 comprises 30.6% financial shares, 22.7% materials shares, and only 3.2% tech stocks. In contrast, the NDQ ETF has only 1.5% materials shares, 0.5% financial shares, and 50.5% tech stocks.

Furthermore, the NDQ ETF complements ASX 200 shares because it offers geographical diversification beyond Australia — and not just to the US economy, either.

This brings us to the second thing you may not know about the Betashares Nasdaq 100 ETF.

Only 50% of earnings come from the US

Although the NASDAQ is a US-based stock exchange and comprises many big-name US-based companies, NASDAQ 100 businesses tend to be global in nature with a globally diverse customer base.

This means they generate revenue in many different countries and are exposed to many different economies.

So, while you may initially associate the NASDAQ with the United States, it’s worth knowing that only 50.3% of revenue generated by the NASDAQ 100 comes from the US.

The rest comes from various other countries, with a revenue split very similar to the MSCI World Index.

Take a look.

Source: Betashares.com.au

This is notable because investors tend to look to MSCI indexes to attain worldwide diversification for their portfolios.

The MSCI World Index comprises 1,464 stocks across 23 developed countries. According to msci.com, the index “covers approximately 85% of the free float-adjusted market capitalization in each country”.

So, it’s interesting to note that the Betashares Nasdaq 100 ETF can offer virtually the same geographical earnings diversification, but your investment is more concentrated with just 100 stocks instead of 1,464.

Is that a positive or negative? You decide. We’re just letting you know.

An ‘investment in innovation’

Wickenden points out that the NASDAQ 100 “is the home of innovation globally” and thereby represents an investment in not just technology but also innovation, which encapsulates so much more than IT.

And ’tis the era, right?

Did someone say electric vehicles? Or green steel?

Wickenden says that of the nine listed companies to ever touch the trillion-dollar mark in market capitalisation, seven have achieved their success through major innovation.

Of course, those seven stocks are the Magnificent Seven. (Fun fact: The other two stocks that reached US$1 trillion were PetroChina and Saudi Aramco.)

He also says that innovation requires a serious commitment to research and development (R&D), and the NASDAQ 100 (and thus the Betashares Nasdaq 100 ETF) gives investors exposure to such companies.

Wickenden said:

If we look under the hood of the NASDAQ 100, what we find is it’s home to some of the most innovative companies in the world and also some of the biggest R&D spenders in the world.

We can see … over the past 10 years huge growth of research and development spending has coincided with huge growth of revenue and ultimately earnings growth for that index compared to other companies globally and especially compared to the Australian market.

Wickenden used Microsoft as a case study.

He said a huge investment in cloud computing many years ago resulted in Microsoft’s cloud computing division alone delivering more revenue than Australia’s Big Four banks combined last year.

You can check out the NDQ ETF’s entire portfolio and weightings here.

The Magnificent Seven’s weightings in the NDQ ETF at the time of writing are Apple 8.6%, Microsoft 8.5%, Nividia 8.4%, Alphabet 5.3%, Amazon 4.9%, Meta 4.5%, and Tesla 2.3%.

A short price history on Betashares Nasdaq 100 ETF

The Betashares Nasdaq 100 ETF closed Tuesday’s session at $45.60 per unit, up 0.75% for the day.

The NDQ ETF has risen 22% in the year to date and 34% over the past 12 months.

The post What you may not know about the Betashares Nasdaq 100 (NDQ) ETF appeared first on The Motley Fool Australia.

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• 3 winning tips both Warren Buffett and Peter Lynch recommend
• Why these strong ASX ETFs could be top long term picks
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former 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. Motley Fool contributor Bronwyn Allen has positions in BetaShares Global Sustainability Leaders ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Corporate Travel Management Ltd (ASX: CTD) share price has fallen to a 52-week low, as we can see on the chart below. It’s also down 32% since the start of 2024.

The ASX travel share has lost investor confidence after the FY24 first-half result wasn’t as strong as some investors were hoping.

Corporate Travel Management said macro issues beyond the control of the business impacted performance in the second quarter of 2024. That included negative travel sentiment relating to conflict in the Middle East, American client calendar-year travel budgets being fully utilised by the end of the FY24 first quarter due to “unsustainably high ticket prices” and a slower Chinese outbound recovery.

These issues affected FY24’s second-quarter earnings before interest, tax, depreciation, and amortisation (EBITDA) by approximately $15 million.

It also said the UK bridging contract is “materially underperforming” compared to the client’s initial expectations because of immigration challenges and timing delays. This is expected to have a $25 million impact to the full-year result.

But the ASX growth stock could have a very promising outlook for the rest of the decade.

Why the Corporate Travel Management share price could be undervalued

For starters, the business said the macro issues in the second quarter “appear to have dissipated, with the group experiencing a strong rebound in January 2024.” These issues are “unlikely to impact 2H24”.

The company has a five-year growth strategy to double its FY24 profit organically by FY29, which would represent a compound annual growth rate (CAGR) of 15%, with any acquisitions adding to the growth.

Firstly, the company is aiming to grow its revenue by at least 10% per annum over five years by winning new clients. The new win target starts at $1 billion per annum and will increase to $1.6 billion per annum by FY29.

Second, the ASX growth stock wants to keep its client retention rate of 97% each year. The company is expecting client activity will grow by 3% per annum, offsetting any client losses.

Third, it’s hoping that its key projects will achieve revenue gains and savings over time, with a target of costs to only grow by 5% per annum. Revenue per full-time employee improvement will be a key performance measure of progress. Future projects are aimed at both market share growth and automation.

Fourth, Corporate Travel wants 50% of every new dollar of revenue to fall to the EBITDA profit line as it wins new clients, retains existing clients and implements the above-mentioned cost projects. This can translate into the EBITDA growing at a CAGR of 15% over five years.

Finally, any acquisitions are in addition to the above plans. Most acquisition targets are “highly leveraged with debt to survive COVID”. The ASX travel share is “actively pursuing” these opportunities, which will add “further growth, shareholder value and economies of scale.”

If the company executes its plans well and doubles its profit in the next five years, I think it could be a great market-beater, as long as technology and AI don’t negatively disrupt the travel industry.

ASX growth stock valuation

According to the estimates on Commsec, the ASX growth stock is valued at 16x FY24’s estimated earnings and just 12x FY26’s estimated earnings.

The post Near its 52-week low, this ASX growth stock could be the bargain of the year! appeared first on The Motley Fool Australia.

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

Legendary investor Warren Buffett said a low-cost index fund is the most sensible equity investment for the great majority of investors.

Many investors enthusiastically embrace exchange-traded funds (ETFs) as an excellent choice for building a diversified and resilient retirement portfolio, and with good reason.

Buffett advocates cost-effective investing, highlighting ETFs for their low expense ratios and investors’ ability to keep more money invested. ETFs offer flexibility similar to stocks, allowing for portfolio adjustments in tune with retirement goals and market dynamics.

With that in mind, here are my two ASX ETF picks for retirement.

Vanguard Australian Shares Index ETF (ASX: VAS)

Let’s kick off with the Vanguard Australian Shares Index ETF. This ETF is a prime example of Buffett’s invaluable advice in action. It offers extensive exposure to the Australian equity market, comprising the top 300 companies listed on the ASX.

This ETF is designed to track the return of the S&P/ASX 300 Index (ASX: XKO), which includes Australia’s major players such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

Another important consideration is its fees. The VAS ETF is popular due to its low management fee of just 0.1% per annum, making it an even more attractive investment option.

This ETF is ideal for those seeking regular income, paying quarterly dividends. Over the past 12 months to April 2024, it provided total dividends of $3.741, yielding 3.9% at the current share price, with around 80% franking credits.

Over the last 10 years, VAS has generated a total return of 7.7% per year, comprising 3.2% capital growth and 4.5% income return.

The VAS ETF unit price was trading at $96.73 after closing on Tuesday.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Now, for those eager to broaden their investment horizons, Betashares Nasdaq 100 ETF stands out as an exceptional choice.

With Australia accounting for just 2% of the global financial market, it’s crucial to diversify beyond domestic equities when planning for retirement.

NDQ offers an affordable entry point into the United States market, focusing on tech-heavy and growth-oriented stocks within the NASDAQ-100 Index. Big names include Nvidia, Amazon, Apple and Alphabet. This not only serves as a hedge against domestic market volatility but also adds substantial value by capturing growth opportunities in the global market.

The ETF’s management fee is 0.48% per annum, which is higher than VAS but reflects its specialised exposure to high-growth tech stocks.

Since its inception in May 2015, the ETF has generated an average annual return of 19.48%, which is phenomenal.

The NDQ ETF unit price closed at $45.60 on Tuesday.

The post 2 ASX ETFs I would happily buy today for my retirement appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Kate Lee has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, CSL, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CSL, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares pushed higher on Tuesday.

The buy now pay later (BNPL) provider’s shares rose 2.5% to $1.44.

This appears to have been driven by news from across the Pacific.

What gave Zip shares a boost?

There were fears last year that tech behemoth Apple Inc (NASDAQ: AAPL) was going to steal market share away from Zip in the United States with the launch of Apple Pay Later.

However, less than a year after launching its BNPL offering, the iPhone maker has decided to discontinue the service. This means one less player for Zip to compete with in the lucrative US market.

According to a press release, Apple decided to scrap its Apple Pay Later service after announcing that third-party services would be integrated into its upcoming iOS 18 software. It commented:

Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay. With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US.

In addition, it is worth noting that the new service will be made available globally (not just in the US) through the company’s Apple Pay platform with the launch of iOS 18. It adds:

Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and this solution will enable us to bring flexible payments to more users, in more places across the globe, in collaboration with Apple Pay enabled banks and lenders.

What is unclear, though, is whether Zip will be one of the third-party providers that will be integrated into the software. If it is, it could be a big boost to Zip’s growth in the coming years.

Conversely, if one of its rivals has the honour of being integrated, it could potentially cause some headwinds for Zip.

Should you invest?

With Zip shares up 205% over the last 12 months, analysts believe that potential upside is now becoming somewhat limited.

For example, both UBS and Ord Minnett currently have buy ratings on the BNPL provider’s shares. However, with price targets of $1.55, this suggests that Zip’s shares could rise a modest 7.6% over the next 12 months.

This could make it worth waiting for a better entry point and further clarification on Apple Pay’s integrations.

The post Could Apple’s latest move boost Zip shares? appeared first on The Motley Fool Australia.

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