Author: openjargon

ARN Media Ltd (ASX: A1N) shares are under pressure once again after the radio company’s former star Jackie O filed a wrongful termination lawsuit against it, claiming she is owed at least $82.2 million.

This follows a lawsuit lodged last week by her former on-air partner, Kyle Sandilands, who is also arguing his contract was wrongfully terminated.

Major legal headache

The lawsuits could be ruinous for the company, with each aggrieved party employed under a $100 million contract that stretched out to 2034.

The lawsuits spring from an on-air falling out between the pair on The Kyle and Jackie O Show, after which Jackie O – real name Jacqueline Henderson – refused to go back on air with Sandilands.

Ms Henderson, at the time, ARN said, gave notice that she “cannot continue to work with Mr Kyle Sandilands.”

ARN Media said then that it had terminated its agreement with Henderson, while offering her the possibility of another show on the network.

The company said in its statement to the ASX on Tuesday that Ms Henderson had now formally filed a suit against it.

The company added:

In summary, the applicants claim that the termination of Ms Henderson’s contract constituted adverse action. Ms Henderson sent a ‘Complaint Letter’ to Commonwealth Broadcasting Corporation which noted that Ms Henderson “cannot continue to work with Mr Kyle Sandilands” and made psychosocial health and safety and bullying complaints in relation to the conduct of Mr Kyle Sandilands on and prior to 20 February 2026. It is alleged that the Complaint Letter involved the exercise or proposal to exercise workplace rights, and that the contract was terminated because of that exercise or proposed exercise, in alleged contravention of section 340 of the Fair Work Act 2009 (Cth). It is also alleged the termination of her contract amounted to a repudiation of that agreement.

ARN said Ms Henderson was claiming compensation of “at least” $82.25 million, plus a pecuniary penalty.

ARN said it disputes the claims and intends to defend the proceedings.

The company added:

Given the early stage of the matter, ARN is unable to reliably estimate the outcome or any potential financial impact.

Shock jock aggrieved

Sandilands’ claim, filed last week, did not include a dollar figure; however, it did ask for “specific performance of two contracts”, with the quantum likely to be in a similar range to Henderson’s.

ARN said Sandilands is claiming that, “the termination of Mr Sandilands’ contract was invalid on the basis they allege that there was no act of serious misconduct or breach of contract, and that the termination was unconscionable under the Australian Consumer Law”.

Taken together, if successful, the two legal claims would dwarf the size of ARN Media, which was last valued at $90.8 million. The company’s shares were 3.5% lower at 28 cents on Tuesday morning.

The post The Kyle and Jackie O saga continues, with a massive new legal claim filed appeared first on The Motley Fool Australia.

More reading

• Which media company’s shares are on the slide after big legal news?
• ARN Media has torn up Kyle Sandilands’ contract – so how much could it cost them?

Motley Fool contributor Cameron England 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 ASX share market is throwing up a lot of potential buying opportunities. I think there are a few Australian stocks that are simply too good to ignore if someone had $8,000 to invest (or a different figure).

It’s not often that some of the most compelling businesses trade at extremely low prices.

We saw great prices during 2022 and 2023 as high inflation caused concerns about economic conditions and rising interest rates. It seems the same thing is happening again, which I believe will be a great opportunity to buy and hold these Australian stocks for the long term.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle says it’s an investment business that is growing a diverse family of world-class investment management businesses (affiliates).

Along with holding stakes in these affiliates, Pinnacle provides seed funding, global institutional, retail distribution, and “industrial-grade” middle office and infrastructure services.

By doing this, Pinnacle enables the investment professionals to focus on delivering investment returns for clients.

Pinnacle has a growing portfolio, which includes Aikya, Antipodes, Coolabah Capital, Firetrail, Hyperion, Life Cycle, Metrics, Pacific Asset Management, Resolution Capital, and more.

For a business that has a large chunk of its earnings linked to funds under management (FUM) performance, it’s understandable why the Pinnacle share price has declined during this period. But the fall of more than 20% this year seems like an overreaction.

Pinnacle’s affiliates have a strong collective track record of outperforming their benchmarks over the long term, and they also have a history of attracting net inflows from clients. This has helped drive the underlying net profit (excluding performance fees) of Pinnacle over the long term. I believe FUM growth will return (or continue) after this period.

With the current market pessimism, I think this is a great time to look at the Australian stock while it’s trading at under 20x FY26’s estimated earnings, according to CMC Invest.

Lovisa Holdings Ltd (ASX: LOV)

Another business I think would be a great buy during this market volatility is Lovisa, a retailer of affordable jewellery that has a global store network.

The business has built an impressive market position and continues to grow at an impressive rate.

Its financial growth and store rollout are two of the main reasons to consider this Australian stock, in my view, along with the fact that the Lovisa share price has dropped more than 25% this year, making the valuation much more appealing.

Excluding its new start-up business Jewells, Lovisa reported in HY26 that revenue grew by 22.7%, with comparable store sales growth of 2.2%. Underlying operating profit (EBIT) increased by 20.4%, and net profit increased 21.5% despite the fact that the company is investing significantly in long-term growth.

Its global store count increased by 152 (or 16%) year over year to 1,095. Store growth is happening in numerous countries, including Australia, South Africa, China, Vietnam, the UK, Zambia, Ireland, Spain, France, Germany, the Netherlands, the USA, Canada, and Mexico.

As long as the Australian stock continues to deliver positive comparable store sales growth, I think the store rollout will be a positive for both total revenue and long-term profit margins.

I’m not expecting the new Jewells business to become a major contributor to the company, but it may have a promising future if it can reach a certain scale.

The Lovisa share price is currently valued at 24x FY26’s estimated earnings, according to CMC Markets. This seems like a very promising time to invest, in my view.

The post 2 strong Australian stocks to buy now with $8,000 appeared first on The Motley Fool Australia.

More reading

• This beaten-down ASX financial stock could deliver returns of better than 80%
• 5 oversold ASX 200 shares to buy according to Wilsons
• 2 ASX 200 shares that now have 60% upside: Analysts
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX growth shares that could rebound strongly after the selloff

Motley Fool contributor Tristan Harrison has positions in Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Metallium Ltd (ASX: MTM) share price is gaining ground again on Tuesday after the company released a major update.

Investors are responding positively, sending the shares 5.36% higher to 59 cents in morning trade.

Even with today’s gain, the stock remains down 47% in 2026. That highlights the big swings investors have seen this year, after the stock has risen around 270% over the past 12 months.

Given the stock was halted on Monday pending this announcement, today’s move is likely to draw even more attention to the update.

Here’s what the market is reacting to.

10-year deal adds another key milestone

According to the ASX announcement, Metallium’s wholly owned US subsidiary, Flash Metals USA, has signed a 10-year initial agreement with Indium Corporation.

The deal covers gallium, germanium, indium, copper, tin, gold, and other critical metals recovered from e-waste and industrial scrap using the company’s Flash Joule Heating technology.

The pricing is tied to market-based formulas, giving investors a clearer view of how recovered metals could contribute to revenue as the Texas plant ramps up.

The agreement also adds a long-term customer as the company continues expanding its US operations.

This follows January’s binding Glencore feedstock supply deal, which secured raw material supply for the Texas site.

Texas growth plans remain in focus

The agreement gives Metallium further exposure to metals that remain in strong demand across semiconductors, defence equipment, AI infrastructure, and advanced electronics.

Gallium and germanium have become increasingly important as Western countries look to reduce reliance on overseas supply chains.

Management also said the deal aligns with broader US efforts to rebuild domestic refining capacity and strengthen critical mineral supply chains.

The Texas expansion remains a key reason behind the stock’s strong 12-month gain.

The company recently said it expects three Flash Joule Heating units to be operating together by June, with processing volumes set to increase through the second half of 2026.

Even so, the Metallium share price has continued to see-saw in recent months as larger-scale production builds.

Foolish Takeaway

The gain suggests investors wanted another clear sign that the company is turning its technology into commercial sales.

A 10-year deal with a well-known US customer marks another solid milestone for the company as it works toward larger operations in Texas.

With the stock still well below its 2026 highs, the move higher shows the market is still reacting strongly to progress on contracts and production growth.

Metallium has a market capitalisation of about $412 million, with 736.8 million shares outstanding.

The post This ASX stock just landed a 10-year US deal and investors are buying in appeared first on The Motley Fool Australia.

More reading

• Why this ASX stock just dropped 7% after today’s announcement
• This innovative ASX metals company could deliver more than 100% upside: broker

Motley Fool contributor Aaron Teboneras 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 is not always comfortable buying ASX growth shares during periods of market volatility.

In fact, it often feels easiest to buy them when prices are rising and confidence is high. The story sounds better, the outlook feels clearer, and momentum is on your side.

But that is usually not when the best long-term opportunities appear.

After the recent pullback in global markets, I find myself looking at growth shares a little closer. Because this is often when sentiment and fundamentals start to diverge.

When great ASX growth shares are marked down

One thing I have noticed over time is that high-quality ASX growth shares rarely stay cheap for long.

But they do get sold off.

Sometimes it is because of rising interest rates. Sometimes it is macro uncertainty. And sometimes it is simply a shift in market mood.

Businesses like Wisetech Global Ltd (ASX: WTC), TechnologyOne Ltd (ASX: TNE), and Life360 Inc. (ASX: 360) have all seen their share prices pull back despite continuing to execute operationally.

That disconnect is what I find interesting.

Because if the long-term outlook remains intact, a lower share price can quietly improve future return potential.

The trade-off never really disappears

That said, I do not think growth investing suddenly becomes easy just because prices fall.

The trade-off is always there.

You are often paying a premium for companies that are expected to grow strongly into the future. That means expectations matter. Execution matters. And sentiment can shift quickly.

Even after a correction, many growth shares are not cheap in a traditional sense.

But I think that misses the point slightly.

For me, the question is less about whether a stock looks cheap today and more about whether the business can be meaningfully larger and more profitable in five or ten years.

Why I think this environment is interesting

What makes the current environment stand out to me is the combination of uncertainty and structural growth.

On one hand, there are still macro concerns floating around. Interest rates, artificial intelligence (AI) concerns, global growth fears, and market volatility have not disappeared.

On the other hand, many of the long-term drivers behind growth companies remain intact.

Digital transformation is still ongoing. Healthcare innovation continues. Enterprise software adoption is not slowing down.

That tension can create opportunities.

Not obvious ones. Not risk-free ones. But opportunities to build positions in businesses that might otherwise always feel just out of reach.

How I would approach it

If I were looking at ASX growth shares today, I would focus on building positions gradually.

Adding over time helps smooth out volatility and removes the pressure of needing to get the timing exactly right.

I would also stay selective.

Not every company that falls is a good opportunity. For me, it comes back to quality. Strong balance sheets, clear competitive advantages, and a track record of execution.

That is what gives me confidence to hold through the inevitable ups and downs.

Foolish takeaway

Growth investing never really feels easy, and that is probably a good thing.

Right now, I think we are in one of those periods where high-quality ASX growth shares are being viewed with a bit more caution.

For long-term investors, that can be an opportunity because the gap between sentiment and long-term potential may be starting to open up again.

The post Is now the perfect time to buy ASX growth shares? appeared first on The Motley Fool Australia.

More reading

• 3 ASX tech stocks that belong in every long-term portfolio
• 3 strong ASX growth shares I want to buy in April
• 5 ASX 200 shares including WiseTech and Xero plumbing new 52-week-plus lows on Monday
• Got $5,000 to invest? Here are 2 ASX tech stocks to buy today
• 2 ASX shares highly recommended to buy: Experts

Motley Fool contributor Grace Alvino 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 Life360, Technology One, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Challenger Ltd (ASX: CGF) share price is in focus today after the company welcomed APRA’s new capital framework for longevity products, due to start from July 2026. Challenger expects the move will lower required capital and reduce risk for lifetime income product providers.

What did Challenger report?

• APRA finalised changes to capital settings for longevity product providers, effective 1 July 2026
• Reforms expected to lower required capital and cyclical risk for Challenger
• Challenger to detail business impacts at Investor Day on 26 May 2026
• Challenger Life remains Australia’s largest provider of annuities

What else do investors need to know?

Challenger has welcomed APRA’s reforms, saying they represent the biggest changes for longevity product providers in a generation. The company believes these changes will help develop Australia’s retirement income market as more Australians enter retirement each year.

Challenger operates both a fiduciary funds management division and an APRA-regulated Life division. The business remains firmly focused on providing customers with financial security in retirement.

What did Challenger management say?

Managing Director and Chief Executive Officer Nick Hamilton said:

We strongly welcome APRA’s reforms, which represent the biggest changes for providers of longevity products in a generation. For Challenger, it will lower the levels of required capital and cyclical risks to our capital position during times of market stress, while maintaining policyholder security.

What’s next for Challenger?

Challenger plans to work through the details of the new capital standards and will provide more information about their impact at its upcoming Investor Day in May 2026. The company continues to advocate for policy changes that support retirees’ financial confidence and improve the sustainability of lifetime income products.

Investors can expect further updates as Challenger refines its approach in light of these regulatory changes, helping position the business for the future.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Challenger shares in focus as APRA unveils new capital rules appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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 Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) gold stock West African Resources Ltd (ASX: WAF) is marching higher today.

West African Resources shares closed yesterday trading for $3.05. In late morning trade on Tuesday, shares are swapping hands for $3.09 apiece, up 1.3%.

For some context, the ASX 200 is down 0.2% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 0.3%.

Here’s why West African shares are outperforming today.

(* Note, all figures below in US dollars unless otherwise specified.)

ASX 200 gold stock lifts on record production outlook

West African shares are outperforming today after the unhedged gold miner released its production guidance for calendar year 2026 and its 10-year production outlook.

As for the year ahead, the ASX 200 gold stock forecasts production of 430,000 ounces to 490,000 ounces of gold. The high end of that guidance represents a 63% increase from the 300,000 ounces of gold West African produced in 2025.

The company expects to produce this gold at an all-in sustaining cost (AISC) of $1,900 per ounce.

And with plans to increase its gold resources and extend mine lives, the miner is aiming to drill some 100,000 metres across its Sanbrado and Kiaka assets, both located in Burkina Faso, in 2026.

Amid strong operations, West African Gold said it is also considering share buybacks or declaring a maiden dividend in 2026.

“2026 is set to be a record production year for WAF as we will see a full year of operation from Kiaka for the first time, and another solid year of production from Sanbrado is expected,” West African Gold CEO Richard Hyde said.

What’s ahead for West African Gold shares?

Looking to the decade ahead, the ASX 200 gold stock released an updated Resources, Reserves and 10‐year production outlook.

West African’s Reserves increased to 7 million ounces of gold, while its Mineral Resources increased to 13.7 million ounces of gold.

Over the 10 years from 2026 to 2035, the miner expects to produce 5.3 million ounces of the yellow metal. Annual gold production is forecast to peak at 596,000 ounces in 2030.

And Hyde noted that those production figures could ramp up following ongoing exploration.

He said:

We see potential to improve annual production further through our ongoing drilling programs where we plan to drill more than 100,000 metres annually targeting extensions at M5 South underground, beneath M5 North open-pit and Toega underground.

Despite the March retrace following the onset of the Iran war and resulting decline in global gold prices, shares in the ASX 200 gold stock remain up 32% in 12 months.

The post Guess which ASX 200 gold stock is lifting off today on record breaking news appeared first on The Motley Fool Australia.

More reading

• West African Resources: 2026 production guidance forecasts record gold output
• 2 ASX gold miners to buy for solid share price gains, according to Barrenjoey
• Here are the top 10 ASX 200 shares today
• Why Challenger, Meeka Metals, Vulcan Energy, and West African Resources shares are rising today
• Why is this $3 billion ASX 200 gold stock leaping higher on Tuesday?

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.

Passive income gets talked about a lot in investing circles.

The idea is simple. Build a portfolio, collect dividends, and let your money do the work for you.

But I think it is worth asking a more honest question.

Is it actually achievable in a meaningful way, or is it just a nice concept on paper?

Where the income really comes from

When people talk about passive income on the ASX, they are usually talking about dividends.

And to be fair, Australia is a strong market for that.

Companies like Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Transurban Group (ASX: TCL) have built reputations for returning cash to shareholders over time.

There are also ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY), which package that income focus into a single investment.

On the surface, it can look relatively straightforward. Buy income-generating assets and collect the distributions.

But I think the reality is a bit more nuanced.

The capital requirement is often underestimated

One thing that stands out to me is how much capital is usually required to generate meaningful income.

For example, a portfolio yielding around 4% would generate $4,000 per year from a $100,000 investment.

That is not insignificant, but it is also not life-changing for most people.

To generate $40,000 per year at that same dividend yield, you would be looking at a $1 million portfolio.

That is where the challenge becomes clearer.

Passive income from shares is achievable, but it typically sits at the end of a long period of saving and investing, not at the beginning.

Yield is only part of the story

Another thing I think is important is not to focus solely on yield.

High dividend yields can sometimes signal risk rather than opportunity.

If a company is paying out a large portion of its earnings, it may have less flexibility to reinvest in growth or to navigate tougher conditions.

That is why I think a mix is best.

Some income-focused holdings, but also businesses that can grow their earnings over time. Because growing earnings can lead to growing dividends.

And that is where the real compounding effect starts to show up.

Building toward it over time

Personally, I do not think of passive income as something you switch on.

I think of it as something you build toward.

In the earlier stages, the focus might be more on growth. Increasing the size of the portfolio.

Over time, as the portfolio becomes larger, income naturally becomes more meaningful, even without dramatically changing the strategy.

That shift tends to happen gradually, almost without noticing at first.

Foolish Takeaway

Passive income from ASX shares is absolutely achievable.

But I think it is important to frame it realistically.

It usually requires time, consistency, and a meaningful amount of capital. It is less about finding the perfect high-yield stock and more about building a portfolio that can grow and generate income over many years.

The post Is passive income from ASX shares really achievable? appeared first on The Motley Fool Australia.

More reading

• The Kyle and Jackie O saga continues, with a massive new legal claim filed
• 2 strong Australian stocks to buy now with $8,000
• This ASX stock just landed a 10-year US deal and investors are buying in
• Is now the perfect time to buy ASX growth shares?
• Challenger shares in focus as APRA unveils new capital rules

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

KMD Brands Ltd (ASX: KMD) has revealed it made a net loss for the first half and will raise NZ$65.3 million at a steep discount to its current trading price, while its shares will remain in a trading halt for now.

The company, which owns the Rip Curl and Kathmandu brands, placed its shares in a trading halt on Wednesday last week while it sought to finalise the capital raise, which The Australian reported was initially seeking to raise NZ$100 million.

Capital raise details revealed

The company this morning said it would raise NZ$65.3 million at a 69.2% discount to its last trading price on the New Zealand Stock Exchange, where its shares last changed hands for NZ19.5 cents.

KMD said it would raise NZ$6.8 million from institutional shareholders and another NZ$58.5 million from current shareholders in a fully underwritten offer.

The company has asked that its shares remain suspended from trade while it finalises the institutional tranche of the new share offer.

Sales up but books in the red

On the operational front, the company published its first-half results, with group sales up 7.3% to NZ$505.4 million, but the company posted a net loss of NZ$13.1 million.

Kathmandu was the standout performer for the group in terms of revenue increase, with sales up 12.3% and EBITDA improving from a NZ$12.8 million loss to a NZ$2.4 million loss.

Rip Curl sales were up 4.6% while EBITDA fell 13% to NZ$20.5 million.

KMD Brands Chief Executive Brent Scrimshaw said regarding the result:

Since launching our Next Level strategy, we have accelerated the pace and quality of execution and returned each of our brands to growth in a short timeframe. Strong early progress has been made against our key initiatives, giving us further conviction in our potential. We’re particularly encouraged by the improved performance of Kathmandu, which has delivered double-digit same store sales growth for the first time in over two years. It’s also pleasing to see consumers responding positively to our accelerated product freshness, flow and assortment, along with a renewed focus on innovation. While Rip Curl has navigated more volatile global trading conditions, we remain confident that the brand’s repositioning will drive long-term growth and youthful energy, connected to the next generation of core surf and beach consumers.

The company had net debt at the end of January of NZ$94 million.

On the outlook, KMD said Kathmandu had continued its recent sales momentum in the first six weeks of the second half, “with the key Autumn and Winter trading periods still to come”.

The company added:

Rip Curl and Oboz wholesale order books for 2H FY26 are in line with last year, with the Europe and North America summer season to come. Gross margin expansion is anticipated YOY in 2H FY26, reflecting actions taken to offset the US tariffs, and cycling specific clearance of inventory in the second half of last year.

Oboz is the company’s footwear division.

KMD’s Australian-traded shares last traded at 15.5 cents, valuing the company at $110.3 million.

The post KMD Brands shareholders to be stung with a hugely discounted capital raise appeared first on The Motley Fool Australia.

More reading

• What’s going on with KMD Brands shares?
• Trading halt, delayed results, and a capital raise: Why this ASX retail stock is under pressure
• Which ASX retail company just rejected a deal to buy its Rip Curl stores?

Motley Fool contributor Cameron England 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 lower the valuation of stocks go in April, the stronger the long-term returns could be. There are a few impressive ASX shares investments that could be excellent buys.

I think the best businesses to buy are ones that have strong compounding potential of the earnings. Some companies are already large and aren’t likely to grow earnings strongly, while others could multiply their own profit over the next several years.

I’m excited by the long-term trajectory of the investments below.

Nick Scali Ltd (ASX: NCK)

Nick Scali is a leading furniture retailer in Australia (and New Zealand) with a large store network. In recent years, it has acquired both Plush in Australia and Fabb Furniture in the UK, giving it more avenues for earnings growth.

The ASX share is exposed to consumer spending, so there are certainly cycles in how much demand there is for furniture. But, I think Nick Scali is one of the best operators in the furniture space, for example with its high return on equity (ROE) and strong gross profit margin.

I don’t know how consumer demand will perform in the next several months, but it’s clear that the Nick Scali share price is already down 35% this year. I think that the size of the decline makes this a great time to invest.

I’m particularly excited by the potential of the company to bring its Nick Scali products (and margins) to the UK business, expanding its UK store network, and paying a good dividend.

According to CMC Invest, the Nick Scali share price is currently trading at 17x FY26’s estimated earnings, at the time of writing.

Tuas Ltd (ASX: TUA)

I view Tuas as one of the most underrated ASX growth shares. I’m going to highlight a few exciting elements of the business.

Firstly, it’s a fast-growing Singaporean business which is rapidly gaining market share.

The company reported that in the first six months of FY26, revenue increased 26% to $91.9 million and underlying operating profit (EBITDA) climbed by 27%.

This revenue growth was largely driven by a 21.7% rise in the number of active mobile subscribers to 1.4 million. Broadband subscribers grew by approximately 32,000 to 46,133 as it started to gain traction.

Another big positive is that its underlying profit is improving, as shown by EBITDA margin increasing to 46%, up from 45%. That means each new revenue dollar this year is more profitable than last year, which bodes well for net profit growth to accelerate in the coming years.

I’m also excited by the potential of Tuas merging with M1, one of its main smaller rivals in Singapore, giving the business a significant boost in scale benefits and profit.

In five years, I think the ASX share could be a much bigger business as it wins more subscribers thanks to its focus on offering value. Additionally, expansion into another country by Tuas would significantly improve its growth prospects.

The post 2 incredible ASX shares to buy in April appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today
• Guess which ASX 200 telco stock is jumping 7% today
• Tuas half-year result: profit leaps as revenue and subscribers grow
• Where I’d invest $10,000 into ASX growth shares on this painful day for the stock market
• Why buying ASX shares in March could supercharge your wealth

Motley Fool contributor Tristan Harrison has positions in Tuas. 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 Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Collins Foods Ltd (ASX: CKF) shares are slipping today.

Shares in the S&P/ASX 300 Index (ASX: XKO) KFC fast food restaurant operator closed yesterday trading for $8.78. In early morning trade on Tuesday, shares are changing hands for $8.62 apiece, down 1.8%.

For some context, the ASX 300 is down 0.2% at this same time.

Here’s what’s happening.

Collins Food shares slide on Taco Bell divestment

Atop its KFC restaurants, the ASX 300 stock also operates 27 Taco Bell outlets in Australia.

But, as investors have been expecting, that era is coming to an end.

Collins Food shares are slipping today after the company announced it has entered into a legally binding conditional arrangement to transition 20 of its 27 Taco Bell restaurants to an affiliated company of Taco Bell (part of YUM! Brands) and Restaurant Brands Australia Holdings.

The two parties are expected to operate the Taco Bell business going forward under a new partnership arrangement. The deal also covers the restaurants’ employees, if they choose to accept offers of employment from the new owners.

The seven remaining Taco Bell restaurants will be closed over the next few weeks.

Collins Foods expects to incur one-off costs of $1 million to $2 million related to the closure of these seven restaurants.

The sale won’t offer a big cash boost for Collins Foods shares, with the company saying the purchase price comprises “a nominal amount” plus the value of stock and cash floats. The new owners will assume the lease liabilities for the 20 restaurants.

Following its Taco Bell divestment, however, Collins Foods said it can now focus on its core KFC brand. The ASX 300 stock has KFC outlets in Australia and Europe, with a particular growth focus in Germany.

What did management say?

Commenting on the divestment that’s yet to lift Collins Foods shares today, CEO Xavier Simonet said:

Collins Foods is pleased to announce the transition of 20 Taco Bell restaurants to the brand owner, Taco Bell, and its local partner, subject to completion of the proposed transaction. This will enable Collins Foods to focus on our core KFC business in Australia and Europe, including accelerating profitable development in Germany.

Simonet added, “We are committed to ensuring a smooth transition and to supporting all our team, whether transitioning or otherwise, through this process.”

Collins Food expects the sale to complete between June and August, depending on regulatory approval timelines and the purchasing parties finalising their terms.

With today’s intraday slide factored in, Collins Foods shares remain up a slender 0.5% since this time last year, not including dividends.

The post KFC owner Collins Foods shares sliding on Taco Bell exit 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 recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.