Author: openjargon

If you have a higher than average risk tolerance, then it could be worth checking out the ASX penny stock listed below.

Just over three years ago, this company was far from a penny stock with a share price over $15.00.

But a lot has happened since then for good and for bad, which leads us to today.

The ASX penny stock in question is sports betting company Pointsbet Holdings Ltd (ASX: PBH), which is currently changing hands for 47 cents.

Is this an ASX penny stock to buy?

The team at Bell Potter thinks that Pointsbet shares are a great option at current levels.

So much so, this morning it reiterated its buy rating on the company’s shares with a reduced price target of 63 cents.

It is worth noting that the reduction in its price target isn’t a downgrade per se. Rather, it reflects the company’s recent decision to return 39 cents per share in capital to shareholders following the completion of the sale of its US operations.

Based on the current Pointsbet share price, this new price target implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Bell Potter has been running the rule over the ASX penny stock following the sale of its US operations and believes the market is undervaluing its businesses. It explains:

We note that, at the current share price, the Australian and Canadian businesses combined are being valued at approximately $126m assuming cash of around $30m after the second capital distribution. In our view this is too low given we value the Australian business alone at $150m. A value of $126m for Australia – if we assume Canada is worth nothing – equates to an EBITDA multiple of c.8x based on our FY25 forecasts (after allocating a portion of corporate overheads). But obviously we believe Canada is worth something – as well as the Banach technology – so the actual multiple being applied to Australia is <8x.

The broker also believes that Pointsbet could be an attractive takeover target for one of its rivals. It adds:

We also believe PointsBet is a potential takeover target given the simplified structure (just Australia and Canada), the shift to cash flow/EBITDA positive, the sufficiently strong Balance Street, the proprietary technology and it being the fifth largest player in Australia. The market here is now relatively mature so in our view the only way to grow meaningfully is through consolidation and PointsBet is an obvious potential target.

The post 1 ASX penny stock to buy in May while it is still only 47 cents appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX stocks could rise 30% to 85%
• Why Aeris Resources, Mesoblast, Pointsbet, and Worley shares are sinking today
• Why are Pointsbet shares crashing 45% today?
• Why Argosy Minerals, Immutep, Pointsbet, and Regis Resources shares are racing higher
• 2 ASX betting shares surging on quarterly updates

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 PointsBet. 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.

There have been some really big winners among S&P/ASX 200 Index (ASX: XJO) stocks over the past few years.

Of the big gainers pack, one ASX 200 stock leaps to the forefront for me. Particularly as it’s involved in an unloved industry in a world moving towards decarbonisation.

Yet, as has been clearly demonstrated since Russia’s invasion of Ukraine, this “dirty’ industry remains vital for most nations that wish to keep their citizens’ lights on and their fridges cool during the lengthy global transition towards reliable and affordable cleaner energy.

And despite Australia’s own sustainable energy plans, global coal demand is booming, led by new coal-fired power plants in China. India and Japan are among the other populous nations rolling out new coal power plants.

Which brings us to ASX 200 coal stock Whitehaven Coal Ltd (ASX: WHC).

A 628% gain from this ASX 200 stock

One year ago today, on 7 May 2021, you could have snapped up Whitehaven shares for $1.27 apiece.

Meaning for $10,000 you could have bought 7,874 shares for this ASX 200 stock.

May 2021 also marked the beginning of a strong upward price trend for both thermal coal (primarily used for generating electricity) and coking coal (primarily used in steel manufacturing).

In May 2021 thermal coal was trading for around US$98 per tonne.

By September 2022 that same tonne was worth a record high of around US$440 per tonne.

This helped drive the ASX 200 stock to its own all-time highs at the time.

While the Whitehaven share price has retraced from those records, you’re unlikely to hear any long-term investors complaining.

At the time of writing on Tuesday afternoon, Whitehaven shares are swapping hands for $7.95 apiece.

That means the 7,874 shares you bought with your $10,000 investment three years ago are worth $62,598.30.

But wait.

Let’s not forget the dividends.

Adding in that passive income

There’s a good reason Whitehaven shares are popular among passive income investors.

Since March 2022 the ASX 200 stock has paid out a total of five dividend payments, all but one fully franked.

Adding them up and this equates to $1.29 in total dividend payouts you would have received if you bought the stock three years ago.

That’s assuming you spent those as they came in rather than reinvesting, which could have netted you even more gains.

So, adding those five dividend payouts to the $7.95 current Whitehaven share price and the total accumulated value of Whitehaven shares since May 2021 comes to $9.24 a share.

Meaning the 7,874 shares of this ASX 200 stock you bought three years ago today would now be worth a whopping $72,755.76!

The post 1 ASX 200 stock that turned $10,000 into $72,756 in just 3 years appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX coal shares higher despite major superannuation fund walking away
• Whitehaven share price up 20% in 5 weeks. Should you buy?
• 2 undervalued ASX 200 shares with ‘significant catalysts ahead’
• 1 ASX 200 energy stock with ‘minimal competition’ to buy right now
• Should ASX investors buy the dip in Whitehaven stock?

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.

Any concern about a more cautious tone from the Reserve Bank of Australia is being shrugged off by the S&P/ASX All Ordinaries Index (ASX: XAO) in afternoon trading. However, the odd ASX All Ords share is failing to catch the rising tide today.

One hapless company missing out on enthusiasm is Lindsay Australia Ltd (ASX: LAU). Shares in the transport and logistics operator are down 9% as investors respond to a fresh update from the company.

At the time of writing, Lindsay shares are swapping hands at 87 cents apiece. The steep fall means Lindsay shares are now at their lowest price in nearly 14 months, as shown in the chart above.

Wet weather weighs down guidance

Lindsay Australia achieved record results in what was dubbed a ‘transformative year’ for the company. In FY23, underlying EBITDA rose 50.2% to $90.3 million on the back of a $34.9 million uplift in EBITDA from its transport segment.

A little more recently, on 26 February, the company shared its first-half results for FY24. Within this report, the company said it was ‘on track’ to achieve around 13% underlying EBITDA growth from the prior financial year, pointing toward the lower end of a $102 million to $108 million range.

Today, the ASX All Ords share is getting scorched after sharing an update to its prior guidance.

As the update outlines, Lindsay Australia expects underlying EBITDA to land between $88 million and $94 million for the full financial year. At the midpoint, the revised guidance represents a 10.8% reduction from the lower bound of the prior estimate.

Why the change? There are a few factors that have sent Lindsay off track.

Firstly, ‘significant and persistent’ rainfall put a dent in horticultural output in the second half. Secondly, Lindsay Australia has faced numerous disruptions to its rail operations, the worst of which involved a four-week stoppage in March that extended into April.

Lastly, the company has suffered impacts on its ‘operational efficiency and utilisation’ from freight flow disruptions.

The team at Lindsay Australia anticipated an improvement in conditions. However, a rebound in volumes has failed to materialise post-Easter.

Is there a bright side for the ASX All Ords share?

There still might be a positive takeaway from today’s update.

The issues impacting earnings estimates were described as ‘short-term challenges’. That’s music to the ears of a long-term investor, if true.

Moreover, the longer-term view was painted as a positive one. For example, high soil moisture could help boost horticultural volumes moving forward. Migration and population growth were also earmarked as drivers for the refrigerated logistics segment.

While prone to recency bias, it’s worth remembering this little ASX All Ords share is up 143% over the last five years.

The post Why this ASX All Ords share is dumping 9% on earnings outlook appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Graincorp, Lindsay Australia, NAB, and Sims shares are sinking today
• 2 cheap ASX shares that offer at least 9% dividend yields

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

Liontown Resources Ltd (ASX: LTR) shares are having a positive session on Tuesday.

In afternoon trade, the lithium developer’s shares are up over 1% to $1.25.

This means that the company’s shares are now up almost 15% over the last two weeks.

Should you follow suit and pick up the lithium stock right now? Let’s see what one leading analyst is saying.

Are Liontown shares worth buying?

According to a note out of Bell Potter, its team made a visit to the company’s Kathleen Valley Lithium Project last week and was pleased with what it saw. The broker commented:

The visit highlighted various strategies implemented to reduce commissioning, ramp-up and ongoing operational risks. These strategies cut across mining ramp-up, plant design and applying learnings from extensive feasibility works and other prominent lithium operations in Western Australia. First production is on schedule for mid-2024.

Bell Potter notes that the company is de-risking its ore supply and processing plant ramp-up. It explains:

The open pit should supply 3Mt ore by the end of 2025, substantially de-risking ore delivery to the processing plant ahead of underground mining ramp-up. Around 160kt ore has been stockpiled to date, with around 300kt of plant feed expected to be available by start-up in mid-2024. Open pit mining rates lift materially this September-October as the thick flat-lying North-West Flats orebody is reached.

In light of the above, the broker remains very positive on Liontown and its shares. The note reveals that its analysts have reaffirmed their speculative buy rating and $1.85 price target on them.

Based on the latest Liontown share price of $1.25, this implies potential upside of 48% for investors over the next 12 months.

Though, it is worth highlighting that its speculative rating means that this may be an investment that is only suitable for investors with a high tolerance for risk.

Why is the broker bullish?

Bell Potter thinks that the Kathleen Valley Lithium Project is a very attractive asset. It also notes that the company’s balance sheet is strong and expected to support Liontown through to positive cash flow. It concludes:

LTR’s 100% owned KV lithium project remains highly strategic in terms of its stage of development, long mine life and location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). The project is on track for first production from mid-2024. Under our modelled assumptions which includes the draw-down of the $550m debt package and repayment of Ford debt, we expect that LTR is fully funded to free cash flow. LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.

The post Are Liontown shares worth buying right now? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares
• Why did Liontown Resources shares smash the market in April?
• Top brokers name 3 ASX shares to buy today
• Why Liontown shares could rise 50%
• 5 things to watch on the ASX 200 on Wednesday

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 S&P/ASX 200 Index (ASX: XJO) is having a good session on Tuesday. In afternoon trade, the benchmark index is up 0.8% to 7,745.7 points.

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

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is up 7% to $9.96. Investors have been buying this energy company’s shares after it upgraded its earnings guidance for FY 2024. According to the release, AGL now expects its underlying EBITDA to be between $2,120 million and $2,200 million. This compares to its previous guidance of $2,025 million and $2,175 million. This represents a sizeable 56% to 61.5% increase on FY 2023’s underlying EBITDA of $1,361 million. Management advised that the update to its guidance reflects the continued strong operational and financial performance of the business since the half year results.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is up 6% to $6.85. This appears to have been driven by the release of a presentation ahead of the diversified alternative asset manager’s appearance at the 2024 Macquarie Australia Conference. In addition, the company announced that the Hon. Julia Gillard AC has agreed to Chair HMC’s Energy Transition Fund. She said: “I am excited and honoured to be appointed Chair of HMC’s Energy Transition Fund. Its design and HMC’s investment management capabilities will position the Fund to be a genuine driver of Australia’s transition to zero net carbon by 2050.”

Megaport Ltd (ASX: MP1)

The Megaport share price is up over 4% to $14.49. Investors have been buying ASX tech stocks today following another strong night for their US peers on Wall Street. In addition, the team at Citi has just reaffirmed its buy rating on the network solutions company’s shares with a $16.05 price target. This implies potential upside of approximately 11% for investors from current levels. The broker remains positive despite a softer than expected performance during the third quarter.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is up almost 11% to 87.5 cents. This morning, this lithium developer announced the discovery of a new high-grade zone at the CV13 spodumene pegmatite at the Corvette project in Canada. The CV13 spodumene pegmatite is located approximately 3 km west-southwest of the CV5 spodumene pegmatite, which hosts a maiden mineral resource estimate of 109.2 Mt at 1.42% Li2O inferred.

The post Why AGL, HMC Capital, Megaport, and Patriot Battery Metals shares are racing higher appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• One ASX 200 stock that just upgraded earnings guidance (and one that downgraded)
• Down 24% since July, are AGL shares a cheap buy?
• Here are the top 10 ASX 200 shares today
• 4 ASX shares exposed to the ‘largest technological change ever seen’
• Here’s how I’d aim for a tonne of passive income from $20,000 in an ASX share portfolio

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords copper stocks are having a great run as the commodity price surges on the back of low supply and rising demand.

The copper price rose to a two-year high of US$4.70 per pound late last month.

As shown below, the red metal has been rising since early February and is now up 19% in the year to date.

ASX copper stocks rise on commodity price gains

The rising commodity price has given many ASX copper stocks a bump.

In the year to date:  

• Aeris Resources Ltd (ASX: AIS) shares are up 80%
• WA1 Resources Ltd (ASX: WA1) shares are up 43%
• Sandfire Resources Ltd (ASX: SFR) shares are up 33%
• FireFly Metals Ltd (ASX: FFM) shares are up 28%

Why is demand for copper rising?

Copper played a foundational role when the world first embraced electrification back in the 1880s.

The red metal is an excellent electricity conductor. Back then, it was used to make wires and pipes for water and sewage systems, to manufacture telephones, and to power expanding railway networks.

Today, the red metal is poised to once again play a key role in electrification mark II, or in other words, the green energy transition.

Electric vehicles, wind turbines, solar energy systems, and data centres all need copper.

Global copper supplies are currently constrained.

Trading Economics explains why:

Cobre Panama, the world’s largest open-pit copper mine was suspended, while power cuts in Zambia hit key mines.

The difficulty in securing supplies and lower margins for smelters in China resulted in a potential cutback of 10% in this year’s output.

Broker says buy this small-cap ASX copper stock

If you want to get in on the copper action, Tom Bleakley from BW Equities has a recommendation.

He’s got a buy rating on ASX All Ords copper stock, FireFly Metals.

Bleakley explains on The Bull:

FireFly is a copper explorer and developer. The company’s Green Bay Copper-Gold project is in Newfoundland, Canada. Exploration has revealed high grade copper mineralisation at depth.

The broker said copper demand would rise over the next decade and “FireFly offers good exposure to a rising copper price”.

Firefly Metals is a small-cap ASX copper stock with a market capitalisation of $365 million.

The Firefly Metals share price is 83 cents at the time of writing, up 2.48% on Tuesday.

The big miners expand their copper exposure

Major ASX 200 miners are also expanding their investment into the copper space.

BHP Group Ltd (ASX: BHP) bought out ASX copper pure-play stock Oz Minerals last year for $9.6 billion.

And just last month, the ‘Big Australian’ made a play for Anglo American plc (LSE: AAL) via a non-binding, all-scrip offer worth 31.1 billion pounds (about A$60 billion).

As my colleague James reported at the time, BHP appeared motivated to buy Anglo American for its copper assets.

If the deal had gone ahead, BHP would have become the largest copper miner in the world, producing about 10% of global output.

Rio Tinto Ltd (ASX: RIO), which began life as a copper miner in 1873, is also increasing its exposure to copper.

The post Buy this ASX All Ords stock for ‘good exposure to a rising copper price’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Graincorp, Lindsay Australia, NAB, and Sims shares are sinking today
• This ASX 200 real estate stock has been flying ahead of tomorrow’s key update. Should you buy?
• Are CBA shares a buy or a sell ahead of Thursday’s update?
• Hunting for passive income? Here’s everything you need to know about the boosted ANZ dividend
• Why Pilbara Minerals shares are a buy for this lithium short seller

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.7% to 7,734.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are rising:

Graincorp Ltd (ASX: GNC)

The Graincorp share price is down a further 3.5% to $7.83. Investors have been selling this grain exporter’s shares this week after it downgraded its earnings guidance for FY 2024. GrainCorp now expects to report FY 2024 underlying EBITDA in the range of $250 million to $280 million. This is down from its previous guidance range of $270 million to $310 million. In addition, it expects underlying net profit after tax to be $60 million to $80 million. This is down from its previous guidance of $65 million to $95 million. A recent deterioration in trading conditions is to blame.

Lindsay Australia Ltd (ASX: LAU)

The Lindsay Australia share price is down almost 8% to 88 cents. This follows the release of a trading update from the logistics company this morning. Lindsay Australia advised that it expects underlying EBITDA to be between $88 million and $94 million in FY 2024. This is below expectations due to lower horticultural volumes because of wet weather, multiple rail disruptions, and disrupted freight flows and volumes impacting operational efficiency and utilisation.

National Australia Bank Ltd (ASX: NAB)

The National Australia Bank share price is down 2.5% to $33.79. This has been driven by the banking giant’s shares going ex-dividend this morning for its latest payout. Last week, the big four bank released its half-year results and declared a fully franked interim dividend of 84 cents per share. Eligible shareholders can now look forward to receiving this dividend in their bank accounts when it is paid in just under two months on 3 July.

Sims Ltd (ASX: SGM)

The Sims share price is down 5% to $11.20. Investors have been hitting the sell button today after the scrap metal company downgraded its earnings guidance for FY 2024. Management advised that ongoing market challenges have continued across the industry. This has seen its SA Recycling and ANZ Metal businesses face increased challenges compared to the first half. As a result, the company advised that its second-half underlying EBIT will be marginally lower than the first half. This compares to its previous guidance for underlying EBIT “to improve in H2 FY24 compared to HY1 FY24.”

The post Why Graincorp, Lindsay Australia, NAB, and Sims shares are sinking today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• One ASX 200 stock that just upgraded earnings guidance (and one that downgraded)
• Why is the NAB share price sinking today?
• 5 things to watch on the ASX 200 on Tuesday
• Why Block, Graincorp, Spark, and Tourism Holdings shares are sinking today
• What you need to do to secure the next NAB dividend

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