Category: Stock Market

One of the many joys of investing in the share market is being able to own a piece of a company you know and love. It’s a great feeling buying a much-loved product or service, knowing that you also have a stake in the company that is making it. Not to mention the earnings it will receive from your purchase. One could call it the circle of life of the investing world.

But here in Australia, we don’t have the same opportunities of participating in this circle as some of the larger economies of the world.

For example, over in the United States, you can buy an iPhone, have a Coke, or purchase something on Amazon with the full ability to own a chunk of the companies that are providing these goods and services.

The ASX has its downsides…

But here in Australia, I doubt that too many customers of our largest companies would have such a level of affinity. When was the last time you heard someone describe their love of Telstra Corporation Ltd (ASX: TLS)? Or BHP Group Ltd (ASX: BHP)?

Most Australians probably don’t even have a firm grasp of what CSL Limited (ASX: CSL) does. And bashing banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) is something of a national sport.

Luckily, there is still a way for ASX investors to own shares (albeit indirectly) of the likes of Apple Inc (NASDAQ: AAPL), Coca-Cola Co (NYSE: KO) and Amazon.com Inc (NASDAQ: AMZN). It’s using exchange-traded funds (ETFs), of course.

ETFs work by grouping large baskets of shares together under one investment. By purchasing units of the iShares S&P 500 ETF (ASX: IVV) for example, you are getting a small piece of Amazon, Apple and Coca-Cola, all in one package.

Investing in what you love… with ETFs

But what if one of your favourite companies isn’t listed in the United States? That’s a conundrum I am personally facing.

One of my favourite companies in the world is Nintendo Co Ltd (TYO: 7974). If you’re unaware, Nintendo is one of the world’s largest gaming companies. It makes home consoles such as the Wii and Switch. But it also (in my opinion) owns some of the world’s most valuable intellectual property.

Have you heard of Mario and Luigi? Princess Peach and Bowser? All are video game characters owned by Nintendo. What about Pikachu? Pokemon is also a Nintendo franchise.

These characters have been delighting both children and adults for decades now.

How I plan to buy one of my favourite stocks in the world with an ASX ETF

Pick anyone under a certain age, and it’s likely that one or more of these video game characters played a formative role in their childhoods. That includes this writer. As such, I regard Nintendo as having some of the most valuable entertainment-related intellectual property in the world. Perhaps only rivalled by the likes of Walt Disney Co (NYSE: DIS).

I happen to love using Nintendo products and would love to share in that commercial prosperity as a part-owner of this company. But Nintendo is listed on the Tokyo Stock Exchange in Japan. As such, is a rather difficult company to invest in from Australia.

But luckily, there is an ASX ETF for that.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) is a fund that, according to the provider, seeks to give investors acute exposure to “a diversified portfolio of the largest and most liquid companies involved in video game development, esports and related hardware and software globally”.

One of those companies just happens to be Nintendo. As it currently stands, Nintendo stock is the sixth-largest company in this ETF’s portfolio. It accounts for approximately 5.2% of the total weighted holdings.

Foolish takeaway

So I’m planning on buying this ETF in 2023 so I can get some exposure to one of my all-time favourite companies. It’s a perfect example of the wonders of modern investing – such an endeavour would have been almost impossible for an Australian even 15 years ago.

 

The post Here’s how I’ll use this ASX ETF to invest in my favourite stock appeared first on The Motley Fool Australia.

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More reading

• 2 great ETFs for ASX investors to buy now
• Top ASX ETFs to buy in April 2023
• 2 high quality ETFs for ASX investors in April
• Down over 25% from the peak, can these 2 ASX tech ETFs deliver big returns by 2025?

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 Sebastian Bowen has positions in Amazon.com, Apple, Coca-Cola, Telstra Group, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, CSL, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo and has recommended the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF, Amazon.com, Apple, Walt Disney, Westpac Banking, and iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for the secret to wealth accumulation? If you are, then look no further than legendary investor, Warren Buffett.

Over many decades, the Berkshire Hathaway (NYSE: BRK.B) leader has amassed a US$100+ billion fortune through his simple investment strategies and disciplined approach to the share market.

In light of this, by following some of the Oracle of Omaha’s timeless advice, you could also become rich in the future.

Buffett’s advice

Firstly, when it comes to investing, Buffett advises that you “never invest in a business you cannot understand.”

Sure, it could be exciting investing in some hot new tech company promising to change the world, but very few will actually achieve their aspirations.

Unless you know the business model and competitive landscape thoroughly, this is just the same as gambling. The likely outcome is that you will lose your money by speculating on these types of ASX shares. So, stick to what you understand, as this will help you make informed investment decisions.

Competitive advantages

Another key to Buffett’s success has been his focus on companies with sustainable competitive advantages and fair valuations. In his 1995 letter to shareholders, he quipped:

In business, I look for economic castles protected by unbreachable moats.

But it is also important to understand what is driving that moat and how sustainable it is before committing to an investment. He adds:

We are trying to figure out what is keeping — why is that castle still standing? And what’s going to keep it standing or cause it not to be standing five, 10, 20 years from now. What are the key factors? And how permanent are they? How much do they depend on the genius of the lord in the castle?

If that sort of research sounds too time-consuming, don’t worry. That’s because there’s an ETF that has been set up to replicate Buffett’s investment style – Vaneck Morningstar Wide Moat ETF (ASX: MOAT).

Think long term

Finally, unless you win the lottery, wealth isn’t generated overnight. It will take time and discipline to become rich with ASX shares.

Buffett’s approach to investing is heavily focused on the long-term. He believes that investors should buy shares with the intention of holding them for decades, not just for a few months or years. This mindset allows investors to ride out market fluctuations and benefit from the power of compounding. He once said:

Our favourite holding period is forever.

It certainly could pay (literally) to listen to Warren Buffett’s advice on this. For example, ASX shares have generated an average total return of 9.6% per annum over the last 30 years.

This means that if you had invested $500 a month or $6,000 a year into ASX shares during this time and earned the market return, you would have grown your portfolio to $1 million. And if you doubled your investment to $1,000 a month or $12,000 a year, the value of your portfolio would also have doubled to $2 million.

And while we can’t say what will happen in the future, these returns are in line with historical averages. So, it wouldn’t be unreasonable to hope for similar over the next 30 years.

A final word

Let’s close this out now with another key piece of advice from the Oracle of Omaha in relation to not being put off by the inevitable bad investment that happens from time to time. He said:

The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.

The post How to get rich by following Warren Buffett’s advice appeared first on The Motley Fool Australia.

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More reading

• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• 3 ETFs that could be top buys right now
• Forget term deposits and listen to Warren Buffett’s advice
• 3 ASX ETFs I’d buy and hold for 10 years
• Need passive income? Turn $6,000 into $100 every month

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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) closed the week in the red, falling 0.43% in Friday’s session to close at 7,330.4 points. That leaves it 0.42% lower than it was this time last week.

Weighing the index down today were its two largest sectors.

The S&P/ASX 200 Materials Index (ASX: XMJ) slumped 1.5% with the iron ore majors – Rio Tinto Ltd (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP) – among those posting the biggest falls.

Meanwhile, the S&P/ASX 200 Financials Index (ASX: FMG) dropped 0.7%, dragged down by the Bank of Queensland Ltd (ASX: BOQ) share price’s 5% tumble.

Though, not all was dire on the Aussie bourse. The S&P/ASX 200 Health Care Index (ASX: XHJ) and the S&P/ASX 200 Industrials Index (ASX: XNJ) both lifted 0.6%.

And on that note, let’s take a look at the ASX 200 stocks outperforming all others on Friday.

Top 10 ASX 200 shares countdown

Taking out the top spot on the index today was the Whitehaven Coal Ltd (ASX: WHC) share price – gaining 6% to close at $7.38.

The coal miner dropped its quarterly production report this morning, detailing a fall in production and coal prices.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Whitehaven Coal Ltd (ASX: WHC)	$7.38	5.88%
Boral Limited (ASX: BLD)	$4.13	5.63%
Lynas Rare Earths Ltd (ASX: LYC)	$6.84	4.75%
Pilbara Minerals Ltd (ASX: PLS)	$4.02	3.34%
Seven Group Holdings Ltd (ASX: SVW)	$23.40	2.68%
Sayona Mining Ltd (ASX: SYA)	$0.20	2.56%
Capricorn Metals Ltd (ASX: CMM)	$4.45	2.53%
New Hope Corporation Limited (ASX: NHC)	$5.33	2.3%
Lendlease Group (ASX: LLC)	$7.76	2.24%
Telix Pharmaceuticals Ltd (ASX: TLX)	$10.00	2.15%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Link, Lynas, Telix, and Whitehaven Coal shares are pushing higher today
• Lynas share price gains despite quarterly revenue taking a 28% dive
• Whitehaven share price lifts as production tumbles 12%
• How to mine $100 a month in passive income from 2 ASX 200 coal stocks

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

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Owners of Telstra Group Ltd (ASX: TLS) shares are likely all over the company’s earnings and dividends. But there’s a lot more going on at the telco when you scratch the surface.

From partnering with an S&P/ASX 200 Index (ASX: XJO) banking giant, investing in a cybersecurity start-up, and receiving a stern warning from regulators, there’s plenty that investors might have missed.

Let’s delve into three notable happenings shareholders might have missed in the last 30 days.

3 recent happenings owners of Telstra shares may have missed

Teaming up with CBA

Telstra and banking goliath Commonwealth Bank of Australia (ASX: CBA) joined forces late last month to protect customers from phone scams.

Their pilot project, named Scam Indicator, will use a Telstra application programming interface (API) to allow CBA to check if a customer is on a phone call ­– a major scam indicator.

Simulations suggest Scam Indicator has the potential to mitigate between $15 million and $20 million of customer losses. It’s expected to be made available to customers of both Telstra and CBA later this year.

Venturing into cybersecurity

Next came news of the ASX 200 telco’s venture capital leg, Telstra Ventures.

It jumped on board a capital raise, investing in artificial intelligence (AI)-powered cybersecurity start-up Safe Security.

The software-as-a-service provider has grown at a rate of more than 200% for three years now, but that’s just the start, according to CEO and co-founder Saket Modi, who said:

Tailwinds from regulators, cyber insurance, and boards to understand and quantify cyber risk in an aggregated and granular manner are propelling Safe into this exponential growth phase.

Regulator’s wrath

Finally, some not-so-good news for Telstra might have been missed by those holdings its shares. The company was issued a formal warning from the Australian Communications and Media Authority (ACMA) this week.

The watchdog found the company breached consumer protection laws when it cut or suspended services to more than 5,400 customers without providing proper notice.

A Telstra spokesperson said the telco self-reported the issue – caused by a now-corrected error – to the regulator last year, explaining:

We quickly identified a system error that meant customers without an email address on credit management didn’t receive a letter letting them know that their service would be restricted unless payment was made.

ACMA chair Nerida O’Loughlin said customers were likely left with “significant additional stress” during times of hardship as a result of the error.

Telstra share price snapshot

The Telstra share price has gained 3.2% over the last 30 days to close Friday’s session down 0.12% at $4.28. It’s also lifted 5.8% over the last 12 months.

Comparatively, the ASX 200 has lifted 5% over the last month and fallen 3% since this time last year.

The post Own Telstra shares? Here are 3 things you might have missed in the last 30 days appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Buy Qantas and this blue chip ASX 200 share: analysts
• No savings at 40? I’d invest $5 a day in ASX shares for passive income of $7,800 a year
• Why I think Telstra shares could be a top buy for passive income in 2023 and beyond

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

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It’s really depressing for shareholders to watch a high-quality ASX 200 share going down, down, down after hitting an exciting historical peak.

But that’s what’s been happening for James Hardie Industries plc (ASX: JHX) investors since early 2022.

The building materials supplier hit a historically high price of $58.07 on 8 December 2021.

Over the previous two years, the ASX materials share had returned an outstanding 97% capital gain.

Today, the James Hardie share price hit an intraday high of $34.60.

That’s well off its all-time high, but it’s an 11.4% improvement over the past four weeks.

So, has the tide turned?

What’s driving this ASX 200 share higher of late?

James Hardie hasn’t released any price-sensitive news since 3 March, when it announced it had been removed from the ASX 200 due to its falling share price.

However, brokers have been saying since the start of 2023 that James Hardie has been oversold.

Two reasons for the share price decline were rising inflation and interest rates, both of which hurt the housing markets in Australia and also the United States, where James Hardie has a significant business.

On top of that, global supply chain disruptions have caused many delays in housing construction activity.

Bureau of Statistics data released this month shows a 15% decline in new home builds and a 34% decline in apartment builds.

Master Builders Australia chief economist Shane Garrett says there now are fewer new projects in the pipeline.

All of this led to James Hardie reducing its guidance for FY23 when it released its Q3 FY23 results in February.

However, inflation has turned a corner and is easing off in both Australia and the US.

Australia has also paused its interest rate hikes, and the latest data from CoreLogic points to a stabilisation in house prices.

So, are investors returning to James Hardie shares because they look like a bargain with gathering tailwinds?

What do the experts say?

Back in February, after James Hardie reduced its FY23 guidance, top broker Citi said the ASX 200 share was “close to an inflection”.

Citi analyst Samuel Seow said:

Following a weaker than expected result, we believe the market will be looking for the last downgrade and we think this could be it.

Ironically, we see [the Q3] result as a buying event, and the total shareholder return outlook should be positive from here.

The James Hardie share price closed at $31 that day.

Seow said the company was “attractive”, trading on an FY24 “trough earnings” multiple of 19 times.

Seow cited increased US mortgage applications and the 30-year fixed rate “appearing to settle” as tailwinds for the ASX 200 share.

Citi maintained its buy rating but lowered its 12-month share price target by 6.5% to $34.60. Funnily enough, that’s the intraday high James Hardie shares reached today.

Are ASX 200 share investors listening?

Also in February, Baker Young managed portfolio analyst Toby Grimm said James Hardie could only move up from here.

Grimm said:

With US interest rates likely to peak during the first half of calendar year 2023, we see potential for a share price recovery later this year.

In our view, the shares offer long-term value at current levels.

At the time, 11 out of 16 analysts on CMC Markets recommended buying the ASX 200 share. Ten of them rated it a strong buy.

Also, fund manager L1 Capital said the ASX 200 share could “grow at an above-market rate for many years to come”.

Last month, Goldman Sachs said James Hardie was one of several ASX 200 shares flying under the radar.

Goldman gave James Hardie a buy rating and a 12-month share price target of $39.50.

It highlighted that its “share price is implying an EBIT of US$681m vs GSe FY24e of US$716m.”

Today, Wilsons equity strategist Rob Crookston says James Hardie is “an attractive investment at this juncture“.

Crookston explains:

There are strong structural tailwinds behind the US and Australian housing markets.

We think James Hardie is well placed to take advantage of market softness to strengthen its market position and drive further profitable volume share gains.

James Hardie currently trades on a price-to-earnings ratio (PE) of 17x, which is 1 standard deviation below its 10-year average.

James Hardie will announce its Q4 FY23 results before the market open on 16 May.

The post Which ASX 200 share has quietly risen 11% in a month? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Passive income plan: I’d invest $100 a week in ASX 200 shares to earn $7,500 of annual dividends
• Lynas share price gains despite quarterly revenue taking a 28% dive
• 5 things to watch on the ASX 200 on Friday
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. At the time of writing, the benchmark index is down 0.4% to 7,331.9 points.

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

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 5% to $6.05. Investors have been selling this regional bank’s shares after a few brokers responded negatively to its half-year results. One of those was Morgan Stanley, which has downgraded the bank’s shares to an underweight rating with a $6.00 price target.

Lithium Power International Ltd (ASX: LPI)

The Lithium Power share price is down 16% to 33 cents. This appears to have been driven by news that Chile plans to nationalise its lithium industry to create a state-owned lithium company. This could potentially mean that control of Lithium Power’s Maricunga Lithium Brine Project in Chile is transferred to the government.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is down almost 5% to 80 cents. This is despite the company releasing an update on the definitive feasibility study (DFS) for the Tennessee Lithium Project. The DFS affirmed the potential for Piedmont Lithium to develop an American-based lithium hydroxide business.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 3% to $116.97. This may be due to a lukewarm response to the miner’s quarterly update from brokers. For example, analysts at Morgans responded by retaining their hold rating and trimming their price target to $116.00. Over at UBS, its analysts retained their sell rating and $95.00 price target. Whereas Macquarie held firm with its neutral rating with a slightly reduced price target of $122.00.

The post Why Bank of Queensland, Lithium Power, Piedmont Lithium, and Rio Tinto are falling appeared first on The Motley Fool Australia.

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More reading

• Why is the Piedmont Lithium share price tumbling today?
• Goldman Sachs says the Rio Tinto share price is ‘compelling value’ after Q1 update
• ASX 200 mining shares sink as iron ore price nears 2023 low
• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
• Why Bank of Queensland, Link, Silk Laser, and Zip shares are pushing higher

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

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The S&P/ASX 200 Index (ASX: XJO) looks like it is heading for a disappointing end to the trading week at this point of Friday’s session. After what has been a bit of a bumpy week, the ASX 200 has taken a turn for the worse today, with the index presently down by 0.4% at just over 7,332 points.

But rather than dwelling on that as we start the weekend, let’s now take stock of the ASX 200 shares that are topping the share market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Telstra Group Ltd (ASX: TLS)

The first ASX 200 share up today is the famous blue chip, Telstra Group. So far today, a hefty 15.97 million of this telco‘s shares have been bought and sold on the markets. There continues to be a lack of news out of Telstra over April so far.

So this volume looks like a consequence of the movements of Telstra shares themselves today. Telstra has indeed had a bit of a wild session. The company opened at $4.28 a share this morning but quickly dropped to $4.23 after opening. The company has recovered somewhat since, but it is still down by 0.23% at $4.27 a share. This bouncy showing probably explains this high trading volume.

Sayona Mining Ltd (ASX: SYA)

Next, we have ASX 200 lithium share Sayona Mining to consider. At this point of the session, a sizeable 16.72 million Sayona shares have been swapped on the share market so far. This appears to be a result of the significant volatility Sayona has displayed today.

The company is currently flat at 20 cents a share. But this morning, Sayona dipped down to 19 cents, a fall worth more than 2.5%, before recovering to back where it started. No wonder so many shares have been flying around.

Pilbara Minerals Ltd (ASX: PLS)

Our third, final and most traded ASX 200 share this Friday is another lithium stock in Pilbara Minerals. A whopping 23.61 million Pilbara shares have been exchanged on the ASX in today’s trading thus far. Once more, we have heard zip out of this lithium leader today. So the elevated trading volumes on display here again appear to stem from the movements of the company’s shares themselves.

Pilbara has also had a highly volatile trading day. After opening at $3.89 a share this morning, Pilbara promptly plunged to $3.75 soon after (down almost 3%). But we have another remarkable recovery here, with Pilbara presently back up to $3.90 a share, up 0.51% on yesterday’s close. This volatile training almost certainly explains why so many Pilbara shares have been bought and sold this Friday.

The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

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More reading

• Passive income plan: I’d invest $100 a week in ASX 200 shares to earn $7,500 of annual dividends
• Lynas share price gains despite quarterly revenue taking a 28% dive
• 5 things to watch on the ASX 200 on Friday
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in Telstra 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is on course to end the week with a decline. In afternoon trade, the benchmark index is down 0.4% to 7,335.4 points.

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

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is up 2.5% to $2.19. This morning, analysts at Citi upgraded this administration services company’s shares to a buy rating with a $2.45 price target. The broker was pleased with news that Link has agreed a deal to sell its LFS business to Waystone and settle with the FCA. Citi feels this is a big positive and has been surprised by the market’s muted response.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is up 5% to $6.86. This follows the release of the rare earths producer’s quarterly update. Lynas reported a 9% quarter on quarter increase in sales revenue to $237.1 million. This was underpinned by strong neodymium and praseodymium (NdPr) production.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up almost 2% to $9.99. Investors have been buying this pharmaceutical company’s shares this week following the release of its quarterly update. Telix reported first quarter revenue of $100.1 million, which was up from $3.7 million a year earlier and 27% from $79 million in the fourth quarter of FY 2022.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 6% to $7.38. This has been driven by the release of the coal miner’s quarterly update. As expected, Whitehaven Coal reported a 12% reduction in production to 4.3 million tonnes and a 24% decline in its average coal price. The company also maintained its recently revised guidance for FY 2023.

The post Why Link, Lynas, Telix, and Whitehaven Coal shares are pushing higher today appeared first on The Motley Fool Australia.

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More reading

• Lynas share price gains despite quarterly revenue taking a 28% dive
• Whitehaven share price lifts as production tumbles 12%
• How to mine $100 a month in passive income from 2 ASX 200 coal stocks
• Here are the top 10 ASX 200 shares today
• Why Bank of Queensland, Link, Silk Laser, and Zip shares are pushing higher

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lake Resources NL (ASX: LKE) share price has tumbled 80% over the past 12 months.

The ASX lithium share is currently trading at 46 cents, which is a 78.7% decline over the year.

By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is down 4.5% over the year.

But things could be turning around following Lake Resources’ announcement that its environmentally-friendly direct lithium extraction (DLE) technology process “has now been proven” to work.

This at least partly debunks one of the claims made by a United States short seller in July last year.

Lake Resources share price stabilises in April

On 3 April, Lake Resources told the market about a potentially game-changing development in its evolution from a lithium explorer to a clean lithium producer.

Since that day, the Lake Resources share price appears to be stabilised. It is currently trading at 45 cents, which is the same level it closed at on Friday, 31 March, ahead of the Monday announcement.

Could this be the beginning of the end of this ASX lithium share’s depressing 12-month decline?

A painful year for investors

It’s been a rough road for Lake Resources shareholders since the company’s troubles began in April 2022.

Let’s do a quick recap.

On 5 April 2022, the Lake Resources share price hit an all-time high of $2.65. For investors who bought in at 7 cents in early 2021 when global lithium prices began their massive upswing, this was an incredible 3,685% capital gain. Yee-hah!

Then began the fall.

On 20 June 2022, Lake Resources announced the shock resignation of its CEO Steve Promnitz, in a seemingly acrimonious split. Promnitz sold his 10.2 million shares the next day.

There was also commentary swirling about overly optimistic demand projections for lithium.

These two factors, along with the 150% gain in the Lake Resources share price between February and April, led to it making its debut as one of the top 10 most shorted ASX shares on the market in July.

The short interest at the time was 8.9%.

Then came another enormous hit. US short seller J Capital published a report with a series of claims against Lake Resources.

What did the short seller claim?

J Capital listed a number of concerns, one of them pertaining to the DLE technology provided by Lake Resources’ technology partner, Lilac Solutions.

A bit of background here.

Lake Resources has long sought to separate itself from other lithium producers by marketing itself as a “clean lithium developer” due to its use of DLE technology to produce greener lithium.

Lake Resources says the ion exchange extraction technology will deliver high-purity battery materials (desirable for enhanced performance) and lithium carbonate with a lower carbon footprint.

In short, they reckon their lithium is cleaner and greener than any other producers’ lithium, thereby potentially making Lake Resources more appealing to ESG-focused customers and investors.

But J Capital analysts weren’t convinced the technology would work as planned, commenting:

Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…]

We believe, however, DLE will still use large amounts of water and produce toxic waste.

Lake has failed to get an operational pilot plant on site three years after promising it would. Investors still have no evidence that the Lilac DLE technology works at scale and if so at what cost.

Lake Resources went into a trading halt and then responded, saying the report “puts forth incorrect information on technical matters and inaccurate assertions on Lake Resources’ progress to date”.

The Lake Resources share price recovered slightly over the next month to reach $1.595 on 11 August.

But then it lost momentum, and a long downward spiral ensued.

Good news at last for the ASX lithium share

On 3 April, Lake Resources announced independent verification of above 99.8% grades and purity for lithium carbonate that was converted from 40,000 litres of lithium chloride produced at its flagship Kachi Project in Argentina using the DLE technology.

Lake Resources CEO David Dickson said the results proved the DLE process worked.

This is a new process that has now been proven to produce high grade lithium in our ‘mining and
refining’ facility – this means a critical part of the value adding chain is being captured by Lake.

It also sets a new standard for what it means to be a responsible member of the lithium supply chain.

In its statement, the company said Project Kachi was “poised to lead the industry in the production of high-quality lithium with minimal environmental footprint”.

Lake Resources elaborated:

This test, performed by Saltworks with independent analysis by two third party labs, validates the
major commercial process systems for the Kachi Project and confirms its ability to produce high-quality, battery-grade lithium carbonate from Lake’s brine resource using Lilac DLE technology.

The quality of the Li2CO3 product from the Saltworks test exceeds the Project Design Specification and
the battery grade specifications of major South American brine lithium producers.

Kachi ‘on track’ for commercial-scale development

On Monday, Lake Resources announced another “major milestone” for Kachi with first production of 2,500kg of lithium carbonate equivalents (LCE).

The company said it was a “historic advancement in lithium production technology”.

The company said:

The project is now on track to move from its pilot phase into commercial-scale development, which will make it the first lithium brine project in South America to produce lithium at commercial scale without the use of evaporation ponds for lithium concentration.

This is the first successful implementation of ion exchange for lithium production in South America, home to most of the world’s lithium brine resources.

The 2,500 kg of LCEs was extracted at Kachi with … 1,000x less land compared with evaporation ponds, and 10x less water compared with conventional aluminum-based absorbents.

In a joint statement from Lilac and Lake Resources, the two company CEOs commented:

Today, we’ve proven that it is possible to produce high-purity lithium faster and without evaporation ponds – all while protecting surrounding communities and ecosystems.

Is Lake Resources a buy at today’s share price?

As we covered last month, Bell Potter thinks the Lake Resources share price could grow five-fold in the next year. At the time, the broker had a speculative buy rating with a price target of $2.52.

Short positioning on the ASX lithium share has dropped by 30% over the past six months. According to the latest ASIC data, 6.83% of Lake Resources shares are shorted compared to 10.13% six months ago.

The post ‘A new process now proven’: Lake Resources share price stabilises as short seller’s claim debunked appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why EML, Lake Resources, Lindsay, and Sayona Mining shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Lake Resources share price leaping 10% higher on ‘major milestone’
• If I’d invested $500 in Lake Resources shares at launch, here’s how much I’d have now!

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

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Allkem Ltd (ASX: AKE)

According to a note out of Bell Potter, its analysts have retained their buy rating on this lithium miner’s shares with an improved price target of $19.89. This follows the release of the company’s third-quarter update. And while the broker notes that Allkem expects lithium prices to weaken in the fourth quarter, this is in line with its own expectations. In light of this, the broker remains positive and rates the company highly due to its portfolio of growth projects and strong balance sheet. The Allkem share price is trading at $11.61 on Friday.

Challenger Ltd (ASX: CGF)

A note out of Morgans reveals that its analysts have upgraded this annuities company’s shares to an add rating with a trimmed price target of $7.52. While the broker felt that Challenger’s quarterly update was soft, it remains positive on the future and believes that recent share price weakness has created a buying opportunity for investors. Particularly given how the roll-through of recent strong interest rates rises provides a supportive backdrop for earnings over the next few years. The Challenger share price is fetching $6.19 today.

Westpac Banking Corp (ASX: WBC)

Analysts at Goldman Sachs have retained their conviction buy rating on this banking giant’s shares with a trimmed price target of $25.86. While the broker acknowledges that net interest margin (NIM) pressures are accelerating across the sector, it feels Westpac’s shorter-duration portfolio will see it outperform peers. In addition, it likes the bank due to its cost reduction plans and attractive valuation compared to historic levels. The Westpac share price is trading at $22.34 this afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Should lithium investors buy the dip in the Allkem share price?
• Can Westpac shares really deliver 15% upside AND a 6% dividend yield?
• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
• 3 ASX 200 shares making big moves following quarterly updates
• Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock

Motley Fool contributor James Mickleboro has positions in Allkem and Westpac Banking. 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 and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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