Category: Stock Market

The All Ordinaries Index (ASX: XAO) has had a pretty decent year so far in 2023, all things considered. Despite a bevvy of interest rate rises, not to mention other issues in the global financial system, the All Ords is sitting on a healthy 5.3% year-to-date gain as it currently stands. But we can’t say the same for the Novonix Ltd (AS:X NVX) share price.

Novonix shares started 2023 on a decent footing. The battery technology company began the year at $1.41 a share, before rising as high as $1.94. But today, the Novonix share price is languishing at a new 52-week low. The company opened at $1.10 a share this morning, before falling to $1.075.

That’s the lowest price Novonix has traded at since late 2020. This puts this All Ords share’s 2023 performance at a nasty 23% loss:

But these new lows for the Novonix share price might be piquing some value investors‘ attention out there. After all, Warren Buffett’s words ‘be greedy when others are fearful’ could fit this situation well.

So are Novonix shares a screaming buy right now?

Is the Novonix share price a buy today?

Well, sorry to disappoint any bullish investors out there right now, but I am not interested in buying Novonix. Not today, not tomorrow, and probably never. When looking for my next ASX share, I like to see a few things.

For one, a strong business with a strong moat. But also a business that is robustly profitable, and will be resilient to anything the wide world throws at it. Novonix fits none of these criteria in my opinion.

When reporting its FY2022 full-year earnings last August, it revealed its most pleasing metric: a 61% increase in revenue to $8.4 million. While that is positive, Novonix currently has a market capitalisation of just over $540 million, so I wouldn’t say that makes the company look especially cheap right now.

We could use other, more accurate methods of valuation here, if only Novonix was profitable.

Instead, the company reported a total loss of $71.4 million for the year or -15.4 cents per share on an earnings per share (EPS) basis. That was up from the loss of $18 million the previous year.

So on a conceptual basis, the markets are asking us to pay $540 million for a company that turned over $8.4 million and lost $71.4 million last financial year. That’s not a deal I’m taking home.

Novonix is operating in an exciting area and could well one day become a profitable player in the new world of battery-centred energy. But that’s not a gamble I’m prepared to bet on today.

 

The post The Novonix share price has crashed 23% this year! Should I buy? appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Novonix share price crashed 19% in March
• Why is the Novonix share price diving 7% on Thursday?
• Why Deep Yellow, Frontier Digital, Magellan, and Novonix shares are dropping today
• Chair says Novonix share price ‘will respond appropriately over time’
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher

Motley Fool contributor Sebastian Bowen 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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Warren Buffett has waded into the ongoing banking crisis that hit the United States and Europe last month.

Silicon Valley Bank was the first of several regional US banks to topple. The contagion quickly spread across the Atlantic to engulf Credit Suisse. The bank was reported to be a day from collapse itself when the Swiss government engineered a takeover by rival Swiss bank UBS.

And the turmoil continues in the US, with shares in First Republic Bank (NYSE: FRC) down a precipitous 90% since early March.

However, Warren Buffett stressed that depositors shouldn’t be worried about losing their savings.

Investors in failing banks, on the other hand, could lose their shirts.

Warren Buffett warns of further bank failures

The CEO of Berkshire Hathaway addressed the banking crisis in an interview with CNBC yesterday (overnight Aussie time).

“We are not through with bank failures,” he said (courtesy of Bloomberg).

The Oracle of Omaha said bank managers have made “dumb decisions”. But he said that was no reason for depositors to panic “about something they don’t need to be panicked about.”

“Banks go bust, but depositors aren’t going to be hurt,” Warren Buffett noted.

As for shareholders?

“They’re not going to save the stockholders,” he said in regard to whether shares in troubled banks like First Republic are now a bargain.

Much as with the Australian Government Deposit Guarantee, US depositors are protected by the Federal Deposit Insurance Corp (FDIC).

And Buffett wanted to dispel some common misperceptions about the FDIC’s funding base:

The public has the impression the FDIC is the US government. But the cost of the FDIC, including the cost of their employees and everything, are borne by the banks. So banks have never cost the federal government a dime.

Berkshire has divested most of its bank holdings in recent years, with the notable exception of Bank of America Corp (NYSE: BAC) thanks to the strength of the bank’s CEO, Brian Moynihan.

“I like Brian Moynihan enormously. I just don’t want to sell it,” the Berkshire CEO said.

As for Berkshire’s investing philosophy going forward, that will remain vintage Warren Buffett, turning a largely blind eye to macroeconomic developments.

“We haven’t changed our course in 58 years,” he said. “We want to buy good businesses that are run by people we like and trust at a decent price, and we’ll keep doing that. And we’ll keep buying Treasury bills every Monday.”

How about our own big four banks?

Warren Buffet may well be right about more bank failures ahead for some troubled US institutions.

But here in Australia, the big four S&P/ASX 200 Index (ASX: XJO) banks – Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) – are in the best shape of any banks in the world.

That’s going by their Common Equity Tier 1 (CET1) ratio, which measures the core equity capital of a bank in comparison to its risk-weighted assets.

The Australian Prudential Regulation Authority (APRA) requires the banks to have a minimum 10.25% CET1 ratio.

And in good news for Aussie investors, all of the big four banks currently are well ahead of that 10.25% ratio.

The post Investor or depositor? Warren Buffett sounds off on banking crisis appeared first on The Motley Fool Australia.

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More reading

• Forget term deposits and buy ANZ and this ASX dividend share for income: experts
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• How reliable are the dividends from CBA shares?
• Could Westpac shares have ‘the greatest potential’ of all the ASX 200 bank stocks?
• Buy NAB and this ASX dividend share now: analysts

Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Bank of America. The Motley Fool Australia has recommended 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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The ASX share market is a great place to find ASX dividend shares that can pay strong long-term passive income, in my opinion.

I love receiving dividends because we don’t have to do anything once we own the shares. Those businesses can send money to our bank accounts every six months (or every three months). We don’t have to worry about tenants, fixing a toilet, or searching for the best term deposit rate.

I’m building a portfolio that is focused on businesses that can grow their profit over time, which can lead to growing dividends and, hopefully, share price growth as well.

These are two of the biggest positions in my ASX dividend share portfolio.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is an investment conglomerate that has been operating for 120 years. It’s invested in a wide range of industries including telecommunications, resources, building materials, property, farmland, financial services, swimming pools, luxury retirement living, and more.

The business receives divided, distribution, and interest income from its defensive, cash flow-focused investment portfolio. It pays for its expenses, pays a majority of the net cash flow to investors as growing passive dividend income, and then re-invests the rest in more opportunities.

It has grown its dividend every year since 2000, which is the longest-running dividend growth streak on the ASX. Of course, it’s not guaranteed to grow the dividend, but it’s a core aim for the business.

I like that the company is improving its diversification. It has recently invested in more farmland.

As long as the business continues to invest with the future in mind, I think it will be capable of good long-term returns.

The ASX dividend share’s dividend growth has accelerated over the past year, with the FY23 interim dividend being boosted by 24% to 36 cents per share.

Brickworks Limited (ASX: BKW)

Brickworks is best known as a building products business. It is the biggest brickmaker in Australia and the northeast of the US. The company also has exposure to roofing, paving, masonry, and other building materials in Australia.

To me, one of the most interesting things about the business is that it owns a large chunk of Soul Pattinson shares. Brickworks owns 26.1% of Soul Pattinson. This can provide Brickworks with a growing stream of passive dividend income and, hopefully, capital growth as well.

Brickworks also owns half of a compelling industrial property trust which owns prime logistics and industrial properties across Sydney and Brisbane, tenanted by third-party customers. The industrial trust owns development land which provides “significant further growth.” Brickworks’ net asset value of its property trust holdings is worth more than $2.2 billion, according to Brickworks. The properties are paying Brickworks growing rental income.

On top of that, Brickworks also has significant additional land that can be developed, including at Horsley Park in New South Wales and Craigieburn in Victoria.

The ASX dividend share hasn’t cut its dividend for 47 years, which is a very impressive long-term dividend record in my opinion. In the FY23 half-year result, Brickworks grew its interim dividend by 5%.

The post 2 ASX dividend shares I’ve bought to capture long-term passive income appeared first on The Motley Fool Australia.

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More reading

• Warren Buffett is doubling down on these Japanese stocks. How can ASX investors do the same?
• Blue chip beat-down: 5 huge ASX 200 shares cementing new 52-week highs today
• How much do you need to invest to give up work and live only off dividend income?
• Why Brickworks, Energy Resources, Magellan, and Pilbara Minerals shares are dropping today
• How I’d invest $5,000 today for long-term passive income

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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While term deposits are improving, they still don’t come close to some of the dividend yields you will find on the Australian share market.

For example, the two ASX dividend shares listed below have been tipped to provide very generous yields in the coming years.

In addition, with price targets notably higher than where they currently trade, there’s potential capital gains on offer for investors as well. Something term deposits won’t give you.

Here’s why these dividend shares could be great options for income investors right now:

ANZ Group Holdings Ltd (ASX: ANZ)

Rather than putting money into this big four bank’s term deposits, income investors could potentially get a materially better return from its shares.

For example, Citi recently put a buy rating and $29.25 price target on its shares. This implies potential upside of 23% from current levels.

In addition, the broker is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. Based on the current ANZ share price of $23.77, this will mean yields of 7% and 7.4%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that has been tipped as a buy is Dexus Industria. It is a leading industrial and office property company.

Morgans is bullish on the company and has it on its best ideas list with an add rating and $3.25 price target. This suggests potential upside of 18% for investors from where it trades today.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and then 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.75, this will mean yields of 6% and 6.15%, respectively.

The post Forget term deposits and buy ANZ and this ASX dividend share for income: experts appeared first on The Motley Fool Australia.

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More reading

• 3 good reasons I’m avoiding ANZ shares at all costs!
• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?
• Could right now be a great time to buy ASX 200 bank stocks for passive income?
• How I would build a Warren Buffett-style portfolio with ASX 200 shares
• Could ANZ shares cash in on the recent international bank collapses?

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 Block Inc (ASX: SQ2) share price is having a tough run on the market today.

Block shares are tumbling 6.13% to $93.975. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.15% in the red today.

Let’s take a look at what is going on with the Block share price.

What’s happening to Block?

Block is not the only ASX buy now pay later (BNPL) share sliding today. Zip Co Ltd (ASX: ZIP) shares are 1.85% in the red, while the Sezzle Inc (ASX: SZL) share price is falling 3.65%.

BNPL shares including Block appear to be following in the footsteps of their US counterparts overnight.

Block’s New York Stock Exchange listing Block Inc (NYSE: SQ) fell 5.54% overnight. Similarly, the shares of Affirm Holdings Inc (NASDAQ: AFRM) plunged 6.5% overnight.

Block is being targeted by well-known short seller Hindenburg Research, as my Foolish colleague James reported today.

Further, speculation on future rate rises in the USA could also be weighing on BNPL shares.

The Consumer Price Index lifted 0.1% month on month in March 2023, data from the US Bureau of Labor Statistics released overnight shows. However, this was less than the 0.4% rise in CPI in February.

Since March last year, CPI has lifted 5%. However, this was the “smallest 12-month increase since the period ending May 2021”.

Commenting on this data, US President Joe Biden noted “inflation is still too high”. He said:

While inflation is still too high, this progress means more breathing room for hard-working Americans – with wages now higher than they were 9 months ago, after accounting for inflation.

Given inflation is still rising, multiple economists are tipping the USA Federal Reserve to raise rates further. In a research note today, ANZ economist John Bromhead said:

Equity markets softened after US inflation data confirmed expectations that the Fed is likely to lift rates 25bp in May.

Markets are aligned in the view that will be the peak of the cycle, but views differ as to when rates will start to fall.

Oxford economics chief US economist Ryan Sweet also tipped the Fed would lift rates by 25 basis points in May and June before pausing for the rest of the year.

Block share price snapshot

The Block share price has fallen 43% in the last year and 14% in the past month.

Block has a market capitalisation of about $2.7 billion based on the current share price.

The post Why is the Block share price tumbling 6% today? appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Block, Champion Iron, and Zip shares are dropping today
• How I would build a Warren Buffett-style portfolio with ASX 200 shares
• ‘Strong demand’: The 2 ASX 200 shares to pounce on right now
• Here are the top 10 ASX 200 shares today
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher

Motley Fool contributor Monica O’Shea 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 Affirm, Block, and Zip Co. The Motley Fool Australia has positions in and has recommended Block. 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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Tapping into the incredible power of compounding can deliver life-changing results to a person’s wealth. Yet, some investors tend to only focus on one component of the exponential wealth creation equation when investing in ASX shares, ignoring dividend income.

The growth potential of a company’s share price usually attracts most of the limelight in a portfolio, for obvious reasons. However, there is a second compounding machine involving the dividend income that can also be switched on.

Once set up, a shareholder can sit back and watch their dividends go to work for them. So, what is this simple step to amplifying long-term portfolio returns? Follow along to find out and learn how to make use of its power with your own dividend income.

Growing your share of future earnings

In his 2021 annual letter to shareholders, Warren Buffett explained how Berkshire Hathaway investors effortlessly increased their stake in the company, stating:

The action [buyback] increased your ownership in all of Berkshire’s businesses by 5.2% without requiring you to so much as touch your wallet.

By using the cash generated by the company’s operations, each shareholder was able to hold a larger share of the Berkshire pie, as the number of shares issued was reduced through a buyback program.

In a similar fashion — though not Buffett’s preferred option — is for a company to pay a dividend to return a share of the profits to its shareholders. However, this method can be sweetened when an ASX share offers a dividend reinvestment plan (DRP).

Instead of receiving cash, investors can elect to be provided with additional shares to the value of the dividend payment. This effectively increases the investor’s holding without needing to contribute additional funds… kind of magical, right?

Over time, the impact this simple act can make on total returns is significant. Take the example below, for instance, comparing an investment in the S&P/ASX 200 Index (ASX: XJO) with and without dividends reinvested between July 2012 and June 2022. 

In a decade, making use of a DRP would have resulted in a 246% total return. Meanwhile, taking the dividends as cash dragged the total return down to 163%. 

An entire 83% additional wealth was generated over 10 years, simply by switching on dividend reinvestments. In my view, that has to be one of the greatest increases in returns for minimal effort that I know of.

How to turn on that extra dividend income

If getting your DRP on sounds like a step you want to take, you’re probably wondering how exactly is it done. The procedure for unlocking the great compounding wizardry of dividend reinvestment is as follows: 

1. Find which share registry your shares use, usually Link Market Services, Computershare, or Boardroom – among others. This can be found in any company correspondence via emails or letters. 
2. Login to the share registry, navigate to the section usually dubbed ‘forms’, and select ‘Re-investment plans’.
3. Follow the prompts to create an instruction to nominate your holdings for full or partial participation in each company’s respective plan. 
4. Sit back and watch your dividends earn dividends…

It’s such a quick and painless process that I just switched on reinvestment for two of my own ASX shares just then, in less than a few minutes. 

Bonus benefit you may not have known

If DRPs were sweet enough already, this occasional bonus pours even more sugar on top of your dividend income.

In some cases, but not all, ASX-listed companies will offer a discount on the price paid for shares purchased through a DRP. That means getting more shares in your holdings for less than what you could purchase them for on the market.

Examples of ASX shares currently offering a discount on dividend reinvestments include:

• Premier Investments Limited (ASX: PMV): 5% discount
• ARB Corporation Ltd (ASX: ARB): 5% discount
• Jumbo Interactive Ltd (ASX: JIN): 10% discount

It may not seem like a lot right now. However, as the years tick by, the power of compounding can make these attractive reinvestments turn into a monstrous dividend income when you finally elect to receive it as cash.

The post Supercharge your portfolio: The easy step to unlock compound returns with dividend income appeared first on The Motley Fool Australia.

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More reading

• ’20-fold increase’: 3 ASX shares that’ll rocket sooner or later
• 5 ASX All Ords shares trading ex-dividend this week
• Top brokers name 3 ASX shares to buy next week
• Want wealth compounding? Here are my 3 favourite dividend shares inside the ASX 300
• Premier share price higher on record profit and special dividend

Motley Fool contributor Mitchell Lawler has positions in Jumbo Interactive. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation and Jumbo Interactive. The Motley Fool Australia has recommended ARB Corporation, Jumbo Interactive, and Premier Investments. 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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Is the daily grind wearing you down? ASX dividend shares – and the income they provide – could prove to be your ticket out of the rat race.

While investing on the ASX for passive income may sound like a daunting task, it needn’t be difficult or inherently risky.

There’s plenty of jargon out there aiming to explain how the market moves, but I think economist Ben Graham explains it best:

In the short run the market is a voting machine but in the long run it is a weighing machine.

Day to day, the market moves on investor sentiment – a tide that is notoriously difficult to predict. However, over the weeks, months, and years, share prices will typically rise (or fall) alongside a company’s earnings.

Indeed, buying shares in an ASX-listed company is essentially the same as buying a portion of its business. And said businesses can choose to pay out a portion of their profits to their shareholders – with the payments known as dividends.

So, how might an investor replace their salary with dividend income from ASX shares? Keep reading to find out.

How much dividend income do you need to quit your job?

The first question answer before one can kick off their plan to replace their wage with dividend income is: How much passive income do you need?

The answer will vary from person to person. It will likely depend on your lifestyle, your living situation, and how you like to spend your time.

A good place to start might be The Motley Fool Australia’s Retirement Guide.

It states that to live a ‘comfortable’ lifestyle a single Australian is estimated to need around $46,000 of annual income. Let’s use that as our target.

Building a passive income stream from ASX shares

According to S&P Global data, the S&P/ASX 200 Index (ASX: XJO) – housing 200 of the ASX’s biggest companies – has provided an average annual total return of 8.18% over the last decade. It also boasts an indicated dividend yield of 4.58%.

At that rate, one would need a portfolio worth around $1 million to receive $46,000 of annual passive income.

That might sound like an unachievable sum. However, thanks to the power of compounding it can be built up over the years.

Here’s how investing $200 each week could grow a person’s portfolio to be worth more than $1 million:

Years invested	$ invested	Portfolio value (8.18% return)	Dividend income (4.58% yield)
1	$10,400	$10,400	$476.32
5	$52,000	$61,232	$2,804.42
10	$104,000	$151,954	$6,959.49
15	$156,000	$286,369	$13,115.70
20	$208,000	$485,521	$22,236.86
25	$260,000	$780,586	$35,750.83
30	$312,000	$1,217,759	$55,773.36

Though, no investment is guaranteed to provide returns or downside protection. Additionally, past performance isn’t an indication of future performance.

How to invest on the ASX

Now, we come to buying ASX dividend shares.

There are over 2,200 companies listed on the ASX. Of those, many pay two dividends a year.

Choosing which to invest in will depend on multiple factors, many of which are unique to an individual investor.

Things you might want to consider include your risk tolerance, long-term goals, and the time you have to spend stock picking.

A risk-averse investor might choose to invest in a highly diversified portfolio and focus on blue-chip stocks. One who is aiming for market-beating returns might focus on growth stocks. A time-poor investor might fork out for exchange-traded funds (ETFs).

Fortunately, The Motley Fool Australia has created a beginner’s guide to investing in ASX shares with all that up-and-coming investors need to know to make the most of the market.

The post Want to quit your job and live off dividend income? Here’s how appeared first on The Motley Fool Australia.

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More reading

• ASX 200 dips as Aussie unemployment remains near historic lows
• Starting from scratch: How ASX investors can grow a $50k passive income in just 11 years
• 5 things to watch on the ASX 200 on Thursday
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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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Given how defensive the healthcare sector is, many investors are turning to this side of the market because of the uncertain economic environment.

This has seen the S&P/ASX 200 Health Care index rise almost 8% year to date, which is approximately double the return of the benchmark ASX 200 index.

With that in mind, listed below are two ASX 200 healthcare shares that could be good options if you’re looking for exposure to the sector. Here’s what brokers are saying about them:

Cochlear Limited (ASX: COH)

The first ASX 200 healthcare share to look at is hearing solutions company, Cochlear.

Goldman Sachs thinks it could be a top option in the sector right now. This is due to its belief that improving trading conditions could see Cochlear outperform its guidance in FY 2023.

The broker currently has a buy rating and $265.00 price target on its shares. It commented:

We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. We expect a sequential improvement in momentum through 2H23 (further elective volume improvement and new processor launch momentum, potentially tempered by some moderation in Acoustics). We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program (GSe: $75m/year).

ResMed Inc. (ASX: RMD)

Another ASX 200 healthcare share that has been named as a buy is ResMed.

Morgans is a big fan of the sleep treatment company. It believes ResMed is well-positioned for growth in both the near and long term. The latter will be supported by its growing software-as-a-service (SaaS) business, which is leveraged to the out of hospital care trend.

Morgans has a buy rating and $37.24 price target on the company’s shares. It said:

We continue to believe the overall fundamentals remain sound and the company is well positioned, with margin headwinds expected to abate slowly. […] We view RMD as increasingly well positioned as a leading SaaS provider of out of hospital care, with strong underlying sales momentum (+7%) expected to continue, and integration of German-based Medifox Dan (only 6 weeks in 2Q; EPS neutral) offering end-to-end software for nursing and HME customers in Germany.

The post Brokers say these defensive ASX 200 healthcare shares are buys appeared first on The Motley Fool Australia.

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More reading

• Why this ASX 200 ‘stable stock’ is poised to outperform: Goldman Sachs
• Build your portfolio around these ASX 200 blue chip shares: brokers
• My top 5 ASX shares to buy and hold forever in anticipation of the bull market
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear. 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 managing director of ASX 200 nickel share Nickel Industries Ltd (ASX: NIC) has shelled out $1.9 million of his own money to top up his holdings in the company.

A change of director’s interest notice lodged with the ASX shows Justin Werner purchased 2.1 million shares on-market through two companies for a total consideration of $1,887,839 last Wednesday.

Werner hasn’t purchased Nickel Industries shares since October 2021. His buy last week increased his existing holding by 7%. Werner now holds more than 31.8 million Nickel Industries shares.

ASX 200 nickel share up almost 17% since Monday

The Nickel Industries share price is the second-best riser of the ASX 200 today.

The mining stock is currently up 6.1% to 99 cents.

There’s been some heavy trading of Nickel Industries shares over the past two days as well.

The nickel share was the best performer of the ASX 200 on Tuesday, rising 7.1%.

That day, the company announced it was simultaneously issuing new notes and tendering its existing notes to extend its debt maturity profile.

The nickel miner’s winning streak continued yesterday, with the Nickel Industries share price rising another 3.3%. The share price is now up by almost 17% since Monday.

What’s the latest news from Nickel Industries?

As we reported, Nickel Industries revealed some impressive full-year results back in February.

This included an 88.4% lift in revenue to US$1,217 million and a 15.3% bump in net profit to US$159 million.

Management said it expects the company’s strong performance to continue in FY23.

At the East Coast Mining Conference last month, Werner delivered an investor presentation.

Investors heard that Nickel Industries is currently producing some of the lowest-cost and most profitable nickel units in the global market.

The nickel pig iron producer has recently diversified into the ‘Class 1’ nickel electric vehicle (EV) battery supply chain by converting some of its current production into nickel matte.

In January, Nickel Industries announced a $673 million capital raise to buy a stake in two nickel projects as part of its EV battery supply chain strategic framework agreement with its major shareholder, Shanghai Decent.

Nickel Industries share price snapshot

Since its initial public offering (IPO) in 2018, this ASX 200 nickel share has risen by more than 240%.

It’s been a rough road over the past 12 months though.

The share price has tumbled from an all-time peak of $1.79 in March 2022 to under $1 today.

The company has a price-to-earnings (P/E) ratio of just over 10 times.

The post Which ASX 200 nickel share boss just bought $1.9 million worth of shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the top 10 ASX 200 shares today

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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The tech sector has been a difficult place to invest over the last couple of years.

Rising interest rates have put significant pressure on valuations, leading to some tech shares pulling back materially.

While this is disappointing, this weakness could have created a buying opportunity for investors in some cases.

For example, two beaten down ASX tech shares that have been named as buys with huge upside potential are listed below. Here’s what brokers are saying:

Megaport Ltd (ASX: MP1)

The first beaten down ASX tech share that could be in the buy zone is Megaport. This leading global provider of elastic interconnection services has seen its shares crash by 66% from their 52-week high.

Goldman Sachs believes this is a buying opportunity. Particularly given its exposure to powerful tailwinds such as the structural shift to the cloud continuing. It commented:

We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies. While acknowledging mixed near-term execution around the partner channel and the new MVE product, we are Buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth. Despite the weaker operational trends in 2Q23, we expect still robust top-line growth, with the increased focus on profitable growth supporting an attractive earnings profile over FY23-25.

The broker has a buy rating and $8.20 price target on its shares. This is significantly higher than the current Megaport share price of $4.41.

Readytech Holdings Ltd (ASX: RDY)

Another ASX tech share to look at is Readytech, which is down by almost a third from its 52-week high.

Readytech owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. These businesses operate in market niches that are under-served by both large and small enterprise software competitors.

Goldman Sachs is also bullish on Readytech. It expects the company to continue to deliver strong organic growth in the coming years. In light of this, it sees a lot of value in its shares at the current level. The broker commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions, underpinned by solid software metrics such as low churn at ~3% and high LTV/CAC. RDY trades at a large discount to ASX tech peers, both on an absolute and growth-adjusted basis, which we believe is too wide considering RDY’s business quality and growth outlook.

Goldman has a buy rating and $4.40 price target on its shares. This implies potential upside of 48% from the current Readytech share price of $2.97.

The post 2 high-risk, high-reward ASX tech shares to buy now: analysts appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares this week
• These are the 10 most shorted ASX shares this week
• Here are the top 10 ASX 200 shares today
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today

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 and ReadyTech. The Motley Fool Australia has recommended Megaport and ReadyTech. 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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