Category: Stock Market

It certainly was a massive week for ASX 200 lithium shares. Investors were piling back into the industry after Liontown Resources Ltd (ASX: LTR) revealed that it had received and rejected a takeover proposal from lithium giant Albemarle at a huge premium.

The good news for lithium investors is that one leading broker believes the mergers and acquisitions (M&A) activity may not be over.

According to a note out of Morgans, its analysts have picked out two more lithium miners that it believes could soon become takeover targets along with Liontown.

Which ASX 200 lithium shares could be takeover targets?

Morgans believes that Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) could be takeover candidates. It explained:

We see potential for both PLS and AKE to also be considered attractive targets. PLS offers exposure to high quality hard rock while AKE is much cheaper on a resource multiple.

And while the broker also sees Mineral Resources Ltd (ASX: MIN) as an attractive option, it feels a takeover is less likely “given its existing relationships with ALB and Jiangxi.”

It is a similar story for fellow ASX 200 lithium share Core Lithium Ltd (ASX: CXO), which the broker believes is less likely to become a target due to “the smaller resource size, higher EV / resource and likely higher cost operations.”

Why Allkem and Pilbara Minerals?

Morgans sees Pilbara Minerals as a top option due to its globally significant resource and ability to provide an acquirer with immediate exposure to spodumene and hydroxide. It commented:

We’d flagged LTR as a potential target but it’s not the only one. PLS remains one of the few independent lithium producers with a globally significant resource. With assets in operation it would offer an acquirer immediate exposure to spodumene and hydroxide.

As for Allkem, Morgans believes it would be a good target due to its large resource base. However, it concedes that the company is unlikely to be seen as a target for a miner that already has exposure to Argentina. It explained:

AKE is also potentially a target and holds a much larger resource base than PLS. However, the majority of its resource is in Argentina in lithium brines which are typically used for carbonate rather than hydroxide. We think both chemicals will be important over the long run but potential acquirers with pre-existing South American brine exposure may see fewer diversification benefits.

Time will tell what happens, but it certainly is an interesting time for ASX 200 lithium shares.

The post These ASX 200 lithium shares could be takeover targets: Morgans appeared first on The Motley Fool Australia.

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More reading

• These were the best performing ASX 200 shares in March
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Which ASX 200 lithium share has been a 10-bagger in two years?
• Brokers name 3 ASX shares to buy now
• Liontown share price climbs as Albemarle continues loading up

Motley Fool contributor James Mickleboro has positions in Allkem. 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) stock Telstra Group Ltd (ASX: TLS) could be a smart choice for dividend investors looking for passive income.

Telstra has long been regarded as an ASX dividend share by some investors.

Whilst it has paid a high dividend yield for a long time, I’ve been cautious about businesses that aren’t growing their earnings because it could mean that a dividend cut occurs. Telstra ended up cutting its dividend in FY18 and FY19.

But, pleasingly, dividend growth has returned to the telco, and it appears likely to continue.

With that positive outlook for passive income, I think the business could be a good one to consider for a contender to generate $400 in monthly passive income.

Telstra’s potential to pay good passive dividend income

The ASX telco share doesn’t pay a dividend each month, it actually pays one every six months. So, for our purposes, we’re going to calculate an annual amount which can then be divided into 12 equal parts.

Receiving $400 per month would translate into $4,800 of annual passive dividend income.

That’s quite a lot of dividends.

But, it helps that Telstra has a pretty high projected dividend yield for FY23 and beyond.

According to Commsec, Telstra shares are expected to pay an annual dividend per share of 17 cents. At the current Telstra share price, that represents a grossed-up dividend yield of 5.75%.

Based on trying to receive of $4,800 of annual income, investors would need to buy 28,236 Telstra shares.

The telco is then expected to grow its dividend to 18 cents per share in FY24 and then another increase to 19 cents per share in FY25.

If Telstra does keep increasing its dividend to FY25, then investors would need to own 25,264 shares to gain $4,800 of annual passive dividend income in FY25.

Will these payments happen?

Dividends are not guaranteed. Forecasts are just estimates, so the dividend payments could be smaller, or bigger, than expected.

Telstra is working on a number of initiatives to grow its profit in the coming years with its T25 strategy. It wants to reduce its costs, have the best 5G network and grow its margins for investors.

If the company is able to achieve these things, then I think the dividend can keep steadily climbing.

The post For $400 in monthly passive income, buy 28,236 shares of this ASX 200 stock appeared first on The Motley Fool Australia.

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More reading

• The latest Telstra dividend is being paid today. Here’s the lowdown
• ASX shares are paying out $19 billion in dividends this week. Are you getting a piece?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 2 ASX 200 stocks smashing new multi-year highs on Thursday
• Why did the Telstra share price just hit a multi-year high?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 certainly was a tough month for the ANZ Group Holdings Ltd (ASX: ANZ) share price.

During the period, the banking giant’s shares lost 7% of their value to end at $22.93.

This was notably worse than the performance of the ASX 200 index, which dropped 1.1% in March.

What happened to the ANZ share price?

The weakness in the ANZ share price was driven by the sudden collapse of a number of international banks. This includes Silicon Valley Bank and Signature Bank in the United States and Credit Suisse in Europe.

Investors appeared concerned that the crisis could spread to Australia and quickly reduced their exposure to the banks. That’s despite the big four banks being some of the safest in the world based on their capital positions and liquidity.

Is this a buying opportunity?

One broker that is likely to see this pullback as a buying opportunity is Citi.

That’s because its analysts recently named ANZ as their top pick in the banking sector. The broker commented:

ANZ’s 1Q23 disclosures exhibited strong trends in both lending growth and asset quality. No earnings disclosure was provided, but we think that after backing out RWA movements from capital, it comfortably implies above market earnings, although subject to movements in deductions/reserves.

Despite fears of deteriorating asset quality, impaired assets declined again in the quarter, although this could be the bottom as seasonally mortgages and personal credit arrears tick higher in the March quarter. Institutional lending momentum continued and accelerated in the Dec qtr, which we expect was driven by more available liquidity and pricing vs debt markets.

ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

Citi has a buy rating and $29.25 price target on the bank’s shares. Based on the current ANZ share price, this implies potential upside of almost 28% for investors over the next 12 months.

In addition, it is expecting a fully franked 7.3% dividend yield this year, sweetening the deal even further!

The post Why did the ANZ share price crash 7% in March? appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?
• Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Investing in ASX 200 banks for dividends? Read this

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) was out of form in March. Due largely to weakness in the banking sector, the benchmark index fell 1.1% to 7,177.8 points.

But that couldn’t stop some ASX 200 shares from delivering very strong returns last month.

For example, the four shares listed below were the strongest performers on the index over the period. Here’s why they smashed the market:

Liontown Resources Ltd (ASX: LTR)

The Liontown share price was the best performer on the ASX 200 in March with a stunning gain of 89.7%. This was driven by news that the lithium developer received and rejected a non-binding takeover proposal from industry giant Albemarle. Management labelled the offer as “opportunistic.” So, with Liontown’s shares now trading beyond Albemarle’s $2.50 per share offer, it seems that investors are betting on an improved proposal being made in the near future.

United Malt Group Ltd (ASX: UMG)

The United Malt share price was on form and raced 33% higher last month. This was also driven by a takeover approach. However, on this occasion, the maltster was receptive of the approach and revealed that it would accept the $5.00 per share offer from rival Malteries Soufflet if it became binding.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price was a strong performer and rose 25.6% last month. Investors were buying the gold miner’s shares after the price of the precious metal surged to almost US$2,000 an ounce. This was driven by increased demand for safe haven assets due to the banking crisis and optimism that interest rates won’t rise as much as previously expected.

InvoCare Limited (ASX: IVC)

The InvoCare share price wasn’t far behind with a gain of 24.4% in March. This funerals company was another takeover target, receiving an unsolicited, preliminary, non-binding indicative offer from private equity giant TPG. It offered to acquire 100% of InvoCare’s issued shares for $12.65 cash per share. However, the company’s board was not biting and informed TPG that its offer “does not provide compelling value for InvoCare shareholders.”

The post These were the best performing ASX 200 shares in March 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 Friday
• Liontown share price climbs as Albemarle continues loading up
• Don’t stress! The stock market is ‘a long way from a crisis’
• 5 things to watch on the ASX 200 on Friday

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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It’s been an exciting few days for ASX lithium shares, with news of the surprise takeover offer from global giant Albemarle for Liontown Resources Ltd (ASX: LTR) on Tuesday pushing every lithium share north.

None more so than Liontown, with its share price up by 67% in just four days.

But one expert is reminding investors that it takes more than just lithium to make an electric car battery.

He says another way to leverage the “mega-trend of vehicle electrification” is through ASX graphite shares.

Graphite almost as important as lithium, says expert

Westpac Banking Corp (ASX: WBC) hosted a webinar this week on the future of lithium investment.

Among the speakers was Matthew Frydman, a senior research analyst specialising in metals and mining at MST Financial.

Frydman said there was a “j curve of adoption for electric vehicles”, and this would be a long-term trend benefitting several commodities.

MST Financial presented a chart sourced from Mineral Resources Ltd (ASX: MIN) showing that global sales of EVs are expected to rise from 11 million as of 2021 to more than 60 million by 2030.

Australia aims to have 3.8 million EVs on the roads by 2030.

Frydman said even though lithium commodity prices were falling, the medium-term outlook for Australia’s established producers was ‘still very favourable‘.

But he also said lithium wasn’t the only commodity that would benefit from the EV megatrend.

While lithium is a well-known key component of EV batteries, with 40kg to 50kg of the carbonate variety used per car, Frydman said graphite was “almost as critically important to the chemistry of the battery”.

He explains:

Lithium is really important to the cathode side of the battery, graphite is absolutely critical to the anode component — the other half of the battery.

Graphite, like lithium, will be a rapidly growing market … and really, globally, there’s probably not too many widely-known grapite projects that are out there in the common knowledge.

2 ASX graphite shares that could be worth a look

Frydman said there were two ASX graphite stocks worth mentioning for Australian investors interested in leveraging the EV trend.

Firstly Syrah Resources Ltd (ASX: SYR). They have the biggest natural graphite deposit in the world in Balama in Mozambique. That was a mine which was developed a number of years ago and is currently producing [and is] really a stand-out in terms of the size and scale and quality of that deposit.

Balama and Syrah will be absolutely critical to supplying the market’s graphite needs in coming years.

The Syrah Resources share price closed on Friday at $1.84. It is up 8.9% over the past year.

The second ASX graphite stock Frydman highlighted was Black Rock Mining Ltd (ASX: BKT).

He said:

They have a very large and reasonably high grade deposit that they are developing in Tanzania and they’re quite advanced relative to the peer group and potentially will form part of that supply solution for graphite in the coming years. 

The Black Rock share price closed on Friday at 14 cents. It is down 48% over the past year.

Graphite market at a turning point

At an industry event in November last year, Andy Miller, COO of Benchmark Mineral Intelligence, said the mined and synthetic graphite market was at a turning point (courtesy mining.com).

Benchmark predicts that graphite demand will grow at an annual compound rate of 10.5% over the next 10 years, but supply will only expand by 5.7% per annum.

Benchmark’s Natural Flake Graphite Forecast tips the battery industry will consume two-thirds of the world’s flake graphite by 2025, increasing to 79% in 2030.

Graphite has traditionally been used in steel-making.

The post It ain’t all about lithium: 2 other ASX shares exposed to the EV trend appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher
• Why Appen, Regis Resources, Syrah, and Zip shares are charging higher today
• These ASX shares are being dumped from the ASX 200 index this month
• These 4 ASX shares could rocket this month: Here’s why

Motley Fool contributor Bronwyn Allen has positions in 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 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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When you first start investing in ASX shares, it can be very intimidating. Going from zero to something material may seem like an impossible task, but history shows that it most certainly isn’t.

Furthermore, you don’t even need to generate Warren Buffett-style returns to make your wealth creation dreams a reality. Simply matching the market return has created significant wealth for investors in the past. And while I can’t guarantee that it will be the case again in the future, I’m optimistic that it will be.

With that in mind, let’s take a look at one possible investing route to earning $1,000 a month in passive income from ASX shares.

How to earn $1,000 a month from ASX shares

Firstly, if you want to earn $1,000 a month in passive income, you’ll need to pull in a total of $12,000 in dividends from ASX shares each year.

It’s quite easy to find ASX shares that offer investors 5% dividend yields. In fact, the Vanguard Australian Shares High Yield ETF (ASX: VHY) will do this for you (and some more) through a single diversified investment.

Based on this yield, to generate $12,000 of passive income a year, you’ll need to invest approximately $240,000.

Ouch!

That’s a big number if you’re starting at zero. But don’t let that put you off making it a longer-term goal.

According to the latest Berkshire Hathaway (NYSE: BRK.B) letter to shareholders, the S&P 500 Index (INDEXSP: .INX) on Wall Street has delivered an average annual return of 9.9% since all the way back in 1965.

Were ASX shares to generate this level of return for the foreseeable future, you could make your way to the $240,000 sooner than you think without breaking the bank.

For example, investing $500 into ASX shares each month would get you almost halfway there to $100,000 in 10 years if you earned the market return. And thanks to the power of compounding, it won’t take anywhere near as long to make up the rest.

A further six and a half years, so a total of 16.5 years, would see your portfolio grow to the target amount of $240,000.

At that stage, you could build a portfolio or buy an exchange-traded fund (ETF) with a 5% yield and sit back and watch the dividends roll in.

The key is being patient and sticking to the plan, whatever is happening in the market.

The post One possible investing route to earning $1,000 monthly passive income appeared first on The Motley Fool Australia.

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More reading

• Want $1,000 of passive income? Check out these ASX shares
• 3 ASX dividend ETFs to make nice income
• Market beating returns and big yields: 2 ASX ETFs to buy next week
• Buy this ASX ETF for retirement income
• Is a dividend ETF really better than an ASX index fund for income?

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 Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s no secret that March was a tough month for the share market and the S&P/ASX 200 Index (ASX: XJO). But ASX 200 bank shares like National Australia Bank Ltd (ASX: NAB) share price did far worse.

Over the month just gone, the ASX 200 ended up falling around 1.1%. But for NAB, it was far worse.

This ASX big four bank share ended February at a flat price of $30 a share. But by yesterday’s market close, the bank had fallen to $27.72 a share. That’s a fall worth a nasty 7.6%.

NAB wasn’t the only ASX 200 bank share in the wars last month, though. March also saw the Commonwealth Bank of Australia (ASX: CBA) share price sink by 2.35%. Westpac Banking Corp (ASX: WBC) shares fell by 3.86%, while the ANZ Group Holdings Ltd (ASX: ANZ) share price dropped by 6.98%.

But NAB was by far the worst performer out of the big four.

So what went so wrong for the NAB share price last month?

Why did the NAB share price plummet almost 8% in March?

Well, it doesn’t seem to have much to do with any announcements out of NAB itself. The bank didn’t have much to say in March, apart from a notice that its long-serving chief financial officer Gary Lennon would be leaving NAB on 1 October, to be replaced by Nathan Goonan.

However, March did upend global markets with the collapse of several international banks. First to kick things off was the SVB Financial Group (Silicon Valley Bank). The collapse of this tech-focused American lender led to a contagion effect, which soon engulfed the European bank Credit Suisse.

Nothing tends to spook investors more than a banking crisis, so this explains why the ASX banks fared so poorly in March. It could have been worse though. Across the Pacific, US banks like Bank of America and JP Morgan both fell by more than 10% (the former by more than 17%).

Adding to NAB’s woes last month was a seemingly growing sentiment that the NAB share price might have gotten a bit too high. As we covered this week, ASX broker UBS came out with a note describing the NAB share price as “overvalued”. It gave NAB shares a sell rating, with a 12-month share price target of $25.

As such, perhaps this sentiment was also weighing on NAB shares over the month just gone.

No doubt, investors will be hoping that April is a better month for this ASX 200 bank share. Let’s wait and see.

The post Why did the NAB share price tank more than 7% in March? appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• Forget term deposits and buy these high-yield ASX dividend shares instead: experts
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?
• Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and JPMorgan Chase. 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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It may be April Fool’s Day today but, for investors, share market volatility is no joke. 

In the first five weeks of 2023, the S&P/ASX 200 Index (ASX: XJO) notched up impressive gains of more than 7%. But just as investors started to relax a little, the worm turned (as it always does!), and those gains were largely wiped out by the end of March.

While watching your shares go backwards is no laughing matter, staying focused on the long term can help keep you smiling during periods of inevitable volatility.

And don’t forget, share market falls can create excellent long-term buying opportunities.

So, with that in mind, we asked our Foolish writers which ASX shares they reckon are worth snapping up this month.

Here is what the team came up with:

7 best ASX shares for April 2023 (smallest to largest)

• Imdex Limited (ASX: IMD), $1.13 billion
• MFF Capital Investments Ltd (ASX: MFF), $1.47 billion
• Brickworks Limited (ASX: BKW), $3.45 billion
• Technology One Ltd (ASX: TNE), $4.72 billion
• Treasury Wine Estates Ltd (ASX: TWE), $9.43 billion
• Woolworths Group Ltd (ASX: WOW), $46.10 billion
• Wesfarmers Ltd (ASX: WES), $56.98 billion

(Market capitalisations as of 31 March 2023).

Why our Foolish writers love these ASX stocks

Imdex Limited

What it does: Imdex is a global mining technology company that provides drilling fluid systems, instruments, and software for the minerals exploration, mining, and oil and gas industries. Its products and software are commodity agnostic but are experiencing rapid growth across critical metals.

By Mitchell Lawler: Despite both commodities and tech having a decent start to the year, Imdex shares are down 1.1% in 2023. 

My guess is the share price has come under pressure after the company raised capital at a discount to acquire Devico – a global leader in drilling tech based in Norway – for $324 million. 

Acquisitions come with risks. If it turns out the acquiring company overpaid, it can have devastating consequences for the share price. Hence, investors are probably treading carefully around this ASX 300 stock for now. 

However, this is not Imdex’s first rodeo. It has made many acquisitions over the years. I believe the addition of Devico sweetens the investment case for Imdex, adding a higher earnings before interest, taxes, depreciation and amortisation (EBITDA) margin business and cementing the company’s global position in the sensor and directional drilling tech markets. 

Motley Fool contributor Mitchell Lawler does not own shares in Imdex Limited.

MFF Capital Investments Ltd

What it does: MFF Capital is a listed investment company (LIC) that invests in shares from around the world on behalf of its investors.

By Sebastian Bowen: MFF Capital stock is on my radar this April. Even though it’s hardly a household name, MFF has a long history of delivering solid performance and a rising dividend.

This LIC is helmed by the venerable and veteran fund manager Chris Mackay. It usually only invests in US shares, making it a great addition to any ASX portfolio from a diversification standpoint. 

But I also like MFF for its Buffett-style investing and tendency to only buy top-tier shares to hold for the long term. At present, some of its holdings include Mastercard, Amazon, and American Express.

MFF has also been steadily building its dividend in recent years and today offers a fully-franked yield of around 3.4%.

Motley Fool contributor Sebastian Bowen owns shares in MFF Capital Investments Ltd, Mastercard, Amazon and American Express.

Brickworks Limited

What it does: Brickworks is one of the largest brick makers in Australia and the US. Furthermore, in Australia, it operates a large masonry and roofing business and produces many other building products. Brickworks also has investments in land, industrial properties, and fellow ASX 200 stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

By Tristan Harrison: Brickworks recently reported some impressive FY23 half-year results. These demonstrated ongoing progress in its industrial property trust, with completed warehouses leading to valuation improvements and new rental profits that could possibly be used to pay higher dividends.

The business is also benefitting from the ongoing growth in the asset base of Soul Pattinson, which increases the underlying value of Brickworks.

In its H123 presentation, the company revealed it has an underlying net asset value per share of more than $35. The Brickworks share price is trading at a 36% discount to that underlying value, which I think makes it a great buying opportunity, despite the uncertainty caused by higher interest rates.

Motley Fool contributor Tristan Harrison owns shares in Brickworks Limited and Washington H. Soul Pattinson and Co. Ltd.

Technology One Ltd

What it does: Tech One is Australia’s largest enterprise resource planning (ERP) software company. It provides a global software-as-a-service (SaaS) platform used by more than 1,200 major business and government customers.

By Bronwyn Allen: It’s been a tough 12 months for ASX tech shares, yet this one has quietly risen 22% over the period. When a stock is delivering that kind of outlier performance, it’s probably worth a look.

Fairmont Equities managing director Michael Gable points out the company’s 90%-plus recurring revenue and describes it as having a “highly cash generative business model”.

Gable also likes the company’s client demographics. He says: “Around 85% of revenue is generated from the government, education and health sectors, which are highly defensive. The company has a customer retention rate of +99% and [a] very low customer churn rate.”

In FY22, Technology One achieved its 13th consecutive year of record profits. It’s got a 30% profit margin and expects that to rise to 35% by FY26.

Motley Fool contributor Bronwyn Allen does not own shares in Technology One Ltd.

Treasury Wine Estates Ltd

What it does: Treasury Wine is a global wine company that owns a collection of wine brands, including Penfolds, Beringer, Lindemans, 19 Crimes, and Wolf Blass.

By James Mickleboro: I think Treasury Wine could be a quality option for investors in April. Especially given that its shares are trading relatively flat so far this year despite the company delivering strong profit growth during the first half of FY2023.

Furthermore, with alcohol sales traditionally remaining strong even during an economic downturn, Treasury Wine appears well-placed to continue its strong form for the foreseeable future.

Goldman Sachs certainly believes this will be the case. It’s forecasting earnings before interest, tax, and self-generating and regenerating assets (SGARA) of $596 million in FY2023, $658 million in FY2024, and then $737 million in FY2025.

Goldman has a buy rating and $14.70 price target on Treasury Wine shares.

Motley Fool contributor James Mickleboro does not own shares in Treasury Wine Estates Ltd.

Woolworths Group Ltd

What it does: Woolworths is an Australian retail giant. It owns and operates the supermarket chain of the same name, along with Big W in Australia and several supermarket chains in New Zealand. The company has more than 1,400 stores across the two nations.

By Bernd Struben: With inflation still running hot and interest rates more likely to rise than fall, I believe Woolworths’ defensive qualities earn it a place on this list.

Even if Australia dips into a recession, people still need to eat and buy basic household essentials. And Woolworths is, arguably, well-placed to pass on any cost inflation.

Woolies’ half-year results also handily beat expectations. The company reported a 4% year-on-year increase in sales to $33.17 billion and a 14% increase in net profit after tax (NPAT) to $907 million.

Woolworths’ fully-franked interim dividend of 46 cents per share was up 17.9% on the previous interim dividend. The stock currently trades on a trailing yield of 2.6%.

The Woolworths share price is up 12% so far in 2023.

Motley Fool contributor Bernd Struben does not own shares in Woolworths Group Ltd.

Wesfarmers Ltd

What it does: Wesfarmers is the company behind Kmart, Officeworks, Bunnings, Priceline, and more. Beyond retailers, it operates chemical, industrial, and fertiliser businesses and even a lithium mine.

By Brooke Cooper: Australians would be hard-pressed to avoid interacting with one or more of Wesfarmers’ brands on a regular basis. And in that lies the beauty of the company, in my opinion.

The prominence and price points of many of its retail brands arguably make them ‘sticky’ and, thereby,  defensive by nature.

Wesfarmers also boasts a strong balance sheet and has a history of paying consistent dividends.

I’m not the only one who likes the look of Wesfarmers shares right now. Morgans has an add rating on the stock, slapping it with a $55.50 price target – representing a potential 11% upside to the current share price.

Motley Fool contributor Brooke Cooper does not own shares in Wesfarmers Ltd.

The post Top ASX shares to buy in April 2023 appeared first on The Motley Fool Australia.

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More reading

• Why did the Wesfarmers share price outperform the ASX 200 in March?
• Why did the Woolworths share price smash the ASX 200 in March?
• A bull market is eventually coming: One ASX stock I’d buy now and hold forever
• 2 high quality blue chip ASX 200 shares named as buys by analysts
• Analysts name 2 strong ASX shares to buy for a retirement portfolio

American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Brickworks, Imdex, Mastercard, Technology One, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Brickworks, Imdex, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Amazon.com, Mastercard, Technology One, and Treasury Wine Estates. 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 looking like a very happy end to the trading week indeed for the S&P/ASX 200 Index (ASX: XJO) so far this Friday. After rising every single session over the week so far, the ASX 200 is on track to make it five out of five today. At present, the Index has recorded a gain of 0.82%, lifting it back above 7,180 points. 

What a way to start the weekend (touch wood). But time now to turn to the ASX 200 shares that are currently topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Pilbara Minerals Ltd (ASX: PLS)

First up we have ASX 200 lithium miner and producer Pilbara Minerals. This Friday has had a hefty 20.02 million Pilbara shares swap hands as it currently stands. We haven’t heard anything out of Pilbara either today. However, we have had some love from ASX brokers that could be contributing to this volume.

As my Fool colleague covered this afternoon, ASX broker Citi has given Pilbara shares a buy rating and a price target of $4.60. But investors don’t seem inspired and have sent the Pilbara share price down by 0.5% so far to $3.97 a share. Maybe it’s this combination that has resulted in so many shares flying around.

Mirvac Group (ASX: MGR)

Next up today is the ASX 200 real estate investment trust (REIT) Mirvac Group. This Friday has seen a sizeable 21.17 million Mirvac units find a new home over the trading day thus far. This is a rather interesting case to look at. There hasn’t been much in the way of fresh news or announcements out for a while from this REIT.

So we must conclude that this volume is a result of the unit price movements of the trust itself. Mirvac has had a pretty positive day. The REIT opened at $2.09 per unit after closing at $2.07 yesterday and has gone as high as $2.10 this session. At present, Mirvac is asking $2.08 a unit, up 0.48% for the day so far.

Sayona Mining Ltd (ASX: SYA)

Our third, final and most traded ASX 200 share this Friday is another lithium stock in Sayona Mining. This session has seen a whopping 35.9 million Sayona shares find a new ASX home so far. This is another interesting case.

This morning, Sayona shares rocketed up as high as 22 cents each (up nearly 4%) after the company announced that its North American Lithium project has been restarted.

But investors seem to have gotten a major case of cold feet since, with Sayona shares now down by a nasty 2.44% at 20 cents apiece. This volatility is almost certainly behind this elevated trading volume on display here.

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

• Brokers name 3 ASX shares to buy now
• Why is the Sayona Mining share price having such a stellar end to the week?
• Piedmont Lithium share price surges 6% on ‘exciting milestone’
• ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon
• Don’t stress! The stock market is ‘a long way from a crisis’

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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ASX 200 lithium shares had a dream run over 2021 and 2022 as commodity prices soared in line with the rapidly rising global uptake of electric vehicles (EVs).

The price of lithium carbonate went from about US$5,800 per tonne in late 2020 to US$86,000 per tonne in November 2022. But then the party was over, with lithium tumbling since then to US$35,500 today.

Over this time frame, pretty much all ASX 200 lithium shares have done well. But one more so than all the others. In fact, it became a 10-bagger in just two short years.

A 10-bagger is a company whose share price has grown in value 10 times over.

And, the future of this particular lithium stock is still looking bright after the company officially transitioned from being an explorer (when all you do is spend money) to a producer (when you actually start selling your product and generating revenue) just a few months ago.

The 10-bagger ASX 200 lithium share is…

Core Lithium Ltd (ASX: CXO).

The Core Lithium share price has gone from 8 cents on 4 December 2020 to 87 cents today.

So, the lithium stock is now worth more than 10 times its value just over two years ago.

It’s a 990% gain if you prefer percentage terms.

Let’s compare this performance with other ASX 200 lithium shares over the same time frame.

• Pilbara Minerals Ltd (ASX: PLS) share price up 462% from 71 cents then to $3.99 now
• Allkem Ltd (ASX: AKE) share price up 204% from $3.97 then to $12.08 now
• IGO Ltd (ASX: IGO) share price up 153% from $5.04 then to $12.79 now
• Mineral Resources Ltd (ASX: MIN) share price up 133% from $34.56 then to $80.79 now.

Core Lithium has actually traded at a much higher price than where it is today.

The Core Lithium share price hit a peak of $1.88 in November 2022.

So, at that point Core Lithium had achieved a 2,250% gain in less than two years. And it still hadn’t made a cent from lithium sales yet!

The dubious prize of the most shorted lithium share

Could this gigantic gain explain why Core Lithium is the most shorted ASX 200 lithium share today?

From the data above, we can see some disproportionate market exuberance over ASX 200 lithium shares compared to its peers.

To clarify, short selling is where professional traders try to profit from a fall in the share price. They borrow the shares and sell them with the intention of buying them back later, when they fall, to make a profit.

About 10% of Core Lithium’s outstanding shares are currently shorted.

This is up from 1.7% this time last year when the stock was trading lower than where it is today — in the low 80-cent range.

So why do the pros think this ASX 200 lithium share is overvalued?

Where is Core Lithium at in its development?

Core Lithium is a small-cap ASX 200 lithium share with a market capitalisation of $1.6 billion.

In its 1H FY23 results released this month, Core Lithium reported a $9.2 million loss.

The company sent its first shipment of lithium — worth about $20 million — to China in January. This was Core Lithium’s first revenue event.

As my Fool colleague Brooke recovered, the company achieved its first spodumene concentrate production in late February.

In early March, drilling results led to a more than doubling of the mineral resource estimate at the BP33 deposit within the broader flagship Finniss Lithium Project.

Then came a milestone sales agreement last week.

What do the experts say about the Core Lithium share price?

Well, earlier this month, Macquarie was optimistic on the Core Lithium share price. It maintained an outperform rating on the ASX 200 lithium share with an upgraded 12-month price target of $1.50.

The price target upgrade came after Core Lithium upgraded its resource estimate for Finniss.

Goldman Sachs retained its sell rating and a 90-cent share price target following the same news.

It said BP33’s upgrade only boosted the Finniss project’s total mineral resource estimate by between 20% to 30%. It also noted that more than half of the extra resources are more than 400 metres deep.

The broker said:

A significant increase to the updated resource base remains required to underpin fundamental valuation, in our view, where new developments are unlikely to come online in time to benefit from the current pricing environment.

The post Which ASX 200 lithium share has been a 10-bagger in two years? appeared first on The Motley Fool Australia.

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More reading

• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Short interest in Core Lithium shares is growing. Is this a red flag?
• Which ASX lithium shares could be at risk of a short attack?
• Is the lithium price now on the way back up?
• Why the outlook for ASX lithium shares could be ‘very favourable’

Motley Fool contributor Bronwyn Allen has positions in Allkem, Core Lithium, and Macquarie Group. 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 positions in and has recommended Macquarie 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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