Category: Stock Market

Electric vehicle (EV) sales could grow faster than expected, according to new global analysis.

ASX 200 lithium shares that may be impacted by electric vehicle demand include Core Lithium Ltd (ASX: CXO), Pilbara Minerals Ltd (ASX: PLS), and Sayona Mining Ltd (ASX: SYA).

Let’s check the latest outlook for electric vehicles.

What’s ahead?

Lithium is used in EV batteries. More demand for EV’s can weigh positive on both the lithium price and investor sentiment in lithium shares.

New analysis from EY Global tips EV sales in the US, China, and Europe to “outstrip” all other engine sales by 2030. This is three years earlier than previously forecast.

EY predicts by 2040, internal combustion engine vehicles could shrink to less than 1% of all sales. EY Global Advanced Manufacturing & Mobility Leader Randall Miller said “the EV revolution continues to gain momentum” despite finance and energy headwinds in the last 12 months.

Commenting on the outlook for multiple regions, Miller added:

In Europe, car sales in general are down and we would expect the move over to EVs to potentially struggle if the energy crisis persists. This would require more government assistance to maintain the current pace.

In China, while we expect EVs to dominate sales by 2032, we also see hybrids sustaining their market share all the way up to 2050.

In the US we see large population states leading the way, so there remains cause for optimism in meeting the 2030 target for 50% of sales being EVs. 

A recent KPMG report was also positive on EV sales, as my Foolish colleague Tristan reported yesterday. The report stated:

The pace of EV sales is increasing with nearly half of the current stock of EVs sold in the last year. But the transition away from fossil fuels will continue to require a rapid increase in the number of EVs manufactured.

Global passenger plug-in EV sales grew by 46% compared to a year ago with 1.06 million new electric cars registered globally in November, Inside EVs reported overnight.

In Australia, 33,410 new full-battery EVs were sold in the 2022 financial year, The Driven reported recently.

Core Lithium has recently shipped its maiden lithium oxide consignment from its Finniss Lithium project in the Northern Territory to a customer in China.

Pilbara Minerals produces lithium from the Pilgangoora Project in Western Australia. Pilbara recently sold two cargos of spodumene concentrate to Chinese buyers for an average price of US$7,552 a tonne.

Sayona Mining is planning production from its North American Lithium operation in 2023.

Share price snapshot

The Core Lithium share price has soared 82% in the last year.

Sayona Mining shares have rocketed 73% in the past year.

Pilbara Minerals shares have gained 10% in a year.

The post Could higher global EV sales boost ASX 200 lithium shares? appeared first on The Motley Fool Australia.

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

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

More reading

• Down 11% in a month, should I buy the dip in Pilbara Minerals shares?
• 2 ASX 200 lithium shares with dividend yields over 7%. Say, what?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Core Lithium share price soaring 4% on Monday?

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 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.

from The Motley Fool Australia https://ift.tt/kqAPQ4v

A year of robust earnings across energy and resource companies meant another solid year for ASX dividend shares in 2022.

The supply shortage of many commodities was intensified by Russia’s invasion of Ukraine and the ensuing sanctions. In turn, many companies that were able to provide the in-demand commodities were practically minting money.

Incredibly profitable years for the likes of BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), and Whitehaven Coal Ltd (ASX: WHC) supercharged the total dividends paid to shareholders last year.

However, the focus is now squarely on what awaits our dividend streams in 2023.

Growing through economic pain

Flicking through forecasts shared by analysts, opinions are divided on what this year could look like. Although, there appear to be two generally common views on S&P/ASX 200 Index (ASX: XJO) companies for this year:

• Rising costs and falling consumer spending could impact the earnings capacity of some companies
• There will still be pockets of opportunity for sustained or increased dividends

In its November edition of the Global Dividend Index report, Janus Henderson noted its belief that slower economic growth could take a toll on payout growth for some companies.

Furthermore, the asset manager highlighted the rebasing of dividends to a more sustainable payout ratio during COVID-19 as a way for companies to potentially maintain — even grow — dividends through weakening earnings.

Total dividends paid by the 10 largest ASX shares have mostly risen over the past few years, as shown above. Janus Henderson is optimistic based on lowered payout ratios.

However, only three of these ASX 200 companies currently hold a payout ratio of less than 60% — CSL Limited (ASX: CSL), ANZ Group Holdings Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG).

Which ASX dividend shares could deliver?

The Sydney-based investment management firm, Plato Investment Management, has its eyes on certain areas of the Aussie market this year.

According to Plato’s managing director, Don Hamson, the strength in resources and financials could continue in 2023. Hamson provided Woodside, BHP, and Macquarie as three ASX 200 shares with ‘strong and sustainable’ dividends in a recent note.

Additionally, Hamson said, “I think it goes without saying that favouring companies that pay fully franked dividends, where possible, in 2023 is a no-brainer.”

In the same note, the fund manager cautioned against defaulting to cash amid higher interest rates.

At first glance many retirement income investors have heralded this as a win, with term deposits and other so-called safe asset classes expected to generate stronger yields.

But they’re overlooking the elephant in the room – inflation.

The Plato team project the ASX 200 to provide investors with a 6% return in 2023 after franking credits.

The post The road ahead for ASX 200 dividend shares in 2023 appeared first on The Motley Fool Australia.

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

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

More reading

• Can income investors bank on a 7% dividend yield from ANZ shares?
• If I invest $1,000 in BHP shares now, what could my return be this year?
• Bought $1,000 of CSL shares 10 years ago? Here’s how much dividend income you’ve received
• Can ASX bank shares deliver in 2023 after higher interest rates?
• My top predictions for ASX 200 shares in 2023

Motley Fool contributor Mitchell Lawler has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia 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.

from The Motley Fool Australia https://ift.tt/vZY2mhr

The S&P/ASX 200 Index (ASX: XJO) is out of form on Tuesday. In afternoon trade, the benchmark index is down 0.3% to 7,130.1 points.

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

Lake Resources N.L. (ASX: LKE)

The Lake share price is up almost 7% to 88 cents. Investors have been buying this lithium developer’s shares after it achieved key milestones at its Kachi project. The release notes that its partner Lilac has successfully operated the Demonstration Plant for 1,000 consecutive hours and produced 40,000 litres of lithium chloride eluate before 31 December. It is now being shipped to Saltworks to be converted into lithium carbonate. After which, it will be independently tested for purity.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is up 5% to $2.03. This follows the release of the fund manager’s latest funds under management (FUM) update. According to the release, Platinum’s FUM dropped by $10 million in December to $18,165 million. Investors may have been expecting a much weaker performance from Platinum.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up 8% on $2.49. This is despite there being no news out of the medical device company. PolyNovo’s shares are now up 75% since this time last year and hit a 52-week high earlier today. This has been driven by a big improvement in the company’s performance.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price is up a further 3% to 64.2 cents. Investors have been buying the medical technology company’s shares this week following the announcement of five new contract wins. Volpara advised that the five new contracts have a combined value of NZ$12.3 million. All the contracts are for five years.

The post Why Lake Resources, Platinum, Polynovo, and Volpara shares are charging higher appeared first on The Motley Fool Australia.

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

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

More reading

• Lake Resources share price jumps 8% on ‘key milestones’ achievement
• 2 ASX All Ords shares cracking new 52-week highs on Tuesday
• Here are the 10 most shorted ASX shares
• What’s the outlook for ASX 200 lithium shares in 2023?
• Here are the top 10 ASX 200 shares 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 PolyNovo and Volpara Health Technologies. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/PxlHb0G

ASX dividend shares can be a very effective way for investors to grow another source of income.

The tricky thing about some asset classes is that they don’t generate good income. Property can require tens of thousands of dollars to start investing – for example, a $500,000 property purchase would need $50,000 just for a 10% starting deposit.

One of the best things about investing in ASX shares is that it can be done with a relatively small amount of money.

In this article, I’m referring to investing $300 per month but that could be just how much is set aside each month. Investors can choose to invest $900 each time, $2,000, or whatever other amount suits them. Saving $300 per month turns into $3,600 per year.

Share market returns

No one knows what the future holds. That’s why it takes optimism about the long term, and a bit of bravery, to invest in the ASX share market. It also helps to be patient during particularly volatile times. Some ASX dividend shares can be resilient during times like this.

But we can look to the past for insights into how the share market has previously performed. Over the past five years, Vanguard MSCI Index International Shares ETF (ASX: VGS) has returned an average of around 10% per annum, which is similar to the average share market’s return over the prior decades, so I’ll use that in building my portfolio for this idea.

If I were to invest $300 per month, and my portfolio achieved returns of 10% per annum, it would reach $57,000 after 10 years, $206,000 after 20 years and $592,000 after 30 years.

A dividend yield of 5.1% would generate $30,000 of annual dividends with a $592,000 portfolio. In this scenario, I’d only need to add $108,000 of my own money over three decades and the rest comes from compounding.

Which ASX dividend shares have a high dividend yield?

Dividend investing doesn’t necessarily mean that investors have to go for the highest yield possible. Certainly, a lower yield could be more sustainable.

An investor can mix and match different yields to make a portfolio have an average dividend yield of 5% (or more). For example, using Commsec estimates, these are some projected grossed-up dividend yields for FY24:

Wesfarmers Ltd (ASX: WES) shares could pay a grossed-up dividend yield of 5.9%.

JB Hi-Fi Ltd (ASX: JBH) shares could pay a grossed-up dividend yield of 7.1%.

Accent Group Ltd (ASX: AX1) shares could pay a grossed-up dividend yield of 9%.

Brickworks Limited (ASX: BKW) shares could pay a grossed-up dividend yield of 4.2%.

Sonic Healthcare Ltd (ASX: SHL) shares might pay a grossed-up dividend yield of 4.9%.

APA Group (ASX: APA) shares could pay a dividend yield of 5.5%.

A list of some leading ASX dividend shares might be a bit different in three decades from now, though I think Wesfarmers and Brickworks are likely to still be among the leaders because of their long-term focus in allocating money.

The post How I’d invest $300 a month in ASX dividend shares to target a $30,000 annual second income appeared first on The Motley Fool Australia.

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

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

More reading

• 1 in 7 Australians own an ETF: Are these the ones to buy?
• These could be top ETFs for ASX investors to buy in January
• 3 quality ETFs for ASX investors to buy next year
• I’d aim for a $1 million by buying just a handful of ASX shares
• Stock market correction: How I’m using this opportunity to build wealth with ASX shares

Motley Fool contributor Tristan Harrison has positions in Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, and Wesfarmers. The Motley Fool Australia has recommended Accent Group, Jb Hi-Fi, Sonic Healthcare, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/o8dxF5H

After a solid start to the day, a number of ASX lithium shares have given back their gains and are trading broadly flat.

However, the same cannot be said for the Lake Resources N.L. (ASX: LKE) share price.

In afternoon trade, the lithium developer’s shares have taken off and are up 8% to 89 cents.

Why is the Lake Resources share price taking off?

Investors have been scrambling to buy this lithium stock following the release of a positive announcement this afternoon.

According to the release, the company and its direct lithium extraction technology partner, Lilac Solutions, have achieved key milestones at the Kachi project in Argentina.

The release notes that Lilac has successfully operated the Demonstration Plant for 1,000 consecutive hours and produced 40,000 litres of lithium chloride eluate before 31 December.

The lithium chloride eluate produced by Lilac is now in the process of being shipped to Saltworks to be converted into lithium carbonate. After which, it will be independently tested for purity.

‘Significant promise’

Lake Resources’ CEO and managing director, David Dickson, said that the achievement of these milestones demonstrated the significant promise of the Kachi project. He said:

Lilac has proven to be an exceptional partner to work with in our joint pursuit of the efficient and cleaner delivery of high-quality lithium, which is in increasingly high demand by battery makers.

We are pleased with our accomplishments to date and are intently focused on the next stages of this project. Above all, we are proud of the work we and Lilac have achieved thus far to innovate the production of lithium in a way that is inclusive and respectful of the local communities in which we operate, and protective of the environment.

This sentiment was echoed by Lilac Solutions’ CEO, David Snydacker. He commented:

Lilac’s ion exchange technology is revolutionizing lithium extraction, and we are very excited to ship these first truckloads of lithium chloride produced on site at the Kachi project. Increasing the global supply of lithium is critical for our energy transformation, and we are proud of our progress in building an environmentally- and socially responsible lithium supply chain. We look forward to future achievements alongside Lake Resources.

The post Lake Resources share price jumps 8% on ‘key milestones’ achievement appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the 10 most shorted ASX shares
• What’s the outlook for ASX 200 lithium shares in 2023?
• Here are the top 10 ASX 200 shares today
• ASX 200 lithium shares lead the market higher on Friday
• The Lake Resources share price sank 21% in 2022. What now?

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.

from The Motley Fool Australia https://ift.tt/M2Q1YZo

One of the most dramatic moves on the US markets in 2022 was the collapse of the Tesla Inc (NASDAQ: TSLA) share price.

Tesla shares started the year at US$352.26 each. But by the end of last month, the electric vehicle and battery manufacturer was down to just US$123.18 a share. That’s a loss for Tesla stock of just over 65% for the year.

Ouch.

Tesla’s 2022 performance was quite a change of pace for a company that has previously given investors mindblowing gains. Tesla was up more than 500% in 2020 and up another 50% or so in 2021. 

So with a selldown of this magnitude, are we looking at the mother of all buy-the-dip opportunities? Or is Tesla just another falling knife right now?

Well, let’s get into why the Tesla share price had such a rough year. It was undoubtedly partly due to rising interest rates in the US.

Just like Australia, the United States has seen a very sharp increase in interest rates over the past 12 months, as the US Federal Reserve moves to clamp down on inflation.

This has been especially painful for most growth companies, not just Tesla. Name any prominent tech stock listed in the US, and chances are it had a rough year in 2022.

Has Elon Musk’s Twitter antics damaged the Tesla share price?

But not helping Tesla’s cause was its CEO and flagbearer, Elon Musk. Musk has had, well, a very interesting 12 months, to put it lightly. Not only did he buy social media platform Twitter outright, but he has also raised many eyebrows with his new policies championing free speech at the company.

Many investors have worried that Musk’s preoccupation with Twitter has seen him neglect Tesla, as well as potentially alienate its affluent customer base. This probably explains why the Tesla share price’s most painful months were in the back half of 2022.

And yet I would argue that Tesla’s brightest days are still in front of it. Despite the issues in its leadership team, the company still posted a 40% increase in vehicle deliveries in 2022 to 1.31 million, with production up 47% to 1.37 million.

That’s breakneck growth for any company, but it is especially impressive for a capital-intensive vehicle manufacturer like Tesla. 

Tesla is also preparing to launch its much-anticipated ‘cybertruck’ in 2023, which could give its numbers an even bigger boost in years to come.

Trucks (or utes as we call them here) are a segment of the market that Tesla doesn’t currently address, so this could see its market share expand even further. Ditto with its rollout of the Tesla Semi which is currently underway.

So all in all, I think that the current Tesla stock price, now trading at its lowest level in almost three years (with a current price-to-earnings (P/E) ratio of 36.9), is a compelling buying opportunity considering the growth runway that remains in front of this company.

The post Tesla share price correction: A chance to get rich? appeared first on The Motley Fool Australia.

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

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

More reading

• What can ASX lithium share investors learn from Tesla discounting its cars?
• This simple investing plan could save the retirement plans of millions of retail investors

Motley Fool contributor Sebastian Bowen has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

from The Motley Fool Australia https://ift.tt/erHukLM

The Pilbara Minerals Ltd (ASX: PLS) share price has sunk lower in the last month, but could this be a buying opportunity?

Pilbara shares have fallen 11% since market close on 9 December and are currently fetching $3.97. In today’s trade, Pilbara shares are up 1.02%.

So what is the outlook for the Pilbara Minerals share price?

Could Pilbara go higher?

Analysts at Citi have upgraded the Pilbara Minerals share price to a buy with a $4.70 price target, according to The Australian. This implies an upside of about 18%.

Pilbara is planning to pay its maiden dividend in the 2023 financial year. Macquarie analysts are tipping Pilbara to pay a dividend of 34 cents per share this year.

Pilbara is producing lithium from the Pilgangoora Project in the Pilbara region of Western Australia.

My Foolish colleague Tristan reported yesterday that seven analysts rate it as a buy, three as a sell and six as a hold. Goldman Sachs has a hold rating on Pilbara, also with a $4.70 price target.

Despite falling in the last month, Pilbara shares have leapt nearly 5% since market close on 30 December.

The Office of the Chief Economist is tipping spodumene prices to rise from an average of US$2,700 a tonne in 2022 to US$4,010 a tonne in 2023 before falling to US$3,130 a tonne in 2024. Lithium hydroxide prices are forecast to rise from US$39,900 in 2022 to US$61,200 in 2023 before sliding to US$48,500 a tonne in 2024.

Pilbara achieved an average price of US$7,552 per dry metric tonne (dmt) in its latest spodumene concentrate auction on the digital Battery Metals Exchange in December.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has jumped 11% in the last year.

Pilbara has a market capitalisation of about $11.9 billion based on the current share price.

The post Down 11% in a month, should I buy the dip in Pilbara Minerals shares? appeared first on The Motley Fool Australia.

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

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

More reading

• 2 ASX 200 lithium shares with dividend yields over 7%. Say, what?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• What is the outlook for the Pilbara Minerals share price in 2023?
• What’s the outlook for ASX 200 lithium shares in 2023?

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 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.

from The Motley Fool Australia https://ift.tt/tZz5Ls7

Tuesday is shaping up to be rough one for many All Ordinaries Index (ASX: XAO) shares. Fortunately, though, not all companies that call the index home are suffering.

Indeed, two are soaring into the green to crack new 52-week highs.

Right now, the All Ords is down 0.2%, trading at 7,137.1 points.

So, which stocks are bucking the trend to reach long-forgotten heights? Let’s take a look.

2 All Ords shares trading at 12-month highs

The first All Ords share posting a new 52-week high today is medical device developer Polynovo Ltd (ASX: PNV).

It’s soaring 7.83% at the time of writing to trade at $2.48. However, earlier today, it hit $2.50 – marking an 8.7% gain and the highest the stock has been in 18 months.

Interestingly, there’s been no news from the healthcare favourite to explain today’s rise.

In fact, the last time the market heard price-sensitive news from Polynovo was in mid-December when the company announced the end of a $53 million capital raise – offering new shares for $1.90 apiece.

Thus, those who got in on the raise have already seen a 30% return on investment (ROI).

Joining Polynovo in posting a new 52-week high today is fellow All Ords healthcare share Aroa Biosurgery Ltd (ASX: ARX).

It reached its highest point since October 2021 earlier today, leaping to $1.175 – 2.2% higher than its previous close. It has since slipped slightly to $1.1725, representing a 1.96% gain.

Also, like Polynovo before it, the company hasn’t released any news to explain its latest gain.

The last piece of price-sensitive news from Aroa Biosurgery, detailing its half-year performance, dropped in late November.

Then, the company announced its product sales grew 44% year-on-year while its normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) was positive.

The post 2 ASX All Ords shares cracking new 52-week highs on Tuesday appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Bell Potter names the ASX healthcare shares to buy in 2023

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 positions in and has recommended PolyNovo. 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.

from The Motley Fool Australia https://ift.tt/JCtoRNk

I love investing in ASX shares that provide mission-critical products. Companies with products so deeply embedded and vital in their customers’ operations that they’re hard to give up.

These products are sticky, contributing to high levels of customer retention and recurring revenue. This stickiness can also act as leverage for lucrative pricing power.

With that in mind, let’s take a look at three ASX 200 tech shares that, in my view, provide mission-critical products.

WiseTech Global Ltd (ASX: WTC)

Kicking things off, WiseTech is a leading provider of freight forwarding software through its flagship CargoWise product.

CargoWise is an all-in-one logistics platform used by 10 of the top 25 global freight forwarders.

Companies like Toll and DHL rely on CargoWise to execute complex logistics transactions and manage their freight operations from a single platform.

Demonstrating its stickiness, CargoWise boasts an enviable customer retention rate of 99%. In fact, the software platform has recorded less than 1% customer attrition every year for the last 10 years.

Due to the nature of the product, it’s no surprise that a large majority of WiseTech’s revenue is recurring. This figure sat at 89% in FY22, contributing to WiseTech’s stable and predictable revenue streams. 

Xero Limited (ASX: XRO)

Next up is Xero, a pioneer of cloud-based accounting software that plays an integral role in the operations of its small to medium-sized business customers.

Xero is best known for its bookkeeping solution. But it can also handle everything from invoicing and payroll to inventory, quotes, and purchase orders.

This entrenches Xero into its customers’ workflows, adding more value than the monthly subscription fees it extracts.

These subscription fees have only been heading higher over time, with minimal effect on customer retention. In other words, Xero has flexed its pricing power to great effect, with a consistent stream of new features also helping customers to stomach the steeper fees.

In Xero’s most recent 1H23 results, the ASX 200 tech share reported average revenue per user (ARPU) of NZ$35.30, up from NZ$31.32 in the prior corresponding period. Meanwhile, churn remained stable at 0.91% of monthly recurring revenue.

As I’ve highlighted previously, I believe Xero is a business with terrific unit economics.

Altium Limited (ASX: ALU)

Altium rounds out this trio of ASX 200 tech shares that provide mission-critical products.

Coincidentally, all three of these companies are part of the once-infamous ‘WAAAX’ group of ASX tech shares.

Altium provides software for the design of printed circuit boards (PCBs). 

PCBs are those little boards (most commonly green in colour) that house a bunch of electronic components, such as chips and resistors.

These boards sit inside almost every electronic device, from cars and home appliances to mobile phones and manufacturing equipment. 

As you can imagine, there are a lot of intricacies involved in designing a board that mechanically supports and electrically connects a range of different components. 

This is where a PCB design software tool, such as Altium’s flagship Designer product, enters the fray. 

Altium considers Designer as the default software tool of choice for electrical engineers, from those studying at university to those working at world-class companies, such as Tesla Inc (NASDAQ: TSLA) and ResMed CDI (ASX: RMD).

So not only is Altium Designer a mission-critical product, but it’s also an industry-leading tool that benefits from a reinforcing loop. University students are trained to use Altium’s products, and companies require their engineers to be proficient with these products, which only reinforces Altium’s prominent position.

The post 3 ASX 200 tech shares with mission-critical products appeared first on The Motley Fool Australia.

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

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

More reading

• The Xero share price tumbled 50% in 2022. Can 2023 bring a recovery?
• My top predictions for ASX 200 shares in 2023
• 5 things to watch on the ASX 200 on Monday
• Can ASX tech shares rise from the ashes in 2023?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Cathryn Goh has positions in Altium, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, ResMed, Tesla, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hUOWFsN

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing, the benchmark index is down 0.2% to 7,137.1 points.

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

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 8% to 67.5 cents. This follows news that the semiconductor company is raising funds. Brainchip is issuing US based alternative investment group LDA Capital with 30 million shares at a discount to be decided in the future. Brainchip also wants the option to issue an additional 10 million shares, but this will be subject to approval. LDA is not required to hold the shares and can sell them for a quick profit.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 3.5% to $4.57. Investors have been selling this insurance giant’s shares since the announcement of its 2023 reinsurance program on Monday, which revealed a jump in reinsurance prices. In response, this morning Morgan Stanley retained its underweight rating and $4.20 price target on its shares.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is down almost 5% to $24.98. The catalyst for this has been the retail conglomerate’s shares trading ex-dividend this morning for its upcoming dividend payment. The Peter Alexander and Smiggle owner declared a fully franked final and special dividend totalling 79 cents per share with its full year results. This will be paid to eligible shareholders later this month on 25 January.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is down a further 5% to $6.52. Investors have been selling this radiopharmaceuticals company’s shares this week following the release of a trading update. Although Telix reported a 39% quarter on quarter increase in unaudited revenue to $76.8 million, investors appear to have been expecting a stronger performance.

The post Why Brainchip, IAG, Premier Investments, and Telix shares are sinking today appeared first on The Motley Fool Australia.

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

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

More reading

• Here’s why the Brainchip share price is sinking 6% today
• 5 things to watch on the ASX 200 on Tuesday
• Why AMP, Computershare, IAG, and Telix shares are dropping today
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares are leading the market higher today

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. 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 Insurance Australia Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/qS2cZAd