Category: Stock Market

On Monday, the OZ Minerals Limited (ASX: OZL) share price was the star of the show.

The copper miner’s shares rocketed 35% higher to end the day at $25.59.

Why did the OZ Minerals share price rocket higher?

Investors were bidding the OZ Minerals share price higher after the company confirmed that it had received and rejected a non-binding takeover approach from BHP Group Ltd (ASX: BHP).

The Big Australian tabled an offer of $25.00 per share, which BHP’s CEO, Mike Henry, described as representing “compelling value and certainty” for shareholders.

However, the OZ Minerals board didn’t see things the same way. They rejected the offer on the belief that it “significantly undervalues OZ Minerals.”

What’s next?

Well, the good news for shareholders is that one leading broker believes that OZ Minerals is “still in play.”

According to a note out of Bell Potter, its analysts believe that an improved offer could be on the way from BHP or even from a second suitor. It commented:

In our view this puts OZL completely in play and, with an open register dominated by non-strategic institutional investors, we believe the chances of completion of the acquisition of OZL are high. We also believe this will be seen as an initial offer from BHP and that institutions will want to be compensated for the lack of large-cap investable copper producer options on the ASX.

In the first instance, we expect a higher cash bid from BHP as the deal makes strategic sense and offers production growth in a secure jurisdiction. We also believe the scarcity of comparable assets in comparable jurisdictions makes the chances of a competing counter-offer reasonable.

However, despite the potential for an improved bid, the broker has downgraded OZ Minerals’ shares to a hold rating with a $25.00 price target. It concludes:

[T]he risk-adjusted potential upside is insufficient for us to maintain a Buy rating and we downgrade to Hold, with a strategy to see through to completion of an all-cash acquisition of OZL by BHP or a competing bidder at the current offer price or higher.

The post OZ Minerals ‘completely in play’: Broker on BHP takeover bid 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

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher
• ASX copper shares explode by up to 34% following BHP takeover bid
• Why is the Copper Mountain share price surging 30% on Monday?

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/LpnW18R

With the tech sector still down materially since the start of the year, now could be an opportune time to consider an investment.

But which tech shares should you buy? Two highly rated ASX tech shares that Bell Potter has named as buys are listed below. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is Life360. It is the company behind the world’s leading real time, location-sharing app which is used by over 30 million users.

Bell Potter likes the company due to its huge total addressable market and material cross selling opportunities. The broker is also expecting its strong growth to continue in FY 2022. It recently commented:

We expect the core business of Life360 to have another strong quarter in 2Q2022 even though Q2 is traditionally not a strong quarter for the company. We for instance forecast global paying circles and AMR (excl. Jiobit and Tile) increase 40% and 46% y-o-y in Q2 which is not dissimilar to the growth rates achieved in each of the last three quarters. These forecasts are supported by the strong data for April provided at the AGM, the continued strong revenue/store/download data for the app in the US and also the good momentum in the business.

And while Life360 isn’t yet profitable, Bell Potter highlights that the company is “expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.”

Bell Potter has a buy rating and $7.50 price target on the company’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX tech share that could be in the buy zone is TechnologyOne.

Bell Potter is very positive on the enterprise software provider due to its shift to a software as a service (SaaS) business model. Its analysts expect this to underpin stronger margins and stellar earnings growth in the coming years.

The broker explained:

The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

Last week, Bell Potter retained its buy rating and lifted its price target on the company’s shares to $14.25.

The post Here are 2 excellent ASX tech shares a top broker says are buys appeared first on The Motley Fool Australia.

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

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

More reading

• These 3 ASX tech shares had a cracking day on the ASX today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Broker tips TechnologyOne share price to shoot 15% higher
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended TechnologyOne Limited. 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/JWekM2f

One leading broker thinks that the Qantas Airways Limited (ASX: QAN) share price could rise strongly in FY23.

Despite the worst of the COVID-19 impacts fading into the distance for Qantas, the ASX airline share is still seeing elevated volatility. Over the past two months, the Qantas share price is down around 15%.

Qantas has experienced some difficulties in servicing pre-COVID levels of demand as its planes get back in the sky again.

According to reporting by The Age, Citi analyst Samuel Seow has said Qantas needs to improve its performance amid its ongoing operational problems. However, employing more staff will come at a higher cost.

But, despite these issues, some experts think that Qantas shares are an opportunity.

UBS is optimistic about the Qantas share price

One broker that particularly likes the ASX airline share is UBS.

According to reporting by The Australian, UBS rates Qantas as a buy, with a price target of $6.55. That implies a possible rise of around 40% over the next 12 months.

The broker noted the Qantas share price has dropped in recent weeks. UBS suggested the decline was largely because investors may be worried about what an economic downturn could do to the airline as a result of inflation as well as higher interest rates.

UBS suggested that the airline may well underperform in a recession. But, UBS said:

However if, as we expect, a less severe ‘soft landing’ macro scenario plays out for Australia, then QAN offers strong valuation upside and on the balance of probabilities we see QAN as compelling at its current price.

We think the downside is less severe because we expect Qantas earnings to be more resilient under a downturn scenario today versus previous cycles.

This view is based on the different trading context – pent-up demand, time to adapt, less intense competition – and a different-looking Qantas itself – lower fixed costs, more capex flexibility, higher mix of income from loyalty – such that Qantas’ strategy is more likely to match capacity with demand to sustain profitable fares and loads, rather than grow aggressively and discount fares to fill seats.

Valuation

UBS estimates suggest that Qantas is going to return to profitability in FY23.

If the ASX share is able to generate the expected earnings, then it is valued at 15 times the projected earnings for the 2023 financial year.

The post ‘Downside is less severe’: Why some brokers are still bullish on the Qantas share price appeared first on The Motley Fool Australia.

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

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

More reading

• Qantas share price descends as management recruited for ground-handling work
• Brokers name 3 ASX shares to buy today
• Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher
• ‘Higher costs and lower capacity’: Why this broker tips the Qantas share price to nosedive
• Are Qantas shares worth buying ahead of this month’s earnings result?

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 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/eQAVr1Z

This month is reporting season, so there will be some price movements, at least in individual ASX shares.

Armytage Private chair Lee IaFraté this month has his eyes on a pair of stocks that fit his “conservative” and “fundamental” investment approach.

“Avoid the noise,” he told Reach Markets.

Share price already bounced, but this is just the start

Four-wheel drive accessories provider ARB Corporation Limited (ASX: ARB) has performed handsomely since the 1980s for long-term investors.

But after dropping 40% this year, IaFraté reckons there is excellent value there — with the challenges it has faced this year not really its own doing.

“It has a cult following worldwide,” he said.

“Oil prices have gone up — that didn’t help the story. Also, supply didn’t help the story.”

IaFraté sees upside for those willing to pick it up at a discount right now.

“This stock has been sold down… [but] it’s one of our COVID-recovery stories, going into 2023,” he said.

“It’s had a nice little bounce so far, but this stock will continue to recover.”

The market dominance is undeniable for IaFraté.

“It’s effectively a monopoly. And we love monopolies.

“So if you think the world isn’t going to end, and people might start travelling and spending again, this is our number one pick.”

ARB is reporting its results on 16 August.

A ‘sleeper’ stock pick

IaFraté also loves wealth management software maker Praemium Ltd (ASX: PPS).

“There have been two attempts of takeover here,” he said.

“Third time lucky — they’ve sold the international business, they’ve returned a five-cent dividend just recently.”

Praemium is due to report its numbers on Monday, but IaFraté pointed out there is another important catalyst at the end of the month.

“The buyback starts at the end of August… They’ll buy 10%, which is about 52-odd million shares,” he said.

“We think that alone should start to see some price appreciation.”

With the share price having dived 57% in 2022, IaFraté reckons even the cynics would have to admit there is value.

“So even the most sceptical, miserable person alive thinks, gee, there might be 10% or 15% in this one,” he said.

“We suspect there will be — they’re now back to solid profits, they’re focused just purely on the Australian operation. They’re run by a very, very excellent quality management team.”

For IaFraté’s team, Praemium is “a sleeper” for August.

“So if you’ve got some spare coin, that’s not a bad one to have.”

The post ‘Cult following’: Expert names 2 ASX shares worth buying in August 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

• 2 ASX shares ready for growth in FY2023: expert
• Food, money and travel: 3 ASX shares experts rate as buys right now

Motley Fool contributor Tony Yoo 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 Praemium Limited. The Motley Fool Australia has recommended ARB Corporation Limited and Praemium Limited. 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/njIkFYT

Yes, the S&P/ASX 200 Index (ASX: XJO) has certainly bounced 9% over the past seven weeks.

But due to the ugly drops in the first half of this year, there are still plenty of tempting bargains out there if you know where to look.

Here is a pair of such ASX shares to buy right now, as suggested by Medallion Financial Group advisor Stuart Bromley.

‘Significant discount’ for software company

Kiwi software provider Xero Limited (ASX: XRO) watched in horror over the first half of 2022 as its share price halved.

However, like many growth stocks, it has rallied the past few weeks to be more than 22% up over July and August.

But that still means it is down 35.8% for the year so far.

For Bromley, this means there’s still a buying opportunity for Xero.

“The stock is trading at a significant discount to prior highs,” he told The Bull.

“This accounting software provider was sold down in the past six months, along with many other stocks in the technology sector.”

Bromley reminded investors that customers “tend to stick” with Xero once they have switched over, which is understandable for accounting software.

Small businesses don’t have the appetite to constantly spend time and money to convert their books over to a different system. Big companies don’t either, to be frank. 

“Xero has more than 3 million subscribers and continues to build momentum,” said Bromley.

“We like the business, as it’s capital light and scalable.”

The Motley Fool reported over the weekend that Goldman Sachs also believes in the “stickiness” of Xero’s software.

“The broker has a buy rating and $113.00 price target on Xero’s shares,” wrote James Mickleboro.

That makes it a 20% upside from the current level.

Upside for when the economy improves

Unlike Xero, Aeris Resources Ltd (ASX: AIS) shares haven’t even had a second-half revival.

All up it’s now worse than half the valuation at the start of this year.

But Bromley likes the look of Aeris Resources now that investment company Washington H Soul Pattinson and Co Ltd (ASX: SOL) is entangled in its affairs.

“This copper and gold miner recently acquired Round Oak Minerals from Washington H Soul Pattinson. The transaction allays fears about AIS mine life, in our view,” he said.

“Washington H Soul Pattinson becomes the biggest shareholder in Aeris, which is positive.”

Aeris produces copper, which dips in price when the outlook for the economy is negative.

“We expect the Aeris share price to recover when copper prices rise and the economy improves,” said Bromley.

“More upside potential exists if the company delivers positive exploration results.”

Aeris will deliver its financials on 25 August.

The post ‘Capital light and scalable’: Expert picks 2 ASX shares to buy now while CHEAP 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

• 5 things to watch on the ASX 200 on Tuesday
• Nickel Industries share price slips on $225 million debt capital raise
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Now’s the time to play defense if you have retirement on the horizon

Motley Fool contributor Tony Yoo has positions in Washington H. Soul Pattinson and Company Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Xero. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited 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/n5E0hAT

Are you looking for some dividend options for your income portfolio this week? If you are, then take a look at the two ASX dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

Dexus Industria, which was formerly known as APN Industria, is an industrial and office property company with a focus on properties that provide functional and affordable workspaces for businesses.

Morgans is positive on the company despite rising funding costs. On Monday, the broker retained its add rating on the company’s shares with a trimmed price target of $3.28.

Its analysts also continue to forecast attractive dividend yields in the near term. For example, the broker is expecting dividends per share of 17.3 cents in FY 2022 and 16.1 cents in FY 2023. Based on the current Dexus Industria share price of $2.87, this will mean yields of 6% and 5.6%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a good option for income investors is banking giant Westpac.

Australia’s oldest bank is currently going through a major cost cutting programme that aims to reduce its cost base materially in the coming years.

And while the team at Goldman Sachs believe the bank’s targets are too ambitious and won’t be fully achieved, they still expect cost reductions that will be big enough to boost its earnings meaningfully.

In addition, the broker believes Westpac is well-placed to benefit from rising rates. Particularly given the relative lack of domestic deposit repricing that has been seen to date following recent rates cash rate rises.

Goldman has a conviction buy rating and $26.12 price target on the company’s shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 cents in FY 2023. Based on the current Westpac share price of $22.07, this will mean yields of 5.6% and 6.1%, respectively, over the next two financial years.

The post Analysts say these ASX dividend shares are top buys 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

• Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  
• 2 ASX dividend shares that experts rate as buys
• Can Westpac shares deliver a competitive dividend yield and 20% upside in FY23?
• Broker says Westpac share price ‘offers the most upside of the banks’
• How are ASX 200 bank shares responding to the RBA rate increase?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Westpac Banking Corporation. 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/E0jnuY6

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose 5 points to 7,020.6 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to open the day lower on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 13 points or 0.2% lower. On Wall Street the Dow Jones rose 0.1%, but the S&P 500 and NASDAQ both dropped 0.1%. The latter was up as much as 1.5% at one stage.

NAB Q3 update

The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when the banking giant releases its third quarter update. According to a note out of Morgan Stanley, its analysts are expecting the bank to report a quarterly cash profit of $1.8 billion. This will be a 5.9% increase on the prior corresponding period. Elsewhere, Megaport Ltd (ASX: MP1) and REA Group Limited (ASX: REA) are due to release their full year results this morning.

Oil prices rise

It could be a decent day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher on Monday night. According to Bloomberg, the WTI crude oil price is up 1.8% to US$90.63 a barrel and the Brent crude oil price has risen 1.6% to US$96.746 a barrel. Positive economic data out of China and the United States boosted prices.

OZ Minerals ‘in play’

The OZ Minerals Limited (ASX: OZL) share price rocketed 35% higher yesterday after the miner received and quickly rejected a $25.00 per share takeover bid from BHP Group Ltd (ASX: BHP). However, the team at Bell Potter don’t believe this is the end of the story. It said: “[W]e expect a higher cash bid from BHP as the deal makes strategic sense and […] believe the scarcity of comparable assets in comparable jurisdictions makes the chances of a competing counter-offer reasonable.”

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.75% to US$1,804.20 an ounce. The softening of bond yields and the US dollar gave the precious metal a lift.

The post 5 things to watch on the ASX 200 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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Nickel Industries share price slips on $225 million debt capital raise
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and REA Group Limited. 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/VQn8Iw1

Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares that you wouldn’t ordinarily have access to.

But which ones would be top options for investors today? Listed below are three that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of the 50 largest technology companies that have their main area of business in Asia (excluding Japan). This includes the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. With these companies revolutionising the lives of billions of people in the region, they have been tipped to have bright futures.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider is the hugely popular BetaShares NASDAQ 100 ETF. It gives investors exposure to many of the most iconic companies in the world. This includes the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. BetaShares notes that with its strong focus on technology, the ETF provides diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. As its name suggests, this ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports. Among the companies that you’ll be owning a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck highlights that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 ETFs for ASX investors to buy right now appeared first on The Motley Fool Australia.

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

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

More reading

• Here’s why I prefer NDQ to these other ASX tech ETFs today
• Why I think these ASX tech shares are buys in August
• 3 ETFs for smart ASX investors in August
• Here are 2 ASX ETFs I would buy for 2022 and beyond
• 2 excellent ETFs for ASX investors in August

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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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/zk6oHPf

On any given trading day, news of at least one ASX small-cap share soaring upwards by more than 20% is likely. In fact, it’s entirely possible to see a small-cap share soar more than 50% in a day.

But are ASX small-cap shares the way to go, or should they be avoided?

Let’s take a look at one expert’s view on the smaller end of the market.

‘You don’t get bargains’: expert

Australia and the wider international markets have been on edge in recent times amid fears of a recession and pending interest rate hikes.

However, in an interview with livewire today, Forager Funds chief investment officer Steve Johnson said, “You don’t get bargains without dysfunctional markets“.

Johnson expressed his view on the market, given US and Australian sentiment in recent times, and noted some concern about small-cap shares. He said:

The smaller you get, the worse the performance has been. On the Russell 2000, an American small companies index, more than 70% of companies have seen their share price go down more than 30% from their peak.

Of those companies with market caps of less than $500 million, that drawdown has been 55%.

These waves of momentum are being driven by a significant percentage of the market that doesn’t care how much profit the business is going to make or how much it’s worth.

Johnson also likened the market to a “casino”. He added:

The rise of retail gambling, the nature of the stock market being more like a casino; I don’t think it’s been more prominent than it has in the past few years.

In today’s news, ASX small-cap share Cardno Limited (ASX: CDD) has soared more than 110% in two days on the back of price-sensitive market news.

Analysts also believe these two small-cap ASX shares, Airtasker Ltd (ASX: ART) and Serko Ltd (ASX: SKO), could have potential.

The post ‘The smaller you get, the worse the performance has been’: Should ASX small-cap shares be avoided right now? appeared first on The Motley Fool Australia.

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

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

More reading

• Guess which little-known ASX share has soared 110% in 2 days
• Experts name 2 exciting small cap ASX shares to buy with huge upside potential
• Why I think these ASX tech shares are buys in August
• Brokers name 3 ASX shares to buy today
• ‘We are benefiting from the inflationary environment’: Airtasker share price rockets 16%

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 Serko Ltd. The Motley Fool Australia has recommended Serko Ltd. 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/Pxup8Qe

The Nickel Industries Ltd (ASX: NIC) share price closed lower on Monday amid a significant debt announcement by the mineral exploration company.

Nickel Industries shares finished the day down 1.82% at $1.08 each after hitting an intraday low of $1.052 a share. They opened this morning at $1.10 each.

Let’s check what announcement the company made today.

What happened?

Nickel Industries announced it had raised US$225 million in debt capital for the Oracle Nickel Project acquisition.

The company said it had executed binding agreements for the issuing of USD $225 million worth of senior secured notes. The debt has an interest rate of 10% and will mature in August 2025.

The notes will be issued on the Frankfurt Open Market Exchange.

Part of the proceeds from the notes, along with the company’s cash reserves and future earnings from its existing operations, will be used to satisfy the company’s remaining payment obligations for the project in Indonesia. The agreement was announced in November 2021.

Nickel Industries entered a memorandum of understanding with Shanghai Decent Investment Group Co Ltd to acquire a 70% stake of the Oracle Nickel Project. It’s estimated the project will have a production capacity of 36,000 tonnes of nickel when it’s completed.

When the production of its Angel Nickel and Oracle Nickle production facilities are consolidated, the company expects a nameplate capacity of more than 100,000 tonnes of the base metal.

The Oracle Nickel Project comprises four rotary kiln electric furnaces.

The first rotary line is due to be commissioned in October this year, five months ahead of the scheduled project delivery date, the company said.

Production facilities are situated in Indonesia Morowali Industrial Park, and Halmahera Island, Indonesia. 

Nickel Industries share price snapshot

The Nickel Industries share price slipped 1.37% in a year but has shed almost 25% year to date.

Its 2022 performance is well below that of the benchmark S&P/ ASX 200 Index (ASX: XJO) which has lost 5.7% so far this year.

This coincides with a steady downturn in nickel prices on commodity markets since March this year.

At the company’s current share price, Nickel Industries has a market capitalisation of around $2.9 billion. 

The post Nickel Industries share price slips on $225 million debt capital raise 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

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Now’s the time to play defense if you have retirement on the horizon
• 4 key traits Warren Buffett uses to pick the best stocks
• Why is the Paradigm Biopharmaceuticals share price up 12% on Monday?

Motley Fool contributor Matthew Farley 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/EAScalr