Category: Stock Market

The Liontown Resources Limited (ASX: LTR) share price is defying the market weakness and racing higher.

In morning trade, the lithium developer’s shares are up 17% to $1.25.

Why is the Liontown share price racing higher?

Investors have been bidding the Liontown share price higher today after the company provided an update on an offtake agreement.

According to the release, the company has secured a third foundational offtake agreement with leading global automaker Ford.

The release explains that Ford and Liontown have executed a definitive binding full-form offtake agreement for the supply of up to 150,000 dry metric tonnes (dmt) of spodumene concentrate per annum for an initial term of five years. This will start from the commencement of commercial production in 2024.

Funding agreement and final investment decision

In addition to the offtake agreement, Ford and Liontown have executed a binding full-form funding facility agreement.

The two parties have agreed to $300 million debt facility that will be used for the development of the Kathleen Valley Lithium Project.

Management notes that this funding facility, together with the proceeds from Liontown’s $463 million capital raise in December, paved the way for the project’s approval by the board today.

One slight negative, though, is that the capital cost of the project is expected to be greater than previously forecast.

Instead of $473 million, the cost is expected to be $545 million. Management advised that this increase is driven primarily by optimisation and expansion of the FEED scope across a range of areas and general cost escalation.

Though, this could still change. The release notes that this is the company’s current best estimate. Liontown continues to tender and award major construction, equipment, and operational packages of work.

‘A momentous milestone’

Liontown’s managing director and CEO, Tony Ottaviano, was delighted with the agreements. He commented:

The signing of our third and final foundational offtake agreement is a momentous milestone for Liontown and the Kathleen Valley project, with approximately 90% of Kathleen Valley’s start-up capacity now under secured long-term binding offtake agreements.

Our disciplined approach to our offtake strategy has enabled us to build a customer base of Tier-1, globally significant customers in the EV battery supply chain, validating Kathleen Valley’s status as a globally relevant lithium asset.

In addition to the offtake, the A$300 million funding facility from Ford, together with the capital raised last year, means that we have secured commitments for the funds required to support the full commercial development of Kathleen Valley through to first production.

Ford’s vice president of EV Industrialization, Lisa Drake, believes these agreements will help the automaker reach its bold electric vehicle goals. She commented:

Ford continues working to source more deeply into the battery supply chain to meet our goals of delivering more than 2 million EVs annually for our customers by 2026. This is one of several agreements we’re working on to help us secure raw materials to support our plan to deliver EVs for customers around the world and meet our environmental, social and governance commitments.

The post Liontown share price jumps 17% following ‘momentous milestone’ appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Liontown Resources share price rockets 9% amid broker’s positive lithium outlook
• Guess which sector is delivering the biggest gain across the ASX 200 today
• Here are the top 10 ASX shares today
• Could ASX lithium shares be set for a boost?

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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ASX dividend shares are known for paying outsized income to investors.

But, there’s a significant difference between a dividend yield of 5% and something that pays more than 10%.

Sometimes yields can be mirages because they may be old yields that are about to be cut.

However, the two businesses below are predicted by experts to pay huge dividend yields in the next financial year.

So, let’s have a look at the two ASX dividend shares that could pay beastly income.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less is a retailer of apparel that aims to offer quality products at a good price. The company says that it has a vertical retail model, with 86% of sales from its own labels.

Best & Less suggests there is a market opportunity as customers migrate to ‘value’ products. Management believes the business is positioned to benefit from the current inflationary environment.

The ASX dividend share describes its baby products as a key driver of growth as it establishes long-term relationships based on “creditability and trust”. As children grow, Best & Less can offer more products, lengthening the connection with those customers.

The company wants to grow its market share of baby, kids, and women’s apparel. Best and Less is also aiming to increase its gross profit margin and store count.

According to Macquarie, the business could pay a grossed-up dividend yield of 18.7% in FY23.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is another ASX retail share that says it’s the market leader in a growth sector. It’s focused on premium products in DIY grooming, personal care, and hair and beauty appliances for men and women. It boasts that many key brands and products are exclusive to Shaver Shop. Exclusive products generate more than 50% of sales and 60% of gross profit.

The ASX dividend share has built a significant e-commerce presence. It says that around 35% of total sales are online, though it does have around 120 stores across Australia and New Zealand as well.

According to Shaver Shop, the Australia-New Zealand beauty and personal care market is expected to grow from approximately $10 billion to around $12 billion by 2026.

Hair cutting and men’s shaver sales have returned to growth in the second half of FY22. Total sales were up 5.7% to 31 May 2022. In FY22, it’s expecting to generate at least $16.25 million of net profit after tax (NPAT).

In terms of the dividend, Ord Minnett thinks that Shaver Shop is going to pay a grossed-up dividend yield of 14.7% in FY23 and that it’s valued at seven times FY23’s estimated earnings.

The post Dividend beasts: Here are 2 ASX dividend shares with expected yields over 10% appeared first on The Motley Fool Australia.

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More reading

• Why Boss Energy, Crown, Magellan, and Shaver Shop shares are rising
• Could this ASX All Ords share be set to benefit from higher living costs?
• I think these 2 high-yield ASX dividend shares are buys in June

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tyro Payments Ltd (ASX: TYR) share price has come under significant pressure on Wednesday.

In morning trade, the payments company’s shares are down 20% to a new record low of 62 cents.

Why is the Tyro share price sinking?

As well as broad weakness in the tech sector, the Tyro share price has been hit by news that its CEO is stepping down.

According to the release, the company’s CEO and managing director, Robbie Cooke, has provided six months’ notice, concluding close to five years of leadership at Tyro.

A separate announcement out of Star Entertainment Group Ltd (ASX: SGR) reveals that Cooke is joining the casino and resorts operator as its new leader.

Tyro’s board has revealed that it will immediately commence an executive search process, canvassing both internal and external candidates to identify a suitable CEO successor. Cooke has committed to work with Tyro’s board to ensure a smooth transition.

Tyro’s chair, David Thodey, commented:

The Board and I would like to thank Robbie for his contribution to our business and wish him all the best for his next chapter. We remain committed to providing outstanding customer service to our merchants and partners through innovative products and technology, driving operating leverage, and accelerating our move to become free cash flow positive.

Commenting on his appointment as Star’s new CEO, Mr Cooke said:

I am delighted to have the opportunity to re-join the gaming and hospitality industry, which is a passion of mine and where I have spent the majority of my career.

There are challenges for The Star that have been well documented. They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance. This is also an incredibly resilient business with thousands of team members providing the commitment, enthusiasm and inspiration that helps deliver outstanding customer service.

The post Tyro share price sinks 20% to new record low, what’s going on? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares rated as strong buys by several brokers
• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 Carsales.Com Ltd (ASX: CAR) share price has returned from its trading halt and dropped deep into the red.

In morning trade, the auto listings company’s shares are down by a sizeable 15% to $17.70.

This leaves its shares trading within touching distance of its 52-week low of $17.45.

Why is the Carsales share price sinking?

The Carsales share price is sinking today after the company announced the successful completion of the institutional component of its fully underwritten pro-rata accelerated non-renounceable entitlement offer.

According to the release, the company has raised approximately $842 million at a 14.5% discount of $17.75 per new share. The release notes that the offer was well supported with a take-up of 90% by eligible institutional shareholders.

Carsales will now push ahead with the retail component of the entitlement offer, which is expected to raise approximately $365 million. This will bring the total raised from the offer to approximately $1,207 million.

Why is Carsales raising funds?

The proceeds from the capital raising will be used to acquire the remaining 51% interest in Trader Interactive for US$809 million, or approximately A$1,172 million.

This acquisition price values Trader Interactive on a 100% enterprise value basis at US$1.9 billion or A$2.75 billion.

Management expects the deal to generate highly attractive financial returns for shareholders, with low double-digit earnings per share accretion expected in the first full year of ownership and further upside expected thereafter.

Carsales’ CEO, Cameron McIntyre, was pleased with the success of the offer. He commented:

We are very pleased by the support demonstrated by institutional shareholders for the entitlement offer and their endorsement of the acquisition. We look forward to working with the Trader Interactive team to capture growth potential and realise value for our shareholders.

The post Why is the Carsales share price crashing 15% lower today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• How has the Carsales share price performed after past acquisitions?
• Why is the Carsales share price frozen on Monday?
• 2 ASX shares to buy to win the rest of 2022: expert
• These were the best performing ASX 200 shares last week

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 recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Exchange-traded funds (ETFs) can be very useful for investing in shares. ETFs make it to invest passively, get access to different industries or invest in different geographic markets.

One of the most popular ETFs is one that gives access to 500 of the biggest companies in the United States, called iShares S&P 500 ETF (ASX: IVV). That’s not a bad choice at all.

But after the recent volatility, I think there are two that could be even more interesting. One provides more diversification in my opinion. While the other may achieve more growth in the coming years because of the businesses it’s invested in.

These two shares could be too good to miss after recent declines.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

This ETF is the one that I think can provide more diversification than the S&P 500 fund.

As mentioned, the S&P 500 fund only invests in US shares. Whereas the QLTY ETF portfolio only has a 61% allocation to US shares, ex-US get a weighting of almost 40%. These include Japan, Switzerland, the Netherlands, France, Denmark, Germany, the United Kingdom, the Hong Kong Stock Exchange, and more.

But, the companies are spread across an array of sectors. There are around 150 names in the portfolio, which is a good number.

What attracts me most to this ETF is that it’s designed to give access to the “world’s highest quality companies”. BetaShares looks to create a quality portfolio by only picking businesses that rank well on four factors – return on equity, debt-to-capital, cash flow generation ability and earnings stability.

So, what sort of businesses qualify as quality?

At the latest disclosure on 27 June 2022, these were the biggest 10 positions: Johnson & Johnson, UnitedHealth Group, Alphabet, Automatic Data Processing, AIA Group Limited, Pfizer, Microsoft, Novo Nordisk, L’Oreal and Accenture.

The QLTY ETF has fallen by around 20% since the beginning of the year. So I think this combined group of businesses are now looking better value. At 31 May 2022, it still showed a double-digit return, with the net return over the prior three years being an average of 11.8%.

BetaShares Cloud Computing ETF (ASX: CLDD)

This investment differs from the S&P 500 fund and the QLTY ETF.

BetaShares says the idea behind this ETF is that:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world’s digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

To get into this ETF’s portfolio, the company must generate a minimum revenue threshold from computing services. The shares that make more money from cloud-based services are prioritised in terms of allocation.

There is a total of 35 names in the portfolio. The biggest 10 positions at the latest disclosure were: DigitalOcean, Zoom Video Communications, Salesforce, Dropbox, Qualys, Netflix, Paycom Software, Digital Realty, Akamai Technologies and SPS Commerce.

I think that the CLDD ETF, as a group of businesses, looks better value after its 30% drop in 2022 to date.

While COVID-19 may have been a temporary boost for some businesses, I think the world will continue to go digital as it has over the past few decades. This should be helpful for revenue growth over time. According to BetaShares’ source (Research and Markets), revenue from global cloud computing services was US$371 billion in 2020. This figure is forecast to reach US$832 billion by 2025.

The post I think these 2 ETFs are too good to miss in July 2022 appeared first on The Motley Fool Australia.

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More reading

• How does the Fortescue dividend compare with its peers over the last 5 years?
• Why Apple was a sour stock on Tuesday
• Analysts name 2 ASX dividend shares to buy today
• ‘Extremely cheap’: expert names 3 ASX shares hot to buy now
• 5 things to watch on the ASX 200 on Wednesday

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet (A shares), Alphabet (C shares), Microsoft, Netflix, Salesforce, Inc., and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Netflix, Salesforce, Inc., Zoom Video Communications, and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Despite a volatile past 12 months, the Fortescue Metals Group Limited (ASX: FMG) share price has surged 255% since 2017.

The iron ore miner’s shares hit a record high of $26.58 last July before sinking almost 50% in the following months.

Nonetheless, its shares have recovered some lost ground and last traded at $18.56.

The company is well-known for paying juicy dividends to shareholders regardless of times of economic uncertainty.

Let’s dive in to see how the Fortescue dividend stacks up against its peers over the last 5 years.

A recap of Fortescue’s dividend history

Here’s a brief rundown on Fortescue’s most recent dividend history.

• October 2017 – 25 cents (final)

• April 2018 – 11 cents (interim)

• October 2018 – 12 cents (final)

• March 2019 – 30 cents (interim)

• June 2019 – 60 cents (special dividend)

• October 2019 – 24 cents (final)

• April 2020 – 76 cents (interim)

• October 2020 – $1.00 (final)

• March 2021 – $1.47 (interim)

• September 2021 – $2.11 (final)

• March 2022 – 86 cents (interim)

When adding the above amounts, Fortescue has paid a total of $7.82 in dividends to shareholders from five years ago.

At the time of writing, the company has a massive trailing dividend yield of 16%.

So how does this compare with the other 2 big miners?

First and foremost, shares in BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have also accelerated.

They are up 84% and 69% respectively since this time in 2017.

But as you can see, both miners’ share price gains pale in comparison to Fortescue.

When looking at the dividend history, BHP has paid a total of $13.31 and Rio Tinto has distributed $39.42 to shareholders.

Bear in mind that BHP shares last traded at $42.98, and Rio Tinto at $106.92 apiece.

The above dividend amounts reflect Fortescue paying around 42% of its current share price in the last 5 years.

In addition, BHP has paid roughly 31% of its current share price, and Rio Tinto at approximately 37%.

BHP and Rio Tinto have a trailing dividend yield of 11.98% and 10.71%, respectively.

Fortescue share price summary

Market swings and weakened investor confidence in the ASX have led the Fortescue share price to register a loss of 4% in 2022.

However, its shares are down 20% over the last 12 months.

Based on valuation grounds, Fortescue presides a market capitalisation of approximately $55.05 billion.

The post How does the Fortescue dividend compare with its peers over the last 5 years? appeared first on The Motley Fool Australia.

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More reading

• Is the Fortescue share price really the cheapest ASX 200 materials share on the market?
• Guess which sector is delivering the biggest gain across the ASX 200 today
• Why are ASX 200 mining shares having such a dire week?
• Why is the Fortescue share price sinking 4% on Thursday?
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles

Motley Fool contributor Aaron Teboneras 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened?

A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. The company’s shares lost nearly 3% of their value, a worse showing than the 2% decline of the S&P 500 Index. Investors were disheartened by one analyst’s price target cut, and another’s speculation about manufacturing difficulties. 

So what?

Of the two analyses, it was the one from TF International Securities that was the more concerning. That company’s Ming-Chi Kuo wrote in a tweet that the results of a survey he conducted indicate that Apple’s “own iPhone 5G modem chip development may have failed.”

The company had been developing its own chips to alleviate its dependence on chip leader Qualcomm. Kuo speculated that Apple’s struggles mean Qualcomm will remain the sole supplier of 5G chips for the tech giant’s upcoming line of new iPhones, presumably making their production more expensive.

It’s important to note that Apple has not released any updates recently about its 5G modem chip production.

Now what?

Meanwhile, Evercore ISI analyst Amit Daryanani is growing more bearish on Apple’s prospects for different reasons. Tuesday morning, he cut his price target on the stock to $180 per share from the previous $210.

Daryanani explained in a new research note that “Apple was in growth mode during the 2008/2009 as we were still at the beginning of the smartphone revolution, so revenue declines in a recession today would likely be more severe vs. the growth they managed in 2009.” 

Despite his concern and the price target reduction, Daryanani is maintaining his outperform (read: buy) recommendation on Apple stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Apple was a sour stock on Tuesday appeared first on The Motley Fool Australia.

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More reading

• 2 monster Warren Buffett stock-split stocks to buy right now
• Why Meta, Amazon, and Apple shares were falling today
• Apple Is Starting to Walk and Talk Like a Bank. Could It Ever Become One?
• Apple stock: The bull and bear cases today
• Apple Pay Later just crushed Affirm’s dreams, but it’s a nice win for 2 fintech giants

Eric Volkman has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Qualcomm. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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With inflation rising fast, income investors may want to look at the dividend shares listed below for a boost to their income.

Here’s why these two ASX dividend shares have been rated as buys:

Charter Hall Long WALE REIT (ASX: CLW)

The first dividend share to look at is the Charter Hall Long Wale REIT. This REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors.

Earlier this year the company added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. This added ~78 hotel properties that are all leased to ALH Group, which is part of drinks giant Endeavour Group Ltd (ASX: EDV).

Morgan Stanley is a fan of Charter Hall Long Wale REIT. It currently has an overweight rating and $5.85 price target on its shares.

The broker is also forecasting dividends per share of 30.6 cents in FY 2022 and 31.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.64, this will mean yields of 6.6% and 6.9%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a buy is Westpac. It is of course one of Australia’s big four banks.

Australia’s oldest bank has seen its shares crash in recent weeks amid concerns about Australia falling into a recession due to quicker than expected rate hikes. While a recession certainly is possible, the team at Citi aren’t concerned and are recommending Westpac’s shares as a buy.

As for dividends, Citi is expecting Westpac to pay fully franked dividends per share of $1.23 in FY 2022 and $1.55 in FY 2023. Based on the current Westpac share price of $19.75, this will mean yields of 6.2% and 7.8%, respectively, over the next two years.

Citi also sees huge upside potential for the bank’s shares with its price target of $29.50.

The post Analysts name 2 ASX dividend shares to buy today appeared first on The Motley Fool Australia.

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More reading

• How much has Westpac paid in dividends in the past 5 years?
• CBA share price leads the big four as banks outperform ASX 200 on Monday
• Here are the details about the Westpac dividend being paid today
• 5 things to watch on the ASX 200 on Friday
• Should you ‘buy the dip’ in ASX 200 bank shares?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Corporation. 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Datt Capital principal Emanuel Datt explains why he loves one particular sector but only companies that operate in a particular state.

Hottest ASX shares

The Motley Fool: What are the three best stock buys right now?

Emanuel Datt: I thought about this… I’d probably suggest a sector. 

Why I say that is because, and as I point out, the markets are very rocky at the moment. But I think there’s [a] very clear opportunity in New South Wales-based thermal coal stocks. 

Queensland recently enacted a super for-profits tax or royalty over mines that are based in Queensland. This ultimately is going to upset Queensland miners quite significantly and it really reduces their competitive advantage against New South Wales mines.

Because ultimately New South Wales can afford to pay mine workers a lot more. They’re not operating under that same royalty structure. 

There are three particular stocks in this sector. 

Whitehaven Coal Ltd (ASX: WHC) is a multi-mine thermal coal producer that operates solely in New South Wales. The second one would be New Hope Corporation Limited (ASX: NHC), which runs a single thermal mine in New South Wales, but also has a development project that [it’s] still undergoing in Queensland. Interestingly enough, it’s exempt from these new increases in Queensland royalties.

And the last one is Yancoal Australia Ltd (ASX: YAL), which is again a multi-mine thermal coal producer, with its operations almost entirely in New South Wales. 

Quite concentrated in that sector but I think that the ability to earn US dollars is really a big advantage, given that the US dollar is traditionally a safe haven. As well as having exposure to just very positive demand tailwinds, stemming from this Russian invasion of Ukraine that’s really thrown a lot of commodity markets out of whack. 

MF: All three have seen their share prices rise a fair bit this year, but you feel like there’s more room to grow?

ED: Yeah, absolutely. Just to give you an example, for this current quarter, we’re expecting Whitehaven’s operating profit to be somewhere around $1.2 billion. To put that into context against enterprise value, [it’s] just about $4.5 billion. It’s trading at less than one year’s cash flow if thermal coal prices persist. Just incredibly cheap, but also they’re actually returning a lot of capital back to shareholders through dividends and they’re pretty much at the tail end of a 10% buyback, as well.

But, yeah, ultimately we think that these tailwinds for thermal coal are likely to persist for at least 18 to 24 months. That makes the valuation look extremely cheap.

The post ‘Extremely cheap’: expert names 3 ASX shares hot to buy now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Why are ASX 200 coal shares bouncing back on Tuesday?
• This broker is eyeing off a huge 65% upside for the Whitehaven share price
• Why Beach, Cooper Energy, Leo Lithium, and Whitehaven Coal are dropping
• Down 40% Tuesday, up 21% today, what’s going on with this ASX coal share?

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 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed higher. The benchmark index rose 0.85% to 6,763.6 points.

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

ASX 200 expected to sink

The Australian share market looks set to give back a large portion of its recent gains on Wednesday following a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 80 points or 1.2% lower this morning. On Wall Street, the Dow Jones fell 1.55%, the S&P 500 dropped 2%, and the Nasdaq sank 3%.

Oil prices rise again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 1.9% to US$111.70 a barrel and the Brent crude oil price has risen 2.5% to US$117.95 a barrel. News that Saudi Arabia and the UAE are struggling to boost production meaningfully took oil prices higher.

Carsales to return

The Carsales.Com Ltd (ASX: CAR) share price is due to return from its trading halt on Wednesday morning. The auto listings company requested the halt so it could raise a total of $1.2 billion at a 14.5% discount of $17.75 per new share. The proceeds will be used to fund the acquisition of the remaining 51% of Trader Interactive.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,821 an ounce. Rate hike bets offset recession fears and weighed down the safe haven asset.

Megaport a potential takeover target

The Megaport Ltd (ASX: MP1) share price will be one to watch on Wednesday amid reports that sharks are circling the company. According to the AFR, significant weakness in the network as a service provider’s share price has left it vulnerable to a takeover. As a result, it is now shoring up its takeover defences to protect it from an opportunistic bid.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Analysts say these ASX growth shares have huge upside potential
• Has CSL been growing its dividend?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why are ASX tech shares struggling today?

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