Category: Stock Market

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target on this biotherapeutics giant’s shares to $330.00. Citi notes that there have been several data points influencing its view on the plasma industry. The good news is that the data is positive, with plasma product demand strong and plasma collections now back to pre-pandemic levels. The CSL share price is trading at $270.72 on Friday.

Lovisa Holdings Ltd (ASX: LOV)

A note out of UBS reveals that its analysts have retained their buy rating but cut their price target on this fashion jewellery retailer’s shares to $16.00. While UBS has concerns about consumer spending in the discretionary category and has downgraded its sales and earnings estimates, it still expects solid earnings growth from Lovisa in the coming years. In light of this, it sees its shares as good value following recent weakness. The Lovisa share price is fetching $13.88 today.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Macquarie have retained their outperform rating and $3.90 price target on this lithium miner’s shares. This follows news that Pilbara Minerals has already received and accepted a record bid for its lithium cargo before the June auction. Outside this, the broker believes the market is valuing the company as though lithium prices will fall by over two-thirds from current spot prices. Whereas it is expecting prices to remain stronger for longer. The Pilbara Minerals share price is trading at $2.19 this afternoon.

The post Brokers name 3 ASX shares to buy 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
• Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium
• Why did the CSL share price beat the ASX 200 on Wednesday?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 CSL Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Macquarie 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/zR5jugK

All Ordinaries Index (ASX: XAO) shares are managing to hold onto their gains this afternoon, with the All Ords up 0.6% at time of writing.

While that’s a healthy gain for the index to end the week, three ASX All Ordinaries shares are leaping well ahead of the benchmark.

The first 2 stocks leading the charge

Up 17.6% today, Latitude Group Holdings Ltd (ASX: LFS) is certainly doing its part to boost the index.

With no fresh price-sensitive news from the company, investors could be re-evaluating the impact of the company’s decision not to move forward with its proposed $250 million acquisition of Humm Group Ltd (ASX: HUM)’s buy now, pay later (BNPL) business.

BNPL shares are some of the best performers on the ASX today.

Following today’s lift, the Latitude share price is down 36% so far in 2022.

Our second All Ordinaries share charging higher on Friday is Betmakers Technology Group Ltd (ASX: BET), up 20% at the time of writing.

The All Ordinaries share provides data and analytic products for the B2B wagering market.

Investors are snapping up the stock after the company reported this morning it plans an on-market share buyback of as much as 10% of its outstanding shares, or more than 90 million shares.

The Betmakers share price remains down 55% year-to-date, despite the big bounce today.

Our top performing ASX All Ordinaries share

Moving on to our top-performing ASX All Ordinaries share, we have Vulcan Energy Resources Ltd (ASX: VUL).

The lithium and battery metals explorer and producer’s shares are up 26.8% today.

Investor enthusiasm was stoked by a release this morning reporting that international giant Stellantis has invested $76 million in Vulcan Energy. Stellantis subsidiaries include global vehicle names like Peugeot, Chrysler, Citroën, Opel, Dodge, and Maserati.

Stellantis is paying $6.62 per share, still some 4.4% above the current Vulcan share price.

The ASX All Ordinaries share remains down 41% year-to-date.

The post 3 ASX All Ordinaries shares going gangbusters on Friday 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

• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• Here’s why the Betmakers share price is rocketing 22% on Friday
• Vulcan share price rockets 25% on Stellantis deal
• Vulcan share price on watch amid landmark $76 million automaker investment
• 3 ASX All Ordinaries shares having a cracking Monday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Humm 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/hItz9fc

These popular ASX 200 shares are climbing today despite no news coming from each of the companies.

While the market is recovering lost ground, investors might be buying up these ASX shares before trading ex-dividend next week.

The ex-dividend date is when investors must have purchased a company’s shares beforehand to be eligible for the upcoming dividend. If an investor buys the shares on or after this date, the dividend will go to the seller.

Charter Hall Group (ASX: CHC) shares will trade ex-dividend next Wednesday.

Despite not reporting any financial performance since its half year results, the integrated property company announced its latest dividend distribution.

The board declared a 44.94% franked interim dividend of 20.47 cents per security. This will be paid to eligible shareholders on 31 August.

This brings the total distribution per security for the half year ending 30 June 2022 to 40.13 cents per security.

When comparing to the FY21 distribution of 37.86 cents per security, this represents a 6% increase.

Transurban Group (ASX: TCL) shares are also set to trade without the rights next Wednesday.

The toll road operator advised it is paying out 26 cents per stapled security for the six months ending 30 June 2022.

The 8.34% franked dividend will be distributed to eligible shareholders on 23 August.

This takes the total FY22 distribution to 41 cents per stapled security, of which 2 cents is fully franked.

Goodman Group (ASX: GMG) shares are going to trade ex-dividend on Wednesday 28 June.

The integrated commercial and industrial property group is scheduled to reward its shareholders with a 15 cents per stapled security dividend.

Unlike the above two, the Goodman dividend is unfranked which means shareholders won’t receive any tax credits for this.

Payment is expected to be on 25 August.

The post Here’s 3 popular ASX shares that are trading ex-dividend next week 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

• Why ASX-listed property shares could be on the chopping block
• 5 things to watch on the ASX 200 on Wednesday
• Broker names 2 of the best ASX 200 shares to buy now
• 2 ASX shares rated as strong buys by several brokers
• 2 ASX 200 infrastructure shares ‘ripe for takeout’: expert

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.

from The Motley Fool Australia https://ift.tt/6DCOc0s

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a gain. In afternoon trade, the benchmark index is up 0.35% to 6,552 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Beach Energy Ltd (ASX: BPT)

The Beach share price is down 3% to $1.58. This appears to have been driven by a pullback in oil prices overnight. It isn’t just Beach that is slipping today. At the time of writing, the S&P/ASX 200 Energy index is down 1.9%.

Cooper Energy Ltd (ASX: COE)

The Cooper Energy share price is down 4% to 23.5 cents. Investors have been selling this energy company’s shares this week following the completion of its institutional entitlement offer and placement. Cooper Energy raised $183 million at a 22% discount of 24.5 cents per new share. The proceeds will be used to fund the acquisition of the Orbost Gas Processing Plant.

Leo Lithium (ASX: LLL)

The Leo Lithium share price has continued its slide and is down a further 1.5% to 51.2 cents. This is despite the rest of the lithium industry rebounding strongly. Today’s decline means that this newly listed lithium developer’s shares have lost 27% of their value since listing at 70 cents on Thursday.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 3.5% to $4.44. A number of miners are trading lower today amid concerns over a potential global recession. This has put pressure on commodity prices this week. In addition, news of coal royalty increases in Queensland have hit the miners hard. Royalties are due to increase to upwards of 40% for prices above $300 per tonne.

The post Why Beach, Cooper Energy, Leo Lithium, and Whitehaven Coal are dropping 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 Friday
• What’s going on with the Beach Energy share price on Thursday?
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking
• Leo Lithium share price fails to roar and sinks 26% following demerger
• Down 40% Tuesday, up 21% today, what’s going on with this ASX coal share?

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/PjI4e5o

The Woodside Energy Group Ltd (ASX: WDS) share price has seen a solid performance over the first six months of 2022, rising by 37%.

As a very large oil and gas business, it has benefited from the stronger oil price since the beginning of the Russian invasion of Ukraine.

Resource businesses like oil shares are often able to pay large dividends to investors when their relevant commodity price jumps higher, as it mostly just adds to profit because the costs of producing that resource are essentially the same (aside from government payments like tax) whether the price is a bit higher or lower.

The oil price is currently at an elevated price, though it’s down double-digits in percentage terms from two weeks ago amid concerns that a global recession could lead to less oil demand.

With the oil price currently above US$100 per barrel, does this mean that Woodside is a good business to consider buying for income?

Dividend expectations

The broker Ord Minnett thinks that at the current Woodside share price, it’s going to pay a grossed-up dividend yield of 13.6% in FY22 and then 8.6% in FY23.

Macquarie believes that Woodside could provide a grossed-up dividend yield of 15.3% in FY22 and 8.1% in FY23.

One of the biggest estimates of all comes from Morgan Stanley – it’s predicting that Woodside will pay a grossed-up dividend yield of 18% in FY22 and 16.4% in FY22.

By most accounts, those yields are big.

However, there is more to consider with an investment than just the dividend yield. If investors received a 15% dividend yield but then the share price fell 15%, then it’s back to square one.

Is the Woodside share price a buy?

Both Ord Minnett and Morgan Stanley believe that Woodside shares are worth buying. They have recently focused on the Woodside acquisition of BHP Group Ltd’s (ASX: BHP) oil and gas business.

Ord Minnett’s price target on Woodside is $37, implying a possible rise of around 20%. It likes the bigger scale created by the merger.

Morgan Stanley’s price target for Woodside is $40, suggesting a possible rise over the next year of around 30%. This broker also likes the benefits of the merger, while also suggesting that even after the Russian invasion ends, the price of energy will remain higher as Europe looks for alternate sources to buy energy from. The broker thinks that gas is very important for Woodside’s longer term.

However, Macquarie is less optimistic about the company. It’s neutral on the business with a price target of $29, implying a mid-single-digit drop. The broker believes that oil prices will fall in the longer term.

The business is also working on advancing its plans to invest in lower-carbon sources of energy that customers are seeking, such as hydrogen and ammonia.

It is making progress with its proposed hydrogen projects and has launched studies of large-scale energy and carbon capture and storage in Western Australia. It’s targeting $5 billion of investment in new energy products and lower-carbon services by 2030.

The post Is the Woodside share price a buy for its 13% dividend yield? 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’s going on with the Woodside Energy share price today?
• 5 things to watch on the ASX 200 on Friday
• Why we just bought these 3 ASX shares: fund
• 5 things to watch on the ASX 200 on Thursday
• Woodside share price lifts despite $17b ‘climate bomb’ court action

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/zT0kejq

The Temple & Webster Group Ltd (ASX: TPW) share price is rocketing 10.79% higher to $3.80 in afternoon trade on Friday.

Investors have pushed the share higher despite no news from the online furniture retailer.

Meanwhile, the S&P/ASX 300 Retailing Index (AXRTKD) is 0.6% down after posting gains this week.

What’s up with the Temple and Webster share price?

The Temple and Webster share price has leapt higher this week after coming off a down period, and is now up more than 19% since last Friday’s close.

Zooming out, and investors have been selling their positions since 31 August year.

Since then, the company’s shares have tumbled from a high of $14.71 to hit 52-week lows last week.

However, the ASX retail share found buyers at this level, which has seen it jump to its current price.

In broad sector moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has also turned course this week and is lifting another 1% today. It has now gained more than 4% since last Friday’s close.

Investors look to have bought in at the sector’s lows, possibly chasing some cheap stocks with fundamental strength.

However, the Temple and Webster share price has a way to go to return to its former highs. It’s down more than 64% this year to date, and has slid more than 12% over the past month.

In the last 12 months, it has lost 63% of its value, bringing it back to January 2020 levels. This is best seen on a five-year chart, below.

The post Why is the Temple and Webster share price surging 11% higher 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

• Why is the Temple & Webster share price surging 11% on Monday?
• Why the Adore Beauty share price is jumping but Kogan is falling
• Experts think these 2 ASX shares have more than 100% upside after the plunge
• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• Analysts are tipping these ASX growth shares as buys

Motley Fool contributor Zach Bristow 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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/tiLQdq5

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a mildly positive note. At the time of writing, the benchmark index is up 0.25% to 6,544.4 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price has jumped 22% to 36.5 cents. This morning this heavily shorted betting technology company announced that it would undertake a share buyback. Betmakers notes that improved cash flows and market dynamics are allowing it to maximise shareholder value through the buyback.

Block Inc (ASX: SQ2)

The Block share price is up 11% to $98.48. This follows a strong gain by its NYSE listed shares overnight and a rebound in the tech sector. The former was driven by news that Cathie Wood’s Ark Innovation fund has been picking up the payments company’s shares this week.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price has rebounded 16% to 81 cents. As well as getting a boost from a recovery in the lithium industry, a market update has given this lithium developer’s shares a lift. That update stressed that nothing has changed for Lake Resources despite the sudden exit of its CEO this week.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price has rocketed almost 30% higher to $6.43. This follows news that the lithium developer has received an investment from a major automaker at a massive 32% premium to its last close price. Stellantis has paid a total of $76 million or $6.62 per share for 11.45 million shares, becoming Vulcan’s second largest shareholder. Stellantis is the name behind car brands such as Chrysler, Citroën, Fiat, Maserati, and Peugeot.

The post Why Betmakers, Block, Lake Resources, and Vulcan shares are racing 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

• ‘Nothing has changed’: Why the Lake Resources share price is rocketing 19% today
• The Zip share price is rocketing 14% today. What’s going on?
• Why ASX 200 tech shares are outperforming the market on Friday
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Block share price jumps 9% following Cathie Wood investment

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 Betmakers Technology Group Ltd and Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Betmakers Technology Group 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/QKNLJCR

It’s been a fairly positive day for the S&P/ASX 200 Index (ASX: XJO) and ASX shares so far this Friday. At the time of writing, the ASX 200 is up 0.22% at 6,543 points. But it’s been an even better day for the Novonix Ltd (ASX: NVX) share price.

Novonix shares are presently enjoying a 10.7% bounce to $2.38 each. It was only yesterday that this ASX battery technology share was recording a new 52-week low of $2.07 a share. That price was more than 82% off the all-time high of $12.47 a share that we saw back in December last year.

But Novonix shares are seemingly putting all of that behind them today.

So what’s going on here?

Why are Novonix shares jumping on an 11% rocket?

Well, it’s nothing out from the company itself, given Novonix has not released any news or announcements since 14 June.

However, we are seeing a bit of a trend forming on the ASX boards today. ASX battery and lithium shares are on fire this Friday.

In addition to Novonix’s move, we have Pilbara Minerals Ltd (ASX: PLS) up 6.8%, Core Lithium Ltd (ASX: CXO) up 7.7%, and Liontown Resources Limited (ASX: LTR) rising 11.1%.

This comes after a bullish prediction regarding lithium was aired yesterday.

As we covered at the time, broker Macquarie has upgraded its forecast for lithium prices. It “now expects spodumene prices to peak at US$4,900 a tonne in the September quarter”. As a result, Macquarie “has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne”.

So perhaps it is this bullish prediction that has investors all riled up over lithium and battery shares today. Or perhaps investors just decided that the share prices of Novonix and others we were seeing yesterday were too cheap, and have bought back in today.

Whatever the reason, it’s certainly been a pleasing day for Novonix shareholders thus far on Friday.

At the current Novonix share price, this ASX battery share has a market capitalisation of $1.17 billion.

The post Wow! Novonix share price rebounds off a 52-week low to surge 11% 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

• Why is the Novonix share price plunging 6% on Wednesday?
• Why is the Novonix share price charging 7% higher today?
• These were the worst performing ASX 200 shares last week
• Novonix share price loses 20% in dire week for ASX 200 tech stocks
• The Novonix share price is the worst of the ASX 200 losers today. What’s going on?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/Rd19gnJ

The Lake Resources N.L. (ASX: LKE) share price is surging upwards on Friday amid the release of a market update.

The company has reassured the market that ambitions for its Argentinian projects remain the same following its pivot towards the North American market.

At the time of writing, the Lake Resources share price is 83 cents, 18.57% higher than its previous close.

Unfortunately, today’s gain hasn’t been enough to see the stock recovering this week’s tumble. It’s still trading 41% lower than it was at last Friday’s close.

For context, the broader market is also in the green today. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.25% while the All Ordinaries Index (ASX: XAO) has gained 0.48%.

Let’s take a closer look at today’s release from the ASX 200 lithium explorer.

Lake Resources share price surges on Friday

The Lake Resources share price has suffered this week amid news of its planned transition towards North American and Asian lithium supply chains, its addition to the ASX 200, and a broader lithium sell-off.

The company announced North America managing director Steve Promnitz was stepping down after establishing Lake Resource’s dominant position in Argentina on Monday.

It also announced that its chair Stu Crow has been appointed executive chair for six months to oversee the establishment of the company’s North American presence. Crow will direct the appointment of a new CEO, board members, and the creation of US offices.

The company addressed potential concerns regarding the change in a non-price sensitive release today, saying:

Nothing has changed in respect of [Lake Resource’s] desire to progress development of the Kachi and other projects in Argentina to meet rising demand in the US and other western markets.

It also noted that Promnitz’ decision to step down was “of his own volition” and stated he didn’t provide a reason for his departure. Key negotiations and happenings will continue despite Promnitz’ departure.

Finally, the company told the market:

There is an urgency in the US to secure battery metal supply chains … Crow is currently in the US with a view to progressing the outlined strategy.

What’s going on with ASX lithium shares this week?

Prior to today, the Lake Resources share price had tumbled nearly 54% this week amid a broader lithium sell-off.

It was joined in the red by shares in its fellow ASX lithium favourites.

Those in Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Sayona Mining Ltd (ASX: SYA) fell 27%, 14%, and 14% respectively between the end of last week and Thursday’s close. They’re all also in the green today.

As my Foolish colleague James reported, this week’s sell-off might have had something to with the news that Germany may refuse to ban fossil fuel-powered cars by 2035.

Lake Resources share price snapshot

Today’s gains included, the Lake Resources share price is nearly 24% lower than it was at the start of 2022. Though, it has gained 151% since this time last year.

The post ‘Nothing has changed’: Why the Lake Resources share price is rocketing 19% 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

• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Could ASX lithium shares be set for a boost?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking
• The Lake Resources share price has crashed 50% since joining the ASX 200 on Monday. What’s going on?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/YH2FqDb

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.

Netflix (NASDAQ: NFLX) stock has been experiencing a miserable run over the past six months. The streaming pioneer thrived in the early stages of the pandemic when folks were staying at home more often and demand for entertainment was surging. Meanwhile, the COVID-19 restrictions meant that the entire industry paused content creation, saving billions in cash for Netflix. 

Those ideal conditions have quickly vanished while headwinds are gaining momentum. Netflix went from adding millions of subscribers every quarter to now reporting losses. The stock is down 75% off its highs as a consequence. However, Netflix could be at a tipping point where investors may want to take notice.

Investors fear subscriber losses will continue 

In its most recent quarter, which ended on March 31, Netflix noted that it lost 200,000 subscribers from the quarter before. That was its first such quarterly decline in over 10 years. But what made matters worse was that Netflix forecast another loss in the second quarter of 10 times that magnitude. If it comes to fruition, the expected 2 million subscriber loss in Q2 will now make it a trend of subscriber losses rather than a one-off event. That is understandably spooking investors uncertain about how long or deep it will be.

A meaningful part of the stock’s decline is due to those fears. Therefore, if Netflix, in its next quarterly update, informs investors that it expects subscriber losses to subside and issues a forecast for millions of new customers in Q3, it could cause the stock to reverse higher. While the current quarter may not hold significant catalysts to boost subscriber growth, the next may be different. Inflation is biting into consumer budgets, forcing them to make the tough decisions on where to save money because they are paying more for necessities like food and gas. 

US Consumer Price Index YoY data by YCharts

At less than $20 per month, Netflix is arguably an affordable entertainment option for families worldwide. In contrast, a visit to the movie theater could cost five times as much for a family of four (including concessions). And a concert, theme park, or sporting event could be multiples higher than even that amount. Of course, there are cheaper streaming service options, but Netflix has announced its own lower-priced, ad-supported tier that could be available this year. 

Macroeconomic conditions have been a significant headwind for Netflix in 2022; those look like they are at their nadir. The turnaround might be a tipping point that could send Netflix’s stock higher. 

Netflix’s cheap valuation could propel it higher

NFLX PE Ratio data by YCharts

Netflix is trading at a price-to-earnings of 15.9, its lowest in the last five years. The cheap valuation suggests that once investors observe the turnaround in subscriber losses, the stock could jump in response. The longer-run trend is on Netflix’s side with consumers canceling traditional cable subscriptions and streaming their content instead.

The short-term headwinds are bound to subside; it appears a question of “when not if.” Rather than trying to time the bottom, investors may want to start adding a position in Netflix stock now.

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

The post Is Netflix stock at a tipping point? 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

• Why is everyone talking about Netflix stock?
• Can Stranger Things stop Netflix’s subscriber bleed?

Parkev Tatevosian has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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.

from The Motley Fool Australia https://ift.tt/O2IhzTn