Category: Stock Market

The Archtis Ltd (ASX: AR9) share price is entering the stratosphere on Thursday following a positive company announcement.

At the time of writing, the software security provider’s shares are up 60% to 16 cents.

Let’s take a look at what Archtis released to the ASX this morning.

Archtis completes ‘largest sale’ in its history

Investors are rallying up the Archtis share price after digesting the company’s latest news.

In its statement, Archtis advised it has been awarded a $7 million contract with the Australian Department of Defence.

Under the deal, the existing deployment of Kojensi will be expanded and enhanced within the Defence network.

Kojensi is a highly secure multi-level platform that allows classified information to be shared internally with partners and clients. Users can create, share files and co-author documents in real time on a protected cloud space. It also allows the operator to control how the information is accessed and used.

The value of the contract will be split, with $3.59 million payable on delivery which includes services, support and hardware. The other $3.44 million will come in recurring revenue that will be owed over a two-year period.

The contract begins today and will continue until 30 June 2024. There is also an option for the Department of Defence to extend the agreement for another 12 months on the same terms.

Commenting on the news fuelling the Archtis share price today, managing director Daniel Lai said:

We are pleased to close the largest sale in the company’s history for $7.03m.

Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information.

This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded defence and intelligence market and the industries that support them.

Archtis share price snapshot

Despite its huge gains today, the Archtis share price has fallen 16% since the start of 2022.

When looking further back, its shares are down 35% since this time last year.

Based on today’s price, Archtis presides a market capitalisation of around $27.70 million.

The post Here’s why this ASX tech share is rocketing 60% today appeared first on The Motley Fool Australia.

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More reading

• ANZ share price rises as MYOB acquisition rumours swirl
• Why Tesla shares popped then dropped today
• Could Altium shares benefit from the global chip shortage?
• Why is the IGO share price slipping on Thursday?
• Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium

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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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher this morning.

At the time of writing, the banking giant’s shares are up 1.8% to $22.23.

This compares favourably to the rest of the big four banks and the ASX 200 index with its 0.6% gain.

What is driving the ANZ share price higher?

The catalyst for the rise in the ANZ share price today could be speculation that it is on the verge of making a major acquisition.

According to the AFR, the bank is running the rule over accounting software company MYOB, which is used by over 1 million small businesses in Australia.

While there has been speculation floating around for a little while that ANZ could be interested in snapping up MYOB, the rumours have grown louder this week.

This follows reports that ANZ has brought in Macquarie Capital and UBS for advice. The two investment banks are understood to be working on MYOB’s books and modelling what impact it could have on the bank’s customer base.

But a deal for MYOB would not be cheap. Private equity firm KKR bought the accounting software company for $2.4 billion in 2019.

Why MYOB?

ANZ is understood to see the acquisition of MYOB as a way to create a one-stop shop for small business banking. By adding the accounting platform to its offering, ANZ could potentially allow customers to manage their financials and accounting in one place.

This could potentially have ramifications for Xero Limited (ASX: XRO), which has 1.34 million subscribers in Australia and 512,000 subscribers in New Zealand. But as things stand, ANZ has not commented on the matter and this potential transaction remains speculation.

Time will tell if a deal is made and a shake-up of the small business landscape happens.

The post ANZ share price rises as MYOB acquisition rumours swirl appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• What’s the outlook for ASX 200 bank dividends?
• How ANZ plans to fend off competition from other ASX 200 bank shares with fresh tech
• Worried about a US recession? Here’s what the ASX 200 banks are forecasting
• How does the Macquarie dividend stack up against the ASX big four banks?

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 

Investors pushed the share price of Tesla (NASDAQ: TSLA) up 4% this morning, likely after the electric vehicle (EV) stock made double-digit percentage gains yesterday following comments by Tesla CEO Elon Musk. But by midday today, the EV stock had given up nearly all of its early gains and was essentially flat as of 3 p.m. ET. 

So why the retreat? It may have to do with Tesla’s Shanghai factory. 

So what 

Reuters reported today that Tesla’s Shanghai factory will suspend operations for two weeks as the EV company makes some upgrades to the factory. That’s not earth-shattering news for the company or its investors, but the temporary closure comes on the heels of the plant suspending operations this spring due to COVID-19.

Investors may be overreacting a bit to this news because they’re still a bit nervous about any reports about the Shanghai plant stopping its operations. China’s strict zero-COVID policy caused the factory to halt production for 22 days back in the spring and resulted in the company missing some production goals for the plant. 

But the plant upgrades should actually be a good thing for Tesla and investors. Reuters reports that the upgrades should help the EV company increase output at the plant to a new record high and help the factory reach a weekly production of 22,000 vehicles. 

Now what 

It’s not surprising that investors are a bit nervous about the news of a plant temporarily suspending operations, but Tesla shareholders shouldn’t be concerned about today’s news. 

The temporary suspension of the plant should ultimately help the company produce more vehicles and keep the company on track to make even more vehicles this year than last. 

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

The post Why Tesla shares popped then dropped today appeared first on The Motley Fool Australia.

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More reading

• Why Tesla stock soared today
• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away
• Why Tesla stock sold off 7% today
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Chris Neiger 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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Altium Limited (ASX: ALU) share price has tracked lower in 2022 and is now in the red by 42% since the start of the year.

At the time of writing, the electronic design software company’s shares have gained 2.32% on the day to trade at $26.29 apiece.

In broad market moves, the S&P/ASX All Technology Index (ASX: XTX) has also slipped in 2022 — by 38% — but is up 1.73% from the open today.

Altium share price to benefit from chip shortage?

Demand and supply gaps for semiconductor chips have led to global shortages of the product. These shortages have plagued many industries since 2020 when the COVID-19 pandemic began.

“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain,” says Counterpoint Research.

It says these shortages are starting to ease, and that inventories are starting to build back up in order to fill demand.

“The issue now isn’t shortages but a shock to the system from lockdowns, which is having a domino effect across China at the moment,” it added.

Nevertheless, analysts at Morgan Stanley note the global semiconductor chip shortage could be a net positive for ASX shares such as Altium.

The Morgan Stanley team reckons the market has overlooked how the company is benefiting from the current supply-chain headwinds plaguing global markets, Hans Lee of Livewire writes.

Specifically, global chip shortages have led to a surge in demand for Altium’s products, it says, which is a potential sales tailwind.

The broker values Altium at $35 per share on a buy recommendation.

There are still plenty of other risks to contend with right now for ASX shares. Plus, with the Altium share price down more than 28% in the last 12 months, it has a way to go before recovering to former highs.

The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia.

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More reading

• Why no news could be good news for the Altium share price
• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy next week
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• Can the Altium share price regain its previous highs in 2022?

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 Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The IGO Ltd (ASX: IGO) share price is in the red in early trade, down 2.7%.

IGO shares closed yesterday trading for $10.41 and are currently trading at $10.13 apiece.

This comes following several price-sensitive updates from the S&P/ASX 200 Index (ASX: XJO) battery metals miner this morning.

What updates are impacting the IGO share price today?

The IGO share price is sliding despite the company reporting that its wholly-owned subsidiary, Western Areas Limited, has satisfied the Stage-1 requirements of its Earn-In and Joint Venture Agreement (EIJVA) with Metal Hawk Ltd (ASX: MHK).

The Stage-1 agreement required IGO to spend $3 million on exploration across the JV projects. It achieved this exploration spend ahead of schedule. IGO is now entitled to a 51% joint venture interest in Metal Hawk’s Kanowna East, Emu Lake and Fraser South projects.

The IGO share price could also be impacted by the miner announcing it will proceed with Stage-2 of the EIJVA. That requires the company to spend another $4 million on exploration to earn an additional 24% joint venture interest.

Diamond drilling is due to recommence at Kanowna East in July.

Metal Hawk retains 100% of the gold rights at Kanowna East and Emu Lake.

Commenting on the progress, Metal Hawk managing director Will Belbin said:

We have been really pleased with the pace and quality of exploration carried out by our joint venture partner, which has exceeded its obligation under the earn-in agreement, and with the results achieved to date.

The election by IGO to progress to Stage-2 is a tremendous outcome for Metal Hawk that will see a substantial step-up in exploration expenditure without drawing on shareholders’ funds. We also see this as a strong endorsement of the quality and potential of these projects.

What else was announced?

In a separate announcement that also hasn’t lifted the IGO share price this morning, ST George Mining Ltd (ASX: SGQ) welcomed the miner as its 25% Joint Venture partner.

The JV partnership entails an exploration licence (E29/638), which is at the core of St George’s Mt Alexander Project, focused on nickel, copper and platinum-group elements (PGE).

According to the release:

E29/638 covers the high-grade Cathedrals, Stricklands, Investigators and Radar nickel-copper-PGE discoveries… St George (75%) manages activities on E29/638, with IGO retaining a 25% non-contributing interest until there is a decision to mine.

The partnership follows on from IGO’s successful takeover of Western Areas.

With a 13-line kilometre seismic survey completed, and a moving loop electromagnetic survey underway, drilling is expected to kick off in four weeks.

IGO share price snapshot

Although it’s struggled in 2022, the IGO share price remains up 34% over the past 12 months. That compares to a full year loss of 11% posted by the ASX 200.

The post Why is the IGO share price slipping on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Down 12% in June, is the IGO share price a buy?
• Is it too late to buy ASX lithium shares?
• Here’s why the IGO share price is making headlines on Wednesday
• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Is the ASX about to wave goodbye to this billion-dollar nickel miner?

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The JB Hi-Fi Limited (ASX: JBH) share price tumbled to a 52-week low of $36.69 last week.

The retailer has been hammered by external factors beyond its control which has put selling pressure on its shares.

At Wednesday’s market close, JB Hi-Fi shares finished 0.41% lower to $39.37.

You may be wondering what’s the best way to value a company in the current climate. Here’s one way.

How do you value JB Hi-Fi shares?

A common way among investors to determine if an ASX share is cheap or expensive is to look at the price-to-earnings (P/E) ratio. This metric tells you how much the company is worth.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

At the time of writing, JB Hi-Fi has a P/E ratio of 9.34. The formula to work out the P/E ratio is the current share price divided by EPS.

For context, JB Hi-Fi’s peers, Harvey Norman Holdings Ltd (ASX: HVN) and Kogan.com Ltd (ASX: KGN) hold a P/E ratio of 5.71 and 169.49, respectively.

Due to the similar market capitalisation compared to Harvey Norman, JB Hi-Fi shares are slightly on the more expensive side.

Essentially, what this means is that you are paying $9.34 for every dollar that JB Hi-Fi collects in earnings.

In addition, a P/E ratio shows how much growth can be expected when invested in a company.

For example, a high P/E ratio tell us that investors are happy to pay more per share than what the company is earning. This is extremely common with new market entrants that have the liquidity to pursue high growth opportunities.

On the other hand, a low P/E ratio is more suited to stable companies that have an established market share. It could also mean that its shares are trading at a bargain given the share price fall.

JB Hi-Fi share price summary

Since the start of May, the JB Hi-Fi share price has plummeted 25% on the back of weakened investor sentiment.

Soaring inflation levels mixed with rate hikes by the Reserve Bank of Australia have sent investors fleeing for safe-haven assets.

Shares in any retail environment are always the first to feel the impact of any economic downturn.

JB Hi-Fi has a market capitalisation of approximately $4.32 billion and has roughly 109.33 million shares on issue.

The post How do you value the JB Hi-Fi share price in June? appeared first on The Motley Fool Australia.

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More reading

• The JB Hi-Fi share price has tumbled 19% in a month. What’s next?
• 2 ASX companies busted for sneaky facial recognition on customers
• Why are these ASX 200 retail shares lagging the market today?
• ASX retail shares tumble following RBA rate rise
• Why experts rate the JB Hi-Fi share price a buy right now

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 positions in and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. 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 Sayona Mining Ltd (ASX: SYA) share price has fallen more than 50% in the past month.

A perfect storm of bearish sentiment across the lithium industry amid a global economic slowdown has impacted the company’s shares.

Despite the doom and gloom, Sayona Mining released its investor presentation yesterday highlighting its strategic direction.

At Wednesday’s market close, the emerging lithium producer’s shares finished 7.14% lower to 13 cents.

What were the key takeaways from the presentation?

While the Sayona Mining share price retraced to levels not seen since March 2022, investors were treated to the company’s growth plans.

In its presentation, management touched on the strategic portfolio of its lithium assets in Quebec, Canada.

The Abitibi and Northern Hubs boast one of the largest combined spodumene resources in North America.

The near-term objective for the company is to supply spodumene to the North American lithium battery supply chain by 2023.

In particular, the Abitibi Hub is targeting production of up to 180,000 tonnes of spodumene concentrate by 2024. This is expected to be ramped up in the following years (2025 – 2026) with nameplate capacity of up to 220,000 tonnes annually.

Furthermore, the Northern Hub has a forecasted nameplate capacity of up to 200,000 tonnes of spodumene concentrate equivalent by 2027.

However, this is dependent upon Sayona Mining developing its refinery operation to support lithium production from the Northern Hub.

The location of the company’s lithium assets in Quebec has many advantages to satisfy the growing demand for battery capacity. This includes being low-cost, having renewable hydropower and an established infrastructure, as well as close proximity to the North American battery market.

Sayona Mining stated that it is targeting end-user customers throughout the EV production chain. This consist of battery manufacturers, auto original equipment manufacturers (OEM), commodity trading houses and more.

Sayona Mining share price snapshot

A turbulent past couple of months on the ASX has led the Sayona Mining share price to reverse its astronomical gains.

Nonetheless, when looking at the past 12 months, its shares are still up 106%.

Sayona Mining commands a market capitalisation of approximately $1.07 billion, with a massive 8.24 billion shares on its books.

The post Considering investing in Sayona shares? Here’s the latest news from the company appeared first on The Motley Fool Australia.

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More reading

• Is this why ASX lithium shares are being crushed today?
• The Sayona Mining share price has crashed 50% in a month. What’s going on?
• Which ASX lithium shares are producing and which are not?
• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping

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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If you’re in the market for some dividend shares, then you may want to look at the two listed below.

Both these dividend shares have rated as buys by analysts and forecast to provide attractive yields. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share that has been rated as a buy is the Charter Hall Social Infrastructure REIT.

This REIT is focused on social infrastructure properties, which include bus depots, police and justice services facilities, and childcare centres. Demand is so strong for these properties that the company currently boasts a 100% occupancy rate with a weighted average lease expiry of 14.6 years.

Goldman Sachs is a big fan of the company and expects this strong demand to support solid growth. It currently has a conviction buy rating and $4.20 price target on its shares

Goldman is also expecting some generous dividends. It is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.21, this implies yields of 5.35% and 5.7%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to look at is Wesfarmers. It is the conglomerate responsible for a portfolio of retail assets and industrial businesses such as Bunnings, Kmart, and CSBP.

It has been growing at a solid rate for a couple of decades and appears well-placed to continue this trend in the future.

Morgans certainly appears to believe this is the case. The broker currently has an add rating and $58.50 price target on its shares.

It highlights that Wesfarmers has a high quality portfolio, is run by a highly regarded management team, and has a strong balance sheet that could be supportive of further M&A activity in the future.

As for dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $42.63, this will mean yields of 3.8% and 4.2%, respectively.

The post 2 top ASX dividend shares that analysts love appeared first on The Motley Fool Australia.

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More reading

• Down 28% this year, is the Wesfarmers share price at a turning point?
• Here are 2 ASX dividend shares that analysts rate as buys this week
• Why is the Wesfarmers share price having such a stellar start to the week?
• 2 defensive ASX dividend shares with good yields that analysts rate as buys
• Morgans tips 40% upside for the Wesfarmers share price

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 positions in and has recommended Wesfarmers 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 Fortescue Metals Group Limited (ASX: FMG) share price is under the microscope amid market uncertainty about the iron ore price.

Fortescue is a major iron ore ASX mining share. As such, the movement of the iron ore price has a significant impact on the company’s profitability.

But the founder of Fortescue, and one of the country’s prominent business leaders, Andrew Forrest is not worried about what might happen next.

Forrest optimism

According to reporting by the Australian Financial Review, Forrest said there is “not a snowflake’s chance in hell” of a global recession this year. While individual countries could see a recession, he thinks that pent-up demand after COVID will help things.

But Forrest conceded markets might be “choppy and uncertain” for up to three years, the report said.

Forrest pointed to a couple of areas that will enable Fortescue to get through the current problems of rising interest rates, elevated inflation, and slower growth. Those advantages are Fortescue’s low-cost base and its green energy plans.

Another factor that could impact the iron ore price — and the Fortescue share price — is the potential of a ‘central ore buyer’ in China to try to control the iron ore price, according to the Australian Financial Review.

Forrest’s response? He said it was “a story which gets trotted out every three years”. So, we’ll see how that one plays out.

Green energy ambitions to offset inflation?

Forrest thinks that Fortescue will be able to weather inflation and higher interest rates. He believes the company can still raise capital and get through a period of lower commodity prices. Forrest said:

Demand for our product has remained strong. And if global demand for iron ore goes down, the last man standing will be the lowest cost producer. And that is Fortescue.

Fortescue is looking to build a global portfolio of projects to enable it to produce millions of tonnes of green hydrogen (which is made using renewable energy). Forrest said:

We smoke $3.5 billion worth of fossil fuel into the atmosphere every year. That is one hell of a pool of capital annually to invest into your own fuel production and green iron systems.

The AFR noted that there is lots of capital looking for investible projects, with Forrest saying a large part of that is looking for green projects.

Is the Fortescue share price an opportunity?

Forrest might answer yes to that question.

But some brokers recently gave a different view. Morgan Stanley currently rates it as ‘underweight’, which is like a ‘sell’. The price target is $15.95, suggesting a decline of around 10%. However, a recent change in Indian tariffs could provide a boost for lower iron ore grade miners, such as Fortescue.

The broker Ord Minnett rates it as a ‘hold’, with a price target of $19. That suggests a potential rise of around 7.5%.

Looking at the projected grossed-up dividend yield, Ord Minnett thinks it could be 16.7% in FY22 and 14.4% in FY23.

The post Can the Fortescue share price hold up if the iron ore price falls? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s a confusing time to be an ASX shares investor right now.

With inflation raging, interest rates rising and the economy heading downwards, which are the stocks that are value buys rather than value traps? 

Perhaps it would help to see which ASX shares a professionally-managed fund has bought recently.

Alphinity Investment Management, in a memo to clients, revealed three stocks that its team just bought.

A win-win deal in a winning sector

For Alphinity analysts, the “positive earnings revisions” continue to be identified in the energy and resource sectors.

And two ASX shares in particular piqued their interest.

“We have recently added to our positions in Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) following the acquisition by Woodside of BHP’s energy division.”

The Alphinity team believes the deal allows both sides to “pursue attractive growth projects”.

“Strong cash flow generation will also provide capital management opportunities,” read the memo.

“This is particularly the case for BHP but Woodside also should start its new era with an ungeared balance sheet.”

Woodside shares are up more than 45% year to date, while paying out a 5.86% dividend yield. 

The BHP share price is up 11% so far this year, and on top of that is rewarding shareholders with a handsome 11.7% dividend yield.

Global competitors removed from market

The third ASX share that the Alphinity team has added to their fund is chemicals maker Orica Ltd (ASX: ORI).

“Orica has had a few lean years due to excess supply of its key product, explosives-grade ammonium nitrate, especially in Australia, but still managed to deliver a strong interim result in May.”

Current geopolitics, with Russia out of the picture and China’s restricted manufacturing capability, is also having a bearing.

“Market growth and restricted supply out of both China and Russia, has tightened the market, tipping the scales in price negotiations with its customers in Orica’s favour.”

Orica shares have risen more than 13.7% year to date, while providing a 1.54% dividend yield.

Earlier this year, Investors Mutual also identified Orica as a top-shelf stock to hold in 2022.

“Investors begin to appreciate real cash flows generated by companies in the next two to three years, as opposed to hoped-for cash flows in 10 or 20 years’ time,” said director Anton Tagliaferro.

“With interest rates rising, these stocks suddenly don’t look so boring or dull as things normalise.”

The post Why we just bought these 3 ASX shares: fund appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Could China ‘steel’ the show for the iron ore price?
• Woodside share price lifts despite $17b ‘climate bomb’ court action
• Why did the Woodside share price surge ahead on Tuesday?
• BHP share price claws back half of Monday’s losses on Tuesday

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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