Category: Stock Market

The Fortescue Metals Group Limited (ASX: FMG) share price is coming under selling pressure today. This is despite the iron ore mining outfit not releasing any price sensitive announcements to the ASX.

At the time of writing, Fortescue shares are fetching for $19.81, down 6.64%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,298.3 points, down 2.34%.

Below, we take a look at what’s dragging the miner’s shares along with the benchmark index.

Spot price of iron ore plummets

After spending the last couple of months hovering around the US$150 barrier, the iron ore spot price has dramatically fallen.

Courtesy of Trading Economics, the steel making ingredient is trading at US$136.50 per metric tonne as of last night. This represents a fall of almost 9% compared to Friday’s closing price.

The sharp decrease will have an impact on Fortescue’s bottom line, however, profits are still expected to be churned out. The company reported industry leading C1 costs of US$15.28 per wet metric tonne for H1 FY22. C1 costs refer to the ‘direct’ production costs incurred in mining and processing the iron ore.

China lockdown fears

Weighing down the market price for iron ore, and effectively Fortescue’s shares, has been China’s worsening COVID-19 situation.

The highly-transmissible Omicron variant has recently taken hold of Beijing, which is expected to lead to government restrictions.

This comes as China’s most populous city, Shanghai has been under severe lockdowns since the start of the month. Residents have been confined to their homes, and often protesting their frustration with the government’s strict zero-COVID policy.

The city has experienced major food shortages and delivery delays due to road closures and fewer delivery drivers.

Yesterday, China reported 3,266 symptomatic cases and 20,454 asymptomatic cases of COVID-19. The majority of these were recorded in Shanghai with 19,455 cases, and Beijing registered 19 cases, including 14 symptomatic.

It’s worth noting that with the economic conditions rife, the construction sector could potentially fall further. This would evitability have a profound impact on the demand for iron ore leading to a strong price drop.

Fortescue share price snapshot

Regardless of Fortescue shares being lower today, its shares have gained 10% since the start of 2022.

However, when looking further back, the company’s share price is down by 6% over the last 12 months.

Based on valuation metrics, Fortescue presides a market capitalisation of approximately $65.34 billion.

The post The Fortescue share price is falling 6% on Tuesday. Here’s why appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The EML Payments Ltd (ASX: EML) share price is in the red today amid the company releasing a third-quarter trading update.

At the time of writing, shares in the payment solutions company are trading at $1.76 each, a 35.06% fall.

Let’s take a look at what this payments technology company reported today.

EML share price slides following quarterly update

The company’s third-quarter FY2022 results included:

• Underlying earnings before interest, tax depreciation and amortisation (EBITDA) dropped 14% on prior corresponding period (PCP) to $13.6 million
• Underlying net profit after tax amortisation (NPATA) fell 22% on PCP to $13.6 million
• Gross debt volume surged 408% on PCP to $23.9 billion
• Underlying overheads surged 50% on PCP to $28.6 million
• EBITDA guidance for FY22 cut by 8% to $52-$55 million
• Revenue jumped 21% on PCP to $59.8 million

What else happened during the quarter?

Underpinning this result was the operating performance of the company’s European prepaid business which EML payments described as “significantly behind”. This business has been impacted by remediation activities.

However, EML said the Australian and North American businesses are trading in line with expectations.

Underlying overheads increased on the back of headcount investment, more IT expenditure, and the acquisition of Sentenial.

EML is expecting more challenges in the fourth quarter, leading to “a reduction in the guidance range”. Commenting on this fall, EML said:

Deterioration in current FX forecast rates from the prevailing rates in mid February are driving approximately $1.5m of the guidance reduction.

Overheads spend in H2 towards higher end of expectations.

What’s next for EML?

EML is expecting operational initiatives to drive the Europe business recovery in FY2023. This includes four operational improvement projects in Europe that were pushed back from H2 FY2022.

Subject to regulatory approval, EML is planning to invest in EUR bonds. The company is also undertaking a project to find efficiency opportunities globally and combat the cost pressure of inflation.

EML share price snapshot

The EML share price has fallen 67% in the past 12 months, while it has slid 44% in the year to date.

By comparison, S&P/ASX 200 Index (ASX: XJO) has returned nearly 4% in the past year.

EML has a market capitalisation of about $674 million based on the current share price.

The post EML share price crashes 35% amid guidance cuts appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Beach Energy Ltd (ASX: BPT) have tumbled from the open on Tuesday following the release of its third quarter results and FY22 expenditure guidance update.

The Beach Energy share price closed out the previous trading week at $1.65 before slipping to a near-two week low of $1.60 early in the session today.

Revenue up 15%, expense guidance lowered

Beach Energy printed Q3 sales revenue of $458 million, a 15% gain on the prior quarter. Production tightened by 3% to 5.2 MMboe whilst sales volume(s) reduced by 5%, offset by surging oil and gas markets.

In fact, the gain was mainly due to higher realised oil and gas prices, Beach says. It reported a realised oil price of $176.5 per barrel and a realised gas/ethane price of $8.4/GJ, up 51% and 10% respectively.

In the meantime, Western Flank oil is expected to report a 35% oil decline in FY22 “due to refined reservoir management strategies”.

Aside from that, growth initiatives such as the Thylacine West 1 and Waitsia Stage 2 Perth Basin development each progressed in drilling programs during the quarter.

Drilling at Thylacine is expected to be finalised in Q4 FY22, alongside an LNG supply and purchase agreement with BP, the company says.

Meanwhile, Beach also adjusted its capital expenditure (CAPEX) guidance down to $900 million–$1 billion, down from a previous $900 million–$1.1 billion.

It puts this down to “deferral of spend to FY23”. So the company hasn’t actually reduced its expenditure, just deferred it to a later date.

“The reduction is mainly due to revised timing of work programs with deferral of some spend to FY23.
Major capital programs remain on budget and on schedule,” Beach commented on the adjustment.

Speaking on the results, Beach Energy’s acting CEO, Morné Engelbrecht said:

The third quarter was highlighted by the achievement of major milestones as we continued to deliver
meaningful progress against our growth strategy. Quarterly production remained broadly stable despite weather challenges in the Cooper Basin and maintenance downtime in the Bass Basin.

Pleasingly, Western Flank oil production is performing better than. our beginning-of-year expectations, with a large inventory of workover activity and development well connections supporting the current production levels.

In the Otway Basin, Beach is now well placed to service higher customer nominations as seasonal gas demand increases during winter months. Connection of the Geographe wells has enabled the Otway Gas Plant to deliver average daily gas supply of 152 TJ per day since quarter-end.

In the last 12 months, Beach Energy’s share price has begun its recovery but is still down more than 4% in that time. This year to date however it has surged more than 27% amid a commodity market boom.

The post Beach Energy share price slips despite bumper quarter appeared first on The Motley Fool Australia.

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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 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 Bruce Jackson.

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The new year is proving to be a tough slog for the Hazer Group Ltd (ASX: HZR) share price.

The technology company that’s creating low-emissions hydrogen and graphite production processes saw its stock surge 41.98% in 2021. It ended last year trading at $1.15.

Sadly, 2022 hasn’t been so kind to Hazer’s shares. They’ve tumbled 20.96% year to date.

At the time of writing, the Hazer share price is trading at 90.5 cents.  

So, what’s been dragging on the hydrogen-focused ASX share this year? Let’s take a look.

What’s going wrong for the Hazer share price?

The Hazer share price has been struggling amid a barrage of news and reports that large investors are hesitant to invest in hydrogen.

Defects in parts for the company’s commercial demonstration project and sliding revenues have weighed on the stock in 2022. Meanwhile, it was boosted by the announcement of a new Canadian hydrogen production facility.

However, some of the market’s big players are wary of hydrogen despite its apparent popularity.

Australian National University energy economist, Paul Burke, believes that Australia’s potential to become a major green energy exporter is vast, reports the Financial Times (FT). But more funds are needed to realise the sector’s potential.

Additionally, Burkes notes that the federal government “could be doing more” to support the nation’s green energy potential.

The government has invested in hydrogen projects – including ‘blue’ hydrogen projects, which create carbon emissions.

In fact, the federal government promised hundreds of millions for hydrogen production in its latest budget.

But that probably won’t be enough.

Hydrogen is one of the newest forms of low-emissions energy and it’s reportedly lacking capital from super funds and investment houses.

While initiatives like an emissions trading scheme or a carbon tax could do more to force investment in low-emissions energy sources, Burke told the FT, a lack of capital could be dragging on sentiment for Australia’s hydrogen sector.

And that could be weighing on the Hazer share price in 2022. Though, the company’s stock isn’t alone in the red.

The share prices of hydrogen-focused companies, Pure Hydrogen Corporation (ASX: PH2), Province Resources Ltd (ASX: PRL), and Sparc Technologies Ltd (ASX: SPN) have respectively slumped 23%, 35% and 51% year to date.

The post The Hazer share price gained 40% last year but its tumbling in 2022. What’s going wrong? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The Graincorp Ltd (ASX: GNC) share price has surged higher in recent weeks to now trade around its 52-week highs.

Graincorp shares have rallied 15% in the last month and are now up more than 20% for the year. That also marks an impressive 92% return over the last 12 months.

During the same time, we’ve witnessed a number of geopolitical events rocking global food indices and contributing to inflation in global food prices.

How has this impacted the Graincorp share price?

Global grain markets have been ratcheting up in 2022 amid a wave of macro-catalysts. Wheat futures recently touched US$1252/Bu [bushel] in March as tensions escalated in Europe. Prices have since levelled off and are now trading around US$1083/Bu.

Both levels are 25-year highs for the commodity.

According to Trading Economics:

Prices remain more than 30% higher than before the Russian invasion amid interrupted exports from the Black Sea.

The FAO [Food and Agriculture Organization] expects Ukrainian wheat production to significantly fall in 2022, with at least 20% of winter plantations not being harvested due to direct destruction, constrained access, or lack of recourses to harvest the crop.

Graincorp’s operating lines all stem back to grains. From its annual report in 2021, the company noted “the key commodities and products handled and traded by [the agribusiness] segment include wheat, coarse grains (including barley, sorghum and corn), oilseeds, pulses and organics”.

Graincorp is also somewhat a price taker on these commodity price gains. This is because its earnings and cost profile directly reflect market conditions.

The company affirmed this earlier in April when it revised its FY22 guidance upward due to “significant ongoing global demand for Australian grain and oilseeds”, alongside favourable planting conditions.

CEO Rob Spurway said:

As we outlined at our AGM in February, we are seeing high global demand for Australian grain and oilseeds and strong supply chain margins for grain exports.

This has been driven by two consecutive bumper crops in east coast Australia (ECA), coupled with supply shortages in the northern hemisphere.

The conflict in Ukraine and resulting trade disruptions in the Black Sea region have created uncertainty in global grain markets, with buyers looking for alternate sources of supply. This has further increased both the demand for Australian grain and oilseeds and export supply chain margin.

In fact, we can see the correlation between the price jump in wheat and the Graincorp share price on the chart below.

Graincorp says it now projects a range for FY22 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $590-670 million. That’s up from $480-540 million previously.

It also expects FY22 underlying net profit after tax (NPAT) of $310-370 million. That’s also well up from previous forecasts of $235-280 million.

The post Why has the Graincorp share price already rallied 17% in April? appeared first on The Motley Fool Australia.

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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 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 Bruce Jackson.

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Elon Musk may have just inked one of the biggest leveraged buyout deals ever.

Musk is the world’s richest person, worth north of US$269 billion according to Forbes. And now he’s poised to buy Twitter (NYSE: TWTR) for US$44 billion (AU$60 billion).

The CEO of Tesla Motors (NASDAQ: TSLA) is taking the social networking platform private. This comes after airing complaints about Twitter hampering free speech and other issues dragging on the company’s growth potential.

Twitter shares gained 5.6% on Monday.

What Elon Musk is offering Twitter investors

In a deal that many thought might not be realised, Twitter investors will get US$54.20 per share, the company said in a statement yesterday (overnight Aussie time).

That’s well above the US$47.25 that Twitter shares were trading for this time last week, and also 4.8% higher than the current Twitter share price of US$51.70.

Though some investors may be eyeing the company’s all-time closing highs of US$77.06 set on 26 February 2021 and wondering if Elon Musk might not be getting a steal.

According to the agreement, Twitter cannot accept counterbids from other potentially interested parties.

A word from Twitter’s soon to be owner

Elon Musk not only is set to take ownership of Twitter, he already has one of the network’s most followed accounts. With more than 81 million followers, Musk comes in at number 8.

As The Motley Fool reported last week, Musk had earlier declined a board seat at Twitter, countering with a takeover proposal.

Commenting on his free speech ambitions for Twitter, Musk said (quoted by Bloomberg):

Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.

The acquisition deal proposed by Elon Musk was unanimously approved by Twitter’s board. It’s expected to be finalised this year.

Under the deal, Musk is kicking in US$21 billion in equity alongside US$25.5 billion of debt and margin loan financing.

Why Tesla shareholders will be watching Elon Musk closely

Even for the world’s richest man, the acquisition of Twitter is no small thing. And it may have implications on Musk’s other ventures.

Commenting on the potential ramifications of the mega deal, Ben Laidler, global markets strategist at social investment network eToro, said:

Such a quick capitulation by the Twitter board for a US$54 per share bid, 30% below the stock’s price high of last year, likely reflects the tough outlook for the social media sector and the only gradual turnaround impact of Twitter CEO Parag Agrawal.

A successful Twitter bid may also raise concerns for Tesla shareholders with Elon Musk, its CEO, becoming involved in yet another time-consuming venture and potentially selling down part of his 9.1% stake, which is valued at over US$90 billion.

The post Elon Musk buys Twitter in $60 billion mega deal appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. 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 Bruce Jackson.

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The Pushpay Holdings Ltd (ASX: PPH) share price is hot property on Tuesday. This follows the company revealing it has received expressions of interest for its acquisition.

At the time of writing, shares in the donor management and church services company are up 23.44% to $1.185. However, Pushpay shares on the ASX are still down almost 30% over the last year amid a sustained selloff in tech stocks.

What’s going on with the Pushpay share price?

As a new week kicks off on the ASX, it looks like Pushpay shares are starting out on a positive note. The latest announcement has enticed the market to take another look at the embattled tech company.

According to the update, Pushpay has been on the receiving end of unsolicited, non-binding, and conditional expressions of interest. Additionally, the filing states these approaches are from third parties seeking to acquire the church software provider.

In response, Pushpay has appointed investment bank Goldman Sachs to assist with the facilitation. However, the company made it clear that the interest has no certainty of producing a final transaction.

What else?

Another dose of news potentially exciting the Pushpay share price this morning is the reaffirmation of the company’s full-year guidance. This concerns the full year ending on 31 March 2022.

As stated in the update, Pushpay is still expecting the previously guided range for underlying EBITDAFI of US$61.5 million to US$63.5 million. Furthermore, when the costs involved with its Catholic initiative are removed, underlying EBITDAFI is expected to be US$63.5 million to US$65.5 million.

The Pushpay share price is still around 2% below where it was coming into 2022.

The post Pushpay share price soars 23% following takeover approach appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Rio Tinto Limited (ASX: RIO) is one of the largest dividend payers on the ASX. But how big is the dividend going to be in FY22? It seems some analysts think the dividend yield is going to be very large indeed.

The ASX miner produces a significant amount of iron ore each year. With the iron ore price currently sitting at approximately US$150 per tonne, the company is projected to continue to generate elevated levels of profit, cash flow, and dividends.

Analysts have had their latest say on the business after Rio Tinto’s quarterly update.

First-quarter production

Rio Tinto reported that its Pilbara iron ore production of 71.7mt in the three months to 31 March 2022 was down 8% compared to the first quarter of 2021 and down 15% compared to the fourth quarter of 2021.

Compared to the fourth quarter of 2021, bauxite production was up 4%, aluminium production was down 3%, and mined copper production was down 5%.

The company said that its Pilbara operations had a challenging first quarter because mine depletion was not offset by mine replacement projects. This was attributed to the delayed commissioning of Gudai-Darri mine although the first ore there is still forecast for the second quarter of 2022.

There have also been ongoing commissioning challenges at the Mesa A wet plant, which is still impacting the production ramp-up at Robe Valley.

The ASX mining share also said that COVID-19 constraints impacted labour supply as it experienced increased cases in the Pilbara after the WA border reopening in March.

In terms of the iron ore price, it rose 33% over the quarter. Rio Tinto reported:

[S]upply concerns due to the war in Ukraine has outweighed muted demand growth and a crackdown on speculative trading behaviour in China. China’s economy is getting a boost with infrastructure spending, but COVID-19 lockdowns pose downside risks to near-term construction activity.

How big is the Rio Tinto FY22 dividend going to be?

Citi, which rates Rio Tinto as a buy with a price target of $135, thinks the FY22 dividend the company is going to pay could translate into a grossed-up dividend yield of 17.8%, thanks to the elevated iron ore price.

There are plenty of other analysts that also think that Rio Tinto is going to pay a large dividend in FY22.

Macquarie also rates Rio Tinto as a buy, with a price target of $140. The broker thinks that the ASX mining share is going to pay a grossed-up dividend yield of 16% in FY22 with the strong iron ore price expected to help in the shorter term.

Credit Suisse is another broker that rates Rio Tinto as a buy, with a price target of $138. The broker has projected that Rio Tinto is going to pay a grossed-up dividend yield of 13%.

Rio Tinto share price snapshot

Despite the volatility, since the start of 2022, the Rio Tinto share price has risen around 9%.

The company has a current market capitalisation of just over $40 billion.

The post Can Rio Tinto shares really pay a dividend yield of 18% in FY22? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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Investors have been eagerly waiting for a turnaround for the A2 Milk Company Ltd (ASX: A2M) share price.

The embattled company’s shares have lost more than 75% since reaching an all-time high of $20.05 in June 2021.

At the time of writing, A2 Milk shares are trading 0.44%% lower to $4.56 apiece.

Why is the A2 Milk share price falling?

The COVID-19 pandemic has caused the infant formula company to face supply chain issues and margin pressure from increasing competition.

In addition to the cross-border trade issues, weakened growth in China has driven the A2 Milk share price to fall.

Management noted the challenging market conditions in its first half results, which included lower birth rate numbers recorded in China.

With a rapidly changing market landscape, A2 Milk has been forced to adapt.

Increasing brand investment to drive consumer demand along with other strategic growth priorities is paramount to A2 Milk.

As such, implementation is currently underway, with the company advising “good early progress across a range of initiatives”.

Furthermore, A2 Milk is expanding in new markets such as Malaysia, Singapore and Vietnam. This is on top of building its revenue base in New Zealand and the United States.

For the second half of FY22, A2 Milk expects to deliver revenue growth.

According to Catapult Wealth financial adviser Tim Haselum, this could lead to a recovery in 2023 and beyond.

Does the current share price represent good value?

A number of brokers believe that the A2 Milk share price is currently trading at a bargain price.

Following the company’s half-year financial scorecard, Macquarie analysts raised its 12-month price target by 7.7% to $5.60. Based on current share price, this implies an upside of 22% for investors.

On the other hand, the team at Citi lowered its outlook on the company’s shares by 1.8% to $7.02. While the broker reduced its assessment on A2 Milk, it still sees value in the fresh milk and infant formula company. The price target represents a potential upside of 54% from where it trades today.

The post Despite continuing woes in China, here’s what to like about A2 Milk shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns A2 Milk. 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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Brickworks Limited (ASX: BKW) share price has been falling since the end of March. Given the decline, there could be some good reasons to consider the business.

Brickworks may be best known for being an Australian building products company but there are other divisions within the business to consider Brickworks for the long term.

Here are four reasons why the Brickworks could be attractive, beyond simply being cheaper:

Industrial property trust

One of the company’s divisions that is growing rapidly for Brickworks scaling is its industrial property trust.

This is a 50:50 partnership between Brickworks and Goodman Group (ASX: GMG). The trust builds industrial properties on excess land that Brickworks no longer needs. The land is sold into the trust.

Brickworks and Goodman both talk of elevated demand for logistics and e-commerce properties which are helping rental growth and valuations.

Brickworks’ share of the trust went up 38% in the first half of FY22 to $1.26 billion, thanks to valuation gains and some projects being completed.

But the trust has a long pipeline of land. It said there is a total of 221,100 square metres of lease pre-commitments already secured across the property trust. In addition, a further 176,400 square metres is available for development at existing estates.

Based on current demand, Brickworks expects its estates to be fully built out within three years. Brickworks said that will result in additional gross rent of around $60 million and leased asset value of $1.5 billion, taking total leased assets to around $4.5 billion.

Operational property trust

Another initiative by management to generate value for shareholders was announced in the HY22 result, which could be a boost for the Brickworks share price.

We have just looked at what Brickworks does with excess land – it’s sold into the industrial property trust. But there’s an extra plan – sell operational manufacturing properties into a different trust.

This will allow Brickworks to ‘realise’ the value of the land in its Australian building products segment.

Brickworks said that 15 properties have been identified for inclusion in the first stage, with a total gross value of around $415 million.

Brickworks said it expects the sale and leaseback of these manufacturing sites will deliver gross cash proceeds of around $200 million and an estimated pre-tax profit of between $260 million to $280 million after the valuation uplift.

After the initial stage, additional properties with a similar value are earmarked for inclusion in the operational property trust in the coming years.

In the long term, these properties can then be turned into industrial property locations.

Investments segment

Brickworks owns a significant amount of Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares.

Soul Pattinson is an investment house that is invested in a variety of different sectors including telecommunications, resources, agriculture, building products, swimming schools, financial services, and more.

Brickworks says that the ASX share has provided growing dividends and rising earnings for the long term.

US building products

Brickworks isn’t just an Australian business. It also has a growing presence in the US after making a few acquisitions such as Glen Gary, which could help the Brickworks share price for the long term.

The ASX share is looking to make its US operations more efficient and profitable.

The US is a much larger market than Australia, giving the company a long growth runway to work with.

Brickworks also said that there are “property opportunities” emerging in North America, with “strong market interest” for some operational and surplus land assets. It’s considering outright sales, sale and leaseback, and joint venture property development opportunities.

The post 4 reasons it could be time to look at the Brickworks share price appeared first on The Motley Fool Australia.

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• Is it time to buy these 2 quality ASX shares?
• Why is the Brickworks share price sliding on Monday?

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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