Category: Stock Market

Most everyone investing in ASX shares is looking for companies that will go up in value over time.

And perhaps pay some healthy dividends along the way.

But that’s not the sole concern for many investors, who also seek out ASX shares that tick the environmental, social, and governance (ESG) boxes.

Socially conscious investors, for example, want to ensure a company’s workers are treated and paid fairly all along the supply chains.

Importantly, they also want to invest in companies with strong environmental awareness, generally avoiding ASX shares involved in the fossil fuel sector.

But 2022 has thrown up a fresh dilemma for ESG investors. One that’s also ensnared Australia’s super funds.

Maximise ASX share gains or invest ethically?

Energy costs, as you’ll know if you’ve been to the servo lately, have rocketed in 2022.

Crude oil, gas and coal prices were already trending higher heading into the new year, as the global reopening saw demand take-off faster than new supply could keep up.

Then oil-rich Russia’s invasion of Ukraine and the resulting sanctions against Russia put a rocket under fossil fuel prices.

Crude oil hit 13-year highs last month and coal traded at all-time highs. Today fossil fuel costs remain at multi-year highs.

And that’s seen ASX shares digging coal from the ground offer the best returns on the All Ordinaries Index (ASX: XAO) this year.

The super dilemma

Which brings us to the Your Future, Your Super performance benchmarking initiated by the Australian Prudential Regulation Authority (APRA) in July 2021. The regime applies to 80 MySuper products.

The system scores the super funds’ performance against a set of benchmarks. Underperforming funds are publicly named and told to up their game. Those who fail to match or beat the benchmark for 2 consecutive years can be banned from taking on new funds.

And it’s this benchmarking, said Jens Peers, CEO of ethical investment fund manager Mirova US, that may discourage super funds from investing in ASX shares involved in renewable energy, as these may be longer-term plays not yet returning big gains.

According to Peers (quoted by The Australian):

The Your Future, Your Super regulation has a short-term focus on single risk management… The world is going to a low-carbon economy. There is no doubt in my mind that fossil fuels will suffer and find it very difficult to benefit financially. Renewables will do a lot better, but there will be times — such as this year — when fossil fuel companies outperform them.

Peers said APRA’s benchmarking process encourages super funds looking at ASX shares to “all move in the same direction and take no convictions in their portfolios… If you have this short-term focus on investment returns, super fund trustees and the investment personnel at big super funds may not want to make that commitment.”

“Some of these companies may not be sustainable or environmentally friendly,” he added. “Some people really care how their money is invested and they want to see that it is being done in a way which will create an impact.”

To give you a better idea of the dilemma facing super funds under APRA’s benchmarking microscope, here’s how ASX shares in renewable energy stacked up against their fossil fuel peers in the first quarter of 2022.

And we’ll use the 0.1% gain posted by the All Ords in Q1 as our benchmark.

How ASX shares in renewables compare to their fossil fuel peers

ESG investors, brace yourself.

Throwing our focus on short-term investment returns, the numbers for Q1 aren’t good.

First, we’ll look at best performing ASX shares in the renewable energy sector.

Mercury NZ Ltd (ASX: MCY) generates more than 15% of New Zealand’s electricity and all of that electricity is generated from renewable sources. The company has a market cap of $7.5 billion and pays a 3.2% trailing dividend yield, unfranked.

The Mercury share price lost 2.4% in Q1.

Next up we have ASX renewable energy share Contact Energy Ltd (ASX: CEN). The New Zealand-based electricity provider produces some 85% of its electricity from renewable hydro and geothermal stations. The company has a market cap of $5.7 billion and pays an unfranked 4.4% trailing dividend yield.

The Contact Energy share price dipped 1.2% in Q1.

The best performing ASX share in renewable energy was Meridian Energy Ltd (ASX: MEZ). With a market cap of $11.4 billion, Meridian is New Zealand’s largest electricity generator. It generates 90% of its energy from hydro with the rest from wind. The company pays a 3.5% trailing dividend yield, unfranked.

The Meridian Energy share price beat the All Ords benchmark, gaining 3.4% over the first quarter.

As for the fossil fuel stocks?

The super dilemma becomes clear when you look at the comparative performance of ASX shares in the fossil fuel space.

In fact, the top 3 performers on the All Ords in Q1 were all coal stocks.

Coronado Global Resources Inc (ASX: CRN) produces metallurgical coal, which is used in the production of steel. The company has a market cap of $3.8 billion and doesn’t currently pay a dividend.

Coronado shares gained 61% in Q1.

Also rocketing higher and unlikely to make the list of ASX shares receiving the ESG tick of approval was Yancoal Australia Ltd (ASX: YAL). Yancoal is Australia’s largest pure-play coal producer, managing and operating a broad portfolio of coal mines across the country. Yancoal has a market cap of $6.7 billion and pays a 10.4% trailing dividend yield.

The Yancoal share price leapt 71% higher in the March quarter.

Which brings us to the best performing ASX share in Q1, Stanmore Resources Ltd (ASX: SMR). In April 2021, Stanmore Resources was rebranded from its former name, Stanmore Coal, which tells you how the company earns its revenue. Stanmore has a market cap of $1.6 billion and pays a fully franked 4.3% dividend yield.

And the Stanmore Resources share price rocketed 83% in the first quarter.

With APRA running the yardstick over their comparative performance, you can see the ESG dilemma facing fund managers in deciding which ASX shares to add and which to cut from their portfolios.

The post Maximise ASX share gains or invest ethically? The SUPER dilemma appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of the quarter
• ASX mining shares were the leaders last quarter. Here are the top performers
• The best ASX All Ordinaries shares of the March quarter unmasked
• Rain or sunshine for ASX renewable shares in the March quarter?

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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Major broker Macquarie has weighed in on the lithium market and tipped its preferred ASX shares.

There are four ASX lithium shares that Macquarie thinks will outperform.

Which ones are they and how are they going today?

Broker reveals preferred ASX lithium shares

Macquarie favours Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS), the Australian Financial Review reports.

The Mineral Resources share price is up 0.61% today and is currently trading at $62.21. Macquarie has placed an $83 price target on the company’s shares. This is 33% higher than the current share price.

Macquarie reckons the Pilbara Minerals share price will hit $4.30. Pilbara is rising 1.35% today and is currently trading at $3. This means Macquarie is predicting a 43% upside.

The Macquarie analysts also think ASX lithium shares Allkem Ltd (ASX: AKE) and Liontown Resources Ltd (ASX: LTR) will outperform their peers. The Allkem share price is lifting 3.3% following the miner’s results release today showing a record-breaking third quarter. Meantime, the Liontown share price is down 0.3%.

Allkem has a 66.5% interest in the Olaroz lithium carbonate project in Argentina.

Commenting on Allkem, Macquarie said:

AKE’s production is expected to increase 125% from 50kt Lithium Carbonate Equivalent (LCE) in FY21 to over 120kt beyond FY26, leveraging the buoyant lithium pricing market.

Liontown is exploring lithium in the Kathleen Valley and Buldania in Western Australia. The company aims to produce battery minerals to power electric vehicles (EV). It states that by 2030, an estimated 145 million EVs will be on the road.

The post Which ASX lithium shares does Macquarie tip to outperform? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• New ASX uranium share to hit boards next month and investors are already pouncing
• Allkem share price on watch following record-breaking third quarter
• Why is the Allkem share price having such a stellar day?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week with a solid gain. The benchmark index is currently up 0.55% to 7,521.1 points.

Here’s what is happening on the ASX 200 today:

Bank of Queensland tumbles

The Bank of Queensland Limited (ASX: BOQ) share price is tumbling today following the release of the regional bank’s half year results. For the six months ended February 28, Bank of Queensland delivered a 14% increase in cash earnings to $268 million. Management advised that this was driven by lending momentum, higher non-interest income, carefully managed costs, and a loan impairment expense credit in the half. However, its performance versus the prior half was weaker, with cash earnings down 9% over that period.

Allkem shares jump on third quarter update

The Allkem Ltd (ASX: AKE) share price is racing higher today following the release of a record-breaking third quarter update. Thanks to record revenue generation at Mt Cattlin and Olaroz, Allkem reported quarterly group revenue of US$235 million and group gross operating cash margin of US$189 million. These records won’t stand for long, with management expecting lithium prices to be even stronger during the fourth quarter.

Netwealth shares fall on Q3 update

The Netwealth Group Ltd (ASX: NWL) share price is in the red today after the release of the investment platform provider’s quarterly update. Netwealth reported a modest 1.6% increase in funds under administration (FUA) to $57.6 billion. Though, it worth noting that this growth was achieved despite the company facing negative market movements which impacted its FUA by $1.7 billion.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Qantas Airways Limited (ASX: QAN) share price with a 6% gain on no news. Going the other way, the worst performer has been the Bank of Queensland share price with a 5% decline. This follows the release of the bank’s half year results this morning.

The post ASX 200 midday update: Bank of Queensland sinks, Allkem jumps appeared first on The Motley Fool Australia.

More reading

• New ASX uranium share to hit boards next month and investors are already pouncing
• Allkem share price on watch following record-breaking third quarter
• Bank of Queensland shares in focus amid strong first half profit growth
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

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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.

Amazon (NASDAQ: AMZN) is getting a lot of attention after announcing a 20-for-1 stock split on March 9. Shareholders must approve the move on a vote on May 25 before it can go into effect.

Regardless, the change will not impact ownership percentages for shareholders. But there are more prominent reasons to be excited about Amazon stock. Keep reading to find out what those are.

1. Amazon web services is accelerating

Amazon reports operating-income results from three distinct segments: North America, international, and Amazon Web Services (AWS). In the year ended Dec. 31, Amazon reported $24.9 billion in operating income. Of that total, $18.5 billion came from AWS.

Similarly, in 2020, Amazon earned $22.9 billion in operating income, and $13.5 billion was derived from AWS. The coronavirus pandemic accelerated the adoption of cloud computing, and as a result, AWS is thriving.

AMZN Operating Income (TTM) data by YCharts.

Fortunately for shareholders, the trend is unlikely to reverse because for businesses, the move to cloud computing replaces a considerable, upfront fixed cost with a smaller recurring cost, based on usage. In its fourth-quarter ended Dec. 31, AWS generated $17.8 billion in revenue. That was up by 40%, compared to the same quarter of the prior year. What’s more, AWS has grown revenue at an accelerating rate for four consecutive quarters.

Businesses typically sign long-term contracts with Amazon for cloud services. As of Dec. 31, 2021, the average length of these long-term contracts was 3.8 years.

It’s not like there was a boom during the pandemic that will quickly snap back in the aftermath. The value of these contracts is increasing, too. As of Dec. 31, the total value of long-term contracts for cloud services was $80 billion. That figure is up sharply from the $50 billion total at the end of 2020.

2. Amazon is becoming a dominant force in advertising

The second reason to get excited about Amazon stock is its growing revenue from advertising. In the fourth quarter, Amazon generated $9.7 billion in ad revenue. That was up by 33% from Q4 in 2020.

The company is home to more than 200 million Prime members who have access to fast and free shipping on millions of items. Plus, millions more shoppers get fast and free shipping on orders over $25. Both groups of shoppers have payment information on file and are one click away from purchasing. It’s no surprise that marketers would be wildly interested in gaining the attention of this powerful buyer network.

In 2021, advertisers spent $763 billion globally, which increased 22.5% from 2020. In recent years, marketers have been allocating more dollars to digital channels because of the ease of measurement and higher return on investment. Digital’s share of overall ad spending totaled 64.4% in 2021, up from 52.1% in 2019. According to GroupM, 85% of digital advertising outside China will go to Facebook, Alphabet‘s Google, and Amazon.

FB Operating Margin (TTM) data by YCharts.

Like cloud services, advertising revenue is lucrative and drives higher profit margins than Amazon’s retail-sales segment. If you need proof of that, consider Alphabet‘s and Meta Platforms’ operating profit margins over the past several years.

The proliferation of Amazon’s web services and advertising revenue — two areas with high profit margins — is undoubtedly more to get excited about than the upcoming stock split. 

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

The post Forget the stock split — 2 bigger reasons to be excited about Amazon stock appeared first on The Motley Fool Australia.

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• Is Amazon stock a buy this month?
• Why Amazon stock slipped on Monday
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• 3 charts that show why Amazon is an unstoppable growth stock

Parkev Tatevosian owns Alphabet (C shares), Amazon, and Meta Platforms, Inc. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Shares in Uniti Group Ltd (ASX: UWL) are trading up around 3% on Thursday morning on the back of a company announcement.

At the time of writing, the Uniti share price has poked its nose above $4.95 and hasn’t budged since trade commenced on Thursday.

Uniti enters deed with consortium

The company advised it has entered into a scheme implementation deed with MBC BidCo Pty Ltd. Under the terms, MBC BidCo will acquire all of Uniti’s equity on a cash consideration of $5 per share.

MBC BidCO is an entity wholly owned by a consortium comprising The Morrison & Co Infrastructure Partnership, Commonwealth Superannuation Corporation and Brookfield Australia.

Uniti accepted the offer back in March after a short-lived bid off between Macquarie and the consortium, resulting in a revised offer of $5 per share.

The deal values Uniti at approximately $3.62 billion which values the company at an enterprise value (EV) of around $3.73 billion, it says. Although, the cash offer backs out any dividends or distributions declared or paid after today.

“[The deal represents] [a]n implied acquisition EV/EBITDA multiple of approximately 27.6x Uniti’s 12 months underlying EBITDA of approximately $135 million to 31 December 2021 and 25.7x Uniti’s FY22F Consensus underlying EBITDA of $145 million,” the company added.

Uniti’s board has thrown its full weight behind the transaction and urges shareholders to do the same in voting.

Speaking on the announcement, Uniti Managing Director & CEO, Michael Simmons said:

The value placed on Uniti by the Morrison/Brookfield Consortium is a testament to the strength of the Uniti business we have built over the last 3 years since our listing on the ASX in February 2019. We
have built a high quality business with long-term annuity earnings, generated from best-in-class fibre access networks and telecommunications technologies. We are immensely proud of the achievements of the Uniti team and believe that under its proposed new ownership, Uniti will continue to build upon its now established place as a successful, growing participant in the market for high speed, high quality, fibre access networks.

The scheme is still subject to a number of conditions not the least shareholder approval, court approval and a go-ahead from the Foreign Investment Review Board (FIRB).

Uniti says that it also hopes to pay a fully franked special dividend on or before the Scheme implementation date.

In the last 12 months, the Uniti share price has spiked 91% and is up 11% this year to date. In the past month however, it has soared more than 58% and is now sitting at 52-week highs.

The post Uniti share price lifts to 52-week high on sweetened takeover deal appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Pendal rejects takeover offer, Mineral Resources rises on broker upgrade
• These were the best performing ASX 200 shares in March
• Macquarie calls ‘pens down’ on Uniti (ASX:UWL) takeover but more suitors possible
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Uniti (ASX:UWL) share price climbs 4% as Morrison ups the ante

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 recommended Uniti 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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The Polynovo Ltd (ASX: PNV) share price has moved in circles over the past couple of months. This is despite the company reporting positive numbers across its key financial metrics in its half-year results.

At the time of writing, the medical device company’s shares are up 0.64% to $1.10.

While the Polynovo share price has gained 10.2% in the past month, it is down almost 30% since the beginning of 2022.

Polynovo shares continue to be heavily shorted

ASX investor sentiment on the Polynovo share price has been mixed due to the inconsistent performance of the business. This has ultimately attracted a large number of short sellers to the company’s registry.

Short-selling is a common trading strategy that aims to profit from a fall in the price of a security. The goal for an investor is to borrow and sell the shares then buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest in companies.

As such, Polynovo remained in the top 10 with 9.87% of its shares being heavily shorted by investors.

In comparison, ASIC had a short interest of 5.44% in Polynovo last year on 7 April. This is almost 50% less than where its shares are shorted today.

Given the large increase in short positions being taken up, it appears investors are concerned about the company’s performance and dwindling cash balance.

Share price summary

Over the past 12 months, the Polynovo share price has continued its downward trend to post a 65% loss.

In comparison, the S&P/ASX 200 Healthcare (ASX: XHJ) sector has lost 4% in the same time frame.

It’s worth noting that the Polynovo share price hit a multi-year low of 83.5 cents on 8 March. This is a stark difference from when it was trading above the $3 mark in April 2021.

Based on today’s price, Polynovo presides a market capitalisation of approximately $727.86 million.

The post Why does the Polynovo share price remain one of the most shorted on the ASX? appeared first on The Motley Fool Australia.

More reading

• 3 beaten up shares you might be surprised to learn are still part of the ASX 200
• These are the 10 most shorted ASX shares
• March was a stellar month for the Polynovo share price. Here’s why
• Why CBA, Kelsian, PolyNovo, and Weebit Nano shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m

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. owns and has recommended POLYNOVO FPO. 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 March quarter was rough for most ASX buy now, pay later (BNPL) shares, but these three managed to outperform their peers last quarter.

The BNPL space was busy with transformational happenings. These included the announcement of a merger between Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL), the removal of former market favourite, Afterpay, and the inclusion of Block Inc (ASX: SQ2) on the ASX.

So, which ASX BNPL shares managed to outperform their peers last quarter? Let’s take a look.

The 3 best-performing ASX BNPL shares of the March quarter

A quick note before we start: This list only considers ASX BNPL shares with market capitalisations of more than $50 million.

IOUPay Ltd (ASX: IOU) – gained 6.25%

Last quarter was rocky for the IOUPay share price, but it ultimately finished it in the green.

After ending 2021 trading at 16 cents, the BNPL stock was being traded for 17 cents at the final close of the March quarter.

That’s despite the IOUPay share price dropping or trading flat on all announcements released by the company in that time.

The last time the market heard from IOUPay was a trading update for the first half of the March quarter.

Then, the company noted the uptake of its BNPL service had increased, as had its transaction volumes.

Block Inc – gained 4.93%

On joining the ASX in late January following its all-scrip takeover of Afterpay, the Block share price finished its first session of trading at $176.63.

Come the final close of the March quarter, Block was swapping hands for $185.33 apiece on the ASX.

Though, sailing wasn’t as smooth for its New York listing – Block Inc (NYSE: SQ). It slipped 16% over the three months ended 31 March.

The big news from the payment services provider last quarter was its earnings for the 12 months ended 31 December and for the three months ended 31 December.

Over the 12 months, Block’s profit soared 62% year-on-year, reaching $4.42 billion. Meanwhile, its revenue surged 86% to $17.66 billion.

Its December quarter earnings were also positive, with the company’s quarterly profit increasing 47%.

The now-ASX BNPL share saw its value surge 32.49% on the release of its results.

Humm Group Ltd (ASX: HUM) – fell 4.44%

The Humm share price outperformed most of its ASX BNPL peers last quarter even though its value declined. However, it might not be included in future lists like this one. That’s because the company recently agreed to sell its consumer finance business which houses its BNPL segment.

The segment is set to be acquired by Latitude Group Holdings Ltd (ASX: LFS) for $335 million.

Following the sale, Humm will still control its commercial business flexicommercial.

The Humm share price slipped from 90 cents to 85 cents last quarter.

The post Own ASX BNPL shares? These were the best performers of the March quarter appeared first on The Motley Fool Australia.

More reading

• Block share price in the red as Afterpay loss balloons 336%
• Why Block, IGO, Navigator Global, and Platinum shares are dropping
• Why are ASX 200 tech shares having such a dire day?
• ASX 200 midday update: Magellan jumps, tech shares tumble
• March was a lousy month for ASX BNPL shares. Here’s why

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Humm 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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Shares in Kuniko Ltd (ASX: KNI) are surging 26% higher today on the back of a company announcement.

The company reported findings from downhole geophysics surveys conducted at its Skuterud Cobalt Project in Norway.

At the time of writing, the Kuniko share price is resting at $1.44 apiece. It is rangebound after an initial spike from the open and trading volume is already at 64% of its 4-week average.

What did Kuniko announce?

The company says that findings from the most recent surveys held at Skuterud have yielded positive results.

“Specialist consultancy firm, GeoVista AB, has captured and interpreted data acquired from a downhole geophysics survey campaign targeting historic drill holes by Berkut Minerals Ltd., enabling optimisation of drill plans,” it said.

Survey findings confirm the presence of ‘conductors’ that were previously identified by airborne studies already completed by Kuniko, it added.

Results say these conductors are “partially or fully off-hole”, meaning they’ve actually been missed – or only partially intersected – by previous drilling attempts from the company.

Speaking on the announcement, CEO Antony Beckmand was pleased with the latest results. He went on to provide a summary of Kuniko’s next moves:

With drilling set to launch in the next weeks, these latest borehole geophysics results provide further signs of the potential and opportunity at the Skuterud Cobalt Project. The downhole geophysics has confirmed the presence of the conductors we originally identified at the Middagshvile target using airborne electromagnetic and magnetic surveys in 2021, while downhole geophysics modelling identifies the conductors aligning with and corresponding to mineralization observed in the available historic core assays.

We have done our geological due diligence on the Skuterud targets, putting Kuniko in a prime position of being well prepared and having solid reasons to be confident and enthusiastic about prospects for unveiling cobalt mineralisation with our upcoming drill campaign.

With a prevailing and forecast undersupply for this valuable mineral, where current sources of supply are heavily reliant on Democratic Republic of Congo, Russia and China, Kuniko is firmly focussed on the rapid development of Skuterud project to bridge the supply chain gap with ethically sourced, responsibly developed, net zero-carbon cobalt.

Kuniko shares have soared in absolute return since first emerging on the ASX in August last year, but the share price has glided down off a high of $$3.23.

The post Here’s why the Kuniko share price is surging 20% today appeared first on The Motley Fool Australia.

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• Guess which ASX battery metals share has rocketed 100% in a week

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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This year so far has been a good one for the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price. It’s gained 11.94% since the start of 2022, outperforming many of its ASX peers.

In fact, the bank’s share price is currently outperforming the S&P/ASX 200 Financials Index (ASX: XFJ) by nearly 10%. The sector has risen just 2.34% year to date.

It’s not only the financials index that Bendigo Bank is leaving in its dust. The S&P/ASX 200 Index (ASX: XJO) has slipped 0.92% since the beginning of 2022, leaving the bank’s stock outperforming it by nearly 11%.  

At the time of writing, the Bendigo Bank share price is $10.40, 0.95% lower than its previous close. Comparatively, the ASX 200 is gaining on Thursday. It’s up 0.53% right now.

So, what’s driven Bendigo Bank’s outperformance this year? Let’s take a look.

Why is the Bendigo Bank share price outperforming?

Bendigo Bank is one of the ASX 200’s best-performing financial stocks in 2022, and that’s despite only one piece of news having been released by the retail bank.

On 14 February, the Bendigo Bank share price got plenty of love over the bank’s half-year earnings.

Over the six months ended 31 December, its revenue increased 8.5% on that of the prior comparable period. Its statutory net profit also rose 31.7% while its interim dividend received a 12.8% boost, reaching 26.5 cents, fully franked.

Bendigo’s strong performance was driven by its residential lending. The Bendigo Bank share price gained 4.43% on the release of the half-year results.

But it’s not the highest performing ASX 200 financial share of 2022.

That crown is worn by National Australia Bank Ltd (ASX: NAB). Its shares have gained 12.59% in 2022 so far – only just besting the Westpac Banking Corp (ASX: WBC) share price with a 12.07% year-to-date gain.  

The post How has the Bendigo Bank share price outperformed its ASX peers by 10% in 2022? appeared first on The Motley Fool Australia.

More reading

• What was the highest ever Bendigo Bank share price?
• Here are the 5 best performing ASX 200 bank shares of the March quarter
• It’s payday for Bendigo Bank (ASX:BEN) shareholders today. Here’s the deal
• How did ASX 200 bank shares perform today?
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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 owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price is an interesting investment proposition in 2022. Do the experts believe it’s an opportunity?

Since the start of the year, the Telstra share price has fallen by 4.5%. Some businesses have fallen much further. For example, the Xero share price has dropped around 30% in this calendar year.

But just because Telstra hasn’t fallen much, doesn’t mean it can’t be good value today.

Brokers are liking the moves that the telco is making to increase the profitability and prospects of the business.

The deal-making telco

One of the things that brokers have liked is the deal between Telstra and TPG Telecom Ltd (ASX: TPG). Morgan Stanley thinks it can help Telstra give customers a cost-effective method of getting access to additional spectrum in regional Australia, which will help speeds. It will also help profit.

TPG will gain access to around 3,700 of Telstra’s mobile network assets. Telstra will also obtain access to and deploy infrastructure on up to 169 existing TPG mobile sites, improving coverage for customers.

Telstra said that the deal would realise more value from Telstra’s network infrastructure for shareholders while making a “very significant” contribution to Telstra’s wholesale mobile revenue.

But this hasn’t been the only deal that Telstra has made in recent history which could impact the Telstra share price.

Last year it announced the acquisition of Digicel Pacific, adding 2.5 million customers and “leading mobile businesses” in PNG, Fiji, Vanuatu, Tonga, Nauru and Samoa. This acquisition generated combined earnings before interest, tax, depreciation and amortisation (EBITDA) of US$233 million for the financial year ended 31 March 2021, with a “strong margin”.

The ASX telco share also entered into a deal to buy GP clinical and practice management software company MedicalDirector for an enterprise value of A$350 million. Its software as a service (SaaS) solutions supports general GPs and other specialists and pharmacies in the Australian healthcare industry. At the time of the acquisition, it supported approximately 23,000 medical practitioners and is used to deliver more than 80 million consultations a year.

Is the Telstra share price a buy today?

Morgan Stanley thinks so, rating it as a buy with a price target of $4.60.

The broker Morgans rates Telstra as a buy, with a price target of $4.56. It acknowledges the underlying growth that Telstra is now generating.

Indeed, Telstra is looking to achieve a compound annual growth rate (CAGR) of high-teens for underlying earnings per share (EPS) to FY25. That marks a change to the last few years where profit has been falling predominately due to the transition of households to the NBN.

Credit Suisse rates Telstra as a buy, with a price target of $4.50.

Ord Minnett also rates the business as a buy, with a price target of $4.50.

The post Do experts think the Telstra share price is good value right now? appeared first on The Motley Fool Australia.

More reading

• ‘Our hard work is paying off’: Here’s why the future Telstra CEO is excited about the ASX share’s ambitions
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• Is the Telstra share price a buy for dividends and growth?
• Here’s how the Telstra share price performed last quarter
• Could April be a good month for the Telstra share price?

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 owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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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