Category: Stock Market

The Zip Co Ltd (ASX: Z1P) share price has certainly plummeted. It’s down 70% in 2022. The last 12 months show an 87% decline for the Zip share price. But could the buy now, pay later ASX share ever go to zero?

There have been a few high-profile corporate downfalls in Australia over the years.

ABC Learning was a childcare operator that was worth $2.6 billion but collapsed after taking on far too much debt through acquisitions.

The shareholders of Virgin Australia didn’t get anything as the company entered administration as a casualty of the COVID-19 pandemic. An independent expert concluded that the equity of Virgin Australia had nil value.

What happens to a business that can’t operate anymore?

Businesses that go broke often have a large pile of debt that the company can no longer afford. It’s true that businesses go broke all the time. But ASX shares going broke can be particularly high profile. Shareholders are often at the bottom of the list of who will get money when businesses close. Creditors usually get paid first, with secured creditors at the front of the queue.

Companies don’t necessarily get wound up straight away. There is an insolvency process. If there are creditors, an independent registered liquidator/administrator takes control of the company. The company’s leadership investigates if a plan to save the company can be created.

If there’s no plan to save the business, the administrator will try to find the best option to repay creditors. This can come in many forms, such as selling assets or selling the whole business. After going through the process with creditors, the company can still go into liquidation.

Put simply, if there’s no money left after repaying creditors and everyone who is entitled to payment before investors, then shareholders will get nothing.

Could the Zip share price go to zero?

It is theoretically possible for any business to go to zero.

Fool writer Mike King wrote many years ago about how a sizeable portion of businesses on the ASX faced financial uncertainty.

There have been some significant financial bankruptcies globally in the past.

Despite the huge decline, the Zip market capitalisation is still $890 million and it continues to go for growth.

In February 2022, the buy now, pay later business announced a deal to merge with Sezzle Inc (ASX: SZL) and also announced ongoing growth, with revenue up 89%.

On 31 December 2021, the company said that it had “significant undrawn funding across the group’s debt facilities” and that it had available cash and liquidity of $212.5 million on 31 December 2021.

It is also possible the company could raise capital again.

Zip has been investing for growth to expand its presence internationally.

Growth and company plans

Zip said with its FY22 half-year result that Australia remains a “robust and sustainable model” which delivered the 14^th consecutive quarter of positive cash flow. The company also said that the US is on a path to positive cash flow and continues to scale “at pace” with strong growth.

However, the cash transaction margin sank from 3.7% in the prior year to 2.1% in the first half, reflecting rising bad debt costs reflective of credit headwinds as well as an increased weighting to the rest of the world. It’s taking action to address this performance. The cash transaction margin is expected to be between 2.5% to 3% in the medium term.

Analyst thoughts on the Zip share price

Brokers are somewhat mixed on the business.

The broker Ord Minnett rates the Zip share price as a buy, with a price target of $4. That implies a potential rise of more than 200% over the next year. Ord Minnett thinks that Zip has enough funding on its balance sheet to get to cash earnings breakeven status in the next few years.

Morgans is another broker with a high price target – it’s $3.94, suggesting a potential upside of around 200%. It can see the positives of the deal with Sezzle.

Citi is ‘neutral’ on Zip. But the buy now, pay later business has fallen so much that the price target of $2.15 implies a rise of over 60%.

Macquarie’s last rating was ‘underperform’ on Zip, though the price target of $1.85 now implies a potential upside of more than 40%. It noted the increased spending and bad debts at the company.

UBS currently rates Zip as a ‘sell’ with a price target of just $1. It doesn’t think the ASX share can be as profitable in the future as previously expected and notes the increasing uncertainty.

The post Could the Zip share price ever actually go to zero? 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
• Why A2 Milk, G8 Education, Nearmap, and Zip shares are dropping
• Zip shares hit new multi-year low. What’s going on?
• The Zip share price is a buy with 180% upside: broker
• These were the worst 3 ASX All Ordinaries shares to hold during the March quarter

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. owns and has recommended ZIPCOLTD FPO. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.15% to 7,465.8 points.

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

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price is up 5% to $1.08. This follows the release of an update on the Manono Lithium and Tin Project in the Democratic Republic of the Congo. AVZ revealed that it has now received a positive technical opinion from the Department of Mines. This was the fourth and final requirement for a mining licence. As a result, the company appears confident that it will soon be awarded a mining licence for its flagship project.

EML Payments Ltd (ASX: EML)

The EML Payments share price has jumped 10% to $2.93. This morning the payments company confirmed that it has been in takeover talks. EML advised that earlier this year it held change of control talks with private equity firm Bain Capital that ultimately amounted to nothing. With 9.5% of its shares held short, this news appears to have spooked short sellers.

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up 2% to $12.66. Investors have been buying this mineral sands and rare earths producer’s shares after it announced demerger plans. Iluka believes that demerging its Sierra Rutile West African mineral sands operation will allow the company to focus on its core activities and growth opportunities in Australia. If all goes to plan, Sierra Rutile will have a separate ASX listing.

Webjet Limited (ASX: WEB)

The Webjet share price is up 2.5% to $5.45. This appears to have been driven by a bullish broker note out of Citi this morning. According to the note, the broker has upgraded the online travel agent’s shares to a buy rating with a $6.50 price target.

The post Why AVZ, EML, Iluka, and Webjet shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Webjet share price takes off following broker upgrade
• EML share price soars 11% amid takeover attention
• 3 ASX 300 shares smashing new multi-year highs on Wednesday
• ASX 200 midday update: AVZ and EML shares jump
• Iluka Resources share price marching higher on demerger news

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. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Webjet Ltd. 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 Northern Star Resources Ltd (ASX: NST) share price is edging higher during mid-afternoon trade.

This comes after the company announced a number of non-core asset sales to align with its five-year strategic plan.

At the time of writing, the Australian gold miner’s shares are swapping hands for $10.96, up 1.29%.

Northern Star divest Paulsens and Western Tanami gold assets

Investors are reacting to the company’s latest news today, sending Northern Star shares higher.

According to its release, Northern Star advised it has entered into a binding agreement with fellow gold miner, Black Cat Syndicate Ltd (ASX: BC8).

The sale price of Northern Star’s non-core assets is listed for $44.5 million in cash. This includes the following:

• $14.5 million cash consideration to be paid at sale completion
• The issue to Northern Star of 8.34 million fully paid ordinary shares in Black Cat at a deemed issue price of 60 cents per share
• $15 million cash consideration to be paid on 30 June 2023 (deferred consideration)
• $10 million cash in a series of contingent payments linked to future production post-sale completion

The sale of Paulsens and Western Tanami is expected to be completed in June 2022.

However, this is subject to a number of conditions being met. This includes Black Cat raising $25 million by 15 June 2022 and receiving its shareholders’ approval for the issue of Black Cat shares to Northern Star as part of the transaction.

Northern Star managing director, Stuart Tonkin commented:

The sale of Paulsens, our foundation asset, and the Western Tanami Gold Project align with Northern Star’s five- year strategic plan to generate superior shareholder returns through active and disciplined portfolio management.

We are delighted that Black Cat, which has a proven track record as a responsible operator and successful explorer, intends to undertake extensive exploration at each operation to provide a potential future redevelopment path for the benefit of all stakeholders.

Northern Star share price summary

Since the beginning of the year, Northern Star shares have taken off to post a gain of around 16%. Investor sentiment has strengthened across the sector amid the Russian/Ukrainian war, rising inflation and the recent COVID-19 outbreak in China.

Based on today’s price, Northern Star commands a market capitalisation of approximately $12.72 billion.

The post Here’s why the Northern Star share price is climbing today appeared first on The Motley Fool Australia.

More reading

• ‘Thriving’ ASX gold shares to see more growth in 2022: expert
• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Why is the Northern Star share price having such a positive end to the week?

Motley Fool contributor Aaron Teboneras owns Northern Star Resources 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 Bruce Jackson.

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ASX uranium shares are soaring today amid a positive outlook for the uranium price.

Among ASX uranium shares surging today are Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN). Close on their tails are Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

So why are ASX uranium shares surging?

Uranium price lifts ASX uranium shares

Peninsula shares are surging 14% today, while Bannerman shares are rocketing 16%. Meanwhile, the Deep Yellow share price is rising 9%, Boss Energy is jumping 8%, and Paladin is up 7%, at the time of writing.

ASX uranium shares are lifting amid a rise in the price of the metal. Uranium is used in nuclear power plants.

Bank of America raised the price target of uranium all the way up to 2027, the Australian Financial Review reported.

An analyst at the bank lifted price predictions by 13.5% to US$60.70 a pound in 2022. Meanwhile, the price could hit US$66.90 a pound in 2023, a 38% increase. In 2027, the analyst tips the price to be US$50.

The Ukraine and Russia war is not disrupting shipments but sparking future concerns, the analyst noted. Bank of America analyst Lawson Winder commented on the uranium outlook:

To the best of our understanding, the war has not yet contributed to a direct disruption of shipments of Russia uranium products to the rest of the world.

Rather, the price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.

Uranium futures jumped 0.32% to US$63.70 pounds in global markets overnight. This was the highest level since the Fukushima disaster of 2011, Trading Economics reported. The uranium price has surged nearly 112% in a year. In recent days, news out of the United Kingdom may have lifted the price of uranium. The UK is planning to build eight new nuclear reactors by 2030.

The post Why have ASX uranium shares bolted out of the gate today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How did ASX uranium shares perform last quarter?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• These were the best performers on the ASX 200 last week
• Here are the top 10 ASX shares today

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 Lake Resources share price has had a stellar month. The company’s share price has surged nearly 56% from $1.25 at close on 14 March to today’s price of $2.00.

At the time of writing, shares in the lithium explorer are up 8.7%, trading at $2.00 despite no news from the company.

So what has been impacting this share in the last month?

Why has the Lake Resources share price soared?

The Lake Resources share price reached a high of $2.45 on 4 April before retreating. This was more than double the company’s share price a month ago.

Company news and market sentiment towards electric vehicles (EV) have likely impacted the Lake share price. Lake explores lithium, a critical component of EV batteries.

On 29 March, the Lake share price surged nearly 15% amid an agreement with Japan company Janwa Co.

Lake signed a non-binding memorandum of understanding for offtake of up to 25,000 tonnes per annum (tpa) of lithium carbonate from the Kachi project in Argentina.

Company management hopes to produce 100,000 tonnes of lithium by 2030.

Meanwhile, on 11 April, the company’s share price leapt nearly 7% higher amid an agreement with Ford Motor Company. Under the deal, Lake will provide Ford with 25,000 tpa of lithium from the Argentina project. Shares charged up 16% in early trade on this day before pulling back.

On 12 April, Bell Potter lifted its price target on the Lake Resources share price by 55% to $2.83. Bell Potter said:

LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direction lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods

Lithium explorers could see the entrance of a new high profile entrepreneur into the market in the future. On Saturday, Elon Musk tweeted Tesla may take up lithium mining.

Lake Resources share price snapshot

The Lake Resources share price has exploded 533% in the past 12 months and is up 97% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.

Lake Resources has a market capitalisation of about $2.5 billion.

The post The Lake Resources share price has surged 56% in a month. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why is the Lake Resources share price powering down by 8% today?
• Lithium watch: Broker tips Lake Resources share price to rocket 42% higher
• How did ASX lithium shares perform today?
• Here are the top 10 ASX shares today
• Why IGO, Lake Resources, Regis Resources, and ResApp shares are charging higher

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

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

Netflix (NASDAQ: NFLX) is having a rough first few months in 2022. Due to multiple factors, including rising competition and headwinds from the economy’s reopening, the stock is down over 40%.

The company will be reporting first-quarter earnings on April 19, and that event could create a buying opportunity for long-term investors in the coming weeks. Let’s look at why that might be the case. 

Netflix is way ahead of the competition 

Usually, Netflix adds roughly 8.4 million subscribers in the first quarter, including cancellations. At least, that’s been the average in the first quarter, going back to 2017. Management has set the bar much lower this year. Netflix guided investors to look for additions of just 2.5 million in Q1 of this year, which is 5.9 million below its historical average. The lowered expectations make it more likely that Netflix will surpass those estimates. However, if it reports less than the 2.5 million figure, that could trigger further selling of Netflix stock.

That scenario would be a buying opportunity for long-term investors, barring any commentary from management that suggests there are serious problems. Don’t get me wrong — slowing subscriber growth is not something to ignore. That said, the stock has arguably already paid the price, falling 42% so far in 2022. Furthermore, the coronavirus pandemic may have boosted subscriber growth during the initial lockdown phases, but that likely brought forward customers who may not have signed up until 2022 or 2023. Understandably, growth would slow after a massive surge. 

That brings me to the fear of rising competition. Netflix has had more than a decade’s head start on most of these new entrants. It already boasts 222 million paying subscribers, while The Walt Disney Company is the only other one that claims over 100 million. Moreover, Netflix’s 222 million subscribers generated nearly $30 billion in revenue in 2021, and it’s already on pace for more in 2022. The massive scale gives Netflix a difficult-to-match content budget. In 2021, it spent $17.7 billion on content, $6 billion more than in 2020.

NFLX Operating Margin (TTM) data by YCharts

Perhaps more importantly, even though Netflix is boosting spending on content, it is doing so responsibly. The restraint could be demonstrated by observing the rise in Netflix’s operating profit margin in the last five years. The company is balancing a rising content budget with an intent to increase profitability. Indeed, management’s long-term outlook has stated a goal of steadily increasing the operating profit margin each year.

The sell-off has Netflix trading at bargain prices 

Netflix is trading at price-to-sales and price-to-earnings ratios of 5.3 and 31, respectively. Those are near the lowest valuations it has sold for in the last five years. As I mentioned earlier, the company is paying the price for slowing growth and concerns over competition. 

NFLX PS Ratio data by YCharts

However, Netflix has a powerful secular tailwind at its back from consumers canceling traditional cable subscriptions and moving to streaming services. Additionally, a rise in the quantity and quality of mobile devices means people have more opportunities to stream content.

There will undoubtedly be volatility in the near term, especially surrounding the company’s earnings report on April 19. Still, in the long run, Netflix could steadily increase subscribers and profits for several years — and it could be an excellent stock to buy in the coming weeks. 

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

The post Why Netflix could be a buy in the coming weeks appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Netflix, and 1 reason to sell
• Better buy: Netflix vs Nvidia
• 5 of the fastest-growing stocks on the planet
• Are Netflix bears looking at the wrong numbers?

Parkev Tatevosian owns Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. 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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ASX gold shares have, as a whole, enjoyed an excellent year so far in 2022.

To give you a broad picture, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has gained 13.2% since the opening bell on 4 January.

By comparison, the All Ordinaries Index (ASX: XAO) has lost 2.2% year to date.

ASX gold shares shining bright amid rising gold prices

The common tailwind that all ASX gold shares have been enjoying is the increasing price of the yellow metal they dig from the ground.

On 4 January, when the ASX opened for the first day of trading in 2022, gold was trading for US$1,801 (AU$2,401) per troy ounce, according to data from Bloomberg. Today that same ounce is worth US$1,969, an increase of more than 9%.

That increase helped push the Evolution Mining Ltd (ASX: EVN) up 10.3% this calendar year. Meanwhile, the Northern Star Resources Ltd (ASX: NST) share price has gained 15.9% while Regis Resources Ltd (ASX: RRL) shares are up 19.5% year-to-date.

Of course, that’s all water under the bridge now.

So, what can investors expect for gold and ASX gold shares next?

“It appears gold could be about to kick off a bull trend supported by higher borrowing costs (yields), Russian tension lingering, and lockdown concerns,” says Jessica Amir, Australian market strategists at Saxo Markets. “Gold has historically outperformed equities every time the Fed rose interest rates, with a suite of hikes.”

In the year ahead, Saxo sees gold stocks “thriving and seeing higher earnings and share price growth”.

An international gold stock to consider

Atop a broad choice of outperforming ASX gold shares, there are numerous large-cap gold stocks listed in the United States, and elsewhere.

Amir singles out Newmont Mining Corp (NYSE: NEM) as a gold share to consider for investors who believe gold will continue to rally.

According to Amir:

The biggest gold company in the world is arguably Newmont, which makes 86% of its money from gold, and 5% from silver. Newmont shares are trading 35% up this year, and given its 2022 earnings are expected to rise (Q1 earnings due 22 April), Newmont is one to watch.

You’d also expect the company to upgrade its outlook for 2022 for gold, supporting its income rising and earnings (EBITDA). Remember rising earnings generally supports share price growth.

Whether you’re looking into ASX gold shares or international companies, keep an eye on those factors Amir pointed out that could impact the price of gold.

The post ‘Thriving’ ASX gold shares to see more growth in 2022: expert appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to sell today
• 5 things to watch on the ASX 200 on Tuesday
• Why IGO, Lake Resources, Regis Resources, and ResApp shares are charging higher

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 AMP Ltd (ASX: AMP) share price is edging higher today following a company update on the Collimate Capital demerger.

At the time of writing, the financial services company’s shares are trading at $1.045, up 1.95%.

What did AMP announce to the ASX?

In its announcement, AMP disclosed that it won’t be undertaking a share consolidation in the annual general meeting (AGM) on 20 May as previously advised.

Last month, the company stated in its annual report that a resolution would be put forward regarding the demerger of its private markets business Collimate Capital. However, this date has been pushed back until the vote in June on the proposed demerger.

AMP noted that further information on the share consolidation and process for shareholder approval will be provided prior to the shareholder meetings.

The demerger process will be conducted through a legal process known as a scheme of arrangement. This will include a number of steps such as obtaining approval from shareholders as well as court approval.

When the demerger is complete, Collimate Capital will trade as a separate company listed on the ASX.

AMP said that shareholders will be sent details of the demerger, including voting and upcoming shareholder meetings in due course.

Furthermore, the company mentioned that it has also received enquiries from other parties expressing interest in the Collimate Capital business.

More on Collimate Capital

Following a review of AMP’s business portfolio, management declared its intent to separate and demerge Collimate Capital in April 2021.

The reason behind the motive is that AMP is made up of two distinctly different businesses — a domestic retail wealth manager and a global private market (infrastructure and real estate) business with institutional clients.

Management believes that separating the businesses will accelerate their individual growth strategies, enhance customer focus, and deliver value to shareholders.

AMP share price snapshot

Over the past 12 months, AMP shares have fallen by 14% in value. Most of these losses occurred towards the backend of 2021.

Although, when looking year to date, the company’s shares are up by around 3%.

Based on today’s price, AMP commands a market capitalisation of roughly $3.4 billion.

The post Own AMP shares? Here’s the latest on the company’s planned demerger appeared first on The Motley Fool Australia.

More reading

• Can the AMP share price finally turn the corner in April?
• AMP share price hits $1 mark for first time since February: analysis
• Own AMP shares? Here’s how this ASX company did in March
• AMP (ASX:AMP) share price lower on asset sale news
• The AMP (ASX:AMP) share price gained on Friday, what happened?

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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Shares in CSR Ltd (ASX: CSR) are flat today and holding the line at $6.05 apiece. As we approach the mid-point in April, CSR shares are just 8% higher in the past 12 months.

After trading within a fairly wide sideways channel in that time, shares have recently spiked from a low of $5.54 in March to sit back near 52-week highs.

What about the CSR dividend?

Whilst dividend growth has been lumpy over recent years, payment consistency has been a forte of CSR’s for more than 30 years now.

“CSR has paid twice yearly dividends every year since 1990 as well as issuing periodic special dividends,” according to TMF.

“The company’s dividends vary between unfranked, partially franked and fully franked and are typically paid in July and December each year. CSR has also executed a number of share buybacks over the past 15 years.”

Most recently, it paid a fully franked interim dividend of 13.5 cents on 10 December 2021.

Analysts are baking in a fairly stable growth schedule over the coming periods for CSR as well. If there are no hiccups, CSR could recognise a pre-tax profit of $142 million in H2 FY22, up from $126 million in H1, according to Bloomberg consensus estimates.

As a result, consensus forecasts for CSR’s dividend are for a 16.2 cents per share payment in H2 FY22, followed by a 16.3 cents per share payout in H1FY23.

Factoring in last year’s payment, that would bring the FY22 dividend to 29.7 cents per share, with full franking credits available as a taxable offset.

At the current share price, that signifies a forward dividend yield of 4.89%, higher than most investment grade fixed income instruments at the moment.

On a sequential basis, the dividend growth forecasted over the next few semi-annual periods is set to outpace the level of inflation, in real terms.

In the last 12 months, CSR shares have spiked 8% and are now up 3% for the year to date.

The post How big will the CSR dividend be in 2022? appeared first on The Motley Fool Australia.

More reading

• Top broker warns this ASX 200 share may be next to issue a profit warning
• Guess what $10,000 worth of CSR (ASX:CSR) shares bought a decade ago looks like today
• Could the CSR (ASX:CSR) share price be set for a boost?
• The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy?

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 Krakatoa Resources Ltd (ASX: KTA) share price is back in the red today following yesterday’s 94.92% surge.

At the time of writing, the Krakatoa share price is 10.5 cents, 8.7% lower than its previous close.

For context, the broader market is in the green on Wednesday. Right now, the All Ordinaries Index (ASX: XAO) has gained 0.28% while the S&P/ASX 200 Index (ASX: XJO) is up 0.19%.

Let’s take a closer look at what’s been going on with the precious metals explorer’s stock lately.

What’s weighing on Krakatoa shares today?

The Krakatoa share price is trading in the red on Wednesday despite no news being released by the company.

It’s possible the slip could be due to investors cashing in at a higher price, spurred by yesterday’s whopping gain.

That lift was inspired by a major ionic rare earth elements discovery at the company’s Mt Clere Project.

Drilling at the project’s Tower Prospects found thick intersections of clay hosting the elements.

For those unaware, rare earth elements are essential for all sorts of technology, including gadgets, cameras, machinery, and lights.

Krakatoa CEO Mark Major also pointed out that demand for rare earth elements was expected to take off over the coming decade. Major said:

We are now in a strong position to capitalise on this potential as we have only covered a six square kilometre area, mineralisation is open, thick, and close to surface.

Significantly, we have multiple other high priority targets within the extensive 2,300 square kilometre property.

About the Krakatoa share price

While today’s drop is likely to be disappointing for some, the Krakatoa Resources share price is still in a pretty good position.

Right now, it’s 19% lower than its 52-week high, reached in intraday trade yesterday. Comparatively, it’s trading for 162.5% more than its 52-week low of 4 cents.

It’s also trading 114% higher right now than it was at the start of 2022.

The post Krakatoa share price sinks 9% following Tuesday’s surge appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares skyrocketing on major new discoveries
• Why Iress, Krakatoa Resources, Paradigm, and SE Advanced Materials are pushing higher
• Krakatoa Resources share price explodes 95% on major discovery

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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