Category: Stock Market

ASX shares with annual turnovers of less than $50 million will receive a handy development windfall under the 2022 federal budget.

That windfall will come in the form of tax breaks involving digital investments.

The benefits aren’t limited to ASX shares. Smaller private companies will also be eligible.

Small-cap ASX shares underperforming in 2022

The proposed tax breaks will come as good news for investors in most small-cap ASX shares, many of which have been struggling in the new year.

Longer-term, the smaller end of the listed market has performed very strongly.

For example, over the past five years, the S&P/ASX Small Ordinaries Index (ASX: XSO) has gained 41%. That’s well ahead of the 28% gain posted by the S&P/ASX 200 Index (ASX: XJO) over that same period.

If you’re not familiar, the Small Ords includes all the stocks in the S&P/ASX 300 Index, while excluding those in the S&P/ASX 100 Index.

However, in 2022 the Small Ords has struggled. The index of small-cap ASX shares is down 7% this calendar year, compared to a year-to-date loss of 1% on the ASX 200.

Which brings us back to the pending tax relief.

The ‘Technology Investment Boost’

Mark Chapman is the director of tax communications at H&R Block Australia.

Commenting on the tax implications for smaller businesses, including small-cap ASX shares, he said, “There are two key measures for small business in this budget but no word as to whether the ‘Temporary Full Expensing’ tax break – which benefits almost all businesses with the instant write off of capital purchases – will be extended beyond 30 June 2023.”

Chapman highlighted the potential significance of the government’s ‘Technology Investment Boost’:

The main headline grabber is the ‘Technology Investment Boost’, which gives businesses with an annual turnover of less than $50 million the ability to deduct an extra 20% of the cost of expenses that support their digital uptake.

Businesses will be able to claim the additional deduction on up to $100,000 of expenditure a year.

And there’s another benefit for small-cap ASX shares in the budget as well.

“In addition, there will be a similar tax break for small business that fund digital training and upskilling for staff,” Chapman said. “The ‘Skills and Training Boost’ gives a small business that spends $100 on training employees a $120 tax deduction.”

The post Federal budget delivers development windfall for small-cap ASX shares: expert appeared first on The Motley Fool Australia.

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• Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’

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 BHP Group Ltd (ASX: BHP) share price now dominates the S&P/ASX 200 Index (ASX: XJO) in a way that it hasn’t for years. For one, BHP is now the largest ASX share on the ASX 200 index, and by quite a distance too. Its unification program, which saw the end of the London dual-listing, has boosted BHP’s presence on the ASX to unprecedented heights. Today, the ‘Big Australian’ makes up more than 11% of the entire weighting of the ASX 200, well eclipsing the Commonwealth Bank of Australia (ASX: CBA). 

But BHP has also attracted attention in other ways recently. Namely by share price appreciation. This company has enjoyed a very pleasing share price performance over the past few years. Back in March 2017, BHP shares were asking under $25 each. Today, the miner is going for $50.46 at the time of writing. That’s a five-year gain of just under 110%. Not bad for an old blue-chip share like BHP. 

But when was BHP’s last all-time high, when the BHP share price was at its highest ever? Well, it wasn’t that long ago. 

What is BHP’s highest ever share price?

It was only back in early August last year that BHP printed its current all-time high. Back then, we saw the mining giant hit a record $54.55 a share, the highest BHP has ever traded at. That’s only 7.5% above where we see the company today. 

It’s been a dramatic year for BHP shares. Not only have we seen this record share price in the past year, but the last 12 months have also seen BHP payout its largest dividends of all time. BHP’s last two dividends total a whopping $4.82 per share, giving the miner a trailing dividend yield of 9.5% (or a mind-bending 13.57% grossed-up with full franking) at the current share price. 

Investors can largely thank the incredibly strong commodities market we have seen recently for these share price gains and dividends.

Who knows what the future will bring next for the Big Australian. But it has certainly been a year to remember for shareholders.

At the current BHP share price, this ASX 200 mining giant has a market capitalisation of $256.25 billion. 

The post What was the highest ever BHP share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Latin Resources Ltd (ASX: LRS) share price has been a very strong performer on Wednesday morning.

At one stage, the Latin America-focused lithium explorer’s shares were up as much as 28% to a 52-week high of 9.7 cents.

The Latin Resources share price has since pulled back but remains up 18% to 9 cents at the time of writing.

Why is the Latin Resources share price rocketing higher?

Investors have been bidding the Latin Resources share price higher today following the release of a drilling update.

According to the release, the first assay results from drilling at the Salinas Lithium Project in Brazil have confirmed spodumene rich pegmatites that contain high-grade lithium, with a peak grade of 3.22% Li2O returned from one sample.

Management notes that these positive assay results are supporting its view that there’s potential for a new, high-grade lithium discovery. Particularly given that the assay results from the sampled pegmatite zones in the first two diamond holes show that the two main logged pegmatites both contain significant lithium.

The company is now looking forward to receiving more assay results in the coming weeks.

Potential ‘major new lithium discovery’

Latin Resources’ managing director, Chris Gale, was very pleased with the drilling results, highlighting that the level of grade is unusually high. He commented:

“These assay results from the first two holes drilled in the South Target area of the Salinas Lithium Project, are extremely pleasing, confirming that the intersected pegmatites contain significant high-grade lithium. These results continue to give us confidence that we may be onto a potentially major new lithium discovery in one of the best mining jurisdictions in the world.

Lithium grades over two percent are not common, with most operations in Australia running between one to one and a half percent lithium. Our pegmatite Peg_2 is running grades of around two percent lithium, with a peak of over three percent over one meter, which are very high.

The team on the ground will now focus the drilling on these much thicker pegmatites to the south to infill our existing sections and extend our drill coverage to the southwest where the pegmatites remain open. These assay results are only for the first two holes, we have another four holes that had thicker intersections with abundant spodumene as well. We are eagerly awaiting further assay results for these holes, which we expect to come through over the next few weeks.”

The post Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’ appeared first on The Motley Fool Australia.

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• Why is the Piedmont Lithium (ASX:PLL) share price storming higher today?

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

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The National Australia Bank Ltd (ASX: NAB) share price has had a stellar March, so can this dream run continue?

The banking giant’s shares have surged 12% in a month. At the time of writing, NAB shares are trading at $32.38, up 0.87%. The S&P/ASX 200 Index (ASX: XJO) is also climbing 0.64%.

Let’s take a look at the outlook for the NAB share price?

Where is the NAB share price heading?

NAB has received positive broker sentiment in recent times. The team at Bell Potter has upgraded the price target on the bank’s shares to $34.50 and maintained a buy rating. The broker estimates NAB’s cash earnings to increase by 3% from FY25 due to higher net interest income and “even higher other banking income”.

Bell Potter is also predicting attractive dividend yields in coming years. The broker believes NAB will pay a dividend of 137 cents per share in FY22 and 135 cents in FY23.

Additionally, last night’s Federal budget could be a positive for banks, according to the team at Switzer. The budget includes a $420 tax cut for 10 million low- and middle-income workers and a $250 handout to pensioners and concession card holders.

Commenting in a video on NABtrade, Peter Switzer said:

If you’ve got a strong spending consumer, it’s going to be good for our banks as well. So the momentum we’ve seen in the banks in recent times will also be helped by this budget.

NAB also recently announced a $2.5 billion buyback. The company is planning another buyback after the company releases half-year results on 5 May, as my Foolish colleague Aaron reported.

NAB share price snapshot

NAB shares have rocketed 25% in the past 12 months, gaining 12% year to date.

For perspective, the benchmark ASX index has surged 11% in the past year.

NAB has a market capitalisation of $104.2 billion based on its current share price.

The post What’s the outlook for the NAB (ASX:NAB) share price in April? appeared first on The Motley Fool Australia.

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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.

What happened?

One of the more popular cryptocurrencies that’s taking the market by storm today is Waves (CRYPTO: WAVES). This cryptocurrency has rocketed 30.3% higher as of 1pm ET, over the past 24 hours. This sort of move, even in the crypto world, raises eyebrows. That’s partly because today’s move is simply a continuation of an impressive trend over the past month, with this token appreciating 325% over this timeframe.

There are a number of reasons for investor enthusiasm in Waves over the past month. Notably, Waves’ founder, Sasha Ivanov, is a native of Ukraine. Accordingly, as the Russian invasion of Ukraine unfolded approximately one month ago, investors appear to have flocked to this Ukrainian project.

However, today’s move appears to be related to the highly anticipated launch of Waves Labs, as well as the announcement that this project’s team is intending to move its headquarters to Miami.

So what?

Waves has gained a lot of attention of late due to its impressive transformation plan announced in February. Today’s announcement signifies some of the first steps Waves is making in transforming its project into one with a dynamic team, but also a highly decentralized model. Among the key features Waves intends to launch in the coming year are a decentralized autonomous organization (DAO) structure, Ethereum virtual machine (EVM) support, and various cross-chain bridges. This team will be busy.

Today’s announcement is a big deal for Waves, as this move to the US includes the formation of an ecosystem fund as well as an “aggressive hiring and marketing plan”. For investors seeking growth in the crypto world, there’s a lot to like about the direction Waves appears to be headed right now.

Now what?

The launch of Waves Labs is a move many investors appear to be viewing favorably, as this project seeks global expansion. The cryptocurrency space is highly competitive, with thousands of projects vying for market share in a sector that’s growing at lightning-fast speed. Accordingly, investors are rightly cheering the aggressive expansion plans put forward by Waves Labs, as well as the focus on on-shoring talent to the US.

Given the voracity of the move Waves has seen of late, investors betting on a continued momentum-fueled rally ought to be considerate of the potential for some mean reversion in the near term. That said, there’s a reason why this token is moving aggressively higher over the past month. Personally, I think this will be an interesting token to keep on the watch list right now.

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

The post This cryptocurrency just exploded 30% higher, overnight appeared first on The Motley Fool Australia.

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Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. 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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March has been a month to forget for Zip Co Ltd (ASX: Z1P) shareholders.

As we approach the final day of the month, the Zip share price is down 25% so far in March.

The buy now, pay later (BNPL) services provider kicked off the month at $2.07 per share and, at the time of writing, the Zip share price is currently up 0.65% at $1.55.

That’s another painful month.

But with a new month ahead, could the Zip share price turn over a new leaf in April?

Sezzle acquisition benefits questioned

As you’re likely aware, on 28 February, Zip announced that it had entered into a definitive merger agreement with Sezzle Inc (ASX: SZL). Zip reported it will acquire Sezzle for a consideration of 0.98 Zip shares for every Sezzle share.

Sezzle has a substantial footprint in the huge BNPL market in the United States.

The Zip share price has fallen 25% since the merger was reported, while Sezzle shares have dropped 26%.

Which brings us back to the question, can Zip turn around in April?

For some insight into that, we turn to the team at Citi.

Citi analysts currently have a neutral rating on the company. However, Citi’s target for the Zip share price is $2.15.

That’s almost 36% higher than the current price.

Citi recently commented:

While we get the strategic merit in the Sezzle acquisition and see the cost synergies (opex and COGS) [operating expenses and cost of goods sold] as achievable, we do not think the acquisition changes Zip’s competitive position in a meaningful way in the US and also see execution risks (e.g. churn) as part of the integration process.

The more immediate concern is higher than expected bad debt and slowing growth due to adjustments to risk settings and slowing e-commerce. However, with the balance sheet repaired we remain Neutral.

Zip share price snapshot

March wasn’t the only month of hardship for Zip shareholders.

Over the past 12 months, the Zip share price has tumbled 78%. For some context, the S&P/ASX 200 Index (ASX: XJO) gained 11% over the full year.

The post Could the Zip share price turn over a new leaf in April? 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 ZIPCOLTD 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 Austal Limited (ASX: ASB) share price is edging higher again on Wednesday morning.

At the time of writing, the shipbuilder’s shares are up 0.5% to $1.91.

This means the Austal share price is now up by almost 8% since this time last week.

Why is the Austal share price rising this week?

The catalyst for the rise in the Austal share price this week appears to be news that Andrew “Twiggy” Forrest has been building a position in the shipbuilder.

According to a substantial shareholder notice, Twiggy’s investment vehicle, Tattarang Ventures, has become a major Austal shareholder this week.

The release advises that Tattarang acquired an economic interest in 17,731,049 shares (the equivalent of 4.9% of Austal’s shares on issue) pursuant to a cash-settled equity swap transaction. This was at an average price of $1.905 per share, which equates to a total consideration of approximately $33.8 million.

In addition, through a series of on-market purchases of Austal shares up to Monday 28 March, Tattarang acquired a further 11,495,771 shares for a total consideration of approximately $20.7 million or an average of $1.801 per share.

All in all, this gives Twiggy’s investment vehicle an 8.1% interest in the shipbuilder.

Why is Twiggy buying Austal shares?

With the Austal share price losing over half of its value since peaking around $4.50 in September 2019, Tattarang appears to have seen this as an opportunity to snap up a major interest in a company it described as a “leading example of Australian ingenuity.”

Courtesy of the AFR, Tattarang’s chief investment officer John Hartman said: “Austal is a leading example of Australian ingenuity and Tattarang is pleased to join the Perth-based company’s register as a long-term investor.”

Time will tell if Twiggy has made the right call, but you’d be brave to bet against him.

The post Twiggy has been quietly buying up 8% of this ASX-listed company. Why? appeared first on The Motley Fool Australia.

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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 Austal Limited. 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 Piedmont Lithium Inc (ASX: PLL) share price is on the move on Wednesday.

In morning trade, the lithium developer’s shares are up 5% to 99.5 cents.

This means the Piedmont Lithium share price is now up 29% since the start of the year.

Why is the Piedmont Lithium share price charging higher?

Investors have been bidding the Piedmont Lithium share price higher today following the release of a positive announcement out of the lithium developer.

According to the release, the company’s partner, Atlantic Lithium, has announced the completion of a mineral resource estimate update for the Ewoyaa Project in Cape Coast, Ghana.

That update reveals that Atlantic Lithium’s new mineral resource estimate is a total of 30.1 million metric tonnes at 1.26% Li2O. This represents a sizeable 42% increase on its previous estimate.

This is good news for Piedmont Lithium, as it has the right to earn-in a 50% interest in Ewoyaa and all Atlantic Lithium’s Ghanaian projects. This is on top of the 10% equity interest that the company holds in the lithium explorer.

Management commentary

Piedmont Lithium’s chief operating officer, Patrick Brindle, was very pleased with the news. He said:

“We’re very pleased with the reported increase in mineral resources for the Ewoyaa Project, notably the increase in mineral resources in the indicated category.”

The Ewoyaa Project is one of the best located spodumene projects in Africa, and its development is fundamental to our growth strategy as an important source of spodumene concentrate for our LHP-2 Project. We look forward to Atlantic Lithium’s completion of a prefeasibility study for the Ewoyaa Project, which will both increase the level of engineering definition for the Project as well as provide important data needed to advance regulatory approvals for the Project.”

The post Why is the Piedmont Lithium (ASX:PLL) share price storming higher today? appeared first on The Motley Fool Australia.

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

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Bitcoin (CRYPTO: BTC) has headed upwards in a hurry this month, and it’s not done yet.

That’s according to DeVere Group chief executive Nigel Green, who cited how on Monday the cryptocurrency hit its highest level since 2 January.

“Bitcoin is up nearly 25% in the last 10 days, smashing through the US$35,000 to US$45,000 band where it has been lodged since January,” he said.

“It’s now edging nearer to the important US$50,000 level.”

As of Tuesday morning Australian time, Bitcoin traded at US$47,257.80 ($62,829.86).

FOMO is driving the latest bull run

According to Green, if Bitcoin can now smash through the psychological US$50,000 barrier, anything can happen as FOMO (fear of missing out) is triggered. 

“Should it… surge through this key price marker, we expect the current bull run would become supercharged as crypto FOMO would kick in – as it typically does when Bitcoin prices shoot up.”

This is because such a resurgence would again remind investors who are not in the game that crypto is the “future of money”.

“As such, prices are set to skyrocket over the long-term – and both institutional and retail investors will not want to miss out on the ‘early advantage’ edge,” Green said.

“Watching others make decent returns during a good rally may make you feel obligated to join in and get in on the gains.”

Even though Green has always been a crypto bull, he said that FOMO alone is not a good enough reason for investors to dive in.

“Even though the desire to get on the bandwagon can be strong, it is typically not a sound way to make investment decisions and is usually ill-advised.”

Professional investors are getting into Bitcoin

Green observed that the mainstream finance industry is finally recognising that digital currencies are inevitably the future.

“This is now becoming clear even to institutional investors — including credit unions, banks, large funds such as mutual or hedge funds, venture capital funds, insurance companies, and pension funds — as well as governments and multinational corporations.”

The “inherent value” of Bitcoin and similar currencies for instant borderless transfer of money simply can’t be ignored, he added.

The war in Ukraine has brought home such use-cases for a “decentralised, permissionless, censorship-resistant and unconfiscatable” way to move funds.

“The fundamentals of Bitcoin, the cryptocurrency’s intrinsic characteristics are, indeed, sound,” Green said.

“The world is racing towards a digital revolution and as investors increasingly pay attention to this, the long-term trajectory for Bitcoin, surely, has to be upward.”

The post Bitcoin is up 25% in 10 days. Here’s what it’ll do now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. 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 ASX 200 may be pushing higher, but the Fortescue Metals Group Limited (ASX: FMG) share price isn’t going anywhere in early trade.

At the time of writing, the mining giant’s shares are paused.

Why is the Fortescue share price paused?

The Fortescue share price has been paused this morning ahead of the release of an announcement.

A market release explains: “Trading in the securities of the entity will be temporarily paused pending a further announcement.”

What is the announcement?

It remains unclear whether the announcement will simply be a trading halt request ahead of the release of a further announcement tomorrow or will be related to its Fortescue Future Industries business.

In respect to the latter, according to the Financial Times, the business has signed a memorandum of understanding with German energy group E.ON aiming to build enough renewable energy capacity to power a country roughly the size of the UK.

In addition, the company has pledged to produce and export enough green hydrogen to Germany to replace about a third of the country’s gas imports from Russia.

However, this will require a huge investment. Fortescue’s chair, Andrew Forrest, advised that the plan would require a US$50 billion investment.

More to come.

The post Why is the Fortescue share price paused? appeared first on The Motley Fool Australia.

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

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