Category: Stock Market

The Neometals Ltd (ASX: NMT) share price soared today amid the company listing on the London Stock Exchange.

The company’s shares closed at $1.47 on the ASX today, a 9.7% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) gained 0.67% today.

Let’s take a look at what is happening at the company.

New London listing

The Neometals share price rocketed on Tuesday. This came after the company informed investors it has started trading on the Alternative Investment Market (AIM) of the London Stock Exchange. AIM is London’s market for small and medium growth companies.

The sustainable and advanced materials project developer will continue to trade on the ASX. The UK listing is aimed at taking advantage of “substantial” UK and European investor interest in Neometals. The share listing did not involve a capital raise.

Neometals Ltd (LON: NMT) is trading at 72.94 pence on the London Stock Exchange. The share price surged 4.2% on its first day of trading in the UK.

Neometals chief executive officer Chris Reed said the company is delighted to commence trading on AIM. He added.

With this listing, we look forward to broadening our shareholder base by offering a differentiated investment opportunity and provide UK and European investors with a way to gain exposure to projects at the heart of recycling and decarbonising supply chains associated with the electric vehicle and energy storage sectors.

With a number of our core projects moving towards final investment decisions during 2022, we have an exciting year, full of value transformative events ahead of us and we look forward to updating shareholders on progress in due course.

In late January, Neometals provided an update on the December quarter. The company ended the quarter with $72.8 million of cash and no debt.

Neometals share price

The Neometals share price has exploded 362% in the past year, while it is up 3% this year to date.

For perspective, the benchmark ASX 200 has returned about 4.52% over the past year. In the past month, Neometals shares have gained 12%, while in the past week they have jumped nearly 13%.

Neometals has a market capitalisation of about $806 million.

The post Neometals (ASX:NMT) share price surges 10% amid dual listing appeared first on The Motley Fool Australia.

More reading

• 3 excellent ETFs for ASX investors to look at in March
• Why did the CSL (ASX:CSL) share price go backwards in February?
• Here are the top 10 ASX shares today
• Why did the BHP (ASX:BHP) share price deliver such lacklustre gains in February?
• Why has the Lynas (ASX:LYC) share price rocketed 21% in a week?

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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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

Rather than deciding on which individual shares you should put your money into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, here are three ETFs that are popular with investors right now:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The first ETF to look at is the ETFS Battery Tech & Lithium ETF. It provides investors with exposure to providers of electrochemical storage technology and mining companies that produce metals used for the manufacturing of battery-grade lithium batteries. With the outlook for battery materials and lithium prices becoming increasingly positive due to growing demand and tight supply, the companies included in the fund appear well-placed for growth in the coming years. This includes AMG Advanced Metallurgical Group, Lockheed Martin, and Pilbara Minerals Ltd (ASX: PLS).

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF aims to provide investors with an easy way to invest in the type of shares that legendary investor Warren Buffett buys. These are companies with sustainable competitive advantages or moats. The ETF currently contains almost 50 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Altria, Boeing, Coca Cola, Kellogg Co, and Walt Disney.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to the biggest players in a global video game market estimated to comprise 2.7 billion active gamers. Among the companies included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck believes these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 excellent ETFs for ASX investors to look at in March 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 recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and VanEck Vectors Morningstar Wide Moat ETF. 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 CSL Limited (ASX: CSL) share price quietly walked into the green today and finished 0.43% higher at $261.10.

That might come as some relief to CSL shareholders who have seen gains achieved in late 2021 evaporate. CSL shares are now trading 10% in the red this year to date.

While the biggest fall came in January, February wasn’t much kinder to the CSL share price which continued to edge lower, falling around 0.5% in that time.

What happened to CSL last month?

CSL reported a mixed set of results at its earnings release in February. The global biotech recognised a slight increase in group revenue to almost US$6 billion, but looking closer, CSL Behring saw a 2% decrease.

It was profitability that suffered last half for CSL, however, as net profit after tax (NPAT) declined by 5% in constant currency terms to US$1.7 billion.

Not only that, new guidance now bakes in a US$90–$110 million transaction cost related to CSL’s recent purchase of Vifor Pharma, potentially hindering the outlook from investors.

Now the market has had time to digest the company’s results the CSL share price has faltered. It finds itself trading well below its February highs of $277 that it reached, funnily enough, the day following earnings.

However, the CSL share price has been heading south since November last year, around the time when rumours surfaced it was buying Vifor for $10 billion.

Plus, when scoping out the wider sector, it’s clear that ASX healthcare shares have taken a hit these past three months.

Overlying CSL’s price chart on the S&P/ASX 200 Health Care index (ASX: XHJ) reveals the two have moved in similar fashion over this time, as seen below.

Even as both CSL and the index attempted to rally in mid-February, the market saw otherwise and continued to send the pair back down south as of today.

Plus, with the wave of macro-economic crosscurrents feeding into global equity markets right now, it’s not surprising to see this kind of chart pattern across the board in Australian shares.

However, as a prudent investor, one should always keep a long-term horizon in mind and consider consulting a financial professional during these times to help make the most informed decisions possible.

CSL share price snapshot

In the last 12 months the CSL share price has fallen by 3%. It has tried to stage a comeback since collapsing in December but has been unable to break through the resistance level.

As such CSL shares are now trading at April 2021 levels which is also where the biotech was trading at in late 2019, right before the onset of the pandemic.

The post Why did the CSL (ASX:CSL) share price go backwards in February? appeared first on The Motley Fool Australia.

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• Here’s why CSL (ASX:CSL) could be an ASX 200 share to buy now
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. 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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Today, the S&P/ASX 200 Index (ASX: XJO) posted its third day in a row of gains as the Reserve Bank of Australia held rates on geopolitical uncertainty. At the end of the session, the benchmark index finished 0.67% higher at 7,096.5 points.

Modest falls in a few sectors were outweighed by exceptional returns across numerous segments of the market today. Notably, the Aussie tech sector absorbed plenty of capital as investors pushed it 5.7% higher. Only one tech company was unable to share in the optimism on Tuesday.

In contrast, the utilities sector was the worst-performing sector on the market. Part of the weakness could be attributable to Origin Energy Ltd (ASX: ORG) trading ex-dividend today.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Yancoal Australia Ltd (ASX: YAL) was the biggest gainer today. Shares in the coal-producing company rocketed 14.94% higher after the company posted record revenue and a reinstated dividend. Find out more about Yancoal Australia here.

The next biggest gaining ASX share today was Paladin Energy Ltd (ASX: PDN). The uranium mine owner put a 12.99% gain on the scoreboard during the session as the Ukraine-Russia conflict create energy supply concerns. Uncover the latest Paladin Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Yancoal Australia Ltd (ASX: YAL)	$4.00	14.94%
Paladin Energy Ltd (ASX: PDN)	$0.87	12.99%
Imugene Ltd (ASX: IMU)	$0.265	12.77%
Novonix Ltd (ASX: NVX)	$5.43	7.95%
IDP Education Ltd (ASX: IDP)	$28.31	7.81%
AVZ Minerals Ltd (ASX: AVZ)	$0.85	7.60%
Xero Ltd (ASX: XRO)	$100.32	7.03%
Allkem Ltd (ASX: AKE)	$9.70	6.95%
IGO Ltd (ASX: IGO)	$11.66	6.68%
Seek Ltd (ASX: SEK)	$28.31	6.15%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 shrugs off today’s RBA interest rate decision
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• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why IDP, IGO, Sayona Mining, and Yancoal shares are storming higher
• Fretting over ASX share market losses? Expert explains how to ’embrace uncertainty’

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Idp Education Pty Ltd and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended SEEK 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 BHP Group Ltd (ASX:BHP) share price ended the month of February 2022 at almost exactly the same level where it started the month.

BHP is one of the largest resource businesses in the world. Its market capitalisation can change quite a lot over a month, depending on what’s going on with the commodity prices and perhaps any wider economic or geopolitical goings-on.

What happened during February 2022?

There are a few different things that featured heavily last month.

The Russian invasion of Ukraine has captured a lot of the global attention, sending the oil price above US$100 per barrel. Whilst BHP’s oil division may be seeing a higher commodity price, it is going to be divested to Woodside Petroleum Limited (ASX: WPL) in the next few months.

However, on a more company-specific level, BHP reported its result for the six months to 31 December 2021.

It has also gone ex-dividend, meaning that new investors are no longer entitled to the US$1.50 per share interim dividend, reducing the short-term potential value of the shares to new investors.

Half-year result

For readers that didn’t catch the result, BHP reported a significant increase in profits thanks higher prices for all of its major commodities such as iron ore and copper.

The ASX resources share reported that attributable profit rose 144% to US$9.4 billion, whilst net operating cash flow rose 42% to US$13.3 billion.

Excluding the earnings from the petroleum assets, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 33% to US$18.5 billion, profit from operations rose 50% to US$14.8 billion, underlying attributable profit increased 57% to US$9.7 billion and net operating cash flow went up 26% to US$11.5 billion.

This large increase in profit and cash flow led to a 49% rise in the dividend to US$1.50 per share.

What does the future hold for the BHP share price?

It’s impossible to know what a share price is going to do. But BHP management are confident about the outlook. The company points to population growth, the infrastructure of decarbonisation and rising living standards as reasons that can to drive demand for energy, metals and fertilisers for decades to come.

Management said that it’s building on its strong foundations and capital discipline to reshape the business and grow long-term value for shareholders and other stakeholders.

It has unified the BHP corporate structure, which aims to make it easier to operate the company and carry out strategic moves.

The divestment of the petroleum business will mean the commodity portfolio is a bit ‘greener’, with plans to expand into potash with its Jensen stage one potash project in Canada. It is also progressing its divestments of certain coal assets.

What do analysts think about the BHP share price?

Plenty of analysts are a ‘neutral’ or ‘hold’ on the business

Macquarie still rates it as a buy, with a price target of $54 because of the fact that commodity prices remain strong which helps BHP.

The broker’s estimates put the BHP share price at around 10x FY22’s estimated earnings. BHP’s projected grossed-up dividend yield is almost 13% for this financial year.

The post Why did the BHP (ASX:BHP) share price deliver such lacklustre gains in February? appeared first on The Motley Fool Australia.

More reading

• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?
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• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Why Russia was not the only thing that dragged the BHP (ASX:BHP) share price lower today

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

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The Lynas Rare Earths Ltd (ASX: LYC) share price charging higher again today.

Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths explorer and producer finished the day trading up 4.01% at $10.64 per share.

That puts the Lynas share price up a phenomenal 21% since the closing bell last week Tuesday. For some context, the ASX 200 is down nearly 2% over that same time.

The past week’s gains give the company a market cap of $9.6 billion.

We’ll look at why Lynas had such a strong week in a tick. But trouncing the benchmark returns is nothing new for the company.

What’s been driving shares in the ASX 200 rare earths’ producer higher?

Lynas shares have performed strongly, though certainly not without some dips, since mid-2020.

Spurred on by Western nations seeking to break China’s strangle hold on the critical rare earths markets, the Lynas share price has rocketed 165% since 31 December 2020.

Speaking about Lynas to The Motley Fool’s Tony Yoo last week, Red Leaf Securities CEO John Athanasiou said:

It’s the only significant producer of rare earth materials outside of China. Rare earth materials are required for all sorts of things that we consume on a daily basis — from electric cars, mobile phones to superconductors. And the western world really wants a producer outside of China, so it enhances strategic importance.

That’s the bigger picture. But what drove the Lynas share price to a 23% gain over this past week?

Why did the Lynas share price surge 23% in 5 trading days?

A fair bit of the heavy lifting came last Friday.

This was the day the miner reported its half year financial results for the 6 months ending December, which saw both revenue and profits up strongly year-on-year.

Net profit after tax (NPAT) of $156.9 million leapt 286% from 1H FY21 figures. And revenue increased to $314.8 million, up from $202.5 million in the prior corresponding half year.

The Lynas share price closed up 8.1% on Friday, finishing the day at $10.15 per share.

The post Why has the Lynas (ASX:LYC) share price rocketed 21% in a week? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Lynas (ASX:LYC) share price jumps amid record interim net profit
• The ASX share that the whole world is relying on
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years
• What even are rare earths and why are ASX shares with exposure always in the spotlight?

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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Tuesday proved to be a good day to be an ASX energy share. The S&P/ASX 200 Energy Index (ASX: XEJ) outperformed the broader market, gaining 0.94% over today’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.67% higher while the All Ordinaries Index (ASX: XAO) gained 0.85%.

Perhaps unsurprisingly, energy commodity prices were also higher during Tuesday trading.

Right now, the West Texas Intermediate Oil April futures is up 0.87% to trade at US$96.56 per barrel, according to CNBC. Meanwhile, Brent crude May futures has gained 0.99% to reach US$98.94 a barrel.

According to reporting by Reuters, the price of oil is being bolstered by supply concerns, as some international oil giants plan to leave their Russian operations.

However, the black liquid’s value might be being capped by reports the United States and its allies are planning to release reserves to regulate supply.

Natural gas futures are also gaining, likely also helping boost some ASX energy stocks. Here are 3 ASX energy shares that reached long-forgotten highs on Tuesday.

These 3 ASX energy shares hit new 52-week highs today

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price busted through the ceiling to reach a new 12-month record high today.

It reached $29.48 at its highest point of the day ­– representing a 3.29% gain.

However, it slumped from its new high point before the market closed, ending the session at $28.68.

That’s still 0.49% higher than it was at the end of Monday’s trade.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price also hit a new 52-week high on Tuesday, gaining 6.2% at its highest point to trade at $2.70.

The diversified energy company also ended the day lower than its shiny new 12-month record. It closed 5.12% higher at $2.67.

Karoon Energy Ltd (ASX: KAR)

Finally, oil and gas explorer and producer Karoon Energy broke its 52-week high to reach $2.16 in Tuesday’s session. That represented a 5.88% gain at its intraday high.

Though, as of Tuesday’s close, it had slipped at $2.12 – still 3.92% higher than Monday’s closing price.

The post 3 ASX energy shares smashing 52-week highs today appeared first on The Motley Fool Australia.

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

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The Macquarie Group Ltd (ASX: MQG) share price closed higher on Tuesday, up 1.26% at $183.05.

However, it’s been a tumultuous start to the year for the banking giant’s shares which have lost almost 11% since trading began on January 4.

Last year it eclipsed the $200 per share mark – one of only several ASX players to do so.

Meanwhile, as a sector, Australian financials – indexed by the S&P/ASX 200 Financials index (XFJ) – have weathered the volatility of 2022 well. The index is up almost 7% this year and is now outpacing the broader S&P/ASX 200 Index (ASX: XJO), which has gained 4.5%.

Those seeking to wind back exposure to growth and regain safety in value-oriented stocks have sought haven in Australian bank shares this year.

Their decisions are backed by strong dividend and/or buyback regimes some of the banks are producing. Hence why it is surprising to see the globally-positioned Macquarie struggle so far.

Is Macquarie heading back to the auction block?

It is understood Macquarie may be eyeing up the wealth management arm of Westpac, apparently worth $1 billion.

According to reporting from The Australian, the investment bank could go head-to-head with American global investment giant Kohlberg Kravis Roberts (KKR) in a battle to secure Westpac’s BT Panorama platform.

KKR is an investment specialist that has presence in multiple alternative asset classes, such as private equity, energy, infrastructure, real estate, credit, and hedge funds.

Curiously, there’s a lengthy relationship between Macquarie and KKR dating back several years. During that time the pair has worked on deals both together and against each other.

KKR also boasts a 55% stake in Colonial First Estate via a joint ownership with Commonwealth Bank of Australia (ASX: CBA).

Reportedly, Westpac’s BT Panorama wealth management platform, which assists advisors with investment, self managed super fund (SMSF), and superannuation clients, is being valued at 17–18x EBITDA, and oversees north of $105 billion.

Macquarie on the other hand grew its assets under management (AUM) to $750 billion last year. This came after an impressive period of growth across all segments – particularly commodities.

As such, the investment bank is a hot contender to buy the platform. It could be a good fit seeing as Macquarie is itself a financial services company.

However, KKR has been a major frontrunner to acquire the unit. The company wrapped its tentacles around BT Panorama last year but the deal was put on hold until things settled with Colonial First Estate.

It remains to be seen what Macquarie’s next moves are and there have been no market-sensitive updates on the matter.

The speculation flows on from news out of Macquarie yesterday in which its CEO weighed in on the future of green hydrogen in Australia.

Macquarie share price snapshot

Over the past 12 months, the Macquarie share price has shot up by 26%. However, unlike many of its banking peers, it has receded almost 11% this year to date.

It has been trading sideways over the past month and is down 4% over the past week.

The post Is Macquarie (ASX:MQG) gearing up to ink its next big deal? appeared first on The Motley Fool Australia.

More reading

• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen
• 2 big-cap ASX shares that even this small-cap expert recommends
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• Why are ASX 200 bank shares getting so much love today?
• 3 of the best results on the ASX 200 last 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 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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The S&P/ASX 200 Index (ASX: XJO) initially climbed 0.1% following the Reserve Bank of Australia’s (RBA) cash rate call, released at 2:30 pm AEDT today.

The ASX 200, up 0.8% in afternoon trading, then gave back that small gain as investors appear to have priced in the RBA’s dovish call today.

For the next month, at least, the official cash rate in Australia remains at the historic low 0.10%. The interest rate on Exchange Settlement balances stays put at 0%.

What the RBA governor said

According to RBA governor Philip Lowe, the Aussie and global economies are both continuing to bounce back from the impacts of the pandemic.

But he cited Russia’s invasion of Ukraine as “a major new source of uncertainty“.

Lowe pointed to spiking energy prices, driven even higher following the invasion, and continuing supply chain disruptions as driving sharp increases in inflation in some nations. He noted that bond yields have been rising amid increased expectations of high rate policies ahead.

As for the Aussie economy, Lowe said, “The resilience of the economy is evident in the labour market, with the unemployment rate at a 14-year low of 4.2%. Underemployment is also around its lowest level since 2008.”

The bank forecasts unemployment will fall to below 4% later in 2022 and remain below 4% in 2023.

While Aussie wages are growing, Lowe said this is currently happening at around the same “relatively low rates” evident pre-pandemic. “A further [gradual] pick-up in wages growth and broader measures of labour costs is expected as the labour market tightens,” he added, citing uncertainty about labour costs at historically low levels of unemployment.

ASX 200 investors keeping a close eye on inflation

ASX 200 investors keep a close eye on inflation for a reason. If inflation runs hotter than the RBA’s target range of 2­–3%, rates are likely to rise, which could dampen share prices.

Lowe said that inflation has “picked up more quickly than the RBA had expected, but remains lower than in many other countries”.

The RBA’s central forecast sees underlying inflation increasing to 3.25% this year before dropping to 2.75% in 2023.

Consumer price index (CPI) inflation is expected to “spike higher than this due to the higher petrol prices resulting from global developments,” Lowe said. “How long it takes to resolve the disruptions to supply chains is an important source of uncertainty regarding the inflation outlook, as are developments in global energy markets.”

So when can we expect the RBA to raise rates?

That depends on who you ask.

According to Lowe:

The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3% target range. While inflation has picked up, it is too early to conclude that it is sustainably within the target range.

Some hawkish analysts, including economists at the Commonwealth Bank of Australia (ASX: CBA), are predicting the RBA will make its first hike in June. Others believe the RBA will hold off until at least November.

When the first rate hike announcement does come through, the ASX 200 reaction will be one to watch.

The post ASX 200 shrugs off today’s RBA interest rate decision appeared first on The Motley Fool Australia.

More reading

• The Soul Pattinson (ASX:SOL) share price has lost 17% so far this year. Is it a buy?
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Fretting over ASX share market losses? Expert explains how to ’embrace uncertainty’
• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• These were the best performing ASX 200 shares in February

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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As most investors would be aware, 2022 hasn’t given the S&P/ASX 200 Index (ASX: XJO) the easiest start to the year. Even after today’s rather healthy gain, the ASX 200 Index remains down around 6% over the year to date. But that loss looks relatively tame compared to that of the Washington H. Soul Pattinson and Co Ltd (ASX: SOL) share price.

Soul Patts shares have recorded a 1.47% gain so far this Tuesday and are currently going for $25.55 a share at the time of writing. But since New Year’s Day, the company has lost a meaty 17.2% from its share price. That’s a loss that’s close to triple that of the ASX 200.

It seems even its status as ASX dividend royalty isn’t enough to counter market underperformance for a couple of months. Soul Patts is an industrial conglomerate that functions more like a Listed Investment Company than your conventional ASX business these days. It owns vast swathes of a number of other ASX shares. These include TPG Telecom Ltd (ASX: TPG), Brickworks Ltd (ASX: BKW), and New Hope Corporation Limited (ASX: NHC), amongst others.

Soul Patts is often described as ASX dividend royalty due to its impressive streak of giving investors annual dividend pay rises. Unlike any other share on the ASX 200, Soul Patts has managed to raise its dividend every single year since 2000. That includes over the course of the pandemic thus far.

So is the Soul Patts share price a buy today?

With the company’s share price down by 17% so far this year, it’s also fallen more than 37% from its all-time high back in August last year.

So that might posit the question: Is the Soul Patts share price a buy today after these steep drops in value?

Well, as it happens, our own Chief Investment Officer Scott Phillips, reckons it just might be. Here’s some of what Scott said on a recent episode of AusBiz’s The Call:

I like Soul Patts a lot… The last time they put out some numbers, they’d beaten the market over 1, 3, 5, 10 and 15 years… So when you’re buying Soul Patts, you’re buying those listed investments… the share price is actually cheaper than the total value of those investments, so you’re getting those investments at a discount.

But you’re also getting the fourth generation of the family that has run the company for more than a hundred years. It’s a really high-quality business, it’s been run really really nicely… If you’re a long term investor, this is THE cornerstone position for your portfolio.

So there you have it.

At the current Soul Pattinson share price, this ASX 200 stalwart has a market capitalisation of $9.26 billion, with a dividend yield of 2.42%.

The post The Soul Pattinson (ASX:SOL) share price has lost 17% so far this year. Is it a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool 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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