Category: Stock Market

The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.26% in early trade.

CommBank closed yesterday at $99.74 and is currently trading at $99.48.

That puts the CBA share price up 6.5% since the closing bell on 28 February, handily outperforming the 1.1% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same period.

So, what’s driving the big bank’s outperformance?

$1.8 billion divestment kickstarts the month

The biggest news likely impacting the CBA share price came on the first of the month.

That’s when CommBank announced it had entered into a binding sale agreement to divest almost half its 10% shareholding in the Chinese Bank of Hangzhou Co Ltd.

CBA reported the deal to be worth some $1.8 million. The bank will retain approximately a 5.6% stake in the Bank of Hangzhou.

Atop the post-sale profit benefits, CommBank also said the sale should boost its capital buffer ratio (CET1) by 0.35% once the deal is finalised.

“The partial sale of our shareholding is consistent with our strategy to focus on our core banking business in Australia and New Zealand,” CBA CEO Matt Comyn said about the divestment.

The CBA share price also received some positive coverage in the first week of March from Bell Potter.

The broker’s analysts signalled a buy rating for CommBank with a $108 price target. That’s 8.5% higher than the current price.

As my Fool colleague James Mickleboro explained on the day, “The broker’s price target is based on a composite valuation of discounted cash flow, dividend yield, return on equity (ROE), and sum-of-the-parts (SOTP) weighted equally.”

Bell Potter also lifted its price target because of the bank’s estimated $5.53 billion in surplus capital.

CBA share price snapshot

Over the past year, CBA shares have gained 15%, compared to a gain of 6% posted by the ASX 200.

Year-to-date the CBA share price is down 2.7%.

The post Why has the CBA (ASX:CBA) share price climbed 7% so far this month? appeared first on The Motley Fool Australia.

More reading

• Own CBA (ASX:CBA) shares? Here’s why the bank’s boss is ‘very optimistic’ for 2022
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Record $36bn in dividends could help ASX share market recovery
• CBA (ASX:CBA) boss says this presents ‘a lot of opportunity’ for the bank
• ANZ has the largest ASX big four bank dividend yield right now. What?

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.

from The Motley Fool Australia https://ift.tt/0eCwuGX

The Zip Co Ltd (ASX: Z1P) share price is on course to end the week in a positive fashion.

In morning trade, the buy now pay later (BNPL) provider’s shares are up 2.5% to $1.75.

This follows the opening of the company’s share purchase plan on Friday.

Share purchase plan

This morning Zip revealed that its share purchase plan has now opened to eligible shareholders. To be eligible, you needed to be on the company register at the close of play on Friday, 25 February 2022.

Eligible shareholders now have the opportunity to subscribe for up to $30,000 worth of new Zip shares as part of its aim to raise $50 million.

However, whether demand will be there from shareholders is difficult to say. When Zip raised $148.7 million through a placement to institutional investors two weeks ago, it gave them a generous 14% discount.

Retail shareholders look likely to get a discount of just 2% unless there is a big recovery in the Zip share price in the coming weeks.

This is because the share purchase plan will see shares issued at the lesser of the placement price of $1.90 per new share or a 2% discount to the volume weighted average price of Zip’s shares during the five trading days up to and including Friday, 1 April 2022, rounded to the nearest cent.

With the Zip share price currently fetching $1.75, it seems more than likely that it will be the second option that dictates the price of the share purchase plan.

Why is Zip raising funds?

The proceeds raised under the placement and share purchase plan will be used to help Zip strengthen its balance sheet and position the company for sustainable growth.

This is by providing more capital runway to execute on the potential synergies from its proposed $491 million all-scrip acquisition of Sezzle Inc (ASX: SZL).

The post The Zip (ASX:Z1P) share purchase plan opens today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Is the Zip (ASX:Z1P) share price heading on a one-way street to $1?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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 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.

from The Motley Fool Australia https://ift.tt/9EZj8KM

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.

The world of cryptocurrency and blockchain has been the center of a great deal of controversy for some time now: Should it be regulated? How can it be regulated? All these questions have been tossed around without any solid answers from the U.S. government.

Some crypto investors have feared that it’ll be regulated into nothingness, so when President Biden announced he would be presenting an executive order regarding crypto, some investors were left holding their breath, including the owners of metaverse real estate and other items secured by non-fungible tokens (NFTs).

But instead of fear and contention, the executive order unveiled on March 9, 2022, seems promising and has many experts in the crypto world breathing a sigh of relief. Here are some pieces of good news coming out of this big day.

1. Crypto and related assets will finally have a uniform set of rules

Currently, much of the regulation of crypto and other assets like NFTs is done through enforcement by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Unfortunately, having too many cooks in the kitchen is always a huge mess, even if you’re talking about an investment tool.

This executive order mandates that everyone get together and figure out how to be on the same page about blockchain-based investments and how best to regulate them. This brain trust includes the parties you’d expect, including representatives from the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency, as well as other important folks like the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the attorney general, and many more.

It may not sound like a big deal, but it’s actually critical that rules related to the cryptocurrencies you’re using to buy your metaverse properties are uniform across the entire government. It’ll help project the value of your investments by creating consistency in enforcement when there’s trouble, as well as consumer confidence and legitimacy from the simple act of being regulated.

2. The government seems willing to work with the crypto community

Not only is the US government interested in exploring Central Bank Digital Currencies (CBDCs), which are basically a digital form of the dollar, it’s looking for guidance from crypto community experts. This legislation will not have an overnight solution, and all agencies involved have been asked to conduct thorough research and submit well-considered reports on all sorts of crypto-related issues. 

Inevitably, this is going to mean coming into contact with and listening to the people who are currently involved with NFTs and cryptocurrencies. These are the experts who have the data that will be necessary to formulate a plan of action. Working on problems from within the government is always going to be the easier route for crypto enthusiasts, including owners of metaverse real estate.

The issue of the digital dollar is an interesting one and one that could potentially make purchasing land in the metaverse easier and more attractive to average people looking to take their first steps into metaverse investing. If a CBDC dollar is issued in a way that can easily interact with current crypto markets, exchanging digital dollars for MANA or SAND on the fly would eliminate a lot of barriers to purchase for a lot of potential metaverse investors.

Reducing the steps that are involved in getting into the world of crypto for a first-time investor, such as removing the need to convert fiat dollars into cryptocurrency in order to fund a digital wallet for metaverse buys, may make the entire metaverse a lot less intimidating.

Crypto and metaverse legislation isn’t set in stone – yet

Although this first step was a doozy, the executive order issued by President Biden primarily focuses on how to begin to approach regulations that should surround cryptocurrencies and other blockchain assets. It’s a big deal simply because it finally exists, after years of politicians simply kicking the rock down the road.

For holders of digital assets, changes are almost certainly coming, but they should be neither swift nor opaque, given the approach that’s being taken at the moment. Having experts from within the crypto community help with research will help protect the interests of investors while the very laws that will finally give crypto assets wider real-world integrity are being crafted.

I suspect that once people feel more secure about purchasing metaverse land backed by NFTs, since there will be laws and regulations in place to protect from the worst actors, they’ll become an even more important part of the crypto asset pool.

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

The post 2 pieces of good news about Biden’s crypto mandate for metaverse investors appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Warning: Only 4 ASX shares just added to ASX 300 are profitable

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.

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

from The Motley Fool Australia https://ift.tt/vogdYu7

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?

Investors have punished the stock of Rivian Automotive (NASDAQ: RIVN) this year, sending its shares down by more than 60%. The negative sentiment was still in evidence Thursday ahead of its fourth-quarter and full-year report, which is due out after the closing bell. Shares of the electric vehicle start-up were down almost 10% in early trading, and remained lower by 9% as of 1:12 p.m. ET.

So what?

In this next report to investors, the company will be forced to confront early missteps such as a lack of communication regarding the departure of its chief operating officer, its failure to hit internal production estimates for 2021, and a recent price increase it was forced to walk back. But investors will be more interested in what Rivian says about its prospects for ramping up its production volume, updated reservation data, and its plans for expansion. They will be particularly interested to hear about the status of its contract to sell up to 100,000 commercial delivery vans to Amazon.com Inc (NASDAQ: AMZN). 

Now what?

Supply chain problems are being reported by most automakers — large legacy names as well as start-up EV makers. Rivian has already made it clear that its materials costs are increasing. And after having to backtrack on its announced price increase for existing reservation holders, the company will now have to bear those added costs itself. Investors will want to hear more details about those higher expenses and how they will affect margins. 

While its 60% year-to-date share price decline may seem to create a tempting entry point, investors should keep in mind that the company still carries a lofty market cap of $36 billion. 

Any downward adjustments to its 2022 production estimates or suggestions that its path to profitability will take longer than previously forecast will likely knock the stock down even further. Those details are what investors should focus on in Rivian’s report when it arrives. 

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

The post Why Rivian tanked ahead of earnings after the bell appeared first on The Motley Fool Australia.

More reading

• 3 stocks that could be worth more than Apple by 2035
• Why Rivian stock keeps going down
• Yet another billionaire buys Rivian stock: Should you too?

Howard Smith owns Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon. 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.

from The Motley Fool Australia https://ift.tt/ApuaXvd

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? 

The value of major cryptocurrencies fell on Thursday as the stock market dropped and investors worried about inflation and the continuing Russian invasion of Ukraine. This follows a day when prices shot higher after President Joe Biden signed an executive order to study digital assets and investors hoped US regulators would finally define rules for cryptocurrencies. 

As of 1pm ET, Bitcoin (CRYPTO: BTC) had fallen as much as 8% in the previous 24 hours, Ethereum (CRYPTO: ETH) was off as much as 6.3%, and Dogecoin (CRYPTO: DOGE) was down 7.4%. 

So what? 

Multiple headwinds have hit the crypto market today. The most notable was a report from the Labor Department that said inflation hit 7.9% annually in January, the highest rate in 40 years. High inflation could mean that the Federal Reserve will be more eager to increase interest rates in an effort to cool off the economy, which could mean lower asset values. Cryptocurrencies generally trade with risky assets, so that’s why they’re off sharply in trading today. 

Inflation is also being driven by an increase in commodity prices like oil, partly as a result of bans on Russian oil imports around the world. High commodity prices can pull spending away from other parts of the economy, leading to a recession. So, investors are trying to balance the risk of a commodity-driven recession and the need for higher interest rates to control inflation. 

As an asset class that’s been correlated with the stock market for the last six months, it’s no surprise that cryptocurrency values are dropping along with the market on today’s uncertainty. 

Now what?

Volatility continues to be commonplace for cryptocurrency investors and that’s actually undermined some of the cases for cryptocurrency. Bitcoin specifically has proven not to be a very good hedge for inflation (see today’s reaction) or a safe-haven asset like gold. In fact, it’s traded more like a growth stock than anything else in the last year. 

I still think the case for cryptocurrencies is the utility they can bring to markets. Financial transactions can happen in an instant, digital assets can be traded and verified on the blockchain, and more innovations will be built over time. That’s where the true value will come from and frankly doesn’t have much to do with the price of cryptocurrencies day to day. 

As much as today’s move hurts, I think the executive order from the White House yesterday is far more consequential. It could pave a path to more digital asset ownership, cross-border transactions, and even the U.S. government creating its own digital currency. That’s very bullish for the industry long-term, which is why I’m holding cryptocurrencies and don’t plan on selling even on down days like this. 

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

The post Why Bitcoin, Ethereum, and Dogecoin dropped today appeared first on The Motley Fool Australia.

More reading

• Fancy getting your paycheque in crypto? You’re not alone
• The Bitcoin price is rocketing 8% today. What’s going on?
• Will soaring commodity prices hold back the Bitcoin price in 2022?
• 52% of Aussies will never put money in this investment
• How might Visa and Mastercard’s Russia ban impact the Bitcoin price?

Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and 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.

from The Motley Fool Australia https://ift.tt/IsHCwzf

The Westpac Banking Corp (ASX: WBC) share price could be close to being fully valued.

That’s the view of the team at Bell Potter, based on a note released this morning.

What did the broker say about the Westpac share price?

According to the note, the broker has retained its hold rating and $24.00 price target on the bank’s shares.

Based on the current Westpac share price of $22.65, this implies modest potential upside of 5.9% for investors over the next 12 months.

This isn’t deemed enough of a potential return to warrant a rating any better than a hold.

Why isn’t Bell Potter more positive?

The note reveals that Bell Potter has been looking over Westpac’s bold cost cutting plans and has doubts that it will achieve its targets.

In case you’re not familiar with the bank’s plans, Westpac is aiming to reduce its cost base down to $8 billion by 2024. If it achieves this, it will be a big boost to its earnings growth in the coming years. However, Bell Potter has been crunching the numbers and doesn’t think this target is achievable. It explained:

“Back in FY21, total costs were $5.24bn in the first half and $5.70bn in the second half. The cost increase in the second half is 9%, made up as follows: 1) +$138m BAU including lower leave utilisation from COVID-19 restrictions; 2) +$131m investment; 3) +$140m investment mainly in financial crime capabilities and systems, product governance, data and regulatory capital charges; and 4) +$55m mortgage related volumes and COVID-19 support.”

“BAU is business as usual, so there is no need to factor this one out. The same can be said for structural productivity (i.e. efficiencies, thus the negative numbers), investment (we take this to mean activity to overcome erosion or similar in premises and equipment) and the usual risk and compliance. We have however excluded COVID-19 and similar items, being one-offs in a way. While the main increase is only -$10m in 1H20/2H20, it now jumps to +$409m in the next year.”

“In summary, this amounts to roughly $4.99bn on average (with a low of $4.60bn and a high of $5.65bn) or $9.98bn for the full year and compares with the $8.00bn cost expectation in FY24e. Even with a $4.50bn low or $9.00bn for the full year, there is still a sizeable gap of $1.00bn. In terms of costs as a % of average assets, we will assume a low of say 0.50% even with a denominator of $900bn. This works out to be $4.50bn again for the costs or $9.00bn for the full year, thus a gap of $1.00bn as well.”

All in all, it appears to feel that investors that believe the Westpac share price is dirt cheap right now because of its cost reduction plans, may want to think again.

The post Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Broker names 2 high yield ASX dividend shares to buy right now
• 3 blue chip ASX 200 shares analysts are tipping as buys
• ANZ has the largest ASX big four bank dividend yield right now. What?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/OAgdwUf

The Yancoal Australia Ltd (ASX: YAL) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO).

Just this week, the energy producer’s shares accelerated to a multi-year high thanks to record high prices for coal.

With the war between Russia and Ukraine closing in on its third week, commodity prices have soared.

At yesterday’s market close, Yancoal shares finished 1.20% higher to $5.05 apiece.

Why are investors paying attention to Yancoal shares?

It appears investors are buying up Yancoal shares to get in on the commodity boom, as well as trading ex-dividend next week.

Investors need to buy Yancoal shares before market close on Monday to be eligible for the final dividend. The ex-dividend date is on Tuesday 15 March.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can Yancoal shareholders expect payment?

For those who are eligible for the Yancoal dividend, shareholders will receive a payment of 70.4 cents per share on 29 April. This comprises the 2021 final dividend of 50 cents per share and a special dividend of 20.4 cents per share.

Both dividends are unfranked which means shareholders will miss out on any imputed tax credits from this.

Management noted that the special dividend is a direct result of Yancoal benefiting from record coal prices in 2021.

The $930 million final dividend represents a payout ratio of 118% of profit after tax.

Yancoal share price snapshot

Since the beginning of 2022, the Yancoal share price has almost doubled in value.

When looking at the last 12 months, its shares have further accelerated, up around 115%.

Yancoal shares touched a multi-year high of $5.30 on Monday 7 March off the back of rising coal prices.

Yancoal commands a market capitalisation of roughly $6.69 billion with roughly 1.32 billion shares on its books.

The post Want to secure this monster ASX coal share dividend? Here’s what you need to do next week appeared first on The Motley Fool Australia.

More reading

• Why the Ukraine crisis is shining the spotlight on ASX coal shares
• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Aussie coal is in hot demand, and these ASX coal shares are booming
• Here are the top 10 ASX shares today

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.

from The Motley Fool Australia https://ift.tt/DsyLCwN

One of the hottest areas of the market over the last 18 months has been the lithium sector.

But given the strong gains that have been generated over this time, investors may be wondering whether it is too late to invest in lithium shares.

The good news is that it doesn’t appear to be, based on what analysts are saying about the shares listed below.

Here are three buy-rated lithium stocks:

Allkem Ltd (ASX: AKE)

The first lithium share to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada. The team at Morgans is very positive on Allkem and recently named the company as its top pick in the sector. The broker expects electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification. Morgans has an add rating and $14.83 price target on its shares.

Lake Resources N.L. (ASX: LKE)

Another ASX lithium share that is rated as a buy is Lake Resources. It is developing the Kachi lithium brine project in north-western Argentina. This is a huge project which is aiming to deliver base case production of 50,000 tonnes of lithium carbonate once operational. But it doesn’t stop there. Including its Olaroz and Paso projects, management is targeting annual production of 100,000 tonnes of high purity lithium by 2030. Bell Potter is a fan of the company and has a speculative buy rating and $1.82 price target on its shares.

Liontown Resources Limited (ASX: LTR)

A final ASX lithium stock to consider is Liontown. It is the company behind the Kathleen Valley Lithium Project in Western Australia. This project will be producing 500,000 tonnes per annum of spodumene when it commences in 2024. Pleasingly, it has already signed deals with LG Energy Solution and Tesla for over half of this offtake. This appears to have gone down well with Bell Potter, which has put a speculative buy rating and $3.06 price target on its shares.

The post 3 ASX lithium stocks that brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX growth shares analysts believe have huge upside potential
• What’s the difference between lithium hydroxide and spodumene and which ASX shares are involved with each one?
• Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher
• Get ready! The ASX shares set for a decade-long tailwind: expert
• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns Allkem 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.

from The Motley Fool Australia https://ift.tt/7gNa0sw

The Reserve Bank of Australia (RBA) deputy governor, Guy Debelle, has resigned from his position and is going to work for Fortescue Metals Group Limited (ASX: FMG) instead.

But he’s not about to start working at a mine.

Dr Debelle is taking up the position as the new chief financial officer (CFO) of Fortescue Future Industries (FFI).

What’s Fortescue Future Industries?

Fortescue was set up to be a major iron mining business. It’s now one of the biggest in Australia and the world. help

However, the company is now pivoting.

In December it officially announced that it was transitioning from a pure-play iron ore and future-facing metals exploration group, to a vertically integrated green energy and resources group.

Its focus is a major green, fully renewable hydrogen initiative. It boasts of having the largest portfolio of green hydrogen, green ammonia, green iron ore and other green product developments, in the world.

FFI is also working on the decarbonisation of Fortescue through the development of a green fleet and the supply of green energy.

One of the latest moves by Fortescue has been to acquire Williams Advanced Engineering (WAE) for US$221 million. This will provide technology and expertise in high-performance battery systems and helping Fortescue’s operational efficiency, lower maintenance costs and accelerate the decarbonisation of its mining operations.

The WAE deal will also establish a “significant new global battery growth business opportunity for Fortescue”.

So how does Dr Debelle fit into this?

Fortescue Chair Andrew Forrest said in an announcement:

Bringing in someone of Dr Debelle’s economic credibility goes to the heart of our vision for FFI. Not only are we committed to arresting climate change, we are also committed to creating economic growth, increasing jobs and growing our business profitability.

Dr Debelle, with the leadership team, will drive the most optimal financial solutions for FFI’s vast technology and energy portfolio. This will be instrumental in Fortescue’s journey to become the best green hydrogen, energy, and resources company in the world.

We will prove that going green has a profitable future for companies the world over. We will demonstrate this so that other heavy emitters, like us, will follow our efforts and go green too. Further, we will produce the green energy and ammonia to enable them to do it.

Dr Debelle was touted as a lead candidate to be the next boss of the RBA, but he and his family are reportedly passionate about climate change.

Dr Debelle comments

In a statement on the RBA website, Dr Debelle said:

I am honoured and privileged to have worked at the Bank for the past 25 years and contributed to improving the welfare of the Australian people. The Bank is a great institution which serves Australia well, including most recently through the policy response to COVID which has helped the country come through the crisis in a strong position. I have often spoken about the opportunities for business to help address climate change. This new position gives me the opportunity to make a significant contribution in this area.

Fortescue share price snapshot

Over the last month, the Fortescue share price has fallen around 20%. In the 2022 calendar year to date it has declined over 8%.

The post Own Fortescue (ASX:FMG) shares? Here’s why the miner has just hired the RBA’s deputy governor appeared first on The Motley Fool Australia.

More reading

• Is the Fortescue (ASX:FMG) share price a buy right now?
• Record $36bn in dividends could help ASX share market recovery
• Will the Fortescue (ASX:FMG) share price fly as it links up with Airbus?
• 15% yield! But are these ASX high-yield shares dividend traps?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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.

from The Motley Fool Australia https://ift.tt/dJVN2BI

With all the crazy events going on around the world, many ASX shares have been hammered this year regardless of how the underlying business is going.

And that’s exactly the disappointment Cyan portfolio manager Dean fergie relayed to his clients in a memo this week.

“Market sentiment, in the short-term, is a powerful force and the recent inflation fears (and associated rate rises), exacerbated by the invasion of Ukraine and the uncertainty and concerns around energy prices and the potential economic impact, has created almost the perfect storm for many of the fund’s holdings.”

However, Fergie told his clients that short-term shocks like this still doesn’t shake his longer-term faith in the stocks that he’s backed.

“In times of turmoil, it is valuable to focus on the underlying operational performance of our investments, particularly when the disconnect between the share prices and business performances has been stark,” he said.

“We remain particularly positive given the optimistic results recently released.”

Fergie examined 3 ASX shares that plunged in February despite the company performance still remaining strong:

Drink away the world’s woes

Shares for craft drink provider Mighty Craft Ltd (ASX: MCL) fell a hair-raising 18% over last month.

Fergie noted that this freefall happened at the same time as it reported spectacular numbers.

The first-half saw revenue of $30 million, which is up 132%, and a “wildly successful launch” of its Better Beer brand.

“With the economy reopening and increased scale of the business post its acquisition of The Adelaide Hills Group, the company moved into profitability in the last quarter of the calendar year — a milestone that looked a pipedream only a few months ago.”

According to Fergie, that was not just a fluke half and the outlook remains strong.

“We continue to back management to deliver on their aggressive growth ambitions which include posting revenues in excess of $70 million for FY22,” he said.

“Despite these important financial milestones being achieved, the share price did not, in the short-term, reflect the company’s underlying achievements.”

Mighty Craft shares closed Thursday at 30 cents, which is almost 30% down from the start of February.

Wealth managers in the firing line

Fergie has publicly backed micro-investment platform Raiz Invest Ltd (ASX: RZI) for a while now.

Similar to Mighty Craft, the company reported excellent numbers in February but the share price sunk like a stone.

“Investment platform business Raiz delivered strong growth metrics period-on-period, including active customer growth of 73% to 595,000, funds under management growth of 71% to $1 billion and group revenue growth of 77% to $9.3 million (the vast majority of which is recurring),” said Fergie.

“Again, this was not reflected in share price movement with the stock falling 17% in February.”

He suspected general market sentiment went against listed fund managers, with huge selloffs seen in sector stalwarts Magellan Financial Group Ltd (ASX: MFG) and Pinnacle Investment Management Group Ltd (ASX: PNI).

Raiz shares closed Thursday at $1.14.

The software maker that set a new company record 

Healthcare software provider Alcidion Group Ltd (ASX: ALC) reported “solid” half-year results, according to Fergie.

But guess what, its share price plunged 17% in February.

Fergie noted the contracted revenue of more than $27 million was a company record, despite COVID-19 delaying purchasing decisions in UK hospitals.

“As such we expect some material short-term catalysts by way of new contracts out of the region,” he said.

“Alcidion is building a very strong position in the healthcare industry which is expected to rapidly expand as the digitisation of the healthcare industry accelerates.”

The Alcidion share price finished Thursday at 18 cents.

Deals galore in February, but share price didn’t match the news

Fergie has also been a longtime fan of games developer Playside Studios Ltd (ASX: PLY), which saw its shares lose 9% in February.

Again, Fergie is consoled by an excellent half-year report.

“This Australian-based game developer delivered a great interim result which clearly illustrated its strong growth and a healthy outlook,” he said.

“Revenue grew 61% half-on-half to $9.4 million.” 

In the same month, Playside revealed it booked $8.4 million in revenue in just one week after it launched Beans NFT.

“Further good news was released when Playside signed a material work-for-hire contract with Activision Blizzard Inc (NASDAQ: ATVI), one of the world’s most successful interactive entertainment companies and maker of iconic games such as Call of Duty, Overwatch, Guitar Hero and Candy Crush.”

The share price movement in February confounded Fergie.

“Through the month the share price of PLY rallied from $1.02 to $1.40 before, disappointingly, ending the month at $0.93 — a head-scratching outcome given the materially good news.”

Playside shares closed Thursday at 94 cents.

The post 4 fallen ASX shares that are still awesome businesses: expert appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares tipped for big things by analysts
• 2 small cap ASX shares that are highly rated by brokers
• 3 growing small cap ASX shares going places
• Playside (ASX:PLY) share price launches 6% on surging half-year revenue

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Activision Blizzard, Alcidion Group Ltd, and PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Activision Blizzard and Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/jIzKcE8