Category: Stock Market

The CSR Limited (ASX: CSR) share price is slipping in late morning trade, down 0.35% at the time of writing. This comes after shooting 1.2% higher on opening.

CSR shares are currently trading for $5.68.

Below we take a look at the building product supplier’s property sale update.

What property sale was announced?

In this morning’s ASX release, CSR reported the sale of 4.6 hectares of land on the outer edge of its 200-hectare site at Badgerys Creek, NSW. The total proceeds are $20.7 million, which works out to be $450 per square metre for the asset.

The company’s Badgerys Creek property borders the new Western Sydney Airport, which is due to open in 2026.

CSR said it is currently rehabilitating the former quarries at the location, which was confirmed for industrial zoning in September. The company won’t have to do any more work on the 4.6 hectares it is selling.

CSR CEO Julie Coates commented on the sale:

CSR’s Badgerys Creek site is one of the largest properties adjacent to the new Western Sydney Airport which will bring significant growth to the region.

The company’s chief financial officer, David Fallu added:

With approximately 140 hectares of developable land at Badgerys Creek, we are continuing to invest in the extensive rehabilitation and reconstruction of the former quarries at Badgerys Creek, which will be continuing over the next few years.

CSR expects to complete the transaction within its current financial year, which ends on 31 March. The sale will see earnings before interest and taxes (EBIT) for the financial year come in at approximately $46 million. That’s up from the company’s prior EBIT estimate for the year of $34 million.

CSR share price snapshot

Over the past 12 months, the CSR share price is up 1.4%, trailing the 5.6% gain posted by the S&P/ASX 200 Index (ASX: XJO).

So far in 2022, CSR shares are down 5%.

The post Here’s what is moving the CSR (ASX:CSR) share price today appeared first on The Motley Fool Australia.

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• Why the CSR (ASX:CSR) share price is on this broker’s top 2022 buy list
• ASX 200 (ASX:XJO) midday update: Wesfarmers’ update, energy shares rise

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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Australia – and, perhaps as an extension, the ASX – could set to be a major player in the global hydrogen industry.

Goldman Sachs predicts our island home could tap in as a key exporter of the commodity.

Additionally, it expects the hydrogen market could be worth more than US$1 trillion ($1.4 trillion) by 2050.

Let’s take a look at what might be in store for Australia’s – and the ASX’s – future in the green hydrogen space.

Could Australia host a prime spot in a $1.4 trillion industry?

According to analysts by Goldman Sachs, Australia could be up against regions including the Middle East, North Africa, and Latin America in the race to supply hydrogen to potential major importers in Central Europe, Japan, Korea, and East China.

And we’re going about it differently than other regions.

Australia’s hydrogen strategy focuses on its ambition of becoming a global hydrogen hub – using its natural gas and access to low-cost renewable power to produce the energy commodity.

Australia’s hydrogen industry is expected to ramp up from 2025, alongside that of Latin America, Europe, and Africa.

However, Australia and Europe have the lead in planned electrolyser capacity additions. They also offer the most funding for green hydrogen projects, such as those in the sights of many ASX shares.

Australia’s National Hydrogen Strategy aims to place the nation as a key hydrogen exporter by 2030.  

Looking to the future of the global industry, Goldman Sachs predicts up to 30% of hydrogen could be exported across borders – creating a new major international trade. For context, that’s more than the amount of natural gas currently traded between nations.

It also believes the average size of hydrogen projects could increase more than 100 times over by 2025, while the cost of electrolysers needed to produce the energy commodity could drop 40%.

Making the case more exciting, the price of hydrogen could be par with that of diesel in long-haul heavy road transport by as early as 2027.

So, which ASX shares have the potential to be involved in the upcoming export commodity? Let’s take a look.

What ASX shares are involved in hydrogen?

There are plenty of ASX shares already on the hydrogen bandwagon.

Of course, the most notable is Fortescue Metals Group Limited (ASX: FMG) and its green energy leg, Fortescue Future Industries (FFI).

It’s creating a major electrolyser manufacturing facility in Queensland, as well as engaging in green hydrogen production and hydrogen-fuelled transport initiatives.

Meanwhile, Hazer Group Ltd (ASX: HZR) is working to create hydrogen and synthetic graphite using its HAZER Process.  

Province Resources Ltd (ASX: PRL) is one step ahead with its HyEnergy Project, creating green hydrogen in Western Australia.

Speaking of the HyEnergy Project, Global Energy Ventures Ltd (ASX: GEV) recently began a feasibility study looking at transporting hydrogen from the project to key markets in Asia using its propriety compressed hydrogen ship.

Other ASX shares involved in hydrogen include Pure Hydrogen Corporation CDI (ASX: PH2) and Sparc Technologies Ltd (ASX: SPN).

The post Can Australia win the $1.4 trillion global hydrogen race? 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 Centuria Capital Group (ASX: CNI) share price is slipping in morning trade on Wednesday. This follows the release of the property funds manager’s half-year results.

In early morning trade, shares in the group are fetching $3.03 apiece, down 0.66% from their previous close.

Centuria share price scores with impressive half-year earnings

• Group total operating revenue up 26% to $139.4 million
• Operating profit after tax up 73% to $58.7 million
• Statutory earnings per share (EPS) of 13.8 cents per security, up 84%
• Reaffirmed FY22 distribution guidance of 11 cents per security
• Cash and undrawn debt finished at $241 million
• Net asset value of $2, up from $1.92 in the prior corresponding period
• Distribution of 5.5 cents per stapled security (cps) for the half, compared to 4.5 cps in HY21

What happened during the half?

It was an extremely busy six-month period for the real estate funds manager. During HY22, the group undertook multiple property acquisitions. As a result, Centuria’s real estate funds management platform increased 17% to $19.3 billion.

Additionally, unlisted and listed assets under management (AUM) organically grew by 15% and 22% respectively. This took the total value of these assets to $12.6 billion and $6.7 billion. Centuria fuelled this solid growth by acquiring $2.5 billion worth of real estate during the half, including:

• $63 million for a commercial office building at 21-25 Nile Street, Port Adelaide
• $83 million for a commercial office building at 25 Grenfell Street, Adelaide
• $88 million for prime agriculture real estate at 264 and 318 Copelands Road, Warragul
• NZ$291 million in aged care real estate across Australia and New Zealand

In particular, the Centuria share price rallied in response to the expansive asset acquisitions across the healthcare sector in December. In total, 38 aged care assets in New Zealand were purchased — all of which are operated by Heritage Lifecare.

What did management say?

Centuria Capital Group joint CEO Jason Huljich commented:

HY22’s performance is a clear example of utilising our in-house management expertise across Australasia and servicing our expanded investor distribution network to execute on several funds management initiatives. Centuria’s growth for the half has delivered more than the AUM of the entire Group’s platform around 5 years ago. Our strategies for each of our real estate verticals complement our specialist approach to actively managing our real estate funds.

Meanwhile, Centuria’s other joint CEO, John McBain, said:

It has been particularly pleasing to witness the consolidation of revenue streams from recently acquired business units in combination with a very strong contribution from organic property fund acquisitions, both listed and unlisted. Centuria’s unlisted retail investors have continued to invest strongly and we have been active in placing new assets with our institutional mandate partners, making HY22 a very successful period.

What’s next?

On the topic of future outlook, both joint CEO’s reflected a drive to continue consolidating Centuria’s leading position. To do this, the group plans to take advantage of its “significant deal flow”. This may include the group’s off-market opportunities and its active development pipeline.

In addition, Centuria noted an expectation to pull multiple growth levers on its real estate funds management platform. This will play an important role in generating future performance fees growth for the group.

Centuria share price snapshot

Lastly, it has been a challenging start to the year for the Centuria share price. So far in 2022, shares are down 13.4%, despite the group upgrading its earnings guidance in January.

Fortunately, on a one-year timeline, ASX-listed Centuria remains 22.2% ahead. Given the recent dent in the valuation, Centuria is now boasting a dividend yield of 3.6%.

The post Slam dunk: Centuria (ASX:CNI) share price slips amid growth-filled half-year appeared first on The Motley Fool Australia.

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• Cha-ching! Temple & Webster (ASX:TPW) share price soars 12% on record half revenues
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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. 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 BWP Trust (ASX: BWP) share price is down 1.5% at time of writing after opening up 1.9% this morning.

BWP Trust shares closed yesterday at $4.01 and are currently trading at $3.95 per share.

Below we take a look at the highlights from the real estate investment trust’s (REIT) financial results for the half-year ending 31 December 2021.

BWP Trust share price falls with flat dividend outlook

• Revenue from ordinary activities of $75.9 million, equivalent to the corresponding half year
• Profit before gains on investment properties of $56.5 million, down 1% from the prior corresponding half year
• Profit from ordinary activities attributable to shareholders increased 142% year-on-year to $348.3 million
• Dividend of 9.02 cents per share, unfranked, equivalent to the corresponding half year

What else happened during the half year?

The big variance profit before gains on investment properties and profits attributable to shareholders stems from the $291.8 million gains in fair value of investment properties for the REIT during the half year.

That also saw net tangible assets per share increase 17% to $3.75 per share, up from $3.20 per share in the half year ending 31 December 2020.

The interim dividend was paid on 30 December 2021 and the Distribution Reinvestment Plan (DRP) was in effect during this time. Management expects the DRP to remain in place.

BWP Trust also reported like-for-like rental growth of 2.2% for the full 2021 calendar year. And the weighted average lease expiry (WALE) stood at 4.3 years as at 31 December, with 97.6% of assets leased.

The REIT’s gearing as at 31 December was 15.5%, measuring its debt to total assets. The portfolio is valued at $2.9 billion.

What did management say?

Commenting on the revaluation of the portfolio, management wrote:

During the half-year, the Trust’s entire investment property portfolio was revalued. Property revaluations were performed by independent valuers for 10 properties during the period. The remaining 63 properties were subject to directors’ valuations…

The value of the Trust’s portfolio increased by $280.6 million to $2,916.7 million during the half-year following capital expenditure of $2.3 million and revaluation gains of $291.8 million, after adjusting for the straight-lining of rent of $1.0 million and less net proceeds from divestments of $14.5 million.

What’s next?

BWP Trust intends to focus on filling any vacancies in its portfolio, progress store upgrades, and extend its Bunnings leases through the exercise of options. It will also keep searching for new assets “where there is good potential for value creation”.

Investors can expect a dividend for the year ending 30 June 2022 in line with the current payout, so long as there are no major COVID-19 or other economic disruptions. Judging by the sliding BWP Trust share price, investors may have been hoping for more.

BWP share price snapshot

Over the past 12 months the BWP Trust share price is up 1%, trailing the 6% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

So far in 2022, BWP Trust shares are down 5%.

The post Dividend downer? BWP (ASX:BWP) share price slips following first-half results 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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Key points

• The Temple & Webster share price is rocketing 12% today
• The company’s revenues were almost 46% higher for the half ending 31 December 2021
• The retailer has not paid, declared, or indicated a dividend for the period

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The Temple & Webster Group Ltd (ASX: TPW) share price is rocketing today.

The gains come amid the Aussie homewares retailer releasing its earnings results for the half-year ending 31 December 2021.

The company’s revenue figure shows its business has more than tripled in a two year period.

At the time of writing, the Temple & Webster share price is up 12.17% at $9.03 after hitting a high of $9.37 earlier this morning.

So what exactly did the company achieve in the recent half? Let’s take a closer look…

Temple & Webster corporate results

At a glance, the retailer’s results for the half-year ending 31 December were as follows:

• Revenues (from ordinary activities) up almost 46% to $235 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) at 5.1% — higher than its full-year target of 2-4%
• No debt and a closing cash balance of $105 million
• Net profit (before tax) was down 26.8% to $10.6 million (against its prior corresponding period [PCP])
• Conversely, profits (from ordinary activities after tax attributable to owners) was down 40% to $7.2 million

The results come just a week after Goldman Sachs tipped the company might deliver disappointing half-yearly results, predicting “a lower return on marketing investment vs. market expectations over the near term”.

However, no dividends from the retailer were paid, recommended or declared during the current financial period.

Comment from management:

Temple & Webster CEO Mark Coulter said:

Temple & Webster remains one of the fastest growing retailers in the country, delivering record revenue of $235.4m for the half, up 46% on the year before and an incredible 218% on FY20. That means the business has more than tripled in 2 years.

Despite all the challenges that COVID continues to throw at the world, including significant disruptions to global supply chains and domestic logistics, Temple & Webster continues to outgrow the market, while keeping our customers very happy.

What else happened in the last half?

If we look deeper into Temple & Webster’s investor presentation for the half ending 31 December, we can see growth in its active customers, growth strategies, and a strong supply chain and inventory.

The retailer reported its brand awareness to be up 61% for the half, pushing its marketing strategy towards “the broader furniture and homewares market”. Its trade and commercial businesses also saw substantial growth of 49%.

Temple & Webster’s active customers hit 906,000, a 34% increase for the first half of FY22. Further, revenue per active customer increased by 10%, marking its sixth consecutive quarter of growth.

The retailer said this revenue and conversion has been assisted through investment in AI-generated tools, such as 3D imagery to “complete the look” of product recommendations.

In the future, the company aims to have “the largest 3D catalogue of furniture and homewares” in the country.

Looking at the products themselves, the company reported strong inventory valued at $20 million to drive into the next half, with products from a number of both private label and drop ship sources. (Drop shipping is fulfilling orders where the company doesn’t store the stock itself.)

“Diversity in our supply chain has allowed us to scale sustainably during COVID periods,” the company said.

Further, Temple & Webster is confident that its strong cash position will allow it to focus on “new growth horizons, such as Home Improvement”.

The company’s investor presentation said:

We remain confident our strategy is resonating with the next generation of shopper and that we are well placed to continue to take share in the markets we are operating in.

We will continue to reinvest operating leverage where it makes sense to do so, building strategic moats around the core business while investing into our new growth horizons.

Temple & Webster share price snapshot

Since 31 December, the Temple & Webster share price had dropped by 25% and by 35% in the last 6 months.

The company saw its share price hit a 52-week low of $7.72 in late January falling from its 12-month high of $14.71 in September.

The retailer has a market capitalisation of around $1 billion at the time of writing and a price-to-earnings ratio (P/E) of 77.07.

The post Cha-ching! Temple & Webster (ASX:TPW) share price soars 12% on record half revenues appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price is charging ahead today. This follows the company’s latest update on its quest to be listed on the Frankfurt Stock Exchange (FSE).

At the time of writing, the clean lithium developer’s shares are swapping hands for $9.82, up 7.79%.

Vulcan Energy advances on dual listing application

In today’s statement, Vulcan Energy provided an update on its application to have its shares listed on the FSE.

The company advised it has filed an application for admission to listing on the regulated market of the FSE.

As such, Vulcan Energy expects to be formally listed on the German exchange on 14 February.

The dual listing of Vulcan Energy’s entire share capital will be carried out without an accompanying capital raise. Vulcan management reviewed options to ensure the business and trading liquidity was supported. It determined that a capital raise was not needed.

As a result, there will be no public offer or private placement of Vulcan shares.

Vulcan Energy will become the first ASX-listed company on the FSE. This not only increases the international profile of the company to European investors but also provides an investment opportunity.

Vulcan Energy is aiming to become the world’s first lithium and energy renewables producer with net zero greenhouse gas emissions. It’s Zero Carbon Lithium Project is seeking to produce a lithium-hydroxide chemical product for the European electric vehicle (EV) battery market.

Vulcan Energy share price snapshot

Over the past 12 months, Vulcan Energy shares have edged higher, posting a gain of about 16%. Since 4 January, the Vulcan Energy share price has fallen by 9.5% despite investor sentiment heating up in its industry.

Based on today’s share price, Vulcan Energy commands a market capitalisation of about $1.19 billion. It has approximately 131.61 million shares on issue.

The post Vulcan Energy (ASX:VUL) shares could be set for a dual listing. Here’s what you should know appeared first on The Motley Fool Australia.

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

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The IDP Education Ltd (ASX: IEL) share price is falling on Wednesday morning following the release of its half year results.

At the time of writing, the language testing and student placement company’s shares are down 3% to $30.62.

IDP Education share price falls despite record revenue

• Revenue up 47% to a record of $397 million
• IELTS volumes grew 79%
• Earnings before interest and tax (EBIT) rose 61% to $77.9 million
• Adjusted EBIT up 64% to $80.7 million
• Adjusted net profit after tax jumps 70% to $52.9 million

What happened during the first half?

For the six months ended 31 December, IDP Education was well and truly back on form after significant disruption during the height of the pandemic. It reported a 47% increase in revenue to a record of $397 million.

This was driven by the acquisition of the British Council’s Indian IELTS operations and strong demand for its language testing services, which led to the key English Language Testing business reporting a 62% increase in revenue to $256.7 million.

Also performing positively were its Student Placement business, which reported a 33% lift in revenue to $106.2 million, and its Digital Marketing and Events business, which delivered a 15% increase in revenue to $23.8 million.

In respect to Student Placement revenue, this growth was driven entirely by its Multi-Destination operations, which offset weaker revenues in its Australian operations. Positively, though, management notes there have been early signs of a rebound in interest in Australia, which has coincided with the relaxation of border restrictions and an extension of post-study work rights.

One slight disappointment, which could be holding back the IDP Education share price today, was that the company’s costs grew a touch quicker than its revenue. Direct costs were up 59% to $177.7 million and overhead costs rose 36% to $122 million. This led to the company’s EBITDA rising 43% to $96.6 million.

Finally, on the bottom line, IDP Education reported an adjusted net profit after tax of $52.9 million, which was up 70% over the prior corresponding period.

Overall, this result has fallen a little short of what analysts at Morgans were expecting, which could explain some of the weakness in the IDP Education share price. Morgans was expecting “a strong ‘post’-Covid earnings rebound: revenue +55% on pcp and NPATA ~+90% to A$57.5m.”

Management commentary

IDP’s Chief Executive Officer and Managing Director, Andrew Barkla, was very pleased with the half. He notes that IDP’s strength of business model, impactful innovation, and an attractive policy landscape had delivered a strong rebound in its results.

Mr Barkla said: “Our growth has accelerated, with strong volume increases in IELTS and Northern Hemisphere study destinations, which is evidence of the momentum we have built over the past six months. Crucially, our ongoing program of innovation reinforces IDP’s industry leadership position. Our unique combination of digital and physical solutions is underpinning our competitive advantage in a growing industry with supportive regulatory and policy settings.”

And while no guidance was provided for the second half, the CEO is positive on the company’s long term outlook.

He concluded: “We have invested for long-term growth and are seeing the benefits of this through increased demand for our services. Our unique digital platforms and trusted human connections will ensure our people, customers and institutions benefit from even stronger support.”

The post IDP Education (ASX:IEL) share price falls after record result falls short of expectations 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 Idp Education Pty 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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The Bapcor Ltd (ASX: BAP) share price is in the red after the company released its earnings for the first half of financial year 2022 (FY22).

At the time of writing, the Bapcor share price is $6.78, 3.97% lower than its previous close.

Bapcor share price slips despite tracking in line with guidance

• $900.1 million of revenue – 1.9% more than in the first half of FY21
• Proforma earnings before interest, tax, depreciation, and amortisation (EBITDA) of $137.2 million, a 5.8% drop from the previous first half
• $60.7 million of net profit after tax – down 14.7%
• Earnings per share (EPS) came to 17.97 cents, 13.7% lower than in the prior comparable period
• Fully franked 10 cent interim dividend – a 11.1% increase on its previous interim dividend

Bapcor struggled against COVID-19 lockdowns and restrictions over the first half of FY22.

The company also noted its EBITDA was impacted by the transition to its Victoria distribution centre and support provided to staff. Its revenue picked up during the second quarter of FY22, in line with easing restrictions.

According to Bapcor, its first-half performance is in line with its full-year guidance. That is, to deliver earnings to the level of FY21. The company says it was expecting a soft performance in the first half.

While its revenue, EBITDA, and profits all dropped compared to the first half of FY21, when compared to the first half of FY20 they recorded increases of 28%, 28%, and 27%, respectively.

Bapcor’s trade segment, comprising Burson Auto Parts and Precision Automotive Equipment, brought record revenue over the half. Its revenue was up 3.1%, while its same store sales grew 1.1%.

Bapcor New Zealand also saw its revenue boosted 0.5% and its EBITDA increase 0.5% on those of the first half of FY21. Though, New Zealand same store sales were down 1.6%.

Bapcor’s specialist wholesale segment recorded strong growth, with revenue up 7.4% and EBITDA increasing 4.3%. The segment added six new sites during the period.

Bapcor’s retail leg – encompassing Autobarn, Autopro, and Midas – delivered $197 million of revenue. That’s 5.4% less than in the prior comparable period, while its EBITDA dropped 15.7%.

However, the company noted the first half of FY21 was “an exceptional period that included the benefit of government stimulus.” Compared to the first half of FY20, Bapcor’s retail segment revenue and EBITDA were up 36.7% and 33.6% respectively.

What else happened in the first half?

Bapcor made some significant leadership changes during the first half of financial year 2022.

Its former CEO and managing director Darryl Abotomey announced his intent to retire in November after 10 years at the company’s helm.

In the wake of Abotomey’s decision, the company appointed former chief financial officer, Noel Meehan, as acting CEO in December. Meehan was officially given the CEO role yesterday.

Bapcor also refinanced its $270 million three-year debt facility in December.

The company ended the half with $203 million of net debt, compared to $164 million at 30 June 2021.

What did management say?

Meehan commented on Bapcor’s earnings for the first half of FY22:

Our 5-year strategy to drive sustainable long-term value for our stakeholders remains unchanged. We continue to make solid progress on executing our strategic targets, with a focus during the half on network growth, realising operational efficiencies, expanding our own brand product range, and growing in Asia…

During the half, we expanded our geographic footprint, opening 8 retail stores, 4 Burson stores, and 6 specialist wholesale sites resulting in Bapcor now having a presence in over 1,100 locations throughout Australia, New Zealand and Thailand.

We also developed our group logistics capabilities in the half, including transitioning our 3 largest warehouses in Victoria – Nunawading (retail), Preston (trade), and Derrimu (wholesale) which represent 80% of volumes – to our new consolidated distribution centre at Tullamarine.

What’s next?

Those interested in the Bapcor share price will likely want to know what to expect in the company’s full year results.

The company says the start of the second half has brought challenges as the COVID-19 Omicron variant spreads in Australia. Despite a resulting drop in demand, revenue for January 2022 was in line with that of January 2021.

Over the second half FY22, Bapcor is expecting stronger performance than the prior comparable period, subject to no more COVID-19 impacts.

Additionally, Burson Trade is expected to expand its network over the current half.

Bapcor share price snapshot

The Bapcor share price has performed in line with the broader market in 2022 so far.

It has slipped 3.28% since the start of this year. For comparison, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) have both slumped around 3% as well.

However, the Bapcor share price is still 16.54% lower than it was this time last year.

The post Down but not out: Bapcor (ASX:BAP) share price slumps on sluggish first half 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 recommended Bapcor. 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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During last month’s bloodbath, both the US and ASX shares touched the negative 10% threshold that qualifies the dip as a “correction”.

While both have bounced back in February to recover some of those losses, most experts agree there is plenty of volatility to still come in 2022.

So does this mean we will end the year worse than where we started?

Investment advisory house Wilsons this week tried to answer this dilemma with the release of its Corrections vs Bear Markets report. 

The Wilsons report acknowledged the current anxiety in markets.

“The hawkish shift in [US Federal Reserve] policy rhetoric is making investors nervous, particularly when it is occurring against a backdrop of a 40-year high in the US headline inflation rate,” the paper read.

“Investors are understandably concerned that the recent ‘short-sharp’ correction could morph into something deeper and longer.”

The Wilsons team then examined the evidence to try to work out whether the current dip would turn into a full-on crash or a bear market.

Why the signs don’t point to a bear market

The report judged that a correction is still “the most likely scenario” and that at the end of the turbulence we would still end up with an upward-moving market.

“The 12-month outlook remains positive.”

While that might be some relief for ASX shares, the paper far from guaranteed that the bumpy ride was over.

“It is, of course, very difficult to say if the recent lows are indeed the lows for this correction phase,” the Wilsons team stated.

“To the extent that the recent correction was both short and mild, even by the standards of bull market corrections, it is quite possible that we could have a lower low ahead of us.”

The report pointed to several signs that led to its conclusion.

The first is that bear markets generally accompany recessions in the US.

“US recessions almost always coincided with a ‘significant tightening’ of Fed policy,” the paper noted.

“[But] a tight policy backdrop is not currently in place. Policy is beginning to tighten but remains very easy.”

Looking ahead in a year’s time, monetary policy would still “likely to be on the easy side of neutral”, according to Wilsons.

“We will continue to watch for signs that challenge this thesis, but for now, we continue to see 12-month equity market prospects as decent.”

The great news for local shares is that Wilsons reckons prices are not yet ridiculous.

“Valuations outside the US actually look quite cheap in our view. We are overweight Australia and the rest of [the] world vs the US,” the report read.

“So, while parts of the US market are experiencing an overdue valuation unwind, we do not believe equities have a genuinely broad-based valuation problem.”

The post Will this dip in ASX shares turn into a CRASH? appeared first on The Motley Fool Australia.

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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. 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

In 2019, cryptocurrency exchange Bitfinex was hacked and almost 120,000 Bitcoins (CRYPTO: BTC) were stolen. Most of those have just been recovered, according to today’s press release from the US Department of Justice. Valued at roughly $3.6 billion, these Bitcoins represent the largest seizure of funds in history.

And, shockingly, it’s not Bitcoin that’s surging today but rather Unus Sed Leo (CRYPTO: LEO). As of 3:30 p.m. ET, Leo crypto tokens were up a whopping 46% over the past 24 hours. And there’s a good explanation why.

So what

Leo is a utility token created for the Bitfinex exchange. When Bitfinex was hacked, it did what it could to financially help those who were negatively impacted — an expensive decision. By issuing up to one billion Leo tokens, the company was able to raise money to help with its suddenly stretched financial situation.

When it created Leo, the company established a system of repurchasing tokens monthly until they were all gone. But in the official white paper — kind of an equivalent to a prospectus for IPO stocks — it states that whenever stolen Bitcoin was recovered, it would use at least 95% of those funds to repurchase Leo tokens and burn them. Because of the Department of Justice’s announcement today, the value of Leo tokens is skyrocketing in anticipation of this event.

Now what

There are a couple of caveats here. First, there are still legal proceedings and it’s unclear when exactly Bitfinex will receive the recovered Bitcoins. Second, the white paper says that tokens will be burned within 18 months of recovery. So it may take some time for the company to actually repurchase and burn Leo tokens.

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

The post $3.6 billion crypto heist thwarted, sending this obscure cryptocurrency skyrocketing appeared first on The Motley Fool Australia.

More reading

• This global financial giant is buying up Bitcoin. Could ASX banks be next?
• Why Bitcoin and Ethereum Were Up Big Today
• Bitcoin price rally fuels outsized gains amongst top altcoins
• Why Bitcoin, Ethereum, Polkadot, and Solana jumped this weekend
• Battle of the crypto assets: Bitcoin versus Bitcoin Cash

Jon Quast owns Bitcoin. The Motley Fool owns and recommends Bitcoin. The Motley Fool has a disclosure policy.

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

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