Category: Stock Market

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.1% to 7,447.1 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to tumble on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower this morning. This follows a poor start to the week on Wall Street, which in late trades sees the Dow Jones down 0.7%, the S&P 500 down 0.7%, and the Nasdaq trading 0.75% lower.

Ramsay signs NHS agreement

The Ramsay Health Care Limited (ASX: RHC) share price will be on watch today after it reached an agreement relating to a new volume-based agreement with NHS England (NHSE). The deal will make its services available to the NHSE and its patients to meet the ongoing demands resulting from the COVID-19 pandemic.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 0.6% to US$78.45 a barrel and the Brent crude oil price has fallen 0.75% to US$81.14 a barrel. Oil prices fell due to Omicron concerns.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,799.70 an ounce. Traders appear to have been buying the precious metal amid weakness in equities.

Platinum update

The Platinum Asset Management Ltd (ASX: PTM) share price will be one to watch today following the release of its latest funds under management update. Unfortunately, the fund manager had a tough month and recorded net outflows of approximately $168 million in December. This left it with funds under management of $22,006 million.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 2 ASX healthcare shares to give your portfolio a boost
• ASX retail investors should be banned from ‘financial heroin’: Choice
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• 2 ASX 200 shares that could be top buys for growth

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 Ramsay Health Care 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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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

2021 was a rough year for many manufacturers, as businesses were forced to navigate cost increases and supply chain constraints. Electric-vehicle (EV) leader Tesla (NASDAQ: TSLA) handled those issues and thrived. As a result, its business continued to grow, and investors pushed its shares up 49.8% in 2021, according to data from S&P Global Market Intelligence. That jump came after a torrid year for the stock in 2020, when shares rocketed more than 700%. Many investors are now wondering whether the stock will continue rising in 2022. 

So what

Tesla finished the year strong, reporting more than 308,000 vehicle deliveries in the fourth quarter. That brought its 2021 total deliveries to 936,172, representing an 87.4% increase over 2020. When the company reports its full-year 2021 results, investors will probably hear that revenue for the year exceeded $50 billion. And the business is profitable. Net income through the first nine months of 2021 was nearly $3.2 billion. Investors are now looking forward to new catalysts on the way. 

The company should begin production this year at both of its two new facilities in Austin, Texas, and near Berlin, respectively. The Texas plant will be the first to begin making the Cybertruck. Widely followed Wedbush Securities analyst Dan Ives believes the Austin plant will begin production as soon as next week, reports Barron’s. 

Now what

2022 looks to be the first year that Tesla won’t be the only big game in town. Competition from traditional automakers and EV startups is coming online. Ford, for example, has already begun selling its Mach-E SUV in the U.S. and China at a starting price that competes with Tesla’s midsize Model 3 sedan. And startups including Lucid Group and Chinese EV maker Nio are bringing luxury electric sedans to market in 2022 that customers might prefer over the Model S. 

But those startups have yet to prove they can manufacture vehicles at scale. Tesla itself recently was forced to recall 475,000 vehicles for issues including potential front hood latch and camera problems. 

It may be the traditional manufacturers that are converting from internal combustion to electric-powered vehicles that bring the biggest competitive threat to Tesla in 2022. But the market for EVs looks set to grow in accordance with the increased availability of new offerings.

It remains to be seen how investors will continue to value Tesla stock. But with two new plants beginning production, and the introduction of the Cybertruck, Tesla’s business looks like it should have another big year of growth in 2022. 

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

The post Why Tesla shares jumped 50% last year appeared first on The Motley Fool Australia.

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• Why Tesla stock just keeps falling
• Could Tesla deliveries double this year?
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• 3 obscure lithium ASX shares ready to pop in 2022

Howard Smith owns Lucid Group and Nio. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Nio and Tesla. 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.

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Today, the S&P/ASX 200 Index (ASX: XJO) posted a slight move to the downside. At the end of the session, the benchmark index fell 0.08% to 7,447.1 points.

It was a mixed session on the ASX today, with the market split in two directions. Unfortunately, the gains from mining and energy shares weren’t enough to compensate for the undesirable segments of the share market. The most disappointing performances were witnessed across the consumer discretionary, healthcare, tech sectors today.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery technology company jumped 10.91% after announcing its plans to list on the Nasdaq exchange in the United States. Find out more about Novonix here.

The next biggest gaining ASX share today was AGL Energy Ltd (ASX: AGL). The energy giant experienced a positive session to the tune of 8.60% today following an upgrade on the company’s shares from analysts at Credit Suisse. Uncover the latest AGL Energy details here.

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

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$10.37	10.91%
AGL Energy Ltd (ASX: AGL)	$6.82	8.60%
Magellan Financial Group Ltd (ASX: MFG)	$20.63	6.95%
Whitehaven Coal Ltd (ASX: WHC)	$2.905	5.64%
South32 Ltd (ASX: S32)	$4.07	3.83%
AVZ Minerals Ltd (ASX: AVZ)	$0.895	3.47%
Champion Iron Ltd (ASX: CIA)	$5.97	3.47%
Coronado Global Resources Inc (ASX: CRN)	$1.35	3.45%
Latitude Group Holdings Ltd (ASX: LFS)	$2.15	3.37%
Alumina Ltd (ASX: AWC)	$1.935	3.20%

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 retail investors should be banned from ‘financial heroin’: Choice
• Why AGL, Genetic Signatures, Liontown, and Novonix shares are charging higher
• Here’s why the AGL (ASX:AGL) share price is surging 8% today
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• Novonix (ASX:NVX) share price jumps 7% on Nasdaq listing plans

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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Due to favourable tailwinds such as ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.

In light of this, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:

Nanosonics Ltd (ASX: NAN)

The first ASX healthcare share to look at is Nanosonics. It is a leading infection prevention company behind the popular trophon EPR ultrasound probe disinfection system. Last year this system was protecting an estimated 80,000 patients from the risk of cross contamination each day.

And while this is generating strong revenues, management isn’t settling for that. The company is also busy researching and developing a number of new products which are due to be launched in the coming years.

One of these is AuditPro. It is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices. Another is the Nanosonics Coris platform. This new platform, which is expected to be launched in 2023, is for cleaning flexible endoscopes. This could be an even bigger market than ultrasound probe disinfection.

Morgans is positive on the company and has an add rating and $6.97 price target on its shares. This compares to the latest Nanosonics share price of $5.87.

Ramsay Health Care Limited (ASX: RHC)

Another ASX healthcare share to look at is Ramsay Health Care. It provides quality healthcare services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.

Although trading conditions have been tough over the last 18 months and recent elective surgery restrictions are weighing on its performance, the company has been tipped to bounce back strongly when trading conditions normalise. Particularly given the pent-up demand for healthcare services and its proposed acquisition of Elysium Healthcare.

Goldman Sachs is a fan of Ramsay. It currently has a buy rating and $74.00 price target on the company’s shares. This compares favourably to the latest Ramsay share price of $67.25. The broker believes Ramsay’s valuation is undemanding for a defensive asset leveraged to improving vaccine rates and a favourable growth profile.

The post 2 ASX healthcare shares to give your portfolio a boost appeared first on The Motley Fool Australia.

More reading

• 3 top ASX 200 shares to buy in January
• Why is the Ramsay (ASX:RHC) share price so volatile today?
• Ramsay (ASX:RHC) share price falls 6% amid reports of COVID battle plan
• These ASX healthcare shares could be excellent buy and hold options
• These were the best performing ASX 200 shares last week

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 Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 Insurance Australia Group Ltd (ASX: IAG) share price had a rough year in 2021.

Shares in the company fell from $4.70 to $4.26 during the year, a 9% fall.  In contrast, the S&P/ASX 200 Index (ASX: XJO) gained around 13%

Let’s take a look at how the year played out for the insurance group.

Tough end to the year

The IAG share price was up and down like a rollercoaster in 2021 before a huge slump at the end of the year.

In an early high for the company, IAG shares soared 8% between market close on 8 February and 11 February. Strong financial results were received well by investors, with the company reporting a 3.8% rise in gross written premiums. Insurance profit also surged by 33.1% due to a low level of claims.

However, shares in the company then fell dramatically by nearly 15% between market close on 11 February and 10 March. Shares crashed on 9 March before being put in a trading halt. Media speculation on exposure to the Greensill collapse weighed on investors minds. However,  IAG informed the ASX it had “no net insurance exposure to trade credit policies including those sold through BCC to Greensill entities”.

The company’s share price then recovered this loss, soaring more than 15% between 10 March and 8 June. Several new leadership changes were announced by the CEO.

In August, the IAG share gained on the back of a major board reshuffle and positive FY21 results. Between 4 August and 12 August, the company’s shares gained 12%. The company saw a 3.8% increase in its gross written premium to roughly $12.1 million.

September saw the ING share price plummet nearly 12% between 6 September and 24 September. Investors reacted to news CMC Hospitality had filed an application to start Federal court proceedings against the company. This hit the share price hard.

Then between 11 October and 17 November, the share price took another massive hit amid news ASIC had taken IAG subsidiary Insurance Australia limited to court. Severe storm and hail activity also negatively impacted the company’s claim costs, further driving down the share price.

Share price recap

The IAG share price performed roughly 22% worse than the benchmark ASX index in 2021. On a positive note, the new year is starting well for the company, with shares up 4.23% so far this year.

Shares in the company are down 1.33% in the past month.

The company has a market capitalisation of about $10.9 billion based on the current share price.

The post What happened to the Insurance Australia (ASX:IAG) share price in 2021? appeared first on The Motley Fool Australia.

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• What’s happening with the IAG (ASX:IAG) share price today?
• Leading brokers name 3 ASX shares to sell today
• Could the IAG (ASX:IAG) share price be on the road to recovery in 2022?
• Own IAG (ASX:IAG) shares? Here are the key dates to pencil in for 2022
• Brokers name 3 ASX shares to sell

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia 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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Shares in rare earths miner Lynas Rare Earths Ltd (ASX: LYC) crawled higher today, finishing less than 1% in the green at $11.12.

Investors have been keen on Lynas shares during the last month or so, driving prices to new 52-week highs to herald the end of 2021.

A number of positive updates boosted the company’s share price throughout the year, underscored by strengths in the rare earths and lithium battery markets.

Here’s what the experts are saying about the Lynas share price.

What are brokers saying about the Lynas share price?

Macquarie analysts are bullish on the direction of Lynas shares. They say recent actions addressing the company’s operations could give Lynas a shot to widen its footprint outside Malaysia.

Specifically, analysts reckon Lynas’ strategy to move its upstream leaching and cracking operations to Australia is a solid approach to diversify from its Malaysian processing plant.

Macquarie says the shift in operations “should enable total rare earth oxide and [neodymium and praseodymium] output to more than double over the next five years from the FY21 operating level”.

The Macquaries team notes this output level equates to a compound annual growth rate (CAGR) of 16% into 2026. Macquarie, therefore, expects Lynas to outperform and values the company at $12.20 per share based on its market modelling.

Meanwhile, the team at Canaccord Genuity also recently initiated coverage on Lynas with a buy, joining the likes of Barrenjoey Markets and Cowen.

Each firm reckons Lynas is set to outperform the market substantially over the next 12 months and each has valued the company at just over $10 per share.

Ord Minnett is less constructive, however, and values Lynas at a paltry $4.60 with a ‘lighten’ rating – that is akin to a sell recommendation.

Lynas share price snapshot

Shares in the rare earths specialist soared around 155% in 2021 amid heightened demand for rare earths commodities which have buoyed the share price.

During 2021, the price of several key rare earths metals (which aren’t that rare by the way) spiked on several occasions, each boding well for the company.

In November for instance, Lynas shares gained more than 20% as the prices of neodymium and other rare earths shot higher.

December was also a good month for the company. Lynas advised its Malaysian permanent disposal facility for water leach purification residue had received regulatory approval

As such, the company closed the year on a 52-week high. And, according to Trading Economics, demand for rare earths in lithium-type batteries looks set to continue, keeping rare earths markets buoyant into 2022.

The post Here’s why leading brokers name the Lynas (ASX:LYC) share price as a buy appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here are the 5 best performing ASX 200 mining and resource shares of 2021
• Why did the Lynas Rare Earths (ASX:LYC) share price surge 155% in 2021
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• These were the 5 best performing ASX 200 shares in 2021

The author has no positions 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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Last year was a good time to be a crypto investor, as the alternative asset class received renewed optimism.

The largest cryptocurrency by market capitalisation, Bitcoin (CRYPTO: BTC), posted a 57% gain during the year. However, this pales in comparison to the outlandish performance of other cryptos and tokens in 2021.

When discussing investment returns we would usually be talking in the realm of tens or hundreds of percent. But today we’ll be referencing returns in excess of 15,000% in a single year.

For this collection of best performing cryptocurrencies in 2021, we have filtered down to the top 100 by market cap, according to CoinMarketCap. This removes the lesser-known and more volatile cryptos from our view.

Without further ado, here are the five best cryptocurrencies/tokens of the year gone by.

Governance and metaverse tokens make top 5

Kicking off our list of the best performing crypto assets in 2021 is Terra (CRYPTO: LUNA). This blockchain-based protocol supports stable programmable payments using algorithmic means.

In other words, Terra, and its LUNA token, provide stability to cryptocurrencies. Simultaneously, the LUNA token acts as a governance token, which allows holders to vote on decisions for the underlying protocol.

An influx of decentralised applications being built on the Terra blockchain has helped this token achieve mind-blowing returns by the end of 2021. To be specific, the LUNA token was propelled 15,970% higher last year.

Beating out Terra in 2021 was a token that is well known in the metaverse community. The Sandbox (CRYPTO: SAND) token rapidly appreciated in value after Facebook announced its rebrand to Meta Platforms Inc (NASDAQ: FB) amid its push to be a big player in the digital world.

Being one of the most prominent names in blockchain-based digital worlds, The Sandbox and its native token enjoyed a substantial boost after Facebook acknowledged the metaverse in a big way. In turn, the increased attention pushed returns for The Sandbox token to 17,387% in 2021.

Great year for game-based cryptos amid NFT craze

Axie Infinity is a blockchain-based game that tapped the non-fungible token (NFT) explosion last year. The game’s characters, known as Axies, are represented as NFTs — giving players ownership of their playable creatures.

Additionally, the game operates on a pay-to-earn model, allowing players to win crypto. Players can also exchange their Axie NFTs as another way to potentially profit from the game.

It appears the game has been a success, with daily active users surpassing 2 million. Similarly, the game’s token Axie Infinity (CRYPTO: AXS) has erupted, gaining 20,043% in the span of 12 months.

This return might seem extremely impressive, yet the next best crypto on our list trumped those returns. The Gala (CRYPTO: GALA) token showered investors with profits in 2021, netting a staggering 49,368% gain at the end of the year.

Although Gala is also in the gaming realm, it’s a little different from Axie Infinity. Setting it apart, Gala Games seeks to provide people with control over their games and in-game assets. In addition, the platform offers token holders the ability to vote on what games get funding and are developed.

From ‘underdoge’ to king of crypto returns

It wouldn’t be the top five cryptos without the token that took the world by storm last year. Shiba Inu (CRYPTO: SHIB) is a decentralised cryptocurrency aspiring to be an Ethereum-based alternative to Dogecoin (CRYPTO: DOGE).

Many would know that these tokens are inspired by memes. However, some may not know that Shiba Inu is more than a meme. The Dogecoin alternative has created an entire decentralised finance platform, allowing users to exchange between different tokens and earn rewards from staking.

If you were an investor of Shiba Inu at the start of 2021 and held throughout the year, there’s a good chance it’s made you a millionaire. The crypto recorded a head-spinning 24,330,175% return last year.

The post Forget Bitcoin! These were the 5 crypto assets you wish you’d held in 2021 appeared first on The Motley Fool Australia.

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• Bitcoin and Ethereum are crashing: Is now the time to invest?
• Could Shiba Inu Surpass Dogecoin in 2022?
• The Bitcoin (CRYPTO:BTC) price has tumbled 10% since the start of 2022. Is it a buy?
• This cryptocurrency could 10x by 2026
• Can Ethereum overtake Bitcoin in 2022?

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns Bitcoin, Dogecoin and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. and Bitcoin. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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Prior to the end of the year, analysts at Bell Potter were busy picking out the shares to buy in 2022.

Among the 30+ shares that the broker named were the two listed below. Here’s why it thinks they could have a great year:

Cooper Energy Ltd (ASX: COE)

In the energy sector, Bell Potter has named Cooper Energy as an ASX share to buy in 2022. The broker has put a buy rating and 38 cents price target on its shares. This compares favourably to the current Cooper Energy share price of 28 cents.

Bell Potter believes the company is well-placed to benefit from supply deficits in Australia’s south east coast market.

It commented: “Supply deficits in Australia’s south east coast market should support gas prices over the medium to long term and COE has a portfolio of conventional gas assets leveraged to this theme. Upgrades at the Orbost Gas Processing Plant in the March 2022 quarter will provide a step-change in production and earnings in FY23.”

“In the Otways, cutover to the larger, low cost Athena gas plant in late 2021 will provide uninterruptable gas processing and spare capacity for potential new Otway Basin discoveries. An upgrade to prospective Otway gas resource estimates is expected in the March 2022 quarter,” it concluded.

Money3 Corporation Limited (ASX: MNY)

In the Industrials sector, the broker has picked out this automotive-focused consumer finance provider. It has put a buy rating and $4.35 price target on its shares, which compares to the latest Money3 share price of $3.45.

Bell Potter believes the company is well-positioned to hit its guidance in FY 2022 and for further solid growth in the coming years.

It explained: “MNY is a beneficiary of favourable macro conditions for loan book growth, evidenced by strong originations in Nov’21 which are likely to accelerate into CY22 as VIC/NSW and NZ emerge from lockdowns. With ample funding headroom to support its strong outlook and greater book leverage, we believe MNY is well placed for its FY22 NPAT Guidance of $50m.”

“Having built a solid platform for growth, and improved ROE over the medium term, we believe MNY is well placed to deliver double digit forecast EPS growth over the next 3 years, and we see value in the business at its current PER of ~14x FY22e & ~11x FY23e, with a FY22e dividend yield of ~3.6% ff (~5.2% grossed up),” the broker added.

The post Top analysts say these ASX shares have upside potential of at least 25% appeared first on The Motley Fool Australia.

More reading

• Forget Bitcoin! These were the 5 crypto assets you wish you’d held in 2021
• Why is the Pilbara Minerals (ASX:PLS) share price having such a stellar start to 2022?
• Down 70% in six months: Is the Sezzle (ASX:SZL) share price a massive bargain?
• Own NIB (ASX:NHF) shares? Here are the key dates for your investor diary in 2022
• 3 excellent ASX shares for growth investors in January

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

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The Pilbara Minerals Ltd (ASX: PLS) share price is off to a flying start in 2022.

The stock has gained 10.94% since the final close of 2021 despite no news having been released by the company.

It also came in as one of 2021’s top performing mining and resources shares of the S&P/ASX 200 Index (ASX: XJO).

It goes without saying, the Pilbara share price is on a roll. As of Monday’s close, its trading at $3.57, 2% higher than its previous close.

For context, the ASX 200 slipped 0.08% today.

Let’s take a look at the expert opinions that might have helped drive the lithium producer’s shares higher lately.

What might be boosting the Pilbara Minerals share price?

According to reporting by The Age, Bank of America (NYSE: BAC) upgraded its guidance for the Pilbara Minerals share price. Meanwhile, its analyst Jack Gabb is bullish on the company’s next lithium auction.

As The Motley Fool Australia has previously reported, many experts predict lithium will be a hot commodity in 2022, with demand exceeding supply by up to 5,000 megatons of lithium carbonate equivalent.

With Australia accounting for a huge chunk of the world’s lithium resources, the ASX is geared up to benefit from the shortfall.

This is highlighted through Pilbara Minerals’ spodumene concentrate digital auctions, conducted via its Battery Material Exchange.

An auction in September saw the lithium producer receiving a bid of US$2,240 per dry metric tonne. Another in October saw a buyer bidding US$2,350 per dry metric tonne.  

According to the analyst, as quoted in The Age, those prices are just the beginning. It’s reported Gabb expects Pilbara could see spot prices reach as high as US$3,900 per tonne at its next auction.

Sector fundamentals remain strong with spot spodumene prices set to increase significantly this quarter and contract prices still playing catch-up… Hence, we expect spot pricing to remain elevated.

Such expectations have reportedly led the Bank of America to increase its expectations for the company, lifting its price target for Pilbara Minerals by 13%.

That could have led the market to bid the company’s stock higher in turn.

Over the last month, the Pilbara Minerals share price has gained 42%. Additionally, it’s recorded a 226% gain over the last 12 months.

The post Why is the Pilbara Minerals (ASX:PLS) share price having such a stellar start to 2022? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 5 best performing ASX 200 mining and resource shares of 2021
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• What is JP Morgan saying about ASX lithium shares?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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 Sezzle Inc (ASX: SZL) share price has fallen approximately 70% in the last six months.

That is a large decline.

In-fact, it has been a pretty rough few months for several operators including Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT) and so on.

The market has punished the buy now, pay later (BNPL) industry.

There is growing commentary and concern that regulators are having a closer a look at the BNPL sector with how large it has become. It is more important for the overall payments system and economy.

Australian BNPL under the spotlight

In Australia, the BNPL sector is coming under greater scrutiny and there is a growing call for merchants to be able to add surcharges to customers who use that option. Why? On the Reserve Bank of Australia’s website is this segment from last year:

The Bank’s longstanding view, which has been borne out by experience following the Bank’s reforms in the early 2000s, is that the right of merchants to apply a surcharge promotes payments system competition and keeps downward pressure on payment costs for businesses.

If a business chooses to apply a surcharge to recover the cost of accepting more expensive payment methods, it may encourage customers to make the payment using a cheaper option. In addition, the possibility that a consumer may choose to use a lower-cost payment method when presented with a surcharge helps put competitive pressure on payment schemes to lower their pricing policies, indirectly lowering merchants’ payments costs. The possibility of surcharging may also help merchants to negotiate lower prices directly with their payments service provider.

By helping keep merchants’ costs down, the right to apply a surcharge means that businesses can offer a lower total price for goods and services to all of their customers.

How does Australia regulation affect the Sezzle share price?

Sezzle isn’t an Australian-based business, though sentiment about Australian peers could possibly impact things.

In the US, where Sezzle is based, officials are also looking at the industry.

Just before Christmas, the Consumer Financial Protection Bureau (CFPB) issued a series of orders to five BNPL companies: Affirm, Afterpay, Klarna, PayPal, and Zip. The CFPB said it is concerned about accumulating debt, regulatory arbitrage, and data harvesting in a consumer credit market already quickly changing with technology.

CFPB Director Rohit Chopra said:

Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too.

Is the company still growing strongly?

Whilst the Sezzle share price has been sinking, its underlying merchant sales (UMS) have continued to scale quickly.

For the month of November 2021, Sezzle saw its growth of 83% year on year with the annualised run rate reaching US$2.5 billion.

For the 4-day period of Black Friday to Cyber Monday, there was growth of 53% for the US and Canada, with in-store growth of 783% and online rising 46%.

Active merchants went up 84% year on year and active consumers rose 60%.

Is the Sezzle share price a buy?

The broker Ord Minnett thinks so, with a price target of $9.90. If that happened during 2022, it would be a return of around 250%. Ord Minnett notes the success of Sezzle of a partnership in the huge US retail space.

The post Down 70% in six months: Is the Sezzle (ASX:SZL) share price a massive bargain? appeared first on The Motley Fool Australia.

More reading

• These were the 5 worst performing ASX BNPL shares of 2021
• Latitude (ASX:LFS) boss warns many ASX BNPL companies “will go out of business”
• Zip (ASX:Z1P) share price dives 8% amid US concerns and Sezzle merger rumbles
• Why is the Sezzle (ASX:SZL) share price tumbling 7% 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. owns and has recommended Afterpay Limited and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay 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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