Category: Stock Market

Are you wanting to add some growth shares to your portfolio this month? If you are, then you may want to check out the two listed below.

Here’s why analysts are tipping these ASX shares as buys:

Bapcor Ltd (ASX: BAP)

The first ASX growth share to look at is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.

Earlier this week, Bapcor released its full year results and revealed strong sales and profit growth. For the 12 months ended 30 June, the company reported a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million.

This was driven by growth across the business. Bapcor’s CEO & Managing Director, Darryl Abotomey, explained: “As was the case in the first half of the year, every one of our business segments increased revenue and earnings, capitalising on the increased demand during the period while at the same time also delivering major projects across the group that will set us up for continued success.”

And while management’s guidance for FY 2022 was somewhat cautious, the team at Credit Suisse remain positive.

In response to the release, the broker has retained its outperform rating and trimmed its price target ever so slightly to $9.20.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the Australian appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Breville was on form in FY 2021 and has also just delivered a stellar full year result. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.

The company’s CEO, Jim Clayton, explained that its international expansion and the work from home initiative were key drivers of its strong result.

He commented: “A fairly remarkable year for the Group with accelerated demand experienced in the first half carrying through to the second half. Increased consumer demand, driven by the need/requirement to work from home, coupled with our continued geographic expansion, outweighed logistical challenges and a weakening USD.”

In response to the result, Morgan Stanley retained its overweight rating and lifted its price target to $36.00. It expects its strong form to continue and is forecasting further strong earnings growth in FY 2022.

The post 2 fantastic ASX growth shares named as buys this week appeared first on The Motley Fool Australia.

More reading

• The Bapcor (ASX:BAP) dividend bumps up 14%
• These top ASX dividend shares keep giving investors a payrise
• Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today
• Top brokers name 3 ASX shares to buy today
• The Bapcor (ASX:BAP) share price is rising after FY21 earnings on Wednesday

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 owns shares of and has recommended Bapcor. 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/3j02LBb

If you’re wanting to add some diversification to your portfolio, then you might want to look at exchange traded funds (ETFs). The reason for this is that ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs which are popular with investors. Here’s what you need to know about them:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors exposure to a diversified portfolio of 48 fairly priced US companies with sustainable competitive advantages or moats.

Historically, companies with moats have generated strong returns for investors. It is for this reason that Warren Buffett is such a big fan of investing in companies with this characteristic. And given the returns he has generated over the long term, it is hard to argue against this.

Among the ETF’s holdings are the likes of Alphabet (Google’s parent), Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, Salesforce, and Yum! Brands.

Over the last five years, the fund has outperformed the ASX 200 index by some distance. During this time, it has generated an average total return of 19.4% per annum.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,505 of the world’s largest listed companies from major developed countries.

The fund manager notes that this ETF gives investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the many companies investors will be buying a slice of are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Procter & Gamble, and Visa.

Over the last five years, the Vanguard MSCI Index International Shares ETF has generated a total return of almost 15.3% per annum.

The post 2 excellent international ETFs for ASX investors this month appeared first on The Motley Fool Australia.

More reading

• This Buffett-inspired ASX ETF is up almost 30% in just 6 months
• Why these 2 top ETFs could be buys
• ASX investors can’t get enough! ETF inflows hit new record high
• 3 excellent ETFs for ASX investors in August
• 2 ASX shares that might be worth looking at this weekend

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and Vanguard MSCI Index International Shares ETF. 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/3svmEmD

It was a wild day of reporting on the ASX today. While we can’t fit all of the day’s results into a single article, we’ll take a look at some of the biggest names.

We’ll quickly unpack today’s results and then wrap it back up for tomorrow:

Those that delivered today

Origin Energy Ltd (ASX: ORG)

Shares in Origin Energy fell 4.12% after the energy company reported its FY21 full-year results. A reduction in revenue and a significant loss on the bottom line appear to have caught investors off guard during Thursday’s session.

The takeaway points:

• Total group revenue down 8% to around $1.2 billion
• Around $2 billion of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) – 35% less than in FY20
•  Statutory loss of approximately $2.2 billion
• Underlying profit of $318 million
• Unfranked 7.5 cent final dividend – 2.5 cents less than FY20’s final dividend.

Redbubble Ltd (ASX: RBL)

The Redbubble share price swung violently after reporting on the ASX its full-year results for FY21 before the market opened. In early trade, shares in the e-commerce company dropped roughly 14%. However, by the end of the day, the share price was up 18.95%.

The takeaway points:

• Gross transaction value up 48% on the prior year to $701 milliion
• Marketplace revenue increased to $553 million, up 58%
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $53 million, up 930% from FY20
• Net profit after tax swung from a loss of $9 million in FY20 to a profit of $31 million
• Unique customers climbed to 9.5 million, up 40% from prior year.

Treasury Wine Estates Ltd (ASX: TWE)

While Treasury Wine Estates delivered an FY21 result mostly in line with guidance, shares in the winemaker sank 1.5%. Import duties on Australian wine put in place by China took a toll on earnings from the Asia geography. Yet, the company remained positive on growth for key markets outside of China.

The takeaway points:

• Net sales revenue down 3% to $2,569.6 million
• Earnings before interest, tax, SGARA and material items (EBITS) down 0.4% to $510.3 million
• EBITS margin increased 0.6ppts to 19.9%
• Net profit after tax up 1.8% to $250 million
• Fully franked final dividend up 62.5% to 13 cents per share, bringing full year dividend to 28 cents per share.

ASX shares reporting tomorrow

Tomorrow will be a bit quieter on the ASX for reporting. However, there will still some ASX shares that likely ring a bell.

Some of the big-name companies set to release their financials include Cochlear Ltd (ASX: COH), Sydney Airport Holdings Pty Ltd (ASX: SYD), Adairs Limited (ASX: ADH), and Bravura Solutions Ltd (ASX: BVS).

To see the full line-up check out our ASX Reporting Season Calendar.

The post The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Redbubble soars, TWE falls
• Why BHP, Codan, IGO, & Origin shares are dropping
• Redbubble (ASX:RBL) share price bounces 40% off Thursday lows
• Why Data#3, NRW, Redbubble, & Western Areas shares are storming higher
• Treasury Wine Estates (ASX:TWE) share price struggles despite profit increase

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 owns shares of and has recommended Treasury Wine Estates Limited. 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/3gdIMNw

The Beacon Lighting Group Ltd (ASX: BLX) share price pushed higher today, finishing up 3.95% to $1.98 per share at market close.

This comes after the lighting specialist company released its full year results for the 2021 financial year (FY21) this morning.

We take a look at the highlights below.

Beacon Lighting share price lifts on FY21 results

• Sales increased 14.7% to $288.7 million
• Gross profit of 197.3 million, an increase of 23.1% year-on-year
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37.4% to $85.96 million, up from $62.57 million in FY20
• Net profit after tax (NPAT) of $37.66 million, up 69.4% from the $22.23 million reported in FY20
• Record dividend of 8.80 cents per share (fully franked) declared for FY21, up from 5 cents in FY20

(*Note, the above results are statutory.)

What happened during the 2021 financial year?

Reporting on its record sales and profit results, Beacon Lighting revealed that its company store comparative sales increased by 13.3% year-on-year. Meanwhile, online sales were spurred to a new record by COVID stay at home orders, increasing 60.3%. And international sales soared 45.3% to a record $12.3 million.

Beacon Lighting also opened 4 new stores during the financial year, with 1 new store in Queensland, 2 in New South Wales, and 1 in Western Australia.

In line with record online sales, the company upgraded its website for a smoother customer experience.

While revenues were up, operating expenses were down, falling by 3.6% of sales to $112.2 million.

Beacon ending the year with a cash balance of 33.8 million following investment property purchases totalling $15.2 million.

The company cautioned that rolling state lockdowns continue to impact its retail sales.

What’s next for Beacon Lighting

Looking ahead, the company plans to open more new stores, with 2 slated to open in Western Australia and 1 more in Victoria. It will relocate 2 existing stores in New South Wales, 1 in Victoria and 1 in Queensland.

Beacon Lighting also reported it will launch beaconlighting.us direct to a consumer sales website in the United States. It also plans to expand its international sales of Australian Designed products into the China market.

It said it will continue to target a dividend payout ratio in the range of 50–60%. The Dividend Reinvestment Plan remains suspended until further notice.

The Beacon Lighting share price is up 45% over the past full year.

The post Beacon Lighting (ASX:BLX) share price shines on record profit results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 fantastic ASX growth shares named as buys this week
• 2 excellent international ETFs for ASX investors this month
• The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine
• ASX 200 drops, Redbubble soars, TWE falls

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/3k1vW6a

The S&P/ASX 200 Index (ASX: XJO) fell 0.5% today to 7,465 points.

Here are some of the highlights from the ASX:

Redbubble Ltd (ASX: RBL)

The Redbubble share price soared around 19% after the company’s FY21 result.

Redbubble reported that its marketplace revenue increased by 58% to $553 million, with gross profit rising by 66% to $223 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 930% to $53 million, whilst earnings before interest and tax (EBIT) was $39 million (up from a loss of $9 million).

Redbubble’s net profit after tax was $31 million, also up from a loss of $9 million. Operating cashflow increased from $47 million to $55 million.

Artist and customer numbers also increased, rising 54% and 40% respectively.

Redbubble said that it’s now cycling against strong prior period comparatives, particularly as mask sales contributed $57 million to marketplace revenue in FY21.

Excluding mask sales, Redbubble is expecting FY22 marketplace revenue to be slightly above FY21 underlying marketplace revenue. Whilst the first half of FY22 is expected to show a decline of sales, the second half is expected to show a “steady return” to year on year growth rates that will meet its medium-term goals.

Redbubble is going to make investments to improve the customer experience and grow the business.

Management said the business remains confident and excited about the medium and longer-term opportunity to grow strongly and extend Redbubble’s global market leadership as the largest marketplace for independent artists.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates also reported its FY21 report. The Treasury Wine Estates share price dropped 1.5% in response.

The ASX 200 share revealed that its FY21 net sales revenue fell 3% to $2.57 billion. But that represented 1.3% growth in constant currency terms. FY21 Earnings before interest, tax, SGARA and material items (EBITS) fell 0.4% to $510.3 million, with constant currency growth of 2.8%

Net profit after tax increased 1.8% to $250 million and went up 5.5% in constant currency. Earnings per share (EPS) came in at 34.7 cents, which was also growth of 1.8% in reported terms and 5.5% growth in constant currency.

The Asian division reported a 15% decline in EBITS to $205.4 million and an EBITS margin of 36.3% (a decline of 2.8 percentage points). Shipments to China “significantly” reduced after import duties were imposed on Australian wine. Mainland China EBITS declined $77.3 million in FY21. The impact was partially offset by continued growth across the rest of the region.

Treasury Wine Estates decided on a final dividend of 13 cents per share, an increase of 62.5% on the final dividend.

The Treasury Wine Estates CEO Tim Ford said:

In FY22, we enter a new phase for TWE under our brand portfolio divisional operating model, led by Penfolds, Treasury Premium Brands and Treasury Americas. Whilst it’s early days in the change program, it is already very clear to our teams that with each division focused on their unique strategic priorities and performance accountabilities, we are better positioned to take advantage of previously untapped growth opportunities across the globe. This is a truly exciting stage in our journey as we progress deliberately at pace towards our ambitions and goals.

Western Areas Ltd (ASX: WSA)

The Western Areas share price surged 13% after confirmed that it was in the early stages of talks with IGO Ltd (ASX: IGO).

Those discussions are about whether IGO, an ASX 200 share, will put forward a proposal to buy the Western Areas business. But the current talks are about the basis upon which engagement and due diligence between the parties could proceed.

But neither business could provide any assurance that a transaction would occur.

The IGO share price fell by 6% today.

The post ASX 200 drops, Redbubble soars, TWE falls appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine
• Here are 3 of the heaviest trading ASX 200 shares this Thursday
• Here are the top 10 ASX 200 shares today
• These ASX 200 bank experts are forecasting a bumpy ride for our economy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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/3mahE5Y

The CSL Limited (ASX: CSL) share price was back on form on Thursday.

The biotherapeutics giant’s shares ended the day 3% higher at $302.83.

Why did the CSL share price push higher?

Today’s gain by the CSL share price appears to have been driven by a broker note out of Morgans.

According to the note, the broker has retained its add rating and lifted its price target on the company’s shares by 8% to $324.40.

Based on the latest CSL share price, this price target implies potential upside of 7%.

What did Morgans say?

Morgans was pleased with CSL’s “solid” FY 2021 results, noting that it beat both on the top and bottom lines.

For the 12 months ended 30 June, CSL deliver a 9.6% increase in revenue to US$10,310 million and a 10% lift in net profit after tax to US$2,375 million. This compares to Morgans’ estimates of US$9,816 million and US$2,174 million, respectively.

The highlight for the broker was the company’s Seqirus business. It recorded strong sales and earnings growth thanks to increased demand for seasonal flu vaccines.

Morgans commented: “Seqirus was the standout, on strong demand for influenza vaccines, while Behring was more modest, as Albumin gains on transition to a direct China distribution and cost-outs were offset by Ig/Specialty/Haemophilia growth flattish to down.”

And while the broker notes that FY 2022 will be a transitional year and that plasma collection headwinds continue, it remains positive on the company.

“Improving plasma collections are a prelude to a steepening earnings trajectory, but timing is everything, with a lengthy manufacturing cycle (9-12mos), higher costs and ongoing COVID pandemic, adding uncertainty for a quick turnaround.”

“We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs,” it concluded.

The CSL share price is up 6% in 2021.

The post CSL (ASX:CSL) share price charges higher on bullish broker note appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: BHP Group, Domino’s, CSL
• What you need to know about the CSL (ASX:CSL) dividend dates in 2021
• Passive income your thing? These 3 ASX dividend shares just declared bigger payments
• Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today
• What is the outlook for the CSL (ASX:CSL) share price following FY21 results?

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 shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3gfnAXC

The Rio Tinto Limited (ASX: RIO) share price sunk today despite no market-sensitive news being released by the company.

At the final bell, Rio Tinto shares were at an 8-month low of $107.17, down a sizeable 5.73%. This means the company’s share price has lost almost 18% in the past week alone.

What’s happening with Rio Tinto?

Investors have been selling off Rio Tinto shares following the mining giant’s strong FY21 half-year result announced in late July.

A possible catalyst for the recent Rio Tinto share price weakness could be an issue with the Oyu Tolgoi mine in Mongolia.

According to an article in the Wall Street Journal, Rio Tinto has been accused of mismanagement at the mine. Allegedly, this has been the cause of a $1.4 billion cost overrun to build an underground pit at the giant copper site.

Rio Tinto said the cost blowout was attributed to challenging ground and geotechnical conditions encountered. However, this reasoning was rejected in a report commissioned by the owners of the Oyu Tolgoi mine.

Rio Tinto advised that it will review the 157-page report by the Independent Consulting Group. Once concluded, it will present its findings to the board of Oyu Tolgoi LLC.

Rio Tinto has an indirect interest in the mine through its 50.8% shareholding in Canadian-listed Turquoise Hill Resources. The remaining stake is held by Oyu Tolgoi LLC, of which Turquoise Hill Resources owns 66%, and the Mongolian government.

Further weighing down the Rio Tinto share price could be weakness in the iron ore spot price. The steel-making ingredient has dropped 5% in the past week and 30% in the past month after hitting record highs in May.

Rio Tinto share price snapshot

Over the last 12 months, Rio Tinto shares have gained just 5%, with year-to-date swinging the other way, down 5%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has travelled 21% higher since this time last year. For 2021, the ASX 200 is up almost 14%.

Based on today’s price, Rio Tinto commands a market capitalisation of roughly $39.7 billion, with approximately 371.2 million shares outstanding.

The post Why the Rio Tinto (ASX:RIO) share price plunged 6% today appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price slumps ahead of today’s results release
• How did the BHP (ASX:BHP) share price perform last reporting season?
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
• These were the worst performing ASX 200 shares last week
• Why AGL, Appen, CBA, & Rio Tinto shares are tumbling lower

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/3AXdCSm

The S&P/ASX 200 Index (ASX: XJO) has finished this Thursday in the red. At market close, the ASX 200 is down 0.5% to 7,464.6 points. But instead of dwelling on that number, let’s take a look at some of the heaviest treading ASX 200 shares today:

3 heavy-trading ASX 200 shares on Thursday

BHP Group Ltd (ASX: BHP)

Our first share to make the list today is ASX 200 mining heavyweight BHP, with 26.1 million shares bought and sold. The ‘Big Australian’ has had a shocker of a week this week. On Monday, the company was sitting pretty close to its all-time high at $53.90 a share. But today, BHP closed at just $44.67, having shed a nasty 6.35% this Thursday.

That move comes after the miner lost another 7% just yesterday – putting its week-to-week losses at a pretty depressing 14.3%. The steep slide today has likely pushed BHP shares to the top of the pile in terms of trading volume.

Scentre Group (ASX: SCG)

ASX Real Estate Investment Trust (REIT) Scentre is our second ASX 200 share to check out today. A hefty 26.6 million Scentre units have traded hands on the ASX boards today.

Since there is no major news or announcements out of the Westfield owner today, it’s likely that this high trading volume is the result of the Scentre unit price alone. Scentre units finished down 0.39% today to $2.55 each. However, the company had been bouncing around between $2.52 and $2.59 all day. It’s probably this volatility that has led to Scentre’s high trading volume.

Pilbara Minerals Ltd (ASX: PLS)

And last, but certainly not least in terms of trading volumes, we have ASX 200 lithium producer Pilbara Minerals. Pilbara is another ASX resources share that has had a week to forget. It’s lost around 9% of its value since last Thursday. Saying that, Pilbara still closed in the green, with the company finishing the day up 0.47% to $2.14 a share.

Even so, Pilbara was down as much as 2.8% earlier in the trading day before it made a remarkable recovery to its current level. As with Scentre, it’s probable that this share price volatility has propelled Pilbara to the top of the trading volume pile today, with 35.38 million shares changing hands.

The post Here are 3 of the heaviest trading ASX 200 shares this Thursday appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Redbubble soars, TWE falls
• What could delisting from the LSE mean for BHP shares?
• Here are the top 10 ASX 200 shares today
• These ASX 200 bank experts are forecasting a bumpy ride for our economy

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

from The Motley Fool Australia https://ift.tt/2VYGsDn

The Fortescue Metals Group Limited (ASX: FMG) share price has continued to tumble, down 6.11% to $20.14 at market close on Thursday.

Shares in the iron ore major have lost almost a quarter in value since its record $26.50 open just a few weeks ago on 29 July.

Iron ore and the Fortescue share price slide to 5-month lows

Iron ore spot prices have slumped to their lowest since March, in line with how Fortescue shares have been performing.

Chinese production mandates on its steel industry in efforts to curb output and reduce emissions has led to a dent in the iron ore market.

According to Mining.com, “Iron ore inventories at 45 ports in China increased by 260,000 tonnes last week to 127 million tonnes, data from Mysteel consultancy showed”, signalling that supply is outstripping demand.

It also flagged that with the Chinese Government “stepping up steel output cuts, iron ore could face increasing pressure”.

According to Market Index, iron ore prices closed at US$159.59/tonne on Wednesday, a 1-month decline of almost 30%.

Fortescue results are around the corner

Fortescue’s FY21 full year results are expected to land on Monday, 30 August.

Unfortunately, the post-earnings performance of peers such as BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) aren’t very reassuring.

In the case of Rio Tinto, its shares have tumbled 21% since the miner released its half-year results on 28 July.

The market appeared to be uninterested in its outstanding financial performance which included a 156% jump in underlying earnings to US$12.2 million, a 143% increase in interim dividend to $3.76 per share as well as a special fully franked special dividend of US$1.85 per share.

Foolish takeaway

Iron ore prices have surged from approximately US$80/tonne in early 2020 to record highs of US$230/tonne in May this year.

Surging prices have helped the Fortescue share price deliver a triple-digit return in 2020, whilst maintaining a generous double-digit dividend yield.

However, as iron ore prices continue to fall, investors may need to prepare for change.

The post Why the Fortescue (ASX:FMG) share price has plunged 6% to a 5-month low appeared first on The Motley Fool Australia.

More reading

• 2 ASX sectors to avoid like the plague
• How does the Fortescue (ASX:FMG) dividend compare to its sector?
• 7 traps to avoid right now when buying ASX shares
• Why are Fortescue Metals (ASX:FMG) shares down 14% in a month?
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

Motley Fool contributor Kerry Sun 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/37Y5jcC

The A2 Milk Company Ltd (ASX: A2M) share price has edged higher on Thursday as a trademark battle with Nestlé rages on.

A2 Milk share price lifts amid trademark stoush

Shares in the Kiwi dairy group closed 0.46% higher following media coverage of the ongoing battle for the A2 trademark.

According to an article in The Australian, A2 Milk is “stepping up its fight” with Nestlé. A2 Milk is reportedly appealing a decision from the Australian Trademarks Office to side with Nestlé over its own infant formula range containing the A2 protein.

A2 Milk’s initial challenge was rejected by the trademarks office after stating that it “failed to establish any grounds of opposition”.

The Kiwi dairy group, known for vigorously defending its intellectual property, has appealed the decision. It’s the latest legal battle that has drawn A2 in as it fights to protect its signature branding around the world.

One of the fundamentals at the root of these lawsuits is the chemistry of milk. Cow’s milk contains both the A1 and A2 beta casein proteins. However, A2 Milk removes the A1 protein to create its line of products.

According to the article, A2 Milk commented the following in its defence against Nestlé:

“This decision is based on scientific research that suggests that milk that is free from A1 protein has been associated with reduced symptoms in individuals who are dairy sensitive.”

It comes as Nestlé is rumoured to be considering a takeover of A2 Milk following its FY21 results release next week. The A2 Milk share price has plummeted 43.3% in 2021 as flagging China sales have weighed on earnings guidance.

Foolish takeaway

The A2 Milk share price edged higher on Thursday despite broader weakness in the S&P/ASX 200 Index (ASX: XJO). The benchmark Aussie index closed the day down 0.50% at 7,464.60 points.

The post A2 Milk (ASX:A2M) share price lifts amid trademark stoush appeared first on The Motley Fool Australia.

More reading

• Why the A2 Milk (ASX:A2M) share price has underperformed the ASX 200 in the last year
• Here are 3 ASX 200 share investors can’t leave alone today
• Here are the top 10 ASX shares today
• Who’s starting the week off as the biggest mover on the ASX 300 today?
• Why a2 Milk, AVZ, BHP, & GWA shares are charging higher

Motley Fool contributor Ken Hall 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 A2 Milk. 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/3k8CeB6