Category: Stock Market

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

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

The chatter calling for Amazon.com (NASDAQ: AMZN) to execute a stock split is diminishing, but that’s surprising. The stock continues to rise, making the arguments for a lower share price via a split all the more tantalizing.

There are also a couple of good reasons why Amazon should announce a stock split as soon as later this week. You might think these bookkeeping moves are silly zero-sum games, and that’s fair. However, a lot of other market watchers see an Amazon split as the key to attracting even more retail investors while also making life easier for options traders. Let’s see why Amazon could be the next major stock to declare a stock split.

Amazon is rocking

It’s good to be Amazon. The e-tail king was doing just fine before the pandemic shifted e-commerce into an even higher gear. The 38% increase in net sales that Amazon posted last year was its heartiest top-line gain in nine years.

Things aren’t slowing down in 2021. Revenue soared 44% during the first three months of this year.

Investors are paying attention. Amazon held up better than most growth stocks during the correction earlier this year. It enters this trading week within 3% of the all-time high it hit two weeks ago.

There are only three U.S.-exchange-listed stocks trading at higher price points than the roughly $3,700 that Amazon is fetching as of Monday morning. Amazon’s market cap is more than double those of the three higher-priced stocks combined. It’s time for a stock split.

The clock is rolling

Amazon reports its second-quarter results after market close on Thursday. Stock splits are often announced during an earnings release, whether the report itself is positive or negative.

Adding to the likelihood of a stock split is that CEO Jeff Bezos officially stepped down as CEO earlier this month. If new CEO Andy Jassy wants to break the mold, there is no easier move than declaring the stock split that Bezos never cared to execute.

A stock split is a zero-sum game. A single share of Amazon at $3,700 would be the same thing as 50 shares at $74. However, it’s not easy to trade options on a $3,700 stock. We’re not just talking about throwing speculators a bone, as there are plenty of conservative risk-management tools available for long-term Amazon investors through the options market.

Stock splits may not seem to matter as much as they did just a few years ago. Investors can buy fractional shares through a growing number of brokers. Zero-commission trading makes it easier than ever to buy a couple of shares at a time. However, there is still a natural attraction to low stock prices.

A lower stock price would also make Amazon a no-brainer addition to the Dow Jones Industrial Average the next time the archaic but still relevant index shakes up its 30 members. In short, you don’t have to be a fan of stock splits to see how an increase in retail and possibly institutional ownership can make Amazon even more valuable.

Your legacy begins now, Jassy. A stock split makes more sense than you probably think.

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

The post Stock split watch: Is Amazon next? appeared first on The Motley Fool Australia.

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Rick Munarriz owns shares of Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Rio Tinto Limited (ASX: RIO) share price is on track to finish the day higher. It appears the latest reports of production cuts in Canada isn’t slowing down the mining giant on Tuesday.

At the time of writing, shares in the multinational mining company are 1.99% higher at $132.70. Elevated iron ore and copper prices have helped Rio shares to achieve a gain of 27.6% over the past year.

Let’s take a closer look at what has instigated the company’s production cuts.

Union troubles lead to production cuts

Investors are buying up Rio Tinto shares today despite the latest news of production cuts at the company’s Canadian aluminium smelter.

According to a release, production at BC Works smelter in Kitimat, Canada will suffer a significant cut after the company failed to reach an agreement on a new collective labour agreement with a local union.

Production will be reduced to 35% of the smelter’s 432,000 tonne annual capacity. This is so it can operate safely under an essential services order granted by the BC Labour Relations Board.

Rio Tinto aluminium managing director of atlantic operations Samir Cairae stated:

Reducing production will have a significant impact on the business and community, but we are committed to taking the necessary steps to operate safely with a reduced workforce.

We have made every effort to reach a mutually beneficial agreement through negotiating in good faith over the past seven weeks, including proposing an independent mediator which was rejected by Unifor Local 2301. We will continue to look for longer-term solutions with the union and work closely with customers and suppliers to minimise disruptions.

Similarly, a reduced workforce is also in place at the Kemano hydro-power facility to ensure safe operations.

The Unifor Local 2301 union represents approximately 900 of the 1,050 employees at the smelter.

Rio Tinto share price on upcoming results

ASX-listed Rio’s half-year results are slated for release tomorrow. Investors might be squeezing in last minute in expectation of solid results.

However, the company recently noted iron ore shipments will be at the lower end of its guidance range. Despite this, the continued strength in iron ore prices appears to have maintained optimism towards the Rio Tinto share price.

The post Rio Tinto (ASX:RIO) share price rises despite aluminium production cuts appeared first on The Motley Fool Australia.

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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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With the S&P/ASX 200 Index (ASX: XJO) hitting a new all-time high today, there is understandably a lot of excitement on the markets this Tuesday.

It’s not just the ASX 200 either. Markets around the world are thriving. The US Dow Jones Industrial Average (INDEXDJX: .DJI) crossed 35,000 points for the first time ever last week. Ditto with the S&P 500 Index (INDEXSP: .INX) crossing 4,400 points.

Whilst it’s always fun and fuzzy to see markets at all-time highs, it might also be provoking the question of ‘where to from here’ for some investors out there.

After all, it was only a few months ago that investors were getting nervous. Both US and Australian government bond yields were rising and this was sparking concerns about future inflation — and the higher interest rates that normally come with it. But these concerns are well and truly off the boil.

Back in April, investors were getting nervous after the US 10-year government bond yield hit a post-COVID high of roughly 1.75% (it was around 0.55% in August 2020). But according to CNBC today, that yield stands far lower at 1.29%.

Lower rates fuel higher shares?

Could these lower rates be calming investors? Well, the strange thing is that although the ASX blue chips are pushing the ASX 200 to the all-time highs we see today, the rising tide has not lifted all boats.

Some ASX shares, such as Afterpay Ltd (ASX: APT), Xero Limited (ASX :XRO) and Zip Co Ltd (ASX: Z1P) are nowhere near their all-time highs today.

Afterpay was $160 a share back in February. Today, it’s going for under $103 a share. Xero hit $157.99 back in January, but is trading at just over $141 a share today. And Zip Co is down more than 50% from its own February all-time high at today’s pricing.

We see something similar happening over in the US. Sure, companies like Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Microsoft Corporation (NASDAQ: MSFT) are at, or near, all-time highs.

But other, ‘growthier’, companies like Zoom Video Communications Inc (NASDAQ: ZM), Tesla Inc (NASDAQ: TSLA), Palantir Technologies Inc (NYSE: PLTR) and Coinbase Global Inc (NASDAQ: COIN) are far from it.

So what do we make of this market disparity and volatility?

BlackRock says take advantage of volatility

BlackRock is the largest fund manager in the world. And according to a report in the Australian Financial Review (AFR) today, it sees some buying opportunities out there.

According to BlackRock analysis, the fund manager reckons any volatility that we may see as a result of inflation concerns or new COVID variants is hands down a buying opportunity going forward.

BlackRock predicts that the central banks around the world, including our own Reserve Bank of Australia (RBA), will be very slow to respond to any rise in overall prices. This, in turn, will keep “nominal bond yields lower and real rates negative – a positive for risk assets [read shares]”.

Here’s some more of what it said:

Market volatility is on the rise, as worries about new virus strains have been exacerbated by stretched positioning and light summer trading. Recent swings in market sentiment reflect the unusually wide range of potential outcomes beyond the current economic restart, in our view.

Market overreactions may create opportunities to readjust portfolios to a pro-risk stance as we maintain high conviction in our new nominal investment theme that implies low real yields.

So long story short, BlackRock believes that rates will stay low for some time and this will inevitably support rising share markets as a result. By extension, it also implies that any short-term volatility is a buying opportunity through this lens.

Something to keep in mind if you’re getting nervous about the ASX 200 at an all-time high!

The post World’s largest fund manager says ASX volatility a great buying opportunity appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Coinbase Global, Inc., Tesla, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, Palantir Technologies Inc., Tesla, Xero, ZIPCOLTD FPO, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Zoom Video Communications. 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 Service Stream Limited (ASX: SSM) share price is gaining today following the opening of the company’s retail entitlement offer.

Service Stream released its retail offer booklet before the ASX opened this morning.

As part of the retail offer, eligible Service Stream shareholders will be able to purchase 1 share for every 3 shares they already own, paying 90 cents per share for the extra holding.

Right now, the Service Stream share price is 94 cents – 1.08% higher than its previous close.

Service Stream is a provider of telecommunication and network services.

Let’s take a closer look at today’s news from Service Stream.

Retail entitlement offer

The Service Stream share price is gaining today following the company announcing its retail entitlement offer was open as of 10am this morning. 

The retail entitlement offer is the final piece of the company’s capital raising puzzle. It follows a $130 million institutional entitlement offer and placement that successfully closed on 22 July.

The retail entitlement offer is expected to raise another $55 million. It’s set to close at 7pm on 9 August.

To be eligible for the retail entitlement offer, Service Stream shareholders must have been a registered shareholder as of 23 July and live in Australia or New Zealand.

The company is raising the cash to purchase Lendlease Group‘s (ASX: LLC)  non-core services business for $310 million.

The Lendlease Services business provides services across the telecommunication, utilities, and transport sectors.

Service Stream’s acquisition of Lendlease Services was announced on 21 July.

Service Stream share price snapshot

The Service Stream share price is badly in need of today’s gains.

Right now, it is 47% lower than it was at the start of 2021. It has also fallen 48% since this time last year.

The company has a market capitalisation of around $381 million, with approximately 416 million shares outstanding.

The post Here’s why the Service Stream (ASX:SSM) share price is gaining today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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

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The market may be pushing higher today but the Xero Limited (ASX: XRO) share price hasn’t been able to follow its lead.

In afternoon trade, the cloud accounting and business platform provider’s shares are down 1.5% to $141.65.

Why is the Xero share price under pressure today?

The Xero share price has come under a spot of pressure today following the release of a broker note out of Macquarie Group Ltd (ASX: MQG).

According to the note, the broker has downgraded the company’s shares to an underperform rating and held firm with its $130.00 price target.

Based on the current Xero share price, this implies potential downside of 8% over the next 12 months.

What did the broker say?

The note reveals that Macquarie made the move largely on valuation grounds. The broker doesn’t believe that its growth outlook warrants its shares trading on such lofty multiples. It would prefer to see them trading on fairer multiples before becoming more positive.

The reason Macquarie isn’t as bullish on Xero’s growth outlook as some analysts is due to its belief that the company is running out of room to grow in the ANZ market.

Macquarie notes that Xero now has a 53% share of the small to medium sized business market in the region. In light of this, it feels that its organic subscriber growth in the market will slow to the low single digits in the coming years.

This is disappointing because the lifetime value of its ANZ subscribers is more than double that of its international subscribers.

What do others think?

One broker that doesn’t appear to agree with Macquarie is Goldman Sachs. It recently retained its buy rating and lifted its price target to $165.00.

Based on the latest Xero share price, this implies potential upside of 27% over the next 12 months.

Goldman doesn’t appear concerned that its ANZ growth will slow. It is expecting ANZ EBITDA to increase 142% between FY 2022 and FY 2030 from NZ$512 million to NZ$1,225 million.

Time will tell which broker has made the right call.

The post Xero (ASX:XRO) share price lower following broker downgrade 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 shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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 Vmoto Ltd (ASX: VMT) share price is in the green today following a business update on its second quarter performance.

At the time of writing, the electric-powered scooter manufacturer’s shares are up 2.74% at 37.5 cents, after earlier reaching an intraday high of 39 cents.

What’s driving the Vmoto share price higher?

Investors appear pleased with the company’s latest release, sending Vmoto shares higher.

According to the announcement, Vmoto stated it delivered strong operational and commercial performance for the second quarter of FY21.

For the 3 months ending 30 June, the company achieved sales of 7,854 units, reflecting a 23% increase on the prior corresponding period. International sales accounted for 7,503 units with Vmoto experiencing strong momentum in overseas markets. Surprisingly, just under 5% of units were sold in China, indicating significant growth runway.

The company declared a healthy cash balance of $16.7 million with no bank debt. The group noted that the strong cash position allows it to pursue revenue-generating initiatives.

In addition, Vmoto recorded 9,636 units on its order book. This comes after the company secured and delivered the 5,904 units to Greenmo Group during the first half of FY21.

Pleasingly, the company expects sales to continue to increase from both new and existing customers in H2 FY21.

A number of international distributors were appointed for the warehousing, distribution, and marketing of its B2C range of electric vehicles. These included distributors across Indonesia, Mauritius, Bolivia, Czech Republic, Brazil, Cayman Islands, and Azerbaijan.

Vmoto also supplied samples and is engaged in discussions with potential B2B and B2C distributors and customers around the world. Its biggest markets could be Mexico, Pakistan, Russia, Singapore, South Africa, Spain and the United States, along with others.

About the Vmoto share price

It’s been a volatile 12 months for Vmoto shares, down almost 22%. The company’s share price appears to have been hampered by the ongoing impact of COVID-19, forcing restrictions on movement.

At today’s price, Vmoto has a market capitalisation of around $104 million with approximately 278 million shares on issue.

The post Why the Vmoto (ASX:VMT) share price is scooting today 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 Archtis Ltd (ASX: AR9) share price is down today, though rebounding strongly from earlier losses. At time of writing Archtis shares are down 2.94% after earlier posting losses of more than 7%.

Below, we take a look at the ASX cyber security company’s quarterly update for the quarter ending 30 June (Q4).

What quarterly update did Archtis report?

Archtis’ share price remains down at time of writing despite the company reporting a record-breaking quarter.

According to the release, total unaudited revenue for Q4 in the 2021 financial year came in at $1.25 million. That’s an increase of 80% on Q3 revenue. It’s also up 1,289% from Q4 in the 2020 financial year, when revenue came in at $162,000.

Archtis said the leap in revenue was mostly thanks to a 39% increase in annual recurring licensing revenue, as well as consulting services derived from its Australian Department of Defence contract.

The innovative software developer also realised an 86% increase in gross profits quarter-on-quarter, to $1.48 million, up from $797,000 in Q3.

With more money going into sales and marketing, operating expenses for the quarter were $2.3 million. This was up 8.6% from the prior quarter. As at 30 June, the company has a cash balance of $12.7 million, compared to $12.0 million in Q3.

Commenting on the results, Archtis’ CEO Daniel Lai said:

Archtis delivered a strong record-breaking quarter. We set out with a plan to scale the business through the expansion of a global sales distribution network, increased market awareness and technology-leading product innovation. This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts and an increasing recurring licensing business.

The company credited the strong growth to some large new customer wins as well as renewals across government agencies, defence contractors and corporations around the world.

Archtis share price snapshot

The Archtis share price has gained 43% over the past 12 months, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date the Archtis share price is up 6%.

The post The Archtis (ASX:AR9) share price slides on quarterly update 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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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

While Tesla (NASDAQ: TSLA) stock has been a big winner over the last year and a half, it’s actually down about 6% year to date, underperforming the overall market. That is one reason investors are awaiting the company’s second-quarter results due after the closing bell today. That anticipation has Tesla shares trading about 3% higher Monday, as of 1 p.m. EDT.

So what

The leading electric car company’s second-quarter earnings report comes on the same day that a closely watched potential rival began trading publicly. Lucid Motors, which expects to deliver its first luxury electric sedans later this year, is now listed on the Nasdaq stock market. But for today, investors are focused more on what Tesla will say later this afternoon.

Now what

Tesla’s second-quarter report comes after the company previously announced it produced more than 206,000 vehicles in the three months ended June 30. That’s more than twice the 82,272 vehicles the company manufactured in 2020’s second quarter. Analysts think that large increase helped the company generate record revenue and profits in the second quarter.

Expectations are for revenue to soar to about $11.4 billion, compared to $6 billion in the year-ago period. The average analyst estimate is for profit of $1.20 per share, according to data from MarketWatch.

Tesla investors will also be watching how Lucid will perform once it ramps up production. The Lucid Air sedan is expected to be the first electric vehicle to provide a range of more than 500 miles, and could potentially challenge Tesla’s Model S domination of the high-end electric car market. But for today, the upcoming financial report this afternoon is what investors are looking forward to.

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

The post Why Tesla stock bounced ahead of earnings appeared first on The Motley Fool Australia.

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Howard Smith owns shares of Lucid Motors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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The Zip Co Ltd (ASX: Z1P) share price has been volatile in 2021 so far and now there’s a question of whether it’s good value or not.

The buy now, pay later business has been down to $6.70 this year, but it has been as high as almost $14. So, it has seen a hefty decline since February 2021.

Last week the company gave an update for its FY21 fourth quarter.

The numbers

It reported record group quarterly revenue of $129.9 million, up 104% year on year. Zip pointed to record monthly revenue in June, annualising at $537.2 million.

Zip has seen record quarterly transaction volume of $1.8 billion, up 116% year on year. There were also record transaction numbers for the quarter of 14.2 million (up 230% year on year).

Customer numbers increased by 87% year on year to 7.3 million.

Zip is continuing to executive on its global strategy, agreeing to require the remaining shares in both Twisto Payments (in Europe) and Spotii (in the Middle East). The quarter also saw Zip launch organically into Canada and Mexico.

The business revealed very strong growth in the US. American revenue improved by 280% to $64.3 million, transaction values increased 247% to $857.1 million and US transaction numbers went up 250% to 4.9 million. Revenue as a percentage of total transaction value (TTV) was maintained at 7%, continuing to deliver “market-leading” unit economics.

In its first full quarter of trading, the Zip UK segment saw revenue of $1 million, with a transaction volume of $13.9 million.

‘Zip Business’, which is focusing on small businesses, saw revenue growth of 39% quarter on quarter to $3.2 million. That was on volume of $38.7 million, an increase of 79% quarter on quarter (or 430% year on year).

Zip managing director and CEO Larry Diamond said:

We are now a truly global player with a presence in 12 months, and this is a real point of difference as we target global retailers and fulfil our mission to become the first payment choice every day.

We believe Zip can become the most fair and responsible brand in the world, on the side of merchants and consumers.

Is the Zip share price a buy or not?

There are very differing opinions about the buy now, pay later business.

Citi is very positive on the business, with a buy rating and a price target of $10.25. That suggests Zip shares could rise around 50% over the next 12 months. The ability to shop anywhere Visa is accepted with Quadpay in the US offers a good positive for the broker.

But there’s also the broker Macquarie Group Ltd (ASX: MQG) with sell rating and a price target of $6.15. That suggests a decline of almost 10% over the next 12 months. The broker isn’t sure about Zip’s move to change the name of Quadpay to Zip considering it’s the name Quadpay that consumers know. The broker is also concerned about rising competition in the US.

The post Is the Zip (ASX:Z1P) share price a buy or a sell? appeared first on The Motley Fool Australia.

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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 shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.

But which shares should you consider? Two lithium miners that could be worth considering are listed below. Here’s why they are highly rated:

Galaxy Resources Limited (ASX: GXY)

The first ASX mining share to consider is Galaxy. It is a leading lithium producer that owns the world class Mt Cattlin operation in Western Australia. It also has the James Bay asset in Canada and Sal De Vida asset in Argentina.

In addition, Galaxy is on the verge of merging with rival Orocobre Limited (ASX: ORE). It is a lithium miner with operations in Argentina. This includes the Olaroz Lithium Project in the Jujuy Province of northern Argentina and Borax Argentina in the Salta-Jujuy region.

If the merger goes ahead as planned, management believes it will create a new force in the global lithium sector. The merged entity will also be the world’s fifth largest lithium chemicals company with a diversified production base and exciting growth platform. Management also sees opportunities to unlock significant synergies in the future.

Macquarie is very positive on Galaxy as well. Last week it put an outperform rating and $4.90 price target on the company’s shares. It also put an outperform rating and $8.60 price target on Orocobre’s shares.

Mineral Resources Limited (ASX: MIN)

Another ASX mining share to look at is this mining and mining services company.

Mineral Resources owns the Wodgina operation. It is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. The company also has the Mt Marion Lithium project in its portfolio. This project is operated by Mineral Resources under a life-of-mine mining services contract and is jointly owned by it and Jiangxi Ganfeng Lithium.

Another commodity the company has exposure to its iron ore. This is through the Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Demand for these two commodities is very strong at the moment. As a result, they are commanding very high prices, which bodes well for Mineral Resources’ profits and dividends.

It is for this reason that Macquarie is very positive on Mineral Resources. The broker currently has an outperform rating and $75.00 price target on its shares.

The post Analysts rate these ASX lithium miners as buys appeared first on The Motley Fool Australia.

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• Here’s why the Mineral Resources (ASX:MIN) share price is up 27% in the last month
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• Brokers name 3 ASX shares to buy today
• Why BHP, Damstra, Galaxy, & Piedmont Lithium shares are racing higher
• Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday

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

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