The Liontown Resources Ltd (ASX: LTR) share price is having a tough finish to the week.

In afternoon trade, the lithium developer’s shares are down 7.5% to $1.26.

This has been driven by the broad weakness in the lithium industry today, which has overshadowed the release of the company’s half-year results.

Let’s now take a look at how the company performed during the half.

Liontown share price tumbles on results day

Firstly, as Liontown is still pre-revenue, its results look very different to its revenue-generating peers like Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS).

For the six months ended 31 December, the company reported a net loss before tax of $31 million. This includes interest revenue of $8.5 million, corporate and administrative costs of $20.7 million, share based payments of $3.9 million, and exploration and evaluation expenditure of $6.6 million.

Management notes that its corporate and administrative expenses increased $14.3 million due partly to an increase in personnel expenses in line with its increased headcount. In addition, there are costs related to its proposed scheme of arrangement with Albemarle Corp (NYSE: ALB), which was terminated on 16 October, as well as system development and implementation costs necessary for the commencement of operations.

Liontown’s net cash used in investing activities was $325.6 million and its net cash from financing activities was $555.8 million for the six months. The latter includes drawdowns from the Ford facility ($181.3 million) and the proceeds from the issue of shares ($389.9 million), offset by share issue costs ($11.2 million).

This ultimately led to Liontown ending the period with cash and cash equivalents of $516.9 million. Since then, it has announced a $550 million debt facility agreement with a syndicate comprising leading domestic and international commercial lenders, and government credit agencies.

This is expected to take Liontown through to production and positive cash flow.

Speaking of which, management has confirmed that the Kathleen Valley Lithium Project remains on schedule for first production in mid-2024 and is in line with the updated $951 million capital cost estimate.

The Liontown share price are down 14% over the last 12 months.

The post Liontown share price tumbles 7% on half-year results appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX lithium shares being annihilated on Friday?
• Could Liontown shares really rally another 32%?
• Here are the top 10 ASX 200 shares today
• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• Liontown share price leaps 10% on fresh $550 million funding

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Mxs9AyL

It’s hard to describe what has happened on the ASX boards today as anything other than a full-on meltdown. At present, the S&P/ASX 200 Index (ASX: XJO) has retreated by a sobering 0.7% after falling as much as 1.6% earlier this morning. That makes what is currently going on in the ASX real estate investment trust (REIT) space all the stranger.

Whilst most ASX 200 blue chips are nursing heavy losses today, REITs are, mostly, on fire. This space is currently one of the best-performing sectors on the ASX, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) up a healthy 1.46% at the time of writing.

What’s more, we’ve seen several real estate investment trusts even clock fresh new 52-week highs today.

Scentre Group (ASX: SCG) units touched a new high of $3.34 this afternoon, and are currently up 1.22% at $3.3 each.

Stockland Corporation Ltd (ASX: SGP) units reached up to a new high of $4.83 around the same time. Ditto for Centuria Industrial REIT (ASX: CIP), which vaulted up to $3.56 a unit in the past hour.

We’ve seen similar moves from HMC Capital Ltd (ASX: HMC), Charter Hall Group (ASX: CHC), and Dexus Industria REIT (ASX: DXI).

So how can we explain this apparent stock market paradox?

How are ASX REITs defying the meltdown to hit new highs?

Well, it’s fairly difficult to pinpoint what’s going on here. there are no obvious catalysts that can explain why investors seem to be flocking out of other ASX 200 shares and into REITs this Friday. Real estate investment trusts are often some of the ASX’s most cyclical shares, so it’s a real headscratcher.

There are a couple of things we can point to though.

Firstly, we got some news today out of Bunnings REIT BWP Trust (ASX: BWP).

In January, we covered BWP’s bid for fellow Bunnings landlord Newmark Property REIT (ASX: NPR). This bid, consisting of 0.4 BWP units offered for every Newmark unit, saw the Newmark unit price rocket 40% at the time.

Yesterday, BWP announced that it intends to shift its offer to an “unconditional” one as of 21 March, and extended its offer period to 12 April.

Given the rapturous reception of its original offer, it’s possible that this news is having an impact on the REIT scene today.

Another factor we can point to is the recent broker love that many REITs have been on the receiving end of.

Earlier this week, my Fool colleague James covered the buy ratings that two different ASX brokers gave to Rural Funds Group (ASX: RFF) and Stockland.

Then last week, my colleague Bronwyn also covered similar buy ratings from different brokers again, this time covering Ingenia Communities Group (ASX: INA), Arena REIT No 1 (ASX: ARF) and Charter Hall Group.

Perhaps these recent and glowing reviews of these ASX REITs have convinced investors of their safe haven potential this Friday.

Whatever the reason for today’s market defiance from the ASX REIT space, no doubt its investors will be delighted.

The post How are ASX REITs smashing 52-week highs despite today’s market meltdown? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy this ASX 300 stock for a 14% gain and 5.5% dividend yield
• 3 high-yield ASX dividend shares that pay cash every quarter
• $200 million sell-down among ASX 300 insider sales and purchases over past week
• Buy BHP and these ASX dividend shares
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/USzYCm1

To be fair, most ASX shares aren’t having a very pleasant day this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has slumped by a nasty 1.4%. But ASX lithium shares are really taking a hit during today’s trading.

Take the Pilbara Minerals Ltd (ASX: PLS) share price. Pilbara shares are currently nursing a horrid loss of 5.64% down to $3.94 a share.

Liontown Resources Ltd (ASX: LTR) has been hit even harder, with its shares down 7.33% to $1.26 each. Core Lithium Ltd (ASX: CXO) hasn’t been punished as much, but has still copped a 5.26% hit to 18 cents a share. But Arcadium Lithium plc (ASX: LTM) is enduring a 7.07% sell-off to $6.83.

So what on earth is scorching the ASX lithium share space so brutally this Friday?

Why are ASX lithium shares in a Friday freefall?

Well, it’s hard to say. We did get some news out of Pilbara yesterday that could be having an impact on today’s trading. Pilbara informed investors yesterday afternoon that it was able to secure a pre-action bid of US$1,106 per dry metric tonne for a 5,000-tonne shipment of lithium spodumene concentrate.

That’s an improvement on what pricing the company has been able to secure in recent months amid the ongoing slump in global lithium markets. As such, this news is unlikely to be a major catalyst in today’s ASX lithium share sell-off.

So we can probably point to a simple reluctance of ASX investors to hold lithium shares during a broad-market route to explain today’s events in the lithium space.

Lithium shares tend to be amongst some of the most volatile shares on the ASX. Before the recent slump in lithium prices, these shares tended to rocket when the broader markets were rising, and crater when things went the other way.

Overnight on the US markets, we saw American lithium stock Albemarle Corporation (NYSE: ALB) shares shed a hefty 4.39% of their value down to US$119.89 a share. This probably helped set the mood for ASX lithium stocks this morning too.

Given concerns that interest rates might not be coming down as soon as investors hope today, it’s no real surprise to see ASX lithium shares cop a beating.

No doubt investors will be hoping next week proves to be kinder to this corner of the share market.

The post Why are ASX lithium shares being annihilated on Friday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today
• Are short sellers of Pilbara Minerals stock about to get stung?
• Could Core Lithium shares really fall another 40%?
• Core Lithium shares: Is it time to cut and run?
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/YN0gGuk

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aussie Broadband Ltd (ASX: ABB)

According to a note out of Ord Minnett, its analysts have upgraded this broadband provider’s shares to a buy rating with a trimmed price target of $4.16. This follows a selloff on Thursday in response to news that its white label agreement with Origin Energy Ltd (ASX: ORG) has been terminated after the two parties failed to agree on terms. While the broker has reduced its earnings estimates to reflect the unexpected loss of the contract, it still believes the company can continue to grow at a very strong rate. In fact, it is expecting double-digit earnings per share growth long into the future. As a result, it believes this weakness has created a buying opportunity. The Aussie Broadband share price is trading at $3.54 on Friday afternoon.

BHP Group Ltd (ASX: BHP)

A note out of Citi reveals that its analysts have upgraded this mining giant’s shares to a buy rating with an unchanged price target of $46.00. The broker made the move on valuation grounds follow a rather sharp pull back in the Big Australian’s share price in recent weeks. It feels this has dragged its shares down to an attractive level for investors to snap them up today. This certainly could be the case for income investors, with Citi forecasting dividend yields of around 6% in both FY 2024 and FY 2025. The BHP share price is fetching $42.38 today.

Bega Cheese Ltd (ASX: BGA)

Analysts at Bell Potter have retained their buy rating and $5.00 price target on this diversified food company’s shares. The broker believes that the recent ABARE commodities report has been a positive for Bega Cheese’s ingredients business and feels that this upside potential is underappreciated by the market. It notes that farmgate pricing could be “a game changer” for the company. This is because if prices fall as much as forecast, it would represent a $55 million to $60 million reduction in milk costs for the company. In addition, it highlights that its shares are still trading at a material discount to global dairy and FMCG peers. The Bega Cheese share price is trading at $4.05 on Friday.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX 200 shares at risk from the slowdown in China
• What’s going so wrong for ASX 200 shares on Friday?
• 5 things to watch on the ASX 200 on Friday
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• Why are ASX copper shares having such a bumper day?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eq6oZPc

ASX 200 shares are trading lower on Friday with the S&P/ASX 200 Index (ASX: XJO) down 1.38%.

In the year to date, the benchmark index has delivered a slightly negative performance, down 0.29%.

One of the factors dragging it down is a significant drop in the share prices of the three major iron ore producers.

This is because these mega miners make up a significant proportion of the ASX 200 market cap.

How are ASX 200 iron ore shares performing in 2024?

In the year to date:

• Rio Tinto Ltd (ASX: RIO) share price is down 15.4%
• The BHP Group Ltd (ASX: BHP) share price is down 16.5%
• The Fortescue Metals Group Ltd (ASX: FMG) share price is down 19%.

No prizes for guessing why.

As we all know, the iron ore price has fallen heavily in 2024 so far.

This is due to lower demand in China, which is historically the world’s biggest iron ore consumer, importing 71% of global iron ore exports in 2022.

That’s a big problem for us given we are the world’s biggest iron ore exporter, accounting for a 57% share of global exports in 2022.

In the year to date, the iron ore price has fallen from about US$142 per tonne to about US$105 per tonne today.

That’s a 26% decline in just two-and-a-half months.

This isn’t good for the three major iron ore miners, who are the key exporters of Australia. A falling iron ore price impacts the earnings and share prices of these ASX 200 giants.

One of the reasons the iron ore price is falling is because China’s property market is pretty much tanking.

What’s going on in China’s property market?

Average home sale prices rose almost 350% in the 15 years through to 2021 “and remain at significantly stretched levels relative to incomes” today, according to the International Monetary Fund.

The property boom occurred due to strong investment-driven demand from households, driven by massive savings, a mortgage lending boom, and limited investment alternatives.

Developers took on more and more debt to expand construction quickly, and local Chinese governments became increasingly reliant on property activity such as land sales to fill their coffers.

The IMF said real estate has become “ubiquitous as a form of collateral and household wealth” in China.

But now the market has changed.

The COVID recovery in China has been incredibly subdued, and in recent months, President Xi has sought to prick the property bubble by telling his people that homes are for living, not financial speculation.

Debt-laden developers are defaulting. In January, a Hong Kong court directed China’s once-largest developer, Evergrande, to liquidate because it couldn’t restructure $300 billion in liabilities (Reuters).

When developers are in trouble, half-built apartments sit dormant, demand for steel falls — as does demand for iron ore to make steel — and home values fall as people lose confidence and stop investing.

IMF economist Henry Hoyle notes that Chinese home prices have decreased only modestly, but this is partly because some cities have limited price declines through rules and guidance on listing prices.

Despite these controls on prices, the more important factor is that there is fear in the market. Arguably, that has as much impact on sentiment as falling prices.

We can see this in falling sales volumes. Hoyle says home buyers are fearful that developers don’t have the funding to complete projects anymore, and they fear prices will decline in the future.

Broader effects of falling home values on the Chinese economy

While Australia and other Western countries continue to battle high inflation, China is in deflation.

As the Wall Street Journal reported, Chinese consumer prices fell at their fastest rate in more than 14 years in January.

Falling property prices are likely contributing to deflation through the psychological ‘wealth effect’, which means when the value of people’s homes falls, they stop spending because they feel poorer.

Lower prices mean businesses aren’t making as much money. That means they need less labour, and can pay lower wages. In January, Bloomberg reported the biggest drop in new hire salaries in China on record.

But here’s the scariest stat relating to China’s property market downturn and its impact on the economy and also ASX 200 iron ore shares.

Property is 20% of China’s GDP

The IMF says property-related activities accounted for an estimated 20% of China’s gross domestic product (GDP) during its recent decades of rapid growth.

In a report published last month, the IMF explained:

About two thirds of this comes from real estate’s imputed portion of construction activity, and its upstream linkages to producers of metal, glass, cement, and the other goods and service inputs that are used to build housing.

Another third comes from real estate services, a sizeable portion of which comes from services connected to the stock of existing housing, for instance leasing and property management.

The impact on GDP could be larger due to declining demand for housing-related goods (furniture, appliances) as well as due to wealth effects.

Basically, 20% of China’s economy is in trouble right now, and that ain’t good for ASX 200 iron ore shares.

Trading Economics notes the recent National People’s Congress in China “failed to provide any significant support for the property market” and there’s been a slow start to China’s construction season this year.

Outlook for the iron ore price

As we reported yesterday, Goldman Sachs expects an average iron ore price of US$110 a tonne this year.

It is forecasting a fall to US$95 a tonne in 2025, US$93 a tonne in 2026, and US$92 a tonne in 2027.

Given the strong connection between the prices of ASX 200 iron ore shares and the iron ore commodity price, this appears not to bode well.

The post 3 ASX 200 shares at risk from the slowdown in China appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers name 3 ASX shares to buy now
• What’s going so wrong for ASX 200 shares on Friday?
• Buy Rio Tinto and these ASX dividend shares now
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• Why are ASX copper shares having such a bumper day?

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/wNruA62

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week deep in the red. At the time of writing, the benchmark index is down a sizeable 1.1% to 7,631.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 5.5% to $3.94. This follows broad weakness in the lithium industry on Friday, which has seen most lithium shares record sizeable declines. Not even an announcement that revealed an improvement in the price Pilbara Minerals is receiving for its lithium spodumene concentrate has been able to stop the rot today.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is down 20% to 55.5 cents. Investors have been selling this graphite producer’s shares after it announced the completion of another capital raising. Syrah has successfully completed a fully underwritten institutional placement and the accelerated institutional component of its 1 for 10.2 pro rata accelerated non-renounceable entitlement offer. This has raised $80 million at a fixed price of $0.55 per new share. That represents a 21% discount to its last close price.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down 6% to 72 cents. This follows news that after the gambling company’s CEO, Adam Rytenskild, has resigned. This has been caused by claims of “inappropriate and offensive language used by Mr Rytenskild in the workplace.” Though, the outgoing CEO said that he didn’t “recall making the alleged comment.” Maritana Partners has commenced a global search for a new managing director and CEO. In the meantime, the company’s chair, Bruce Akhurst, has agreed to take on additional duties as executive chairman with immediate effect.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 2% to $25.98. Investors have continued to sell Westpac and other ASX bank shares on Friday. The catalyst for this is likely to have been a broker note out of Macquarie on Thursday. Its analysts called time on the banking sector rally and put the equivalent of sell ratings on all of the big four banks. Macquarie now has an underperform rating on Westpac’s shares with a $26.00 price target. This is broadly in line with where its shares trade following two sessions of declines in a row.

The post Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?
• Why is this ASX 300 battery materials stock crashing 20% today?
• This ASX 200 stock is sinking after its CEO quit amid ‘inappropriate and offensive language’ probe
• Are short sellers of Pilbara Minerals stock about to get stung?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1rfgxzk

Most S&P/ASX 200 Index (ASX: XJO) oil stocks have lost ground over the past six months.

But not Ampol Ltd (ASX: ALD).

Despite retracing slightly from the 28 February record closing high, the Ampol share price is up an impressive 14% since 15 September. That’s almost three times the 5% gains posted by the ASX 200 over this same period.

As you’re likely aware, Ampol supplies Australia’s largest branded petrol and convenience network. The company also refines, imports and markets fuels and lubricants.

So, what’s sending this ASX 200 oil stock to new highs?

And has the window of opportunity closed, or is there still time to buy?

Why did the Ampol share price hit record highs?

Investors have been bidding up the Ampol share price over the past 12 months as the company continues to increase its earnings and sales volumes.

For its full 2023 results, released on 19 February, the ASX 200 oil stock reported a 2% year on year increase in earnings before interest and tax (EBIT) – excluding significant items – which reached $1.30 billion.

And the company’s total sales volumes leapt 17% from 2022 to an all-time high of 28.4 billion litres.

Also hitting new record highs, and pleasing passive income investors, was Ampol’s final fully franked dividend of $1.80 a share. That was up 16% from the $1.55 a share final dividend for 2022, which was itself a new record high at the time.

The ASX oil stock also paid an interim dividend of 95 cents per share for a full-year payout of $2.75 a share.

At the current share price of $38.36, Ampol stock trades on a fully franked trailing yield of 7.2%.

Is it too late to buy the ASX 200 oil stock?

The Ampol share price has slipped 2.7% since hitting the all-time closing high of $39.42 on 28 February.

But I don’t see any reason why it can’t reset that record high, and then some, in the months ahead.

With solid earnings and sales growth, and ongoing growth in dividends, there’s a lot to like about this ASX 200 oil stock.

And with Australia’s population growing rapidly amid surging migration levels, the domestic demand growth picture looks good.

If the Aussie economy can avoid a recession amid higher interest rates to tamp down inflation, I believe Ampol can deliver more earnings growth ahead.

And if we do dip into a recession, much of the company’s revenue is derived from fuel sales. While fuel demand would likely dip in a recession, most Aussies will still need petrol or diesel to get around.

And for those who’ve made the transition to electric vehicles, Ampol is also continuing to extend its EV charging network.

The evolving ASX oil stock forecasts it will have 300 charging bays in Australia and 150 charging bays in New Zealand by the end of 2024.

The post This soaring ASX 200 oil stock is near all-time highs. Is it too late to buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is this surging ASX 200 stock an under-the-radar buy?
• Here are the top 10 ASX 200 shares today
• Why Ampol, Calix, Collins Foods, and Propel shares are tumbling today
• Why is the Ampol share price tumbling 5% on Friday?
• How I’d invest $250 a month in ASX dividend shares to target a $24,000 annual second income

Motley Fool contributor Bernd Struben 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/1ZnNVXH

I’ve owned National Australia Bank Ltd (ASX: NAB) shares for many years now. In fact, NAB was one of the first ASX 200 shares I ever bought. But this March, I’m seriously considering selling my NAB stock. 

Normally, I’m an investor who hates selling my shares. For me, selling doubles the mental efforts of stock market investing. It’s hard enough to find a company that you’d like to buy as well as the right share price to buy it at. And adding the worry over what price you’d sell at is an unnecessary increase in mental stress in my view.

Instead, I try to emulate the Warren Buffett maxim that “our favourite holding period is forever”.

However, this doesn’t always go to plan. I’ve had to sell many of my past investments before, usually due to miscalculations of a company’s intrinsic quality on my behalf.

I don’t believe I’ve made a mistake in buying and owning NAB shares for the many years that I have. I’ve enjoyed some decent capital appreciation on my NAB stock since my first purchase. As well as the generous, fully franked dividend income one expects from an ASX 200 bank share, of course.

Why am I considering selling my NAB stock then?

So my increasing discomfort with owning NAB stock right now stems from valuation concerns. The NAB share price has had a stellar few months. As recently as June last year, this ASX 200 bank was going for around $25 a share.

In the past few weeks though, those same shares have crashed through a series of new 52-week highs, most recently last Friday’s $35.12. That means that from June 2023 to March 2024, I’ve enjoyed a gain of almost 40%. Plus dividends.

That is a highly unusual return for an ASX bank stock. It’s quite common for most ASX banks to spend years sitting at the same share price. Check that out for yourself below:

Every time NAB stock has hit new 52-week highs in the past, it has, more often than not, come down to earth. Sometimes dramatically so. Could this time be different? Possibly. But I doubt it.

NAB, like all ASX banks, is a cyclical share. Investors have enjoyed far more meaningful returns in the past from dividends than capital growth.

So if I sell NAB shares this March, and then buy them back at a future point for a lower share price (and higher starting dividend yield), I’m guessing I’d probably be better off than just holding them.

As I began by stating, I don’t like selling my ASX shares. But NAB’s new highs have certainly got me questioning that wisdom.

The post Why I might be selling my NAB stock in March appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX investors so obsessed with dividends?
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• Buyer beware! Why Macquarie just downgraded the big four ASX 200 banks
• How much passive income will I get from shares vs. property?
• Should you wait for a dip to buy ASX 200 bank shares?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/7JjO0Mk

The S&P/ASX 200 Index (ASX: XJO) is having a tough finish to the week. In afternoon trade, the benchmark index is down a disappointing 1.1% to 7,627.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 2.5% to $1.70. This appears to have been driven by another rise in oil prices overnight. Traders have been bidding oil prices higher this week in response to news of attacks on Russian oil refineries. It isn’t just Beach Energy shares that are rising on Friday. The S&P/ASX 200 Energy index is defying the market weakness and is up 1.3% at the time of writing.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up a further 2% to $14.92. Investors have been buying this biopharmaceuticals company’s shares this week after it announced an on-market share buyback. Clinuvel is aiming to buy back up to 1.5 million shares over the next 12 months. This equates to approximately 3% of its outstanding share capital. Management advised that its decision reflects its view that the recent decline of market valuation is no longer commensurate with the performance and expected outlook for the company.

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is up over 3% to $1.20. This morning, this uranium developer announced the completion of the first tranche of its placement. This has seen the company issue approximately 114.7 million shares to qualified, institutional, sophisticated, and professional investors at a price of $1.225 per new share. This represents a premium to where its shares were last trading. The proceeds will be used to advance the development of the Tumas Project. This includes the commencement of construction post final investment decision and securing debt financing.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 7% to $1.21. This follows news that the payments company has agreed to sell its loss-making Sentenial business. Investors appear pleased to see the back of the business, even though the selling price is half what EML paid for it in 2021. GoCardless is buying Sentenial for an enterprise value of 32.75 million euros (A$54.1 million). EML expects the sale to be earnings and cashflow accretive in the first year.

The post Why Beach, Clinuvel, Deep Yellow, and EML shares are charging higher today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is this ASX 300 uranium stock avoiding the market selloff and racing higher?
• 1 All Ords stock quietly crushing the ASX today
• 5 things to watch on the ASX 200 on Friday
• Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today
• 5 things to watch on the ASX 200 on Thursday

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 positions in and has recommended EML Payments. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/UgDm6c8

The Lake Resources N.L. (ASX: LKE) share price is having another day to forget.

At the time of writing, the lithium developer’s shares are down 14% to a new multi-year low of 7.2 cents.

This means that its shares are down 47% since the close of play on 1 March.

Why is the Lake Resources share price sinking?

Today’s decline has been driven by a selloff in the lithium industry, which has seen most ASX lithium shares sink deep into the red today.

Here’s a quick summary of some of the declines:

• Core Lithium Ltd (ASX: CXO) shares have dropped 4%
• Liontown Resources Ltd (ASX: LTR) shares are down 7%
• Pilbara Minerals Ltd (ASX: PLS) shares have tumbled 5%
• Sayona Mining Ltd (ASX: SYA) shares are down 4.5%

This follows declines on Wall Street for lithium miners in response to a hotter than expected inflation reading, which reduced the chances of a rate hike in the near term. Investors may believe that electric vehicle demand will remain subdued until rates ease.

What else is weighing on its shares?

Investors have also been selling the company’s shares this month after it announced yet another capital raising.

Lake Resources received firm commitments to raise $15 million at 7 cents per new share. This was a significant 39.1% discount to where the Lake Resources share price traded at the time.

The company explained that it was raising funds while it seeks to find a partner for its Kachi lithium project in Argentina. It said:

The Offer enhances Lake’s balance sheet by providing additional working capital and financial flexibility during the strategic partnership selection process for Kachi. Lake is actively conducting outreach to a wide array of potential strategic partners including car and battery manufacturers, lithium producers, oil and gas companies, sovereign wealth funds and private equity. The strategic partnership process is scheduled to conclude in the second half of the year.

This process may not be as easy as you think based on the scoping study for the project. As I outline here, based on realistic lithium price assumptions, the project looks unlikely to offer a return that is sufficient to justify its construction.

In light of this, Lake Resources arguably needs a big rebound in lithium prices this year more than any other ASX lithium stock.

The post Why is the Lake Resources share price sinking again and down 47% since 1 March? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today
• Why are Lake Resources shares crashing 20% on Tuesday?
• Why are Lake Resources shares in a trading halt?
• Why Cettire, Fletcher Building, Lake Resources, and Nick Scali shares are falling today
• Down 80% in a year why are Lake Resources shares tumbling again today?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/qjZk6nS