• If you’d put $30,000 in this ASX biotech stock 4 months ago, you’d have $140,000 now

    Shot of a young scientist using a digital tablet while working in a lab.Shot of a young scientist using a digital tablet while working in a lab.

    Is it fanciful imagining how rich one could be if only they had invested in a particular ASX stock?

    I say no, because it keeps you motivated to keep researching and investing.

    It also reminds you that diversification can not only reduce risk from losers, it allows spectacular winners to carry the whole portfolio upwards.

    On that point, there is one small-cap stock that’s been making waves in 2024.

    In fact, it has almost tripled in share price so far this year.

    Let’s check out what’s happening:

    Cast your mind back to spring

    Perth biotech PharmAust Limited (ASX: PAA) may only have a market capitalisation of around $129 million, but not so long ago it was even smaller than that.

    Let’s go on a very short journey in the time machine — back to November.

    At that time the PharmAust share price was hovering around 7 cents. In fact, it has been more or less at that mark for a good three years.

    Hypothetically, let’s imagine you bought $30,000 worth of shares then.

    At the start of December, the company presented some favourable results from a study of its monopetal product. The solution aims to treat motor neurone disease (MND), which is known as Lou Gehrig’s Disease in North America.

    The market took notice and sent the stock shooting up.

    But then just two weeks ago, more positive test results came out, that really put a rocket under the ASX stock.

    The wash up is that the shares are 33 cents at the time of writing.

    That $30,000 you invested just four months ago? That’s now worth a cool $141,428.

    How does that compare to a term deposit?

    This biotech stock and a bunch of losers = win

    Now, no one is expecting that you’ll land this sort of winner every time.

    But if you can manage one or two multi-baggers within a diversified portfolio, that’s all you need to grow your wealth.

    Check this out. 

    Say, at the time you bought PharmAust shares, you also bought four other stocks for $30,000 each.

    Then in the four months that PharmAust was going crazy, the other four were having a miserable time to dive 25% each.

    Your overall portfolio would still be a stunning 54% up in just one-third of a year.

    Good luck with your investments.

    The post If you’d put $30,000 in this ASX biotech stock 4 months ago, you’d have $140,000 now appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    *Returns as of 1 February 2024

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

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  • Core Lithium share price on watch amid $167m half-year loss and CEO exit

    a woman with her hands over her face splits her fingers over one eye so she can peep through them.

    a woman with her hands over her face splits her fingers over one eye so she can peep through them.

    The Core Lithium Ltd (ASX: CXO) share price will be one to watch closely on Wednesday.

    That’s because the lithium miner has released its half-year results after the market close.

    Core Lithium share price on watch

    • Revenue of $134.8 million
    • EBITDA loss of $11.5 million
    • Loss after tax of $167.6 million
    • CEO to exit

    What happened during the half?

    For the six months ended 31 December, Core Lithium reported revenue of $134.8 million. This reflects spodumene concentrate production of 49.5kt with sales of 54.1kt and lithium fines sales of 46.3kt.

    Core Lithium reported a 75% decline in its spodumene concentrate realised price to US$2,098 per tonne and cash operating costs of A$1,926 per tonne.

    Unfortunately, this meant that the company posted a loss for the six months. It reported an EBITDA loss of $11.5 million and a loss after tax of $167.6 million. This includes a non-cash impairment of $119.6 million and provisions for onerous contracts of $27.6 million.

    CEO exit

    In response to operational changes put in place as a result of its strategic review and the revised near-term path forward for the company, its CEO, Gareth Manderson, will step down.

    Commenting on his exit, Core chair, Greg English, said:

    Gareth joined Core at a difficult time: the Grants open pit mine was underperforming and the mine infrastructure was not complete. He joined to provide the leadership and skills required as a developer and operator. He has delivered the Finniss project, established concentrate production, shipping and sales processes and developed the governance, practices and processes required of a listed mining company. [..] Gareth has made an outstanding contribution to the Company, and we wish him well in his other ventures.

    Looking beyond lithium

    With the lithium price tipped to stay lower for longer, Core Lithium has suggested that it may look beyond the white metal. It commented:

    The Core exploration team is reviewing the local and regional prospectivity of the Company’s lithium tenements and the potential of the Company’s 100% owned gold, uranium and base metal projects. The Company has received multiple inbound enquiries about the Napperby and Fitton Uranium Projects. Updates will be provided as the review continues and the exploration plan is finalised.

    Outlook

    The company has yet to make a decision on the restart of the Finniss Lithium Project. However, it will continue to process existing ore stockpiles to produce spodumene in the meantime.

    As a result, it has reaffirmed its revised FY 2024 production guidance of 90,000 tonnes to 95,000 tonnes of 4.77% spodumene concentrate production and sales of 80,000 tonnes to 90,000 tonnes.

    Though, that may not be enough spodumene to fulfil its obligations, which could have consequences for Core Lithium and its share price. Its report highlights the following:

    The Group has offtake agreements with Ganfeng Lithium and Sichuan Yahua for the supply of lithium spodumene concentrate. Within these agreements, there are annual shipment quantities that Core Lithium is contractually obligated to meet. Due to the suspension of mining at the Finniss operations, there is a possibility that Core Lithium may not meet this obligation. In respect of one of these agreements, if this obligation is not met, Core Lithium is obligated to pay the customer the difference between the price and the price the customer actually paid in procuring a replacement supply of spodumene concentrate.

    The post Core Lithium share price on watch amid $167m half-year loss and CEO exit appeared first on The Motley Fool Australia.

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    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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. 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.

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  • Here are the top 10 ASX 200 shares today

    rising gold share price represented by a green arrow on piles of gold block

    rising gold share price represented by a green arrow on piles of gold block

    The S&P/ASX 200 Index (ASX: XJO) endured another wild day of trading this Tuesday. Despite an initially strong rise this morning, investors spent most of the afternoon backpedalling, leaving the ASX 200 barely in the green by the closing bell.

    By the time the markets finished up, the index had inched up to 7,712.5 points, a gain of 0.11%.

    This volatile Tuesday session comes after a more positive start to the trading week over in the United States last night and this morning.

    The Dow Jones Industrial Average Index (DJX: .DJI) overcame some early shivers to close up 0.12%.

    The Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t as lucky though and ended up retreating by 0.41.

    But time now to return to ASX shares and look at how the different ASX sectors endured today’s trading conditions.

    Winners and losers

    We had a fairly even split between the winners and losers today.

    Starting with the latter, energy stocks were the worst place to be. The S&P/ASX 200 Energy Index (ASX: XEJ) had a bleak time today, tanking by 0.77%.

    Consumer staples shares also got singled out for punishment. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) copped a 0.39% sell-off.

    Another sector on the nose was industrial stocks. The S&P/ASX 200 Industrials Index (ASX: XNJ) fared poorly with a loss of 0.28%.

    Communications shares came in next, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) slipping 0.16%.

    But that’s it for the red sectors.

    Leading the green corners of the market were ASX gold stocks. The All Ordinaries Gold Index (ASX: XGD) had a fantastic session, leaping up 2.42%.

    Tech shares were hot today as well, as you can see from the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 1.15% surge.

    Utilities stocks also had a day to remember. The S&P/ASX 200 Utilities Index (ASX: XUJ) enjoyed an 0.88% boost.

    Consumer discretionary shares weren’t far off that. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) swelled by 0.61%.

    Then we had healthcare stocks. The S&P/ASX 200 Healthcare Index (ASX: XHJ) joined the party with a rise of 0.26%.

    Financial shares recovered some of yesterday’s drop as well, evidenced by the S&P/ASX 200 Financials Index (ASX: XFJ)’s uptick of 0.18%.

    Real estate investment trusts (REITs) weren’t left out either, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) lifting by 0.14%.

    Our final winners were mining stocks. The S&P/ASX 200 Materials Index (ASX: XMJ) ended up inching 0.03% higher.

    Top 10 ASX 200 shares countdown

    This Tuesday’s best performer came in as gold stock Bellevue Gold Ltd (ASX: BGL). Bellevue shares rocketed a pleasing 10.31% up to $1.605 each.

    This spike follows an encouraging production update from the company this morning, which my Fool colleague went into here.

    Here’s a look at the rest of the top gainers from today’s miserable trading:

    ASX-listed company Share price Price change
    Bellevue Gold Ltd (ASX: BGL) $1.605 10.31%
    Strike Energy Ltd (ASX: STX) $0.23 9.52%
    Alumina Ltd (ASX: AWC) $1.27 8.09%
    Core Lithium Ltd (ASX: CXO) $0.22 7.32%
    Chalice Mining Ltd (ASX: CHN) $1.305 6.10%
    Neuren Pharmaceuticals Ltd (ASX: NEU) $21.13 5.28%
    Life360 Inc (ASX: 360) $12.83 5.16%
    Ramelius Resources Ltd (ASX: RMS) $1.57 4.67%
    Liontown Resources Ltd (ASX: LTR) $1.315 4.37%
    Pilbara Minerals Ltd (ASX: PLS) $4.17 4.25%

    Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    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 positions in and has recommended Life360. 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.

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  • After a rough start to 2024 these 3 ASX 200 mining stocks are looking cheap to me

    Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22

    Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22

    S&P/ASX 200 Index (ASX: XJO) mining stocks have had a tough start to 2024.

    Two and a half months into the new year sees the ASX 200 up 1.0% at market close on Tuesday.

    Not shooting the lights out, perhaps. But respectable. Especially as this doesn’t include the dividends many of the blue-chip stocks have already paid out in 2024.

    And the benchmark index certainly hasn’t gotten any help from Australia’s large-cap mining shares.

    Here’s how these three leading ASX 200 mining stocks have performed so far this year:

    • Fortescue Metals Group Ltd (ASX: FMG) shares are down 14.4%
    • BHP Group Ltd (ASX: BHP) shares are down 15.4%
    • Rio Tinto Ltd (ASX: RIO) shares are down 13.4%

    Why are the big ASX mining shares getting smashed in 2024?

    The biggest headwind facing the big three Aussie miners has been a sharp fall in the price of iron ore.

    BHP, Fortescue and Rio Tinto all earn significant revenue from other commodities, including copper.

    But iron ore is the top revenue earner for all three ASX 200 mining stocks.

    At market close yesterday, iron ore was trading for US$107 per tonne. That was down almost 7% overnight. And it puts the price of the steel-making metal down some 26% since 2 January, when it was trading for US$145 per tonne.

    Much of the retrace in the iron ore price can be pinned on weak demand from China, the world’s top iron ore consumer and number one export market for Aussie shipments.

    As you’re likely aware, China’s once-booming economy has been struggling to meet the government’s scaled-back growth target of 5%.

    The middle kingdom’s steel-hungry real estate sector has been a particularly underwhelming performer.

    Over the latter months of 2023, investors had been banking on some significant stimulus measures from the Chinese government. Those expectations helped support the iron ore price and by connection the ASX 200 mining stocks.

    To date, however, those stimulus measures have been more of a drip feed than the bazooka policies China’s economy appears to need to reignite economic growth.

    And those drip feed policies were reinforced this week at the annual National People’s Congress in Beijing.

    The lack of substantial new stimulus measures drove down the iron ore price to levels not seen since August.

    But things could yet take a sharp turn for the better.

    Why things could take a sharp turn-up for ASX 200 mining stocks

    I believe ASX 200 mining stocks like BHP, Fortescue and Rio Tinto could be in for a significant rebound after the big retrace in early 2024.

    First, take a look at copper prices.

    The copper price has managed to actually edge up by 1% this calendar year, with the red metal currently trading for US$8,653 per tonne.

    The copper price is less directly impacted by rising or waning demand from China. And the resilient price is a bullish sign for the growth outlook of the wider global economy.

    ‘Dr copper’ after all, is often used to gauge the health of the worldwide economy.

    Second, I don’t believe that Chinese President Xi Jinping can afford to see China’s economy fall short of its 5% stated growth target.

    That means either the economy, and the nation’s demand for iron ore, will pick up growth under the already announced measures. Or the government will have little choice but to up its stimulus measures.

    Either outcome, if they eventuate as I expect, should prove bullish for ASX 200 mining stocks.

    Commenting on the outlook for additional stimulus measures from China, Commonwealth Bank of Australia (ASX: CBA) analyst Vivek Dhar said (quoted by The Australian Financial Review):

    The ultimate question will be the willingness of policymakers to defend China’s economic growth target of around 5% this year.

    We think the goal will be challenging, but if growth undershoots even downside expectations of policymakers, it will likely open the door to more infrastructure-related stimulus.

    That potential increased infrastructure-related stimulus out of China should lead to a boost in steel manufacturing and the accompanying demand for the iron ore to produce it.

    Which is why I think ASX 200 mining stocks like BHP, Rio Tinto and Fortescue are looking cheap following this year’s sharp sell-off.

    Now, as always, I encourage you to do your own thorough research before investing in any ASX shares. If you’re not comfortable with that or simply don’t have the time, then seek out some expert advice.

    The post After a rough start to 2024 these 3 ASX 200 mining stocks are looking cheap to me appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    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.

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  • $200 million sell-down among ASX 300 insider sales and purchases over past week

    A man looking at his laptop and thinking.A man looking at his laptop and thinking.

    One of the biggest recent transactions among S&P/ASX 300 Index (ASX: XKO) company directors was worth almost $200 million.

    Let’s take a look.

    ASX 300 insider transactions over the past week

    Dicker Data Ltd (ASX: DDR)

    Founder and CEO David Dicker sold off approximately 18.3 million shares at $10.90 per share by way of an underwritten block trade on 5 March. The stock was sold “to certain sophisticated, professional and/or institutional investors”, according to the disposal notice.

    The total consideration was almost $200 million and represented 10.2% of the company’s issued capital.

    The company issued a statement explaining the sale:

    The sale of shares is due to a recent divorce settlement and subsequent restructuring of David Dicker’s portfolio.

    Dicker has entered into a six-month escrow on his remaining shareholding of 93,785,988 shares. The trade reduced his voting power from 62.35% to 54.77%.

    The ASX 300 tech share is up 0.56% to $10.76 in afternoon trading.

    Atlas Arteria Group (ASX: ALX)

    Atlas Arteria director Ken Daley spent a bit over $24,500 buying 4,600 shares on-market on 7 March. Fellow director Andrew Cook also added 5,000 shares to his holdings in the ASX 300 stock on 5 March. He paid $26,500 for the stock, taking his total holdings to 43,000 Atlas Arteria shares.

    The industrials stock is down 0.94% to $5.28 on Tuesday.

    Charter Hall Group (ASX: CHC)

    Stephen Conry bought up 11,775 shares over two days on 5 and 6 March for a total consideration of $149,896. This increased his holdings in the ASX 300 real estate investment trust (REIT) by almost 75%.

    The ASX 300 property share is up 1.25% to $13.01 this afternoon.

    The post $200 million sell-down among ASX 300 insider sales and purchases over past week appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Motley Fool contributor =”https://www.fool.com.au/author/TMFBronwyn/”>Bronwyn Allen 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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why does Morgans rate these ASX dividend stocks as buys?

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    Which ASX dividend stocks could be buys in March? Let’s see what the team at Morgans is saying about the two listed below.

    Here’s what its analysts are saying about these stocks:

    Bapcor Ltd (ASX: BAP)

    This auto parts retailer could be an ASX dividend stock to buy according to Morgans. The broker has an add rating and $6.60 price target on its shares.

    Although Morgans acknowledges that a change of management and strategy creates a bit of uncertainty, it believes this has been built into its current valuation. Morgans commented:

    Despite the uncertainty tied to an inevitable strategy review, we continue to see higher earnings in FY25 as realistic. We acknowledge the BAP investment case is tricky until the new CEO provides some strategy clarity. However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.

    In respect to dividends, the broker is forecasting the company to pay 19.5 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Bapcor share price of $6.06, this implies dividend yields of 3.2% and 3.8%, respectively.

    Super Retail Group Ltd (ASX: SUL)

    Another ASX dividend stock that has been given the thumbs up by analysts at Morgans is Super Retail. The broker has an add rating and $17.50 price target on the shares of the owner of BCF, Supercheap Auto, Macpac, and Rebel.

    Morgans has been impressed with the company’s performance, noting that it is outperforming rivals. It said:

    In our opinion, the business is outperforming the competition across most of its retail operations as it leverages its brand equity, strong omnichannel credentials, well subscribed loyalty programmes and extensive network of stores. PBT was down only (5)% compared, for example, with JB Hi-Fi’s (20)% decline. Although there is some work to do at rebel, in particular, we believe SUL will continue to deliver strong returns and remains likely to declare a special dividend in August.

    As for income, Morgans expects fully franked dividends per share of 96 cents in FY 2024 and 74 cents in FY 2025. Based on its current share price of $14.70, this will mean yields of 6.5% and 5%, respectively.

    The post Why does Morgans rate these ASX dividend stocks as buys? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • 4 ASX All Ords shares going gangbusters on Tuesday

    A young woman holding her phone smiles broadly and looks excited, after receiving good news.

    A young woman holding her phone smiles broadly and looks excited, after receiving good news.

    There are some very big gains being recorded from ASX All Ords shares on Tuesday.

    For example, the shares listed below have been going gangbusters with three of them up over 10% this afternoon.

    Let’s see what is happening:

    Bellevue Gold Ltd (ASX: BGL)

    The Bellevue Gold share price is up 11% to $1.62. This follows the release of a production update from the gold miner this morning. The ASX All Ords share revealed that its gold production continues to ramp up, with production totalling 13,364 ounces in February at a head grade of 5.2g/t gold. Management notes that this ensures that Bellevue Gold is on track to meet its guidance of 75,000 ounces to 85,000 ounces for the first half of FY 2024.

    Mesoblast Ltd (ASX: MSB)

    The Mesoblast share price is up 25% to 40 cents. This may have been driven by a delayed reaction to an announcement out of the biotechnology company on Monday. Mesoblast revealed that the US FDA will support an accelerated approval pathway for rexlemestrocel-L under the existing Regenerative Medicine Advanced Therapy designation. This therapy is Mesoblast’s allogeneic mesenchymal precursor cell product for patients with end-stage ischemic heart failure with reduced ejection fraction and a left ventricular assist device.

    Novonix Ltd (ASX: NVX)

    The Novonix share price is up 18% to $1.04. This is despite there being no news out of the battery materials technology company today. Though, it is worth noting that this ASX All Ords share has been on a tear recently. So much so, it is now up 53% since this time last month.

    Zip Co Ltd (ASX: ZIP)

    The Zip share price has continued its positive run and is up 9% to $1.31. This means that the buy now pay later provider’s shares have now doubled in value since the start of 2024. Investors have been buying the ASX All Ords share after it delivered a strong half-year result and was the subject of takeover rumours. In addition, last week UBS upgraded the company’s shares to a buy rating and lifted their price target to $1.43 from a lowly 36 cents.

    The post 4 ASX All Ords shares going gangbusters on Tuesday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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. has positions in and has recommended Zip Co. 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.

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  • Liontown shares rocket 30% in a month ahead of Friday’s results

    Lion roaring in the wild, symbolising a rising Liontown share price.Lion roaring in the wild, symbolising a rising Liontown share price.

    Liontown Resources Ltd (ASX: LTR) shares have risen by 29.61% over the past month to trade at $1.32 apiece on Tuesday afternoon. The ASX lithium share is currently up 4.92% for the day so far.

    There has been no official news from the junior lithium explorer over the month to explain the 30% surge.

    However, battered lithium commodity prices have rebounded a bit over the period. So, this could be a factor pushing Liontown shares higher. The lithium carbonate price is up 11.28% over the past month.

    As the chart below shows, Liontown shares have been through the wringer over the past nine months.

    They hit an all-time high of $3.20 in June 2023, then fell through the floor after United States lithium giant Albemarle Corp (NYSE: ALB) withdrew its $3 per share takeover bid in mid-October 2023.

    The ASX lithium stock is down 58.75% since that record high.

    What’s next for Liontown shares?

    On Friday, Liontown will release its 1H FY24 results.

    As my colleague Mitch points out in our results preview article, investors will be looking for an update on construction progress and funding at the flagship Kathleen Valley lithium project.

    Production is scheduled to commence in the middle of this year.

    Back in December, Liontown chair Tim Goyder told investors that Kathleen Valley has an expected ten-year average C1 cash production cost of roughly US$475 per tonne. This may be updated on Friday.

    The price of spodumene concentrate today is US$1,025 per tonne.

    Over the past fortnight, it has risen by 13.9% from US$900 per tonne.

    The post Liontown shares rocket 30% in a month ahead of Friday’s results appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Motley Fool contributor Bronwyn Allen 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.

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  • If inflation rebounds I’ll be buying this leading ASX 200 share

    Busy freeway and tollway at duskBusy freeway and tollway at dusk

    Investors in S&P/ASX 200 Index (ASX: XJO) shares have been keeping a close eye on the pending end to elevated inflation levels.

    As you likely recall, inflation took off from historically low levels in early 2022, spurred by the government’s massive pandemic stimulus measures. Inflation in Australia reached an eye-watering 7.8% in December 2022. It gradually reduced over the next year, falling to 4.3% in December 2023.

    And the monthly CPI indicator for the 12 months to January 2024 came in at an even lower 3.4%.

    That’s coming closer to the RBA’s target range of 2% to 3%.

    Which is good news for most ASX 200 shares.

    Unless the trend reverses.

    How inflation can throw up headwinds for ASX 200 shares

    High inflation can negatively impact ASX 200 shares in a number of ways.

    First, it reduces the amount of money many consumers have to spend, which can see less revenue flowing in for many Aussie companies.

    Second, high inflation comes hand in hand with higher interest rates. That’s going to hurt any companies holding high levels of debt or those priced with future earnings in mind.

    And many companies can’t readily increase their prices to match these increased costs without further impacting their business.

    So, there are good reasons investors in ASX 200 shares are hoping we’ve seen an end to the past two years of elevated inflation.

    But a number of market experts are cautioning those hopes may be premature.

    Addressing The Australian Financial Review Business Summit yesterday, BlackRock global chief investment strategist Wei Li said, “In the near term, markets may not be appreciating how quickly inflation can fall through the simple mechanics of the pandemic unwind.”

    Li continued:

    In the long-term, markets may not be appreciating how different the new regime is in terms of the supply side constraints… After inflation gets to target, it could cause a roller coaster rebound back higher than what markets are currently expecting.

    Li said the RBA may have to accept inflation at the upper end of its target, or 3%.

    Former federal treasurer Peter Costello also offered some sobering views on inflation and interest rates.

    According to Costello:

    The market now believes that interest rates have peaked, and they are going to fall, and have priced in those interest rate reductions. What happens if they don’t materialise as soon as the market expects? There is a fair bet to make that the market may have run beyond itself.

    If inflation is poised for an unwelcome rebound, this is the ASX 200 share I’ll be buying.

    An inflation-busting ASX stock

    Running my slide rule over inflation-resistant ASX stocks, I looked for companies whose services will remain in strong demand even if price rises continue to hit consumers’ discretionary spending.

    Importantly, I also looked for ASX 200 shares that have demonstrated they can pass on inflationary costs to their customers.

    Enter, toll road developer and operator Transurban Group (ASX: TCL).

    Transurban reported its half-year results (1H FY 2024) on 8 February.

    Highlights included a 2.1% year on year increase in the company’s Average Daily Traffic (ADT) numbers, which reached 2.5 million trips per day.

    This helped drive a 6.3% increase in proportional toll revenue to $1.76 billion.

    And Transurban upped its interim dividend by 13% to 30 cents per share. The stock currently trades on an unfranked trailing yield of 4.6%.

    On the expenditure side, Transurban’s operational costs increased by 1.7%. That ran below inflation, so in real terms, costs fell over the six-month period.

    And this ASX 200 share is well positioned should inflation in Australia or North America rebound.

    In 1H FY 2024, 67% of the company’s revenue had CPI-linked tolling escalations.

    And in the unexpected scenario where inflation reverses, most of Transurban’s tolls cannot be lowered as a result of deflation.

    The post If inflation rebounds I’ll be buying this leading ASX 200 share appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    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 positions in and has recommended Transurban 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.

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  • How much would I have now if I’d invested $10,000 in Vanguard Australian Shares Index ETF (VAS) a year ago?

    Man holding a calculator with Australian dollar notes, symbolising dividends.

    One of the most popular ETFs in Australia is the Vanguard Australian Shares Index ETF (ASX: VAS).

    In fact, at the last count, there was $14.7 billion invested in the fund.

    To put that into context, that’s more than the value of lithium giant Pilbara Minerals Ltd (ASX: PLS) and Australia’s flag carrier airline Qantas Airways Limited (ASX: QAN).

    What is the Vanguard Australian Shares Index (VAS) ETF?

    This popular ETF gives investors access to the top 300 companies listed on the Australian share market.

    Vanguard highlights that this provides access to long-term capital growth potential and regular income through distributions.

    In addition, due to the sheer number of ASX shares that you are buying a slice of with the ETF, it provides almost instant diversification to a portfolio.

    Clearly there’s a lot to like about this ETF. But has it delivered the goods for investors over the last 12 months? Let’s dig deeper and find out.

    $10,000 invested in ASX VAS

    If I had invested into this ETF 12 months ago, I would have been buying at a price of $88.87.

    This means I would have been able to pick up 113 units for an investment of $10,042.31.

    While the first few months of ownership would have been relatively flat before a turbulent period between mid-September and the start of November, it would’ve paid handsomely (literally) to have held on.

    At the time of writing, VAS is trading at $96.50 on the ASX boards. This means that my 113 units would have a market value $10,904.50. That’s a return of 8.6% or approximately $862 on my investment.

    But it doesn’t stop there. As I mentioned above, the VAS ETF offer regular income through distributions.

    Since this time last year, the Vanguard Australian Shares Index ETF has paid out a total of $3.47 per share in dividends.

    This equates to a dividend yield of 3.9% based on my buy price and would have generated $392.11 in income over the 12 months.

    The post How much would I have now if I’d invested $10,000 in Vanguard Australian Shares Index ETF (VAS) a year ago? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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. 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.

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