• The ASX uranium shares to buy just coming out of a trading halt

    A miner stands in front oh an excavator at a mine siteA miner stands in front oh an excavator at a mine site

    ASX uranium shares have found favour among many investors over the past year, but there is one particular stock coming out of a trading halt that looks intriguing.

    That’s according to Auburn Capital head of wealth management Jabin Hallihan, who rates Deep Yellow Limited (ASX: DYL) as a buy.

    “Deep Yellow is a uranium exploration and development company, with operations in Namibia and Australia,” Hallihan told The Bull.

    “The company boasts a substantial resource base and aims to achieve uranium production capacity of more than 7 million pounds a year.”

    $220 million capital raising

    The stock went into a trading halt last Thursday, which was released on Monday morning.

    The eventual announcement was that the company had successfully raised $220 million from institutional investors to fund both its Tumas project in Namibia and Mulga Rock in Western Australia.

    According to Deep Yellow chief executive John Borshoff, the development is “timed perfectly”.

    “The Tumas Project represents a long-life high-quality asset timed to deliver into what is a supply constrained market,” he said in a statement to the ASX.

    “The Mulga Rock Project is next in the development schedule and provides a great opportunity to develop our second uranium mine that will also benefit from integrating the value-adding critical minerals and magnetic rare earth elements associated with these deposits.”

    The favoured uranium shares in a favoured industry

    The uranium industry is bullish at the moment due to many nations reconsidering nuclear as a powerful source of emissions-free energy generation.

    And within that industry Hallihan likes Deep Yellow as a buy for those investors willing to take on some risk.

    “The company’s experienced management team, coupled with its ambitious production targets and favourable cost projections, make it a speculative buy.”

    Broking platform CMC Invest shows four out of five analysts that cover the $936 million small-cap as a buy right now.

    The Deep Yellow share price has more than doubled over the past year.

    The post The ASX uranium shares to buy just coming out of a trading halt 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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    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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  • $10k of savings? I’d buy these ASX 200 shares to grow my money

    A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beachA young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach

    If you have $10,000 to invest right now, there are some excellent S&P/ASX 200 Index (ASX: XJO) stocks that can grow that money.

    When choosing stocks, I take the view of whether that cash will be invested in companies that will be doing better in 2029 than right now.

    Here are two I reckon that are looking pretty damn good at the moment:

    Pivoting from cash burner to cash saver

    Xero Ltd (ASX: XRO) is an old favourite, but it’s a company that continues to adapt well to changing conditions.

    The market has very much appreciated the change in direction that chief executive Sukhinder Singh Cassidy has brought over her 13-month tenure.

    She has transformed the mindset of the software business from a grow-at-all-costs startup attitude to a more mature controlled-growth strategy. Costs have been cut in an attempt to increase cash flow and margins.

    The Xero share price has thus rocketed 70% over the past 12 months.

    Singh Cassidy’s work is far from done yet though, so I feel like this is one to buy as a long-term investment.

    The chances that the New Zealand tech company will be in better shape in five years’ time compared to now seems reasonably high.

    The ASX 200 shares under attack

    In contrast, Neuren Pharmaceuticals Ltd (ASX: NEU) hasn’t started 2024 in the best way.

    The ASX 200 biotech shares are now 20% lower than where they started the year.

    A short seller report has had much to do with investors fleeing this Australian company, which develops treatments for rare neurological disorders.

    Neuren has a business model where its already commercially approved drug, Daybue, is licenced out to US giant Acadia Pharmaceuticals Inc (NASDAQ: ACAD) for sale to the public.

    This brings in revenue for Neuren, which it uses to fund its pipeline of drugs under development and testing.

    Last month, US short seller Culper Research did not target Neuren specifically but accused Acadia of understating the side effects of Daybue.

    However, fund managers are sticking by the embattled ASX 200 share.

    While some have reduced their share price predictions, all six analysts currently surveyed on CMC Invest are still rating Neuren as a buy.

    Again, with several products under development, the chance that this company will be bigger and better in five years seems pretty decent.

    The post $10k of savings? I’d buy these ASX 200 shares to grow my money 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 positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 are short sellers shifting into ASX blue chips and out of lithium losers?

    A little boy measures himself against a ruler and comes up short.

    A little boy measures himself against a ruler and comes up short.

    It was only last week that we discussed when ASX short sellers would stop targeting ASX lithium shares.

    Lithium shares have been at the top of the ASX’s most short-sold stocks lists for months now.

    Previously lofty valuations, combined with a price crash in the lithium commodity itself prompted armies of short investors to take out positions in some of the ASX’s most prominent lithium stocks since the middle of last year.

    The likes of Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO) and Sayona Mining Ltd (ASX: SYA) have frequently found themselves on the ASX’s most short-sold shares list in recent months.

    But perhaps this is changing.

    Short sellers walk away from lithium stocks

    Every week, my Fool colleague James takes a look at this data and tells us what the 10 most shorted shares each week are.

    A month ago, there were three ASX lithium shares that made the cut.

    Pilbara was on top, with 20.6% of its shares held in a short position.

    Core Lithium was the third stock, with 12.7%

    And Sayona was just behind that, with 11.7% of its shares held against it.

    But this week, we have a different picture. Pilbara is still taking out the top spot. But Core Lithium has slipped to the seventh most-shorted position. And Sayona dropped out of the top ten entirely.

    So there’s a clear move away from ASX lithium shares amongst short sellers.

    As today’s report shows, other mining companies like Genesis Minerals Ltd (ASX: GMD) are attracting more short interest. But so too are shares like Flight Centre Travel Group Ltd (ASX: FLT) and IDP Education Ltd (ASX: IEL).

    ASIC data shows that this short interest seems to be migrating to some other diverse corners of the ASX.

    Short seller interest in blue chips like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) has increased in recent weeks, even as the interest in lithium stocks like Core Lithium and Sayona Mining has waned.

    Why are ASX 200 blue chips getting targeted?

    Well, there could be at least two major factors at play here.

    Firstly, as we touched on last week, short sellers may be deciding that the well is running dry when it comes to shorting ASX lithium shares. It’s only possible to make money from short selling if the shorted share in question experiences a major share price loss over a set period.

    With a stock like Core Lithium already down almost 88% from its all-time highs in 2022, some shorters may feel like they are running out of runway. Especially with signs that lithium prices are beginning to recover.

    Secondly, the entire ASX has been on a tear over the past few months. We’ve recently seen the ASX 200 at record highs, and the big four bank shares, in particular, have had a huge surge in valuation.

    Miners like BHP and Rio are often hit hard in a stock market pullback, thanks to their cyclical, commodity-based business models.

    So perhaps investors are betting that the ASX 200, after rallying almost 14% since November, is due for a pullback, and are shorting the biggest ASX 200 shares as a result.

    Only time will tell if this proves to be a wise move.

    The post Why are short sellers shifting into ASX blue chips and out of lithium losers? 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 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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. 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

    Ordinary Australians waiting at the bus stop using their phones to trade ASX 200 shares today

    Ordinary Australians waiting at the bus stop using their phones to trade ASX 200 shares today

    It’s been a tumultuous start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares this Monday. After hitting a new all-time record on Friday, investors very much pulled the ASX 200 down to earth this session.

    By the closing bell, the index had lost a painful 1.82%, leaving it at 7,704.2 points.

    This painful start to the week for ASX investors follows a rough end to the American trading week last Friday night (our time).

    The Dow Jones Industrial Average Index (DJX: .DJI) had a miserable time, shedding 0.18% of its value.

    The Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, tanking by a hefty 1.16%.

    But let’s grit our teeth and get back to the ASX today for a look at how the different ASX sectors endured today’s savage selling pressure.

    Winners and losers

    There wasn’t one sector that escaped today’s trading without a loss.

    The worst loser though was the mining sector. The S&P/ASX 200 Materials Index (ASX: XMJ) had a horrid day, cratering 2.56%.

    Gold shares weren’t too far off that. The All Ordinaries Gold Index (ASX: XGD) was cut by 2.22%.

    Financial stocks had a rough time as well. The S&P/ASX 200 Financials Index (ASX: XFJ) copped a 2.17% battering.

    Energy shares were another sore spot. The S&P/ASX 200 Energy Index (ASX: XEJ) was sent down 2.07% by the closing bell.

    Healthcare stocks didn’t escape the carnage either, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) getting a 1.6% smackdown.

    Industrial shares were on the nose too. The S&P/ASX 200 Industrials Index (ASX: XNJ) sank 1.24% by the end of trading.

    Communications stocks were right behind that, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) losing 1.22% of its value.

    Consumer discretionary shares had a similar experience, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 1.19% decline.

    Real estate investment trusts (REITs) followed right behind, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) dropping 1.18%.

    Utility stocks fared poorly as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) gave up 0.92% by the end of the day.

    Consumer staples stocks didn’t prove to be a safe haven for anyone. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) slid down 0.41%.

    Finally, the tech sector was the best-performing space on the markets this Monday. But the S&P/ASX 200 Information Technology Index (ASX: XIJ) still slipped by 0.33%.

    Top 10 ASX 200 shares countdown

    There wasn’t a lot of competition here, but today’s index winner came in at retirement developer Lifestyle Communities Ltd (ASX: LIC). Lifestyle shares rose by a confident 3.75% up to $15.89 each.

    That was despite a lack of any fresh news or announcements from the company today.

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

    ASX-listed company Share price Price change
    Lifestyle Communities Ltd (ASX: LIC) $15.89 3.75%
    Block Inc (ASX: SQ2) $120.85 3.66%
    Corporate Travel Management Ltd (ASX: CTD) $17.61 3.04%
    IRESS Ltd (ASX: 360) $8.72 2.71%
    Dexus (ASX: DXS) $7.73 1.44%
    Charter Hall Social Infrastructure REIT (ASX: CQE) $2.69 1.13%
    HMC Capital Ltd (ASX: HMC) $7.07 0.86%
    Metcash Ltd (ASX: MTS) $3.81 0.79%
    Newmont Corporation (ASX: NEM) $51.12 0.63%
    Netwealth Group Ltd (ASX: NWL) $20.26 0.55%

    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.

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    *Returns as of 1 February 2024

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    Motley Fool contributor Sebastian Bowen has positions in Newmont. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Corporate Travel Management, Life360, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Block and Netwealth Group. The Motley Fool Australia has recommended Corporate Travel Management and Metcash. 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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  • What caused this small-cap ASX stock to surge 90% today?

    A woman jumps for joy with a rocket drawn on the wall behind her.

    A woman jumps for joy with a rocket drawn on the wall behind her.

    TASK Group Holdings Limited (ASX: TSK) shares are catching the eye on Monday with an incredible gain.

    At the time of writing, the small-cap ASX stock is up 91% to 76.5 cents.

    Why is the small-cap ASX stock rocketing?

    Investors have been scrambling to buy the hospitality industry technology solutions provider’s shares today after it accepted a takeover offer.

    According to the release, the company has entered into a scheme implementation agreement (SIA) with PAR Technology Corporation (NYSE: PAR).

    PAR is a leading global restaurant technology company and provider of unified commerce for enterprise restaurants. Its restaurant hardware, software, loyalty, drive-through, and back-office solutions is used in more than 70,000 restaurants in more than 110 countries.

    Under the SIA, it is proposed that PAR Technology will acquire 100% of TASK’s shares by way of a Court-approved scheme of arrangement for a total implied price of $0.81 per share. This represents a 103% premium to where the small-cap ASX stock ended last week. It also values the company’s equity at $310 million.

    Shareholders will also have the option to receive up to 50% of their consideration in shares of PAR Technology at a ratio of 0.015 PAR Shares for each TASK share held.

    Based on the closing price of PAR shares on 8 March of US$43.41, this implies an even greater value of $0.98 per TASK share.

    Unanimously recommended

    The small-cap stock’s board unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert’s report.

    TASK shareholders Kym Houden and TASK Retail Investment have each separately advised the company that they intend to vote all shares (in aggregate approximately 18% of issued shares) in favour of the scheme. This is again in the absence of a superior proposal and the independent expert’s report.

    The company’s CEO, Daniel Houden, said:

    I am excited by the combination of TASK and PAR. It offers TASK a better base on which to achieve its international ambitions, provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of TASK to become a meaningful player in the global retail software market.

    The post What caused this small-cap ASX stock to surge 90% today? appeared first on The Motley Fool Australia.

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    *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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  • Guess which 3 ASX All Ords shares are up 60%+ in 2024

    A woman is excited as she reads the latest rumour on her phone.

    A woman is excited as she reads the latest rumour on her phone.

    The All Ordinaries index has started 2024 positively and is up almost 2% year to date.

    But as positive as that it is, it pales in comparison to some of the gains that have been made on the index.

    For example, the three ASX All Ords shares listed below are up at least 60% since the start of the year. Here’s why investors have been scrambling to buy them:

    Life360 Inc (ASX: 360)

    The Life360 share price is up 63% in 2024. The catalyst for this was a stronger than expected FY 2023 result and excitement over its outlook.

    Life360’s reported adjusted EBITDA of US$20.6 million for the year, which was well ahead of its guidance range of US$12 million to US$16 million. Looking ahead, in FY 2024, management expects adjusted EBITDA in the range of US$30 million to US$35 million. This represents 45% to 70% growth year on year. It also announced plans to expand into the advertising market.

    Megaport Ltd (ASX: MP1)

    The Megaport share price is up 64% since the start of the year. Investors were fighting to get hold of the elasticity connectivity and network services interconnection provider’s shares following the release of its quarterly update.

    For the three months, Megaport reported total revenue of $48.6 million. This was an increase of 5% quarter on quarter and 31% year on year. This underpinned a strong turnaround in profitability while still investing in growth, with Megaport reporting positive EBITDA of $15.1 million for the quarter.

    Zip Co Ltd (ASX: ZIP)

    The Zip share price is up an incredible 92% year to date. This was driven by a strong first-half performance and rumours that the buy now pay later provider could be a takeover target.

    In respect to its performance, in January the company released its second quarter update and reported an 8.5% lift in transaction value over the prior corresponding period to $2.8 billion.

    And thanks to an improvement in its revenue margin to 8.2%, Zip’s revenue was up 26.1% to $225.6 million for the quarter. This ultimately led to the company achieving positive first-half cash EBTDA of $30.8 million, from negative $33.2 million a year earlier.

    The post Guess which 3 ASX All Ords shares are up 60%+ in 2024 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 James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Megaport, and Zip Co. The Motley Fool Australia has recommended Megaport. 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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  • Are you still trying to time Mr Market?

    A young man in a blue suit sits on his desk cross-legged with his phone in his hand looking slightly crazed.

    A young man in a blue suit sits on his desk cross-legged with his phone in his hand looking slightly crazed.

    If you haven’t heard the investing parable of Mr Market, today is a great time to correct that injustice. It’s a story first told by legendary investor Benjamin Graham, but popularised by his even more legendary disciple, Warren Buffett.

    In this parable, Graham describes the nature of a personified stock market (Mr Market) and how investors should take advantage of it without falling for the traps that it sets out for us.

    Here’s some of how Warren Buffett laid it out back in 1987:

    Without fail, Mr Market appears daily and names a price at which he will either buy your interest or sell you his. Even though the business that the two of you own may have economic characteristics that are stable, Mr Market’s quotations will be anything but. For, sad to say, the poor fellow has incurable emotional problems…

    Under these conditions, the more manic-depressive his behavior, the better for you. But… Mr Market is there to serve you, not to guide you. It is his pocketbook, not his wisdom, that you will find useful. If he shows up some day in a particularly foolish mood, you are free to either ignore him or to take advantage of him, but it will be disastrous if you fall under his influence.

    By “falling under his influence”, Buffett refers to the tendency that some investors have to take the prices the stock market gives us to heart.

    Many investors become terrified when they see shares of a company they own plunge in value. This might even prompt them to sell those shares for a huge loss, just to avoid the pain of seeing them fall even further in value.

    Similarly, investors can also let greed get the better of them. Seeing a stock euphorically rocket higher can prompt a feeling of acute ‘fear of missing out’ and elicit someone to buy the now expensive shares when they probably wouldn’t have done so before.

    As Buffett says, falling for these traps is often “disastrous”.

    ‘Mr Market’ is there to serve, not guide

    That’s also the view of renowned AMP chief economist Dr Shane Oliver. In a recent edition of ‘Oliver’s Insights’, Oliver points to Warren Buffett’s warning, “Remember that the stock market is a manic depressive”, as a key insight to keep in mind in the current environment.

    Here’s some more of what he told ASX investors:

    Rules of logic often don’t apply in investment markets. The well-known advocate of value investing, Benjamin Graham, coined the term ‘Mr Market’ (in 1949) as a metaphor to explain the share market.

    Sometimes Mr Market sets sensible share prices based on economic and business developments. At other times he is emotionally unstable, swinging from euphoria to pessimism. But not only is Mr Market highly unstable, he is also highly seductive – sucking investors in during the good times with dreams of riches and spitting them out during the bad times when all hope seems lost.

    Investors need to recognise this.

    Similarly, Oliver also quotes the influential economist John Maynard Keynes’ advice that “Markets can remain irrational longer than you can remain solvent”.

    Oliver warns investors that you can’t rely on personal predictions of what Mr Market will, or should, do at any point. Making huge bets that may ruin your finances if wrong is not a good way to go about investing.

    It just goes to show how important sticking to timeless principles of success like diversification, apathy towards what others are doing, and long-term thinking is in today’s modern world.

    The post Are you still trying to time Mr Market? 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 Sebastian Bowen has positions in Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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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  • Bell Potter names the best ASX shares to buy in March

    A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.

    A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.

    Do you have room in your portfolio for some new ASX shares?

    If you do, then it could be worth checking out the two named below that Bell Potter has on its monthly preferred list.

    Here’s why the broker thinks they are among the best buys on the local market right now:

    GUD Holdings Limited (ASX: GUD)

    The diversified products company could be an ASX share to buy in March. Bell Potter has been impressed with GUD’s performance recently and appears confident that more of the same is coming. Particularly given the resilience of its auto business. It said:

    [Its strong result] was driven by the better-than-expected APG performance (the highest-quality business in GUD, in our view) and the improvement in gearing. We see GUD as well-placed to benefit from the ongoing improvement in OEM supply constraints into FY24. Overall, our Buy rating for GUD is predicated on the relative resilience of the legacy auto business and improving momentum in new car sales, which should be favourable for APG’s earnings.

    Bell Potter has a buy rating and $12.80 price target on the company’s shares.

    ResMed Inc. (ASX: RMD)

    Another ASX share that Bell Potter is bullish on in March is sleep disorder treatment company ResMed. It believes the company still has a very long runway for growth, which could make it a great long term option for investors. It explains:

    The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. […] Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

    Bell Potter has a buy rating and $34.00 price target on this ASX share.

    The post Bell Potter names the best ASX shares to buy in March 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 positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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  • With a spare $500, here’s how I’d start buying ASX shares this March

    A mature-aged woman wearing goggles and a red cape, rides her bike along the beach looking victorious.A mature-aged woman wearing goggles and a red cape, rides her bike along the beach looking victorious.

    With just $500, anyone can make a good move for growing their wealth with ASX shares.

    If I were starting to invest, I’d want to choose quality businesses that I am familiar with but also have the potential to deliver good returns.

    The share market has returned an average of around 10% per annum, which is a good rate of compounding growth.

    Many brokers in Australia require a minimum investment of $500 the first time we invest in an ASX share. So, let’s see what we can do with that.

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    It can be hard to choose one business to own when there are some many out there. So, why not (indirectly) own more than 1,400 in a single purchase? The VGS ETF held shares in 1,433 businesses in its portfolio at the end of January 2024. That’s a lot of diversification!

    We can own many of the world’s leading technology businesses with an investment in this exchange-traded-fund (ETF), including Apple, Microsoft, Alphabet, Nvidia, Amazon.com, Meta Platforms and Tesla.

    I believe this is the sort of investment that we can own forever because of how diversified it is, the quality of those businesses and the good returns it typically makes (though nothing is guaranteed). Over the years, the holdings are regularly updated, ensuring the ASX ETF is always invested in leading businesses.

    It has an annual management fee of 0.18%, and it has achieved an average return per annum of 12.4% since it started in November 2014.

    While US shares make up around 71% of the portfolio, there are numerous other countries with a noticeable weighting, including Japan, the United Kingdom, France, Canada, Switzerland, Germany and the Netherlands.

    Wesfarmers Ltd (ASX: WES)

    For investors wanting to own a specific ASX share, I think Wesfarmers Ltd (ASX: WES) is a great choice.

    The ASX retail conglomerate operates Kmart, Bunnings, Officeworks, Priceline and many other businesses across the chemicals, energy, fertilisers, industrial and healthcare sectors.

    The company has proven to be a solid performer. Bunnings and Kmart Group both earn strong returns on capital (ROC), while the overall business earns an impressive return on equity (ROE).

    Wesfarmers aims to generate good total shareholder returns (TSR) for investors through a combination of capital growth and dividends.

    According to CMC Markets, Wesfarmers shares have delivered an average TSR of 14% per annum over the past decade, though past performance is not a guarantee of future performance. Having said that, I think the ASX share is very capable of outperforming the S&P/ASX 200 Index (ASX: XJO) over the next five years.

    The post With a spare $500, here’s how I’d start buying ASX shares this March 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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    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Analysts say these ASX All Ords dividend stocks are buys in March

    Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.

    Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.

    The great news for income investors is that there are plenty of ASX All Ords dividend stocks to choose from on the Australian share market.

    But which ones could be buys in March?

    Let’s take a look at two that have been named as buys this month:

    Dexus Convenience Retail REIT (ASX: DXC)

    Dexus Convenience Retail REIT could be an ASX All Ords dividend stock to buy in March.

    It is a real estate investment trust that owns high quality service stations and convenience retail assets.

    The team at Bell Potter thinks the company is a buy. Its analysts highlight that they “see clear price discovery for DXC where there have been 53 petrol station transactions in CY23, proving up book value.”

    The broker has a buy rating and $3.00 price target on its shares.

    Bell Potter is forecasting dividends per share of 20.7 cents in FY 2024 and 21.7 cents in FY 2025. Based on its current share price of $2.70, this equates to yields of 7.7% and 8%, respectively.

    Transurban Group (ASX: TCL)

    Transurban could be another ASX All Ords dividend stock to buy now. It is the toll road operator behind roads such as CityLink and Cross City Tunnel.

    Citi currently has a buy rating and $15.90 price target on Transurban’s shares.

    In addition, its analysts “believe TCL’s FY24 DPS guidance of 62c is conservative.” Instead, the broker is forecasting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.45, this will mean yields of 4.7% and 4.8%, respectively.

    The post Analysts say these ASX All Ords dividend stocks are buys in March 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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    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 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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