A common refrain I often hear from ASX investors when asked what ASX shares they are buying next is this: ‘I’m waiting for the next stock market crash to buy’.

One of the first things we are all told about successful investing is ‘buy low, sell high’. So a natural instinct for the budding investor is to attempt to pay this out. The idea seems beautifully simple: buy shares when they are cheap, and sell them when the markets are overvalued- repeat and make money.

When I first started my own investing journey, I too tried this approach And was woefully unsuccessful.

So since then, my approach has evolved. I’m not waiting for a stock market crash to buy shares. That’s not the same as saying that there won’t be a stock market crash in 2023. For all I know, there could be.

But I’m not basing my decisions on what the markets may or may not do going forward. Mostly because the markets are impossible to predict.

Let’s turn to the advice of the legendary investor Warren Buffett for some clarification.

Buffett isn’t waiting for the next stock market crash

Warren Buffett doesn’t buy shares with the intention of selling them. He once said this:

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

Another great Buffett quote to keep in mind is this one:

All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.

As Buffett implies, it is a dangerous idea to base your investment decisions on what the markets may or may not do next. It is far more important to find a top-quality investment and identify a good price to buy it at. Sure, if a company is overvalued, perhaps you should wait and look somewhere else for your next investment in the meantime.

But if you wish to stockpile your money for that next market crash, you might be waiting years. Those missed years will have you missing out on compounding earnings and dividend income. And buying at the right point of a market crash is difficult anyway.

So I’m not waiting for the next stock market crash to invest. I’m looking for bargains on the share market today that I can take advantage of. I would humbly suggest that all investors look to Buffett’s teachings for investing wisdom, and not for the next market crash to invest.

The post I’m not waiting for a 2023 stock market crash! appeared first on The Motley Fool Australia.

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More reading

• Morgans says these are some of the best ASX dividend shares to buy
• Why are ASX 200 gold shares leading the market today?
• 5 dividend shares I think are among the safest on the ASX
• 2 ASX 200 shares I’d buy for global long-term returns
• Why has the Rio Tinto share price dived 9% in 5 days?

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.

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If you’re an income investor looking for dividends to boost your income, then you may want to look at the ASX shares listed below that currently feature on Morgans‘ best ideas list.

Here’s what you need to know about these shares:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans has on its best ideas list is Dexus Industria. It is an industrial and office property company that owns a collection of high quality assets.

Morgans feels that Dexus Industria is well-placed for growth thanks to strong demand in the industrial market and its development pipeline. It said:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.82, this will mean yields of 5.8% and 5.9%, respectively.

Morgans currently has an add rating and $3.25 price target on the company’s shares.

GQG Partners Inc (ASX: GQG)

Another ASX dividend share that Morgans is a fan of is fund manager GQG Partners.

The broker has GQG’s shares on its best ideas list right now due to their attractive valuation, strong fund performance, and diversified earnings. It explained:

GQG’s strong relative investment outperformance through the current market weakness should solidify the near-term flows outflow. GQG has diversified earnings (by strategy and clients); solid performance track-record; and ongoing growth prospects. In our view, the current ~12x PE (versus a sector med-term average of ~16x) is attractive.

Morgans is also forecasting some very big yields in the near term. It expects dividends per share of 11.4 cents in FY 2023 and then 12.6 cents in FY 2024. Based on the current GQG share price of $1.40, this will mean 8.1% and 9% yields, respectively.

The broker has an add rating and $1.93 price target on its shares.

The post Morgans says these are some of the best ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• ‘Meaningful growth’: 2 ASX shares to buy for cheap after a terrible month
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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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ASX 200 gold shares are leading the market on Wednesday as investors plough more funds into the traditional safe-haven assets of the share market.

A softer United States currency is one factor behind renewed interest in gold stocks this month.

Let’s see which ASX 200 gold shares are leading the pack today.

Which ASX 200 gold shares are outperforming?

The top 5 ASX 200 shares today (in order of share price growth) are as follows:

• The Gold Road Resources Ltd (ASX: GOR) share price is up 5.15% to $1.89
• The Evolution Mining Ltd (ASX: EVN) share price is up 3.92% to $3.58
• The West African Resources Ltd (ASX: WAF) share price is up 3.32% to $1.01
• The Silver Lake Resources (ASX: SLR) share price is up 3.27% to $1.27
• The Northern Star Resources Ltd (ASX: NST) share price is up 2.61% to $13.95

Only one of these ASX 200 gold shares has company news today. That’s West African Resources.

What news is driving West African Resources shares?

West African Resources is a gold miner and developer with operations in Burkina Faso in West Africa.

Its flagship mine is the Sanbrado Gold Project. It also has other gold and copper-gold exploration permits in the same area.

West African Resources released its activities report and cash flow report for the March quarter today.

The company reported a 13% increase in gold production compared to the December quarter and reduced all-in sustaining costs.

It achieved unhedged gold sales of 48,208 ounces at an average price of US$1,878 per ounce. It generated $29 million of operating cash flow during the period.

As of 31 March, the company had $160 million cash on hand and $32 million in unsold gold bullion.

Executive Chairman and CEO Richard Hyde said:

We continue to benefit from rising gold prices as an unhedged gold producer, bolstering our cash
and bullion on hand, while investing in our growth.

WAF’s 100% unhedged Mineral Resources and Ore Reserves now stand at 12.6 million ounces and 6.4 million ounces of gold, respectively, following successful exploration drilling and feasibility programs in 2022.

Why is the gold price rising?

An improving gold price is benefitting all ASX 200 gold shares at the moment.

The commodity price breached the US$2,000 per ounce mark earlier this month. It hadn’t traded that high since March 2020 when it hit an all-time peak of US$2,069.40.

Today, the gold price is currently trading at US$1,997.85, down 0.1% at the time of writing.

The market is awaiting a series of economic data sets in the US this week on inflation, consumer sentiment, and Q1 gross domestic product (GDP).

The market is expecting another 0.25% increase in US interest rates when the Federal Reserve meets next week. However, Fed Fund futures indicate a more than 60% chance of a mid-year pause.

This is because of fears the US economy may be heading for recession.

We are yet to see whether the Fed’s monetary policy tightening has arrested inflation without causing an economic meltdown.

The Dallas Fed reports a continuing reduction in factory operations in Texas this month, and the highest monthly fall in nine months.

According to Trading Economics analysis, this is “highlighting the toll elevated borrowing costs took on the economy”.

Investors are also concerned that the US Treasury Department could reach its debt limits in the coming months. This is “prompt[ing] investors to avoid certain Treasury bills and pour into other assets”.

Gold typically receives more investor support during times of economic uncertainty.

The yellow metal is up 2.28% for the month and 5% year over year, according to Trading Economics.

What do the experts think?

Argonaut Resources portfolio manager David Franklyn believes gold will continue to outperform, boding well for ASX 200 gold shares.

Franklyn says:

We think there’s good dynamics around gold and gold companies. The margins will be improving with costs and gold price going up.

The post Why are ASX 200 gold shares leading the market today? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Better ASX gold share to buy now: Newcrest vs. Northern Star
• How has ASX 200 gold share Evolution Mining managed to surge 89% in 6 months?

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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Finding a ‘safe’ ASX dividend share is certainly easier said than done. Unlike a term deposit, a dividend-paying company has no ongoing obligation to maintain its shareholder payments every year. Only the best dividend shares manage to keep their dividends stable and rising over a long period of time.

Often, this is only obvious in hindsight. But we can still make an educated guess about which ASX divided shares may be the safest based on a number of factors. These include a company’s business model, its dividend payout policy, and of course its history of paying its shareholders passive income.

So with that in mind, let’s go through five ASX shares that I think offer the safest dividends on the market today.

5 ASX dividend shares that I think offer the market’s safest yields

Coles Group Ltd (ASX: COL)

Coles is a company we all know, probably use, and may or may not love. But there is certainly a lot to love when it comes to Coles’ dividends. This ASX 200 share only joined the ASX in its own right in 2018. But since then, Coles has built up an admirable dividend track record.

Every single year since 2019, Coles has given its investors a decent dividend pay rise. In 2020, the company was paying out 57.5 cents per share in dividends, but raised this to 61 cents per share in 2021 and 63 cents per share in 2022. 2023 is also off to a good start, with Coles paying out an interim dividend of 36 cents per share, up from 33 cents in 2022.

Given Coles’ business is consumer staples goods, this is one ASX share that I have a lot of confidence in for sustainable dividends going forward. Coles offers a trailing, fully franked dividend yield of 3.58% right now.

Brickworks Limited (ASX: BKW)

ASX 200 construction materials company Brickworks is next up. Brickworks has one of the best dividend track records of any share on the ASX. It hasn’t given investors a dividend miss or cut since the 1970s.

Brickworks is a company with a few diversified earnings bases. Its construction materials business is its crown jewel, but the company also uses other investments in property and shares to smooth out its cyclical earnings. It has been so successful at this that the company hasn’t missed an annual dividend pay rise since 2013.

History speaks volumes, so I’m happy to include Brickworks on this list today given its unrivalled commitment to paying out regular, uninterrupted shareholder income. Today, Brickworks shares offer a fully franked dividend yield of 2.56%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts comes in at the number three spot today. This company is another ASX share that can boast of dividend royalty. This investment house is one of the oldest companies in Australia, with a history that predates even the ASX.

Today, Soul Patts functions as a giant managed fund of sorts, investing in other ASX shares and investments on behalf of its shareholders. This company is one of the favourite companies on the ASX, period. It has an incredible history of delivering stellar investing performance for its investors over many decades. One of the aspects of this performance is dividends.

Like Brickworks, Soul Patts can boast of having one of the ASX’s best track records. In this case, Soul Patts is the only ASX share that has given investors an annual dividend pay rise every single year since 2000. That alone is enough to give me the confidence to call this company one of the ASX’s safest dividend shares. Right now, Soul Patts offers a yield of 2.49%, fully franked.

Telstra Group Ltd (ASX: TLS)

When it comes to dividends, Telstra has a far spottier record than most ASX blue chip shares. Many investors with a long memory might remember the dark days of 2017-2018 when Telstra slashed its dividends by almost half. But since then, I think Telstra has repaired its ‘steady income’ image with aplomb.

The company is no longer facing the destructive headwinds of the NBN rollout. Telstra continues to dominate the Australian telecommunications market, which in itself is a highly defensive and inelastic market. As such, I regard Telstra’s dividend today as rock solid and would be happy to own it for long-term dividend income.

Even better, Telstra has recently delivered its first dividend hike in years, with the company paying out 16.5 cents per share in dividends in 2022. Its most recent interim dividend of 8.5 cents per share was also a nice increase over last year’s payout of 8 cents.

Telstra is offering a trailing and fully franked dividend yield of 3.95% at present.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, let’s talk about this exchange-traded fund (ETF) from Vanguard. This one is a little different because the income an index fund like this provides can be quite cyclical. But I’ve included it for this reason: whatever income the ASX share market pays out as a whole, you will get a slice of it.

This index fund holds every company on the S&P/ASX 300 Index (ASX: XKO), in proportional weighting. So you get everything from BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS) to Coles, Telstra, and Brickworks.

If dividends from all ASX shares as a whole are strong, the dividends of this ETF should be strong as well. In weaker years, income might fall. But I still think it’s a great source of dividend income for any investor seeking it. This ETF currently offers a trailing distribution yield of 5.43% today.

 

The post 5 dividend shares I think are among the safest on the ASX appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
• I think this underrated reason is key to why ETFs can be great investments
• Here’s why Goldman Sachs just became even more bullish on Telstra shares
• 5 things to watch on the ASX 200 on Wednesday
• Better ASX blue-chip share to buy for safe returns: CBA vs. Telstra

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Coles Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. 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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The S&P/ASX 200 Index (ASX: XJO) can be a very good place to look for investment opportunities because some of the ASX 200 shares in the index are delivering global growth.

I think Australia is a great country for companies to do business in, however, it has a population of less than 30 million. But, if a company is growing overseas then it has opened up a much larger addressable market to grow into over time.

Having more room to grow means that the business could theoretically grow its profit more, which could also mean stronger share price growth and dividend growth. With that in mind, I think the below two ASX 200 shares have long growth runways.

Breville Group Ltd (ASX: BRG)

Breville describes itself as an iconic global brand that designs and sells kitchen appliances in over 70 countries. It sells things like coffee machines, juicers, blenders, ovens, air fryers, microwaves, cookers, kettles and ice cream makers.

The Breville share price is down close to 20% over the past year, giving investors a much cheaper potential entry price. It continued to report growth in the FY23 first half, with revenue growth of 1.1% and net profit after tax (NPAT) growth of 1.3%. That was despite all of the economic impacts of inflation and higher interest rates during the period.

Breville is expecting a “healthy” cash inflow in the second half as receivables are collected and a more predictable supply chain allows for a return to a more normal inventory flow model.

The ASX 200 share is doing its best to achieve growth over the long term, with new product launches, a growing direct-to-customer channel, new geographies maturing and cost improvements.

In FY23, the business is expecting to achieve earnings before interest and tax (EBIT) of between $165 million to $172 million, which would be 5% to 10% growth from the previous year.

According to Commsec, Breville is valued at 21 times FY25’s estimated earnings.

Premier Investments Limited (ASX: PMV)

Premier Investments is a retail business with a number of apparel brands including Just Jeans, Portmans, Dotti, Jacqui E, Jay Jays and Peter Alexander. The ASX 200 share also owns Smiggle, a business that sells stationery and other useful products (such as bags, lunch boxes and drink bottles) where Smiggle has partnered with brands to put imagery from movies (like Harry Potter), games (like Minecraft) and sports (such as the AFL).

The ASX 200 share also owns a substantial stake in the retailers Breville and Myer Holdings Ltd (ASX: MYR).

While the apparel brands are largely based in Australia, Peter Alexander is currently “planning for future offshore market opportunities”, including a partnership agreement being finalised with a global cross-border e-commerce provider to “grow the brand internationally across 35 countries.”

Smiggle is already in a number of countries. The business believes there are door growth opportunities with its wholesale channel where it can gain more market share in existing markets, such as the Middle East, Indonesia and Thailand. It’s also exploring opportunities in both “existing and potential new markets.”

Smiggle believes that it can grow the proprietary business in existing regions by at least a further 30 stores, increasing the store count by between 10% to 15%, which “leverages the existing team and infrastructure and enables a faster rollout.”

Premier Investments is valued at 16 times FY25’s estimated earnings.

The post 2 ASX 200 shares I’d buy for global long-term returns appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. 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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The Rio Tinto Ltd (ASX: RIO) share price has recovered some of its sharper early morning losses but remains down 0.9% in early afternoon trading on Wednesday.

At the current $112.20 share price, the S&P/ASX 200 Index (ASX: XJO) miner is now down 9.1% since last Wednesday’s opening bell.

So, what’s going on?

Why is the ASX 200 mining stock under pressure?

Rio Tinto doesn’t solely mine iron ore.

The company also earns significant revenue from its copper and aluminium production.

But iron ore remains its largest revenue earner. Hence the price of the industrial metal has a large impact on the Rio Tinto share price.

Last Thursday, the miner reported record first-quarter iron ore shipments for the three months ending 31 March. And Rio received an average price of US$125 per dry metric tonne for the metal.

Which gives us some insight into why the Rio Tinto share price, alongside the other iron ore giants, has been selling off.

Not the record production, mind you.

But the price of iron ore, which has been falling hard since notching recent highs of US$132 per tonne on 15 March.

The price of the industrial metal slid another 2% overnight to US$102 per tonne. It was just last Wednesday that it was trading for US$120 per tonne.

Now that’s still well above the recent lows of US$78 per tonne posted in early November.

But with Chinese steel mills cutting back production and steel prices remaining depressed, the hoped-for resurgence in demand from the world’s number two economy’s reopening hasn’t played out the way many analysts expected.

And in what could throw up more headwinds for the Rio Tinto share price, analysts at Citi forecast the iron ore price could retrace to US$90 per tonne before finding support.

“We have been cautious on China’s steel demand and iron ore amid an uneven economic recovery and heightened policy risk, though things have unravelled sooner than our base case,” Citi analyst Wenyu Yao said.

But Goldman Sachs, for one, doesn’t appear to be fazed by the short-term pullback in iron ore prices.

Goldman has a buy rating on Rio Tinto shares with a $136.20 price target. That represents a 21% upside from current prices.

Rio Tinto share price snapshot

As you can see in the chart below, the Rio Tinto share price remains up 3% over the past 12 months, despite the recent pullback.

Shares in the ASX 200 miner have gained 27% since iron ore’s recent lows on 1 November.

The post Why has the Rio Tinto share price dived 9% in 5 days? appeared first on The Motley Fool Australia.

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• Investing in ASX 200 mining stocks? Here’s Citi’s latest iron ore price forecast
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• Is the Rio Tinto share price a buy at under $120?
• Why Bank of Queensland, Lithium Power, Piedmont Lithium, and Rio Tinto are falling
• Goldman Sachs says the Rio Tinto share price is ‘compelling value’ after Q1 update

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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.

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The S&P/ASX 200 Index (ASX: XJO) salvaged some of its losses on news Australian inflation eased last quarter.

The index rebounded this afternoon to trade at 7,317.8 points at the time of writing, just 0.06% lower than it finished Monday’s session. That’s up from its intraday low of 7,285.3, which had marked a 0.5% fall.

Its recovery came as the Australian Bureau of Statistics (ABS) revealed the consumer price index (CPI) rose 7% over the 12 months to the March quarter. That marks a notable drop on the 30-year high of 7.8% reached in the December quarter.

What did the ABS report?

Australia’s CPI rose 1.4% in the March quarter, or 7% over the 12 months prior. That was the lowest quarterly rise since December 2021. Meanwhile, core inflation was 6.6%, down from 6.9% last quarter.

ABS head of prices statistics Michelle Marquardt commented on the latest CPI data, saying:

While prices continued to rise for most goods and services, many of these increases were smaller than they have been in recent quarters.

Annual inflation for goods of 7.6% was down from the 9.5% recorded in December, due to price falls for goods such as furniture, household appliances and clothing in the March quarter, as well as automotive fuel prices easing in recent quarters. However, annual inflation for services was 6.1%, up from 5.5% in the December quarter and is the highest since 2001.

What does easing inflation mean for the ASX 200?

As mentioned up top, the market has responded positively to the latest inflation figures.

That’s likely due to the impact they might have on the Reserve Bank of Australia’s (RBA’s) next interest rate decision, to be made on Tuesday.

The RBA put forward ten consecutive rate hikes between May 2022 and March 2023 in an effort to combat rising inflation by tightening consumer spending. It paused its streak in April, to the relief of investors and borrowers alike. The cash rate currently sits at 3.6%.

While the inflation rate remains well above the RBA’s target of 2% to 3%, the drop still brings hope the rate hiking cycle may have broken.

Betashares chief economist David Bassanese tweeted shortly after the latest CPI data dropped, saying:

[T]hat’s good enough! No RBA rate hike next week, and still see no further hikes this year.

CreditorWatch chief economist Anneke Thompson, however, disagrees. She says inflation is “still showing cause for concern” and will likely result in another hike at Tuesday’s RBA board meeting.

Speaking in Canberra, Treasurer Jim Chalmers commented that today’s release shows “inflation has passed its peak and is now moderating,” according to The Australian.

The post ASX 200 trims losses on latest inflation news appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgans, its analysts have retained their add rating on this mining giant’s shares with a slightly trimmed price target of $50.40. While BHP’s third-quarter update was short of consensus estimates, it was in-line with what Morgans was expecting. In light of this, the broker believes that investors should be taking advantage of any share price weakness to accumulate shares. The BHP share price is trading at $43.68 on Wednesday.

Telstra Group Ltd (ASX: TLS)

Analysts at Goldman Sachs have reiterated their buy rating on this telco giant’s shares with an improved price target of $4.70. According to the note, the broker has boosted its earnings estimates to reflect larger than expected mobile price increases. Goldman expects prices to increase by $4-6 per month now, compared to its previous forecast of a $2-3 per month lift. The Telstra share price is fetching $4.31 today.

Xero Limited (ASX: XRO)

A note out of UBS reveals that its analysts have upgraded this cloud accounting company’s shares to a buy rating with an improved price target of $109.00. UBS believes that Xero is well-placed to deliver stronger than expected free cash flow in the coming years. Particularly given its belief that its strong growth will continue despite its recent cost reductions initiative. The Xero share price is trading at $93.50 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Down 8% in a week, is the BHP share price facing more headwinds in 2023?
• Investing in ASX 200 mining stocks? Here’s Citi’s latest iron ore price forecast
• Here’s why Goldman Sachs just became even more bullish on Telstra shares
• Pro Medicus shares: Bull vs. Bear
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro 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 Telstra Group and 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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The All Ordinaries Index (ASX: XAO) is sliding 0.15% today, but this ASX All Ords stock is falling further.

The Synlait Milk Ltd (ASX: SM1) share price is tumbling 22.96% at the time of writing, currently trading at $1.51 a share.

Let’s take a look at what this ASX All Ords stock reported to the market today.

What’s going on?

This ASX All Ords stock appears to be sliding today amid a guidance downgrade and news of lower milk prices.

Synlait expects to deliver an FY23 result of between a net loss of $5 million and a net profit after tax (NPAT) of $5 million.

This is down from the company’s previous prediction of profit between $15 to $25 million.

Looking ahead, Synlait is aiming to broaden its customer base, lower risk, lessen its cost base, and improve its balance sheet.

Explaining the guidance upgrade today, Synlait said:

Further Advanced Nutrition demand reductions, mostly from one of Synlait’s customers, which impact consumer-packaged infant formula volumes and base powder production, are expected to have an NPAT impact of approximately $16.5 million in FY23.

The remainder of the NPAT impact (approximately $3.5 million) is attributable to less material factors, including higher financing and supply chain costs.

Meanwhile, Synlait has also downgraded its outlook for the base milk price in the 2022/2023 season to $8.30kgMS. This is down from a previous forecast of $$8.50/kgMS

The company noted the “slower than expected” Chinese recovery and “negative shift in sentiment towards the broader global economy” have resulted in “falling commodity prices”.

Share price snapshot

The Synlait Milk share price has lost 51% in the last year.

This ASX All Ords stock has a market capitalisation of about $333 million based on the latest share price.

The post Why did this ASX All Ords stock just crash 23%? appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Mesoblast, Mineral Resources, and Synlait shares are sinking
• 2 small-cap ASX shares this fund manager is excited about
• Why Atlas Arteria, Kingsgate, Kogan, and Synlait Milk shares are dropping today
• Why Lake Resources, Latitude, Synlait, and Woodside shares are falling today
• Guess which ASX All Ords stock is plummeting following an 80% profit dive

Motley Fool contributor Monica O’Shea 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. The benchmark index is currently down 0.1% to 7,314.2 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 4% to $5.49. This morning, A2 Milk revealed that it has lowered its total forecast production volume needs for English label consumer-packaged infant milk formula by ~1,650 metric tonnes for the period March through to June. This is due to significant daigou weakness, inventory build-up, and distribution model adjustments.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down almost 12% to 87.5 cents. This follows news that Mesoblast has undertaken a private placement to its existing major US, UK, and Australian shareholders. The biotech company raised approximately US$40 million at a discount of 85 cents per share.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 9% to $72.91. Although the mining and mining services company just reported a record quarter for its lithium operations, its mining services business had a very tough time. This has seen the company downgrade its guidance accordingly. Management also warned that its lithium operations are likely to achieve only the low-end of their guidance range.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price has crashed 20% to $1.50. This morning, this dairy processor downgraded its full-year earnings guidance by NZ$20 million less than a month after releasing it to the market. It now expects earnings in the range of a NZ$5 million loss to a NZ$5 million profit. This was driven largely by A2 Milk’s reduced demand for infant formula.

The post Why A2 Milk, Mesoblast, Mineral Resources, and Synlait shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX All Ords stock just crash 23%?
• Why did the Mesoblast share price just dive 12%?
• Mineral Resources share price tumbles 9% despite record quarterly lithium shipments
• A2 Milk share price on watch following worrying update
• Here are the top 10 ASX 200 shares 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 recommended A2 Milk. 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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