Can the All Ords hit 8,000 points by the end of the year?

A woman looks quizzical as she looks at a graph of the share market.

Back in July, we looked at one fund manager’s bold prediction that the S&P/ASX 200 Index (ASX: XJO) will hit 8,000 points by the end of the 2021 calendar year, with the All Ordinaries Index (ASX: XAO) presumably well above that level.

Seeing as it’s towards the back end of October now, and the ASX 200 is presently at 7,441 points at the time of writing, the window for this prediction to come true is narrowing. Especially if you consider that global investment manager Research Affiliates was basing this prediction on rising commodity prices at the time. I’m sure the good investors over at Research Affiliates weren’t to know that the iron ore price was about to have the floor pulled out from under it.

But what of the All Ords? Sure, it may not be as followed as its younger sibling the ASX 200, these days. But it’s sure sitting a lot closer to 8,000 points than the ASX 200 is right now at the present 7,754 points.

Can the All Ords hit 8,000 points by the end of the year?

So what would it take for the All Ords to hit 8,000? Well, it already got mighty close. Back in mid-August, the All Ords hit what is now its all-time high of 7,902.2 points. On that day, the ASX 200 also hit its current high watermark of 7,632.8 points.

We would only need the All Ords to put on around 1.8% from today’s levels to hit that number, and another 1.25% roughly to hit 8,000 points.

All we would really need is the big four banks, or perhaps BHP Group Ltd (ASX: BHP) or CSL Limited (ASX: CSL), to have another terrific month, and we’d probably be there. That’s because, just like the ASX 200, the All Ords’ share weightings are dominated by these companies, the largest by market capitalisation on the ASX boards.

So how likely is this scenario? Well, no one seems to be too keen to make the call, at least recently. A few months ago, a survey conducted by the Australian Financial Review (AFR) found that “the majority of equity strategists surveyed… forecast the benchmark [ASX 200] will only add a little more than 2 per cent by Christmas”. That’s going from the 7,300 point mark at the time, implying an ASX 200 at 7,500 points at the end of the year.

We can extend this prediction to a rough level of 7,800 points for the All Ords. Those providing this prediction include brokers JPMorganCredit Suisse and UBS.

But that was then, and commentators have been comparatively silent in the months since. As per usual, we will probably have to wait until 31 December to actually have any idea of where the All Ords will end up at the end of 2021. As they say, the waiting is the hardest part!

The post Can the All Ords hit 8,000 points by the end of the year? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns shares of JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Can the Lynas (ASX:LYC) share price fall to $4 by the end of 2021?

ASX shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options

Is it possible that the Lynas Rare Earths Ltd (ASX: LYC) share price could drop to just $4 by the end of the 2021 calendar year?

One broker thinks that Lynas shares are headed lower from where they are today.

But time will tell how if, and how much, it falls.

A price target is where a broker feels a share price will be in 12 months from now, not necessarily at the end of the 2021 calendar year.

Brokers regularly update their thoughts about a business. Some businesses are more commonly covered than others.

One of the brokers that covers Lynas is Ord Minnett.

Price target for the Lynas share price

Ord Minnett has a price target on Lynas of $4.30. That suggests that the broker believes that Lynas shares could fall by around 40% over the next 12 months.

The broker noted the high levels of cash that the business has achieved and its good production.

Strong commodity prices are helping Lynas’ profit and cashflow.

Whilst the business has done well with its operations, the broker is cautious after the strong run of the Lynas share price.

Over the last six months, the Lynas share price has risen by 29% and in the last year has gone up by 141%.

FY22 first quarter update

The resource business recently released its update for the first quarter of FY22.

Lynas said the global COVID-19 pandemic continues to present challenges and opportunities for the Lynas business in the quarter ending 30 September 2021.

Strong demand from the magnet market and increased market price for neodymium and praseodymium (NdPr) continued as economies recovered from the pandemic.

In terms of the numbers, invoiced revenue for the quarter was $121.6 million, the second highest quarterly result recorded for Lynas. The fourth quarter of FY21 showed $185.9 million of sales revenue.

Sales receipts for the FY22 first quarter amounted $92 million, compared to $192 million in the prior quarter.

Lynas ended with a closing cash balance of A$667.3 million, compared to $680.8 million at the end of FY21.

In terms of production, the company said that total rare earth oxide (REO) production was 3,166 tonnes, down from 3,778 tonnes in the last quarter of FY21. NdPr production was 1,255 tonnes, down from 1,393 tonnes in the prior quarter.

The Lynas share price has fallen 4.5% since the market learned of this update.

Lynas 2025 project

The company also gave a number of updates about its Lynas 2025 project.

Kiln components are en route to Australia, with 70% of procurement now complete. It also said that 70% of the procurement is now complete.

A process water agreement has been signed with the City of Kalgoorlie-Boulder.

On 20 October e2021, the WA EPA recommended the Kalgoorlie rare earth processing facility for environmental approval.

Lynas share price valuation

Based on the Ord Minnett projection, Lynas shares are valued at 17x FY23’s estimated earnings.

The post Can the Lynas (ASX:LYC) share price fall to $4 by the end of 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lynas right now?

Before you consider Lynas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lynas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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

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Huon (ASX:HUO) share price leaps 6% on takeover update

A young boy laughs with his grandpa as he puts a fishing net over his head.

The Huon Aquaculture Group Ltd (ASX: HUO) share price regained momentum on Monday afternoon. Shares in the Aussie salmon farmer finished the day at $3.83, up 6.7%.

Investors are making a grab for Huon shares after the company released an update this afternoon. The contents of the release relate to the approvals needed for the proposed buyout by Brazil-based meat processor, JBS SA.

Here’s what we know following the update.

Another hurdle cleared

While the takeover of Huon by JBS is not new, the details of its progression are. According to the release, JBS’ takeover offer of $3.85 cash per Huon share has received approval from the Foreign Investment Review Board (FIRB).

This means the Commonwealth has made no objections to the Australian company being bought out by the foreign company, JBS. Shareholders are clearly excited, reflected in the higher Huon share price today.

The Huon board is now left to deliberate whether it will pay a special dividend worth 12.5 cents per share. This would allow shareholders to enjoy a further 5 cents per share in franking credits.

Additionally, the company disclosed that no further bids were received after the JBS schemes were announced on 6 August 2021.

Management commentary

Commenting on the FIRB approval, Huon chair Neil Kearney said:

The FIRB decision is another important step in securing the future of Huon, our 800-plus employees and the hundreds of Tasmanian businesses that work with our company. In addition to its commitment to invest in the business and our people, JBS has committed to maintaining our world-leading farming practices to support long-term sustainable growth.

Huon has established the highest standards of animal husbandry, biosecurity, environmental management, and sustainable farming practices and JBS will continue this uncompromising approach. Importantly, JBS also has the proven skills and expertise to access new international markets for Huon’s premium products.

What’s next for the Huon share price?

The Huon annual general meeting (AGM) and scheme meetings will be held on 29 October. If shareholders approve the scheme, the company expects Huon shares will be suspended from trading at market close on 3 November.

The Huon share price has returned 38.9% to its shareholders over the past year. At its current share price, Huon trades on a price-to-earnings (P/E) ratio of 43.9 times.

The post Huon (ASX:HUO) share price leaps 6% on takeover update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Huon Aquaculture Group right now?

Before you consider Huon Aquaculture Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Huon Aquaculture Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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

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Strike Energy (ASX:STX) share price tumbles 3%, hits new 52-week low

Man in shirt and tie falls face first down stairs

The Strike Energy Ltd (ASX: STX) share price plummeted today, hitting a new 52-week low in intraday trade.

Interestingly, the dip comes despite no price sensitive news being released by the company. However, it did inform the market its deputy chair will face court in Western Australia over an alleged quarantine breach.

As of Monday’s close, the Strike share price is 17 cents, 2.86% lower than its previous close.

Earlier today, the company’s stock plunged to a new 12-month low of 16.5 cents, representing a single-day drop of 5.7%.

Making the dip even more noteworthy is the fact many of the company’s peers surged higher. While Strike isn’t on the S&P/ASX 200 Energy Index (ASX: ZEJ), it’s worth noting the index gained 2.7% on Monday.

Let’s take a closer look at the non-price sensitive news released by the oil and gas explorer today.  

Strike Energy share price slides amid border drama

The Strike Energy share price fell today after the company’s deputy chair, Neville Power, was summoned to appear in court.

The company stated Power will face court for a matter relating to Western Australia’s quarantine laws.

According to ABC News, Power and another man failed to complete a G2G Pass before travelling into Western Australia. A G2G Pass is is a measurement to help the Western Australia Police Force manage COVID-19 travel directions.

The two men allegedly helicoptered to Exmouth from Queensland. They then reportedly continued to Perth’s Jandakot Airport, stopping at Carnarvon and Geraldton for fuel.

In addition to his role as deputy chair of Strike Energy, Power is chair of Perth Airport and the Royal Flying Doctor Service.

Power also chaired the National COVID-19 Coordination Commission, a body designed to minimise the impact of COVID-19 on jobs and business and ready the country for a speedy recovery.

Strike Energy stated Power will continue his duties as a director of the company.

The post Strike Energy (ASX:STX) share price tumbles 3%, hits new 52-week low appeared first on The Motley Fool Australia.

Should you invest $1,000 in Strike Energy right now?

Before you consider Strike Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Strike Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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

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

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