You don’t need a massive amount of cash to kick off an investment that could pay out a perpetual second income.

Don’t believe me?

Let’s start with $20,000 and take it through this hypothetical:

Save, save, save, invest, invest, invest

Say you constructed a well diversified portfolio of ASX shares with that $20,000.

Then you saved hard and managed to add $400 to it each month.

If that portfolio can manage a compound annual growth rate (CAGR) of 13%, then you’ll be raking in that second income in a matter of years.

Is 13% achievable?

I don’t see why not. 

If you listen to sensible advice and pick quality stocks like Johns Lyng Group Ltd (ASX: JLG) and Dicker Data Ltd (ASX: DDR), you’ll have done most of the hard work.

Over the past five years, Johns Lyng shares have returned a CAGR of 43%, while Dicker has brought in 30% per annum. The latter is paying out a 3.9% fully franked dividend yield on top of that.

These types of champions mixed with some lukewarm picks and the obligatory duds could very well provide you an overall 13% return each year.

Now sit back as the second income rolls in

Going back to the $20,000 portfolio with $400 added monthly, if that grows at 13% per annum then it will be worth $156,306 after just 10 years.

At that point, if you decide to stop reinvesting the returns and decide to cash it in each year, you will receive an annual second income of $20,319.

That is an average of $1,693 each month for the rest of your life.

Now, if you are still young and you have patience, perhaps you want to let that stock portfolio grow for 20 years before squeezing passive income out of it?

Twenty years of growth will turn the pot into $619,006, which equates to a massive annual second income of $80,470.

In monthly terms, that’s an amazing $6,705.

Enough to retire on, right?

Perhaps then it won’t be a second income, but your first.

Good luck with your investments.

The post $20k of savings? Here’s how I’d aim to turn that into a second income of $6,705 a month! appeared first on The Motley Fool Australia.

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

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

More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• 2 ASX 200 shares I’d buy for my child and hold ’til the 2030s
• ASX passive income: How much should you invest to earn $1,000 every month?
• Dicker Data shares charge higher on dividend boost
• Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data and Johns Lyng Group. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Becoming wealthy with ASX shares is a goal that many of us share.

And while there are no guarantees which the share market, history shows that it is possible to become a millionaire through investing in high quality ASX shares.

Generally, this takes a long period of consistent investing, allowing compounding to work its magic.

However, every so often the Australian share market has produced a few ASX shares that do all the heavy lifting for you (and quickly).

These are millionaire-maker shares.

They are usually labelled this if they generate a return of 1,000% over a period of time.

That’s because this return would turn a $10,000 investment in a cool $1 million.

Millionaire-maker ASX shares

A recent example of a millionaire-maker ASX share is Wildcat Resources Ltd (ASX: WC8).

Less than 12 months ago the lithium explorer’s shares were changing hands for 3 cents per share.

This means that if you had invested $10,000 into Wildcat’s shares, you would have picked up approximately 3.33 million units.

Today they are trading at around 47 cents, which values that holding at over $1.5 million.

Though, it is worth highlighting that sinking $10,000 into a mining stock with a 3 cents share price is more or less gambling unless you really know what you’re doing. Investors (or speculators) frequently lose large sums of money from taking a punt on a penny stock.

So, investors may be better off looking for ASX shares with explosive growth and proven business models and allowing them a little more time to grow your wealth.

But which ASX shares?

Two ASX shares that brokers are tipping to have extremely bright futures are location technology company Life360 Inc (ASX: 360) and quick service restaurant solutions company TASK Group Holdings Limited (ASX: TSK).

Goldman Sachs currently has a buy rating and $10.50 price target on Life360’s shares. It notes that the company has a US$12 billion opportunity (and growing). Whereas it is currently reporting annualised monthly revenue (AMR) of $259.1 million.

As for TASK Group, Bell Potter has a buy rating and 59 cents price target on its shares. Its products are used by Guzman Y Gomez for point of sale, data warehouse, enterprise management, online ordering, and loyalty. It also counts McDonald’s Corp (NYSE: MCD) as a customer.

Whether they will be millionaire-maker ASX shares, only time will tell. But they’re certainly worth a closer look.

The post 2 ASX shares with millionaire-maker potential appeared first on The Motley Fool Australia.

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

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

More reading

• Analysts tip 10% to 30% returns for these ASX growth shares in 2024
• Why I think Life360 shares are one of the best bargains out there
• Brokers name 3 ASX shares to buy now
• 5 ASX shares I think you can confidently invest $500 in right now
• Buy these ASX growth shares for 20% to 40% returns

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 Goldman Sachs Group and 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.

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

It doesn’t matter if you think a recession is coming or boom times are ahead, there are some businesses that are simply set up for a renaissance.

There are a couple of bargain stocks at the moment that I think are in that enviable position:

‘Strong brands and a quality management team’

After falling more than 8% since late October, the market is getting antsy about Treasury Wine Estates Ltd (ASX: TWE).

In 2020, the company lost the Chinese export market overnight in 2020 due to diplomatic tensions between Beijing and Canberra. 

But a review of the punitive tariffs in the world’s most populous nation is reportedly due out next month.

With relations between the countries somewhat warmer under the current federal government, there is much anticipation that Treasury Wine could have a massive market restored instantly.

“Lifting tariffs, or significantly reducing them, should ignite demand for Treasury Wine’s Penfolds brand,” Shaw and Partners senior investment advisor Jed Richards told The Bull.

“The company offers strong brands and a quality management team.”

Those who invest for a living are loving Treasury Wine’s prospects at the moment.

According to CMC Invest, 12 out of 14 analysts believe the stock is a buy.

Ugly duckling no more?

It’s been a rough few years for Credit Corp Group Limited (ASX: CCP) shares.

As a debt buyer, its business increases when consumers fall behind in their loan repayments.

First, the COVID-19 pandemic came and the market thought Credit Corp’s business would go gangbusters.

It didn’t.

Then inflation started rising and central banks hiked up interest rates until there were nose bleeds. Consumer wallets started getting lighter and lighter.

Credit Corp still couldn’t make hay.

So after five years, the share price is disappointingly down 14.5%.

But there are signs in the last few months that Credit Corp might have finally turned a corner.

The analysts at Celeste noticed that US collections productivity showed “steady improvement” last year after an awful 2022.

“The US delinquency environment has stabilised since the AGM, with debt ledger prices significantly lower,” read their memo to clients.

“The lending business experienced strong demand, with net lending guidance upgraded from $50 million to $145 million.”

And guess what? The Credit Corp share price has now gained a whopping 56% since 18 October.

Plenty of experts reckon it’s still a bargain stock. Six out of nine analysts currently surveyed on CMC Invest rate the stock as a buy.

The post 2 top ASX bargain stocks that could be ready for a bull run appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Morgans names the best ASX 200 dividend shares to buy in February
• 2 rejuvenated ASX 200 stocks with ‘strong brands’ ready to roar again
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now

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 recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

It’s hard to beat owning some ASX dividend stocks that pay you a great yield and offer major capital gain potential.

But which ASX dividend stocks could offer this winning combination today?

Three shares that analysts are tipping as buys with market-beating total returns are listed below.

Here’s what they are expecting from them:

Coles Group Ltd (ASX: COL)

The first ASX dividend stock that could be a top buy is supermarket giant Coles.

That’s the view of analysts at Citi, which have a buy rating and $17.50 price target on its shares. This suggests 10% upside for investors.

While Citi expects a reasonably subdued performance in FY 2024, it is predicting strong earnings growth in FY 2025 and FY 2026.

The broker believes this will underpin fully franked dividends per share of 64 cents in FY 2024, 70 cents in FY 2025, and then 79 cents in FY 2026. Based on the current Coles share price of $15.97, this will mean yields of 4%, 4.4%, and 4.95%, respectively.

Endeavour Group Ltd (ASX: EDV)

Another ASX dividend stock that brokers rate as a buy is BWS and Dan Murphy’s owner Endeavour.

Goldman Sachs is fan of the company due to its “clear market leading position.” It has a buy rating and $6.40 price target on the company’s shares, which suggests upside of almost 19%.

In respect to dividends, Goldman is forecasting fully franked dividends of approximately 21 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Endeavour share price of $5.41, this will mean yields of 3.9% and 4.25%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Finally, Citi is tipping big returns from the shares of this residential and land lease developer and retail, logistics and office real estate property manager.

The broker has a buy rating and $5.00 price target on Stockland’s shares, which implies approximately 9% upside from current levels.

As for income, the broker expects a 27 cents per share dividend in both FY 2024 and FY 2025. This represents 5.9% dividend yields.

The post 3 no-brainer ASX dividend stocks to buy for market-beating returns in 2024 appeared first on The Motley Fool Australia.

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

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

More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Why Goldman Sachs rates these ASX 200 shares as buys
• 7 must-see results this ASX reporting season before buying or selling
• Citi says Coles and these ASX dividend stocks are buys
• Falling yields? I’d buy these ASX dividend beasts for a beefed-up income in 2024

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3vc7xYh

One of the biggest challenges for long-term investors is to keep the faith when a business is going through tough times.

There are plenty of moments when faith will be tested, but as long as the original investment thesis still holds and any problems are deemed to be temporary, long-termers need to fight through their anxiety.

Here’s a pair of such cheap shares representing quality companies that could be a bargain right now:

Japan ‘disappointing’, but home market still going strong

As the dominant pizza retailer in the country, Domino’s Pizza Enterprises Ltd (ASX: DMP) used to be a market darling.

But a series of missteps in recent times has seen the stock price plummet more than 74% since September 2021.

Unfortunately, 2024 is off to a shocker as well.

After a January briefing to the market, Domino’s share price plunged 31% in a single day.

Bell Potter advisor Christpher Watt agreed the earnings update was “disappointing”.

“The business in Japan is underperforming and weighing on group performance,” Watt told The Bull.

“However, results in Australia and New Zealand were positive.”

That’s why the Bell Potter team thinks it could be an ideal entry point for the fast food stock.

“We believe the stock has been oversold as Domino’s remains a leader in the sector.”

These cheap shares won’t stay down for long

While Chrysos Corporation Ltd (ASX: C79) was one of the darlings of 2023, the new year has been less kind.

The share price has dived 18% since 10 January.

“Chysos was recently sold down after missing revenue expectations in the second quarter of fiscal year 2024,” said Shaw and Partners senior investment advisor Jed Richards.

Chrysos’ main product is named PhotonAssay, which tests samples for minerals like gold, copper, and silver on behalf of mining clients.

Richards is not worried about the downturn this year.

“Delays in the number of PhotonAssay unit installations reflect timing issues as opposed to a reduction in demand. 

“We view the share price reaction as overdone, presenting attractive entry levels for investors.”

The post 2 ‘oversold’ ASX shares to get onto right now at ‘attractive entry levels’ appeared first on The Motley Fool Australia.

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

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

More reading

• 2 ASX stock picks with explosive potential
• Brokers say these ASX mining shares are strong buys in February
• 6 oversold ASX shares to buy in February 2024
• Chair says his $2.8 billion Domino’s stock meltdown ‘doesn’t matter’
• These ASX 200 shares could rise 30% to 50%

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 positions in and has recommended Chrysos and Domino’s Pizza Enterprises. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/GPbtu7U

After two years of shocking underperformance, ASX small-cap shares made a stunning comeback towards the end of 2023.

“Despite the negativity that pervaded most of last year, the small cap market ultimately managed to deliver solid returns in 2023,” said IML analysts in a blog post.

“A rally late in the year saw the ASX Small Ordinaries up +7.8% for the calendar year, with the Small Industrials up +11.4%.”

Notwithstanding the recent run upwards, the IML team believes small caps are still playing catch-up.

“Small cap valuations remain attractive compared to large caps with superior earnings growth forecasts,” read the memo. 

“On an individual stock level there remain plenty of quality small cap industrials trading at attractive valuations.”

Here are three stocks in particular they’re loving right now:

Reliability of transport contracts 

Kelsian Group Ltd (ASX: KLS) is a transport provider that operates in Australia and various other countries.

The IML team likes how much of its revenue is consistent and reliable.

“The Australian, Singapore and UK operations are underpinned by long-term government contracts. 

“Effectively the earnings under these contracts are inflation-protected, providing a defensive earnings stream with growth coming from new bus routes and generating efficiencies.”

In the US, Kelsian’s clientele is the private sector, but those earnings are also reliable with “no patronage risk borne by the company”.

“With the revenue significantly contracted, recent tender wins in Sydney and the initial contribution of All Aboard America, Kelsian is well placed to deliver solid earnings growth in FY24.

“Further upside in FY25 is possible from further public bus contract wins in Australia and the UK, as well as bolt-on acquisitions in the USA.”

The Kelsian share price has rocketed more than 21% since early October, but the IML team reckons it still has legs.

“Kelsian’s valuation is conservative in our view, on 15 times FY25 earnings and a [dividend] yield of 4%.”

Reliability of an ageing population

Pathology services provider Australian Clinical Labs Ltd (ASX: ACL) had a busy time testing Australians during the COVID-19 pandemic, but since then the stock has been going sideways.

The demographic trends reassure IML analysts of its future though.

“Australia’s ageing population ensures ongoing growth in testing volumes, as older people are more likely to have health issues requiring regular monitoring. 

“The number of conditions able to be assessed by pathology testing continues to grow, also underpinning growth in volumes.”

In the short-term, business has been slower because of “doctor shortages and cost of living pressures”. 

“History indicates that these growth rates are likely to return to trend over time.”

ACL doesn’t have much debt and is in a position to make acquisitions. An attempt to merge with Healius Ltd (ASX: HLS) last year was aborted due to a poor business update on the other side.

“The synergies from such a merger are significant, making a future transaction an attractive opportunity, subject to [regulatory] approval. 

“Trading on only 13.5 times FY25 earnings and a yield of over 5%, we believe ACL is attractively priced.”

Reliability of outsourcing

SG Fleet Group Ltd (ASX: SGF) is the dominant player in Australia in the fleet management industry, and also operates in the UK and New Zealand.

The business has benefitted from two trends, according to IML analysts.

“The company is effectively an asset manager of large corporate fleets and has benefitted from the gradual outsourcing of fleet management services across government and corporate.

“SG Fleet also operates a novated fleet-leasing operation in Australia, which is benefitting from recent government initiatives to promote electric vehicle (EV) take-up in Australia.”

Its contracts are multi-year with a strong history of renewal.

The shortage in new cars arising from the pandemic and subsequent rise in trade-in values dented SG Fleet’s earnings.

“These factors have overshadowed recent results, creating noise in the results and hence creating uncertainty for investors, weighing on the share price.”

The downside, however, is now “excessively” priced in, the IML team added.

“SG Fleet is very attractively priced, trading on under 10 times FY25 earnings and a dividend yield of over 7%.”

The post 3 ‘attractive’ small-cap ASX shares ready to rocket in 2024 appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• What can owners of GQG shares expect in the upcoming FY23 result?
• How is the BrainChip share price rocketing 27% today?
• The Middle East, OPEC and the US: What can ASX 200 energy investors expect from the oil price in 2024?
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday

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.

from The Motley Fool Australia https://ift.tt/XIhH5uE

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

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

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

More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Why Challenger, Hansen, JB Hi-Fi, and Temple & Webster shares are surging today
• Challenger share price rockets 10% on half-year earnings
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Idp Education. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Challenger, Idp Education, and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The GQG Partners Inc (ASX: GQG) share price has soared more than 50% in the last three months. After such a strong performance, what can investors actually expect in the FY23 result which is scheduled to be released soon?

GQG is a large fund manager that’s based in the US and offers a number of different investment funds including global shares, US shares, international shares and emerging market shares. Some of its strategies are aimed at dividend stocks.

What could the company report?

The business is expected to release its FY23 report on Friday, 16 February 2024.

Let’s look at what we already know.

In the company’s recent funds under management (FUM) announcement for December 2023, it said that it finished the period with US$120.6 billion of FUM.

For the three months to December 2023, it saw net inflows of US$1.8 billion, and for the full year to December 2023, it experienced net inflows of US$9.9 billion. On a full-year basis, it expects to be amongst the biggest and best-performing fund management businesses in net fund inflows terms for active equity managers both in Australia and the US.

GQG also revealed that it started 2024 with a “promising pipeline for potential new business.”

Quite a few of its funds don’t charge performance fees, which is why nearly all of GQG’s revenue comes from management fees.

We also know the business has a stated dividend payout ratio of 90% of its distributable earnings, which means investors are likely to get a sizeable final dividend. 2024 is also shaping up to be a good year for owners of GQG shares.

FUM on 31 January 2024 was reported at US$127 billion, up 5.3% month over month, and this provides a strong tailwind for earnings in FY24.

Forecast

Goldman Sachs has estimated for FY23 that GQG may generate $505.4 million of total revenue (up 15.8%), pre-tax profit of $379.2 million (up 14.3%) and net profit after tax (NPAT) of US$274 million (up 15.2%).

Based on those numbers, GQG shares could be trading at 13 times FY23’s projected earnings.

The broker has also pencilled a dividend per share of $8.82, up 13.6%.

GQG share price snapshot

Since the start of 2024, the GQG share price has climbed by 22%.

The post What can owners of GQG shares expect in the upcoming FY23 result? appeared first on The Motley Fool Australia.

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

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

More reading

• Why the GQG share price is up 7% to a 52-week high and could keep rising
• Morgans names the ASX cyclical shares to buy for earnings season
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023
• Here are 10 ASX shares I’d buy in 2024
• Top ASX shares to buy in 2024 instead of investing in a term deposit

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/2upfXrv

It’s been a fairly mild day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares this Tuesday. At present, the All Ords has gained a tentative 0.093%, leaving it at just under 7,870 points. But ‘mild’ and ‘tentative’ are two words that no one would be using to describe the Brainchip Holdings Ltd (ASX: BRN) share price this session.

Brainchip shares are on fire today. The ASX artificial intelligence (AI) share closed at 26 cents a share yesterday afternoon. But this morning, the company opened at 28 cents a share before rocketing as high as 33 cents just after lunchtime today. That’s a gain worth almost 27%.

Since reaching that intra-day high, Branchip shares have cooled off a little. But the company is still asking 31 cents at present, up a still-impressive 19.23%.

So what on earth is going on here?

Why has the BrainChip share price rocketed 27% today?

Well, unfortunately, there’s not much to go on here. So the correct answer is: ‘who the heck knows’.

To elaborate, there hasn’t been any fresh news or announcements out of Brainchip for a while now. Since late January to be exact.

Brainchip’s last major announcement was the quarterly activities report, which was released on 25 January.

As we covered at the time, this report revealed that Brainchip’s cash balance had declined from US$17.8 million over the three months to 31 December to US$14.3 million. However, Brainchip also reported that it was able to achieve a positive cash inflow from customers over the period.

At the time, this report didn’t result in too much movement in the Brainchip share price.

However, as soon as February arrived, the company’s shares jumped on a rocket ship. At the end of January, Brainchip was trading for 16 cents a share. But by 6 February, those same shares had vaulted up 25% to 20 cents.

A month to remember

Between last Thursday (8 February) and yesterday’s close, the company had added an additional 30%. Added to today’s gains, Brainchip has now enjoyed a 50% surge since Thursday, and an 87.5% rise since the start of the month. Check that all out for yourself below:

But there’s no obvious reason at all why this stock has surged so much since the start of the month. Brainchip shares do seem vulnerable to more severe bouts of share price volatility than your ordinary ASX share though, as we covered last year.

Perhaps this is just a game that investors are playing with each other. Or perhaps someone is buying up shares en masse. Whatever, the reason, it’s certainly been a good month for this ASX AI share.

Saying that, the Brainchip share price does remain down by almost 50% since February 2023, and by roughly 82% since its 2021 record high.

The post How is the BrainChip share price rocketing 27% today? appeared first on The Motley Fool Australia.

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

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

More reading

• Here’s why BrainChip shares are making waves today
• Sliding Doors: Brainchip vs Xero shares

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

from The Motley Fool Australia https://ift.tt/f2rCxDt

The Brent crude oil price has held fairly steady at around US$82 per barrel since Friday.

That’s right near the top end of the trading range we’ve since 7 November, when the oil price was still coming down from the 28 September highs of US$97 per barrel.

And it’s well up from the lows of US$73 per barrel that Brent crude was trading for on 12 December.

With oil and gas prices tending to move in similar directions, albeit not at equivalent rates, you’ll notice some matching moves from S&P/ASX 200 Index (ASX: XJO) energy shares.

Here’s how these top Aussie oil and gas companies have performed since the recent high and low water marks.

Woodside Energy Group Ltd (ASX: WDS) shares, for example, are down 15% since 28 September. And Santos Ltd (ASX: STO) shares are down 8% over this period.

Turning to the 12 December oil price lows, the Woodside share price has gained 3% since then while the Santos share price is up 1%.

Did the forecasters get it wrong?

Heading into 2024, consensus forecasts were for Brent crude oil to trade in the US$80 to US$100 per barrel range over the year.

Yet here we are, halfway through February, and the oil price is stuck in the lower end of that range, with Brent having even dipped to US$77 per barrel earlier this month.

While that’s good news for motorists – not to mention ASX travel and transport stocks – it’s not so good for ASX 200 energy stocks.

With that in mind…

Can ASX 200 energy investors expect a higher oil price in 2024?

Here’s what could lift or sink the oil price in the months ahead.

Turning to the pressures first, there are a few predominant headwinds that could keep a lid on energy prices.

First, there’s the potential for a slowdown in global demand in 2024 as major economies like China are seeing a downturn in economic growth.

Second, it’s looking increasingly likely that interest rates in the United States (the world’s top economy), as well as in the EU, Australia and other nations could remain elevated for longer than most analysts were forecasting heading into 2024. This would take a bite out of household incomes, leading to decreased discretionary travel.

And third, there’s the United States, the world’s top oil producer thanks to the shale revolution.

According to data from the US Energy Information Administration (EIA), US crude oil production notched a fresh record high in December of more than 13.3 million barrels per day.

Now, US production slipped from that record in January. And the EIA doesn’t expect the nation to set new records until next February.

But even with the US pumping at levels just below December’s all-time highs, that’s a lot of oil hitting the markets every day.

Which brings us to what could lift the oil price and help boost ASX 200 energy shares in 2024.

First would be global economic growth, and the accompanying demand for oil and gas, increasing faster than the markets are currently pricing in.

Second, we have OPEC+. While the cartel’s pricing powers aren’t what they used to be, OPEC and its allies have committed to significant production cuts into the first quarter of this year. And with pressure from Saudi Arabia, I’d expect these cuts to continue so long as the oil price remains vulnerable to a pullback.

And the third factor that could send the oil price sharply higher and boost ASX 200 energy shares would be any major escalation in the ongoing conflict in the Middle East.

While this is the last thing we’d like to see, should the oil-rich region erupt into a wider regional war, traders could quickly send energy prices soaring.

The post The Middle East, OPEC and the US: What can ASX 200 energy investors expect from the oil price in 2024? appeared first on The Motley Fool Australia.

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

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

More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Guess which ASX tech stock is rocketing 16% on takeover news
• How much could $10,000 invested in Core Lithium shares be worth next year?
• How another acquisition could boost Woodside shares following the collapse of the Santos deal
• This 6.7% ASX dividend stock pays cash every month

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

from The Motley Fool Australia https://ift.tt/6WIFdAs