An anomaly not often discussed is that professional investors have a different remit to so-called retail investors.

While many retail investors are investing with a long horizon, fund managers are incentivised to make rapid changes to their portfolios because they have to report their performance every month, quarter, and year.

Mum-and-dad investors, therefore, actually have the advantage that they can persist with their investments for the long term. 

If the stock has a bad quarter or even a bad year, the average punter doesn’t have to anxiously cut it from their portfolio.

So it can be considered a bit of a gem if a professional investor picks a particular stock as a long-run prospect.

Here is one example from this week:

Invest in an ‘unregulated monopoly’

Speaking on a Market Matters Q&A, Shaw and Partners portfolio manager James Gerrish revealed a field trip his team went on.

“We visited this software developer in December hearing from their international technology teams who were out visiting their offices in Surry Hills,” he said.

“We believe this is a good company, with good people running it, a great product that has dominance in one area — audio.”

The business he’s talking about is Audinate Group Ltd (ASX: AD8).

Audinate is the creator of a networking protocol called Dante, which is used to digitally transmit audio data. It is useful for situations like concerts and conferences.

The protocol is fast becoming a standard, with many musical instruments and audio equipment from other manufacturers now selling with it built-in.

Audinate’s dominance of that market is such that Medallion Financial Group managing director Michael Wayne once called it a potential “unregulated monopoly”.

“You can liken it to Bluetooth, if you like. Except Bluetooth isn’t as good a technology and it’s owned by a cooperative.”

Gerrish’s team is also a believer.

“We maintain our bullish stance towards Audinate and see this as a medium to longer-term opportunity within our Emerging Companies Portfolio.”

Audinate shares closed Thursday at $7.25, which is more than 28% down from its August peak.

“We believe the stock’s good value under $8,” said Gerrish.

“Last week’s decline was a result of issues from the chip makers, with some chips now in oversupply but some remain hard to get. This has been an ongoing issue for companies like Audinate over recent years.”

The post ‘Great product, dominance in one area’: Expert names unique ASX share to buy appeared first on The Motley Fool Australia.

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More reading

• Expect 6%+ dividend yields from these ASX 200 shares: analysts
• 5 things to watch on the ASX 200 on Friday
• 3 small-cap ASX shares Celeste is riding off into the sunset on
• How to burn a billion dollars: AGL shares tumble 10% on painful half-year results
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has positions in Audinate Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. 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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Looking for ASX 200 dividend shares to buy for your income portfolio? If you are, then you may want to check out the two listed below that have been named as buys and tipped to offer big yields.

Here’s what analysts are saying about them:

ANZ Group Holdings Ltd (ASX: ANZ)

The first ASX 200 dividend share that has been named as a buy is ANZ Bank. It is of course one of the big four banks in the Australian market.

The team at Citi is bullish on the banking giant due to its belief that its net interest margin (NIM) will improve thanks to rising interest rates, boosting its top line. In addition, its analysts expect core earnings momentum to be supportive of dividend growth in the coming years.

For example, Citi is forecasting fully franked dividends of $1.66 per share in FY 2023 and then $1.76 per share in FY 2024. Based on the current ANZ share price of $25.92, this will mean yields of 6.4% and 6.8%, respectively.

Citi has a buy rating and $29.25 price target on the bank’s shares.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that could be a buy is Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager.

The team at Morgan Stanley is positive on the company despite the softening trading conditions in the property market.

Its analysts currently have an overweight rating and $4.30 price target on Stockland’s shares.

In addition, the broker is forecasting dividends per share of 26.7 cents in FY 2023 and FY 2024. Based on the current Stockland share price of $3.91, this will mean yields of 6.8% in both financial years.

The post Expect 6%+ dividend yields from these ASX 200 shares: analysts appeared first on The Motley Fool Australia.

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More reading

• ANZ share price falls on Q1 update
• Invest $20,000 in ASX 200 shares and get $1,500 each year without lifting a finger
• NAB shares: A top tip for passive income?
• ANZ share price slips amid $50m acquisition
• ANZ shares have been on a roll in 2023. Can it last?

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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark fell 0.5% to 7,490.3 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to drop

The Australian share market looks set to fall again on Friday following another poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 21 points or 0.3% lower this morning. In late trade in the United States, the Dow Jones is down 0.5%, the S&P 500 is down 0.6%, and the NASDAQ index is 0.65% lower.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.45% to US$78.09 a barrel and the Brent crude oil price is down 0.6% to US$84.50 a barrel. A buildup of US inventories put pressure on prices.

REA results

The REA Group Ltd (ASX: REA) share price will be one to watch on Friday. That’s because the property listings company is scheduled to release its half year results and investors will be able to see how the slowing housing market has impacted its bottom line. Goldman Sachs expects a 3% decline in revenue to $606 million and a 6% decline in net profit to $208 million.

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a poor finish to the week after the gold price slumped overnight. According to CNBC, the spot gold price is down 0.75% to US$1,877.3 an ounce. Traders appear nervous ahead of the release of key inflation data in the US.

AGL remains a hold

The AGL Energy Limited (ASX: AGL) share price may have crashed 10% on Thursday but Morgans isn’t recommending investors jump in just yet. In response to the energy giant’s half year results, the broker has retained its hold rating and slashed its price target to $6.89. Morgans said: “AGL’s 1H result was a significant miss on consensus and our forecast and FY23 underlying net profit guidance was reduced by $20m.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• How to burn a billion dollars: AGL shares tumble 10% on painful half-year results
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Guess which ASX 200 giant is aiming to grow its dividends by 39% in FY23
• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping

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 REA Group. 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 subscribe to the theory that small-cap ASX shares are due for a massive resurgence in 2023, there’s just one question to ask.

Which stocks to buy?

Fortunately, the team at Celeste Funds Management this week explained why they love three of their holdings for the long run, despite mixed recent performance.

‘Strong’ update belying the share price tumble 

Insurance services provider PSC Insurance Group Ltd (ASX: PSI) saw its share price plunge 5.2% over January.

That puzzled Celeste analysts, who thought a late December operational update was “strong”.

“Trading in 1H23 was ahead of budget with underlying EBITDA growth of 18% to 20% on the prior corresponding period,” stated Celeste’s memo to clients.

“Given strong 1H23 performance, the full year result is expected to come in at the top-end of the guidance range.”

Last May, PSC announced that it was entering into a joint venture with AUB Group Ltd (ASX: AUB) for the retail business of UK brand Tysers.

Unfortunately, that still hasn’t got off the ground, due to delays with regulatory approvals from British authorities.

That may have had a bearing on PSC’s share price, but Celeste analysts insisted “both companies remain committed”. 

“On a global macro level, the January reinsurance renewals should underpin further hardening of insurance premiums and provide a solid tailwind for broker earnings growth.”

The PSC share price is up 1.94% compared to a year ago, while paying out a 2.5% dividend yield.

Big sale could return capital to investors

The HT&E Ltd (ASX: HT1) stock price went the opposite way last month, rising a spectacular 16.1%.

The Celeste team attributed this to its jettison of a peripheral business.

“Early in the month, the company announced it had signed a binding agreement to sell its 25% interest in CPaaS business Soprano to Potentia Capital for $66.3 million cash,” read the memo.

“The sale price implies an 8.8x multiple on FY22 EBITDA and comes after a previous non-binding agreement to sell the stake to Link Mobility Group AS (OSE: LINK) was terminated in September 2021.”

The sale means shareholders of the media company could benefit, either directly or indirectly.

“The disposal of the non-core asset likely moves HT&E to a net cash position providing capital flexibility to both continue to invest in the core radio business and potentially return capital to shareholders.”

Despite the great start to 2023, HT&E shares have still plunged more than 44% over the past 12 months.

Portfolio grows 10% in six months

Litigation finance provider Omni Bridgeway Ltd (ASX: OBL) enjoyed an 11.6% boost in its stock price in January.

According to Celeste Funds analysts, the company reported a “strong” December quarter that took the total estimated portfolio value up to $29.8 billion.

That’s 10% higher than what it was on 30 June.

“There remains $228 million of indicative opportunities in the investment pipeline, which, if converted, would make up an additional 41% of the FY23 commitments goal.”

The Celeste team also noted how a particular investment was offloaded during the quarter.

“The secondary market continues to prove useful in accelerating cash returns.”

Omni Bridgeway is also growing overseas.

“The business expanded its geographic footprints in Europe and the US, which should further the diversification of the portfolio and maintain OBL’s global competitive advantage.”

The Omni Bridgeway share price is up almost 9% over the past year.

The post 3 small-cap ASX shares Celeste is riding off into the sunset on appeared first on The Motley Fool Australia.

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More reading

• How to burn a billion dollars: AGL shares tumble 10% on painful half-year results
• Here are the top 10 ASX 200 shares today
• Analysts say these growing ASX 200 dividend shares are top buys for income investors
• An open letter to Treasurer Jim Chalmers
• 3 cheap ASX dividend shares (down more than 35%) to buy in February 2023

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 PSC Insurance Group. The Motley Fool Australia has recommended Aub Group and PSC Insurance Group. 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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Shares in AGL Energy Ltd (ASX: AGL) were hit with the proverbial sledgehammer on Thursday as hopes of a profitable half were slashed.

The company’s share price powered down 10.33% to finish the day at $7.12 in reaction to the energy retailer’s first-half figures for FY23. Today’s disappointing performance was the worst for AGL shares in more than a year and seven months.

There’s a good chance shareholders were shocked by the staggering after-tax loss of $1.075 billion. A loss that big makes you wonder how?

Blowing out the bottom line by a billion

Once upon a time, Australia’s largest electricity generator was pumping out profits in excess of a billion dollars.

In 2018, AGL delivered revenue of $12.7 billion and net profit after tax (NPAT) of $1.26 billion. Today, the company posted $7.81 billion in revenue ($15.6 billion annualised). Despite achieving greater revenue years later, the energy giant is bleeding money — why is that?

For the most part, it comes down to standard accounting principles. This basically means financial statements need to recognise non-cash items on the profit and loss statement to provide a more accurate reflection of the business. And, oh boy, was the first half a pearler for non-cash items at AGL…

What wreaked havoc on the company’s statutory earnings — sending AGL shares downwards — was one ugly asset impairment.

AGL wrote down the carrying value of its Energy Generation Fleet cash-generating unit — in other words, its coal-fired power station assets — as it plans to bring forward their closure dates.

The magnitude of the impairment was a ground-shaking $706 million post-tax.

Secondly, the company recognised a $622 million reduction in the value of its financial instruments. Large companies, such as AGL, often make use of various instruments to hedge their exposure to the underlying commodity — for example, oil and gas futures contracts.

When combined, the two blew a $1,328 million hole in AGL’s earnings.

Where to for AGL shares from here?

Experts seemed to be split on the outlook for AGL following its first-half result.

On one hand, analysts at Barrenjoey considered it a ‘less positive’ foreshadowing for FY24. Whereas, Sarah Xie of Moody’s indicated that higher earnings could be on the cards from FY24 to FY25 as old hedges expire and wholesale power prices strengthen.

One thing is for sure — shareholders will be hoping there are fewer days like today for AGL shares.

The post How to burn a billion dollars: AGL shares tumble 10% on painful half-year results appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
• The AGL dividend has just been slashed. Here’s what you need to know
• AGL share price sinks following 55% profit dive
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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 Scott Phillips.

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When share prices go down, I get excited by the opportunity to buy cheap ASX dividend shares at attractive prices.

Inflation and interest rates may have punished many valuations last year, but some have come soaring back. Look at the WiseTech Global Ltd (ASX: WTC) share price and the Lovisa Holdings Ltd (ASX: LOV) share price, both up more than 20% over the past 12 months.

Yet, other names are still trading at steep discounts to where they were a year to 18 months ago.

While the short term may seem uncertain, I think the long term is still positive for the below ASX dividend shares. With their significantly lower share prices, I think these names look like opportunities, with the share prices reflecting the possible short-term pain.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the leading retailers of furniture in Australia. Not only does the company have the Nick Scali business, but it also owns the Plush brand as well.

Since mid-November, the Nick Scali share price has dropped by more than 35%, which has significantly improved the dividend yield on offer.

Ongoing demand for furniture meant that the FY23 first-half net profit increased by 70%, while the interim dividend per share increased 14.3% to 40 cents.

Commsec numbers currently suggest the ASX dividend share could pay a grossed-up dividend yield of 10.2% in FY23.

With the company’s longer-term plans to roll out more stores (particularly Plush stores), grow its online sales (which are very profitable), and expand its ranges, I think Nick Scali has a promising future once we’re through this difficult economic period.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a business involved in funds management. It doesn’t manage money itself, rather the ASX dividend share operates by taking sizeable minority stakes in young (or new) funds management businesses and helping them grow.

The company can take care of a number of operational tasks for the fund managers such as legal, distribution services, seed funds under management (FUM), compliance, and so on. It enables the fund manager to focus on the investing side of things.

The Pinnacle share price has fallen more than 45% since November 2021. Investment markets have cooled significantly since then. However, I think this is only going to be a shorter-term headwind. I believe that investors will begin allocating new money to fund managers again in FY24 when interest rates have stopped rising.

Commsec estimates suggest that Pinnacle could pay a grossed-up dividend yield of 4.6% in FY23.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon is a leading retailer of lights and fans. It’s another company to have suffered significant pain from the start of 2022.

Since mid-January 2022, the ASX dividend share has dropped by more than 35%. I think it’s understandable that there has been some pain because of the possibility of fewer homes being built, fewer renovations, and so on during this period.

However, I don’t think the business is worth 35% less than before, particularly with its long-term growth plans of servicing more trade customers, growing its Australian store count from around 120 to more than 180, selling more stuff online, and growing internationally (including in the US).

In FY23, the ASX dividend share could pay a grossed-up dividend yield of 6.7%.

The post 3 cheap ASX dividend shares (down more than 35%) to buy in February 2023 appeared first on The Motley Fool Australia.

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More reading

• Why right now is a once-in-a-decade opportunity to make passive income from ASX shares
• Why ARB, Centuria Capital, Nick Scali, and Tabcorp shares are dropping
• ASX share prices have rallied too hard to start 2023 says UBS equity strategist as one US analyst says don’t even think about turning bullish until 2024
• Why Brainchip, Core Lithium, IAG, and Nick Scali shares are dropping today
• Nick Scali share price plummets despite 70% profit boost

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 Lovisa, Pinnacle Investment Management Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and WiseTech Global. The Motley Fool Australia has recommended Lovisa. 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 Dicker Data Ltd (ASX: DDR) share price is having a difficult time on Thursday.

At one stage today, the wholesale computer hardware and software distributor’s shares dropped 8% to a multi-year low of $8.55.

This means Dicker Data shares have now lost 40% of their value over the last 12 months, as you can see on the chart below.

Why is the Dicker Data share price under pressure?

Investors have been selling down the Dicker Data share price this week after the company’s unaudited full year results disappointed the market.

For the 12 months ended 31 December, Dicker Data reported a 25% increase in revenue to $3.1 billion but a small decline in net profit after tax to $73.4 million.

In response to the result, Goldman Sachs commented:

DDR’s FY22 trading update was a relatively small miss to consensus (-3% on NPAT), which we previously flagged as a risk. […] however in our view the more pertinent issue is the risk of persistent cost headwinds heading into FY23.

The broker also spoke cautiously about Dicker Data’s outlook due to a number of potential headwinds impacting demand. It said:

In our view demand headwinds may be the next risk for DDR based on (1) pull-forward of PC demand through COVID; (2) commentary from PC OEMs including Microsoft, HP and Dell suggesting a challenging FY23 demand backdrop; and (3) potential slowdown in consumer electronics spending as the impact of higher interest rates is felt in the economy.

Is this a buying opportunity?

The good news is that Goldman Sachs appears to believe that all this and more is now factored into the Dicker Data share price.

And while it has held firm with its neutral rating, its revised price target of $11.35 implies material upside potential for its shares of almost 33%.

Furthermore, it isn’t the only broker that sees plenty of value in its shares. Morgan Stanley has retained its overweight rating with a $13.00 price target this morning. This represents over 50% upside over the next 12 months from current levels.

The post Dicker Data share price tumbles to multi-year low. Is it too cheap to miss? appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
• ASX 300 tech stock Dicker Data dives 10% on full-year results
• Why Amcor, Dicker Data, Elders, and Healius shares are dropping today
• Brokers name 3 ASX shares to buy now

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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As mentioned here earlier, Morgans removed BHP Group Ltd (ASX: BHP) shares from its best ideas list this month. This is the first time it hasn’t been on the list in three years.

Morgans’ best ideas are those that it thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are the broker’s most preferred sector exposures.

Replacing the miner was mining and mining services company Mineral Resources Ltd (ASX: MIN).

But that wasn’t the only change. Listed below are the ASX 200 shares that joined the list in February.

CSL Limited (ASX: CSL)

Morgans sees this ASX 200 share as a key pick for a portfolio. It added the biotherapeutics giant to its best ideas list with an add rating and $312.20 price target. The broker commented:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long term forward multiple of 31.5x.

Megaport Ltd (ASX: MP1)

This network as a service provider’s shares were added to list with an add rating and $8.25 price target. The broker explained:

MP1 is the world leader in Network as a Services (NaaS). They have first mover advantage, scale and technical expertise which means they are well placed to grow rapidly and maintain a healthy competitive advantage.

Mineral Resources

As mentioned above, Mineral Resources was added to list in the place of BHP this month. Morgans has an add rating and $99.40 price target on the ASX 200 miner’s shares. It commented:

We see MIN’s lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H’CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Qantas Airways Limited (ASX: QAN)

A final ASX 200 share that has been added to the list is airline operator Qantas. The broker has an add rating and $8.50 price target on the flying kangaroo’s shares. It said:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings.

The post Why Morgans just added these ASX 200 shares to its best ideas list appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
• ASX 200 tech stock Megaport leaps on open then plunges on half-year results
• What’s going on with the Qantas share price today?
• These ASX 200 shares are top picks in Macquarie’s growth portfolio
• Can the BHP share price keep rising or has it peaked?

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Megaport. 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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The All Ordinaries Index (ASX: XAO) is in the red today, down 0.6% in afternoon trade.

But these two ASX lithium shares are marching higher after reporting promising exploration and production news.

Here’s what the lithium stocks announced.

Major new lithium target

The Zenith Minerals Ltd (ASX: ZNC) share price is up 2.2% at the time of writing after the ASX lithium share reported on “a major” new lithium geochemical target at its Split Rocks Lithium Project, located in Western Australia.

Split Rocks is being explored as part of the Zenith’s JV with EV Metals Group.

Zenith said its auger soil geochemical sampling had outlined a lithium target (Cielo) that’s nine kilometres long and two kilometres wide. The miner reported a peak auger soil value of 117 parts per million (ppm) of lithium.

The target, which has not been drill tested before, is located in proximity to several proven significant lithium deposits, including the Mt Holland Lithium Deposit.

Commenting on the progress helping boost the ASX lithium share today, executive chair David Ledger said:

We are delighted to announce a major new lithium target at Split Rocks which has come about through 12 months of hard work from our soil geochemical teams. I look forward to providing further updates on this exciting new drill target – Cielo – and the additional new lithium anomalies generated in 2022.

Which brings us to…

ASX lithium share gains on high-grade spodumene production

The Critical Resources Ltd (ASX: CRR) share price is up 3.6% at the time of writing, having posted gains of more than 10% in early morning trading.

Investor interest in the ASX lithium share was spurred by the company’s announcement that its Mavis Lake Lithium project, located in Ontario, Canada, has produced high-grade, low-impurity, coarse spodumene concentrate (Li2O).

Using Heavy Liquid and Magnetic Separation processes, the concentrate results delivered results up to 6.42% Li2O.

The company noted that impurity levels were “extremely low” at 0.37% Fe2O3.

Commenting on those results, Critical Resources managing director Alex Cheeseman said:

Metallurgical test work is a key step in advancing Mavis Lake along the development pathway. The results show that the high-grade mineralisation at Mavis Lake, readily converts to high-grade, low impurity concentrate.

Concentrate with this type of specification, commands a premium in the market. This has been achieved through a very simple flowsheet that has the potential to enhance project development and delivery opportunities by being low impact, low risk and low cost.

Both ASX lithium shares will update the market regarding any further progress.

The post 2 ASX lithium shares marching higher on promising news appeared first on The Motley Fool Australia.

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

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The Elders Ltd (ASX: ELD) share price is among the top performers of the S&P/ASX 200 Index (ASX: XJO) at the time of writing.

The Elders share price is currently up 1.81% to $8.99 in late afternoon trading.

Earlier today, it reached an intraday high of $9.21, up 4.3%.

Hang on, didn’t Elders stock crash yesterday?

Yes, it did. The ASX 200 agricultural share fell 7.4%, and the dramatic dip even prompted an ASX query.

Elders responded quickly, saying it didn’t know why its share price had dropped so far, nor why its trading volume had spiked.

The company didn’t release any price-sensitive news to the ASX yesterday.

However, Elders did note in its response to the ASX that it had held two institutional investor briefings on Tuesday.

While no price-sensitive information was discussed at the briefings, a bunch of sector-wide issues were covered, the company said.

This included current livestock prices declining but remaining well above historical averages.

They also discussed unseasonably wet conditions being likely to impact competitors, softer real estate sales activity, and a strong outlook for winter cropping due to good soil moisture and water availability.

Elders said these factors “suggest that ELD’s second half performance will be stronger than first
half performance in FY23″.

So, the cause of the drop in the Elders share price to a two-year low of $8.69 remains a mystery.

What’s got the Elders share price rising today?

Well, there’s probably some buying the dip action afoot, for starters.

In addition, Elders released an investor presentation to the ASX today.

This presentation was delivered to investors at an event hosted by top broker Goldman Sachs today.

Goldman is bullish on Elders and currently has a buy rating on the ASX 200 agricultural share. It also expects the Elders share price to more than double to $18.40 over the next 12 months.

The presentation includes a chart documenting how Elders has continued to grow its underlying earnings before interest and taxes (EBIT) despite major natural disasters and world events.

For example, during the COVID pandemic period, which includes the Russian invasion of Ukraine and rising inflation and interest rates, Elders has grown its EBIT from $74 million in FY19 to $121 million in FY20 (Black Summer fires), $167 million in FY21 (NSW and Queensland floods), and $232 million in FY22 (more floods in NSW and Queensland, and 45% of Queensland in drought).

Such information is useful and likely comforting to investors in ASX 200 agricultural shares. One of the key risks of investing in ag shares is the unpredictable nature of the weather and its impact on crops.

The post Which agricultural share is leading the ASX 200 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Elders. 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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