The Arafura Rare Earths Ltd (ASX: ARU) share price is under pressure on Tuesday.

At the time of writing, the rare earths developer’s shares are down 5% to 53.5 cents.

This means the Arafura share price has now dropped almost 24% since hitting a 52-week high less than a month ago.

This has been driven by concerns over comments out of electric vehicle giant Tesla, which revealed plans to phase out rare earths from future vehicles.

And while this decline is disappointing, it could prove to be a great buying opportunity for investors.

Broker tips major upside for Arafura share price

According to a recent note out of Bell Potter, its analysts have described the Tesla-induced selloff as “a knee jerk reaction.”

As a result, it recently upgraded its shares to a speculative buy rating with a 72 cents price target. Based on the current Arafura share price, this implies potential upside of almost 35% over the next 12 months.

The broker commented:

The recent 16% sell-off in ARU in reaction to the Tesla Investor Day presentation was a knee jerk reaction and in our view, was overdone. We maintain our valuation for ARU of $0.72/share and return to a Speculative BUY recommendation.

Bell Potter continues to believe that demand for rare earths will grow materially and support strong prices even without Tesla in the equation. It explains:

The result reduced our NdPr demand estimates by 10ktpa, which would still require the addition of 4.3x of Nolans capacity over the next 7 years. Given the scale, grade and advanced nature of the Nolans project we would still view this as a difficult task to achieve thus concluding price support for NdPr should be maintained.

The post Arafura stock sell-off continues, broker tips 35% upside 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Atlantic Lithium, Arafura, Brainchip, and Core Lithium shares are falling
• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Are Arafura shares still a buy if Tesla ditches rare earths?
• 4 ASX mining shares that have soared over 150% in a year

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.

from The Motley Fool Australia https://ift.tt/glt1CEk

Oh man. Politics, huh?

Here in NSW, where I’m based, there’s a state election coming up.

And so, of course, ads and announcements are wall-to-wall in the media.

One such announcement caught my eye this week.

Something that had elements of a plan I think is fantastic.

Not perfect. But it’s not far away from being great.

And it’s an investor’s dream – at least in theory.

Of course, most of the responses thus far have been political, or ideological, or both.

Because that’s what people seem to do these days: barrack for their team, no matter what.

But not here.

When I look at these things, I’m focused on policy, not politics.

So, let’s look at the idea, itself.

NSW Premier Dominic Perrotet has announced that every kid under 10 (and thereafter, every child at birth) will get $400 put away for their higher education or a house purchase.

Then, each year, the government will add $200 for kids whose parents are eligible for family tax benefit payments, or $400 per year for other kids, if those kids’ parents match it.

Parents and grandparents can contribute up to another $600 each year, unmatched.

The kicker is that the government has recognised that, with the power of 18 years of compounding, these amounts will be worth much, much more when the kids are eligible to withdraw it.

That observation (and the function of the plan) is smart.

Very smart.

It takes the idea of compounding – something that we all know, but too few people actually do – and applies it to help give kids a kick start when they turn 18.

And it might be no surprise that I like it – I’ve proposed a similar scheme to fund Superannuation with a small amount at birth, instead of relying on (much, much larger) employer contributions for 40-plus years of our working lives.

So I really like this idea… with two exceptions.

The first is that, as has been widely highlighted, this plan gives more help to those who don’t need as much help (because their families can afford to add between $400 and $1000 each year) and less help to those who actually do need it (and whose families can’t hit those numbers).

And a reminder: all of these numbers are for one child. Imagine a single mother on a modest income with three kids, and compare that to a wealthy double-income family with one child.

In the first example, the kids would get $200 per year saved for them. Which is good.

In the second, the kid gets $1,400 per year. And the government’s contribution to that child is double what each of the single mum’s kids get.

That is… tough to defend.

Some will – insisting that the government should only match what a parent is already sacrificing. I understand that view.

But let’s think about the kid, rather than the parent: if we truly want each child to get a head-start through this program, it makes no sense to penalise them, in a relative sense, based on the fact their parents may not be able to contribute.

Frankly, the solution is very, very easy. And not that expensive.

Just equalise the government contribution for all kids. Add $400, per year, to the account each year between birth and their 18th birthday.

Then let compounding do its thing.

The second concern? This does nothing to address high house prices.

To be fair, that’s not the aim of this policy. The alternative government has no serious policy to deal with it, either. And nor do our federal parliamentarians.

We should fix house prices.

But whether we do, or not, this policy – amended as I suggested – is a very good way to help kids as they reach adulthood.

It gives them a lump sum to kick start the next part of their lives, and – perhaps more importantly – demonstrates the power of compounding.

Now, if only I can convince Treasurer Chalmers to use it for Super, too!

Fool on!

The post So close, Premier. Let me fix it. 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

• This ASX 200 director bought over $500k of his company’s shares just in time for the dividend!
• ‘Not sure if that’s the way we should go’: Why BHP shares are making news today
• 4 ASX 200 shares trading ex-dividend on Wednesday
• Piedmont Lithium shares: 150% upside or big short opportunity?
• Top ASX 200 tech shares to buy right now: Morgans

Motley Fool contributor Scott Phillips 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/h4YOZvF

A director of ASX 200 kitchen appliance manufacturer Breville Group Ltd (ASX: BRG), is in for a boosted dividend payout after buying 30,000 more shares a few days before the ex-dividend date.

The Breville share price is down 1.73% in early trading on Tuesday to $18.80.

A change of director’s interest notice lodged with the ASX last Friday reveals that non-executive director, Lawrence Myers, spent $577,785.49 buying more Breville shares through a family trust fund.

He made the purchase on Friday on-market.

How much will this ASX 200 director receive in dividends?

Breville shares begin trading ex-dividend tomorrow.

The ASX 200 share will pay investors 15 cents per share fully franked for 1H FY23 on 27 March. This is the same amount as the interim dividend for 1H FY22.

Before the purchase, Myers already had an indirect interest in 133,000 shares through his superannuation, family trust, and other investment vehicles.

His bumped-up investment will deliver $24,450 in dividends for 1H FY23.

Investors typically draw comfort from seeing board directors spend their own money buying more shares in the ASX 200 companies they run. It’s a clear sign of confidence in the company’s future.

A quick recap on Breville’s 1H FY23 results

In its 1H FY23 report, Breville revealed record sales with a 13.1% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $141.9 million compared to the prior corresponding period (pcp) of 1H FY22.

Breville’s net profit after tax (NPAT) increased by 1.3%, and its gross margin improved by 1% to 35.1%.

The ASX 200 share’s return on equity (ROE) declined from 19.7% to 16.1% due to its acquisition of Italian prosumer coffee company, Lelit, in July 2022.

Breville Group CEO, Jim Clayton said:

The strength of our product portfolio, coupled with the maturity and agility of our underlying Acceleration Platform, cut through the macro-economic headwinds of the 1H23.

We grew Gross Profit by tacking into our areas of strength: we managed price to counter
material input and logistics cost inflation as well as negative currency swings; we leaned on our
geographic diversification to deflect the impact of EMEA retailers buying much less than they
were selling; we aligned our supply chain and go-to-market to take advantage of the trending
tailwinds of “air frying” and “café quality coffee at home”; we executed a much improved new
product launch process that accelerated revenue; and, we captured the benefit from the
investments we’ve made in our digital execution and geographic expansion.

Recent history on this ASX 200 share

The Breville share price is up 0.75% in 2023 compared to an 0.5% bump in the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 share is down 31% over the past 12 months, compared to a 2.4% fall for ASX 200 shares overall.

The post This ASX 200 director bought over $500k of his company’s shares just in time for the dividend! 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 4 ASX 200 shares trading ex-dividend on Wednesday
• Top brokers name 3 ASX shares to buy today

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.

from The Motley Fool Australia https://ift.tt/kpQMao9

BHP Group Ltd (ASX: BHP) shares are down 1.2% in morning trade, joining the wider market sell-off. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.8%.

The mining giant closed yesterday trading for $45.83 per share. Shares are currently swapping hands for $45.28 apiece.

This comes amid news that BHP’s plans to cut emissions by using renewable diesel made from Hydrotreated Vegetable Oil (HVO) may not be all that green.

What’s happening with the miner’s renewable diesel plans?

As The Motley Fool reported last month, BHP is trialling the use of renewable diesel, supplied by bp, at its Western Australian Yandi iron ore mine. The initial trial is set to run for three months.

Some 40% of BHP’s operational greenhouse gas emissions stem from diesel fuel.

“Ultimately, our aim is to have fully electric trucking fleets at our sites,” BHP Western Australia iron ore asset president Brandon Craig said. “But alternative fuels like HVO may help us reduce our emissions in the meantime while the electrification transition takes place.”

However, not everyone believes this is the best way forward.

In news unlikely to have a material impact on BHP shares this morning, University of South Australia professor and environmental engineer James Hopeward said he believes there are better ways for the ASX 200 miner to cut its emissions.

As ABC News reports, Hopeward said he understands why BHP is eager to do what it can to reduce emissions, stressing that the trial is “certainly not greenwashing”.

According to Hopeward:

I can certainly see why, when there is a tremendous amount of pressure to reduce greenhouse gas emissions as quickly as possible, there would be a tendency to say, ‘We need to green the fleet by greening the fuel while we wait for the technology to catch up in terms of the electrification.

However, Hopeward added, “I’m not sure if that’s necessarily the way that we should go.”

He pointed to the comparatively large negative impact the renewable diesel has on the environment compared to solar or wind-derived energy.

“They take an enormous amount of land, they take nutrients, they take water, and they just have a large footprint,” he said of the HVO type of fuels. “If we’re talking about a solar farm or a wind farm these things have an impact as well, but it’s a smaller impact in terms of space.”

It’s likely to be more than a decade before BHP’s hauling trucks make the switch to fully electric, with the technology still playing catchup to the reality in the field.

While the miner waits for that battery electric tech to evolve, Hopeward said BHP and other miners had superior options available to reduce their overall carbon footprint.

“To offset that carbon through environmentally beneficial activities like large scale revegetation … should certainly be in the mix of how we make this transition,” he said.

“We genuinely then reduce net carbon emissions while also having a positive impact on biodiversity and then transitioning, when the technology allows it, to an electric future.”

How have BHP shares been performing?

As you can see in the chart below, BHP shares are now trading right about where they started 2023.

Longer term, shares in the ASX 200 miner are up 56% over five years.

The post ‘Not sure if that’s the way we should go’: Why BHP shares are making news 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

• How to make $50,000 of retirement income with ASX shares
• How to generate $20k of passive income from BHP shares
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Why is the BHP share price taking a flogging on Friday?
• Here’s the BHP dividend forecast through to 2025

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/Pkde4IS

A number of ASX 200 shares are scheduled to trade ex-dividend on Wednesday.

This means that today is the final day for investors to buy these shares if they want to receive their upcoming dividend payments.

The following ASX 200 shares are going ex-dividend tomorrow:

Breville Group Ltd (ASX: BRG)

Last month, this appliance manufacturer released its half-year results and declared a 15 cents per share fully franked interim dividend. This will be paid to eligible shareholders later this month on 27 March. Interestingly, Breville’s chair, Lawrence Myers, just loaded up on the company’s shares prior to them trading ex-dividend. He snapped up 30,000 shares on-market for a total consideration of approximately $578,000.

Eagers Automotive Ltd (ASX: APE)

This auto retailer giant had another strong year in FY 2022. This allowed the company to declare a record fully franked final dividend of 49 cents per share last month. This is scheduled to be paid at the very end of the month on 31 March.

Inghams Group Ltd (ASX: ING)

Things haven’t been going as well for this poultry producer. Last month, it was forced to slash its fully franked interim dividend by 30% to 4.5 cents per share. This will be paid to eligible shareholders on 6 April.

TPG Telecom Ltd (ASX: TPG)

This telco giant was on form in FY 2022 and delivered a solid full-year result last month. This meant that TPG was able to increase its fully franked final dividend by almost 6% to 9 cents per share. This is scheduled to be paid to its shareholders next month on 13 April.

The post 4 ASX 200 shares trading ex-dividend on Wednesday 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

• Start your engines: Fund backs 2 ASX shares to finish line
• 7 ASX All Ordinaries shares smashing new 52-week highs today
• Was I dumb to sell my TPG shares?
• These ASX 200 shares smashed the market in February
• 4 ASX shares to grab now after boom results: expert

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 Tpg Telecom. 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/3rd8Jzj

Piedmont Lithium Inc (ASX: PLL) shares have dropped by 4.5% since Blue Orca commenced its short-sell attack last week.

Piedmont Lithium shares opened at 84 cents this morning, up 1.2% on yesterday’s closing price.

One broker says the ASX lithium share offers a 150% upside and will outperform over the next year.

Let’s take a look at what’s happening.

Why are Piedmont Lithium shares being shorted?

Piedmont shares went into a trading halt last Wednesday after Blue Orca released its short report.

Blue Orca alleges that Piedmont’s joint venture (JV) partner in Ghana, Atlantic Lithium Ltd (ASX: A11), will lose its mining licences. Consequently, it will be unable to supply Piedmont’s facility in Tennessee.

As my colleague James reported last week, Blue Orca alleges that Atlantic Lithium attained its licenses by making secret payments and promises of payment to the immediate family of a Ghana politician.

This is why Blue Orca has shorted Piedmont Lithium shares. It explained:

We are short Piedmont because without Atlantic’s Ghana supply, Piedmont and any promise of near-term revenue from its much-hyped Tennessee facility are dead on arrival.

Without Ghana, industry experts and even a former Piedmont senior executive have confirmed that Piedmont is unlikely to find a source of replacement spodumene.

How did Piedmont respond?

Piedmont Lithium responded by saying Atlantic Lithium “outrightly refutes” Blue Orca’s assertions and regardless, Piedmont could find alternative sources of spodumene for its facility if it had to do so.

Piedmont said:

Piedmont has the right to purchase 50% of Atlantic’s production of spodumene concentrate from its Ghana lithium project, at market prices on a life-of-mine basis, and to earn a 50% interest in the Ghanaian projects.

Piedmont currently contemplates utilizing spodumene concentrate from this offtake agreement as partial feed for its proposed Tennessee Lithium hydroxide plant.

However, if for any reason Piedmont does not exercise its right to this offtake supply, the Company is confident that alternative sources of spodumene concentrate would be available to feed the Tennessee facility, as current and future spodumene producers seek to feed the growing U.S. electric vehicle market and qualify for the benefits available under the Inflation Reduction Act of 2022.

What’s this about a 60% upside?

According to reporting in The Australian, Macquarie has commenced coverage of Piedmont Lithium shares. The broker has placed an outperform rating on the stock and a 12-month price target of $2.10.

This follows other news from Piedmont Lithium last week.

The company and another JV partner, Sayona Mining Ltd (ASX: SYA), announced that their North American Lithium Project has achieved first spodumene production.

Why is Macquarie backing Piedmont Lithium shares for growth?

Macquarie said:

Achieving first spodumene production at NAL is an important milestone, with improving the quality of the spodumene now a key focus for the project.

Piedmont Lithium and Sayona Mining are targeting Q3 2023 for the commencement of sales.

Macquarie notes Piedmont Lithium’s offtake agreement with NAL entitles it to 50% of spodumene production with a price cap of US$900 per tonne.

Piedmont plans to sell this product to Tesla Inc (NASDAQ: TSLA) and LG Chem Ltd (KRX: 051910) at spot prices over the next three years.

Broker Goldman Sachs forecasts spot prices for spodumene to fall to US$4,330 per tonne this year.

It expects a rapid descent to US$800 per tonne in 2024 and 2025 due to increasing supply.

Piedmont Lithium shares hit a new 52-week high of $1.09 in mid-February.

The post Piedmont Lithium shares: 150% upside or big short opportunity? 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 Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping
• Piedmont Lithium share price sinks following short attack response
• Macquarie tips 3 ASX lithium shares to outperform, one with 150% upside
• Piedmont Lithium share price frozen amid short-seller attack
• Why are ASX lithium shares being hammered on Monday?

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Tesla. The Motley Fool Australia has positions in and has recommended Macquarie 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/nBHIm9C

S&P/ASX 200 Index (ASX: XJO) tech shares could be leading opportunities to buy at their current prices, according to the broker Morgans.

Since November 2021, there has been plenty of volatility on the ASX for the tech sector. Interest rates and inflation are having a significant impact on valuations. Interest rates pull down on asset prices like gravity – the higher the interest rate, the lower the asset price is expected to be.

The Reserve Bank of Australia (RBA) recently implemented its tenth consecutive interest rate increase to 3.6%, with further tightening flagged. But Morgans said the interest rate is getting closer to its top. Once that is reached, the broker expects “quality technology and classified names to once again shine”.

Hence, with some businesses trading at lower prices, experts at Morgans have identified three of their tech favourites.

High-quality ASX 200 tech share choices

Morgans explained that its current preference right now is for the high-quality names of Xero Limited (ASX: XRO), REA Group Limited (ASX: REA), and SEEK Limited (ASX: SEK).

In the recent reporting season, both SEEK and REA Group announced their results. Let’s start with SEEK.

Morgans noted that SEEK beat the expectations of analysts. The broker pointed out that SEEK grew revenue by 21% year over year, while earnings before interest, tax, depreciation and amortisation (EBITDA) went up 13% year over year.

The broker said that SEEK benefited from “strong volume growth”, with underlying structural tailwinds continuing. However, Morgans is expecting “normalisation” in the second half of FY23.

Yield growth helped again to offset costs, with recent price rises rolling through. Platform ‘unification’ spending is impacting margins in the short term.

Morgans also said that SEEK Asia “performed well” with the company “beginning to extrapolate early benefits from the unified platform”.

Looking at REA Group, Morgans called the result “resilient” with 5% revenue growth, though EBITDA was “marginally down” by 2%. Group EBITDA margin fell by around 100 basis points (1%).

The broker commented that yield growth of 11% year over year was a “key driver” of the ASX 200 tech share’s revenue growth, while depth penetration remains “strong”. However, there is a “cautious outlook” for new listings growth over the rest of the year. It’s expecting volatility to continue, with a possible decline of around 10% in the second half of FY23.

Morgans said that expenses are in focus, with the EBITDA margin impacted by higher costs, such as the investment in REA India.

Xero has a different reporting schedule. But, the company has just revealed that it’s going to cut 700 to 800 roles globally and streamline its business.

The ASX 200 tech share is now balancing growth and profitability, while “taking a robust approach to capital allocation that supports long-term value creation”.

Xero’s management is now targeting an operating expense ratio in FY24 of around 75%, with an improvement from between 80% to 85% in FY23.

In other words, the business is expecting to significantly increase its profit margins in the next 12 to 18 months.

The post Top ASX 200 tech shares to buy right now: Morgans 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

• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX 200 shares trading ex-dividend on Tuesday
• Why are ASX 200 gold stocks like Northern Star having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended REA Group and Seek. 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/XJHdf29

The Sezzle Inc (ASX: SZL) share price is having a very strong start to the session on Tuesday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up a sizeable 10% to 58.5 cents.

Why is the Sezzle share price racing higher?

Investors have been bidding this ASX All Ords share higher today after the company announced plans to list on the Nasdaq Global Market.

According to the release, Sezzle shares will continue to trade on the ASX All Ords concurrently despite this change.

However, one thing that will have to change is the Sezzle share price. Given the Nasdaq’s minimum US$4.00 bid price, the company will undertake a reverse split if shareholders approve.

Sezzle hasn’t revealed what its reverse split would be. But if it were a 20-1 reverse split, investors would see every 20 Sezzle shares they owned reduced to a single share and the price per share increased 20 times. There would be no change to the overall value of your holding.

In this example, it would mean the Sezzle share price increases to $11.70 from 58.5 cents.

The company also stressed that it isn’t seeking to raise capital by listing on the Nasdaq. It does, however, hope that the move expands its investor base.

Sezzle’s Chairman and CEO, Charlie Youakim, commented:

A listing on the Nasdaq is a natural evolution for Sezzle given the Company is already filing the necessary reports with the SEC. Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.

The company intends to provide guidance to investors on the timing of the stockholder meeting, but anticipates completing everything no later than 30 September.

The post Guess which ASX All Ords share is planning a Nasdaq listing 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

• These ASX tech shares have exposure to the Silicon Valley Bank collapse
• ASX BNPL shares deep in the red as ASIC turns up the regulatory heat

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.

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

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Discovery Fund portfolio managers Chris Bainbridge and Mark Devcich explain how they pick ASX shares to include in their exclusive high-conviction portfolio.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Chris Bainbridge: We’re a high-conviction active manager who seeks outstanding performance and we do that by having one fund, the Founders’ Fund, which invests in up to 20 of the best listed companies on the ASX and NZX.

MF: What’s the investment philosophy? 

CB: At a really high level and keeping it super simple, we’ve called it the Founders’ Fund for a reason. We aim to invest in founder-led businesses, high returns on investor capital, with a catalyst to realise our variant perception on the business. We’re looking for those three aspects. 

We were trying to take a three- to five-year timeframe, but often we find that companies realised our valuation in a much shorter time frame.

MF: You mentioned it’s a high conviction fund, so how many stocks do you hold at any given time? 

CB: We target around 20 in the portfolio and that is reasonably concentrated within the top 10 names. 

We believe that if you’re picking an active manager, then you’re picking them for their stock-picking ability and you want to be able to express that ability as much as you can and it really comes down to concentration. It’s good to have a lot of good ideas — so when you have one, you want to make it count. 

MF: It’s been pretty turbulent for equities the past year. Where do you reckon it’s all headed this year? 

Mark Devcich: It’s not something we spend a lot of time thinking about where the market is heading, as it’s obviously very difficult to predict, especially in the short-term. 

However, we do feel relatively more constructive in Australia compared to the Kiwi market. We are only invested in NZX and ASX, but clearly more convicted around Australia, given strong commodity prices, immigration restarting, international education and also the pool of funds that is generated from compulsory superannuation. 

So we feel that Australia is in a relatively good spot compared to the rest of the world. Markets may be volatile, choppy, they may even hit lower from here on a global basis, but we feel Australia’s one of the shining spots around the world in terms of its equity markets and its economy for the next 12 months. 

Tomorrow: Chris and Mark’s two best ASX shares to buy right now

The post Revealed: Fund’s secret sauce to picking ASX shares for massive wins 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are Fortescue shares back on the menu amid job cuts?
• Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here’s why
• Buy these ASX dividend shares with big yields today: experts
• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• 2 ASX 200 shares to rocket from same booming industry: expert

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/C3uvhbH

Fortescue Metals Group Limited (ASX: FMG) shares are often a talking point in the media, with its major mining operations and green ambitions through Fortescue Future Industries (FFI). But, could the ASX mining share’s move to cut jobs be a way to boost investor confidence in the business?

Job losses

According to reporting by the Australian Financial Review, the mining giant made some workers redundant last week. One of the newspaper’s sources said that the job losses amount to less than one hundred.

The importance of each job shouldn’t be discounted, and it’s possible this could amount to a sizeable annualised reduction of costs, depending on the size of the pay.

The AFR reported on comments from a Fortescue spokeswoman who said:

This is business as usual for rapidly evolving global companies. We are always looking for opportunities for continuous business improvement to maintain our industry-leading cost position.

Right now we are growing globally and allocating resources swiftly to North America, responding to the Inflation Reduction Act.

Projects such as Iron Bridge are coming into production phase soon, while our work in Gabon is just kicking off. As this occurs project staffing naturally ebbs and flows.

The newspaper also reported that sources close to Fortescue noted that the company’s “overall headcount” could rise in the year ahead despite the redundancies as it looks to make final investment decisions on “at least five” FFI green energy projects before the end of 2023.

What effect will this have on the Fortescue share price in the long term?

I’d assume that investors of every business would want their company to be having the right-sized workforce for the tasks and projects at hand. For a business of Fortescue’s size, I would guess that there are always people coming and going.

However, it comes at a time when there are a wide number of tech companies that have been laying off workers. This is happening on the ASX as well. For example, last week it was announced that Xero Limited (ASX: XRO) would be cutting between 700 to 800 roles globally to streamline its operations and boost its operating profitability.

While Fortescue may save its bottom line some money with these cost cuts, in the short-term it could be the iron ore price that has the biggest impact on the Fortescue share price. The iron ore price has reached around US$130 per tonne according to Commsec. But, while Goldman Sachs suggests the iron ore price could reach US$150 per tonne in the next few months, it’s certainly possible it could fall to US$110 as well.

In the long term, Fortescue’s efforts to produce green hydrogen, green ammonia and advanced batteries could have the largest impact on whether the company can continue its success or not.

Fortescue share price snapshot

Over the last six months, Fortescue shares have risen over 22%.

The post Are Fortescue shares back on the menu amid job cuts? 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

• Could buying Fortescue shares at under $22 make me rich?
• How can I hope to retire rich when the share market is falling?
• Will the Fortescue share price crash in 2023?
• Why Fortescue, Lynas, Myer, and New Hope shares are dropping today
• This ASX 200 dividend share failed to be one of the world’s biggest payers in 2022. Could it get worse?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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