The AMP Ltd (ASX: AMP) share price is in the red on Tuesday amid potentially disappointing news for those invested in the company.

The financials giant revealed the much-anticipated sale of its Collimate Capital businesses – announced more than six months ago – won’t meet a November deadline.

At the time of writing, the AMP share price is 0.79% lower at $1.26. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.19% this morning.

Let’s take a closer look at the latest on the company’s major divestment.

Collimate Capital sales face regulatory delays

The AMP share price is sliding today amid the release of an update on its planned sale of Collimate Capital.

As the company previously announced, Dexus Property Group (ASX: DXS) will take on the business’ domestic infrastructure equity and real estate leg, while DigitalBridge will take on its international infrastructure equity segment.

The sales were previously expected to complete in September and November, respectively. Sadly, that’s now off the cards.

In a non-price-sensitive release today, AMP said “significant progress” has been made towards the sales’ conditions. However, regulatory processes are ongoing. That means the sales won’t be completed this month. AMP continued:

All parties are working constructively together towards completion, and we will update the market on the likely completion dates for both transactions as these approvals progress.

Both sales are conditional on regulatory approvals and various other consents. The sale to Dexus also requires approval from regulators in China due to AMP’s interest in China Life AMP Asset Management.

Together, the sales will bring $712 million in upfront cash payments. AMP intends to return most of the proceeds to shareholders.

Dexus might also be liable for up to $20 million in earn-outs. That’s down from a potential $300 million, mainly due to the loss of control of the AMP Capital Retail Trust and the AMP Capital Wholesale Office Fund.

The maximum potential earn-out for the international infrastructure business is $180 million.

AMP share price snapshot

This year has been good to the AMP share price. It lifted to an 18-month high of $1.30 on Monday.

It has gained 26% year to date and 9% since this time last year. Though, the stock is still trading for 75% less than it was in November 2017.

For comparison, the ASX 200 has fallen 6% in 2022 so far and 5% over the last 12 months.

The post Looking to buy AMP shares? Here’s the latest blow to the company’s major divestment appeared first on The Motley Fool Australia.

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

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The Bitcoin (CRYPTO: BTC) price has taken a nosedive since the collapse of Sam Bankman-Fried’s FTX.com crypto exchange and its related trading company Alemada Research.

This came after news emerged that FTX was partly backed by its own utility token, FTX Token (CRYPTO: FTT), rather than good old-fashioned fiat currency. The resulting big slide in the value of FTT quickly led to a major liquidity crunch for FTX and sent crypto markets into a tailspin.

On 6 November, BTC was trading for US$21,162. At the time of writing, the Bitcoin price stands at US$16,382. That’s down 23% since FTX got into trouble and down 66% in 2022.

With that in mind, what might crypto investors expect next?

What could be next for the Bitcoin price?

The FTX meltdown could throw up some continuing headwinds for Bitcoin.

That’s according to analysts at JPMorgan, who forecast the Bitcoin price could slide all the way to US$13,000 on the back of these new uncertainties.

According to the analysts (courtesy of Forbes):

What makes this new phase of crypto deleveraging induced by the apparent collapse of Alameda Research and FTX more problematic is that the number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking within the crypto ecosystem…

Given the size and interlinkages of both FTX and Alameda Research with other entities of the crypto ecosystem, including DeFi platforms, it looks likely that a new cascade of margin calls, deleveraging and crypto company/platform failures is starting similar to what we saw last May/June following the collapse of terra.

Hani Redha, a multi-asset portfolio manager at Pinebridge Investments, also doesn’t believe the Bitcoin price will get any reprieve from institutional investors this time around.

“What’s become clear is it will not find a home in institutional asset allocation,” Redha said (quoted by Bloomberg).

“There was a period when it was being considered as a potential asset class that every investor should have in their strategic asset allocation and that’s off the table entirely.”

However, not all the experts are as bearish on the outlook for the Bitcoin price.

Akeel Qureshi, core contributor to Hubble protocol and Kamino Finance on the Solana blockchain, believes a recovery is on the horizon.

Qureshi said (quoted by Forbes), “The market is taking a hit, but crypto’s volatility has historically led to shakeouts that ultimately strengthen the space in the long run.”

Remember, whatever your own outlook may be for the Bitcoin price, never invest more than you can afford to lose.

The post The Bitcoin price has dumped 23% since the FTX collapse. Now what? 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 positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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 Lynas Rare Earths Ltd (ASX: LYC) share price has soared almost 20% over the past month. It opened on 14 October at $7.64 and closed on 14 November at $9.15 — that’s an impressive gain of 19.76%.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) moved upwards with a 12.36% gain over the same period.

The broader market, measured by the S&P/ASX 200 Index (ASX: XJO), also jumped higher in this timeframe, gaining 7.5%.

There are differing opinions on the future trajectory of the Lynas share price. One expert believes it could be on an upswing, while another believes the company’s first quarter update for FY23 showed weakness which could cause its share price to fall.

So let’s fully examine the bull and bear case for Lynas’s shares.

What the bulls say

In an article in Livewire, Kardinia Capital portfolio manager Kristiaan Rehder picked Lynas as a stock that could outperform over the next five years.

One aspect of the company that caught Rehder’s eye was its balance sheet which holds $1 billion worth of cash and cash equivalents. This liquidity was said to be pivotal to Lynas scaling its production volume from 7.2 kilotonnes of neodymium and praseodymium (NdPr) per annum to 12 kilotonnes per annum through increased capital expenditure.

Rehder notes that Lynas is “highly profitable”, as well as efficient in transforming shareholder value into earnings. Measuring this is the return on equity (ROE) ratio, which Rehder believes will remain above 20% over the next few years while also being tethered to the commodity prices of NdPr.

Rehder also saw an advantageous macro backdrop for the Lynas share price that could keep demand for its product high. Tailwinds included the world’s transition to electric vehicles.

Additionally, Rehder told Livewire:

With rising geopolitical tensions globally, Lynas holds a strategic position as the dominant ex-China producer of rare earths, with the US Department of Defence agreeing to co-fund the development of two rare earth separation plants in the USA. We believe this warrants a valuation premium.

What the bears say

Representing the bears is Tony Paterno, senior client advisor at Ord Minnett, who recently gave Lynas a sell recommendation in an article that appeared in The Bull.

It should be noted that Paterno’s orientation on Lynas’s shares is far more nearsighted than Rehder’s.

Paterno drew his bearish thesis from Lynas’s first quarter results for FY23, which reported that the company’s revenue fell 44%.

“The 2023 first quarter update was weak, in our view,” said Paterno. Aside from the downfall in Lynas’s revenue, he also notes that its capital costs are set to increase by 15 per cent to $575 million.

This cost increase was addressed in Lynas’s quarterly report. The funds will be used to upgrade its facilities by adding a carbonate refining process at its Kalgoorlie Rare Earths Processing Facility.

Lynas share price snapshot

Despite its gains over the past month, the Lynas share price is down 10% year to date. For comparison, the ASX 200 is down 4% over the same period.

The company’s market capitalisation is around $8.28 billion.

The post Up 20% in a month, here’s the bull and bear case for the Lynas share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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 National Australia Bank Ltd (ASX: NAB) share price is taking a tumble on Tuesday.

In morning trade, the banking giant’s shares are down 3% to $30.37.

Why is the NAB share price dropping?

The good news for shareholders is that the weakness in the NAB share price has nothing to do with its performance or a bearish broker note.

Instead, it has everything to do with the bank’s shares trading ex-dividend this morning for its final dividend of FY 2022.

When shares trade ex-dividend, it means that the rights to an upcoming dividend payment remain with the seller and will not transfer to new buyers.

In light of this, a share price will usually drop in line with the value of the dividend to reflect this.

The NAB dividend

Last week NAB released its full year results for FY 2022 and reported an 8.3% increase in cash earnings to $7,104 million. This was driven largely by its business and institutional banking operations, which offset a softer performance from NAB’s personal banking business.

In light of its overall earnings growth in FY 2022, the NAB board declared a fully franked final dividend of 78 cents per share. This brought the bank’s full year dividend to 151 cents per share, which was an increase of 18.9% year over year.

Commenting on the dividend, NAB stated:

NAB is making excellent progress on our strategy and the Board is encouraged to see the operational results that this is delivering. This is reflected in improved earnings with all businesses contributing to underlying profit growth, and significant and sustainable momentum across the Group. Our most recent colleague engagement score is 76, compared with 77 in July 2021, and is close to the latest top quartile score of 78. Taking all this into account, the Board has determined dividends for the year of 151 cents per share, returning $4.8bn in total to shareholders.

When is payday?

Eligible NAB shareholders can now look forward to being paid this 78 cents per share final dividend in just under a month on 14 December.

The NAB share price is up 3% in 2022 despite today’s decline.

The post Why is the NAB share price sinking today? appeared first on The Motley Fool Australia.

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

A handful of electric vehicle (EV) stocks hit the brakes Monday morning as the optimism that pervaded the market last week began to wane. 

Additionally, several pieces of negative news specific to the EV sector — including a price target cut for Tesla (NASDAQ: TSLA) and a Barron’s column that expressed scepticism about the futures of some EV companies — contributed to the pessimistic mood shift. 

As of 11:22 a.m. ET, Tesla was trading down by 3.5%, Rivian Automotive (NASDAQ: RIVN) was off by 4.7%, and EV charging company ChargePoint Holdings (NYSE: CHPT) had lost 3.8%. 

So what 

Let’s start with the issue that is likely the main concern putting pressure on EV stocks now: persistent inflation. 

Last week, the stock market rallied after the latest inflation report was better than economists had been expecting. In October, the Consumer Price Index increased 0.4% month over month and was up 7.7% year over year, less than the expected sequential increase of 0.6% and 7.9% annually.

That helped the market rally for its best week in nearly five months.

Investors were optimistic that potentially slowing inflation would encourage the Federal Reserve to ease back on its aggressive interest rate hikes. 

But storm clouds returned over the weekend after Federal Reserve Governor Christopher Waller indicated that investors were reading too much into the October inflation report. 

While Waller said the Fed may be at the point where it can consider shrinking the increments of its federal funds rate hikes, he also said that “we’re not softening” and added: “Quit paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways out there.”

Those comments rained on investors’ parade and helped send EV stocks sliding Monday morning.

Adding to some of the EV pessimism was a column published by Barron’s over the weekend that asserted that rising inflation and falling share prices could hurt many EV start-ups as they try to raise capital. 

Those concerns could especially be weighing on ChargePoint Holding and Rivian Monday as investors try to gauge how well EV companies will be able to navigate continued supply chain issues and rising costs. 

Finally, investors may also be reacting to Bank of America cutting its share price target for Tesla from $325 to $275. Analyst John Murphy wrote in a research note distributed Monday that supply chain issues will continue to be a problem for the company and the broader electric vehicle industry. 

Now what 

EV stocks have tumbled significantly over the past year — Tesla fell 44%, Rivian tumbled 74%, and ChargePoint plunged by 51%. 

But Rivian showed in the third quarter that it can continue to increase its vehicle production — output was up by 67% — despite the headwinds. And the company still has $13.8 billion cash and cash equivalents on its books, enough to fund its operations through 2025. 

And Tesla’s latest results were solid. It increased sales by 56% and earnings by 69% compared to the year-ago quarter, and vehicle production jumped 54% in Q3 to 365,923 vehicles.

ChargePoint investors will get a closer look at the company’s financial picture on Dec. 1, when the company reports its results for its fiscal third quarter, which ended Oct. 31. 

But with inflation still high and investors concerned about the potential of a U.S. recession, it’s likely that EV stocks could remain volatile in the short term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why is Tesla stock falling today? appeared first on The Motley Fool Australia.

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Chris Neiger has no position in any of the stocks mentioned. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The fund manager Wilson Asset Management has named a fintech S&P/ASX 200 Index (ASX: XJO) share as one of its leading investment picks. Hub24 Ltd (ASX: HUB) shares are one of the largest 20 holdings within the WAM Capital Limited (ASX: WAM) portfolio.

WAM Capital is a listed investment company (LIC) which is aiming for “the most compelling undervalued growth opportunities in the Australian market”.

The LIC has managed to deliver gross portfolio returns of 14.9% per annum since its inception in August 1999. That compares to an average return per annum of 8.1% for the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA).

What’s the bull case for Hub24 shares?

WAM described Hub24 as a financial services company that is “focused on investment and superannuation portfolio administration services which also provides integrated platform, technology and data solutions”.

The fund manager noted that in the first quarter of FY23, Hub24 achieved $3 billion of net inflows from its platform, beating market expectations.

WAM explained the result was “driven by growth in its existing client base”, as well as the 13% increase in the number of advisers using its platform, compared to the prior comparative quarter.

It was also noted that Hub24 was recently named the best SMSF investment platform in the CoreData SMSF service provider awards, which ranks platforms for service quality and adviser preference.

In the quarter, Hub24 also said that its total funds under administration (FUA) was $68.4 billion at 30 September 2022. This comprised platform FUA of $52.4 billion (up 15.4%), and portfolio, administration and reporting services (PARS) FUA of $16 billion (down 9.9% year over year due to market movement).

Average monthly net inflows for FY23 to date was $995 million, up 1.7% from FY22.

The company noted that in the September quarter, there was an improvement in net inflows following a “slightly softer” FY22 fourth quarter.

Hub24 was ranked first in terms of annual FUA growth in percentage terms. The fintech ASX 200 share said that it still has a “solid pipeline of opportunities”.

WAM’s view

The investment team were impressed by that pleasing update considering the broader market volatility. WAM concluded:

We believe the company is well-positioned to continue building on this strong performance.

Some of the other ASX shares in WAM Capital’s top 20 holdings were: AMP Limited (ASX: AMP), Idp Education Ltd (ASX: IEL), IPH Ltd (ASX: IPH), Pro Medicus Ltd (ASX: PME), Temple & Webster Group Ltd (ASX: TPW), Webjet Limited (ASX: WEB) and Johns Lyng Group Ltd (ASX: JLG).

Hub24 share price snapshot

Since the start of the year, the Hub24 share price is down around 9%. But, over the past month, it has risen by around 20%.

The post This fintech ASX 200 share is ‘well positioned’ to keep growing: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd, Idp Education Pty Ltd, Johns Lyng Group Limited, Pro Medicus Ltd., and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and Pro Medicus Ltd. The Motley Fool Australia has recommended IPH Ltd, Johns Lyng Group Limited, Temple & Webster Group Ltd, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for dividend shares to buy, then you may want to look at the two listed below.

Here’s why experts rate these ASX 200 dividend shares highly:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share that experts rate as a buy is supermarket operator Coles.

It released its first quarter update at the end of last month and revealed a 2.1% increase in like for like sales. This was achieved despite cycling heightened COVID-19 related sales in the prior corresponding period and customers returning to dining out at cafes and restaurants.

This update went down well with the team at Citi. In response to its release, the broker retained its buy rating with an $18.90 price target.

As for dividends, Citi is now expecting a 72 cents per share dividend in FY 2023 and a 78 cents per share dividend in FY 2024. Based on the current Coles share price of $16.63, this will mean yields of 4.3% and 4.7%, respectively, for investors.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be in the buy zone is Coles’ former parent Wesfarmers.

While the conglomerate may have divested Coles, it still owns a high quality portfolio of businesses across a range of industries.

Morgans is very positive on the company in the current environment. This is due to its belief that the company’s retail offering is well-placed to navigate the tough retail environment due to its value offering. The broker highlights that “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

The broker expects this to support fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $46.82, this will mean yields of 3.9% and 4%, respectively.

Morgans has an add rating and $58.40 price target on its shares.

The post Experts name the blue chip ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As steep interest rate rises start biting Australian households, how badly will the economy crash?

That’s one of the biggest questions for investors as the market winds up 2022.

One way to shield your portfolio is to buy ASX shares of companies that supply other companies. That may help in avoiding volatility in consumer spending. 

Sure, any dip in economic fortunes will hurt every business. But if you’re removed from direct exposure to end customers then the dip might not be quite as dramatic.

After all, business-to-business transactions are very different from consumer sales. Often supply contracts are longer term, rather than engaged on a transactional basis.

So if you’re looking to buy ASX shares in businesses that provide for other businesses, here is a pair that experts have recently recommended:

‘Strong start to fiscal year 2023’

Multiple experts have told The Motley Fool in recent times that they like the look of Brambles Limited (ASX: BXB).

Now Ord Minnett senior investment advisor Tony Paterno joins those ranks.

“This global logistics supply company recorded a strong start to fiscal year 2023,” Paterno told The Bull

He noted that on constant currency terms, sales in the quarter ending September grew 14%. 

“Management expects sales to grow between 7% and 10% on a constant currency basis in fiscal year 2023.”

According to Paterno, this sales growth will be converted into profit.

“Management reiterated underlying profit growth of between 8% and 11% on a constant currency basis in fiscal year 2023.” Brambles shares also pay out a handy 2.88% dividend yield.

The share price has proven resilient in a turbulent year, now trading 4.4% higher than at the start of 2022.

Ecommerce can only grow in the coming years

Catapult Wealth portfolio manager Tim Haselum rates Goodman Group (ASX: GMG) as a buy at the moment.

He admitted there are worries for the industrial real estate provider in the coming months.

“Recently rising bond yields and exposure to Europe are short-term concerns,” said Haselum.

“However, over the longer term, we believe Goodman Group now presents a good buying opportunity, given near full occupancy and a development pipeline of about $13 billion.”  

Haselum’s team reckons a decent earnings boost is in the pipeline.

“In our view, earnings per share growth guidance of about 11% is conservative.”

The Motley Fool last week reported on Bell Potter’s latest memo, which indicated those analysts share the same bullish view as Haselum.

“The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or online retail sales) and the growing middle class in developing countries.”

The post 2 ASX shares that could ride out the coming volatility: experts appeared first on The Motley Fool Australia.

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• Why I’m seriously considering investing $10,000 in these ASX 200 shares
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• Goodman share price drops 3% on Q1 update

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.

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The fund manager Wilson Asset Management (WAM) has recently identified some S&P/ASX 200 Index (ASX: XJO) shares that it owns (or owned) in one of its main portfolios.

WAM operates several listed investment companies (LICs). Two of these LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) that looks at the larger businesses on the ASX, often referred to as ASX blue-chip shares.

WAM says WAM Leaders actively invests in the highest quality Australian companies. But does WAM have a good reputation for picking stocks?

The WAM Leaders portfolio has delivered gross returns (before fees, expenses, and taxes) of 14.3% per annum since its inception in May 2016. This compares to the S&P/ASX 200 Accumulation Index average return of 8.1% over the same time.

WAM outlined these ASX 200 shares in its recent monthly update.

Insurance Australia Group Ltd (ASX: IAG)

The fund manager revealed that IAG, an insurance giant in Australia, has been a “core holding” in the portfolio because it is a “high-quality company that has been impacted by multiple significant one-offs”. WAM referred to business interruption lawsuits, elevated natural disasters and management turnover.

The investment team noted that the downsides of the above factors have been “more than captured” by the IAG share price.

It continues to hold the ASX 200 share position because of a few different factors: continued strength in the premium rate cycle, leverage to higher bond yields, the internal turnaround program and the potential for a capital return.

WAM pointed out that one of the catalysts occurred in the middle of October 2022, with the business interruption test case appeal being dismissed by the High Court, and then IAG announced a $350 million on-market share buyback.

Star Entertainment Group Ltd (ASX: SGR)

The casino ASX 200 share was another name that the fund manager wrote about. It is another company that is in the WAM Leaders portfolio despite the negative media attention.

Investors have sent the Star Entertainment share price down around 20% this year.

WAM pointed out that the market valued the entire company at less than the land value of its properties alone.

The conclusion of the Star Entertainment Bell review’s final outcome was announced in October.

The investment manager thought there was an attractive risk-to-return opportunity given the precedent set by the Crown Resort Royal Commission finding last year.

As a reminder, the outcome was that a manager was appointed to control The Star Sydney casino, while Star Entertainment retains the profits made during the period, as well as the payment of a fine.

WAM noted the Star Entertainment share price has rallied on the back of the news, as it removed a key factor of uncertainty for investors.

The fund manager believes an unlisted investor would be a “natural owner” of the ASX 200 share because they could reap synergies with existing gaming assets, making it an “attractive takeover candidate”.

The post 2 ASX 200 shares that could be too cheap to ignore: fund manager appeared first on The Motley Fool Australia.

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More reading

• The IAG share price has smashed the ASX 200 this year. Is it too late to buy?
• Why did the IAG share price just hit a new 52-week high?
• 3 ASX 200 shares hitting new heights today
• Why IAG shares are a cheap buy right now: expert
• 22 high-yield ASX dividend shares Wilsons is targeting

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

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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Betmakers Technology Group Ltd (ASX: BET) remains the most shorted share on the Australian share market after its short interest rose to 15.9%. This betting technology company’s shares are down almost 70% this year.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 14.5%. Short sellers will have been pleased to see this travel agent giant’s shares tumble on Monday following a softer than expected trading update.
• Block Inc (ASX: SQ2) has seen its short interest rise to 12.4%. Short sellers continue to build their positions despite the payments company’s shares rising 25% in a month.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 11.9%. Short sellers appear to be increasing their positions after a softer than expected first quarter update from the network as a service provider.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 11.7%. This pizza chain operator’s shares have fallen heavily this year after inflationary pressures weighed on its performance.
• Perpetual Limited (ASX: PPT) has seen its short interest ease to 11%. Short sellers will have been disappointed to see this fund manager’s shares charge higher this month after receiving a takeover offer.
• Breville Group Ltd (ASX: BRG) has seen its short interest rise to 9.1%. Unfortunately for short sellers, this appliance manufacturer’s shares jumped last week after a solid first quarter update.
• Temple & Webster Group Ltd (ASX: TPW) has short interest of 9.1%, which is up strongly week on week. Valuation concerns and an ecommerce slowdown may be behind this high level of short interest.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.7%, which is up week on week again. Concerns over this infection prevention company’s business model change in the key US market have been weighing on sentiment.
• Sayona Mining Ltd (ASX: SYA) has seen its short interest fall to 8.6%. Short sellers may be targeting this lithium developer due to valuation and funding concerns.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Share market rally: How I’d invest $5,000 right now in ASX shares
• Why Elders, Flight Centre, Perpetual, and Telstra shares are dropping
• Could the flurry of recent takeover bids mean ASX 200 shares are going cheap right now?

Motley Fool contributor James Mickleboro has positions in Dominos Pizza Enterprises Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Dominos Pizza Enterprises Limited, Flight Centre Travel Group Limited, MEGAPORT FPO, and Temple & Webster Group Ltd. 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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