The share price of ASX lithium hopeful Winsome Resources Ltd (ASX: WR1) has been careening upwards in recent weeks. That is, until today. The stock has been placed in a trading halt this morning.

That’s right, the Winsome Resources share price will remain at 84 cents for now.

It’s expected to return to trade on an announcement, or Tuesday’s open, whichever comes soonest.

So, what’s stopping the ASX lithium share from trading on Friday? Keep reading to find out.

Why is the Winsome Resources share price frozen?

The Winsome Resources share price is frozen this morning as the company prepares to release details of a capital raise. Unfortunately, that’s all the market has to go off.

Though, news of a capital injection might not come as a major surprise given all the excitement going down with the ASX newbie lately.

It caught the attention of the market on 28 October when it announced encouraging drilling results from its Adina and Cancet projects, both located in Canada. It gained 27% on the back of the update.

The stock posted another 58% gain amid the release of additional updates, this time non-price sensitive, on 2 November.

Finally, in response to an ASX ‘please explain’ on 4 November, the company said:

With this series of encouraging exploration results being made public, there appears to be a recognition that [the company’s] market capitalisation is low when compared with many of its peers in the lithium exploration market.

Well, that appears to have since changed. Winsome Resources currently boasts a market capitalisation of $120 million, according to the ASX. That’s up from $54 million at the end of September.

Additionally, the company had $11.9 million in its coffers at the end of the September quarter. It used $1.5 million over the three-month period. That left the company with enough cash to fund an estimated 8.5 future quarters.

The anticipated capital raise will mark the first undergone by the lithium share since it floated on the ASX nearly 12 months ago.

Winsome Resources was spun-out of Metalstech Ltd (ASX: MTC) – raising $18 million by offering new shares for 20 cents as part of its initial public offering (IPO).

The post Up 140% in a month, why has ASX lithium share Winsome Resources just been halted? 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 Vanguard Australian Shares Index ETF (ASX: VAS) is one of the most popular exchange-traded funds (ETFs) in Australia. It’s also paying out sizeable dividends every quarter to investors. Are those dividends fully franked?

For investors that don’t know what this investment is, it’s an ETF that’s provided by Vanguard, one of the world’s biggest providers of cheap investment funds.

ETFs allow investors to buy a whole bunch of businesses in just one investment. This particular fund tracks the S&P/ASX 300 Index (ASX: XKO), being 300 of the biggest businesses in Australia.

What are franking credits?

Australia has a generous tax system that enables Australian tax residents to benefit from a refundable tax offset to reduce their taxes owed when they receive dividends.

Companies pay tax and then when a dividend is paid, the franking credits are attached. This either reduces the amount of income tax owed on the dividend or excess franking credits are refunded after taxpayers complete their tax return.

As investors get those dividends, they learn whether the dividend is fully franked or not.

Only Aussie companies that operate within the Australian tax system generate franking credits. Non-Australian businesses may pay unfranked dividends. Businesses operating in a trust structure don’t produce franking credits, though they can pass them on if they receive a dividend.

If a company made some of its profit in Australia and some overseas, its Australian profit may not generate enough franking credits to make the dividend fully franked – it may only be partially franked. For example, 80% of the dividend may have franking credits, or 60% of it, or whatever the percentage ends up being.

How this applies to the Vanguard Australian Shares ETF

As an ETF, this investment passes through the income it receives.

Some of the investment income it receives is fully franked, like the dividends from Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS).

But, there are also plenty of examples that don’t pay fully franked dividends, like Macquarie Group Ltd (ASX: MQG), CSL Limited (ASX: CSL) and Transurban Group (ASX: TCL).

The level of franking changes every quarter – based on what dividends it has received that quarter – but it doesn’t pay fully franked dividends/distributions because not every single dividend and distribution that it receives is fully franked. But, historically, the level of franking is usually at least 50% or higher.

What’s the current dividend yield?

The combined dividend yield of the shares that the Vanguard Australian Shares ETF owns at the end of September 2022 was 4.8%, excluding the franking credits.

The post Are Vanguard Australian Shares ETF (VAS) dividends fully franked? appeared first on The Motley Fool Australia.

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• 2 ETFs for ASX investors to buy for big dividends
• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market
• How regularly does the Vanguard Australian Shares ETF (VAS) pay dividends?
• Is the Vanguard Australian Shares ETF fighting off inflation?
• Why did the Vanguard Australian Shares Index ETF perform strongly in October?

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 CSL Ltd. The Motley Fool Australia has recommended Macquarie 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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The S&P/ASX 200 Index (ASX: XJO) has opened the day notably higher and is on course to end the week with a very strong gain.

At the time of writing, the benchmark index is up an impressive 2.5% to 7,140.4 points. This follows a stellar night on Wall Street after the latest US inflation data came in lower than expected.

According to CNBC, October’s US consumer price index rose 0.4% for the month and 7.7% from a year ago. Whereas economists were expecting increases of 0.6% and 7.9%, respectively.

This has sparked hopes that inflation has now peaked and the US Federal Reserve will slow its interest rate hikes.

ASX 200 tech shares rocket

One area of the market that is performing very positively is the beaten down tech sector. This follows a whopping 7.35% gain by the Nasdaq index on Wall Street last night.

Here’s a summary of how some ASX 200 tech shares are performing on Friday morning:

• Altium Limited (ASX: ALU) share price is up 8%
• Block Inc (ASX: SQ2) share price has jumped 11%
• WiseTech Global Ltd (ASX: WTC) share price has risen 9%
• Xero Limited (ASX: XRO) share price is up 10%

This has led to the S&P ASX All Technology index rising a sizeable 5.7% so far today.

Will the rally last?

Analysts at Wolfe Research have warned investors not to get too excited by this inflation reading. It said:

We wouldn’t be surprised to see some near-term follow through on this morning’s very strong rally, including the S&P 500 trading up toward its 200-day moving average into the 4050-4100 range. However, this morning’s report does not make us change our views that the FOMC will ultimately hike the fed funds rate to between 5%-6% and that a demand-driven recession will hit next year.

The post ASX 200 tech shares jump X% appeared first on The Motley Fool Australia.

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• Xero share price could rise almost 80%: Goldman Sachs
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The Accent Group Ltd (ASX: AX1) share price is on course to end the week with a strong gain.

At the time of writing, the footwear retailer’s shares are smashing the All Ords index with an impressive 13% gain to $1.71.

Why is the Accent share price racing higher?

Investors have been bidding the Accent share price higher on Friday after the company released a trading update ahead of its annual general meeting.

According to the release, business has been booming for Accent so far in FY 2023. For the first 18 weeks of the financial year, total group owned sales are up 52% compared to the prior corresponding period.

Pleasingly, the company’s decision to focus on improving its gross margin has been a success, with Accent reporting a 570 basis points increase in its gross margin compared to the same period in FY 2022.

This bodes well for its first half earnings growth if it has managed to control its operating costs during the period.

Accent’s CEO, Daniel Agostinelli, was pleased with the stronger than expected start to the year. He commented:

We are very pleased with trade to date which has been above expectations. Our continued focus on driving full price, full margin sales has resulted in strong margin recovery from last year. Our store opening program is on track and we expect to open around 50 new stores in H1.

And while Agostinelli couldn’t provide any forward guidance, he appears very optimistic on the company’s prospects in the all-important holiday trading period. He said:

Whilst we provide no forward guidance, inventory levels reflect strong deliveries of exciting new product across all banners, and the Group’s in-stock position along with sales and operational plans are well set heading into the three most important trading months of the year.

The post Why is the ASX All Ords retail share rocketing 13% higher today? appeared first on The Motley Fool Australia.

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• Analysts say these ASX dividend shares are buys
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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 recommended Accent 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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Investing great Peter Lynch is widely quoted as saying, “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”. That’s likely welcome insight for fans of ASX tech share Bravura Solutions Ltd (ASX: BVS) after two directors snapped up additional stock following its recent downturn.

Bravura’s stock plummeted 52% on news the provider of wealth management and funds administration software faces a reconfiguration earlier this month. The technology company told the market:

[W]hilst Bravura has solid foundations, the business will be required to be reconfigured to scale our products across customers.

The pace of change from a traditional services model to a more scalable technology solutions provider will accelerate but requires a realignment of the organisation and resources to create greater product discipline.

The tumble saw the Bravura share price hit an all-time low of 54 cents. Though, it’s since posted a slight recovery. It closed Thursday’s session at 70 cents – still a far cry from its 52-week high of $2.77.

But directors are apparently confident in the company’s future. Let’s take a look at the latest insider buying going down at the embattled ASX tech share.

Insiders continue buying decimated ASX tech share

The Bravura share price has suffered a major nosedive this month, and some of the tech company’s directors are buying the dip.

Two insiders at the ASX tech stock have bolstered their holding in recent weeks. They’ve indirectly bought a combined total of 777,000 shares on-market.  

Bravura chair Neil Broekhuizen was the first to take advantage of the downturn. He indirectly bought 636,000 Bravura shares, paying just 62.53 cents apiece on 4 November, as my colleague Sebastian reports.

The whole parcel cost Broekhuizen just under $400,000. That same holding would have been worth over $775,000 at the end of October.

Now, director Alexa Henderson has joined in on the insider buying.

An ASX release states her hold was indirectly bolstered by 141,000 Bravura shares via her spouse’s superannuation fund on Monday.

Each stock was purchased for 70.72 cents – leaving the parcel with a value of nearly $100,000. That’s a $72,000 discount on what the holding would have cost as of the final close of last month.

Henderson now directly holds 10,000 shares in the ASX tech stock and indirectly boasts another 201,975 shares.

The post Directors are continuing to buy up this decimated ASX tech share appeared first on The Motley Fool Australia.

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• Why is the Bravura share price crashing 59% today?

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 positions in and has recommended Bravura Solutions Ltd. The Motley Fool Australia has positions in and has recommended Bravura Solutions 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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It’s getting closer to 2023. I think that there are a number of S&P/ASX 200 Index (ASX: XJO) shares that look like opportunities that could do well next year.

There has been a broad sell-off of the (ASX) share market. I think that has opened up a number of compelling ideas that, in my opinion, can deliver growth in the long term.

Pinnacle Investment Management Group Ltd (ASX: PNI)

This is an interesting investment management business. It partners with good fund managers that want to build their own businesses.

Pinnacle can help the manager with a lot of administrative things like legal, finance, compliance and so on. It can also provide seed funding.

The Pinnacle share price has fallen by 50% in 2022, making it much better value in my opinion. According to Commsec, it’s now valued at 19 times FY23’s estimated earnings and 17 times FY24’s estimated earnings.

As soon as when markets stop falling, I think the return of longer-term asset price growth will be a natural boost for the growth of Pinnacle’s underlying funds under management (FUM), and investment managers may also see stronger inflows again from clients.

I also like that the ASX 200 share is steadily adding to its portfolio with new managers. One of its latest moves has been into Canadian shares with a Canada-based manager.

Corporate Travel Management Ltd (ASX: CTD)

This is one of the largest corporate travel management businesses in the world. But, the Corporate Travel share price has dropped around 25% this year despite the ongoing recovery of the travel market.

I think the recovery is a great reason to be interested in the business. The company recently gave a trading update that outlined recent activity.

Activity continued to grow in October 2022 for the ASX 200 share compared to September 2022.

September’s revenue recovery was 75% of pre-COVID times, with October tracking higher than September. It’s also gaining market share.

By the end of FY23, it’s expecting a full recovery. In FY24 it might make $265 million of earnings before interest, tax, depreciation and amortisation (EBITDA) on $810 million of revenue. But, that assumes that airport problems are solved by June 2023 and that Greater China borders are open with no travel impediments.

According to Commsec, it’s currently valued at 25 times FY23’s estimated earnings and 16 times FY24’s estimated earnings.

Idp Education Ltd (ASX: IEL)

This business is a company that’s involved with global student placement and English language testing. The IDP Education share price is down by 18% this year.

With all of the impacts of COVID-19, borders were shut, and profits sunk. But, now that borders are open, things are recovering strongly for the ASX 200 share.

FY22 saw total revenue increase by 50% and net profit after tax (NPAT) increase by 161%.

The business has expanded its global network, introduced English language testing online and it’s delivering much stronger profit margins.

I think a full year of open borders will be very beneficial for the company’s earnings and it has the potential to keep making bolt-on acquisitions.

According to Commsec, the IDP Education share price is valued at 48 times FY23’s estimated earnings and 36 times FY24’s estimated earnings.

The post Which are the best ASX 200 shares to buy now for 2023? appeared first on The Motley Fool Australia.

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• Morgans names 2 fast-growing ASX 200 shares to buy now
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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 Idp Education Pty Ltd and PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Corporate Travel Management 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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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

Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. ET.

Those are massive moves for companies that big, but today was no ordinary day. After basically a year of negative surprises in the monthly Consumer Price Index (CPI) releases, with some exceptions, today’s CPI print was lower than expected, fueling hopes of a Federal Reserve pause on its aggressive interest rate hikes.

These tech giants are each at least partially exposed to the troubled PC sector, which has been one of the hardest-hit areas of tech. While enterprise spending on cloud and servers has been hanging in, the prospect of more interest rate hikes or recession had led to fears another shoe was to drop. So today’s print was especially positive, given that the sooner inflation declines, the sooner the Fed can stop hiking interest rates, and the greater the possibility of avoiding a recession. 

So what

Obviously, Apple and Microsoft make the two main operating systems for virtually all PCs, and Intel’s largest business segment is its PC processors. Therefore, each stock had seen a big sell-off this year, despite their size, moats, and relatively limited competition.

Of note, technology research firm Gartner projects that third-quarter PC shipments were down a stunning 19.5% year over year — the biggest drop since it began tracking PC shipments in the 1990s.

So why is today’s CPI print so important in relation to PC sales? Well, the rapidly rising interest rate hikes tend to hit interest rate-sensitive items hardest first, which are usually big-ticket items like housing, autos, home electronics, and business fixed investments, which these days include data centers and enterprise PCs.

Add to that the fact that so many consumers bought new computers during the 2020-2021 timeframe, and could therefore defer the purchase of a new computer, and the rapid shift in rates led to a huge air pocket in PC sales. So, the potential for a pause in interest rate hikes could give big-ticket items a boost from their current severe downturn. 

Apple has held up much better than others, as it had fallen “only” 23.6% this year, as opposed to 32.8% for Microsoft and 44.5% for Intel.

AAPL Year-to-Date Total Returns (Daily) data by YCharts

It’s somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. Microsoft’s More Personal Computing segment, which is geared toward consumer-facing PCs, video games, and Bing digital advertising, is only 30% or so of the business, as opposed to Apple being predominantly a consumer-facing company, so it’s strange that Apple had held up better than Microsoft this year. The outperformance does go to show how strong Apple’s brand is and how much of a staple the iPhone is.

Intel has really been feeling the pain of the PC downturn this year, because that had been the company’s cash cow. New Intel CEO Pat Gelsinger has ambitious plans to catch up to Taiwan Semiconductor Manufacturing in leading-edge semiconductors by achieving five node transitions in four years, while also building out a massive foundry ecosystem to serve third-party chip designers.

That’s incredibly hard and very expensive to do, which is why the plummet in PC sales has been so harmful to Intel this year, as it deprived the company of needed cash to execute its investment plans. That’s why Intel has traded down to just a single-digit P/E ratio this year.

Given the shellacking these stocks have already taken, and given that the market is forward looking, it’s no surprise they are ripping higher at the prospect of inflation cooling off.

Now what

Given the lags with which the Fed’s economic policy operates, investors should know that while inflation is slowing, it’s because the economy is also slowing. Over the coming months, the Fed will try to keep rates high enough to cool inflation further, without tipping the economy into a recession. Despite today’s rally, that’s still a tricky proposition. 

A recession would be bad news for all stocks, but of these three, especially Intel, since it is in a capital-intensive hardware business.

On the other hand, today’s promising CPI print could allow the Fed to slow down or even stop its rate increases. That would be good for all economically sensitive stocks, as long as the economy doesn’t have too bad of a downturn.

As is often the case, Apple and Microsoft still look like strong core holdings for the long term, even in spite of this year’s declines. With Intel, an investment really comes down to your belief in CEO Pat Gelsinger’s vision and ability to execute. If the turnaround works, Intel stands to have the most upside of these three names; however, if all that spending doesn’t result in solid returns or Intel catching up to Taiwan Semi in leading-edge technology, it could be a problem, even if Intel’s stock does look cheap today.

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

The post Why big US tech stocks ripped higher today appeared first on The Motley Fool Australia.

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• Better big tech stock: Apple vs. Alphabet
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• Apple’s latest price changes tell investors a lot about the future of the company
• Microsoft beats back King Dollar and rising interest rates

Billy Duberstein has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Intel, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner and has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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There’s no end to the advice offered to investors seeking ASX dividend shares to buy. Additionally, individual investors will likely search for winners in a way that best suits them and their goals.

If you’re looking to build an ASX dividend shares ‘wish list’ but not sure where to start, you’ve come to the right place.

As the saying goes, ‘failing to plan is planning to fail’. That’s why I believe it’s a good idea to jot down a ‘best buys now’ list when building a portfolio of ASX dividend shares.

That way, I can easily identify where my cash will go, what its anticipated growth prospects are, and whether I am diversified to my liking before jumping in with both feet.

Often the best place to begin a ‘best ASX dividend shares to buy now list’ is by finding a few quality shares trading at cheap prices.

How I’d build a ‘best ASX dividend shares to buy now’ list

Identify quality ASX dividend shares

There are plenty of factors that can help determine if an ASX dividend share is ‘high quality’. Personally, I tend to look for shares with strong balance sheets, notable competitive advantages, and consistent dividends.

A company that corners its market with an irreplaceable offering is ideal. Though, a loyal clientele and ability to grow is also a major competitive advantage.

A strong balance sheet can help bolster that growth. It can also help a company navigate tough times.

In the case of ASX dividend shares, a strong balance sheet might also suggest a company is managing its capital well, thereby reducing the risk they’ll reduce or forego dividends when things don’t go to plan.

But investors would be wise to avoid being blinded by a company’s strengths. Nearly every business has a weakness. Identifying them can be helpful when assessing potential risk factors.

There are plenty of other factors worth considering on an individual level. Different investors have different goals, investment timeframes, and risk tolerances.

Thus, individuals might choose to search for dividend-paying growth shares over blue-chip stocks, or vice versa, for instance.  

Seek out cheap stocks

A ‘best ASX dividend shares to buy now’ list should also consider if ‘now’ is the right time to buy into a particular company.

That means, once I’d found a few quality shares that suit my investment style, I would determine if they’re trading for reasonable prices.

There are many measures that can be referred to when considering if an ASX dividend share represents good value. Some examples include dividend yields, price-to-book (P/B) ratios, and price-to-earnings (P/E) ratios.

These are all simple measures that rely on data easily found in a company’s earnings reports. While they’re not perfect – and they certainly can’t predict the future – they can provide a good starting point in accessing value.

Of course, a consistently high dividend yield is the dream. However, it’s worth considering if a company can continually afford to offer such yields, particularly if its operating conditions shift in the future.

Derisk, derisk, derisk

Finally, I would contemplate how diverse my ‘best ASX dividend shares to buy’ list is, and how diverse it needs to be. That means investing in numerous companies across various sectors.

A strategically diverse portfolio provides protection from single-sector or company downturns. It also sees an investor exposed to a greater number of opportunities across the share market.

Though, diversification doesn’t guarantee returns or downside protection.

The post How I’d build a ‘best ASX dividends shares to buy now’ list appeared first on The Motley Fool Australia.

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More reading

• Xero share price could rise almost 80%: Goldman Sachs
• Why has the NAB share price had such a miserable week so far?
• ‘Use the volatility’: QVE reveals 3 ASX shares it just bought
• Lest We Forget
• Analysts say these ASX dividend shares are buys

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 Xero Limited (ASX: XRO) share price had a day to forget on Thursday.

A half-year earnings miss and the surprise exit of its CEO led to the cloud accounting company’s shares falling over 10% to $64.74.

This means the Xero share price is now down almost 56% since the start of the year.

Is the Xero share price weakness a buying opportunity?

According to a note out of Goldman Sachs, its analysts believe that investors should be picking up shares while they’re down.

This morning the broker has reiterated its buy rating with an improved price target of $115.00.

Based on the current Xero share price, this implies potential upside of almost 78% for investors over the next 12 months.

What did the broker say?

While Xero’s earnings fell well short of the broker’s estimates, it was pleased with its top line performance and particularly its average revenue per user (ARPU) metric. It commented:

This momentum is continuing, with exit ARPUs in both ANZ & International well above blended ARPU during the half (despite. c.NZ$10mn of Xerocon revenues). This suggests a strong revenue trajectory into 2H23, aided by further price rises (NA in Nov, Partner in Mar) ongoing transaction growth, partly offset by spot FX.

Goldman also highlights that while some may doubt Xero’s ability to deliver improvements in its subscriber growth in the UK and North America during the second half, it believes it is possible. The broker explained:

Finally, the expected improvement in 2H sub growth in the UK & NA will likely be viewed with some skepticism, but should benefit from improved go-to market and the revised MTD compliance changes in November.

Its analysts also note that Xero’s new CEO, Sukhinder Singh Cassidy, will be based in the United States. They suspect this could be a sign that Xero will be increasing its focus on this massive market.

Ms Singh Cassidy will be US domiciled, suggesting this market could be an increasing focus for XRO (large TAM, but in our view the most competitive for Xero.

All in all, the broker believes Xero is well-placed for long term growth and great value at current levels.

The post Xero share price could rise almost 80%: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch…
• Why Block, Lake Resources, Pendal, and Xero shares are dropping today
• Xero share price sinks 7% on half-year earnings miss and CEO exit
• 5 things to watch on the ASX 200 on Thursday

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 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.

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The National Australia Bank Ltd (ASX: NAB) share price has fallen by around 3.5% this week. That compares to the S&P/ASX 200 Index (ASX: XJO), which has gone up 1%. So, NAB has noticeably underperformed the market.

Share prices move all the time — and there could be an uptick for a number of ASX 200 shares today following a strong night on Wall Street.

But this week there was particularly important news for NAB – the big four bank released its FY22 result for the 12 months to September 2022.

Let’s have a look at some of the highlights.

FY22 result earnings recap

Statutory net profit after tax (NPAT) increased by 8.3% to $6.89 billion and cash earnings increased by 8.3% to $7.1 billion.

With the final dividend of 78 cents per share, this brought the annual dividend per share to $1.51 per share. The full-year dividend was increased by around 19%. At the current NAB share price, the FY22 grossed-up dividend yield is 7%.

However, the net interest margin (NIM) – the amount of money a bank makes on its lending – declined six basis points to 1.65%

Expenses increased by 5.8%, which is a sizeable increase. Excluding the impact of the Citi consumer business, expenses rose by 3.9%, with the biggest elements including higher remuneration and volume-related costs, higher technology and investment costs and increased financial crime and remediation spending, partly offset by productivity benefits.

Interestingly, the ratio of the number of loans that are over 90 days past due and impaired gross assets fell from 0.94% of total loans in FY21 to 0.66% in FY22.

It also said that housing lending competitive pressures are “likely to intensify” and that the NIM impact of RBA cash rate increases on unhedged deposits is expected to peak in the first half of FY23, while the estimated benefit of cash rate increases from October 2022 is “expected to be lower”.

Is the NAB share price an opportunity?

The broker Goldman Sachs is positive on NAB, according to reporting by my colleague James Mickleboro. It has a buy rating on the business, with a price target of $35.41. That implies a possible rise of around 14%.

Goldman Sachs reportedly said:

NAB’s cost management initiatives, which seem further progressed vs. peers, has allowed it to deliver the highest levels of productivity over the last three years, and we think this leaves it well positioned for an environment of elevated inflationary pressure (c. A$400 mn productivity savings expected in FY23).

However, Morgans currently rates it as a hold, with a price target of just $30.63. That suggests the NAB share price could remain flat over the next year. It lowered its expectations for the NIM leverage, though it’s still expected to rise and it’s also expecting higher costs. There could also be problems in the future with possible loan issues.

Citi is neutral on the business, with a price target of $32.75. That could be a possible rise of around 5%. A slowdown in business lending, where NAB is a key player, could also impact NAB’s future growth.

NAB share price snapshot

Despite the recent decline, the NAB share price has still risen by 5% since the beginning of the year.

The post Why has the NAB share price had such a miserable week so far? appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs tips major upside for the NAB share price
• ASX 200 bank shares: Buy, hold, or fold?
• 5 things to watch on the ASX 200 on Thursday
• Everything you need to know about the NAB dividend
• Why is the NAB share price sinking today?

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

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