The CSL Limited (ASX: CSL) share price is out of form this week.

Since the start of the week, the biotherapeutics company’s shares have fallen 3.2% to $271.64.

This is despite the company releasing an update on its new CSL Vifor business earlier this week.

Can the CSL share price bounce back?

The team at Morgans was pleased with what it saw at the company’s presentation earlier this week.

In light of this, it continues to see CSL as a share to buy and has retained its add rating with a trimmed price target of $312.20.

Based on the current CSL share price, this implies potential of 15% for investors over the next 12 months.

What did the broker say?

Morgans notes that the new CSL Vifor business has a strong position across several core therapy areas. It commented:

Vifor offers a leading portfolio across three core therapy areas (Iron deficiency; Dialysis; and Nephrology), with strong brands and a deep pipeline poised to expand the commercial opportunities and support chronic kidney disease patient across the treatment continuum (from preventing kidney damage, to chronic kidney disease treatment, to dialysis treatment to transplant).

The broker was pleased to see that management remains “extremely confident” in the long term growth potential of these therapies. It commented:

Management remains “extremely confident” in its ability to drive long-term sustainable growth by better leveraging a much more diversified product portfolio and deeper pipeline. Notably, management targets >10% revenue growth across Vifor over the medium term and reiterated profit accretion (low-to-mid teens ex-amortisation /one-off costs), including US$75m in cost synergies over the first 3 years.

In light of the above and improving plasma collections, it believes now is the time to buy. It concludes:

While plasma inventories need to be rebuilt over time, strong plasma collections, with ongoing demand across both Behring and Seqirus, coupled with Vifor’s added breadth, portends strong growth and momentum.

The post Here’s what Morgans is saying about the CSL share price 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 share could be 50% higher next year: expert
• Citi says CSL share price is great value amid large iron therapy opportunity
• 2 classic healthcare ASX shares priced to buy now: expert
• 3 ASX 200 shares that turned a $5,000 investment into $1 million
• Why is the CSL share price dropping today?

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 CSL Ltd. 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/D1a6lBy

So ASX shares and the S&P/ASX 200 Index (ASX: XJO) aren’t in a market crash. At least not yet.

If we want to get technical, a ‘market crash’ is defined by a (usually rapid) 20% or greater drop from an index’s most recent all-time high. The ASX 200 happened to peak at just over 7,600 points back in August last year.

As of yesterday’s close, the ASX 200 was at a far-lower 6,730 points. Now that is a painful 11.4% drop or so. This puts it in ‘correction’ territory. But not quite a crash. Things would have to get a lot uglier for that to happen.

And they well could. While we Aussie investors have so far dodged a 2022 crash, the Americans haven’t been so lucky. As it currently stands, the flagship US index – the S&P 500 Index (SP: .INX) – is currently a nasty 22.5% or so off its last all-time high.

So the US markets are indeed in crash territory. It’s always possible that our markets follow suit sooner or later (I’m not a harbinger of doom – it’s also equally possible that they don’t).

Most investors fear the dreaded words ‘market crash’. It is understandable to be afraid. Very Afraid.

It’s never fun seeing you’re net worth fall. It can be soul-destroying when your carefully selected investments seemingly spit in your face by plunging in value. That’s especially so if you’ve retired or plan to soon.

Look to Warren Buffett

But a market crash can be a time of great opportunity, and nothing for investors to fear.

The legendary investor Warren Buffett, chair and CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), puts it this way:

‘Price is what you pay; value is what you get’. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.

Another great Buffett quote explaining this rationale is this:

We are going to be buyers of things over time. And if you’re going to be buyers of groceries over time, you like grocery prices to go down. If you’re going to be buying cars over time, you like car prices to go down.

We buy businesses. We buy pieces of businesses: stocks. And we’re going to be much better off if we can buy those things at an attractive price than if we can’t.

The markets, both the American and Australian, have never failed, in all their histories, to recover from a crash to attain a new all-time high. Both markets were at an all-time high just last year.

Nothing in life or investing is ever guaranteed, of course. But if I were a betting man, I wouldn’t put my money in 2022 being an exception to this rule.

Market crashes are nothing to be feared

As AMP economist Shane Oliver recently put it in a Livewire article:

Bouts of volatility are the price we pay for the higher longer-term returns from shares compared to other assets like cash and bonds… So, if we want to grow our wealth, we need exposure to growth assets like shares to make the most of the power of compound interest, but with that comes rough patches every so often…

The key is to look for opportunities pullbacks provide. It’s impossible to time the bottom, but one way to do it is to “average in” over time.

Just look at the National Australia Bank Ltd (ASX: NAB) share price. It got down to just above $13 a share during the COVID market crash of 2020. Yesterday, it closed at $31.89.

That was an opportunity well worth jumping on. The share market is littered with similar cases of quality companies getting thrown out with the bathwater of a market crash. Only to make the bravest investors far richer once the dust settled.

As you can see, a market crash is nothing to be feared for the savvy investor.

The post Buffett: Why a market crash can be an investor’s best friend 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

• Yes, buy ASX shares now. Don’t wait like everyone else: expert
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• ‘Share market falls are normal’: Here’s how to make the most of them
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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/1cWsUTa

Are you looking for divided shares to buy? If you are, then take a look at the two listed below that Morgans rates as buys.

Here’s what the broker is saying about these dividend shares:

Dexus Industria REIT (ASX: DXI)

Morgans is a big fan of this industrial property company and has named it as a dividend share to buy with an add rating and $3.25 price target.

The broker likes the company due to its exposure to key industrial markets, which remain robust and have a solid rental growth outlook backed by strong tenant demand. Its analysts also highlight that the company’s development pipeline provides near and medium term upside potential.

It commented:

DXI’s portfolio is valued at $1.76bn and is weighted 79% towards industrial and logistics assets. The weighted average cap rate is 5.1%; WALE 5.9 years; and occupancy 97%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium-term growth opportunities via the development pipeline.

As for dividends, Morgans is expecting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.49, this will mean yields of 6.6% and 6.8%, respectively.

Santos Ltd (ASX: STO)

Another ASX dividend share that Morgans is positive on is Santos. The broker currently has an add rating and $9.30 price target on its shares.

Morgans believes that Santos is well-placed for growth in the current environment. It explained:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

In respect to dividends, the broker is forecasting dividends per share of 22.1 cents in FY 2022 and 29.7 cents in FY 2023. Based on the latest Santos share price of $7.53, this will mean yields of 2.9% and 3.9%, respectively.

The post Broker names the ASX dividend shares to buy now 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

• Here are the top 10 ASX 200 shares today
• Santos share price lifts following US$1 billion quarter
• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price getting left behind the ASX 200 today?
• 5 things to watch on the ASX 200 on Tuesday

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/86YwjKg

There’s rarely a boring moment on the Aussie bourse, and this week has been no different. Huge announcements from many of the market’s favourite ASX shares have been making news over the last few days.  

We’ve had major news of takeovers, cyberattacks, guidance upgrades, lithium prices, and a whopping $100 million fine.

So, without further ado, these are the ASX announcements you need to know about today.

These ASX shares released major announcements this week

Westpac eyes Tyro Payments

Let’s start with the announcement from big four bank Westpac Banking Corp (ASX: WBC) and tech share Tyro Payments Ltd (ASX: TYR).

The pair revealed they’re in takeover talks on Tuesday after plenty of speculation the fintech could be an acquisition target.

As of today, there’s been no word how much might be on the table for the ASX favourite, or whether a deal will go ahead.

Star slapped with $100 million fine

Speaking of a potentially hefty sum, the Star Entertainment Group Ltd (ASX: SGR) responded to the New South Wales Independent Casino Commission (NICC)’s decision to fine the casino operator $100 million and suspend its gaming licence on Monday.

NICC chief commissioner Philip Crawford said earlier that day:

If it were not for The Star’s change in attitude and our belief that it is in the public interest to protect the thousands of jobs at risk, there might have been a different outcome.

Medibank’s unfurling cyber attack

It was a rough week for Medibank Private Ltd (ASX: MPL) shares. They’ve been in and out of the freezer as the company continually updated the market on a “cyber incident” that became an attack.

The company initially gave assurances no customer data appeared to have been taken.

However, come Thursday, it announced to the ASX it was being held to ransom by hackers. The criminals were threatening to release 200 gigabytes of its customers’ data, including certain medical information.

Origin reveals guidance

Origin Energy Ltd (ASX: ORG) shares have also been in the news after the company finally announced financial year 2023 guidance for its energy markets business.

It expects the segment to bring in between $500 million and $650 million of EBITDA this fiscal year.

The company previously withdrew its outlook due to “material developments in… energy markets”.

Pilbara Minerals’ lithium auction

The final ASX announcement to detail today came from lithium share Pilbara Minerals Ltd (ASX: PLS).

The company accepted a pre-auction offer of US$7,100 dry metric tonnes for its latest shipment of spodumene concentrate. Therefore, the shipment has a total value of more than US$35 million.

The post 5 big ASX announcements making news this week 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

• 3 ASX shares that are the top buys right now: expert
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Westpac share price offers best value in the sector: Goldman Sachs
• Medibank shares remain in limbo after customer data hack confirmed
• Medibank share price halted after hackers claim to have taken customer data

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. 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/x9jEueg

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, Alphinity Investment Management portfolio manager Elfreda Jonker presents three ASX shares that her fund would love to buy now.

Hottest ASX shares

The Motley Fool: What are the three best stock buys right now?

Elfreda Jonker: Yeah, so I’ll talk about three different stocks, all quite diverse to just showcase our ability to invest in a variety of different companies, be it growth, defensive or cyclical. 

The first one is Brambles Limited (ASX: BXB). It’s a supply chain logistics provider of reusable pallets, crates and containers. What we currently see is that globally there’s a pallet shortage and that a lot of the competitors are actually behaving quite rationally, particularly in the US, and this has really helped Brambles to put through material price increases and the structure of their contracts are also improving. 

So what you are seeing on the back of this shortage and the fact that they can push up their prices, you have seen Brambles actually really improving their margins despite also being exposed to a lot of input cost pressure. We also see upside from improved cycle times.

From an overall outlook… free cash flow is expected to improve. As lumber costs normalise we think a lot of these price increases will continue to roll through and we think there’s quite a bit of upside still into 2022 and 2023. We expect to see ongoing earnings upgrades for Brambles. 

It’s also trading relatively cheap on a 16-times versus five-year average of around 20 times. So we quite like the story. We think it’s exposed to some of these international trends that we can benefit from here in Australia particularly given their big exposure to the US. 

The next stock is more on the consumer side, that is Carsales.com Ltd (ASX: CAR). Carsales is a dominant online car trading platform in Australia. They’ve got significant pricing power and an excellent management team in our view. We view Carsales as quite a well-managed business. They’re dominant in their space, they really are getting strong yield improvements both on the dealer side as well as the private side currently. 

As with Brambles, they’re seeing like-for-like nice price increases coming through as well as new car volumes starting to flow through driven by the global shortages. So they are seeing a whole bunch of new products coming in, they’re benefiting from higher volumes as well as higher prices. And I think that, in return, should drive solid margin expansion and we expect that to be ahead of where the market’s currently expecting that to be.

In addition, they’ve also been boosted by their South Korean operations that’s really booming and doing very well. So that’s a key source of earnings upgrades. That’s around 15% of revenues. And also in the medium term, we are quite optimistic about that US acquisition that they’ve made, Trader Interactive. That’s a much less sophisticated business compared to the others. So we think there’s a lot of synergies that they can flow through into that business. 

For us, this is in the shorter term, we see upgrades coming through but also longer term, we see a good business model there that can continue to help grow that business.

MF: Compared to other digital companies, the Carsales share price has been reasonably resilient this year — it’s only dropped about 20%?

EJ: Yes, it’s definitely been very resilient in comparison. Firstly, as a starting point, it doesn’t have as large a valuation as some of these other higher-growth companies. It’s trading at a 25 PE currently versus the long-term average of 28. So that’s a lot more palatable in an environment where [interest] rates are rising, to be in that sort of evaluation rather than these 60-plus companies. So I think that is definitely one reason. Also… they are doing used and new products, it’s definitely I think a little bit more defensive than some of the other business models out there.

The third option is a little bit more on the defensive side — it’s Medibank Private Ltd (ASX: MPL). That’s one of the largest private health insurance companies in Australia and they’re currently benefiting from big market share gains as well as the reshaping of the claims curve. 

Obviously, they’ve been quite a big beneficiary of COVID in that a lot of people did not claim. As a result, they’ve built up a lot of reserves and a very strong balance sheet — it’s really putting them in a very good position to do a lot with that balance sheet. They have been giving back to customers and that’s created a lot of goodwill for customers, but it’s also helped them to smooth out the earnings. 

So that’s what’s creating this quite a defensive pipeline for them and a pipeline of really good strong earnings growth coming through, in combination with an ungeared balance sheet, which is always really helpful for business to help grow the non-insurance part of the business. 

For us, it’s probably one of our highest conviction positions currently in our funds. It might not be one of these great high-growth businesses with huge earnings growth, but in an environment where either the market’s not growing or seeing really small upgrades, even the smaller upgrades that you can get from companies like this that’s consistent and has got a lower risk to it, that’s, in our view, a good position to be in.

MF: The private health insurance industry can become quite political — you’re not too worried about that?

EJ: That’s always, I think, a risk in this space. At this point in time, we think they actually have very good relationships and we are not overly concerned around something that we think is waiting in the wings that could surprise us massively. 

But it is a risk that people need to bear in mind when they do invest in this space and take that into account in the valuation that they’re willing to pay for a company like this.

The post 3 ASX shares that are the top buys right now: expert 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

• Medibank shares remain in limbo after customer data hack confirmed
• Medibank share price halted after hackers claim to have taken customer data
• Medibank share price halted ahead of new ‘cyber incident’ update
• 5 things to watch on the ASX 200 on Tuesday
• Why Adbri, Costa, Hawsons Iron, and Medibank shares are sinking today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. 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/HRSO9BQ

Unless you are heavily invested in mining stocks, your portfolio is likely looking pretty red by now.

You likely don’t need reminding, but for the record the S&P/ASX 200 Index (ASX: XJO) has fallen 11.3% year to date, S&P 500 Index (SP: .INX) by 23% and the Nasdaq Composite (NASDAQ: .IXIC) has tumbled a painful 32.5%.

The US indices are in a bear market, and ASX shares are not much better excluding the resources sector.

We have all heard ad nauseum from experts that market troughs are the best time to pick up the bargains.

But with interest rates still expected to rise further, even many professional investors are holding fire and waiting with cash in hand.

“I can definitely foresee a situation where markets have another leg lower and go for another 10%, 15% [down],” Medallion Financial managing director Michael Wayne told The Motley Fool last week.

So what do we do? How much lower can ASX shares go?

The answer is to buy now

Fidelity International investment director Tom Stevenson has an easy answer to this.

Don’t worry about it. Buy now.

This is because no one can intentionally time the market perfectly, and his opinion is that it’s better to buy early to be already invested when the trough comes.

“I’d say it’s far better to be early — even though human nature ensures that most of us have a tendency to come late to the party,” he wrote in the UK’s The Telegraph.

“The fear of losing money in the short term, which is the lot of the early investor, is a powerful disincentive to pre-empt the market.”

The idea is that if you wait for the trough to pass, you won’t know it has passed until you’ve seen much of the recovery. That is, the bottom of the market can only be defined in hindsight.

“Many investors just sit on the sidelines watching other people enjoy the recovery,” said Stevenson.

“If you had taken the pain of an initial loss, you would have been in at the bottom and sitting comfortably as the rally gathered pace.”

Why waiting is a mug’s game

Stevenson predicts that by the end of next year investors will look back on the previous 12 months as a period of rapid and significant returns.

Late buyers risk sacrificing much of those gains by sitting out. 

“If you think you are smart enough to time your re-entry back into the market, then by all means sit on your hands for a bit longer,” he said.

“But the early weeks of the pandemic showed how quickly markets can regain lost ground when they get a sniff of recovery and interest rates start to fall again.”

The point is that while a 5% difference in entry price might seem huge now, it will seem insignificant after the recovery rally when you’ve missed out on a 30% gain.

Stevenson took the S&P 500 as an example. It’s sitting around 3,695 points at the moment.

“You won’t care too much if you got in at 3,300 or 3,500 once the US benchmark is back above 4,000 again. You will care if you are still waiting in vain for a better entry point.”

So don’t become scared stiff like everyone else. This is the time to make hay.

“The time to get interested is when everyone else is focused on the grim economic and corporate outlook,” said Stevenson.

“Time to grit your teeth and start to prepare for the upturn. Even if it hurts in the short term.”

The post Yes, buy ASX shares now. Don’t wait like everyone else: expert 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

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• ‘Share market falls are normal’: Here’s how to make the most of them
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: 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/qgX4umI

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped deep into the red. The benchmark index fell 1% to 6,817.5 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in a subdued fashion after a volatile night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 20 points or 0.3% lower this morning. In late trade in the United States, the Dow Jones is down 0.5%, the S&P 500 has fallen 1%, and the Nasdaq has dropped 0.85% higher. US markets were up around 1.5% at one stage.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.2% to US$85.71 a barrel and the Brent crude oil price is up 0.2% to US$92.61 a barrel. News that China could ease COVID restrictions boosted prices.

TechnologyOne rated as a buy

The team at Bell Potter remains bullish on the TechnologyOne Ltd (ASX: TNE) share price. This morning the broker has reiterated its buy rating and $14.25 price target on the enterprise software provider. It is expecting a strong full year result next month to get its shares heading higher again.

Allkem quarterly update

The Allkem Ltd (ASX: AKE) share price will be one to watch today when the lithium miner releases its quarterly update. Investors will no doubt be keen to see if lithium prices are continuing to rise. The market may also be looking to see if cost inflation has impacted Allkem’s performance during the quarter.

Gold price edges lower

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a poor end to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.1% to US$1,632.70 an ounce. The precious metal dropped after US Treasury yields pushed higher.

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

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Why did ASX 200 gold shares have a meltdown today?
• ‘Share market falls are normal’: Here’s how to make the most of them
• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 TechnologyOne Limited. 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/tj7Aq0w

The S&P/ASX 200 Index (ASX: XJO) closed down 1% today, bringing its year-to-date losses to 11%.

“Successful investing can be really hard in times like the present,” writes Shane Oliver, AMP Capital’s head of investment strategy, on Livewire.

“Falls in share markets and other assets are stressful as no one likes to see their wealth decline, and the natural inclination is to retreat to safety.”

So, what can ASX shares investors do to make the most of times like this, without panicking?

Expert says ‘share market falls are normal’

Oliver’s no. 1 tip for investors today is to accept that ASX shares will fall now and then. He says the trick is “to make the most of the power of compound interest“.

…periodic share market falls are healthy and normal. Sometimes they are just 5% to 20% corrections, but every so often they can be deep bear markets with falls up to around 50% as in the GFC.

But while share market pullbacks can be painful, it’s the way the share market has always been, so they are nothing new. 

Bouts of volatility are the price we pay for the higher longer-term returns from shares compared to other assets like cash and bonds. 

Oliver’s top tips for ASX shares investors today

Here’s what Oliver recommends:

1. Selling shares or switching to a more conservative investment strategy whenever shares suffer a cyclical setback just turns a paper loss into a real loss with no hope of recovering
2. You may be thinking “but I will reinvest once uncertainty is removed”. But the risk is you don’t feel confident to get back in until long after the market has fully recovered, which may be well above the level you sold out at
3. When shares and all assets fall in price, they’re cheaper and offer higher long-term return prospects. The key is to look for opportunities pullbacks provide. It’s impossible to time the bottom, but one way to do it is to “average in” over time
4. At times like this, negative news reaches a fever pitch. It’s best to turn down the noise of all the negative news flow

The bottom line for ASX shares investors today: “The best way to guard against selling on the basis of emotion after weakness is to adopt a well thought out, long-term strategy and stick to it.”

The post ‘Share market falls are normal’: Here’s how to make the most of them appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Qantas shares: Buy, hold, or fold?

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/SJTYoG6

The S&P/ASX 200 Index (ASX: XJO) sank lower on Thursday, weighed down by tech shares. The index closed 1.02% lower at 6,730.7 points.

Its suffering followed a rough night’s trade on Wall Street amid surging US government bond yields. The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.3% overnight while the S&P 500 Index (SP: .INX) slipped 0.7% and the Nasdaq Composite Index (NASDAQ: .IXIC) slumped 0.9%.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) led the Aussie bourse’s downturn, falling 3.8%.

The S&P/ASX 200 Materials Index (ASX: XMJ) also struggled, plunging 2.4% alongside base metal prices.

All base metals except nickel and zinc slipped lower overnight, with lead’s 1.6% fall leading the pack. Gold futures also slumped 1.3% to US$1,634.20 an ounce while iron ore futures dumped 0.4% to US$94.86 a tonne.

The S&P/ASX 200 Energy Index (ASX: XEJ) was alone in the green today, gaining 3.1%.

It followed a good night for oil prices, with the Brent crude oil price lifting 2.6% to US$92.41 a barrel and the US Nymex crude oil price climbing 3.3% to US$85.55 a barrel.

So, with all that in mind, which share outperformed all others on Thursday? Keep reading to find out.

Top 10 ASX 200 shares countdown

The Novonix Ltd (ASX: NVX) share price topped the lot today after the company announced it has been awarded a US$150 million grant.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$2.28	7.04%
Adbri Ltd (ASX: ABC)	$1.50	6.76%
Woodside Energy Group Ltd (ASX: WDS)	$34.56	6.18%
Challenger Ltd (ASX: CGF)	$6.77	4.64%
Chalice Mining Ltd (ASX: CHN)	$4.34	4.08%
Suncorp Group Ltd (ASX: SUN)	$10.96	3.1%
Perseus Mining Limited (ASX: PRU)	$1.625	2.2%
Santos Ltd (ASX: STO)	$7.53	2.03%
Auckland International Airport Limited (ASX: AIA)	$6.63	2%
Beach Energy Ltd (ASX: BPT)	$1.555	1.97%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Qantas shares: Buy, hold, or fold?

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 recommended Challenger Limited. 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/C7R2fGV

The Magellan Financial Group Ltd (ASX: MFG) share price fell 4.81% to close at $10.30 on Thursday. The drop comes amid the company holding its annual general meeting (AGM) in Sydney today.

Today’s share price fall represents a compounding of yesterday’s losses when the stock fell 3.22%.

That’s a really tough couple of days for this once-lauded ASX financial sector darling.

Magellan CEO envisions $100 billion FUM within 5 years

In a presentation delivered to shareholders, CEO David George said Magellan could rise from the ashes.

Specifically, George said he believed the company could once again grow its funds under management (FUM) to above $100 billion within the next five years.

The significance of that particular benchmark is that Magellan was managing $116.4 million in FUM back in November 2021. Then it lost the St James’s Place mandate in December 2021. That represented 12% of Magellan’s annual revenue, so it punched a hole in the manager’s earnings right quick.

As we reported earlier this month, total FUM is now $50.9 billion. So, George is talking about a doubling.

George said:

Through growth of our existing strategies and new products, I believe we will be a fund manager of global scale once more with over A$100 billion of funds under management after five years.

This will not be growth for the sake of growth. It will be considered growth, driven by creating long-term shareholder value. We have a strong balance sheet and capacity to execute this, while continuing with the existing on-market buyback programme and pay dividends.

This growth will also be more diversified, as we expand our range of capabilities, we will be less dependent on our global equities business.

What are the priorities for Magellan in FY23?

George said Magellan would expand its distribution team, particularly in Europe and the United States, redirect efforts toward the core series of products, and launch an energy transition strategy.

He said Magellan would “focus on employees’ experience through revisiting our values and culture”.

George said:

We are a people business and I want a culture that drives high performance and career development.

To get this right, I will need to directly align employees with the outcomes of both clients and shareholders. This will include a long-term incentive plan that aligns them to the long-term strategic objectives of the business that I have outlined today.

I want teams that think long term and are committed to Magellan now and the Magellan in five years.

Fresh staff appointments

Magellan also announced another new staff appointment today — that of David Dixon.

Dixon has been appointed a non-executive director and deputy chair of the board of Magellan’s main operating subsidiary, Magellan Asset Management.

The company said it intends to give Dixon a seat on the Magellan Financial Group’s board in due course.

Dixon has more than 30 years of experience in leading and growing investment businesses. From 2013 to 2020, he was the chief investment officer of equities at First Sentier Investors.

As we reported yesterday, recent investment team changes at Magellan have concerned some ratings agencies. As a result, Zenith has put about 20 Magellan funds under review and Lonsec has placed four funds ‘on watch’.

Zenith explained the move in a recent note to clients, as reported by The Australian:

Zenith believes the executive and investment personnel changes are material, noting that Magellan’s entire product suite is affected by the changes.

As such, Zenith has placed the following products Under Review until we meet with the relevant personnel, following which we will provide an update.

Among the changes was expanding George’s own role, just three months after he joined Magellan. Not only is he the CEO and managing director, but he’s now also the chief investment officer (CIO).

Gerald Stack, previously the portfolio manager of the Magellan Infrastructure Fund, is now deputy CIO.

The post Magellan share price sinks again despite ‘$100 billion’ outlook 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

• 5 things to watch on the ASX 200 on Thursday
• Why did the Magellan share price get bashed around today?
• These are the 10 most shorted ASX shares
• 3 ASX 200 dividend shares with the highest yields in Q1
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. 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/3umeYdG