Stock Pick

  • September was a shocker for the ASX 200, but how did the Woolworths share price stack up?

    a woman ponders products on a supermarket shelf while holding a tin in one hand and holding her chin with the other.a woman ponders products on a supermarket shelf while holding a tin in one hand and holding her chin with the other.

    September lived up to its reputation as a terrible month for markets this year. The S&P/ASX 200 Index (ASX: XJO) dumped 7.3% over the course of last month. And it wasn’t much better for the Woolworths Group Ltd (ASX: WOW) share price.

    Stock in the supermarket operator fell 5.9% over the course of September, closing the month at $33.95.

    That was despite some particularly exciting news being released by the ASX 200 favourite over that time.

    Let’s take a look at what went wrong for the Woolworths share price in September.

    What weighed on the Woolworths share price last month?  

    The Woolworths share price struggled alongside the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) last month.

    The sector dumped 5.8% in September. Though, that saw it post one of the best performances of the ASX 200’s 11 sectors.

    It’s also worth noting that Woolworths’ closest peer, Coles Group Ltd (ASX: COL), saw its share price slip 6.4% over the course of last month.

    There was plenty of news from Woolies’ camp over the 30 days ended 30 September.

    Perhaps most exciting, was the finalisation of its acquisition of formerly-ASX-listed MyDeal.com.au.

    The supermarket giant proposed to snap up an 80% stake in the online marketplace – thereby taking it off the market – in May for an enterprise value of $242.6 million.

    MyDeal’s shareholders voted in favour of the plan early last month and it was implemented before September was out.

    Additionally, Woolworths announced several leadership changes last month.

    It revealed the appointment of Daniel Hake to the position of Big W managing director.

    It also announced Von Ingram had been appointed to the role of managing director of Woolworths’ non-food retail businesses, including Big W, MyDeal, HealthyLife, and PetCulture.

    Sadly, none of last month’s announcements proved enough to significantly boost the Woolworths share price.

    At the end of September, it was 11.75% lower than it started 2022. For comparison, the ASX 200 dumped 14.7% over the first nine months of the year.

    The post September was a shocker for the ASX 200, but how did the Woolworths share price stack up? 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 positions in and has recommended COLESGROUP DEF SET. 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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  • Whitehaven shares are being pulled in all directions today. Is this why?

    A kid pulls his friends on a wagon in the backyard.A kid pulls his friends on a wagon in the backyard.

    Whitehaven Coal Ltd (ASX: WHC) shares are having a roller coaster day today.

    The coal producer’s shares are rising 5.58% and are currently trading for $9.65. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 3.64% today.

    Let’s take a look at what is impacting Whitehaven shares today.

    Whitehaven shares fall, then surge

    Whitehaven shares were in the red in earlier trade, falling 0.55% on yesterday’s close to $9.09.

    Coal prices fell 8% overnight to US$399 per tonne after China pledged to raise coal production by 300 million tonnes.

    Following the early drop, Whitehaven shares picked up amid news that Australian thermal coal exports will rise in FY23.

    In an Industry Department quarterly resources and energy report, the Federal Government tipped that Australia’s total coal export value will hit $120 billion in the 2023 financial year.

    Thermal coal export values are forecast to rise nearly 35% from $46 billion in FY22 to $62 billion in FY23. Meanwhile, the metallurgical coal export value is tipped to fall 12% from $66 billion to $58 billion.

    The report predicted the metallurgical coal price would drop from US$404 per tonne in FY22 to US$283 per tonne in FY23.

    However, thermal coal is tipped to lift from US$245 a tonne in FY22 to US$309 a tonne in FY23.

    Whithaven share price snapshot

    The Whitehaven share price has exploded 270% year to date, while it has risen 186% in the past year.

    In contrast, the ASX 200 has shed 10% in the year to date and 8% in the past year.

    Whitehaven has a market capitalisation of about $9.2 billion based on the current share price.

    The post Whitehaven shares are being pulled in all directions today. Is this why? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Monica O’Shea 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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  • RBA shock fuels the ASX 200 stock market rally… plenty of bargains on offer for beleaguered yet emboldened investors

    a group of people in shadow profile leap and hold their arms high in wonder of a fireworks display that fills the sky with light and colour and spectacular shapes.a group of people in shadow profile leap and hold their arms high in wonder of a fireworks display that fills the sky with light and colour and spectacular shapes.

    Bad news for the US economy.

    A drop in the Institute for Supply Management’s gauge of factory activity suggested the US economy may be faltering.

    Good news for the stock market.

    A faltering economy means the US Federal Reserve may not be as aggressive with its interest rate hikes.

    Overnight on Wall Street, the S&P 500 index soared 2.6% higher, its best session since July. This came after a diabolical September on Wall Street, the worst in two decades.

    Was this a dead-cat bounce amidst an ongoing bear market?

    Place your bets, Foolish investors.

    In the green corner we have Matt Maley, chief market strategist at Miller Tabak + Co.

    “The market is oversold, and sentiment is extremely negative, so a bounce…even a sharp one…could happen at any time,” wrote Maley as reported on Bloomberg.

    And in the red corner, we also have Maley, quoted in the same Bloomberg report as saying…

    “However, we see lower-lows before the ultimate bottom is reached for this bear market… as the stock market has not fully priced-in a recession.”

    If there is to be a next leg down in the stock market, you feel like it could come sooner rather than later.

    Comments like these in the AFR from Federal Reserve Bank of New York president John Williams have previously sent the stock market into a spin…

    “My view is we still have a significant ways to go,” he said, pointing to projections showing Fed officials expected to raise their benchmark interest rate to 4.6% by the end of next year, from its current level just above 3%.

    Not today though. It’s a welcome relief for beleaguered stock market investors like you and me. 

    Like a compliant puppy dog, the ASX 200 is following Wall Street higher, soaring 236 points or 3.67% higher to 6693. This comes after a horror September where the benchmark index fell 7.3%.

    Mining stocks led the charge higher, with lithium explorer Sayona Mining (ASX: SYA) the best ASX 200 performer, gaining 14.22% to 25.7 cents on the back of a general market rebound and the announcement of a pre-feasibility study (PFS) to look at the potential production of lithium carbonate at the North American Lithium (NAL) operation. 

    Capitalised at over $2 billion, Sayona Mining generated $0 in mining revenue in FY22 as it works towards “becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector,” according to managing director Brett Lynch.

    Potential indeed.

    BREAKING

    In breaking news, the RBA has added fuel to today’s stock market rally by only raising the cash rate by 25 basis points to 2.6%. 

    The consensus amongst economists expected another 50 basis rise, reminding us once more of the old joke that economists have predicted six of the last two recessions. Or the change in central bank interest rates.

    The RBA did say it still expects to increase interest rates further in the period ahead. But the slowing of the rate gains is the best case scenario in the short term for the stock market and the economy, assuming inflation can ultimately be tamed.

    For the emboldened investor, the good news is that the year-long sell-off has left us with plenty of bargains to choose from, especially amongst the bombed-out small cap stocks. 

    The post RBA shock fuels the ASX 200 stock market rally… plenty of bargains on offer for beleaguered yet emboldened investors appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bruce Jackson 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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  • ASX 200 set for best day in more than 2 years on RBA interest rate decision

    A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

    A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

    The S&P/ASX 200 Index (ASX: XJO) is having its best day in years.

    The benchmark index was already up 2.4% at 2:30pm AEDT, following a strong run in US markets overnight.

    Then the Reserve Bank of Australia (RBA) announced its interest rate decision.

    The RBA opted to lift rates by a rather dovish 0.25% rather than the 0.50% increase markets had widely priced in. And the ASX 200 leapt 1.1% in the following minutes, to currently be up 3.6% for the day.

    With the latest increase, the sixth month of rate hikes in a row, Australia’s official cash rate now stands at 2.60%.

    The central bank first lifted rates from the all-time low of 0.10% on 4 May. At that point, ASX 200 investors had not experienced a rate rise since November 2010. Back then, the RBA raised the cash rate by 0.25% to 4.75%.

    Today, the RBA board also increased the interest rate on Exchange Settlement balances by 0.25% to 2.50%.

    What did the RBA report on its interest rate decision?

    The RBA board said it opted for the lower 0.25% rate hike as the cash rate has already “increased substantially in a short period of time”. The board said it is assessing the outlook for inflation and Australia’s economy following the prior months of tightening.

    The bank pointed to global factors as driving much of Australia’s inflation woes, adding, “But strong domestic demand relative to the ability of the economy to meet that demand is also playing a role.”

    ASX 200 investors hoping to hear inflation has been tamed will be disappointed. The RBA said it expects inflation to increase further over the months ahead.

    According to RBA governor Philip Lowe, “The bank’s central forecast is for CPI inflation to be around 7.75% over 2022, a little above 4% over 2023 and around 3% over 2024.”

    The board noted the Australian economy was still “growing solidly”. August’s unemployment rate of 3.5% is the lowest in half a century. And wages growth is continuing to pick up pace.

    What can ASX 200 investors expect next from the RBA?

    ASX 200 investors should take note that the RBA reconfirmed its commitment to bringing inflation back down into its 2% to 3% target range “over time”. The central bank added, “further increases are likely to be required over the period ahead”.

    According to the RBA release:

    It is closely monitoring the global economy, household spending and wage and price-setting behaviour. The size and timing of future interest rate increases will continue to be determined by the incoming data.

    The post ASX 200 set for best day in more than 2 years on RBA interest rate decision appeared first on The Motley Fool Australia.

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

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  • Telstra share price trails the ASX 200 as data hack hits headlines

    a young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguised.a young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguised.

    The Telstra Corporation Ltd (ASX: TLS) share price is underperforming the market on Tuesday. Its weaker performance comes amid news that hackers accessed the personal data of thousands of current and former Telstra employees.

    The historical hack has hit headlines little more than week after Optus revealed it was the centre of a cyber-attack that reportedly saw the data of nearly 10 million Australians briefly ransomed.

    Right now, the Telstra share price is trading 0.52% higher at $3.86.

    Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 3.41% and the S&P/ASX 200 Communication Index (ASX: XTJ) has lifted 1.89%.

    Telstra share price underperforms on Tuesday

    The Telstra share price is edging into the green on Tuesday. At the same time, the company is in the headlines as a previous data hack comes to light.

    Hackers who had previously accessed the names and email addresses of staff employed by the telco prior to 2017 have now revealed the information.

    It’s claimed they accessed the data through a third party previously responsible for Telstra’s staff rewards program.

    A Telstra spokesperson says no customer account information was caught up in the attack. They believe the data has been published now in an attempt to benefit from the Optus breach.

    Reporting across multiple news publications indicates 30,000 past and present employees have had their information published on the same forum as used in the Optus breach.

    Telstra has informed both authorities and employees of the breach. It is also working to notify former employees despite the data representing ‘minimal risk’ to them.

    Meanwhile, Optus has appointed Deloitte to lead a forensic review into its far larger cyberattack.

    Optus CEO Kelly Bayer Rosmarin commented:

    We’re deeply sorry that this has happened and we recognise the significant concern it has caused many people. While our overwhelming focus remains on protecting our customers and minimising the harm that might come from the theft of their information, we are determined to find out what went wrong.

    The telco also revealed that 2.1 million Australians have had an identity document number exposed in the hack. Of those, 900,000 identifying numbers had expired when exposed.

    The post Telstra share price trails the ASX 200 as data hack hits headlines 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 positions in and has recommended Telstra Corporation 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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  • 2 top Warren Buffett stocks to buy right now

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

    A head shot of legendary investor Warren Buffett speaking into a microphone at an event.

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

    Warren Buffett is well-known for his value-oriented approach to investing, but Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) also holds some intriguing growth stocks in its portfolio. With the growth-heavy Nasdaq Composite index now down roughly 31.6% across 2022’s trading, this could be the right time to heed one of Buffett’s most-quoted bits of investing wisdom: “Be greedy when others are fearful.” 

    Two growth stocks in the Berkshire portfolio that look like strong candidates to apply that strategy to now are Amazon (NASDAQ: AMZN) and Snowflake (NYSE: SNOW).

    1. Amazon

    Amazon has been one of the most innovative and influential companies of the last quarter century. It spearheaded the growth of the e-commerce market and used its strength in online retail as a springboard into the cloud infrastructure space. Today, the company maintains leadership positions in both e-commerce and cloud services, and both segments look poised to benefit further from secular growth trends.

    The online retail business is capital intensive, relatively low margin, and has been a drag on overall profitability lately, but the situation should improve over the long term as automation improves margins and the share of retail spending going to e-commerce continues to grow. While online retail accounts for the large majority of Amazon’s overall revenue, it’s actually the cloud business that is its crown jewel when it comes to profitability.

    Amazon Web Services (AWS) leads the cloud infrastructure market and provides technologies that are the backbone for much of the modern internet and application services ecosystem. New websites and apps are coming online every day, existing ones are expanding their operations, and these trends have Amazon in a position to facilitate and benefit from the growth of the overall cloud software market. Even better, AWS is posting operating income margins north of 30%, and its sales growth of 29% in the company’s last quarter shows that demand is strong.

    In addition to its core e-commerce and cloud services businesses, Amazon has also been making waves in digital advertising. It now trails only Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) in terms of market share in the US, and its leadership in e-commerce and cloud and data analysis resources could help it continue gaining share in the category. 

    With the stock price down nearly 33% year to date and 38.6% from its high, Amazon stock is a worthwhile buy for long-term investors.

    2. Snowflake

    By some metrics, Snowflake is the most growth-dependent stock in the Berkshire Hathaway portfolio. It trades at roughly 33 times this year’s expected sales and has a market capitalization of roughly $56 billion, though its stock has fallen by roughly 48% across 2022’s trading. With that kind of valuation, the stock could see outsized sell-offs if pessimism continues to shake the broader market. But though it’s a somewhat uncharacteristic pick for Berkshire Hathaway’s portfolio, there are good reasons why Buffett was comfortable with the risks associated with it.

    Snowflake has been posting impressive growth — revenue was up roughly 83.5% in the first half — and it appears to be building the foundations for a durable moat. Its Data Cloud platform allows businesses and organizations to combine and analyze data from Amazon, Microsoft (NASDAQ: MSFT), and Alphabet’s otherwise-siloed cloud infrastructure systems. This makes it possible to generate superior analytics insights and faster software responses, and this characteristic is helping Snowflake gain favor as a platform for developing and running cloud-native applications.

    Snowflake also uses a consumption-based billing model — customers pay for services as they use them. This helps it attract new clients, and it also helps the company generate more revenue from customers as their usage scales. Last quarter, existing customers increased their spending by 71% on average compared to the prior-year period, pushing overall revenue up 81% year over year. With Snowflake still adding new customers at an encouraging clip and the company’s platform gaining favor as a foundation for software development, there seems to be a strong growth engine here.

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

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Noonan 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 Alphabet (A shares), Alphabet (C shares), Amazon, Meta Platforms, Inc., Microsoft, and Snowflake Inc. The Motley Fool Australia’s parent company recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. 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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  • Why is the Woodside share price beating the ASX 200 today? 

    Oil worker drilling on the oil fieldOil worker drilling on the oil field

    The S&P/ASX 200 Index (ASX: XJO) is leaping 2.47% today, but the Woodside Energy Group Ltd (ASX: WDS) is outperforming the index.

    The Woodside share price is leaping 3.73% today and is currently trading at $33.245.

    Let’s take a look at why the Woodside share price is having such a good day.

    Oil prices rise

    Woodside is lifting today, but it is not the only oil producer having a good day. The Santos Ltd (ASX: STO) share price is rising 3.7%, while Beach Energy Ltd (ASX: BPT) shares are lifting 2.84%.

    Higher oil prices overnight and a promising outlook for the oil price appear to be helping major oil producers including Woodside today.

    The brent crude oil price lifted 4.4% to US$88.86 a barrel and WTI crude oil price rose 5.2% to US$83.63 a barrel in global markets overnight, Reuters reported.

    Oil prices jumped after news emerged the Organization of the Petroleum Exporting Countries and allied (OPEC+) may cut output by more than 1 million barrels per day. In comments cited by Reuters, Oanda market analyst Craig Erlam said:

    After a year of tolerating extremely high prices, missed targets and severely tight markets, the (OPEC+) alliance seemingly has no hesitation when it comes to acting rapidly to support prices amid a deterioration in the economic outlook.

    PVM Oil Associates senior analyst Stephen Brennock tipped oil prices to hit US$100 a barrel again, CNBC reported. He said:

    A further uptick in trading activity coupled with tightening near-term oil fundamentals could well push oil prices back to $100/bbl.

    The brent crude oil price is currently up 0.42% to US$89.23 a barrel, while WTI crude oil is up 0.18% to US$83.78 a barrel, Bloomberg data shows. Natural gas is also up 0.25% to US$6.49 per MMBtu.

    Woodside share price snapshot

    The Woodside share price has risen nearly 6% in the past year, while it has gained almost 5% in the year to date.

    For perspective, the ASX 200 has shed more than 10% in the past year.

    Woodside has a market capitalisation of more than $3.3 billion.

    The post Why is the Woodside share price beating the ASX 200 today?  appeared first on The Motley Fool Australia.

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    Motley Fool contributor Monica O’Shea 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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  • Amazon’s second prime day: Genius move or worrisome indicator?

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

    Woman on her laptop thinking to herself.

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

    It’s going to be Christmas in October for consumers after Amazon (NASDAQ: AMZN) announced it would be holding a second Prime Day event this year. Dubbed the Prime Early Access Sale, the e-commerce extravaganza will be held on Oct. 11 and Oct. 12.

    The event is ostensibly intended to fire up consumers who are reeling from inflation ahead of the holidays — and also blunt the impact of similar sales events being held by Target (NYSE: TGT) and Walmart (NYSE: WMT). However, there are reasons to be concerned that Amazon could dull the luster of its main summer sale by holding too many similar doorbuster sales. It could also mask the slowdown its e-commerce operations are experiencing.     

    Getting a jump on Christmas

    Amazon is extending early access to holiday savings to Prime program members in 15 countries (including, of course, new members signing up for 30-day free trials). 

    The move comes as Walmart prepared to kick off its own Christmas sales push on Oct. 1 by cutting prices in key categories, extending its returns window to Jan. 31 for products purchased now, and also making it easier to initiate returns by either using curbside pickup or return pickups from homes for Walmart+ members. 

    Target is similarly getting the season’s greetings going early with a Deal Days promotion that will run from Oct. 6 through Oct. 8, discounting thousands of items. The retailer has also said it intends to hire 100,000 seasonal workers to handle the expected holiday sales surge. 

    “Holiday creep” has been a problem for years, though. Because the Christmas season now can account for as much as 20% to 30% of a retailer’s annual revenue, chains have steadily pushed the start dates for their holiday-focused promotions earlier and earlier. This year’s moves just continue the trend.

    Consumers are cutting back on shopping

    Retailers’ desires to get a jump on their most important sales period may also reflect their concerns about slowing revenue growth. Amazon’s net sales growth slowed in the second quarter to just 7.2% year over year, bringing it to $121 billion. That was a slight deceleration from the 7.3% gain in the first quarter and also the slowest growth rate Amazon has recorded in more than two decades, even though the period included the summer Prime Day sale.

    While we won’t see Amazon’s third-quarter results for a few weeks yet, it’s clear that the new Prime Early Access event is intended to juice the company’s fourth-quarter numbers. The competition is making similar efforts for similar reasons. 

    Target suffered a 90% year-over-year decline in profits in the second quarter as it slashed prices on inventory that wasn’t moving, while Walmart warned this summer that its full-year profits would plunge by 11% to 13% due to consumers cutting back on discretionary purchases. The retailer had previously expected a 1% profit decline.

    The risk for Amazon, however, is it will dilute the effectiveness of Prime Day by having yet another sales festival. When consumers believe they won’t have to wait long for another major sale, it reduces their sense of urgency about buying. Adding this October sales event may also undermine the significance of Cyber Monday/Cyber Week, another important sales period for online retailers.

    A blue Christmas

    Some may see adding a second Prime Day-themed sales event to the calendar as a genius move on Amazon’s part, as it allows the e-tailer to remain competitive and appeal to consumers who are spending more cautiously due to inflation. But it’s also a worrisome trend as it hides from investors the actual sales slowdown underway.

    Bain & Co. forecasts that holiday spending will grow by 7.5% from last year, but when adjusted for inflation, the increase will really only be 1% to 3%. Pulling some sales forward into October won’t really achieve anything for the retailer other than preventing later-acting rivals from stealing those sales away from it. While that could make it worthwhile, it could just end up being a wash because so many other chains are doing the same thing.

    Amazon is still the place most consumers turn to first when shopping for goods online, but there might not be as much cheer this holiday season, no matter how early its Christmas sales begin. 

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

    The post Amazon’s second prime day: Genius move or worrisome indicator? appeared first on The Motley Fool Australia.

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    Rich Duprey has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Target, and Walmart Inc. The Motley Fool Australia has recommended Amazon. 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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  • Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in

    A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other handA coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

    The value of Australia’s combined coal exports is tipped to surge to $120 billion in financial year 2023, driving the nation’s resource and energy exports to a record $450 billion — and plenty of S&P/ASX 200 Index (ASX: XJO) shares could cash in.

    The findings were published in the Australian government’s latest Resources and Energy Quarterly report.

    It tips the value of the nation’s thermal coal exports to surpass those of metallurgical coal during this fiscal year – reaching $62 billion and $58 billion respectively. That’s up from $46 billion and $66 billion respectively in financial year 2022.

    Perhaps unsurprisingly, the S&P/ASX 200 Energy Index (ASX: XEJ) – hosting the market’s largest coal shares – is among the market’s best-performing sectors right now. It’s gaining 3.2% compared to the benchmark index’s 2.39% lift.

    Aussie coal exports tipped to reach all-time high in FY23

    Surging commodity prices will likely drive Aussie exports to a new record, according a report from the Department of Industry, Science, and Resources. And coal will be one of the major contributors.

    Record thermal coal prices are expected to see $62 billion worth of the electricity-generating commodity exported in financial year 2023 – up from $46 billion in the previous year.

    After averaging at US$333 a tonne in 2022, the thermal coal price is tipped to fall to US$125 a tonne in 2024. Though, that’s still well above historical averages.

    It also faces potential boosts from the European energy crisis and possible La Niña-driven flooding in eastern Australia

    An increase in thermal coal exports will likely offset the falling value of Australian metallurgical coal, otherwise known as coking coal.

    The price of coking coal – mainly used to make steel – is forecast to average at nearly US$400 a tonne in 2022. After that, it’s tipped to fall amid normalising supply chains, reaching US$220 a tonne by 2024.

    That means Aussie exports of the commodity are expected to fall from $66 billion in financial year 2022 to $58 billion in financial year 2023.

    ASX 200 coal shares cashing in

    Of course, what’s good news for coal is generally good news for ASX 200 coal shares. They’re all trading higher following the report’s release.

    Shares in coal producer New Hope Corporation Ltd (ASX: NHC) are surging 5.16% right now.

    Most of New Hope’s earnings come from thermal coal. Though, it’s got its eye out for opportunities in coking coal.

    Meanwhile, the Whitehaven Coal Ltd (ASX: WHC) share price is up 3.61% at the time of writing. The company produces both thermal and metallurgical coal.

    Finally, the share price of coal producer Coronado Global Resources Inc (ASX: CRN) is up 3.28%.

    Most of the company’s business is in coking coal. The commodity represented 96% of the company’s coal revenues in the first half of 2022.

    The post Government says Aussie coal exports will hit record levels. Here’s which ASX 200 shares are cashing in 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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  • Why did the Lake Resources share price get smashed in September?

    A businessman smashes his laptop with a hammer because it is on fire.

    A businessman smashes his laptop with a hammer because it is on fire.The Lake Resources N.L. (ASX: LKE) share price may be back on form on Tuesday, but it was a very different story in September.

    During the month, the lithium developer’s shares crashed a disappointing 23% lower.

    What happened to the Lake Resources share price last month?

    Investors were selling down the Lake Resources share price last month for a couple of reasons.

    The first was the significant market volatility that occurred amid concerns that a global recession is coming.

    Higher risk investments, such as lithium shares, were hit hardest. This led to many lithium shares recording particularly large declines during the month.

    What else?

    Also putting pressure on the Lake Resources share price was news that the company is facing an ownership dispute with its partner Lilac Solutions.

    Lilac Solutions is the company providing the DLE technology that will be integral to Lake Resources’ Kachi operation.

    According to the release, Lilac Solutions believes it has until the end of November to achieve certain milestones that will grant it a 25% ownership in the Kachi project.

    However, Lake Resources doesn’t agree and says that these milestones needed to be delivered by the end of September to achieve an interest in the project. To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement of both Lake and Lilac or by arbitration.

    This is a bit of a concern for investors as Lilac Solutions’ unproven technology has been talked up by management as being the key to making the project a success. Management previously commented on Lilac’s technology. It said:

    Lake believes DLE will become the primary method of lithium extraction because it is the only practical way to ramp up lithium supply sustainably and in a way that conforms to increasing ESG scrutiny on lithium projects. However, in the lithium industry not all DLE processes are the same. This is why Lake has taken the time to identify the process that is not only most efficient but also delivers a product that represents the most socially and environmentally sustainable approach to lithium extraction through ion exchange DLE and brine managed reinjection.

    The phrase: ‘don’t bite the hand that feeds you’, springs to mind here.

    The post Why did the Lake Resources share price get smashed in September? 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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