The Flight Centre Travel Group Ltd (ASX: FLT) share price underperformed the S&P/ASX 200 Index (ASX: XJO) by around 10% over the course of November.

After closing October at $16.65, stock in the travel agent crumbled to finish November trading for $16.06. That leaves the Flight Centre share price having fallen 3.54% over the 30-day window.

For comparison, the ASX 200 rose 6.13% to end November at a then-six-month high of 7,284.2 points. Meanwhile, the company’s home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ), gained 1.33% last month.

So, what went wrong for the Flight Centre share price in November? Let’s take a look.

What weighed on the Flight Centre share price last month?

There was only one day of price-sensitive news weighing on the ASX travel share last month.

That came on the back of the company’s annual general meeting (AGM), where management provided a trading update for the first four months of financial year 2023.

Its total transaction value lifted 246% on that of the corresponding period to $6.8 billion, while its revenue rose 248% to $667 million. Its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) also increased to $61 million, while its underlying pre-tax profit was in the green.

However, the company’s revenue margin remained at 9.8% amid reduced front-end commission payments from certain airlines, my Fool colleague James reports.

The travel agent expects its first-half underlying EBITDA to come in at $70 million to $90 million.

Sadly, the market bid the Flight Centre share price 3.76% lower on the back of its AGM and trading update.

Following the release, Goldman Sachs tipped the company’s profits to recovery strongly later this financial year and next. The broker said Flight Centre’s revenue margin “remains a key concern”.

Right now, the stock is 14% lower than it was at the start of 2022. It has also fallen 8% since this time last year.

For comparison, the ASX 200 has fallen 4% this year and has gained 1% since this time last year.

The post Why did the Flight Centre share price take a flogging in November? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• The Flight Centre share price has collapsed 20% in the last 6 months, but have the fundamentals improved?
• 5 ASX 200 shares with founders steering the ship
• Macquarie is cooling off on its outlook for BHP shares. Should you?
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

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 Flight Centre Travel 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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Wesfarmers Ltd (ASX: WES) shares are down 0.2% during the lunch hour, currently swapping hands for $48.89 apiece.

This comes amid some wider selling action following a weak lead in US markets. At the time of writing the S&P/ASX 200 Index (ASX: XJO) is down 0.7%.

That’s today’s price action for you.

Now what’s all this about a potential red flag for Wesfarmers shares?

Is this a red flag for Wesfarmers shares?

Wesfarmers, if you’re not familiar, is a diversified company with broad retail operations. Its subsidiaries include top names like Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, along with industrial businesses Coregas and Covalent Lithium.

The red flag in question was raised by UBS and relates to Wesfarmers’ Bunnings operations, the company’s largest division.

UBS analyst Shaun Cousins said Wesfarmers shares could face some headwinds with sales of outdoor furniture and gardening goods at Bunnings impacted by wet weather.

According to Cousins (courtesy of The Australian):

Reduced Bunnings sales and earnings before tax due to lower revenue per Bunnings store … due to lower DIY revenue – wet weather delaying, and overall reducing, spring sales, plus a more conservative outlook – albeit still above pre COVID due to a better network.

Atop the inclement weather, Wesfarmers shares could be impacted by the impacts of inflation and rising interest rates, much of which are yet to be felt.

“Looking forward, the Australian consumer is facing significant headwinds from the rising cost of living across energy, food, fuel and housing costs, with house prices falling,” Cousins said.

However, he added that the company’s business setup puts it in a strong position to compete in this environment:

For Wesfarmers, the company is comparatively well positioned for a slower consumer environment, especially in its larger retail businesses Bunnings and Kmart. Each holds a strong value proposition for consumers with a track record of lowering prices / holding back prices in the face of cost inflation.

UBS revised its earnings per share (EPS) guidance for Wesfarmers by 0.8% in 2023 and up 2.8% in 2024.

Don’t forget the dividends

Taking a positive view on Wesfarmers shares, in part because of the company’s lengthy track record as a reliable dividend payer, is Morgans.

The broker forecasts that Wesfarmers will continue to offer investors reliable, fully franked dividend payouts over the next two years.

Morgans expects Wesfarmers to payout dividends of $1.82 per share in FY23 and $1.89 per share in FY24. At the current share price of $48.89 that equates to a yield of 3.7% in FY23 and 3.9% for FY24.

Morgans has an add rating on Wesfarmers shares with a $55.60 price target, 14% above the current price.

The post Is this a red flag for Wesfarmers shares? appeared first on The Motley Fool Australia.

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• The Wesfarmers share price had a strong run in November
• Top brokers name 3 ASX shares to buy today
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Broker says these top ASX 200 dividend shares are buys

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 positions in and has recommended Wesfarmers. 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 dividend shares with yields over 10%? What could be better?

An ASX dividend share offering a 10% or greater yield on one’s cash is a compelling proposition. We only found out this week that Australia’s annual inflation rate is running at 6.9%. This technically means that if a dividend yield is under that threshold, the payments alone are not keeping your returns above breakeven.

So a 10% yielder is looking pretty good on that basis.

But finding high-yield ASX dividend shares is a bit of a risky business. There are plenty out there, to be sure. But if an ASX dividend share is offering a trailing yield above 10%, it’s a sign that an investor might have to be wary. A company’s trailing dividend yield reflects the past, not the future.

And if the share market lets a share trade with a trailing yield of more than 10%, it can often mean that many investors aren’t expecting the dividends to continue at that level.

Otherwise, there would be more buyers, pushing the yield lower. So, always take a high dividend yield with a grain of salt.

But we digress. Here are 10 ASX dividend shares offering a dividend yield above 10% right now. The data comes from S&P Global Market Intelligence.

10 ASX shares with dividend yields over 10% today

Smartgroup Corporation Ltd (ASX: SIQ)

Smartgroup has paid out 66 cents per share in dividends over the past 12 months. That includes the March special dividend of 30 cents per share. This gives Smartgroup a trailing dividend yield of 12.6% right now.

Tabcorp Holdings Limited (ASX: TAH)

Gaming services provider Tabcorp has doled out payments worth a collective 13 cents per share this year. That gives Tabcorp a trailing yield of 12.42% at current pricing. But keep in mind that Tabcorp spun out Lottery Corporation Ltd (ASX: TLC) earlier this year, so this could affect Tabcorp’s future dividend levels.

Yancoal Australia Ltd (ASX: YAL)

ASX coal share Yancoal is next up. This coal company has rained cash on its shareholders this year. It has doled out $1.03 in ordinary dividends per share, as well as a special dividend of 20.4 cents, for a total of $1.23 in dividends per share for 2022. That translates to a trailing dividend yield of 17.56% for just the ordinary dividends, and a whopping 21%, including the special dividend.

Magellan Financial Group Ltd (ASX: MFG)

ASX fund manager Magellan is another high-yielding share right now. This company has rolled out a total of $1.79 in dividends per share this year. At Magellan’s current share price, that is worth a trailing yield of 18.34%

Latitude Group Holdings Ltd (ASX: LFS)

Financial services company Latitude is another relative newcomer to the ASX, having only listed in April last year. But it has certainly hit the ground running when it comes to dividend payments. Latitude has funded a total of 15.7 cents per share in dividends in 29022. That gives the ASX financial share a trailing yield of 11.89% right now.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the ASX’s more well-known dividend payers these days. And over 2022, Fortescue did not disappoint in this regard. Investors have enjoyed a total of $2.07 in dividend payments per share this year. That gives Fortescue a trailing yield of 10.51% today.

Base Resources Ltd (ASX: BSE)

Mineral sands producer Base Resources is next. This company has given investors two dividends worth 3 cents per share each over 2022. On today’s share price of 21 cents, that equates to a trailing yield of a whopping 28.57%

SPDR S&P/ASX 200 Resources ETF (ASX: OZR)

This exchange-traded fund (ETF) has had a top year when it comes to distribution payouts. This fund, as its name implies, holds a basket of ASX resources shares. So you can understand why it has been able to make its investors very happy in this regard. Investors have enjoyed payments worth a total of $2.08 per unit this year. That gives this ETF a trailing yield of 14.54% on today’s pricing

Regal Investment Fund (ASX: RF1)

Listed investment trust Regal is another dividend share with an enviable yield. Investors have enjoyed distributions worth 39.56 cents per unit over the past 12 months. That gives the Regal Investment Fund a trailing distribution yield of 12.21%.

SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI)

Our final share to check out today is another ETF. As its name implies, this fund from SPDR focuses on holding a basket of high-yield dividend shares. It pays distributions quarterly, which, over the past 12 months, totals $4.29 per unit. On the current unit price of $27.95, that gives this ETF a trailing yield of 15.35%.

The post 10 ASX dividend shares paying more than 10% yield right now appeared first on The Motley Fool Australia.

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More reading

• Fortescue’s green hydrogen ambitions: Prosperous or preposterous?
• How the Fortescue share price defied the bears and jumped 32% in November
• What’s boosting the Fortescue share price on Wednesday?
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Here’s what’s boosting these ASX 200 mining giants today

Motley Fool contributor Sebastian Bowen 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 Smartgroup. 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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With apologies to Paul McDermott… Its been a good news week!

Some of the best news in ages

2022 has been a doozy. And it’s not over yet.

But this week has been a good one.

First, inflation came in lower than expected. Now, if you’d told me 12 months ago that we’d be celebrating an inflation rate of 6.9%, I’d have told you there was a better chance of the Socceroos making it to the Round of 16 at the World Cup and…

Oh.

Well, anyway, an unexpected drop in the inflation rate is good for everyone (except those who were seriously indebted and hoping rising prices would do most of the heavy lifting!).

It hopefully means things will be cheaper, in future, than they otherwise might have been.

It hopefully means interest rates won’t have to go up as far, or for as long.

And it means fewer Australians will do it tough than otherwise could have been the case.

There’s a long way to go.

This could be a false dawn.

But… it’s something!

Speaking of good news, though, the ASX was up 6.1% in November.

Remember those people who said, a month ago, that it was all doom and gloom?

Yeah.

Not so much.

Of course, share prices could fall again. And maybe further than they’ve risen, at least in the short term.

But it’s yet another reminder not to listen to the permanently-morose brigade.

And over the long term? My money is – literally – on the fact that I think the ASX will continue to generate serious long term value.

Capping Gas? It’s a tough one.

The news this week, that the Federal Government is planning to cap the price of natural gas, is a big deal.

First, it’s great news for Australians already doing it tough financially. Remember, the Federal Budget predicted gas prices would go up another 50% in 2023. Many people just couldn’t have afforded that, on top of other rising prices and rising rates.

Second, speaking of rising prices, a cap on gas will help alleviate the pressure on other prices right across the economy, taking (a little) heat out of inflation. That’s good too.

But third, this is pretty challenging ideological territory. Does a country that embraces our system of democratic capitalism really want to start whacking price caps on things? And after the fact? We have ways to get our share of profits – tax being the biggest one – and shouldn’t that be enough, as prices rise? (I’m on record saying resource rents should be higher, but this is different altogether.)

Gotta say, I’m torn. On balance, I think the good that a price cap will do, more than offsets the clear and unwelcome downsides. But I’d hate to think this sort of thing becomes a regular or permanent feature of government policy.

How about some planning, huh guys?

And how did we get into this mess? Well, in part because of an unforeseen war in Europe. That’s one of those things you can’t really predict.

But that’s not the only cause. And you can plan for these sorts of unexpected surprises.

It’s easy, in hindsight – just as with COVID – but we can at least learn some lessons and plan for the next unexpected issue.

Me?

I’d implement a national strategic reserve for fuels, including oil and gas. It’s a no-brainer.

And the mad scramble on energy prices and security is a direct consequence of policy paralysis in Canberra. Investors aren’t going to fund coal projects that will be socially and environmentally unviable in a few short years. But renewable energy investments weren’t going to be made unless and until the backers of these potential projects had sufficient certainty.

And so here we are. It truly was a failure of national policy, and we’re now – literally – paying the price.

But it’s not just supply policy. It’s demand policy, too. Building standards, efficiency measures and other things – which would reduce demand, and hence prices – are no-brainers.

Investors know about putting a little money down, now, for a bigger return later. Maybe the pollies missed the memo?

… and a bouquet

I’m probably biased. No, not politically. But I was a big fan of David Pocock on the rugby field, so I’m probably inclined to be positive about his time as a Senator.

But his work on the workplace policy that has just been passed by both houses of Parliament was exemplary. Not because of his final decision, per se – you can draw your own conclusions on what you think of it – but because of the way he went about learning as much as he could, then speaking to as many people as possible, trying to weigh up the pros and cons, then negotiating in good faith with the government.

The result? He voted on the policy. Not the politics. And did his best to improve the bill.

Well done, Senator.

Quick takes

Overblown: The FTX thing. I mean, it’s a big deal. Lots of money has been blown up. But I mean the soap opera bit. Getting sucked into the soap opera of the whole thing is bad for your wealth. As reality TV goes, I guess it’s tantalising and exciting and, well, car-crash TV. But, it’s still reality TV. There are lessons to be learned, for sure. But it’s not a ‘business’ story anymore – it’s just theatre. Don’t get distracted.

Underappreciated: We spend a lot of time talking about people who might have got themselves in over their heads because of what Phil Lowe did or didn’t say. But – and stay with me here – he didn’t say ‘never’, he said ‘2024’. Those borrowers were going to have to pay the piper at some point. Which is not to say I don’t care – I do – but it’s a reminder that the difference is probably 15 months. 18 tops. But the other lesson? It’s yet another example of people assuming their current circumstances will continue forever, when we all know that’s not the case. The same is probably true of share prices…

Fascinating: Maybe it’s just me. Or the people I hang around with. Or random chance. But it feels like a change is in the air. Increasingly, I’m seeing people pay up for quality, on the basis that paying more, now, for something that’s going to last longer, is a better bet. It’s something I’ve been increasingly doing, something I chatted about with my podcast co-host Andrew Page, in an upcoming episode, and something I’m seeing with friends and on social media. Maybe it’s just a coincidence. Or a flash in the pan. But I’m not so sure. I’m keeping an eye on it.

Quote: “The risk of paying too high a price for good-quality stocks – while a real one – is not the chief hazard confronting the average buyer of securities. Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions.” – Benjamin Graham

Fool on!

The post The pessimists were wrong. Again. appeared first on The Motley Fool Australia.

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• Should you buy yourself Webjet shares for Christmas?
• Why is the Woodside share price on the slide today?
• Why did the Origin share price rocket 41% in November?
• Buy this cheap ASX 200 share with ‘the best property balance sheet on the market’: fundie
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!

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

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The Webjet Limited (ASX: WEB) share price has outperformed over the last few months — could the travel stock still have more room to fly?

The S&P/ASX 200 Index (ASX: XJO) travel giant posted a return to profit in November following its dire earnings tumble amid the COVID-19 pandemic.

However, the Webjet share price is still more than 35% lower than it was in February 2020. Right now, the stock is swapping hands for $6.29 apiece.

Could it keep covering ground towards its pre-pandemic highs in the new year and beyond? Here’s what experts think about buying the travel stock this holiday season.

Are Webjet shares a buy this holiday season?

Could Webjet shares be a buy this Christmas? Blackmore Capital chief investment officer Marcus Bogdan believes so.

The expert likes the company’s recently revealed revenue and earnings, as well as its balance sheet and potential to capitalise on the travel sector’s recovery, as per Livewire. Bogdan continued:

I think that recovery will persist for the foreseeable future.

The online travel agent posted $175.7 million of revenue for the first half of financial year 2023 – a whopping 217% year-on-year improvement. It was an even better turn-around for its underlying earnings before interest, tax, depreciation, and amortisation (EBTIDA), which grew 557% to reach $72.5 million.

Bogdan is far from alone in his bullish view on the Webjet share price.

Morgans senior analyst Belinda Moore recently hailed Webjet as “a stronger business coming out of COVID”, noting its “management hasn’t wasted a crisis”. The broker tips the stock to post $120 million of full-year EBITDA.

Goldman Sachs is also hopeful, tipping Webjet shares as a conviction buy and slapping them with a $6.90 price target.

However, not all experts are so hopeful. Firetrail Investments deputy managing director and portfolio manager Blake Henricks believes the stock is a hold, saying, courtesy of Livewire:

The thing I like about Webjet is that it has pivoted more to that [business-to-business] side and so those earnings are going to be more robust with higher margins. We look out a couple of years and we say it’s probably on a low 20s [price-to-earnings].

I think that’s okay, but it’s had a very good run. What we’ve seen in many categories is, as they rise, they tend to then moderate.

Right now, the Webjet share price is 16% higher than it was at the start of 2022. It’s also 18% higher than it was this time last year.

The post Should you buy yourself Webjet shares for Christmas? appeared first on The Motley Fool Australia.

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• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
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• 3 ASX 200 shares on the coveted Goldman Sachs conviction list
• These ASX 200 growth shares are conviction buys: Goldman Sachs
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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 recommended Webjet. 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 Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.

Woodside shares are down 2% and currently fetching $35.91 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.56% today.

Let’s take a look at what is happening with the Woodside share price.

What’s going on?

Woodside is not the only ASX energy share falling today. Santos Ltd (ASX: STO) shares are down 1.41%, while Beach Energy Ltd (ASX: BPT) shares are sliding 0.27%.

The Brent Crude oil price is currently down 0.1% to US$86.88 a barrel, while WTI Crude Oil is falling 0.04% to US$81.19 a barrel at last look.

The natural gas price is up 0.82% to US $6.79 per MMBtu.

Analysts at Morgans have retained a “hold” rating on the Woodside share price, as my Foolish colleague James reported this morning. Morgans cut the price target on the Woodside share price to $34.50. Analysts said:

One thing is for sure, WDS expects less production in 2023 than it or the market had anticipated.

Woodside held an investor briefing on Thursday.

Speaking at the investor briefing day, Woodside chief executive Meg O’Neill raised concerns about potential gas price caps. She said:

One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark.

The company revealed it expects to deliver a compound annual growth rate (CAGR) of 4% between 2023 and 2027.

Woodside said the “key catalysts” for production growth are the Sangomar oil development, located off Senegal, and Scarborough start-up in Western Australia.

However, in quotes cited by The Australian, O’Neill raised concerns about uncertainty arising from Santos’ court appeal over the Barossa gas project.

Commenting on the potential implications of this case for Woodside’s Scarborough project, O’Neill said:

It is worrying. We are concerned about the uncertainty that the court case has created. That said, we are working very closely with the regulator, and the government to understand what exactly do we need to do to meet their expectations.

On Tuesday, Woodside released an FY 2023 guidance. The company is forecasting it will produce 180 million – 190 million barrels of oil equivalent (MMboe) in FY 2023.

Woodside share price snapshot

The Woodside share price has soared 70% in the last year, while it has gained nearly 64% year to date.

For perspective, the ASX 200 has returned 1.2% in the last year.

Woodside has a market capitalisation of more than $68 billion based on the current share price.

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

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• 5 things to watch on the ASX 200 on Friday
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• Is OPEC about to give ASX 200 energy shares a boost?

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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The Origin Energy Ltd (ASX: ORG) share price was among the best performers on the Australian share market in November.

Over the period, the energy company’s shares rose an impressive 41.1%.

This compares favourably to the ASX 200 index, which rose 6.1% over the period.

Why did the Origin share price smash the market?

Investors were buying Origin’s shares last month after the company received a takeover approach.

Origin received an indicative, conditional, and non-binding proposal from Brookfield Asset Management and MidOcean Energy to acquire the company for $9.00 cash per share. This valued the company at $18.4 billion on an enterprise value basis.

Based on the Origin share price at the time, this represented a sizeable 54.9% premium for investors.

Origin revealed that this was the third bid the company had received from Brookfield Asset Management and MidOcean Energy. It had been in talks since August and had rejected previous offers of $7.95 cash per share in August and $8.70 to $8.90 per share in September.

It seems that $9.00 per share was on the money, with the Origin board revealing that it would be prepared to accept the offer and recommend it to shareholders if it becomes binding.

As a result, the company granted Brookfield Asset Management and MidOcean Energy due diligence access.

What’s next?

With the Origin share price trading at $7.95, this represents an 11.7% discount to the offer price.

This appears to indicate that the market is somewhat sceptical that the deal will complete.

This may be due to the various hurdles the deal will have to overcome for completion. These include regulatory approvals such as Foreign Investment Board Review (FIRB) approval.

Credit Suisse commented on this, saying:

Foreign Investment Review Board hurdles loom large for proposed acquisitions of this nature, and the Government could use its approvals leverage to extract concessions on domestic gas prices.

The post Why did the Origin share price rocket 41% in November? 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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Looking for a cheap S&P/ASX 200 Index (ASX: XJO) share with a strong balance sheet?

Then you may wish to have a look at Goodman Group (ASX: GMG), the largest real estate investment trust (REIT) in Australia.

That’s according to Marcus Bogdan, chief investment officer at Blackmore Capital.

An ASX 200 share with 11% earnings per share growth

Speaking to Livewire, Bogdan singled out Goodman as a stock he’d like in his Christmas stocking this year.

Goodman, like most REITs, has faced some stiff headwinds from fast rising interest rates. That’s seen the ASX 200 share sink 30% in 2022. And that could make it a holiday bargain.

“The stock has derated quite significantly as interest rates have risen,” Bogdan said. “It’s gone from a price-to-earnings multiple of around 30 times to around 19 times today.”

Goodman’s position as a global leader in logistics warehousing makes it “a longer-term play, particularly the higher quality ones” he said.

Bogdan added:

Very strong balance sheet, it’s the best property balance sheet on the market and it’s meeting guidance. With earnings per share growth of 11% and a PE of 19 times, it’s a buy.

At the current price, the ASX 200 share pays a 1.6% trailing dividend yield, unfranked.

How has Goodman been tracking?

In its first quarter update, released on 2 November, Goodman reaffirmed its guidance for FY 2023, despite difficult market conditions.

For the three months ending 30 September, the ASX 200 share reported a 4% increase in like-for-like net property income (NPI) growth. The 11% earnings per share guidance growth Bogdan refers to would bring EPS to 90.3 cents.

Goodman’s CEO, Greg Goodman noted:

We are in a strong position to withstand and respond to the impacts of a slowing economy in different parts of the world. This is due to the demand for our strategic locations, quality of our assets, strength of our development book, growth in cash flows, and our low leverage and strong capital position.

The ASX 200 share is down 2.5% in intraday trade today

The post Buy this cheap ASX 200 share with ‘the best property balance sheet on the market’: fundie 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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After a terrible first half of 2022, the S&P/ASX 200 Index (ASX: XJO) has rebounded strongly and climbed an impressive 14.7% from its lowest point in June.

Key drivers of this rebound have been the banking and resources sectors, with BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) leading the charge.

The good news for investors is that outside these sectors, there are still plenty of ASX shares that could be considered cheap.

But they aren’t likely to stay cheap for long if inflation continues to soften and investor sentiment improves.

In light of this, I would suggest that investors look to take advantage of 2022’s weakness by making investments in high-quality shares that are trading at cheap prices.

But which ASX shares are cheap?

Firstly, it is worth remembering that cheap shares are often cheap for a reason. So, I wouldn’t go rushing in and buying everything trading at a discount. Instead, I would look for companies with strong business models, positive long-term growth potential, and attractive valuations.

If not, you could potentially fall into a value trap.

Two potentially cheap ASX shares that immediately spring to my mind are from the quick service restaurant industry — Collins Foods Ltd (ASX: CKF) and Domino’s Pizza Enterprises Ltd (ASX: DMP). Collins Foods is a major operator of KFC restaurants in Australia and Europe, whereas Domino’s, of course, is a pizza chain operator with restaurants across Australia and New Zealand, and the Asian and European markets.

Both are trading sharply lower this year because inflationary pressures are weighing on their margins. However, this headwind should be transitory and we are already seeing signs that rising rates are having a positive impact on inflation.

Once inflation is under control and margins recover, I expect the good times to return and their global expansion to underpin strong long-term sales and earnings growth.

It is for this reason that I recently bought Domino’s shares.

More options

Another side of the market that has been hammered this year is the retail sector. This has been driven by concerns that retail spending could be negatively impacted by the cost of living crisis.

And while I agree that these are tough times for discretionary retailers, I think some will fare better than others. Particularly those with exposure to younger consumers that aren’t being impacted by higher mortgage payments but are benefiting from an increase in the minimum wage.

Goldman Sachs recently commented on this group of consumers, saying:

We believe the young Australian consumer, aged ~15-24 is uniquely well positioned. […] We estimate that the combined impact of a minimum wage uplift and limited inflationary/housing cost pressures has resulted in an additional ~A$570 to A$935 per person annual disposable income for those that work and live at home; at the midpoint this is an aggregated ~A$1bn in incremental spending power.

In light of this, I think youth-orientated retailers Accent Group Ltd (ASX: AX1) and Universal Store Holdings Ltd (ASX: UNI) would be great options for investors. Especially with their shares down 29% and 22%, respectively, this year.

This leaves them trading at a very reasonable 12.6x and 14x FY 2023 earnings based on Goldman’s estimates.

There’s a world of opportunity out there for investors, you just need to do a bit of digging.

The post Rebound: I’m finding cheap ASX shares to buy before it’s too late! appeared first on The Motley Fool Australia.

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• Here are 3 ASX 200 shares going ex-dividend next week
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• These were the worst performing ASX 200 shares in November
• Domino’s share price halted amid $165 million cap raise

Motley Fool contributor James Mickleboro has positions in Collins Foods and Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods. The Motley Fool Australia has recommended Accent Group, Collins Foods, and Domino’s Pizza Enterprises. 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 Bigtincan Holdings Ltd (ASX: BTH) share price is ending the week in style.

In morning trade, the sales enablement automation platform provider’s shares are up 15% to 78 cents.

Why is this tech share flying high?

Investors have been scrambling to buy Bigtincan shares today after the company received a takeover approach.

According to the release, the company has received an unsolicited, indicative, conditional and non-binding proposal from SQN Investors to acquire all of the shares in Bigtincan for $0.80 cash per share by way of scheme of arrangement.

This represents a 17.6% premium to the tech share ended yesterday’s session.

SQN is already a substantial holder of Bigtincan and has a relevant interest in 74,940,121 shares or approximately 13.6% of its issued share capital. Farouk Hussein, a partner of SQN, has been a director of Bigtincan since October 2021.

The investment company revealed that it aims to fund the proposal by a combination of equity and possibly debt financing. However, it does not currently have binding commitments in that regard.

Will it be accepted?

As things stand, SQN has not been provided due diligence access.

However, the Bigtincan board has established an Independent Board Committee (IBC), comprising its current independent non-executive directors and its CEO and executive director, David Keane, to evaluate and respond to the proposal.

It is also worth noting that the SQN bid may not be the only one to consider. Bigtincan also explained that it has had preliminary discussions with other interested parties who have approached the company with indications of interest in respect of a potential control transaction.

The IBC will consider the proposals in an orderly manner with its advisers and in the best interests of all Bigtincan shareholders.

The post Guess which ASX All Ords tech share is soaring 12% on takeover news appeared first on The Motley Fool Australia.

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More reading

• Buy this cheap ASX 200 share with ‘the best property balance sheet on the market’: fundie
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!
• Why is the Arafura Rare Earths share price on hold today?
• Fortescue’s green hydrogen ambitions: Prosperous or preposterous?
• Here are 10 years of ASX 200 historical returns

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 Bigtincan. The Motley Fool Australia has positions in and has recommended Bigtincan. 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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