The Endeavour Group Ltd (ASX: EDV) share price is out of form again on Monday.

In afternoon trade, the drinks company’s shares are down over 1% to $7.08.

This means the Endeavour share price is now down 15% since this time last month.

Is the Endeavour share price good value?

While the recent weakness in the Endeavour share price may be disappointing for shareholders, one leading broker sees it as a buying opportunity for the rest of us.

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $8.10 price target on the company’s shares.

Based on the current Endeavour share price, this implies potential upside of over 14% for investors over the next 12 months.

Goldman is also expecting an attractive ~3% dividend yield from its shares in FY 2023, which stretches the total potential return beyond 17%.

What did the broker say?

The broker notes that the Tasmanian government intends to introduce a state-wide player card system to provide harm protection to those most at risk of problem gambling.

This would limit player losses to a maximum of $100 per day, $500 per month, or $5000 per year.

However, Goldman believes this will have an immaterial impact on Endeavour’s performance due to the size of the Tasmanian market. And even if the same system was introduced across the country, its analysts don’t believe the impact will be overly material.

The broker commented:

EDV has 150 Gaming Machines in TAS (c. 1.2% of total machines) which we estimate contributes to A$6mn in revenue (0.1% of group).

We do not see any signs of this impacting any other states; however, if this was to be extrapolated outside of Tasmania, we estimate that 3.75% of industry gaming expenditure would be impacted, translating to 0.3% of sales or 3.8% of PBT for EDV.

And while Goldman acknowledges that this could weigh on sentiment slightly, it continues to rate Endeavour’s shares as a buy and remains very positive on the company’s long term growth outlook. It concludes:

In our view, while this may offer short term overhang, we have a more constructive view on EDV’s longer term growth aspirations as it may accelerate the speed of independent publicans exiting the industry due to the increasing cost and complexity of the operating environment. Given we see an immaterial impact of the standalone Tasmania announcement and no signs of roll-out beyond Tasmania, we make no changes to our existing forecasts and maintain our Buy rating.

The post Goldman Sachs tips major upside for the Endeavour share price appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Attention Endeavour shareholders: Here’s some news on your dividends
• 5 things to watch on the ASX 200 on Friday
• How do Endeavour’s dividends stack up against its old parent Woolworths?
• Here are the top 10 ASX 200 shares 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 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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Eagle-eyed market watchers might have noticed a distinct change to the S&P/ASX 200 Index (ASX: XJO) this morning.

There are eight new faces on the index after the latest quarterly rebalance took effect prior to the market’s open.

Generally, being added to the ASX 200 boosts a company’s share price as funds tracking the index are forced to snap up its stock. However, it’s likely that most of that action has been completed by now.

Let’s take a look at how the newbies are settling in among many of the market’s iconic names.

After kicking the day off in the green, the ASX 200 is down 0.16% right now.

How are the ASX 200 newbies performing?

Eight companies found themselves added to the ASX 200 this morning after S&P Dow Jones Indices’ September rebalance came into effect.

And leading the pack of newcomers is John Lyng Group Ltd (ASX: JLG). Shares in the building services company have gained 1.8% to trade at $6.17 at the time of writing.

Coming in second best are shares in New Zealand telco Spark New Zealand Ltd (ASX: SPK). The Spark share price has lifted 1% to $4.525 right now.

Also trading higher are ASX 200 newbies Lovisa Holdings Ltd (ASX: LOV) and Charter Hall Social Infrastructure REIT (ASX: CQE). They’ve both gained 1% to trade at $22.75 and $3.495 respectively.

Meanwhile, shares of Karoon Energy Ltd (ASX: KAR) have lifted 0.2% to $2.015 while Capricorn Metals Ltd (ASX: CMM) stock is up 0.3% at $2.88.

Sadly, not all shares are celebrating their addition to the index today.

Stock in Smartgroup Corporation Ltd (ASX: SIQ) has fallen 0.5% to trade at $5.395.

But the greatest suffering is being felt by the newly-crowned ASX 200 lithium share.

The share price of emerging lithium producer Sayona Mining Ltd (ASX: SYA) is tumbling 7.9% to 26.7 cents despite the company’s silence.

The post The ‘in’ crowd: How are the ASX 200 newcomers performing today? appeared first on The Motley Fool Australia.

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More reading

• Sayona Mining share price swings wildly on ASX 200 debut
• The ASX 200 is getting a shakeup today. Here’s the tea
• Here’s why this ASX 200 retail share is on my buy radar
• 5 things to watch on the ASX 200 on Monday
• Broker names 2 top ASX shares to buy

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 Johns Lyng Group Limited. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET. The Motley Fool Australia has recommended Johns Lyng Group Limited and Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

It has been a tumultuous year in crypto, with prices falling dramatically since the start of the year but rallying this summer. Massive catalysts that will bring permanent changes to the second-largest cryptocurrency and the crypto world have arrived. With all of this going on, it’s a good time to keep a long-term perspective and look at three top cryptocurrencies to buy and hold forever. 

1. Ethereum

The Merge, Ethereum’s (CRYPTO: ETH) long-awaited transition from the proof-of-work consensus to proof of stake, was completed last week. 

While it has become a common misconception that The Merge will speed up transactions on the Ethereum network and lower fees, there will be other benefits. The transition to proof of stake will enable more Ethereum holders to participate in earning rewards from the network because they can now stake their Ethereum to earn a cut of transaction fees. While holders need to have 32 Ethereum and meet several other requirements to do this, plenty of third-party services like Coinbase (NASDAQ: COIN) allow customers with smaller amounts of Ethereum to commit their Ethereum to staking pools to earn interest. Coinbase currently pays out an annual percentage yield of 3.25% on staked Ethereum.

The Merge will also dramatically reduce Ethereum’s carbon footprint, because power-hungry mining equipment will no longer be running night and day to produce blocks of Ethereum. Some sources estimate that Ethereum’s pre-Merge energy consumption was equivalent to that of a country like Chile. Experts predict that the switch to proof of stake will reduce this energy intensity by over 99%, which is a big deal for the planet and for investors who may now feel more comfortable investing in Ethereum. 

The great thing about holding Ethereum for the long term is that while The Merge is a huge deal, Ethereum’s developers aren’t stopping there. Vitalik Buterin, Ethereum’s co-founder, estimates that the blockchain will only be at 55% of its potential after The Merge. The Merge paves the way for sharding, in which the blockchain is split into many chains to ease congestion on the network, which should eventually help improve speed and lower fees once fully implemented. The level of progress so far and the future ambition make Ethereum, the second biggest crypto by market value, an asset to buy now and hold forever.  

2. Bitcoin 

While all eyes have been on Ethereum ahead of The Merge, Bitcoin (CRYPTO: BTC) has been quietly rebounding, gaining about 15% since hitting its cycle low of $17,664 in mid-June. 

After The Merge, Bitcoin, the No. 1 crypto by market value, will stand alone as the major proof-of-work asset atop the crypto world. Bitcoin proponents view Bitcoin’s proof-of-work consensus as more secure than proof of stake and believe that The Merge will enhance Bitcoin’s image as a secure decentralized network. I believe that both proof of work and proof of stake have their own merits and I view owning both Bitcoin and Ethereum as the most sensible approach for investors.  

Some have questioned Bitcoin’s status as an inflation hedge as the price of Bitcoin has fallen this year in part due to rising inflation in the U.S. But it’s important to remember that Bitcoin is a global network with users all over the world. Despite its decline this year, it still represents a viable and accessible safe-haven asset for individuals in countries with rampant long-term inflation, such as Turkey and Venezuela. The maximum supply of 21 million Bitcoin is an appealing feature in a world where governments are printing ever-increasing amounts of currency, decreasing the purchasing power of the existing currency in the process. I don’t know if the price of Bitcoin will be higher or lower a week from now, but I feel good owning it as a potential hedge against future inflation and believe all investors can benefit from owning even just a small amount in their portfolios.  

3. Ravencoin 

With a market cap of $530 million and a ranking of 71 in terms of market cap, Ravencoin (CRYPTO: RVN) is much smaller and less established than Bitcoin or Ethereum. There is thus more risk when investing in Ravencoin, but there is substantial upside as well. Unlike Bitcoin and Ethereum, which have price points in the thousands of dollars, you can buy Ravencoin for just about $0.06. Ravencoin has posted a scintillating performance this summer, with a gain of more than 50% in the past 30 days alone.

Ravencoin’s summertime surge is because it is a proof-of-work crypto that can be mined with GPU (graphics processing unit) mining equipment. All of the GPUs that were mining Ethereum needed somewhere to go after the Ethereum Merge, and Ravencoin is one of the most attractive destinations. Ravencoin’s hash rate has surged, indicating that miners have already moved over to Ravencoin.

A short-term catalyst is all well and good, but here’s why Ravencoin is much more than just a short-term trade. Ravencoin was created with the purpose of allowing individuals to create their own tokens. Users can burn 500 Ravencoin and make their own token that represents a real-world asset. An example of how this could be useful is real estate tokenization. A property owner could use Ravencoin to tokenize an investment property and divide it into 100 pieces. This would give property investors significantly more liquidity than they enjoy today and lower the barriers to entry for investing in real estate.

Bitcoin, Ethereum, and Ravencoin are all good choices to buy now and hold forever. Cryptocurrencies are volatile and are best suited for risk-tolerant investors. For these investors, buying the top cryptocurrencies now while the market is uncertain is a move that could pay off over the long run. 

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

The post 3 cryptocurrencies to buy and hold forever appeared first on The Motley Fool Australia.

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More reading

• Ethereum’s merge is done: now what?
• 3 reasons the Ethereum price could gain in the post-Merge months
• Ethereum’s merge spotlights a key strength, says Coinbase exec
• 5 reasons I wouldn’t touch Shiba Inu with a 10-foot pole
• Why Ethereum is diving today

Michael Byrne has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The All Ordinaries Index (ASX: XAO) is falling 0.15% today, but three shares on the index are pushing far higher.

The Lake Resources N.L. (ASX: LKE), Polynovo Ltd (ASX: PNV) and Arafura Resources Limited (ASX: ARU) are all lifting today.

Let’s take a look at why these ASX All Ordinaries shares are having such a good day.

Lake Resources

Lake Resources shares are surging 12% today. The lithium explorer’s shares are lifting on the back of an update on the Kachi Lithium Project in Argentina. Lake announced ongoing work with Lilac Solutions on the Kachi project is taking place and all parties “are confident” on-site operations will be successful.

This follows news of a dispute between Lake and Lilac on 14 September. Construction work on the facility housing the Lilac demonstration plant is finished. Dry commissioning of the plant started on Wednesday. Lake said Lilac is planning to start on-site processing of Kachi brines from the plant in the first week of October.

Polynovo

The Polynovo share price is rising 9% today. Investors are buying up Polynovo shares on news of US Food and Drug Administration (FDA) clearance for NovoSorb MTX. Novosorb MTX is a product innovation for soft tissue regeneration for the management of complex wounds. This new product improves PolyNovo’s addressable market in the US by about $500 million.

Commenting on the news, Polynovo CEO Swami Raote said:

The creation of MTX is an exciting example of surgeon led product development that opens a significant new market for us.

Arafura Resources

The Arafura Resources share price is lifting 8% today. Today, Arafura has officially joined the ASX 300. This is a result of an S&P Dow Jones Indices September quarterly review. Arafura is a rare earth explorer working on the Nolans project in the Northern Territory. Arafura is aiming to supply 5% of the world’s Neodymium and Praseodymium (NdPr) oxide. The company has signed Memorandum of Understandings with Hyundai and GE Renewable Energy.

The post 3 ASX All Ordinaries shares having a cracking Monday appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price rocketing 19%?
• Here are the 10 most shorted ASX shares
• PolyNovo share price jumps 11% on FDA update
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Polynovo share price halted amid FDA news

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 positions in and has recommended POLYNOVO FPO. 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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Coles Group Ltd (ASX: COL) shares could be a leading pick for dividend income in the coming years.

It has already started an impressive dividend streak, growing its annual dividend each year since it was divested from Wesfarmers Ltd (ASX: WES) in FY19.

There are not too many S&P/ASX 200 Index (ASX: XJO) shares that grew their dividend in 2020 as the COVID-19 pandemic caused financial difficulties for many businesses and sectors.

But, Coles was one of the impressive few that did grow its dividend in 2020. And 2021. And 2022.

How much did the Coles dividend increase in FY22?

The Coles board decided that the final dividend of FY22 would be 30 cents per share. That was an increase of 7.1% year over year.

The Coles interim dividend was maintained at 33 cents per share. So the full-year dividend of 63 cents per share was an increase of 3.3% compared to FY21’s payout.

A 7.1% increase for the last six months of the 2022 financial year was a good increase. What’s more, it represented a rise that was faster than inflation.

Coles’ revenue is benefitting from the increase in inflation because it means customers are paying more for the same basket of products going through the checkout.

However, Coles’ costs aren’t immune to an increase as well. Coles commentated on its FY23 outlook:

We have seen further cost price inflation in produce due to recent flooding, in bakery due to wheat commodity prices, and in packaged groceries due to various supply chain cost increases including wages, packaging, raw ingredients and freight.

Consistent with our suppliers and customers, we are also seeing inflationary pressures impacting our own cost base with increasing wages, rent, fuel, supply chain and capital costs. In addition, COVID-19 and the flu has seen increased team member absenteeism costs continue to impact the business.

What could this mean for future dividends?

Coles is expected to achieve profit growth and dividend growth in FY23 and FY24. This could be a useful driver for the Coles share price. We all need to eat food, so I believe Coles could be a defensive choice for the next few years.

In FY23 it will be cycling against the sales boost of lockdowns in the first half of FY22 and inflation in the second half of FY22. However, Coles Express can benefit from increased mobility now that lockdowns have finished. And higher fuel prices are another factor to consider.

In FY22, Coles’ earnings per share (EPS) increased by 4.6% to 78.8 cents. Using the estimates on CMC Markets, Coles is expected to grow its EPS slightly to 81.7 cents in FY23. Then it’s expected to achieve more growth in FY24 as EPS increases to 87.7 cents.

The profit growth is expected to help fund higher dividend payments.

In FY23, Coles is expected to grow its dividend by 6% to 66.8 cents per share according to the numbers on CMC Markets. Then, Coles is predicted to increase its dividend by another 6.3% to 71 cents per share.

If these predicted numbers come true, then the FY23 grossed-up dividend yield could be 5.7% and the FY24 grossed-up dividend yield could be 6.1%.

Foolish takeaway

With the Coles share price down by 14% over the past month, I think this could be an opportunistic time to consider this supermarket business which is investing for growth, including its large, heavily-automated warehouses that could boost efficiencies and margins.

I believe it’s building a promising reputation as an ASX dividend share.

The post Why I think Coles shares are a top buy for ASX dividend investors appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX dividend shares for your retirement portfolio
• Are these ASX blue-chip shares losing their defensive benefits?
• Why is the Coles share price tumbling today?
• 5 things to watch on the ASX 200 on Wednesday
• Supermarket shakeup: Do Coles shares offer better dividends than Woolworths?

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

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The AGL Energy Limited (ASX: AGL) share price has started the week poorly.

In afternoon trade, the energy company’s shares are down 2.5% to $6.94.

Why is the AGL share price falling?

While the AGL share price was already in the red today, it has edged even lower since the release of an announcement during late morning trade.

According to the release, AGL is making key changes to the renewal of its board and management as it prepares to announce the outcomes of its review of strategic direction and confirm guidance later this month.

One of those changes sees AGL’s chair, Peter Botten AC, step down from the role with immediate effect today. He is being replaced by current board member Patricia McKenzie.

McKenzie is currently the chair of NSW Ports and the Sydney Desalination Plant group companies. She was also previously the chair of Essential Energy, a director of APA Group (ASX: APA), AEMO, Macquarie Generation, and Transgrid, CEO of the Gas Market Company, and a key participant in the Council of Australian Government’s National Energy Reform.

In addition, current non-executive director Diane Smith-Gander AO is stepping down with immediate effect.

Commenting on the exits, Patricia McKenzie said:

I would like to acknowledge and thank Peter Botten for his significant contribution as a member of the AGL Board over the past six years, including as Chairman over a challenging 18 months. I would also like to acknowledge and thank Diane Smith-Gander for her outstanding contribution to the Board over the past six years, including as Chair of the People & Performance Committee.

The company has been through a period of significant change and uncertainty, and I am stepping into the Chair role to provide clear direction and stable experienced leadership as we redesign our energy portfolio and deliver the outcomes of the review of strategic direction.

What else?

Another major change will see AGL’s CEO, Graeme Hunt, step down from the role at the end of the month.

He will be replaced on an interim basis by current CFO Damien Nicks. Finance and energy executive Gary Brown will act as interim CFO during until a permanent CEO is appointed. AGL advised that there is currently a short list of Australian and global candidates.

McKenzie also commented on Hunt’s exit. She said:

Graeme will leave the company at the end of the month having led with deep commitment and professionalism through an extraordinary time of change.

The post AGL share price dips following changing of the guard appeared first on The Motley Fool Australia.

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More reading

• AGL share price slides amid shareholder revolt
• What’s going on with the AGL share price today?
• 5 things to watch on the ASX 200 on Tuesday
• The AGL share price has tumbled 16% in a month. What’s next?
• Are AGL shares offering a bigger final dividend than Origin this year?

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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It’s a big day for the Sayona Mining Ltd (ASX: SYA) share price this Monday. Not because of the wild volatility we have seen with the lithium company’s shares, mind you. At present, the Sayona share price has lost a nasty 3.45% so far this session to 28 cents a share after bouncing around all morning.

But that’s not the main reason why investors will be talking about this company today. No, today, is the first day that Sayona mining can claim membership of the ASX’s most prestigious club – the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is the flagship index of the Australian share market. It summarises the performance of the largest 200 shares of the ASX by market capitalisation into a single metric. For an ASX share to be eligible for ASX 200 inclusion, it has to fulfil a few criteria. But the most important factor is that it needs to be among the largest 200 ASX shares by market cap.

Since a company’s market capitalisation is basically determined by a company’s share price, the 200 largest shares on the ASX share market change all the time. To reflect this, indexes like the ASX 200 are typically rebalanced every three months. This ensures that the index accurately reflects the state of the share market.

Sayona share price makes its ASX 200 debut

Fortunately for the Sayona Mining share price, this latest rebalancing has been kind. Today, Sayona shares officially join the ASX 200 Index. The company joins other lucky entrants like Karoon Energy Ltd (ASX: KAR) and Lovisa Holdings Ltd (ASX: LOV) in gaining an ASX 200 membership card.

In their place, shares like Zip Co Ltd (ASX: ZIP) and EML Payments Ltd (ASX: EML) have been kicked out of the index.

Now, you might think that ASX 200 inclusion would be beneficial to a company’s share price. This is logically sound. ASX 200 membership means any ASX 200 index fund that tracks the index now has to hold the new shares.

Plus, there are many fund managers that have an ASX 200-only mandate. As such, there are potentially more investors that can invest in these companies now. But the index providers know that changing the index can spark some share price destabilisation because of this.

As such, we typically find out well in advance what any index changes might be coming. In this case, we found out that Sayona shares would be joining the index way back on 2 September.

So everyone involved had plenty of time to prepare. That probably explains why we aren’t seeing a massive rush of goodwill into the Sayona share price this Monday. But even so, it’s still a great day for this company.

The post Sayona Mining share price swings wildly on ASX 200 debut appeared first on The Motley Fool Australia.

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More reading

• The ASX 200 is getting a shakeup today. Here’s the tea
• Why is the Sayona Mining share price diving 5% on Friday?
• Why is the Sayona Mining share price tumbling 6% on Wednesday?
• Investors are obsessed with ASX lithium shares, but what about this other critical battery metal?
• Why is the Sayona Mining share price soaring 8% on Monday?

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 positions in and has recommended EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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, Elvest Co portfolio manager Adrian Ezquerro names two ASX shares that he regrets not buying a decade ago.

Looking back

The Motley Fool: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

Adrian Ezquerro: Yeah. I mean, to be honest, I’ve probably had all three of those, but in terms of the absolute dollar cost, it absolutely relates to missed opportunities. Most of my investing regrets relate to not pulling the buy trigger, and that’s particularly after doing a lot of legwork. 

I now know that when it comes to a really high-quality business, quibbling over a few cents on entry price can ultimately cost you dollars of long-term value. 

When I reflect on something like this, I think about a period of time about 10 or 11 years ago in the aftermath of the GFC. It was a period of time, as an analyst, I actually really enjoyed and I got a good opportunity to do a lot of detailed research on what I now know are a bunch of great quality stocks. 

Now it’s quite interesting to look back and consider and observe what these types of businesses have done since.

I’ll give you two examples that come to mind. The first I think of is ResMed CDI (ASX: RMD). It’s a leading medical device company, specialises in sleep apnea, branched out in recent times. At that time it would’ve been trading, I would say in the low $4 range. I’d done a lot of legwork, built my model and wrote the report and went and saw management and they were really gracious with their time.

It was fascinating, I really enjoyed it. But in retrospect, clearly I was conservative and set a target entry price that was just too sharp. It ran away from us and today trades in the mid $30s, so that was certainly an opportunity lost.

MF: It’s one of the stocks that pretty much at every point in its history, investors would’ve thought “This is too expensive”, right? But it just keeps going up.

AE: Yeah, that reflects consistent execution that they’re growing into a large market. They’ve dominated that niche alongside another competitor which has recently stumbled. Notwithstanding some procurement issues, they’re doing their best to take advantage of that opportunity. 

Yeah, great quality business, it’s perpetually been. It looks expensive and I think it’s fair to say that that’s exactly the same case as my other reflection in this instance — TechnologyOne Ltd (ASX: TNE), another high-quality business I did a lot of work on about a decade ago. 

At that time, it was building nicely off a relatively small base. It certainly ticked a lot of the boxes. It had strong business fundamentals, founder-led, net cash balance sheet, and generating cash. And at the time, and still today, it [has] quite a positive outlook. As you say, it was something that always seemed to be expensive and certainly felt like that was the case back then.

Similar to ResMed, I was seeking a discount on my assessment value at the time, which in retrospect was too conservative and it was an opportunity missed. It has since executed really well. It’s probably been a 10-bagger since that time. 

Anyway, the silver lining of these types of reflections is that you take these learnings over the many years of investing and analysis — it’s all cumulative. You try and bank that knowledge and experience and you keep learning, you hopefully keep improving and one would hope you are less likely to replicate the same sorts of mistakes in the years to come.

MF: And don’t quibble over a few cents for the entry price if it’s going to be a long-term investment. Is that right?

AE: Correct. If you see a really high-quality business and my reflection initially on ResMed, I can’t remember specifics, but it was trading in low $4s and I might have wanted to buy it at $4 or below. 

I was trying to be diligent in seeking that margin of safety of discounts and value. Ultimately it’s a business that has compounded value over many years and it’s been a great investment from that point in time.

The post I regret not buying 2 ASX shares that became 10-baggers: fundie appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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.

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The Core Lithium Ltd (ASX: CXO) share price is regaining some lost ground today.

In the past week, the lithium producer’s shares fell by almost 10% on the back of volatility on the ASX.

However, as the broader market struggles to keep afloat during early afternoon trade, Core Lithium shares are 1.39% in the green at $1.46 apiece at the time of writing. They’ve lost some ground from their earlier intraday high of $1.51 a share, a 4.86% rise.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.25% to 6,722.1 points.

Let’s take a look at what might be going on.

What’s driving Core Lithium shares higher?

It appears that bargain hunters are snapping up Core Lithium shares after their heavy falls in the prior week.

Despite the company no making any announcements since its extended offtake agreement with Tesla late last month, it seems investor confidence remains high in the lithium sector.

This follows a recent International Energy Agency report that anticipates lithium demand to accelerate more than 40 times over the next two decades.

In addition, graphite, cobalt, and nickel are expected to follow suit, with demand growing to about 20-25 times.

Core Lithium is well positioned to be Australia’s next lithium producer, developing the Finniss Lithium Project near the Darwin port. This is regarded as the most capital-efficient and lowest-cost spodumene lithium project in the country.

The company has already established binding offtake and is in the process of finalising further agreements within the industry.

Core Lithium expects to have first production of lithium concentrate in Q4 2022. Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.

Core Lithium share price snapshot

While it has been a rollercoaster over the past three months, the Core Lithium share price is up 150% for 2022.

When looking at the past 12 months, the company’s shares are up a mammoth 220%.

Based on today’s price, Core Lithium has a market capitalisation of approximately $2.5 billion.

The post Why is the Core Lithium share price gaining today? appeared first on The Motley Fool Australia.

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More reading

• ASX lithium shares take a beating on Friday
• Why is the Core Lithium share price sliding 4% today?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Core Lithium share price tumbling 3% today?

Motley Fool contributor Aaron Teboneras 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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It’s a big day for the S&P/ASX 200 Index (ASX: XJO) today, its biggest day in months. Not because anything too remarkable is happening with the index’s movements themselves this Monday. At the time of writing, the ASX 200 is essentially flat, having gained an unremarkable 0.04% so far this session to just over 6,740 points.

No, it’s a big day for the ASX 200 today because the latest quarterly rebalancing has just taken effect. The ASX 200 has just had a shakeup.

Why do indexes need rebalancing?

Like most indexes, the ASX 200 is constructed through weighting by market capitalisation. This means the largest companies by size enjoy the largest weighting in the index.

So even though there are 200 or so ASX shares in the ASX 200, the largest ones have more influence than the smallest ones. So Commonwealth Bank of Australia (ASX: CBA), for example, has a far more influential presence on the ASX 200 than, say, Bank of Queensland Limited (ASX: BOQ).  

But market capitalisations are determined by a company’s sales price. And, as we know, this changes every trading day. As such, the largest ASX 200 shares by market capitalisation are always in flux.

To make up for this, the ASX 200 is rebalanced every three months to ensure the index is accurately representing the Australian share market. What might have been the ASX 200’s 195th largest share by market cap in one quarter might become the 205th, for example, by the time the next quarter rolls around.

As such, there are normally new companies that leave the index when this rebalancing takes place. These will be replaced by others that have seen their market capitalisation rise over the quarter in question.

So these changes to the ASX 200 Index are normally announced with a few weeks to spare. This gives index funds and other concerned parties the time to adjust and hopefully prevents no unnecessarily wild price swings on the rebalance day.

We found out what the latest rebalancing would involve a few weeks ago on 2 September. But today is the day these changes take effect. So let’s go over some of the biggest changes to the ASX 200 Index that are in place from today.

A new look ASX 200

So, to get the bad news out of the way first, here is a list of the ASX 200 shares that are, well, no longer ASX 200 shares.:

• Life360 Inc (ASX: 360)
• AVZ Minerals Ltd (ASX: AVZ)
• City Chic Collective Ltd (ASX: CCX)
• Clinuvel Pharmaceuticals Limited (ASX: CUV)
• EML Payments Ltd (ASX: EML)
• Janus Henderson Group (ASX: JHG)
• Pointsbet Holdings Ltd (ASX PBH)
• Zip Co Ltd (ASX: ZIP)

In their place, here are the new faces that have just gained an ASX 200 membership card:

• Capricorn Metals Ltd (ASX: CMM)
• Charter Hall Social Infrastructure REIT (ASX: CQE)
• Johns Lyng Group Ltd (ASX: JLG)
• Karoon Energy Ltd (ASX: KAR)
• Lovisa Holdings Ltd (ASX: LOV)
• Smartgroup Corporation Ltd (ASX: SIQ)
• Spark New Zealand Ltd (ASX: SPK)
• Sayona Mining Limited (ASX: SYA)

So some interesting names here, which perhaps some readers might be familiar with.     

ASX 200 membership can be a big deal for a company’s shares. For example, as of today, any ASX 200 index fund or exchange-traded fund (ETF) that tracks the ASX 200 will have now sold any of the companies in our first list. They also would have just welcomed all of the companies in our second list in their funds.

There’s also the prestige that comes along with being in the flagship index of ASX 200 shares.

So today might be a bitter day for some ASX shares that didn’t make the cut this time. But it will also be a happy day for the new companies being welcomed onto the ASX 200 as of this Monday.

The post The ASX 200 is getting a shakeup today. Here’s the tea appeared first on The Motley Fool Australia.

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More reading

• Out in the cold: How are the ASX 200 evictees faring on Monday?
• How are Zip shares faring on their first day outside the ASX 200?
• Here’s why this ASX 200 retail share is on my buy radar
• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

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 positions in and has recommended EML Payments, Johns Lyng Group Limited, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments and SMARTGROUP DEF SET. The Motley Fool Australia has recommended Johns Lyng Group Limited, Lovisa Holdings Ltd, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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