Ever since the market turned against high-growth shares in November last year, many experts have urged investors to stick with “quality”.

While the definition of quality does vary depending on who you speak to, attributes that are commonly thrown up include decent cash flow, market dominance, profitability and resilience to economic downturns.

Considering this, if you’re looking for ASX shares to buy, you may be interested in what Bell Potter investment advisor Christopher Watt had to say this week.

He picked out two stocks that he labelled “high quality”, which he wouldn’t be shy about buying right now:

‘Significant upside’ for ‘high quality portfolio’

Real estate company Mirvac Group (ASX: MGR) currently pays out a dividend yield of 4.8%, which is pretty handy at a time when so many investors are seeking income.

Watt told The Bull that “one of Australia’s biggest residential developers” is a buy at the moment.

“Mirvac appeals for its high quality portfolio of assets with low financial leverage and exposure to apartments, which, we believe, may be a favourable part of the residential market in the near term.”

Mirvac has a lot of work coming up, he added.

“It has significant upside from a $30 billion development pipeline, despite potential for declining asset values.”

The Mirvac share price has lost almost 30% so far this year, but many in the wider professional community agree with Watt.

According to CMC Markets, nine out of 14 analysts currently rate Mirvac shares as a strong buy.

‘Reliable earnings’ with expansion in mind

The Lottery Corporation Ltd (ASX: TLC) is fortunate enough to operate in an industry that sees stable demand regardless of economic cycles.

Watt said it is a “high quality business with reliable earnings”. 

“It posted a record fiscal year 2022 result, with revenue up 9.4% on the prior corresponding period.”

The Lottery Corp increased its profit margins, he noted, and has expansion in mind.

“The company is targeting new domestic and overseas acquisitions,” said Watt.

“In our view, The Lottery Corporation has strong earnings characteristics across its lotteries and Keno divisions. Cash generation is attractive.”

Wilsons head of investment strategy David Cassidy said earlier this month that he favoured services providers like The Lottery Corp over companies that made goods, considering the economic uncertainty.

“We prefer service companies…, which should benefit from pent-up demand for these services after COVID restrictions.”

Eight out of 13 analysts surveyed on CMC Markets currently rate The Lottery Corp shares as a buy.

The post 4.8% yield: Expert picks 2 ‘high quality’ ASX shares to buy now appeared first on The Motley Fool Australia.

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

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

More reading

• 3 ASX shares to buy after reporting season (and a sector to avoid): expert
• Here are the top 10 ASX 200 shares today
• Lottery Corporation share price drops despite $373 million profit
• Earnings preview: Here are the ASX shares reporting today

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

from The Motley Fool Australia https://ift.tt/jygSTvR

The Woolworths Group Ltd (ASX: WOW) share price has been falling in recent weeks. It’s down 6% over the last month.

How does this compare to the wider ASX share market? Let’s have a look. The S&P/ASX 200 Index (ASX: XJO) has dropped by 1.4% over the same period. That’s a sizeable underperformance in just one month.

Within that time, investors have had a good look at what the supermarket business achieved in FY22 and some early commentary on FY23.

FY22 earnings recap

Woolworths reported that its group sales increased 9.2% compared to FY21. However, the group earnings before interest and tax (EBIT) dropped by 2.7% to $2.69 billion. While the group net profit after tax (NPAT) increased 0.8% to $1.51 billion. The company raised its annual dividend per share by 1.1% to 92 cents per share.

Talking about the result, Woolworths CEO Brad Banducci said:

The extremely challenging operating environment caused by supply chain disruptions, product shortages, team absenteeism and flooding led to an inconsistent customer experience and a financial performance that was below our aspirations for the year. However, I am proud of how our team continued to show great care for our customers and each other and ongoing resilience to deliver a strong Christmas, and materially improved trading momentum in the second half.

Trading and outlook

Investors are often forward-looking, so the Woolworths share price can take into account what management said about early FY23 trading.

Woolworths said that the start of FY23 is “clouded” by the cycling of the COVID lockdowns at the start of FY22 in its Australian food business, which significantly impacted New South Wales, the state with the largest population. Total sales in the first eight weeks of FY23 were down 0.5% compared to FY22.

Staff “absenteeism” and supply chain disruptions continued to be above pre-COVID levels, though have improved.

Woolworths also said that inflation is beginning to impact all aspects of the customer shopping experience and behaviour.

Operating conditions in the New Zealand food division are “challenging”. However, Big W total sales have been “strong” in the first eight weeks of FY23, increasing by just under 30% as customers are able to get out and about more freely compared to 12 months ago. It said the discretionary retail spend remains “uncertain”, though Big W’s offering is a “strength” in the current environment.

Woolworths concluded:

In summary, we expect the trading environment to remain volatile and challenging due to endemic COVID disruptions, ongoing supply chain challenges, higher costs across our business and cost-of-living pressures for our customers. However, we are increasingly more agile and purposeful in responding to these challenges and are focused on improving our underlying operating performance across all aspects of our value chain after three years of disruption.

Is the Woolworths share price an opportunity?

Tony Locantro from Alto Capital doesn’t think so. On The Bull’s buy, hold, sell share tips, Locantro recommended that Woolworths shares are a sell:

While cost pressures have eased, we’re concerned about the impact from broad cost of living increases on its customers moving forward.

He’s not the only one with a negative view. The broker Credit Suisse currently rates Woolworths as underperform with a price target of just $31.37. That implies a possible fall of more than 10%. The broker thinks the valuation is expensive compared to the rest of the sector, and the Australian supermarkets segment is seeing high-cost growth.

The post Down 6% in a month, is September a good time to buy Woolworths shares? appeared first on The Motley Fool Australia.

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

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

More reading

• Why this top broker is tipping 23% upside for the Woolworths share price
• How do Endeavour’s dividends stack up against its old parent Woolworths?
• Brokers name 2 ASX 200 shares to buy for a retirement portfolio
• Should all ASX investors be buying defensive shares right now?
• Woolworths share price edges higher as shareholders green light MyDeal takeover

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

from The Motley Fool Australia https://ift.tt/l1Ke7NA

ASX shares with exposure to the defence industry may be set for “runaway growth”.

That’s according to Aron Pataki, global portfolio manager at Newton Investment Management.

As the Australian Financial Review reported, Pataki says the defence sector is a key area he’s keeping an eye on in his hunt for growth stocks amid today’s rising geopolitical turmoil and environment of fast rising interest rates.

Which could throw up some welcome tailwind for ASX shares with exposure to defence spending.

Russia’s war in Ukraine sparks defence spending growth

With inflation rocketing after a decade of ‘stubborn absence’ and interest rates rising fast following 11 years of stable or falling rates, Pataki sees the advantage returning to active investors over passive investors.

According to Pataki (quoted by the AFR):

For decades, passive investing worked very well. It didn’t really matter what you invested in, everything went up, and the mantra was whenever you have a dip, it’s a brilliant buying opportunity. But I suspect the world might be more complicated than that going forward. Active investors like us will benefit where you need to be far more selective.

Russia’s invasion of Ukraine has spurred governments the world over to rethink their defence spending, with further growth in defence budgets widely forecast over the coming years.

Having invested in global defence giants Lockheed Martin Corporation (NYSE: LMT) and BAE Systems plc (LON: BA), Pataki said defence is among the key sectors to watch “for runaway growth”.

Which ASX shares have exposure to the defence sector?

Now, there are no ASX shares that can rival Lockheed Martin or BAE Systems for their sheer size.

At least, not yet!

But a number of small-cap shares trading on the ASX do have significant exposure to increased global defence spending. Though that’s largely yet to filter down to their share price performance this year.

Electro Optic Systems Holdings Ltd (ASX: EOS), for example, develops electro-optic technologies for the aerospace market. The company’s biggest revenue earner is its defence segment, which manufactures advanced fire control, surveillance, and weapon systems. Despite running sharply higher in the weeks following Russia’s invasion of Ukraine, the Electro Optic share price is down 79% in 2022 amid slumping revenue figures.

DroneShield Ltd (ASX: DRO) is another ASX share that stands to benefit from increasing geopolitical tensions. DroneShield provides drone detection and disruption solutions to the defence sectors as well as commercial airports, prisons, and other critical infrastructure. The DroneShield share price is down 3% year-to-date, beating the benchmark performance.

Then there’s Codan Limited (ASX: CDA). Codan develops electronics solutions with a strong focus on metal detectors. Codan sells its equipment to both private and government customers. The Codan share price is down 33% this calendar year despite reporting strong FY22 results. Those results included a 16% year-on-year increase in sales and a record underlying net profit after tax (NPAT) of $100.5 million.

Other ASX shares with a footprint in the defence sector worth exploring include Bisalloy Steel Group Ltd (ASX: BIS), Austal Ltd (ASX: ASB), and Quickstep Holdings Limited (ASX: QHL).

The post Could ASX shares in this sector be set ‘for runaway growth’? appeared first on The Motley Fool Australia.

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

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

More reading

• Is the Electro Optic Systems share price now a massive bargain or a falling knife?
• Why is ASX behemoth Soul Patts lending a hand to Electro Optic Systems?
• Electro Optic Systems share price crashes 35% after first-half shocker
• 3 beaten down ASX All Ords tech shares that are printing cash
• Why is the Electro Optic Systems share price frozen today?

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 positions in and has recommended Austal Limited, DroneShield Ltd, and Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lockheed Martin. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Ny1JWth

There is still much uncertainty with ASX shares at the moment.

The Reserve Bank has indicated there are more interest rate hikes to come. Inflation is still raging. And no one knows how hard the economy will be hit.

So in this environment, you need to have high belief in a stock to pluck up enough courage to buy it with your hard-earned.

Thankfully, Morgans investment advisor Jabin Hallihan named two ASX shares this week that he currently rates as high-conviction pickups:

Buying opportunity for huge upside

Silk Logistics Holdings Ltd (ASX: SLH) shares have lost more than 10.7% since the start of June.

The team at Morgans believes this just gives it more upside.

“This integrated logistics provider posted [an] underlying group net profit after tax of $15.8 million in fiscal year 2022, a 45% increase on the corresponding period,” Hallihan told The Bull.

“Silk Logistics continues to evaluate merger and acquisition opportunities as a means of adding further capacity across port and contract logistics.”

He added that management is also seeking more warehouse sites to upgrade the capability of its network.

Hallihan’s team has a price target of $3.50 for Silk Logistics shares, which represents a 62% upside from the current level.

Shaw and Partners also agrees with this assessment. Its analysts rate the stock as a strong buy, according to CMC Markets.

‘A bright outlook’ for analysts’ pet

Lovisa Holdings Ltd (ASX: LOV) is a favourite among analysts at the moment.

That’s despite a stunning 84.3% rally in the share price since mid-June.

The opinion seems to be that due to its low-cost focus, the accessories retail chain will be resistant to any forthcoming economic downturn.

Hallihan’s positive on the business.

“Lovisa offers a bright outlook,” he said.

“Investors reacted positively to its fiscal year 2022 result.”

Lovisa’s “broad product range” and high gross margins puts it into Hallihan’s good books.

“This fashion jewellery and accessories retailer has developed a vertically integrated business model that’s capable of responding rapidly to changing trends.”

QVG Capital last week liked the expansion progress in Lovisa’s latest performance update.

“Its result was glittering and the global roll-out of high returning stores appears to be accelerating.”

The post 62% upside: Expert names 2 ASX shares looking beautiful right now appeared first on The Motley Fool Australia.

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

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

More reading

• Leading brokers name 3 ASX shares to buy today
• 3 ASX All Ordinaries shares hitting all-time highs on Monday
• Why A2 Milk, BHP, Lovisa, and Nickel Industries shares are charging higher
• I shouldn’t have sold this ASX share two years ago: fund
• 3 ASX 300 shares hitting new highs on Friday

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

from The Motley Fool Australia https://ift.tt/zLi76Od

The A2 Milk Company Ltd (ASX: A2M) share price was on form on Monday.

The infant formula company’s shares rose 2.5% to $5.70 following the release of a positive update on its Chinese product registration.

This means the A2 Milk share price is now up over 15% since this time last month.

Can the A2 Milk share price keep rising?

The good news for investors is that one leading broker still sees plenty of upside in the A2 Milk share price.

According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company’s shares to $6.60.

Based on where its shares are trading today, this implies potential upside of 16% for investors over the next 12 months.

What did the broker say?

Bell Potter highlights that Australia-China exports, which is seen as a daigou proxy, were up 111% year over year in July. It notes that this is “strongest read in nine months.”

In addition, China infant formula imports were up 31% year over year in July. The broker highlights that “China landed volumes seemed to find a floor in Apr’22 and have been climbing since.”

All in all, the broker appears to see this data as supportive of its estimates. As a result, the broker continues to forecast strong earnings growth in the coming years. It commented:

Our Buy rating is unchanged. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e. With an increased focus on direct channels to market (73% of 2H22 IMF sales) we see the offline expansion program as key to achieving these targets, noting that A2M is relatively underrepresented in this segment, suggesting a reasonable runway of growth.

The post Broker says the A2 Milk share price can charge even higher appeared first on The Motley Fool Australia.

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

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

More reading

• Why A2 Milk, BHP, Lovisa, and Nickel Industries shares are charging higher
• Why is the A2 Milk share price storming 6% higher on Monday?
• A2 Milk share price on watch following China update
• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping
• Why is the A2 Milk share price tumbling lower 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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/jwlEpQI

The world can be a frightening place at the best of times, but uncertainty has dominated even more than usual in 2022.

First there were inflation and interest rates fears, then Russian troops invaded Ukraine, followed by oil and gas prices skyrocketing. Then came the actual interest rate rises, recession fears and second-guessing when central banks might stop the pain.

All this anxiety has caused most non-mining ASX shares to tumble in value over the year.

There was some relief over July and August, but much of those gains have been forfeited since and, overall, everyone’s portfolios are well down on where they were a year ago.

And, most critically, no one knows what’s going to happen next.

Was the July-August rally a dead cat bounce? Or was it the start of a new bull run?

Will the Reserve Bank and United States Federal Reserve stop raising rates at the end of the year? Early next year? End of 2023?

It’s not surprising many investors are confused about what they should do.

It’s always darkest before dawn

Forager Funds chief investment officer Steve Johnson confirmed in a memo to clients that uncertainty paralysis is widespread at the moment.

“Are you waiting for clarity before putting more money into the market? Keen to see what happens with inflation and interest rates before investing more in volatile equities?

“You aren’t on your own. It’s the most common feedback we hear from investors at the moment. Everyone wants to wait and see.”

But he warned that only disappointment awaits those who remain idle.

He shared a quote from CMO founder Jeremy Grantham in his March 2009 letter to investors in the midst of the global financial crisis:

The tide doesn’t turn when there’s light at the end of the tunnel. The tide turns when it’s pitch black, just a shade less pitch black than the day before.

Those words are forever seared into Johnson’s brain.

“For those who don’t remember, the world economy was staring down the prospect of another great depression,” he said.

“Six months later the S&P 500 Index (SP: .INX) of US-listed stocks was up 51%. Australia’s All Ordinaries Index (ASX: XAO) had risen 48%.”

He pointed out that all these spectacular climbs came well before the cloud over the economy had moved away.

“We were well into 2010 before the risk of economic meltdown had abated. Yet all of the gains came before the coast was clear.”

So by sitting and waiting, those non-investors could miss out on a once-in-a-decade rally before they even realise what’s happened.

By the time uncertainty clears, it’s too late

Johnson made it clear that his team does not pretend to know whether the worst is behind the share markets.

“Trying to pick the top or bottom of the markets is nigh on impossible,” he said.

“If you do want to nail it, though, history has shown that waiting for less uncertainty is not going to help. You need to pick the point of maximum pessimism, the point where uncertainty is at its peak.”

By the time the economic and geopolitical uncertainties have resolved themselves, it’ll be too late. ASX shares, as a barometer of the future, will have already made their chunkiest gains.

“Whether this is a false dawn or the real one, you don’t get to wait until the sun comes up and still get to buy cheap stocks,” said Johnson.

“We believe it is uncertainty that creates the opportunity and, the second the uncertainty disappears, the opportunities disappear with it.”

He added that already many ASX shares in Forager’s funds are trading much higher than their 2022 troughs.

Private capital seems to realise that there are bargains to be had on the ASX. 

“On the ASX, two holdings in the Forager Australian Shares Fund have been subject to takeovers in August,” said Johnson.

“Don’t let uncertainty be the thing that holds you back from great long-term investments.”

The post Are you waiting to see what happens to ASX shares? DON’T appeared first on The Motley Fool Australia.

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

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

More reading

• Analysts say these ASX dividend shares are buys
• 5 things to watch on the ASX 200 on Tuesday
• Down 21%, what happened to the MA Financial share price today?
• Up 50% so far this year, is it too late to buy Woodside shares?
• Tyro share price dips amid Potentia pressure rumours

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

from The Motley Fool Australia https://ift.tt/xD0gS2X

If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is footwear retailer Accent.

After a very tough time in FY 2022, Accent appears to be back on track this year. Its recent full year results release revealed that like for likes sales were up strongly during the early stages of FY 2023.

The team at Bell Potter remain very positive on the company and recently put a buy rating and $2.00 price target on its shares. It commented:

The first 7 weeks of FY23 has seen positive like-for-like (LFL) sales +18.9% vs the -16% LFL sales growth for the same period in FY22 and -13% for 1H22. The company’s focus on achieving full gross margins was encouraging as the company executes on a disciplined growth strategy to sustain earnings growth.

Bell Potter is also forecasting some attractive dividend yields in the coming years. It is expecting fully franked dividends of 9.5 cents per share in FY 2023 and 12.7 cents per share in FY 2024. Based on the current Accent share price of $1.43, this would mean yields of 6.6% and 8.8%, respectively, over the next couple of years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs rate the company highly and have named it as a buy recently with a $4.80 price target. The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. It expects this to support stronger than consensus earnings in FY 2023. Goldman explained:

Our FY23 NPAT is +7% vs FactSet consensus and our TP implied ex-property FY24E P/E of ~5x with dividend yield of 8%. We believe that HVN offers 21% TSR at an attractive valuation; reiterate buy.

Another positive is that the broker expects Harvey Norman to provide investors with generous dividends in the near term. It is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.42, this will mean yields of 8.6% and 7.2%, respectively.

The post Analysts say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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

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

More reading

• Are ‘cracks starting to show’ for ASX 200 retail shares?
• Analysts are tipping 6%+ yields from these ASX dividend shares
• Brokers name 3 ASX shares to buy today
• Brokers name 2 top ASX dividend shares to buy now
• 3 ASX 300 shares trading ex-dividend today

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

from The Motley Fool Australia https://ift.tt/l48qwn6

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index rose 1% to 6,964.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market is expected to rise again on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 41 points or 0.6% higher. In the United States, the Dow Jones rose 0.7%, the S&P 500 was up 1.1%, and the NASDAQ climbed 1.3%. Investors appear to be betting on an upcoming US economic data release showing that inflation is easing.

AGL outage update

The AGL Energy Limited (ASX: AGL) share price could come under pressure on Tuesday. After the market close on Monday, the energy company revealed that the Loy Yang A Unit 2 will be out of action for longer than expected. During testing in the final assembly of the generator rotor, a defect was identified. This is expected to delay the return of Loy Yang A Unit 2 until late October. However, management expects its strong performance during August and September to help offset the earnings impact.

Oil prices push higher

It could be a good day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$87.96 a barrel and the Brent crude oil price has risen 1.5% to US$94.19 a barrel. Supply uncertainty has been boosting prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price may have been on fire recently but analysts at Bell Potter still see plenty of room for it to climb higher. According to a note this morning, the broker has retained its buy rating and lifted its price target on the lithium miner’s shares to $20.04. This implies potential upside of 29% for investors over the next 12 months.

Gold price lifts

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,736.0 an ounce. A softer US dollar and easing inflation bets gave the precious metal a boost.

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

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

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

More reading

• 2 ASX lithium shares leaping more than 9% on Monday
• Santos share price dips amid sell-off rumours
• The AGL share price has tumbled 16% in a month. What’s next?
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX lithium shares to buy

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

from The Motley Fool Australia https://ift.tt/Ww5PFBY

The MA Financial Group Ltd (ASX: MAF) share price endured a tough session on Monday, which included an unexpected trading halt. Shares in the company were 21.76% lower at $3.99 at the close today.

The MA Financial share price went tumbling, and an unprecedented velocity of shares traded on the red candles this morning before being halted. This afternoon, the company issued an ASX market update concerning media coverage around the speculated axing of the significant investor visa (SIV).

The company attempted to dispel investor fears in its update by reconfirming its FY22 guidance “for 30% to 40% underlying earnings per share growth on FY21”.

MA Financial also supplied other details to the market. Let’s cover the highlights.

What did the company say?

In reaffirming its guidance, the company described its business model as “highly diversified” with asset management, lending, corporate advisory and equities segments.

The company also responded to the description that its asset management business was almost equally funded by resident and non-migration investors. It noted that 63% of its assets under management (AUM) were non-migration related, which was a higher percentage than the 52.8% originally reported in the Australian Financial Review.

It provided some nuance to this side of the business, saying:

In the first eight months of FY22, 85% of gross fund inflows into the asset management business related to non-migration investors, with the remaining 15% sourced from clients under migration-related programmes.

In its response to the price query, the company noted that today’s price and volume action happened alongside the government’s review of its immigration system and SIV visa and that it had no other news or explanation for these movements.

MA Financial share price snapshot

The MA Financial share price is down more than 55% year to date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 8.25% over the same period.

The company’s market capitalisation is $702 million at the time of writing.

The post Down 21%, what happened to the MA Financial share price today? appeared first on The Motley Fool Australia.

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

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

More reading

• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Why did the MA Financial share price just crash 20% before being halted?
• 3 ASX 300 financial shares climbing on earnings updates
• Why these 2 ASX shares rocketed 40% last month

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

from The Motley Fool Australia https://ift.tt/6UIrwMR

The Tyro Payments Ltd (ASX: TYR) share price dropped by more than 5% today. It was reported that the potential suitor of the payments business, Potentia Capital Management, has been trying to get shareholders to accept its offer.

For readers who didn’t see it last week, Tyro received an “unsolicited, non-binding and indicative proposal”. The offer was from a consortium of private investors, led by Potential Capital Management. The offer was $1.27 per share, with the option for shareholders to receive shares in a private Tyro business.

Potentia advised that it has entered into a voting and acceptance deed with Mike Cannon-Brookes’ Grok in relation to its 12.5% shareholding in Tyro.

The Tyro board rejected the offer, indicating that it significantly undervalued Tyro and that it’s highly opportunistic given the offer price is “substantially below” where the Tyro share price has traded in the last year. It pointed out that the company has attractive growth prospects as it increases its market share. The company said it’s expecting to achieve strong and improving operating leverage in the medium-term.

What happened today?

The Australian reports that Potentia has been trying to convince shareholders to accept the takeover bid. It reported that Cannon-Brookes wants to be a co-owner of Tyro if a sufficiently better bid doesn’t come in.

The newspaper reported that other shareholders are unlikely to accept the deal because of how quickly the offer was rejected.

Morgan Stanley analysts think that an offer of between $2 to $2.50 would be the “going rate” for similar companies. Don’t forget, the company’s initial public offer (IPO) price was $2.75 per share. So the offer price represented an offer of less than half.

Tyro Payments share price snapshot

Over the last month, Tyro shares have risen by around 30%. This rise came after the Potentia bid.

The broker UBS has a buy rating and a price target of $1.80 on the business after the initial takeover bid came in. That represents a rise of more than 30%, if the broker ends up being right.

The post Tyro share price dips amid Potentia pressure rumours appeared first on The Motley Fool Australia.

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

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

More reading

• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Tyro share price climbs another 10%. Could a fresh takeover bid be on the horizon?
• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?
• Tyro share price rallies 31% following rejected takeover bid
• 2 heart-breaking ASX shares finally turning it around: Morgans

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

from The Motley Fool Australia https://ift.tt/oIMfpl0