The Lake Resources NL (ASX: LKE) share price is rocketing after the company revealed its Kachi Project’s demonstration plant has already produced at-spec lithium product.

The Lake Resources share price is soaring 10.38% on the back of the news. It’s currently trading at $1.17.

Let’s take a closer look at today’s news from the S&P/ASX 200 Index (ASX: XJO) lithium developer.

Lake Resources share price surges on Kachi update

The Lake Resources share price is rocketing on news of a major milestone at the company’s Kachi Project.

It’s now processing Kachi brines and has already delivered at-spec product in initial test work as optimisation continues.

Construction of the plant, as well as wet and dry commissioning, took place in September and October.

The ASX 200 lithium favourite is partnering with Lilac Solutions to provide the tech used by the demonstration plant.

The first samples of lithium chloride from the project should be shipped for conversion into lithium carbonate within a fortnight.

Commentary from the partners

Lilac CEO David Snydacker commented on the “excellent early results” released today, saying:

Just one month after the start of wet commissioning, we are already achieving 80% lithium recoveries even as we complete the commissioning process and increase recoveries.

We are excited to expand our collaboration with the Lake team as we work to fast-track commercial-scale production of lithium carbonate.

Lake expects that, following the samples’ conversion into lithium carbonate, the product will be qualified by a tier one battery maker to validate its specifications.

Lake CEO David Dickson was “delighted” by the early success and is now focused on future steps. Dickson said:

We look forward to seeing the test work move into to steady state and then for the process to be validated by Hatch so that work on the DFS can be completed.

Meanwhile, Lake Resources chair Stu Crow heralded Lilac’s technology as one that will disrupt the battery materials industry. That’s due to its scalability, low cost, ESG benefits, and consistent product quality.

Today’s gain sees the Lake Resources share price 15.84% higher than it was at the start of 2022. It has also gained 25.8% since this time last year.

Comparatively, the ASX 200 has fallen 6% year to date and 4.4% over the last 12 months.

The post Lake Resources share price leaps 10% on ‘excellent early results’ 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

• Which ASX 200 mining shares managed to dig up gains in October?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the Dreadnought share price struggling despite successful drill program

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

from The Motley Fool Australia https://ift.tt/VEqA4RM

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.

What happened

Shares of Tesla (NASDAQ: TSLA) were up by more than 3% soon after the market opened Tuesday, but as of 1 p.m. ET, the shares were up by about 0.8%. The stock moved higher after a Reuters article reported that the electric vehicle leader could begin mass production of its Cybertruck by the end of 2023. 

Also boosting Tesla’s stock price was a report Monday from JPMorgan Chase‘s top market strategist predicting that the Federal Reserve could be nearly finished with its interest rate hikes. Rising interest rates have weighed on tech stock valuations throughout 2022, and Tesla is down 35% year to date. 

So what

CEO Elon Musk previously said that the Cybertruck could be the company’s “best product ever.” He originally unveiled the vehicle in 2019, but delays have pushed back its production. On the third-quarter earnings call in October, Musk said the company was in the “final lap” with the Cybertruck. 

The matter of securing enough batteries had been one concern as the company looked to manufacture the truck at production scale, but Musk said in January that batteries likely wouldn’t be the limiting factor. Instead, he noted, the main issue was that it would “take some time to work through” all the advanced technology going into it. He also pointed to the challenge of making the vehicles available at affordable prices. It appears Tesla may have solved those issues.

Now what

Musk wants his company to manufacture at least 250,000 Cybertrucks per year, but it will take time to bring production up to that level. For perspective, Tesla produced more than 1.2 million vehicles over the last four quarters across its four currently available models. 

The arrival on the market of perhaps the most highly anticipated vehicle in years, along with plateauing interest rates, could be huge catalysts for the top electric vehicle maker in the near term. 

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

The post Why Tesla stock was up this morning 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

• Does the Vanguard International Shares ETF contain ‘good’ quality companies?
• The Core Lithium share price surged 25% in October. Here’s why
• 2 Elon Musk quotes from Tesla’s earnings call that investors should see
• Musk finally swoops on Twitter and casts CEO out of the nest. What now?
• Why Tesla stock topped the market on Thursday

John Ballard has no position in any of the stocks mentioned. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase and Tesla. 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.

from The Motley Fool Australia https://ift.tt/x5Ro30b

The Rio Tinto Limited (ASX: RIO) share price is having a decent start to the day on Wednesday.

In morning trade, the mining giant’s shares are up 2% to $92.20.

Why is the Rio Tinto share price pushing higher?

As well as getting a boost from a recovering iron ore price, the Rio Tinto share price is pushing higher today after the company announced a potentially positive development in its quest to acquire Turquoise Hill.

Rio Tinto is currently trying to acquire the 49% stake in the copper miner that it does not already own for C$43.00 per share. If successful, it will increase Rio Tinto’s stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.

According to the update, the company has entered into agreements with Pentwater Capital Management and SailingStone Capital Partners that will see the two parties withhold their votes at next week’s special meeting and exercise their dissent rights in respect of the arrangement.

Rio Tinto has also agreed to increase the dissent condition under the arrangement agreement from 12.5% to 17.5% of Turquoise Hill shares outstanding.

In addition, the mining giant revealed that the parties have agreed that the dissent proceedings and certain other claims shall be conducted by arbitration, and the securityholders will be paid C$34.40 of the consideration following the completion of the arrangement. The remaining consideration will be payable following the final determination of the arbitration.

Finally, Rio Tinto once again stressed that its offer of C$43.00 per share for Turquoise Hill is its best and final offer.

The post Why Rio Tinto share price pushing higher 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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX 200 mining shares managed to dig up gains in October?
• Could ASX 200 iron ore shares be heading for more pain?
• Why CBA is much more upbeat on Rio Tinto shares than the government
• Why is the Rio Tinto share price in the doldrums today?
• Why is the Fortescue share price surging 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.

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

We’re nearly at the end of 2022. October saw heightened volatility as investors came to grips with the latest economic numbers. What did it mean for S&P/ASX 200 Index (ASX: XJO) mining shares?

Miners can be impacted by a number of different things, including changes in the relevant commodity price, sentiment about what direction the prices are headed, the company’s ability to maintain or grow its production, and so on.

General market volatility can also hurt the valuation of businesses in the mining sector.

Iron ore miners

The iron ore ASX shares make up the biggest resource position in the ASX 200, so I’ll focus there.

Over October, the BHP Group Ltd (ASX: BHP) share price fell by 3%.

Next, the Rio Tinto Limited (ASX: RIO) share price dropped by 5.6%.

The Fortescue Metals Group Limited (ASX: FMG) share price declined by 12.6%.

The Champion Iron Ltd (ASX: CIA) share price retreated 3%.

Interestingly, the Mineral Resources Limited (ASX: MIN) share price went up by 11.2%. However, this may have been due to the lithium side of the business rather than the iron ore side.

The iron ore price has continued to head lower as demand from China continues to be dampened by various factors with lower steel demand, an uncertain housing (including construction) situation and ongoing COVID-19 lockdowns.

Quarterly production reports were released for the three months to September 2022, including Fortescue, BHP and Rio Tinto. Of the three, Fortescue’s may have been the strongest because it delivered a record for production.

Lithium

ASX lithium shares continue to benefit from strong (and strengthening) lithium prices.

For example, Pilbara Minerals Ltd (ASX: PLS) revealed that it sold two different cargoes of lithium during the month.

On 18 October it sold 5,000 dry metric tonnes (dmt) for $7,100 per dmt. Then, a week later on 24 October it sold another 5,000 dmt for $7,255 per dmt.

It may be no surprise to learn that the Pilbara Minerals share price increased by 11.6% over October.

Looking at some of the other names for the month, the Allkem Ltd (ASX: AKE) share price climbed 4.3% and the Core Lithium Ltd (ASX: CXO) share price rose by 25%.

Other miners

Let’s also look at some of how the other largest ASX 200 mining shares performed.

Over the month, the Newcrest Mining Ltd (ASX: NCM) share price rose by 2.5%.

The South32 Ltd (ASX: S32) share price declined by 0.8% in October.

The Lynas Rare Earths Ltd (ASX: LYC) share price went up by 10%.

Last month, the IGO Ltd (ASX: IGO) share price climbed by 11.6%.

The Northern Star Resources Ltd (ASX: NST) share price also went up by 11.6%.

Overall it was a good month for most miners, except the iron ore miners.

The post Which ASX 200 mining shares managed to dig up gains in October? 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 Rio Tinto share price pushing higher today?
• Here’s the Fortescue dividend forecast through to 2027
• Brokers name 2 ASX 200 dividend shares to buy
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group 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/fBHmErU

The Whitehaven Coal Ltd (ASX: WHC) share price has tumbled in recent times, hitting its lowest point in nearly a month on Monday.

Indeed, it’s dumped 11.7% since this time last week. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 2.6%.

The Whitehaven share price closed Tuesday’s session at $9.15.

So, what might be going wrong with the ASX 200 coal share? Let’s take a look.

What might be weighing on Whitehaven shares?

The Whitehaven Coal share price has been struggling over the last week amid falling coal prices, bearish experts, the company’s annual general meeting (AGM), and earnings from fellow coal producers.

Let’s start with the Whitehaven AGM, hosted last Wednesday.

There, shareholders and management welcomed further on-market share buybacks – aiming to snap up an extra 25% of the company’s outstanding stock. That’s on top of the 10% already secured through a previous buyback.

But optimism from such capital return activities might have been balanced by the quarterly earnings of coal peer Coronado Global Resources Inc (ASX: CRN), released on Monday. While the ASX 200 coal miner is enjoying a record year, falling commodity prices appear to be kicking in.

Coronado’s revenue fell 15% quarter-on-quarter as its average realised coal price dropped 21% to US$253 per tonne.

Coal prices have come off their September record high – which saw it reach approximately US$450 a tonne – to trade near US$350 right now. And that’s tipped to continue dropping, though experts’ opinions differ when it comes to how fast it might fall.

And some appear to wonder if the Whitehaven share price will follow the path worn by the commodity’s value.

Alto Capital’s Tony Locantro tips the stock as a sell, saying, courtesy of The Bull:

The coal sector has outperformed the market … [Whitehaven] shares have risen from $2.75 on January 5 to close at $9.83 on October 27. Investors may want to consider locking in a profit.

Not all are so bearish, however. Goldman Sachs recently upped its price target on the stock to $9.70, slapping it with a neutral rating.

The broker tips demand for coal to continue in the near term, driving volatility in the Whitehaven share price.

The post Down 12% in a week, why Whitehaven shares are losing their steam appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Why the Whitehaven Coal share price could outperform this government forecast
• 5 ASX shares that have crushed the market this year
• If CBA is right, ASX 200 coal shares should keep the good times rolling
• Why is the Whitehaven Coal share price rebounding strongly today?

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

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

Over the last few years, the Fortescue Metals Group Limited (ASX: FMG) dividend has been among the most popular on the Australian share market.

And it isn’t hard to see why. Thanks to booming iron ore prices, the mining giant has been in a position to reward its shareholders handsomely.

However, with iron ore prices softening and the company planning to spend billions of dollars to decarbonise its Pilbara operations, will the Fortescue dividend outlook become ugly?

What is the Fortescue dividend outlook?

According to a note out of Goldman Sachs, its analysts believe the good times will be over for the Fortescue dividend after FY 2023.

After paying a 150 US cents per share dividend in FY 2022, the broker is expecting this to reduce to a relatively attractive 97 US cents (A$1.51) in FY 2023. Based on the current Fortescue share price of $15.50, this will mean a fully franked yield of 9.7%.

However, in FY 2024, Goldman is expecting the company’s decarbonisation spending to kick in and lead to a dividend cut to 40 US cents (62 Australian cents). This represents a fully franked 4% dividend yield.

With the company’s decarbonisation spending due to go up another level in FY 2025, Goldman expects the Fortescue dividend to drop again. This time the broker is expecting a dividend of 33 US cents (52 Australian cents) for the year. This will mean a yield of 3.35% for investors.

Finally, Goldman Sachs is forecasting the Fortescue dividend to then ease to 32 US cents (50 Australian cents) in both FY 2026 and FY 2027. This will mean a modest 3.2% dividend yield for investors in both years.

In light of this, based on these forecasts, there are two things that could happen to the Fortescue share price. One is that investors accept lower yields and its shares continue to trade at current levels. The other is the Fortescue share price retreats to lower levels in the coming years to maintain its current above-average yield.

Time will tell which happens.

The post Here’s the Fortescue dividend forecast through to 2027 appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why did the Fortescue share price crash 13% in October?
• Could ASX 200 iron ore shares be heading for more pain?
• Why Brainchip, Bubs, EML, and Fortescue shares are falling 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.

from The Motley Fool Australia https://ift.tt/DFx651m

If you’re looking for dividend options, then you may want to check out the two that brokers rate as buys.

Here’s what analysts are saying about these ASX 200 dividend shares right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX 200 dividend share that brokers rate highly is the Charter Hall Social Infrastructure REIT.

As its name implies, it is a real estate investment trust that invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is very bullish on the company and has a conviction buy rating and $4.13 price target on its shares. It was pleased with the recent purchase of a 25% stake in Geoscience Australia property in Canberra. Goldman commented:

In our view, the transaction demonstrates the fund is executing on its strategy to broaden its investments in social infrastructure and its ability to source quality, accretive assets leased to strong tenant covenants. Furthermore, despite the challenging macroeconomic backdrop, childcare fundamentals are solid, and we remain attracted to CQE’s resilient underlying cash flows.

In respect to dividends, Goldman is expecting dividends of 17.2 cents per share in in FY 2023 and then 18 cents per share in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.51, this will mean yields of 4.9% and 5.1%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that brokers are positive on is mining giant South32. It is a mining giant with a focus on metals that are critical to the transition to a low-carbon world.

Morgans is a fan of the company and has an add rating and $5.30 price target on the miner’s shares. It commented:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

As for dividends, the broker is expecting fully franked dividends per share of 22.7 cents in FY 2023 and 21.2 cents in FY 2024. Based on the current South32 share price of $3.72 this will mean yields of 6.1% and 5.7%, respectively.

The post Brokers name 2 ASX 200 dividend shares to buy 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

• Down 28% in 5 months, is the South32 share price a bargain buy?
• Why is the South32 share price copping a caning today?
• Goldman Sachs says these are the ASX dividend shares to buy
• 2 ASX mining shares ready to rocket: experts
• Morgans names the ASX 200 dividend shares to buy

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

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

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, Forager Funds Management portfolio manager Alex Shevelev evaluates three ASX shares going for cheap right now.

Cut or keep?

The Motley Fool: Let’s take a look at three ASX shares that have plunged this year, to see if you think each of those fallen stars are now a bargain or if you’d keep away.

The first one is online marketplace Redbubble Ltd (ASX: RBL), which has fallen a horrendous 85% in 2022.

Alex Shevelev: There’s a lot of fallen stars out there, but that’s been one of the most significant of those fallen stars. 

It sells products to consumers with designs by independent artists. It’s been a very volatile ride for long-term Redbubble shareholders — $1 pre-COVID, to 50 cents in the early stages of the COVID market panic, to $7 during the online COVID buying boom, and now back to 50 cents. 

It’s really very uncertain as to whether this business is actually going to be able to earn the required margins in what is actually a very competitive space. And the recent first quarter update didn’t do the business many favours. There was $17 million worth of losses at the EBIT line and lower year-on-year revenue, which is quite problematic.

MF: Some investors might see that it has annual revenue of half a billion dollars but the market cap‘s now down to $135 million, and consider it a very cheap valuation. But you reckon it might be a bit of a value trap?

AS: Well, I think it is very important that whatever the level of revenue is that the business can structurally achieve free cash flows from that revenue. And in Redbubble’s case, that is not something that they have been able to successfully do outside of some very buoyant COVID periods.

MF: Next one is Viva Leisure Ltd (ASX: VVA), which has halved this year. What do you reckon about that one?

AS: That’s right. So, this is a gym group and it’s hardly had a break during its listed life, given the closures during COVID over the last couple of years. 

During that period, though, they’ve been opening new locations, they’ve been acquiring other locations. It now has 150 locations, gyms around the country. It’s moving closer to 190 by financial year end as well, to make it a significant gym group. 

We’ve seen a lot of inflation over the last six to nine months. The business has been able to pass that inflation onto its members by increasing membership prices, which in the context of its business is actually [a] very, very good achievement. 

The company’s given guidance for this current financial year, the margins in that guidance are actually holding up quite well. So, 21-odd per cent is a good outcome for the business and that margin should grow from that point. 

As it improves its margins, as it continues to get growth on locations and revenue, they will actually garner more investor attention.

MF: Fantastic. The third one is sports tech provider Catapult Group International Ltd (ASX: CAT), which has also almost halved in share price year to date. 

AS: This is a business that provides wearables and video analytics to professional sports teams. It’s also very sticky, very low-churn revenue, and it’s a pretty small relative cost for a very useful product for teams. 

The wearables part of the business, it’s been growing 30-odd per cent for years. Last year, Catapult made an acquisition in advanced video analytics, the business was called SBG. And that’s really going to help drive the video side of the business that had been lagging previously.

It’s been free cash flow generative before, but spent money over the last couple of years integrating those two products together into something that combines the wearables and the video analytics and actually looks to be a first for that market, which is very exciting. 

From next year, the company has said that it’s going to be free cash flow positive, if only slightly. But that will put it on good footing because from that point, we’d still be expecting their preferred metric of revenue to be growing 20%-plus over the next couple of years with some good operating leverage. 

So that’s another one where a value should flow through and be more clear over the next few years.

MF: Your fund holds both Catapult and Viva at the moment?

AS: We hold both of those, yes.

The post 2 ASX shares to buy that have HALVED in price this year: fund manager appeared first on The Motley Fool Australia.

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

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

More reading

• Here are 3 ASX All Ords shares that are off to the races today
• Down more than 80% in 2022, are these ASX All Ords shares now screaming bargains?
• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Why Bapcor, BrainChip, Evolution Mining, and Redbubble shares are sinking
• Why did this ASX All Ordinaries share just crash 26%?

Motley Fool contributor Tony Yoo has positions in REDBUBBLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Group International Ltd and REDBUBBLE FPO. The Motley Fool Australia has positions in and has recommended Catapult Group International 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/80WQtPx

There is no getting around the fact that ASX growth shares have performed terribly this year.

However, over the longer term, as the market works its way through entire economic cycles, a business can grow sufficiently to eventually put investors ahead.

Some ASX shares involved in health technology are prime examples. 

Those companies have a foot each in two sectors that have been hammered in 2022. But a long-term perspective might prove fruitful, as is the case with these two stocks:

Long-term growth and short-term defence

Imaging software provider Pro Medicus Limited (ASX: PME) has seen its shares dive 11.5% year to date.

However, over the past five years, its shareholders have been celebrating a remarkable 727% rise in their investments, excluding dividends.

For Medallion Financial Group private client advisor Stuart Bromley, the stock is both a long-term growth story and a short-term defensive holding.

“We believe future growth justifies a relatively high price-earnings ratio,” Bromley told The Bull.

“Existing clients are renewing contracts, providing Pro Medicus with defensive, long-term revenues.”

In recommending the ASX share as a buy, Bromley noted the 2022 financial year saw underlying revenue increase 38% to $93.5 million.

“This medical imaging technology business is taking impressive market share, primarily at the top end of the big and lucrative US market.”

Admittedly other professionals are more lukewarm on Pro Medicus than Bromley. According to CMC Markets, eight out of 13 analysts currently rate the health tech stock as a hold.

New CEO from big pharma

The Polynovo Ltd (ASX: PNV) share price has plunged more than 8% since mid-August.

But, similar to Pro Medicus, it has rewarded investors handsomely over the long term. The ASX share has rocketed up 456% over the past five years.

“The company provides dermal regeneration solutions via its NovoSorb biodegradable polymer technology,” said Bromley.

“The company posted unaudited record first quarter sales of $12.5 million in fiscal year 2023.”

For Bromley, a big catalyst and endorsement for Polynovo shares came a few months ago.

“We’re encouraged that Swami Raote, a former US Johnson & Johnson (NYSE: JNJ) veteran of 30 years, was appointed chief executive in July,” he said.

“Raote brings a lot of connections to Polynovo.”

The advisor admitted Polynovo has had a long run as a cash-burning business, but he can see the light at the end of the tunnel.

“Breakeven is now closer for this business, with a net loss after tax of just $1.19 million in fiscal year 2022.”

Bromley’s peers are more convinced about this ASX share, with four out of five analysts currently surveyed on CMC Markets recommending Polynovo as a strong buy.

The post Two 5-bagger health tech ASX shares ready to rocket again: expert appeared first on The Motley Fool Australia.

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

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

More reading

• If you invested $5,000 in each of these ASX shares 10 years ago, you’d be a millionaire today
• Guess which ASX All Ords share turned a $30,000 investment into $1 million
• How to find wealth compounders inside the ASX 200 right now
• The ASX All Ords share that’s a better, cheaper buy than Polynovo: Wilsons
• This ASX 200 share turned $10k into $1 million in just 10 years

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 positions in and has recommended POLYNOVO FPO and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended Pro Medicus 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/xR4J025

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) stormed higher after the RBA raised rates in line with expectations. The benchmark index rose 1.65% to 6,976.9 points.

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

ASX 200 expected to edge lower

The Australian share market looks set for a subdued day on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower this morning. In late trade on Wall Street, the Dow Jones is down 0.25%, the S&P 500 is down 0.4%, and the Nasdaq is down 0.8%.

Oil prices higher

Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices charged higher. According to Bloomberg, the WTI crude oil price is up 2.1% to US$88.36 a barrel and the Brent crude oil price has risen 2% to US$94.64 a barrel. A softer US dollar offset Chinese demand concerns.

Iron ore price steadies

The good news for mining giants BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) is that after some very heavy declines recently, the iron ore price has started to steady. According to Fastmarkets, the spot iron ore price has recovered 0.8% to US$80.15 a tonne.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.6% to US$1,650.7 an ounce. Gold rose thanks to softness in the US dollar.

Domino’s AGM

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could be one to watch today. The pizza chain operator is holding its annual general meeting and could provide a trading update to the market. Last week, Morgans commented: “The AGM next week will update on sales growth rates and store rollout. October 2022 trading will look better than the 3 months prior and may mark a long-awaited turning point.”

The post 5 things to watch on the ASX 200 on Wednesday 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 did Santos and Woodside shares outperform the ASX 200 today
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the Dreadnought share price struggling despite successful drill program
• Why is the Zip share price up 5% on Tuesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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/92sTKIr