The Imugene Limited (ASX: IMU) share price is in the red today despite a clinical trial update.

Imugene shares are currently trading at 25.75 cents, a 0.96% fall. For perspective, the S&P/ASX 200 Health Care Index (ASX: XHJ) is sliding 0.5% today. The S&P/ASX 200 Index (ASX: XJO) is also falling 1.88% today.

Let’s take a look at what Imugene reported to the market today.

What’s going on?

Imugene is working on immunotherapies to eradicate tumours in cancer patients. The company is currently conducting a phase one clinical trial of Vaxinia, a cancer-killing oncolytic virus (CF33-hNIS).

Today, Imugene advised it is escalating the dose in patients treated with Vaxinia.

After the first three patients received the lowest dose of Vaxinia, the Cohort Review Committee (CRC) agreed Vaxinia is safe, with “no dose-limiting toxicities”. The CRC also found there were “no serious adverse reactions” after reviewing all the safety and tolerability data for all patients.

With this in mind, Imugene will now escalate the dose to mid-dose level for the second Vaxinia phase one cohort of patients.

One patients have safely been treated with the lowest doses of Vaxinia while new patients will receive the treatment in combination with immunotherapy y pembrolizumab. Imugene expects this will take place once the second cohort has been cleared.

Commenting on the news, Imugene CEO and managing director Leslie Chong, said:

Our VAXINIA trial has made headway since commencement in May.

We expect this to continue as site activation and patient recruitment builds momentum and
we look forward to updating our stakeholders as this positive progress continues throughout the year

Imugene is conducting the trial in partnership with the City of Hope in Los Angeles, USA. In May, the first patient was dosed as part of the clinical trial.

The team is aiming to recruit 100 patients at 10 trial sites in Australia and the USA.

Imugene share price snapshot

The Imugene share price has fallen 36% in the year to date. In the past month, it has climbed 5%.

For perspective, the ASX 200 Health Care Index has fallen nearly 11% in the past year.

Imugene has a market capitalisation of about $1.5 billion based on the current share price.

The post What’s going on with the Imugene share price on Thursday? 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 the top 10 ASX 200 shares today
• Net loss doubles in FY22, so what’s with the Imugene share price today?
• Here are the top 10 ASX 200 shares today
• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Here are the top 10 ASX 200 shares today

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

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

Resources companies were the big winners among ASX shares in the first half of this year, before recession fears brought them down a peg.

So now there are some mining stocks selling for a discount that still have excellent prospects.

Let’s take a look at three such examples as named by experts this week:

A top business with cash to burn

The Rio Tinto Limited (ASX: RIO) share price has fallen more than 21% since 8 June.

Baker Young managed portfolio analyst Toby Grimm admits the recent half-year results underwhelmed the market.

“Some investors may have been disappointed with the conservative interim dividend of $US2.67 a share,” he told The Bull.

“But the global miner has a top core business with excess cash on its balance sheet.”

Grimm said that his team expects “greater investor returns” when the full-year results are revealed.

“In our view, recent share price weakness presents a buying opportunity.”

Even after all that, Rio pays out a pretty juicy dividend yield of around 10%.

Everyone loves this copper mine

Fat Prophets chief executive Angus Geddes reckons new copper producer AIC Mines Ltd Australia (ASX: A1M) is a buy.

The company bought the Eloise mine in North Queensland from FMR Investments for $27 million late last year.

“It has the capacity to produce between 45,000 and 50,000 tonnes of copper and gold concentrate a year,” said Geddes.

“Current mine life is about eight years. AIC continues to improve near-mine ore deposits, adding more value to the Eloise acquisition.”

AIC shares are down about 9.5% for the year so far.

Geddes isn’t the only one hot on the mining outfit at the moment.

According to CMC Markets, all four of Argonaut, Jefferies, Ord Minnett and Shaw and Partners rate AIC as not just a buy, but a strong buy.

Money to swallow up smaller players

BHP Group Ltd (ASX: BHP)’s share price shot up last month after it announced a fully franked dividend that would take the yield up to a stunning 11%.

But the stock has cooled off 5% in the past week, opening up an opportunity for shrewd investors.

Marcus Today analyst Layton Membrey said the latest financials were “strong”.

“The outlook is positive. BHP has a strong balance sheet and cash position to chase growth.”

Even though BHP’s attempt to acquire OZ Minerals Limited (ASX: OZL) fell over, Membrey feels like that’s not the end of the story.

“The proposal shows BHP has the firepower for suitable acquisitions. Keep an eye on BHP’s news flow.”

The post 3 mining ASX shares ripe for buying now: experts 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 is the BHP share price sinking 8% today?
• Do Woodside shares still have more upside to come from the company’s BHP purchase?
• 5 things to watch on the ASX 200 on Thursday
• How does the Rio Tinto dividend stack up against what BHP is offering?
• What’s going wrong for ASX 200 iron ore shares on Wednesday?

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/3cPRn9j

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 

The crypto market was moving higher for most of the day on Wednesday despite the fact that the stock market was moving lower. There wasn’t any major news driving token prices upward, but there were small steps toward mainstream crypto adoption. Credit Suisse disclosed in a filing that it held $31 million in “digital assets” for clients last quarter and Binance froze a wallet related to a Russian gun manufacturer, which shows even the biggest exchanges are complying with international sanctions.

As of 1 p.m. ET, shares of Coinbase (NASDAQ: COIN) were up 1.4% for the day after having climbed by as much as 5% in early trading. Ethereum (CRYPTO: ETH) was up 4.2% in the last 24 hours and NEXO (CRYPTO: NEXO) was up by 7.3%. 

So what 

The biggest news of the day was that crypto lending platform Nexo announced it was authorizing a $50 million buyback plan for its native crypto token. The company authorized a $100 million buyback plan in November; this authorization adds on to that. 

Nexo has been in discussions with investment bankers about the possibility of it acquiring distressed crypto companies like Celsius Network, Voyager Digital, and BlockFi, or their assets. Management of Nexo said the buyback authorization was intended to show that the company has a “solid liquidity position.”

It’s also possible Nexo could do what it called “token mergers,” which would be an innovation in the crypto space. Nonetheless, Nexo is telling the market that it is in a strong financial position and that news is being received well right now. 

Lending has become a difficult business model in cryptocurrency, with companies balancing on-chain and off-chain risks that are evolving quickly. During the collapse of Three Arrows Capital, on-chain lending held up well because collateral could be seized if loans weren’t repaid as contracts stated. Off-chain lending became more problematic because the risks weren’t well understood by counterparties who thought their assets were safe. Nexo has navigated this space so far, and now it’s trying to consolidate power before the next crypto boom. 

Now what 

Wednesday’s moves upward were mostly driven by volatility in the crypto market and shouldn’t sway your long-term investment thesis. Values are moving higher or lower daily on little more than the market’s whims. 

What I do take from the day’s news is that a company like Nexo being bullish is a signal that the worst of the 2022 crypto lending crisis is behind us. It seems that the industry went through a rapid process of exposing risk and crushing the companies that didn’t handle their own risks well. 

Ethereum’s “Merge” — scheduled to occur in a little over two weeks — continues to be a hot topic as well. Energy usage on Ethereum will fall by about 99% after the Merge, but it’s not clear if transactions on the blockchain will be any faster or cheaper, which is really what will be needed to drive growth. Coinbase has a vested interest in Ethereum’s success because it has a big staking business and has built an NFT platform on that blockchain. 

While Wednesday’s volatility has been helpful to values, the market could turn downward tomorrow. That’s why I’m holding tight to my assets and waiting for the long-term thesis of crypto growth and innovation to play out. 

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

The post Why Ethereum and other cryptos jumped 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(“#0095C8”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Why Bitcoin, Ethereum, and Dogecoin are falling today
• 1 cryptocurrency to buy and hold forever
• Here’s why the Bitcoin price just dipped back below US$20,000
• This company profited $2.6 billion from crypto. What is it investing in now?

Travis Hoium has positions in Coinbase Global, Inc. and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

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

The Flight Centre Travel Group Ltd (ASX: FLT) share price outperformed the S&P/ASX 200 Index (ASX: XJO) yesterday, but can it keep up this momentum for the rest of September?

Wednesday’s 3.17% gain may have had something to do with broker Goldman Sachs recently commenting on the Flight Centre share price, as covered by my colleague, James Mickleboro.

In addition, fellow ASX travel share Webjet Limited (ASX: WEB) yesterday disclosed a positive trading update, which suggests the battered travel industry is bouncing back.

Let’s take a closer look at what brokers had to say about Flight Centre.

Brokers’ thoughts on Flight Centre

Based on a note from Goldman Sachs, the broker was quite surprised by the strong recovery in Flight Centre’s earnings in Australia and New Zealand.

However, the broker expected more growth in America, which was impacted by a more unfavourable mix of flights.

Goldman Sachs held onto its neutral rating with a reduced price target of $19.60. That implies a potential upside of almost 15%.

In a further possible boost for the Flight Centre share price, it appears Goldman Sachs considers the travel industry as a whole is heading in the right direction.

According to a note out of the investment bank from this morning, it believes the Webjet share price can continue its upward trajectory after keeping its buy rating at a reduced price target of $6.80. That suggests a potential upside of 23% over the next 12 months.

Webjet also flagged in its trading update that it expects earnings in FY24 to exceed levels seen pre-pandemic. It anticipates broader travel market activity is expected to return to 2019 levels.

Another broker, Morgans, was also positive on Flight Centre. It holds a lower price target at $18.25, supported by a hold rating. This broker believes the Flight Centre share price is fair given the risks the travel agency is facing.

It was also announced yesterday that substantial shareholder JP Morgan Chase increased its shareholding of Flight Centre. So, this may also have contributed to the uptick in the Flight Centre share price.

Additionally, the travel agency’s shares gained 3.52% on Tuesday amid rumours the company is considering the acquisition of US travel management company Altour International.

Flight Centre share price snapshot

At the time of writing, Flight Centre shares are down 1.12% to $17.70.

In the last year, it has risen by almost 4% and is up 3% in the past month. The ASX 200 has fallen by 9% in the last year and is down around 2% in the last month.

The overall sentiment towards the Flight Centre share price appears to be becoming more positive. However, a lot of this optimism is being held back with measured caution, given how quickly things can change.

Travel agencies are more exposed to external factors than the average business, making it more difficult to forecast future earnings. But they can be sound cyclical plays when optimism hits rock bottom — it’s a matter of assessing when the bottom is, though.

Flight Centre has a market capitalisation of around $3.58 billion.

The post What’s the outlook for the Flight Centre share price in September? 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 is the Qantas share price beating the ASX 200 on Wednesday?
• Flight Centre share price up amid M&A rumours
• These are the 10 most shorted ASX shares
• Here’s what brokers are saying about the Flight Centre share price
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Raymond Jang 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 Goldman Sachs. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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/aUTVC3N

The AGL Energy Limited (ASX: AGL) share price is sliding this morning, down 2.3%.

AGL shares closed yesterday trading for $7.68 and are currently trading for $7.50 apiece.

The wider market is under some selling pressure again today, with the S&P/ASX 200 Index (ASX: XJO) down 2%.

But there’s an extra headwind hitting AGL shares today.

AGL share price slides as stock trades ex-dividend today

Yesterday was the last day to buy AGL shares to receive the ASX 200 energy stock’s final dividend payment. That’s putting some extra pressure on the AGL share price today, as investors buying today will not receive that dividend payment.

The electricity and gas retailer reported its full-year results for the 2022 financial year on 19 August.

With underlying profits after tax down 58% from FY21 to $225 million, management declared a final unfranked dividend of 10 cents per share.

That works out to a payout ratio of 75% of AGL’s underlying profit after tax. But as you’d expect with tumbling profits, the final dividend is down from the 34 cents per share paid out last year.

AGL’s Dividend Reinvestment Plan (DRP) will not operate for the final dividend. Management stated that, “It is our intention to reinstate the DRP when circumstances allow.”

The dividend will be paid on 27 September.

Total FY22 dividend payments came out to 26 cents per share. At the current AGL share price that works out to a trailing yield of 3.5%.

What’s next for the company’s dividends?

Forecasting what income investors could look forward to from AGL in FY23, Morgans expects the energy retailer to pay out total dividends of 30 cents per share. That’s up 4 cents per share from this year.

Morgans has an $8.73 target for AGL shares.

AGL share price snapshot

Despite today’s slide, the AGL share price remains up 17% in 2022, far outpacing the 10% year-to-date loss posted by the ASX 200.

The post Why is the AGL share price on the slide 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

• Natural gas is up 110% this past year. What does this mean for the AGL share price?
• 3 popular ASX 200 shares going ex-dividend tomorrow
• Could AGL shares really offer 9% upside and rising dividends in FY23?
• Broker tips AGL share price to leap higher
• Is the AGL share price in the buy zone following the company’s latest results?

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

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

The Lynas Rare Earths Ltd (ASX: LYC) share price has had a rough trot of late. It has tumbled 24% from its April peak of $11.59.

At the time of writing, the Lynas share price is trading at $8.805, 0.8% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is falling 2% right now.

Has the market turned on the Lynas share price following last year’s mammoth 155% surge?

Let’s take a look.

Has the Lynas share price’s moment in the sun ended?

The Lynas share price was one of the 2021 stars of the ASX 200, launching 155% over the course of last year. But the market appears to have turned on the rare earths giant in 2022.

And Fat Prophets founder and CEO Angus Geddes says he knows why.

Geddes told The Bull that the stock’s monumental rise was driven by soaring rare earths prices. But the value of rare earths has begun to ease amid inflationary pressures.

On top of that, he said the company’s sales are slowing while its costs are rising. Its cash costs reportedly jumped 35% to $341 million last financial year.

As my Fool colleague Tony Yoo reported last week, the company’s latest earnings saw its price-to-earnings (P/E) ratio more than halve.

The company sold 15,263 tonnes of rare earths oxide in financial year 2022, marking a 7% year-over-year fall. Meanwhile, its cost of sales lifted 15% to $348.4 million.

However, Lynas’ average realised price last financial year was $60.3 per kilogram – a 102% improvement – which saw its cash receipts lift 84% to $855 million. The company’s production volume also rose 1% to 15,970 tonnes.

If prices have eased as Geddes notes, Lynas’ bottom line may receive a notable dint with the impact potentially reverberating through to its share price. He has slapped Lynas shares with a sell recommendation.

But not all experts agree with the negative assessment.

Datt Capital chief investment officer Emanuel Datt said Lynas is “the gold standard” when it comes to producers of the minerals, as Yoo reported earlier this week.

The fundie also warned that China could restrict supply of rare earths, likely causing a global shortage that could see prices soar.

The Lynas share price is down 20% year to date. Though, it has gained 30% since this time last year.

Meanwhile, the ASX 200 has dumped 10% year to date and 9% over the past 12 months.

The post Down 24% since April, have investors fallen out of love with Lynas 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top ASX shares to buy in September 2022
• 5 ASX shares that could rocket from a rare earths crisis: expert
• Guess which ASX All Ords share rocketed 15% on a rare earths deal with Twiggy Forrest
• Lynas share price lifts off on rocketing FY22 profits
• Lynas share price on watch after 244% profit jump, doubling revenue

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/5kOMdFE

Fortescue Metals Group Limited (ASX: FMG) shares are an interesting investment consideration. The company is no longer just a simple iron ore miner. It’s planning to become a green energy giant through its division called Fortescue Future Industries (FFI). Hydrogen is a major part of the plans.

The company wants to become a “vertically integrated green energy and resources company”.

It’s investing in a range of renewable energy and new technologies so that its operations can become carbon neutral. It also wants to help heavy carbon-emitting industries like aviation and shipping to become net zero with green hydrogen and green ammonia.

Fortescue is investing heavily to make this happen. But when will it become a reality?

Fortescue Future Industries’ green hydrogen plans

By 2030, Fortescue wants FFI to be producing 15 million tonnes of green hydrogen per year, with further production growth after that.

Starting from zero with a new industry is a big task. Fortescue Future Industries has set up a large number of potential projects and partnerships all over the world.

One of the first key parts of the plan is building its green energy manufacturing centre in Gladstone, Queensland, where it will make a number of the items needed for its green revolution. It’s currently working on an electrolyser manufacturing facility, with first production expected in 2023.

The electrolyser facility isn’t making green hydrogen itself. But, electrolysers are an important part of the green hydrogen-making process.

In terms of green hydrogen production, the Australian Financial Review reported that FFI CEO Mark Hutchinson, said:

I think the first green hydrogen we produce is probably going to come out of Australia, exported to Germany. Starting off in Gibson Island in Queensland, I would say Queensland will probably be the first cab off the rank to be honest.

In FY22, FFI completed the first phase of studies with Incitec Pivot Limited (ASX: IPL) to convert the Gibson Island ammonia production facility in Queensland to instead be powered by green hydrogen. Negotiations are continuing to finalise the front end engineering design.

Why did Hutchison say that the production would be exported to Germany? It’s because Fortescue Future Industries has signed a memorandum of understanding with E.ON, one of Europe’s largest operators of energy networks and energy infrastructure, to supply up to five million tonnes per annum of green hydrogen to Europe by 2030. In other words, E.ON could buy a third of FFI’s 2030 production.

It was noted by the AFR that a large portion of the world’s hydrogen exports will likely be shipped as ammonia initially because “ammonia is an easier substance to transport than pure hydrogen.”

When will FFI start generating revenue by selling hydrogen or ammonia? The AFR quoted Hutchison, who said:

I’m really hoping we will have some available [in the] ’24, ’25 timeframe.

So, it seems that by 2025 Fortescue Future Industries will be generating revenue from green energy.

How is it funding these green initiatives?

Fortescue is allocating 10% of its net profit after tax (NPAT) towards FFI.

Fortescue Future Industries spent US$534 million in FY22 and currently has around US$1.1 billion of unused capital after the US$342 million allocation from the Fortescue net profit for the second half of FY22.

Fortescue share price snapshot

Since the start of 2022, Fortescue shares have dropped 7%.

The post When will Fortescue’s hydrogen business produce revenue? 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

• What’s going wrong for ASX 200 iron ore shares on Wednesday?
• Goldman Sachs warns that the Fortescue share price could crash 36% lower
• Can Twiggy really build Fortescue into a ‘green global energy and metals machine’?
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Rio Tinto share price having such a lousy start to the week?

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/xZj4GQt

If you’re looking for an easy way to invest in international shares, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at this month? Here are two popular ETFs that could be quality options right now:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to consider in September is the BetaShares NASDAQ 100 ETF. As its name implies, this ETF aims to track the performance of the famous NASDAQ 100 index.

The NASDAQ 100 comprises 100 of the largest non-financial companies listed on the famous NASDAQ exchange. BetaShares notes that it includes many companies that are at the forefront of the new economy. This includes the likes of Amazon, Apple, Microsoft, Netflix, and Tesla, to name just five.

BetaShares also notes that with a strong focus on technology, the ETF provides investors with diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider this month is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard notes that this provides investors with low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the ETF’s largest holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

Another positive is that this ETF also offers investors a source of income. While it isn’t a huge yield, every bit helps in the current environment. At the last count, its units were providing investors with a 1.9% yield.

The post 2 of the best ETFs for ASX investors to buy in September 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 is the Betashares Nasdaq 100 ETF (NDQ) tumbling 4% on Monday?
• How does VGS stack up against other ASX index funds?
• 3 top ETFs for ASX investors to buy
• 2 wonderful ETFs to buy for portfolio diversification
• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?

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 BETANASDAQ ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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/ni03R4K

The National Australia Bank Ltd (ASX: NAB) share price was an underperformer in August and came in with a 3 basis point decline for the month.

Before the open on Thursday, shares of the banking giant and member of the ‘big 4’ of banking in Australia rest at $30.59 apiece.

What’s up with the NAB share price?

Despite a strong set of earnings results printed for FY22, where cash earnings increased 6% year on year, investors haven’t nibbled at current prices.

In fact, NAB shares were on the upward trajectory since catching a bid from around mid-June, but growth has since levelled off to current ranges.

Heading into August, momentum was high for the bank’s share price after stretching up from 52-week lows of $26.06 on 20 June.

Chief to the upside was the Reserve Bank (RBA)’s decision to begin the hiking cycle of its key policy interest rate – known as the cash rate in Australia.

In a move that followed several other central banks from around the globe, the RBA shifted the cash rate to its highest point in several years.

The move is seen as beneficial to the financial sector, including banks and listed investment companies, due to profits obtained on interest rate differentials.

So as the RBA has lifted the cash rate, so too has NAB lifted its lending/borrowing rates for residential and commercial mortgages, alongside other debt facilities.

It’s not all that simple, however

NAB theoretically will realise this gain at the net interest income (NII) and net interest margin (NIM) levels – two key benchmarks in the evaluation of banking shares.

The NIMs for banks like NAB benefit from the higher interest income charged on its loaned funds as it underwrites new credit to borrowers (interest is the cost of money). As such, extra income is potentially fed down to NAB’s bottom line.

However, Australia’s mortgage and lending market is extremely competitive, and this competitiveness has placed an artificial ceiling on how far banks can lift lending rates, seeing as the hallmark for competition is lower costs.

Some banks have even lowered the interest rate on some of their products in order to stand out from the pack and drive additional NII.

Not to mention, new house sales and existing home sales continue to weaken in 2022, alongside the collapse of several construction companies.

Moreover, the RBA’s moves to lift the cash rate are by meticulous design in order to clamp down on hot-running inflation.

It is in fact the RBA’s primary mandate to keep inflation within a 2-3% radius – something it has failed tremendously over these past 12 months, not necessarily by entire fault of its own.

Whatever the supposed cause of the jump in living costs, the RBA has to wind back inflation, and it has a balancing act with the real economy in doing so.

See, raising interest rates will certainly control inflation at some point, but it does this at the sacrifice of economic growth and aggregate demand.

Put simply, the RBA needs to successfully navigate pulling inflation back down whilst preventing the economy from entering an all-out recession. In a paradox, it does this by raising base interest rates, thereby slowing the economy.

If it lets inflation run, the eventual recession caused by this is undeniably worse and has far more reaching consequences, and produces a scenario known as ‘stagflation’ – whereby there’s negative economic growth with soaring inflation. If you know anything about modern history, think Germany’s economy post WW1.

In any sense, these dynamics have played havoc on the shares of ASX banks in FY23, with NAB no exception.

Strengths from potential higher NII and NIMs are offset by weakness in Australian property, higher interest rates and the prospects for lower economic growth. Each isn’t conducive to banks underwriting more loans.

The NAB share price is still up 8% in the past 12 months.

The post Why did the NAB share price struggle in August? 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

• What’s the outlook for ASX 200 bank shares in September?
• Will this build value for NAB shareholders or alienate the bank’s customers?
• Are ANZ shares really offering the highest dividend yield of the big four?
• NAB is the ASX 200 bank share I’d buy today
• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?

Motley Fool contributor Zach Bristow 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/SpkjfW5

The Sayona Mining Ltd (ASX: SYA) share price had a tremendously strong month during August.

For the 23 trading days, the ASX mining share harpooned into the green, clipping a 51.3% gain for shareholders in the process.

Before the open on Thursday, the Sayona share price is 29.5 cents after lifting another 5% yesterday.

What’s up with the Sayona share price?

August was a flavoursome month for the miner with its share price clawing back losses incurred from a heavy sell-off that started in April.

Chief to the gains early on was Sayona’s announcement that it had restarted production at its North American Lithium asset, located in Canada.

First spodumene production is expected from the facility by Q1 2023. This is a huge step up for the company in its lithium production efforts.

Adding further upside to the investment debate has certainly been the price of lithium in recent months.

While most other commodity markets have drifted lower since June, lithium carbonate has shifted back towards all-time highs.

Even more promising was the recent earnings result from fellow lithium player Pilbara Minerals Ltd (ASX: PLS). The company recognised $1.2 billion in revenue and $561 million in net profit for the 12 months.

The uplift in earnings from Pilbara signals that real demand and supply forces in the markets are still very active and that producers are reaping the benefits of the same.

Following Pilbara’s printed earnings the ASX lithium basket has captured upside in the double-digits, with Sayona outshining in August.

Following the gains, the Sayona Mining share price now rests more than 103% higher for the past 12 months.

It trades on a price-to-earnings ratio (P/E) of 28.5x and presents a trailing earnings yield of 3.5%.

The post Why did the Sayona Mining share price go gangbusters in August? 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 the Sayona share price tumble 5% on Monday?
• Have Sayona Mining shares been a good investment in 2022?
• Why did the Sayona Mining share price beat the ASX All Ords on Tuesday?
• Why is the Sayona Mining share price surging 8% on Friday?
• Why is the Sayona Mining share price so volatile?

Motley Fool contributor Zach Bristow 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/BCeraSG