In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.5% to 7,098.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

BHP Group Ltd (ASX: BHP)

The BHP share price is up 5% to $40.72. This follows the release of the mining giant’s full year results this morning. For the 12 months ended 30 June, BHP reported a 16% increase in underlying EBITDA from continuing operations to a record US$40,634 million. A key driver of BHP’s growth was its coal operations, which delivered significant earnings growth thanks to sky high prices.

Life360 Inc (ASX: 360)

The Life360 share price is up almost 6% to $5.82. This morning the location intelligence company released its first half results and revealed the more than doubling of its revenue to US$99.8 million and a 65% increase in annualised monthly revenue to US$174.4 million. Looking ahead, management expects its revenue to grow to between US$245 million and US$260 million for the calendar year.

Tassal Group Limited (ASX: TGR)

The Tassal share price is up 5% to $5.14. Investors have been buying this seafood company’s shares after it received and accepted a $5.23 per share takeover offer from Canada’s Cooke Inc. This latest offer implies an equity value of approximately $1.1 billion and an enterprise value of $1.7 billion.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is up 30% to $5.72. This follows the release of a full year result that impressed the market. The online furniture retailer reported a 31% increase in revenue to $426.3 million and an EBITDA margin towards top end of guidance at 3.8%. Management also lifted its EBITDA margin guidance for FY 2023 to 3% to 5% from 2% to 4%.

The post Why BHP, Life360, Tassal, and Temple & Webster shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• The BHP share price now trades on a fully franked dividend yield of 11%
• Everything you need to know about the latest BHP dividend
• Tassal share price surges 5% on $1.7b takeover bid and full year earnings
• Temple & Webster share price soars 21% on revenue lift
• Life360 share price rises as revenue more than doubles

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Shopping Centres Australasia Property Group (ASX: SCP) share price is in the red on Tuesday amid the company delivering a mixed earnings report for FY22.

Shares of the managed real estate investment trust (REIT) currently swap hands for $2.83 each, down 4.07% on yesterday’s closing price. The REIT sector is also in the red, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) down 0.72%

Although Shopping Centres Australasia reported growth in its top and bottom lines in FY22, its outlook for the 2023 financial year is pessimistic.

Let’s investigate some of the highlights of the company’s results.

What did Shopping Centres Australasia report?

• Revenue up 19% on FY21 to $350.3 million
• Net profit after tax (NPAT) up 5.2% on FY21 to $487.1 million
• Investment property portfolio value up 10.31% on FY21 to $4.46 billion
• Adjusted funds from operations (AFFO) up 24.8% on FY21 to $169.5 million,
• Net tangible assets up 11.5% on FY21 to $2.81 per unit

The company’s strong top and bottom line performance was helped by higher sales figures in its shopping centres after bouncing back from COVID-19 restrictions.

Shopping Centres Australia reported it has mostly recovered from the impact of the virus.

Total sales were said to be 10% higher than pre-COVID levels in December 2019. Sales growth momentum also shot 4.5% higher in Q4 FY22.

What else happened in FY22?

The company also reported an uptick in cash collection from its creditors during the COVID-19 period. In fact, it reported a 100% cash collection rate. It cited lockdowns in 1H FY22 as a headwind that had stopped it collecting from creditors during that period.

Shopping Centres Australia also acquired seven convenience centres in FY22 in Queensland, New South Wales, and Victoria. The total value of the acquisitions was $341.9 million.

What did management say?

Shopping Centres Australasia CEO Anthony Mellowes said:

Over the last twelve months, our convenience-based centres have remained resilient. Our tenant sales are now 10% above pre-COVID levels. Leasing spreads and cash collection rates were impacted by lockdowns in New South Wales and Victoria during the first half of the year, but improved in the second half. We have made solid progress on our sustainability program, including completing our LED rollout, and the installation of solar panels on our WA assets.

What’s next?

The company expects its adjusted funds from operations (AFFO) per unit, a key performance measure of REITs, to contract 1.96% from 15.30 down to 15, primarily due to floating interest rates.

However, the company has a medium to long-term vision of increasing its AFFO to 2-4% per annum. The strongest growth drivers for the company are expected to be property development and acquisitions in its shopping centre segment.

More than $300 million worth of estimated capital investment has been proposed to develop its centres over the next five years. Some activities include expansion, improvement, and rebuilding, as well as improving sustainability through clean energy solutions such as solar.

Shopping Centres Australasia share price snapshot

The Shopping Centres Australasia share price is currently down 5% year to date but up 6% in the last 12 months.

It’s outperformed the S&P/ASX 200 Index (ASX: XJO) over the past year with the benchmark index losing 6% over the same period.

At the current share price, the company’s market capitalisation is around $3.15 billion. 

The post Shopping Centres Australasia share price slips on FY22 results appeared first on The Motley Fool Australia.

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It’s a mixed day on the market for ASX tech shares.

Fortunately for those invested in these three stocks, they’ve avoided the drama. Indeed, they’ve each rocketed more than 10% on Tuesday despite their collective silence.

For comparison, the S&P/ASX 200 Information Technology Index (ASX: XIJ), home to the market’s biggest tech stocks, is recording a 0.4% gain right now. Meanwhile, the broader S&P/ASX All Technology Index (ASX: XTX) has slumped 0.8%.

The All Ordinaries Index (ASX: XAO) is also up 0.4% right now, while the S&P/ASX 200 Index (ASX: XJO) is boasting a 0.5% gain.

So, what might be driving these ASX tech shares sky high today? Let’s take a look.

3 ASX tech shares gaining more than 10%

Silex Systems Ltd (ASX: SLX)

The Silex Systems share price is leaping 10.2% today to trade at $3.45.

It had soared even higher earlier today to reach $3.53. That’s mere cents off the all-time high of $3.55 it hit last month.

The company is in the process of commercialising its SILEX laser enrichment technology. The tech can be used to produce and enrich uranium for nuclear power and silicon for quantum computing.

Livetiles Ltd (ASX: LVT)

The Livetiles share price is also surging 10.5% today. It’s currently trading at 4.2 cents.

There’s been no news from the ASX tech share on Tuesday. However, it fell 5% yesterday and 9% on Friday. Thus, today’s gain could represent a sort of correction.

Livetiles develops digital workplace software. It’s planning to delist from the ASX later this year.

K2FLY Ltd (ASX: K2F)

Finally, ASX tech share K2Fly is also soaring higher, lifting 10.5% to reach 21 cents.

Like Livetiles, the stock tumbled 5% yesterday, potentially explaining some of today’s rise.

The tech share operates a software-as-a-service business for those involved in asset-intensive sectors such as mining, utilities, oil and gas, and rail.  

The post 3 ASX tech shares leaping by more than 10% on Tuesday appeared first on The Motley Fool Australia.

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• The ASX shares with 30% to 50% upside: fundie
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• 3 ASX All Ordinaries shares hitting new 52-week highs on Wednesday
• LiveTiles share price slumps 31% as quarterly cash bleed worsens
• Rocks and lasers: 2 ASX All Ords shares securing new multi-year highs on Wednesday

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

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The Vanguard MSCI International Shares Index ETF (ASX: VGS) is one of the best exchange-traded funds (ETFs) on the ASX, in my view. The VGS ETF is an extremely broad and diversified fund that covers shares from dozen of countries.

It seems ASX investors have taken note, with VGS now one of the most popular ETFs on the ASX covering international shares. So let’s dig into why this ETF could serve a useful role in any ASX share portfolio.

What is the VGS ETF?

The Vanguard International Shares ETF is, at its heart, an index fund. The index it tracks is the MSCI World ex-Australia index. This index covers the share markets of 23 advanced economies around the world, excluding Australia.

Countries represented in VGS range from the United States, Canada, the United Kingdom, and France to Switzerland, Japan, Hong Kong, and Israel.

However, the whopping near-1,500 individual holdings in VGS’s portfolio are weighted by market capitalisation. That means that it is the US holdings that make up the lion’s share of this ETF’s portfolio. In fact, more than 70% of the weighted portfolio is concentrated in American companies.

Naturally, the largest US shares are also VGS’s largest holdings. You’ll recognise many of its top names, such as Apple, Microsoft, Alphabet, Amazon.com, and Tesla. But other companies outside the US are also present within VGS’s upper echelons, including names like Toyota, Nestle, Astra Zeneca, and Sony.

What’s to like about this ASX index ETF?

So why would VGS make a useful addition to any ASX investor’s share portfolio in my opinion? There are two reasons.

The first is diversification. As we touched on earlier, this ETF has almost 1,500 underlying shares within it, hailing from 23 different countries.

Although most of these are American by heritage, companies like Apple, Amazon, Exxon Mobil, McDonald’s, and Starbucks are truly global giants, with the US representing a fairly small portion of their overall earnings base.

As such, I think VGS is an ETF that gives investors true global exposure, all in one ASX investment.

The second is performance. ASX shares are great. But sometimes they just don’t give investors the kind of returns that are available from international shares.

As a case in point, let’s look at the returns of the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which is an ETF covering the Australian S&P/ASX 200 Index (ASX: XJO) benchmark.

As of 31 July, this ETF has averaged an annual return of 7.89% per annum. In contrast, VGS units have returned an average of 11.95% per annum over the same period.

Now, there’s no guarantee that the Vanguard International Shares ETF will continue to outperform the iShares ASX 200 ETF into the future. But I think it’s worth taking a chance that it will.

So those are the two reasons why I think the Vanguard MASCI International Shares Index ETF would be a worthy addition to any ASX investor’s portfolio right now.

The post 2 reasons to consider buying the Vanguard International Shares ETF (VGS) right now appeared first on The Motley Fool Australia.

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• Is the Vanguard MSCI International ETF (VGS) a good alternative to global tech shares?
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, McDonald’s, Microsoft, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Starbucks, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Starbucks, and 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.

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The BrainChip Holdings Ltd (ASX: BRN) share price is falling today despite the S&P/ASX 200 Index (ASX: XJO) travelling higher.

At the time of writing, the artificial intelligence (AI) technology company’s shares are down 4.07% to $1.06 apiece.

In comparison, the benchmark index is up 0.49% to 7,099 points following a positive session on Wall Street overnight.

What’s driving BrainChip shares lower?

Despite no announcements from the company, investors are selling off the BrainChip share price.

It appears a weakness across the S&P/ASX All Technology Index (ASX: XTX) is hurting shares in the AI on-chip processing and learning company.

After seesawing since this time last week, the tech sector is powering down by 0.95% on Tuesday.

In addition, there could be some profit taking by investors following the recent rise of BrainChip shares.

After surging to a six-month high of $1.365 on 28 July, the gradual decline seems to be coming off the back of a broader market consensus.

BrainChip shares, for most of the year, normally range around the $1 mark.

When there are buyers pushing up or down a share price, it is usually noise coming from the microenvironment.

It may be linked to the political tensions between the US and China over the Taiwan issue.

If the situation heats up, this could have massive ramifications for the world’s most important chip developer Taiwan Semiconductor Manufacturing Co. (TSM).

The company makes more than 90% of advanced chips produced globally.

BrainChip share price snapshot

Despite tumbling 6% this week, the BrainChip share price is up 116% over the last 12 months.

Year-to-date, it’s also fared well — up 56% — despite the recent volatility on the ASX.

The company’s share price reached an all-time high of $2.34 in January 2022, before sharply pulling back.

On valuation grounds, BrainChip commands a market capitalisation of around $1.83 billion.

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

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• Brainchip share price powers up another 5% on Thursday
• Why is the BrainChip share price bouncing 6% higher today?
• This US investment house has made tens of millions from Brainchip. Guess which other ASX share it’s backing
• Here are the top 10 ASX 200 shares today

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

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The Adore Beauty Group Ltd (ASX: ABY) share price is surging higher today despite the company’s silence.

Though, it’s joined in the green by some of its All Ordinaries Index (ASX: XAO) consumer discretionary peers.

Right now, the Adore Beauty share price is $1.995, 18.75% higher than its previous close.

For context, the All Ords is currently up 0.44%.

So, what might be driving the online retailer of beauty products’ stock higher on Tuesday? Let’s take a look.

What’s driving the Adore Beauty share price today?

Adore Beauty’s shares are rocketing today alongside those of some of its ASX online retailing peers.

The Temple & Webster Group Ltd (ASX: TPW) share price, for instance, is surging 26% right now.

The furniture and homewares retailer released its earnings for financial year 2022 this morning. It reported a 31% increase in revenue year-on-year and while its earnings before interest, tax, depreciation, and amortisation (EBITDA) slipped to $16.2 million, its EBITDA margin of 3.8% was at the high end of guidance.

Other consumer discretionary stocks outperforming today include Redbubble Ltd (ASX: RBL) and Best & Less Group Holdings Ltd (ASX: BST). Their share prices are lifting 2.7% and 2.6% respectively despite their silence.

Though, it won’t be quiet in the Adore Beauty camp for long. The company is expected to release its financial year 2022 earnings on 29 August.

It will mark the first time the company reports on a full year in which it has been listed. It floated on the ASX midway through financial year 2021.

The Adore Beauty share price lifted 3% after the company posted $179.3 million of revenue and $7.6 million of EBITDA for the 12 months ended 30 June 2021.

The post Why is the Adore Beauty share price rocketing 19% on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended REDBUBBLE FPO and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Three ASX mining shares are on our radar today.

While the All Ordinaries Index (ASX: XAO) is up a respectable 0.44% in afternoon trading, these ASX mining shares are leaving the index in the dust as investors send them rocketing higher following reports of promising new finds.

So, without further ado…

ASX mining share leaps 30%

First up, we have Gascoyne Resources Ltd (ASX: GCY).

The ASX mining share, focused on gold exploration and development, is up 33.33% at the time of writing after emerging from Friday’s trading halt.

This comes after Gascoyne reported it had discovered a “substantial” new high-grade lode system at its new Gilbey’s North prospect, situated within its 100%-owned Dalgaranga Gold Project in Western Australia.

Highlights from one of the drill holes include 59 metres at 12.5 grams of gold per tonne from 139 metres, including 13m@51.1g/t.

Gascoyne Resources CEO Simon Lawson said: “It’s not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey’s North discovery.”

But Gascoyne isn’t the only ASX mining share making hay from its new find today.

Copper strike piques investor interest

Cobre Ltd (ASX: CBE) shares are also charging higher, up 31.33% since yesterday’s close.

The ASX mining share is garnering investor interest after announcing its fourth intersection of copper mineralisation from an ongoing drill program on Kalahari Metals Limited’s Ngami Copper Project (NCP) licenses. Those licenses are located in the Kalahari Copper Belt in Botswana.

Commenting on the positive drill results, Cobre managing director Martin Holland said:

We’re delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4 kilometres. Importantly, all the results so far indicate that the target remains open-ended to the northeast and is larger than previously anticipated. The footprint of mineralisation now extends over 4 kilometres, which is in line with the largest known deposits in the Kalahari Copper Belt.

Which brings us to…

The third ASX mining share rocketing today

Rounding off the list of surging ASX mining shares is Latin Resources Ltd (ASX: LRS).

The Latin Resources share price is up 14.78%, bringing its 2022 gains to a whopping 340%.

Investors are sending the ASX mining share higher again today after the company reported a new lithium spodumene discovery at its 100% owned Colina Prospect, located in Brazil.

The drilling intersected “a new swarm of spodumene bearing pegmatites”, including one that was 18.75 metres thick.

Latin Resources also said its regional mapping campaign had highlighted a third outcropping pegmatite system in the proximity, yet to be drilled.

Commenting on the drill results, Latin Resources exploration manager Tony Greenaway said

The intersection of these significant spodumene pegmatites … is an impressive new discovery for the Salinas exploration team. This hole is testing an area approximately 500 metres to the west of Colina, well outside of our current resource definition drilling focus.

We knew there were additional parallel pegmatite systems out to the west, getting these spodumene intersections confirms the very high prospectivity of the wider project area.

There you have it.

Three ASX mining shares rocketing today on three different discoveries of gold, copper and lithium.

The post 3 ASX mining shares rocketing higher today on new finds appeared first on The Motley Fool Australia.

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• Copper and cash: Why this ASX mining share is on ice 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a pleasing day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has added another 0.54% and is back to over 7,100 points. But it’s been even better for one ASX 200 share – Endeavour Group Ltd (ASX: EDV).

Endeavour shares are smashing the market’s returns for one. The bottle shop and pub owner is currently enjoying a 2.57% gain to $8.185 a share at the time of writing. But that’s not the biggest piece of news today.

Rather, it’s Endeavour’s fresh new all-time high. Yep, earlier this morning, the Endeavour share price climbed as high as $8.27 a share. This is both the company’s new 52-week and record high.

Sure, Endeavour has only been listed on the ASX in its own right since June last year. That was when the company was spun out of its old parent Woolworths Group Ltd (ASX: WOW). But it’s still a big day for Endeavour and its shareholders nonetheless.

Endeavour share price hits new record high

There’s been no news out of the company today that might explain this latest push into record territory. Indeed, no news out from Endeavour this month so far. So perhaps investors are getting in before Endeavour reports its FY2022 full-year earnings on 23 August next week.

As we covered earlier this month, more than one expert investor has been eyeing off Endeavour shares recently too. So that could also be influencing sentiment.

But Endeavour has been on quite the run since its ASX listing last year. In 2022 thus far, the Endeavour share price is up a healthy 20% or so, vastly outperforming the broader ASX 200 index. This remains almost 6.5% lower than it was at the start of the year today.

Endeavour shares are also up by close to 14% over the past 12 months, and by 33.6% since its ASX debut in June last year.

At the current Endeavour share price, this ASX 200 consumer staples share has a market capitalisation of $14.7 billion, with a dividend yield of 3.07%.

The post Endeavour share price outperforms on Tuesday to smash new, all-time high appeared first on The Motley Fool Australia.

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

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The Sims Ltd (ASX: SGM) share price is in the red this afternoon after the company posted its full-year results for FY22.

At the time of writing, Sims shares are down 3.18% to $15.21, having earlier slumped as low as $14.51.

Let’s take a closer look at what the ASX-listed metal and electronics recycling company reported.

What did Sims report?

Here are the highlights from Sims’ FY22 results:

• Sales revenue rose 56.6% to $9,264.4 million compared to FY21
• Net profit up 161.2% to $599.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 65.4% to $958.9 million
• Earnings before interest and taxation (EBIT) went up by 146.4% to $773.6 million
• Underlying EBIT increased 95.6% to $756.1 million
• Operating cash flow surged by 323.3% to $547.8 million
• Declared a final dividend of 50 cents per share, a 66.7% jump on FY21

Revenue experienced strong growth on the back of a 12.2% increase in sales volumes. This was primarily driven by a 23.6% increase in zorba volumes, partially due to improved metal recovery technology.

Sims benefitted from a surge in sales prices, in particular ferrous commodities. The average sales price for ferrous went up by 43% compared to non-ferrous sales prices, which increased by 32%.

The higher operating costs of 23.9% were a result of greater activity across the business, acquisitions, greenfield facilities, and enhanced performance incentives.

What else happened in FY22?

All segments within the business experienced inflationary pressures, in particular labour.

It should be noted that the company’s earnings benefitted from an 89.2% increase in earnings contribution from a 50% interest in SA Recycling.

Diluted earnings per share (EPS) increased from 112.8 cents in FY21 to 295.6 cents in FY22, a rise of 162.1%.

The weighted average number of basic shares was reduced by 3.3 million shares relative to FY21. On top of this, the company bought back and cancelled 7.7 million shares, contributing to an improvement in diluted EPS by 5.6 cents.

In addition, Sims declared a final dividend of 50 cents per share, 50% franked. That brings the full-year payout to 91 cents — a 116% increase over the prior year. The dividend will be paid out on 19 October 2022.

Meanwhile, the company achieved its lowest total recordable injury frequency rate ever after implementing its critical risk management strategy in FY19.

The business continues to hit sustainability goals, ranking 11th on the 2022 Global 100 List of most sustainable companies in the world.

What did management say?

Commenting on the results, Sims CEO and Managing Director Alistair Field said:

We made significant progress on our business strategy: successfully completed several strategic acquisitions, continued to deploy enhancement technologies in ferrous and non-ferrous, and opened new feeder yards in the metal business.

In Sims Lifecycle Services, we launched new service offerings and invested in engineering and technology to continue driving innovation and build capacity to scale up operations quickly when the supply chain challenges ease.

I am particularly proud of how our teams managed the inflationary pressures and market volatility, working across all market segments to protect margins while maintaining high safety standards.

Management provides a measured outlook

Management has flagged the uncertainty around the short term because of major volatility.

The combination of rising interest rates and increasing inflation has resulted in lower demand for steel, copper, and aluminium.

Ferrous prices were at a high of US$700 tonne in March FY22 but have subsequently dropped to between US$320 and US$400 per tonne at the start of FY23.

FY23 results will depend on how interest rates pan out but management advised its strong market position and strong balance sheet will help the business absorb the adverse impact of the short-term volatility.

Management also added structural macro trends like the global decarbonisation of steelmaking, rise in electric arc furnaces, and energy transition will act as strong tailwinds for recycled metal.

Sims share price snapshot

When metals prices were at all-time highs in April, the Sims share price rallied to a 12-month high of $22.64 per share.

However, since then, the Sims share price has taken a turn for the worse, sinking as low as $13.37 at the start of July.

Over the last 12 months, the Sims share price has fallen by 13%. Across the same period, the S&P/ASX 200 Index (ASX: XJO) has dropped by 6%.

The post Sims share price slips despite stellar growth in FY22 appeared first on The Motley Fool Australia.

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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. Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned.

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1) The BHP Group Ltd (ASX: BHP) share price has jumped 4.5% higher to around $40.70 on Tuesday after the mining giant reported the second biggest profit in the company’s history. The mining giant declared a final dividend of $US1.75 bringing the full-year BHP dividend to $US3.25, nicely ahead of analyst consensus.

On a trailing basis, the BHP share price trades on a fully franked dividend yield of over 11% and a price-to-earnings (P/E) multiple of just six times earnings. No wonder BHP shares are jumping higher, although the BHP share price still remains down 11% over the past 12 months.

Looking ahead, BHP said, “growth momentum has slowed across many key regions, and caution remains due to geopolitical uncertainty as well as COVID-19.”

Profits and dividends are likely to be lower next year as costs rise and global growth slows, making the historical valuation metrics just that — historical. Still, absent a collapse in commodity prices, BHP shareholders are likely to bank nice fully franked dividends well into the future.  

With the Commonwealth Bank of Australia (ASX: CBA) share price looking downright expensive, and its dividend yield somewhat modest, it could be a case of BHP — despite its cyclicality — being a better dividend play than the banks going forward.  

2) Who’d be a stock picker in this current economic environment?

Are we heading for a recession? Hard or soft one?

Will the consumer put the brakes on discretionary spending, and by how much?

How high will inflation go, and therefore interest rates?

For some companies, comparisons to prior periods are virtually depending on whether we were on the COVID cycle.

Take Temple & Webster Group Ltd (ASX: TPW), the leading pure-play online retailer in the furniture and homewares market. Although it reported revenue growth of 31% for FY22, July trading is down 21% year over year, with August (to 14th) down 17%.

If I was a betting man, I’d have bet the Temple & Webster share price might have taken a turn south on today’s trading update.

And I’d have been wrong, big time. The Temple & Webster share price has soared more than 20% to $5.43 in Tuesday trading with investors seemingly taking a long-term positive view of the company’s prospects. Wonders will never cease…

Perhaps it’s that Temple & Webster said, “month-to-month seasonality suggests a return to double digit growth during FY23 once we finish lapping COVID lockdowns from the year before”.

Perhaps it’s that Temple & Webster has upgraded its EBITDA margin guidance for FY23 from 2%–4% to 3%–5%. 

Perhaps it’s that the Temple & Webster share price is down 60% from its September 2021 highs, and bargain hunters are out in force. The company is capitalised at $635 million of which $101 million is in cash.   

Long-term, Temple & Webster says the Australian furniture and homewares market significantly lags the online penetration of other countries such as the United States and United Kingdom. Compared to Wayfair, the US online market leader, Temple & Webster has the opportunity to almost treble its market share in the years ahead.

Retailing is tough. Selling discretionary items in a period of lower consumer confidence and higher interest rates is even tougher. Today’s jump in the Temple & Webster share price may be more a relief rally than anything else. It’s not one for me. 

3) For the past few months, I’ve been fishing around amongst the wreckage that is the bombed out recent-IPO sector.

Plenty of COVID beneficiaries rushed to market last year, taking advantage of once-in-a-generation trading conditions to raise a shedload of cash.

Good for them, but very unfortunate for shareholders who bought into long-term growth stories which ultimately turned out to last as long as COVID lockdowns.

The poster child for this might be Step One Clothing Ltd (ASX: STP), a direct-to-consumer online retailer selling men’s and women’s underwear. 

After a series of profit warnings, the Step One share price has collapsed from a high of $3 in November last year to trade at just 31 cents today, a devastating fall of 90%. 

Step One is not a company I’ll be buying. It operates in a very competitive market, and it relies on influencers and paid advertising on Facebook for its new customers, something that worked well in a locked-down world, but not so well now underwear is being worn, you know, under clothes again. 

Yet, Step One sports a market cap of $58 million, of which $27 million was in cash as at 30th April 2022. It is forecasting sales of $73 million for FY22 and EBITDA of around $8 million, albeit almost all that was earned in the first half of the year.   

By all measures, Step One shares look cheap. The company continues to talk a good game, with the Step One founder and CEO, Greg Taylor saying in May he remains confident in its  “unique product proposition” and is “laser focused on our long-term growth ambitions.”

Step One reports on Tuesday 23 August. Do you feel lucky? Like Temple & Webster shares today, I wouldn’t be surprised to see Step One shares jump higher. I’ll be watching, with interest, from the sidelines.

The post The BHP share price now trades on a fully franked dividend yield of 11% appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest BHP dividend
• Temple & Webster share price soars 21% on revenue lift
• BHP share price charges 5% higher on ‘better than expected result’
• BHP share price on watch amid record FY22 profits
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Bruce Jackson 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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