• Qantas share price climbs as first direct flight to Europe touches down in Rome

    A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

    The Qantas Airways Limited (ASX: QAN) share price is in the green today following an eventful few days for the airline.

    Qantas shares are currently jumping 2.92% to $4.58. For perspective, the S&P/ASX 200 Index (ASX: XJO) is leaping 1.68% today

    Let’s take a look at what’s happening at Qantas.

    Speedy long-haul flight lands in Rome

    Qantas’ inaugural flight from Sydney to Perth to Rome landed in Europe on Sunday morning. The flight is the first direct flight between Australia and Europe. Qantas CEO Alan Joyce and West Australian Premier Mark McGowan were among the special guests onboard the flight, the Australian Financial Review (AFR) reported. McGowan was quoted as saying, it is “exciting to reopen to the rest of the world”.

    Recent figures show the number of Australians travelling overseas has nearly doubled since borders opened, according to the ABC. A total of 663,970 people left Australia in May, up from 335,240 in March.

    In recent news, Qantas is cutting domestic flight capacity to schedules from July until the end of March 2023. This drop is designed to help the company recover high fuel costs.

    Qantas said:

    These reductions, combined with robust international and domestic travel demand, are expected to help the Group substantially recover the elevated cost of fuel indicated by forward oil prices.

    The airline will also be providing 19,000 employees with a $5,000 bonus at a cost of $87 million. This will be paid once a new enterprise agreement is completed. Further, Jetstar CEO Gareth Evans will step down in December 2022. Jetstar is part of the Qantas Group.

    Brent crude oil prices have fallen 1.33% at the time of writing, while WTI crude oil prices are down 1.51% today. Falling oil prices can help travel shares because fuel is a major cost for airlines.

    Qantas share price snapshot

    The Qantas share price has shed 3.17% in the past 12 months, while it has descended nearly 9% year to date.

    For perspective, the benchmark ASX index has lost more than 10% so far this year and 8.5% in a year.

    Qantas has a market capitalisation of about $8.6 billion based on today’s share price.

    The post Qantas share price climbs as first direct flight to Europe touches down in Rome appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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.

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  • What percentage of A2 Milk shares are owned by institutions?

    a man in a business shirt, tie and suit holds a mobile phone to his ear while he drinks a large glass of milk.a man in a business shirt, tie and suit holds a mobile phone to his ear while he drinks a large glass of milk.

    The A2 Milk Company Ltd (ASX: A2M) share price has been dwindling lower, now down almost 19% in 2022 so far.

    After a strong start to June, A2 Milk turned sharply and is now trading off its monthly highs. The company’s shares are now fetching $4.42 each in early trade on Monday. That’s down 1.34% on Friday’s closing price.

    Let’s check the company’s shareholder statistics that reveal some fairly interesting findings.

    A2 Milk’s institutional ownership

    More than 57% of the company’s shares are owned by institutions, according to Bloomberg data.

    In June 2020, it was 85%. Hence, there’s been a substantial drop in institutional interest in A2 Milk since that time.

    There are 189 institutions in total that own shares, with 37 new buyers in the last week.

    In terms of investment, more than 38% of the float is owned by exchange traded funds (ETFs). Another 30% is a blend of open-ended funds with 15.6% held by asset allocators, according to Bloomberg data.

    The majority (4.65%) of investment funds holding A2 Milk shares are located in the US. Australia accounts for 4.5% of institutional funds, the data shows.

    Furthermore, the number of institutions selling A2 Milk shares increased approximately 12% in June. That’s on top of a 9% decrease in the number of institutional buyers over the same timespan.

    Perhaps that might help explain why the A2 Milk share price has taken a backward step from its monthly highs, as seen below.

    TradingView Chart

    A2Milk share price snapshot

    The A2 Milk share price has been trending lower over the last 12 months, slipping around 30% into the red.

    A2 Milk shares have been heading south since falling from their all-time high of $19.83 on 3 June 2020. The share price now trades in line with its July 2017 levels.

    The post What percentage of A2 Milk shares are owned by institutions? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in A2 Milk Company Ltd right now?

    Before you consider A2 Milk Company Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and A2 Milk Company Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 recommended A2 Milk. 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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  • Suncorp share price lifts on demerger plans

    AMP share price demergerThree zigsaw pieces pulled apart to symbolise a demergerAMP share price demergerThree zigsaw pieces pulled apart to symbolise a demerger

    The Suncorp Group Ltd (ASX: SUN) share price has started the day well, now trading up 3% at $11.20.

    Investors are bidding up the Suncorp share price amid reports the company is pushing to spin out its banking unit to focus on its insurance arm.

    In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also jumped from the gate on Wednesday and trades 2% higher.

    Suncorp to push for demerger

    Growing evidence suggests that Suncorp is making a push to spin off or sell its banking division.

    The bank’s board and management have been weighing up options to split Suncorp’s “bancassurer” model, The Australian Financial Review reports.

    The move would allow it to focus on its more profitable insurance segment, reports say.

    “A demerger could see Suncorp retain and focus on its insurance arm, which is now Australia’s second-biggest offerer of [general insurance products], behind IAG,” The AFR wrote.

    Chief to the debate is Suncorp’s share price, reports say. Deliberations are focused on creating more value via a demerger, if that were the case.

    Suncorp released a short statement today in response to the “media speculation”.

    It said that “[a]s previously advised, Suncorp, from time to time, reviews its strategic alternatives in relation to all of its businesses and is currently doing so in respect of its banking operations.”

    Nevertheless, the market certainly isn’t reacting in a negative way during early trade on Monday, leading us to believe investors could be pricing in the non-sensitive news.

    The market now values Suncorp on a fully-diluted market cap of $13.64 billion, according to ASX data. That’s down from more than $15 billion on 27 May.

    In the last 12 months, the Suncorp share price has held a 1.3% gain. That’s despite trading more than 7% down this past month.

    The post Suncorp share price lifts on demerger plans appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Suncorp Group Limited right now?

    Before you consider Suncorp Group Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Suncorp Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    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.

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  • Why these fundies say the Allkem share price is ‘absolutely a buy’

    A miner in a hardhat makes a sale on his tablet in the field.A miner in a hardhat makes a sale on his tablet in the field.

    The Allkem Ltd (ASX: AKE) share price is staging a recovery in early trading on Monday, after plummeting this past month. The bounce comes amid some analysts tipping better days ahead for the global lithium company.

    Allkem shares have shed 22% since market close on 27 May and are currently trading at $10.61. That’s 5.15% higher than Friday’s close.

    For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen around 11% over the last month.

    So could this lithium explorer’s fortune turn around?

    What’s the outlook for the Allkem share price?

    Allkem is a lithium producer with projects in Argentina, Western Australia, Japan, and Canada. Lithium is an essential component in electric vehicle (EV) batteries.

    Multiple experts are tipping the Allkem share price to rise in the future. Ausbil portfolio manager Luke Smith told Livewire he believes the share is “a buy”.

    Smith said he disagrees with the negative view around lithium lately. By way of background, in early June, Goldman Sachs declared the “battery metals bull market as over for now” and predicted a sharp correction in lithium prices.

    However, Smith has a different view. He said:

    We’ve seen pricing strength, and demand backdrop is extremely strong and strengthening. Allkem, three growth assets, puts it on par with the majors. It’s a buy from us.

    Allkem aims to boost lithium production three-fold by 2026. The company also aims for a 10% share of the global lithium market in the next decade.

    Tom Richardson from Paradice Investment Management also believes the Allkem share price is a “buy absolutely”. He told Livewire:

    I wouldn’t say it’s hot. I would even say that the sector’s been very cold. In fact, it’s the new sector that people love to hate. But it’s absolutely a buy. China is still the biggest buyer in the market, and it looks as though their battery production actually is inflecting up.

    Morgans has recently placed a $16.83 price target on Allkem shares with an add rating, as my Foolish colleague James reported. This is a 66.8% upside on the current share price.

    Morgans analysts said:

    We maintain our add rating given the strong growth outlook for the company. Allkem’s diverse products and geographical mix adds opportunities to capture value as the market evolves.

    Share price snapshot

    The Allkem share price has exploded 65% in the past 12 months but remains roughly even year to date.

    In comparison, the S&P/ASX 200 Materials Index has lost around 9% in the past year and nearly 7% year to date.

    Allkem has a market capitalisation of about $6.7 billion based on its current share price.

    The post Why these fundies say the Allkem share price is ‘absolutely a buy’ appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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.

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  • Link share price pushes higher despite revised takeover offer

    Business meeting

    Business meeting

    The Link Administration Holdings Ltd (ASX: LNK) share price is pushing higher on Monday morning.

    At the time of writing, the administration services company’s shares are up 1.5% to $3.75.

    What’s going on with the Link share price?

    This morning Link provided the market with an update on the Dye & Durham takeover approach. This follows an update earlier this month that revealed that the ACCC had concerns over the approach due largely to Link’s ownership in PEXA Group Ltd (ASX: PXA).

    According to the release, Link has received a letter from Dye & Durham stating that it is considering providing an undertaking to the ACCC in order to obtain approval.

    However, in light of this and the current state of the financial markets, Dye & Durham is reducing its takeover offer by approximately 22% from $5.50 per share to $4.30 per share.

    Other than a reduction in the offer price, Dye & Durham is not making any further amendments or alterations to the proposal. This means that if the suitor reaches an agreement to sell its BCM business, shareholders will be entitled to receive any net consideration received up to 12 months after the implementation of the scheme and up to 13 cents per Link share.

    What now?

    The Link board has advised that it will consider Dye & Durham’s request. This will include obtaining advice from its financial, legal and tax advisers.

    After which, it will provide shareholders with an update in the coming days. This includes any updates to the scheme timetable previously announced and the timing of the scheme meeting, which is currently scheduled for 13 July.

    All in all, this takeover may not be dead. Though, longer term shareholders may not be too impressed with the reduction in value. So, the shareholder vote, if it happens, will be an interesting one.

    The post Link share price pushes higher despite revised takeover offer appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Link Administration Holdings Ltd right now?

    Before you consider Link Administration Holdings Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Link Administration Holdings Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 Link Administration Holdings Ltd. 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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  • Why is the Carsales share price frozen on Monday?

    A group of friends push their van up the road on an Australian road.A group of friends push their van up the road on an Australian road.

    The Carsales.com Ltd (ASX: CAR) share price has been put in the freezer as the company prepares to announce news of a capital raise.

    The Carsales share price is halted at its previous closing price of $20.76.

    Let’s look at what’s going on with the Australian online automotive, motorcycle, and marine classifieds business’ stock on Monday.

    Why is the Carsales share price in the freezer?

    Carsales’ stock has been halted today as the company prepares to announce news of a pro-rata accelerated non-renounceable entitlement offer.

    The stock is expected to return to trade when the company announces the completion of the offer’s institutional component.

    If such news doesn’t break in the coming days, Carsales’ shares are expected to resume trading as normal on Wednesday morning.  

    The last time the market heard price-sensitive news from the company was way back in February. Then, it released its earnings for the first half of financial year 2022.

    The company held around $91 million in cash and equivalents at the end of December. It also had $643 million in borrowings.

    The last time the company underwent a capital raise was in mid-2021.

    Then, it raised around $600 million to partially fund the acquisition of a 49% interest in Trader Interactive. The offer – which saw new shares handed out for $17 apiece – received strong support. It boasted a take-up of around 83% by eligible institutional shareholders.

    The Carsales share price has slipped nearly 19% since the start of 2022. Though, it’s still 6% higher than it was this time last year.

    The post Why is the Carsales share price frozen on Monday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Carsales.com Ltd right now?

    Before you consider Carsales.com Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Carsales.com Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • These are the 10 most shorted ASX shares

    most shorted ASX shares

    most shorted ASX sharesOnce a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share despite its short interest falling meaningfully week on week to 15.2%. There are concerns that rising living costs could impact consumer spending on leisure travel and stifle the recovery.
    • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest drop to 12.6%. Short sellers won’t have been happy to see this betting technology company’s shares jump last week after announcing a share buyback.
    • Nanosonics Ltd (ASX: NAN) has short interest of 12%, which is down slightly week on week. Short sellers have been going after this medical device company due to concerns over changes to its sales model in the United States.
    • EML Payments Ltd (ASX: EML) has short interest of 10.1%, which is up meaningfully week on week. Short sellers have been loading up on this payments company’s shares since the release of a surprisingly poor trading update.
    • Block Inc (ASX: SQ2) has short interest of 9.8%, which is up week on week once again. This mirrors the short interest of the company’s shares on Wall Street.
    • Regis Resources Limited (ASX: RRL) has short interest of 8.9%, which is down slightly week on week. This short interest appears to have been driven by concerns over labour shortages, cost pressures, and lower grades.
    • PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.8%. This medical device company’s shares are down materially over the last 12 months following a disappointing operating performance.
    • Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down week on week. There are concerns that this poultry company’s profits could be squeezed by higher input costs.
    • PointsBet Holdings Ltd (ASX: PBH) has entered the top ten with short interest of 8.4%. Short sellers may be regretting this one after the sports betting company’s shares rocketed last week following a strategic investment.
    • Webjet Limited (ASX: WEB) has sneaked back into the top ten with short interest of 8.1%. Fears that cost of living pressures could delay the travel market recovery are weighing on sentiment.

    The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 Betmakers Technology Group Ltd, Block, Inc., EML Payments, Nanosonics Limited, POLYNOVO FPO, and Pointsbet Holdings Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, Pointsbet Holdings Ltd, and Webjet 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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  • 3 ASX lithium stocks this fund manager is holding despite sector pullback

    a man wearing a suit holds his arms aloft with a smile on his face attached to a large stylised lithium battery with green charging symbols on it.

    a man wearing a suit holds his arms aloft with a smile on his face attached to a large stylised lithium battery with green charging symbols on it.Leading ASX lithium stocks have easily outpaced the benchmark returns for longer-term shareholders.

    Here’s what we mean.

    If you’d bought shares in Allkem Ltd (ASX: AKE) in June 2017, you’d be sitting on a gain of 192%. Over that same five years, the IGO Ltd (ASX: IGO) share price is up 222%, while ASX lithium stock Mineral Resources Ltd (ASX: MIN) has soared 344%.

    For some context, the All Ordinaries Index (ASX: XAO) is up 17% in five years.

    A turbulent month

    More recently, though, ASX lithium shares’ strong gains have reversed. This comes as investors mull reports that an abundance of investment in exploration and production facilities could see the lithium price slide in the medium term.

    Those concerns have seen the Allkem share price tumble 28% over the past month. Over the same period, the Mineral Resources share price fell 21% while IGO lost 17%.

    The All Ordinaries is down 8% over the month.

    But the recent pullback in ASX lithium stocks hasn’t dissuaded the portfolio manager of the Quest Long Short Australian Equities Fund, Richard Dixon.

    All 3 ASX lithium stocks are generating significant cash flows

    Addressing the three ASX lithium stocks we looked at above, Dixon said (as quoted by The Australian Financial Review):

    We have held Allkem for many years and also hold IGO and Mineral Resources. All three are in production and are generating significant cash flows as spot prices have surged due to strong EV (electric vehicle) demand.

    Allkem is the only lithium pure play of the trio, but it is a diversified producer with major expansion plans that can be easily funded from existing cash flow.

    Dixon is more cautious when it comes to earlier-stage ASX lithium stocks. He said:

    We are avoiding lithium developers at this stage of the cycle. The recent correction has re-established value as the producers are only pricing in less than a third of current spot prices for the next few years, despite the positive supply-demand outlook.

    The post 3 ASX lithium stocks this fund manager is holding despite sector pullback appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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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  • Sun Cable moves another step closer to its day in the sun

    Builder looking at ipad standing in front of solar panels

    Builder looking at ipad standing in front of solar panels

    Final approval for the huge solar power project Sun Cable is getting closer after passing its latest hurdle.

    Infrastructure Australia has called the Sun Cable project “investment-ready”, according to the Australian Financial Review.

    For readers wondering what Sun Cable is, it claims to be developing the world’s largest solar energy infrastructure network, making it possible to power whole cities with renewable energy.

    The company explains its Australia-Asia Power Link will harness and store solar energy from one of the most reliably sunny places on the planet, the Northern Territory of Australia. It will be available for ‘24/7’ transmission to Darwin and Singapore via a high voltage direct current (HVDC) transmission system. This project comes with planned battery storage. It will be capable of supplying up to 15% of Singapore’s total electricity needs.

    The plan to supply Darwin and Singapore involves a 5,000 km transmission system. As such, it’s a massive undertaking.

    Latest tick of approval for Sun Cable

    According to the AFR, the $35 billion Sun Cable project has been deemed “investment-ready” by Infrastructure Australia. This move means that it can now potentially receive funding from government agencies, such as Northern Australia Infrastructure Facility and Clean Energy Finance Corporation and, potentially, Export Finance Australia.

    Sun Cable managing director David Griffin said (as quoted by AFR):

    Now that we have passed this milestone with IA we’re at the start of a process to ramp up our financing efforts, for equity and debt for the project. We will be needing support from a wide range of lending entities and we will look to all those opportunities.

    Griffin thinks there is “strong industrial demand” for power in Darwin, as well as in Singapore. It could cut the cost of electricity in Darwin by around 12%.

    It was reported the export revenue of this project could amount to $2 billion a year, starting in 2028. That’s reportedly around the same size as Australia’s dairy industry.

    When will this start? Construction could start in 2024, allowing electricity to be supplied to Darwin in 2027 with the plan for full operations by 2029.

    Once complete, it could replace Singapore’s imported gas and help the country reduce its reliance on fuel.

    How does this relate to ASX shares?

    Sun Cable is not an ASX share. Though, in theory, there’s a small chance in the future that it could become an ASX company. However, it certainly puts the spotlight on ASX renewable shares, illustrating how large projects have the ability to decarbonise the region.

    There are a number of ASX shares that are involved with renewable energy such as Meridian Energy Ltd (ASX: MEZ), Mercury NZ Ltd (ASX: MCY), Infratil Ltd (ASX: IFT), and Genesis Energy Ltd (ASX: GNE).

    There are also other names such as Fortescue Metals Group Limited (ASX: FMG) that are getting involved with green energy efforts. Fortescue’s Andrew Forrest is one of the individuals reportedly involved with the Sun Cable project.

    The post Sun Cable moves another step closer to its day in the sun appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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.

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  • Women investors often outperform men, and here’s the simple reason why

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

    A woman puts money in her piggy bank all rugged up for the winter cold.

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

    For the last several decades, a curious statistic has kept popping up in various studies all over the world. It seems women tend to generate a consistently higher rate of return than men when it comes to investing.

    This was first reported by a research team from the University of California at Berkeley. The research found that, out of 35,000 brokerage accounts observed over six years, the female investors outperformed the males by over a percentage point.

    As if a sample population of that size wasn’t enough, several other research projects have reported similar findings, most recently Fidelity. It found that out of a group of 5 million Fidelity customers, women outperformed men by nearly half a percentage point over a 10-year period.

    Those percentages might not sound like a substantial outperformance, but over decades, the result can be tens of thousands of extra dollars in your account.

    The reason behind the outperformance

    Vanguard’s 2022 How America Saves report sheds light on the disparity by explaining that women tend to trade 50% less than men. In other words, men are moving in and out of positions at a 50% higher rate than women.

    That might not be the only reason behind the disparity in returns. But the fact that men are trading stocks at a much higher rate has to be one of the main drivers.

    Why overtrading hurts your portfolio

    Investing is a unique discipline in that the more you “do things,” the worse your performance tends to be.

    The late founder of the Vanguard Group, Jack Bogle, talked about the harm trading does to returns in his book The Clash of the Cultures: Investment vs. Speculation, where he attributes it to mutual fund underperformance: “In the mutual fund industry, for example, the annual rate of portfolio turnover for the average actively managed equity fund runs to almost 100%, ranging from a hardly minimal 25% for the lowest turnover quintile to an astonishing 230% for the highest quintile.”

    100% portfolio turnover means the portfolio looks entirely different from one year to the next. If the goal is to own great businesses for long periods of time, it’s no wonder mutual funds have underperformed with astronomically high turnover rates.

    Trading deactivates your greatest advantage

    The biggest reason to trade minimally is because the more you trade, the less compounding your portfolio will experience. Compound interest works in favor of patient investors because it starts slowly but snowballs over long periods of time.

    Even the greatest investor of our time, Warren Buffett, earned 99% of his wealth after his 50th birthday, which demonstrates how incredibly powerful compound interest is if you’re patient enough to experience it.

    Unfortunately, many investors are more interested in chasing the next sector or stock they think will blow up in the near term than in holding high-quality companies for the long term.

    Bogle took this to heart as he pioneered low-loss, low-turnover index funds and frequently made statements like this: “Every piece of data that’s ever been produced says that trading is the investor’s enemy. The more you trade, the less you make.”

    Conclusion: Invest like a woman

    I’m sure there are deeper psychological or behavioral conclusions we could draw from the gender disparity in investment returns, but for us Fools, the message that is screaming at us is to think long and hard before tinkering with our portfolios.

    If there is an inversely proportional relationship between trading and portfolio performance, then we should all strive to invest more like women do. And unlike many things in life, fortunately that means doing significantly less instead of more. 

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

    The post Women investors often outperform men, and here’s the simple reason why appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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.

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