The Dateline Resources Ltd (ASX: DTR) share price has been placed on ice today.

This comes after the mineral exploration company’s shares rocketed 33.64% to 14.7 cents during early morning trade.

Why are Dateline Resources shares frozen?

Investors will have to wait for a pending announcement by the company before Dateline Resources shares reopen for trading.

According to the release, the company is preparing to make an announcement in relation to a capital raising.

Management advised it needs the “necessary time to plan and secure commitments from sophisticated and professional investors.”

As such, the requested trading halt will remain in place until Thursday 9 June or following the release of the announcement, whichever comes first.

A possible catalyst as to why Dateline Resources shares surged earlier today could be investor excitement regarding the company’s drilling results.

Yesterday, Dateline Resources received the final assay results for drill hole CM22-05 at its Colosseum gold project in California.

The highlights included a strike of 100.6 metres at 4.16g per tonne of gold from a depth of 79.24 metres.

A quick look at Dateline Resources

Australian-based mineral exploration company, Dateline Resources is focused on gold mining and exploration activities in North America.

The company wholly owns the Gold Links and Green Mountain Projects in Colorado, United States.

Furthermore, the Colosseum Gold Mine in California was acquired last year.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County.

So far, the asset has produced approximately 344,000 ounces of gold, with significant potential for further gold mineralisation.

Dataline Resources has also identified radiometric anomalies which could lead to rare earth mineralisation at the southern end.

About the Dateline Resources share price

Over the past 12 months, Dateline Resources shares have surged by 70% following a boom in gold prices.

Based on valuation grounds, the company has a market capitalisation of roughly $48.74 million, with approximately 443.06 million shares outstanding.

The post Why did the Dateline Resources share price just pop 34% then stop? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares defying today’s sell-off to leap higher
• When will it end? Zip share price plummets again on Tuesday
• Magellan share price lifts amid buyback speculation
• ASX shares investor faces 10 years’ jail: This is what he did
• If the future of digital payments is crypto, then this long-time internet darling could soar

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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It’s a rough day on the market for many S&P/ASX 200 Index (ASX: XJO) shares.

Right now, the index is recording a 0.87% slump with all 11 sectors also in the red.

But not all ASX 200 shares are suffering. These three are currently trading in the green on Tuesday.

3 ASX 200 shares recording gains on Tuesday

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is recovering from yesterday’s near-14% tumble.

The fall was brought on by a disappointing funds under management update and news the company will soon be dropped from the S&P/ASX 100 Index (ASX: XTO).

Right now, stock in the ASX 200 funds management business is swapping hands for $13.15, 2.33% higher than its previous close.

Thus, Magellan’s Tuesday gain might be a simple market correction. It might also be due to expectations an on-market buyback could kick off soon.

One expert is reportedly calling for the company to begin the buyback promised in March following the multi-year low recorded by the Magellan share price yesterday.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is also in the green on Tuesday, gaining 3.53% to trade at $5.86.

There’s been no news from the ASX 200 copper share today. In fact, the last time the market heard word from Sandfire Resources was way back in April.

However, the price of copper did rise overnight. The metal’s value lifted 2.6% to reach US$9,743 per tonne, according to CommSec.

The Lottery Corporation Ltd (ASX: TLC)

The final ASX 200 share recording a notable gain on Tuesday is The Lottery Corporation. Stock in the ASX newbie is currently trading for $4.49 apiece – representing a 1.58% gain.

There’s been no news from the Tabcorp Holdings Limited (ASX: TAH) spin-out to explain its gains.

Though, it’s worth noting that prior to today, The Lottery Corporation suffered a six-session long losing streak.

The post 3 ASX 200 shares defying today’s sell-off to leap higher appeared first on The Motley Fool Australia.

More reading

• Magellan share price lifts amid buyback speculation
• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Why is the Magellan share price tumbling 10% on Monday?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

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.

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The Zip Co Ltd (ASX: ZIP) share price is sliding.

Again.

Shareholder faith is certainly being tested with dip buyers taking a bath as the Zip share price is down 9.8% in early afternoon trade.

Zip shares closed yesterday at 77 cents apiece and are currently trading for 69 cents.

What’s going on with the Zip share price?

The buy now, pay later provider (BNPL) has come under sustained selling pressure since hitting all-time highs of $12.35 on 19 February last year.

Since that milestone, the Zip share price has collapsed 94.1%. It is also down 90% over the past year.

Buy the dip buyers aren’t feeling the joy, with Zip shares now posting six consecutive days of losses. Barring a miraculous turnaround in afternoon trading, the company will end the day at its ninth multi-year low in the past month alone.

In fact, you have to go back to December 2017 to find Zip shares at a lower price than today.

But they are not the only BNPL company struggling.

Why are BNPL shares selling off?

The wider BNPL sector has come under intense selling pressure over the past 12 months.

Sezzle Inc (ASX: SZL) shares, for example, are down 95% over that time, while industry giant Block Inc (ASX: SQ2) – owner of Afterpay – is down 36% over the 12 months.

The companies have all faced stiff headwinds from fast-rising inflation and the resulting interest rate rises.

Many, including Zip, have also seen their bad debts increase. Some analysts say the BNPL companies have not done enough to ensure that clients taking out small installment loans for purchases will be able to make those repayments.

With the Reserve Bank of Australia (RBA) flagged to most likely hike the official cash rate again today, you can see why the Zip share price is again deep in the red.

Shares are likely to remain under pressure until central banks begin easing back on the current monetary tightening cycle.

The post When will it end? Zip share price plummets again on Tuesday appeared first on The Motley Fool Australia.

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• Zip share price dips to yet another 4-year low on Monday
• The carnage continues: Why the Zip share price has hit 7 multi-year lows in a month
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
• Why is the Zip share price sinking yet again on Thursday?
• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 Magellan Financial Group Ltd (ASX: MFG) share price is bouncing back from yesterday’s carnage amid calls for the company to kick off its promised on-market buyback.

Bell Potter’s Richard Coppleson reportedly believes the “whole market will now be watching” the company, expecting it to announce the start of the buyback aiming to snap up 10 million shares.

At the time of writing, the Magellan share price is $13.28. That’s 3.35% higher than the near-eight-year low it closed yesterday’s session at.

For context, the S&P/ASX 200 Index (ASX: XJO) isn’t having such a great day. It’s currently down 0.78%.

Let’s take a closer look at the commitment Bell Potter is reportedly calling for the company to make.

Will Magellan kick off its promised buyback?

Coppleson – Bell Potter’s head of institutional sales and trading – believes now is the time for Magellan to kick off its on-market buyback after its share price slipped to a multi-year low yesterday, reports The Australian.

The stock took another hit on Monday when the company announced its funds under management had tumbled 5.2% in May, reaching $65 billion.

Additionally, news the company will be removed from the S&P/ASX 100 Index (ASX: XTO) later this month dropped after Friday’s close and likely weighed on its shares yesterday.

The resulting fall could have brought about the best time for the company to start snapping up its own shares. And not doing so is “sending a message”, according to Coppleson.

“I think they have to go through with it soon – it’s a joke if they don’t action it at all – otherwise the market will crucify them for saying they would but not going through,” Coppleson said, courtesy of The Australian. He continued:

They cannot sit back after their stock has collapsed from $21.70 [when the company first flagged a buyback] and still not buy a share …

It’s sending a message to the market they still think their stock is still too expensive and they are waiting for it to drop further before they buy back any stock.

The company announced the planned buyback in March. It’s expecting to buy up to 5.4% of its outstanding shares, using cash from reserves to do so.

Though, it noted the timing and actual number of shares purchased would depend on the company’s share price, market conditions, and other factors.

Magellan share price snapshot

Today’s gains included, the Magellan share price is still 30% lower than it was at the start of 2022.

It has also slipped 70% since this time last year.

The post Magellan share price lifts amid buyback speculation appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Why is the Magellan share price tumbling 10% on Monday?
• What to do with these 3 pummelled ASX shares: advisor
• Can the Magellan share price stage a comeback in June?

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.

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An ASX shares investor who used 13 different stock trading accounts has pleaded guilty to market manipulation.

Gabriel Govinda on Monday pleaded guilty to a total of 42 charges relating to manipulation of listed shares and illegal dissemination of information on such manipulation.

The Australian Securities and Investments told the court that Govinda was known on online stock tip forums as Fibonarchery, and publicised increased demand for certain stocks.

He would set this up by putting in many fake bids on shares using his many stockbroking accounts.

Govinda also sold and bought ASX shares between the different accounts that he possessed, in a practice known as “wash trading”.

The investor now faces up to a 10-year prison sentence. In addition, he can also cop a fine of $765,000.

Govinda’s offences occurred over 2014 and 2015. In 2019, the maximum penalty was increased to 15 years’ jail.

Accused posted ‘dummy bids are all part of the fun and games’

The investments watchdog accused Govinda of doing this in an attempt to “pump and dump” — artificially drive up the share price in order to sell them for a profit.

This is the first time in Australian history that a person has been convicted of such charges under s1041D of the Corporations Act.

In one message on a Hotcopper forum, Govinda said “dummy bids are all part of the fun and games and cat and mouse of the stock market!”.

With many retail investors joining the share market since the onset of the COVID-19 pandemic, ASIC had warned many times about illegal “pump and dump” practices.

“ASIC has recently observed blatant attempts to pump share prices, using posts on social media to announce a target stock, a designated time to buy and a target price or percentage gain to be reached before dumping the shares,” stated the commission.

“In some cases, posts on social media forums may mislead subscribers by suggesting the activity is legal.”

Govinda’s case has been adjourned to 29 July for a mention hearing.

The Commonwealth Director of Public Prosecutions is acting as prosecutor after an ASIC investigation and referral.

The post ASX shares investor faces 10 years’ jail: This is what he did appeared first on The Motley Fool Australia.

More reading

• If the future of digital payments is crypto, then this long-time internet darling could soar
• Here’s why the Perenti share price is rocketing 18% today
• Will June be a good month for the Transurban share price?
• Is now the time to buy oil stocks?
• Yancoal share price lifts as potential takeover slammed

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.

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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.

While many investors may not realize it yet, PayPal Holdings, Inc. (NASDAQ: PYPL) has been steadily laying the groundwork to profit from any future scenario in which cryptocurrencies play a major role in digital payments worldwide. The biggest step, of course, was the company’s decision in October 2020 to enable users to buy, hold and sell a handful of cryptos, including Bitcoin (CRYPTO: BTC), directly via the PayPal platform. At the time, the decision was widely hailed as proof that crypto was going mainstream. 

Despite a pullback in the broader crypto market this year, PayPal seems determined to march ahead with its decision to embrace the crypto future of digital payments. At this year’s World Economic Forum in Switzerland, PayPal was very bullish on the launch of new cryptocurrency and blockchain services. 

Where is PayPal now with crypto?

Right now, there are two key components to PayPal’s crypto strategy. One of these is the consumer-facing side. By making it possible for users to buy and sell Bitcoin, PayPal (which owns Venmo) is arguably the best on-ramp for everyday people to learn about, explore and experiment with crypto. Many people have a long relationship with PayPal dating back to the first internet boom and have been using PayPal for everything from e-commerce transactions to sending out invoices for their small businesses. Moreover, PayPal has simplified crypto to the point where you don’t have to worry about opening new accounts, storing new passwords or creating new digital wallets.  

While this transaction activity from consumers might not contribute significantly to bottom-line earnings now, there is a potential indirect psychological effect that’s worth noting. In late 2020, Mizuho Securities surveyed 400 early crypto adopters on PayPal and found that a majority of them had more engagement overall than regular users, and were more likely to view PayPal as the center of their digital payment world. In other words, crypto could be the “hook” that attracts digitally savvy users and incentivizes them to use PayPal more often.

The other key component of the strategy is the merchant-facing side. If PayPal makes it easy for merchants to accept crypto as a form of payment, that could be a game-changer in terms of transaction volume. Just think about all the high-profile luxury brands (including Gucci, Balenciaga and TAG Heuer)  that have recently announced they are now accepting crypto payments. Adoption in the luxury, high-end of the market will eventually spill over into other industries, such as travel and automotive. After all, thanks to Elon Musk, it’s no longer unthinkable to pay in Bitcoin for a shiny, new $50,000 vehicle.

Is PayPal really committed to crypto?

PayPal appears to be dedicated to the future of digital currencies. In fact, as far back as 2014, PayPal was debating the merits of enabling users to send Bitcoin to each other.  PayPal has also invested in blockchain companies, filed blockchain-related patents and partnered with companies like Coinbase Global, Inc. (NASDAQ: COIN). And, in 2019, PayPal was one of the first companies to join the Libra Association, which pledged to create a new global digital currency built on blockchain technology. 

And that’s where things get really interesting, because rumors have been floating around for nearly six months that PayPal is on the cusp of introducing a new stablecoin based on the U.S. dollar called PayPal Coin. In layperson’s terms, a stablecoin is a cryptocurrency that is pegged 1:1 to another currency or commodity. This reduces significantly the risk of price volatility for online transactions. Consider a hypothetical case where you have saved $10,000 in crypto for an amazing summer vacation. If you have your money in Bitcoin, you never really know how much your Bitcoin is going to be worth 1 day, 1 week or 1 month from now. But with a stablecoin, you know that your $10,000 in crypto is going to be worth $10,000.  Of course, the big caveat here is that the recent meltdown of Terra (CRYPTO: LUNA) has cast a dark pall over the idea of stablecoins in general.

A new investment thesis for PayPal

If you take a big picture view, the investment thesis for PayPal becomes very exciting. If cryptocurrencies really are the future of online payments and transactions, then PayPal is well-positioned for future growth on a massive, worldwide scale. 

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

The post If the future of digital payments is crypto, then this long-time internet darling could soar appeared first on The Motley Fool Australia.

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Fool contributor Dominic Basulto owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Coinbase Global, Inc., and PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool Australia owns and has recommended Bitcoin and Terra. 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.

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The Perenti Global Ltd (ASX: PRN) share price is rocketing higher today, up 18% in late morning trade.

Shares of the Western Australia-based global mining services group closed yesterday at 70 cents and are currently trading for 82 cents, having hit a high of 86 cents earlier in the day.

Here’s what’s driving ASX investor interest today.

What did the mining services company report?

The Perenti share price is off to the races after the company announced it had been awarded a contract for all of the underground development and production works for Evolution Mining Ltd’s (ASX: EVN) Cowal Underground project, located in New South Wales.

Perenti’s Barminco underground mining business will carry out the work. The division is already conducting diamond drilling services at Cowal alongside other works, with the new contract reported to “significantly expand” its scope at the project.

Commenting on the contract award from ASX 200 gold miner Evolution Mining, Perenti CEO Mark Norwell said:

The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022.

This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.

Judging by the soaring Perenti share price, investors appear to agree.

Norwell said Perenti would begin investing capital in the project shortly with the company seeing increased revenues and earnings in the 2023 financial year (FY23). He still expects leverage for FY22 to be in line with the company’s previous forecasts.

“The project represents a significant improvement to our Australian underground earnings base and will generate strong project cash flows and returns in support of our capital allocation and investment,” Norwell added.

Perenti share price snapshot

With today’s big intraday gains factored in, the Perenti share price is up 23% over the past 12 months. That compares to a full-year loss of 2% posted by the All Ordinaries Index (ASX: XAO).

The post Here’s why the Perenti share price is rocketing 18% today appeared first on The Motley Fool Australia.

More reading

• Can the Evolution Mining share price turn the corner in June?
• 5 things to watch on the ASX 200 on Tuesday
• Why did the Evolution share price fall in a hole in May?
• Why did these brokers upgrade the Evolution Mining share price to buy?
• 5 things to watch on the ASX 200 on Thursday

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 Transurban Group (ASX: TCL) share price is falling today, currently down 1.93% at $14.23. However, it remains 0.57% in the green over the last month of trade.

There’s been somewhat of a tug-of-war at both ends of the Transurban investment debate in recent weeks, with brokers on each side of the fence chiming in with their outlook.

Meanwhile, in broad market news, the S&P/ASX 200 Industrials Index (ASX: XNJ) has glided down 1% from the open today, extending losses this year to date to 3%.

So what’s next for the toll road operator’s shares? Let’s see what the brokers are saying.

Consensus split on Transurban outlook

While market sentiment has pushed to bullish regarding Transurban, analysts remain split on its next moves.

Investors have rallied the Transurban share price from a low of $12.12 in February to its current levels, closing as high as $14.77 in that time.

However, analysts are split at 40% each for buy and hold calls on the stock, with the remaining 20% urging clients to sell, according to Bloomberg data.

Meantime, the Credit Suisse team recently downgraded its rating on the company to neutral from outperform.

Despite Transurban’s relatively stable and predictable cash flows, the broker reckons it lacks pricing power amid the latest inflation outlook.

That, and the company’s cost on its debt is an average floating 4%, meaning it is likely to rise as interest rates on corporate debt rise.

Rates sensitivity is likely to remain an issue for Transurban, Credit Suisse says, amid these higher rates. Estimates on debt refinancing increase “debt cost[s] by around 4%, around 10%, and 15% in FY23, FY24, and FY25 respectively”.

Meanwhile, analysts at JP Morgan remain constructive on the Transurban share price, gaining “increased comfort” from the company’s March 2022 traffic update.

“Although this rebound is in part due to economies reopening and mobility returning, some structural factors (including heavy/commercial vehicle resilience, private vehicles over public transport) are at play and likely to drive continued growth, in our opinion,” the broker said.

Unlike its counterpart at Credit Suisse, the JP Morgan team sees a high correlation in Transurban’s link to inflation, a bullish catalyst in the short-term:

We highlight TCL’s favourable concession profile (both tenure and terms) with escalators often rising at the higher of inflation or 4%. With inflation anticipated to breach circa. 5% for three quarters in CY22 with approximately two-thirds of TCL’s network raising tolls quarterly, we believe this is an incremental source of upside near term.

The consensus price target for Transurban is $14.19 per share, per Bloomberg data. At its current levels, the upside appears to be limited.

Transurban share price snapshot

In the last 12 months, the Transurban share price has flatlined and is the same as it was a year ago.

It is up by 2.15% this year to date and by 3% over the past six months.

The post Will June be a good month for the Transurban share price? appeared first on The Motley Fool Australia.

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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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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.

There’s no question the $4 trillion energy sector has been home to the best-performing stocks on the market recently.

Over the past year, energy stocks have gained 72% on average while the next closest sector, utilities, rose less than 15%. In comparison, the broad market S&P 500 Index (SP: .INX) index lost 1%, and that started long before Russia invaded Ukraine.

It hasn’t been much different in 2022 either, with the oil and gas stocks, in particular, leading the way. Energy is again on top with a 58% gain as utilities again ranked second with a less than 5% increase in value.

Yet over longer periods, the high cost of exploration and resource exploitation has made the energy sector a lagging sector for investors.

Technology stocks were the market darlings only until recently and over the past decade energy stocks ranked dead last with simple double-digit increases when virtually every other sector was sporting triple-digit gains. 

Oil and gas stocks are the stars these days, but is now the time to buy them?

Beating up on big oil

President Joe Biden recently said he hoped Americans could come out of the current energy crisis less dependent on fossil fuels. Alternative energy sources are already a rising component of the world’s energy consumption, about 30% of the total, and that number is continuously growing.

Where the energy sector accounted for 29% of the stocks weighted in the S&P 500 in 1980, today they represent just 3.7%. Back then, seven of the top 10 stocks in the popular index were oil and gas stocks, led by ExxonMobil (NYSE: XOM); today there are none. 

And in a sign of how the world is further changing, Exxon was booted out of the Dow Jones Industrial Average in 2020 — a spot it has held for nearly 100 years — leaving only Chevron (NYSE: CVX) to represent the industry. Oil and gas stock investing isn’t what it used to be.

Oil, oil everywhere

Yet that doesn’t mean you shouldn’t invest in the energy sector. It is simply too ingrained in the global economy to disappear.

For example, the U.S. Energy Information Association forecasts global “conventional” light-duty vehicles will nearly double from 1.31 billion in 2020 to 2.21 billion at their peak in 2038, but that will still far outstrip electric vehicle usage.

General Motors (NYSE: GM) has said it wants to produce only electric vehicles (EVs) by 2035 while Ford Motor Company (NYSE: F) is shooting for 40% of its fleet.

Tesla (NASDAQ: TSLA), in contrast, says it wants to sell 20 million EVs by 2027. However, the EIA predicts EV usage will grow from just 0.7% of the global LDV fleet to 31% in 2050, or just 672 million vehicles. Not an insignificant number, but still trailing gas-powered vehicles.

Petroleum products account for about 90% of all energy usage in the U.S. transportation sector, with gasoline accounting for 56% of the total.

Distillates, primarily diesel fuels, accounts for another 24%, and jet fuel, 9%. And jet fuel usage is growing rapidly with the EIA expecting consumption to increase at a faster rate than any other liquid transportation fuel through 2050.

And fossil fuels are in almost every product consumers use today, with petroleum appearing in everything from cosmetics and personal care products, to everyday items such as smartphones, computers, TVs, shoes, sporting goods, flooring, furniture, and medical supplies.

Grand View Research estimates the global petrochemicals market size was valued at $556.1 billion in 2021 will grow at a 6.2% compound annual rate through 2030, driven primarily by construction, pharmaceuticals, and automotive needs, as well as our industrial economy.

And though petroleum itself is not as important of a component for plastics manufacturing, natural gas and natural gas processing is. 

Still a gusher of an opportunity

The chances that alternative energy replaces fossil fuels for the foreseeable future are incredibly low. That’s why I think the energy sector generally, and oil stocks in particular, are great buys, even today at their elevated levels.

Fossil fuels will be around for a long, long time meaning investors are to look very closely at some of the best energy stocks in the space as a long-term growth investment.

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

The post Is now the time to buy oil stocks? appeared first on The Motley Fool Australia.

More reading

• Why did the Tesla share price just dump 9%?
• Why Tesla stock did a U-turn today
• The Tesla share price has rallied 18% in less than a fortnight. What’s going on?
• Why Tesla stock is still falling today
• Why the Tesla share price stalled on Tuesday

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

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

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The Yancoal Australia Ltd (ASX: YAL) share price is in the green after the company condemned a potential takeover bid.

Chinese state-owned entity Yankuang Energy Group – Yancoal’s parent company and controlling shareholder – recently flagged its intention to put forward a bid for the ASX-listed company.

It’s expected to offer $5.07 apiece for all Yancoal shares it doesn’t already control.  

At the time of writing, the Yancoal share price is $5.56, 2.39% higher than its previous close.

Let’s take a closer look at the latest on the potential takeover talks.

Yancoal share price on the rise

The Yancoal share price is gaining this morning after an independent board committee deemed Yankuang’s potential acquisition offer wouldn’t be in the best interest of the company’s minority shareholders.

Thus, the company won’t be supporting a $5.07 per share bid or recommending it to shareholders.

However, Yankuang has a large holding in Yancoal – its stake makes up more than 62% of the company.

That means it might only need the support of a few other major shareholders to get a takeover bid across the line.

It’s also worth noting Yancoal hasn’t yet received an official takeover offer or proposal from its major shareholder.

The potential offer was previously expected to be made up of convertible bonds issued by Yankuang Energy. Yancoal noted, that if successful, the offer could see the company de-listed from the ASX and the Hong Kong Stock Exchange.

The independent board committee behind today’s news was appointed by the ASX-listed coal producer. Its advisors included Gilbert + Tobin, advising on Australian legal matters; Freshfields Bruckhaus Deringer, advising on Hong Kong legal matters; and Deloitte Corporate Finance, advising on strategic and commercial matters.

News of a potential takeover bid comes amid a particularly good period for Yancoal and its share price.

Strong energy prices saw the coal company recording record revenue in 2021. On top of that, demand for the black rock has surged in 2022.

The Yancoal share price is currently 99% higher than it was at the start of this year. It has also gained 168% since this time last year.

The post Yancoal share price lifts as potential takeover slammed appeared first on The Motley Fool Australia.

More reading

• Here are the best performing ASX dividend shares so far this year
• Why Appen, Elders, Predictive Discovery, and Yancoal shares are dropping
• Why these ASX coal shares could be ‘bigger than Ben-Hur’: fundie
• Here’s why the Yancoal share price is crashing 15% lower today
• Why are ASX coal shares sliding today?

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

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