At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is having a very subdued day. The benchmark index is currently down a fraction to 6,789.8 points.

Here’s what is happening on the ASX 200 today:

Iress tumbles on CEO exit

The Iress Ltd (ASX: IRE) share price is sinking deep into the red on Tuesday following news that the financial technology company’s CEO is leaving. Iress CEO, Andrew Walsh, is retiring at the start of October after 21 years with the company and 13 years as its leader. Walsh will remain with Iress as a consultant until the end of January 2023. He will be replaced by Marcus Price.

Flight Centre shares tumble

The Flight Centre Travel Group Ltd (ASX: FLT) share price has come under pressure today. Investors have been selling the travel agent’s shares following a lukewarm response from brokers to its guidance upgrade on Monday. This morning Credit Suisse put an underperform rating and $14.00 price target on the company’s shares. Elsewhere, Morgans has warned that Flight Centre’s earnings may not recover to pre-COVID levels until FY 2025.

South32 shares charge higher

The South32 Ltd (ASX: S32) share price is on form on Tuesday. In contrast to Flight Centre, brokers have responded very positively to this mining giant’s latest update. For example, the team at Goldman Sachs has reiterated its conviction buy rating with a $4.90 price target. Elsewhere Citi has retained its buy rating with a $4.90 price target and Macquarie has held firm with its outperform rating with a $5.90 price target.

Best and worst ASX 200 performers

The best performer on the ASX 200 by some distance on Tuesday has been the Zip Co Ltd (ASX: ZIP) share price. The buy now pay later provider’s shares are inexplicably up 15% at lunch on new news. Going the other way, the worst performer has been the Iress share price with an 11% decline. This is in response to the exit of its long-serving CEO.

The post ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend appeared first on The Motley Fool Australia.

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

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

More reading

• Iress share price drops 9% on news of CEO departure
• Could South32 shareholders be in for a $200 million payday?
• 2 ‘good value’ ASX 200 shares offering what investors want right now: expert
• From chasing criminals to ASX gems, why this ex-cop keeps buying in a bear market
• 5 things to watch on the ASX 200 on Tuesday

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

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

Pilbara Minerals Ltd (ASX: PLS) shares were volatile during FY22. And it seems young investors could have been key to some of the company’s strong run.

Earlier in the 2022 calendar year, the Pilbara Minerals share price got close to $4. But by mid-June, it had almost halved to close to $2.

However, since that low, the Pilbara Minerals share price has soared around 25%.

According to Selfwealth Ltd (ASX: SWF) statistics, Pilbara Minerals was the seventh most-traded business on the Selfwealth platform during FY22 with a total trading volume of $322 million.

The Australian Financial Review reports Pilbara Minerals managed to rise 17 places to reach that seventh place. The climb saw the value of the company’s trading volumes increase by 212%.

Certainly, Pilbara Minerals wasn’t the only ASX lithium miner to see a massive increase in demand by Selfwealth users. In fact, lithium made up 14% of all trades. Pilbara’s lithium peers Lake Resources N.L. (ASX: LKE) and Core Lithium Ltd (ASX: CXO) also saw big increases in trade volumes.

The only ASX shares to see more trading volume than Pilbara Minerals shares were: Fortescue Metals Group Limited (ASX: FMG), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Limited (ASX: CSL).

Selfwealth is one of several online brokers that aims to capture market share with cheaper brokerage fees. The broker has around 120,000 users, with ‘millennials’ and ‘gen Z’ making up 71% of its total investors.

The Selfwealth CEO Cath Whitaker was quoted by the AFR:

It doesn’t matter what age group or demographic, [retail investors] are still looking for that healthy return. Our mantra at SelfWealth is ‘here for decades, not days’, and in this time of uncertainty, retail investors are looking for more safe bets, if you like.

Is the Pilbara share price an opportunity?

Macquarie certainly thinks so, with a price target of $4.20. That implies a possible rise of more than 60% on the current share price. The optimism is due to the strong lithium prices that Pilbara Minerals is achieving.

However, the broker Credit Suisse is less optimistic. It has a ‘neutral’ rating, with a price target of just $2.40. It believes the prospect of a global recession and ongoing inflation difficulties could lead to a hit in the demand for electric vehicles, also depressing demand for lithium.

However, both Macquarie and Credit Suisse think that the business is going to generate more profit in FY23 than FY22.

Using Macquarie’s numbers, the Pilbara Minerals share price is valued at under five times FY23’s estimated earnings.

Credit Suisse’s estimated earnings for Pilbara Minerals puts the business at under five times FY23’s projected profit as well.

The post Rocks in their heads? How young investors helped make Pilbara Minerals one of the most popular shares of FY22 appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 lithium shares get busy amid dire supply call
• Up 4% in FY23, what’s next for the Pilbara Minerals share price?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/v3oGyrZ

The Lark Distilling Co Ltd (ASX: LRK) share price is having a strong day on Tuesday.

In morning trade, the distilling company’s shares are up over 5% to $2.85.

Lark Distilling share price higher on quarterly update

• Record quarterly (unaudited) net sales of $6.8 million, up 72% on the prior corresponding period.
• Achieved positive quarterly cash flow of $1.3 million
• Strengthening whisky bank with 2.1 million litres of whisky under maturation
• Balance sheet in a strong position with cash of $16.1 million

What happened during the quarter?

For the three months ended 30 June, Lark Distilling delivered a 72% increase in net sales to a record of $6.8 million. This reflects general improvements to the company’s operating environment and the return to on-premise sales following disturbances experienced in the March quarter.

This took the company’s FY 2022 unaudited net sales to a total of $20.3 million, which is an increase of 57% year on year and in line with guidance.

An even bigger positive was arguably the achievement of positive cash flow during the fourth quarter. Lark reported positive cash flow of $1.3 million for the three months thanks to improved debtor collection cycles and a decline in payments for product manufacturing and operating costs.

At the end of the period the company had 2.1 million litres of whisky under maturation. This is ahead of its previous target of 2 million litres.

The company notes that its whisky bank underpins future sales potential. And while the future potential net sales value of this liquid is variable, the sales price per litre observed within FY 2022 remains within its prior guidance range of +15% to +25% year on year from $216 per litre in FY 2021.

Management commentary

Lark’s managing director and interim CEO, Laura McBain, commented:

We are developing our core range to better meet the needs of customers in Australia. As we launch into export markets we’re also building and managing our whisky bank to ensure continued demand for Lark can be met with the highest quality product.

The launch of Dark Lark in May – as our winter release –achieved strong success and marks our biggest limited release to-date, demonstrating depth of innovation, outstanding marketing and brand execution within Lark.

McBain appears positive on the company’s outlook as it attempts to expand its reach. She said:

The next quarter is particularly exciting as we continue to introduce the Lark brand to new customers, offering targeted limited releases to Lark followers through a disciplined yet innovative approach to marketing. Equally, the Christmas period is always an active period for Lark and will see strong activity across retail, on-premise, e-commerce and our own hospitality venues.

Encouragingly, the enthusiasm of the broader team is clearly observed throughout these quarterly results, and we remain focussed on the momentum within the business.

The post Lark share price soars on record quarter appeared first on The Motley Fool Australia.

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

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

More reading

• Rocks in their heads? How young investors helped make Pilbara Minerals one of the most popular shares of FY22
• Pact share price slides despite Woolies recycled packaging deal
• Iress share price drops 9% on news of CEO departure
• Regis Resources share price loses its shine despite ‘record gold production’
• Andromeda Metals share price surges 15% on ‘significant milestone’

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

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

The Pact Group Holdings Ltd (ASX: PGH) share price is in the red today despite a planned partnership with Woolworths Group Ltd (ASX: WOW).

The recycling company’s share price is down 0.96% so far today, currently trading at $2.07. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.16% higher in late morning trade.

Let’s take a look at the deal between Pact and Woolworths.

Pact to work with Woolworths

The two companies are planning to work together to replace 18,000 tonnes of new plastic with local recycled plastic each year. This is forecast to reduce carbon emissions by 25,000 tonnes.

Pact will supply sustainable packaging made from recycled plastic for Woolworths products including milk bottles, meat trays, and drink bottles.

The partnership involves a multimillion investment in local recycling and manufacturing, according to the companies.

Pact CEO and managing director Sanjay Dayal said consumers and businesses are demanding recycled and recyclable plastic packaging. He added:

Plastic packaging that is designed effectively, that is recyclable and recycled properly in Australia can be used again and again, creating a truly local circular economy for plastics.

Woolworths uses recycled plastic when there is no viable alternative to plastic. Further commenting on the plan, Woolworths format and network development managing director Rob McCartney said:

We’re working hard to remove plastic from packaging like our bakery trays, however it can be necessary to protect quality and food safety in some products – which is why replacing it with recycled plastic is the next best thing.

Pact share price snapshot

The Pact share price has lost more than 41% in the past year, while it has fallen 18% year to date.

In the past month, Pact shares have leapt nearly 9%.

For perspective, the benchmark ASX 200 index has shed about 8% in the past year.

The post Pact share price slides despite Woolies recycled packaging deal appeared first on The Motley Fool Australia.

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

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

More reading

• Iress share price drops 9% on news of CEO departure
• Regis Resources share price loses its shine despite ‘record gold production’
• Andromeda Metals share price surges 15% on ‘significant milestone’
• The Bega Cheese share price is down 39% so far this year but Twiggy is still buying
• Why is the Nitro share price crashing 29% on Tuesday?

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

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

The Iress Ltd (ASX: IRE) share price is down 9.3% to $10.66 in early trading today after the company announced the departure of its CEO and preliminary 1H FY22 results.

In its statement, Iress reaffirmed its FY22 full-year profit guidance based on preliminary unaudited results for the first half.

Iress is a technology company providing software to the financial services industry. Its software is used by more than 10,000 businesses and 500,000 users globally.

Iress share price dives despite reaffirmed guidance

Iress said its 1H FY22 segment profit is expected to be $80.3 million. This is up 6% on the prior comparative period (pcp).

The company reaffirmed its guidance range of $177 million to $183 million for the full year in FY22.

Iress will announce its 1H FY22 results on 18 August during the upcoming earnings season.

New Iress CEO is the former head of PEXA

Today Iress announced the appointment of Marcus Price as its new managing director and CEO, effective from 3 October. He will begin as a non-executive director with the company today.

Price will replace current CEO Andrew Walsh, who is retiring after 21 years with the company and 13 as CEO. He will remain with Iress as a consultant from 3 October until the end of January 2023.

Iress said Price has more than 25 years of experience “leading transformative financial services and technology businesses”.

Price was previously the founding CEO of PEXA Group Ltd (ASX: PXA), which is Australia’s first digital property exchange. He held this role for more than 10 years.

Price has also held senior positions with National Australia Bank Ltd (ASX: NAB) and the Boston Consulting Group, which is one of the world’s largest management consulting firms.

How much will the new Iress CEO get paid?

Essentially, Price’s remuneration will be the same as the current CEO, according to the statement.

Price’s base salary will be $712,736 (including superannuation) plus 13,865 equity rights for FY22 (prorated). The grant of these equity rights will be subject to Iress shareholder approval in or around September.

Price has agreed to a 30% reduction in base salary and equity rights (compared with the current CEO remuneration package) from 3 October 2022 through to 31 December 2024.

In exchange, Iress will issue Price with a one-off $13 strike price options package, converting into Iress shares with a fair value of $1,372,470 exercisable in two tranches from February 2026 and from February 2027.

Iress will also ask shareholders to approve the same performance rights package they approved for Walsh in May 2022. Price will not be eligible for performance rights until 2024.

Iress said: “The cost impact to the company will be neutral, with the fair value of the options equating to the 30% reduction in remuneration agreed by Mr Price.”

What did Iress management say?

Roger Sharp, Chair of Iress, made the following comments:

Andrew has been an outstanding leader and steward of Iress. Since taking over as CEO in 2009, he has been instrumental in building Iress into a highly innovative market leader with a global footprint.

Marcus is ideally placed to steer Iress on the next phase of its journey. He brings tremendous experience in financial services and technology businesses with a demonstrated track record in creating shareholder value.

What did the departing and incoming Iress CEOs say?

Walsh said, “… with the company in such a strong position, I feel the time is right to pursue new opportunities. I am proud to have seen Iress through a period of substantial transformation and growth into what is today a successful global technology business and market leader.”

Price said, “I am certainly looking forward to working with the Iress team as we execute on the 2025 strategy presented to the market last year, including continuing to evolve Iress’ operational model and transition to a platform-based architecture. In addition, we will explore further horizons and ambitions for the business.”

Iress extends share buyback program

Last week, Iress announced an extension of its existing on-market share buyback program.

Iress announced the buyback in July 2021. Back then, Iress was planning to purchase up to $100 million shares in the period to 28 July 2022.

To date, Iress has purchased $70 million in shares. The company said the buyback period “will now continue until the buyback program is completed”.

The Iress share price is down 18.6% in 2022 so far, including this morning’s losses.

The post Iress share price drops 9% on news of CEO departure appeared first on The Motley Fool Australia.

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

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

More reading

• 3 small-cap ASX shares to buy that are actually rising: fund
• These were the best performing ASX 200 shares in June

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

from The Motley Fool Australia https://ift.tt/muno3Ch

The Regis Resources Ltd (ASX: RRL) share price is heading south on Tuesday morning following the company’s June quarter results.

At market open, the gold miner’s shares kicked off at $1.60 apiece, but have since fallen wayside to $1.565 a share, down 2.19%.

Regis Resources share price stutters despite record result

Here are some of the key takeaways that Regis Resources highlighted for the three months ending 30 June 2022.

• Record group gold production of 123.9koz in the June 2022 quarter, up from 103.1koz in the March quarter
• All-in sustaining cost (AISC) of $1,591/oz for the June 2022 quarter compared to $1,574/oz in the March quarter 2022
• Record full-year gold production of 437.3koz at an AISC of $1,556/oz
• Annual gold production within FY22 guidance of 420koz-475koz

What else happened in the period for Regis Resources?

The strong operating result translated into an improved group cash position for the quarter.

Gold sales for the three months stood at 145.2koz at an average price of $2,447/oz for sale receipts of $355 million.

Regis Resources generated total operating cash flow of $134 million, of which $83 million came from Duketon and $51 million from Tropicana. This is well up from a group total of $55 million recorded in the March quarter.

Capital expenditure for the June quarter increased to $67 million from $59 million in the prior period. Expenditure for Exploration and McPhillamys was $16 million.

As at June 30, the company had cash and bullion of $231.3 million, up from the $167.1 million at the end of March 2022.

What did management say?

Regis Resources managing director Jim Beyer touched on the company’s performance, saying:

Delivering a record quarter and record year of gold production is a very pleasing result. The Regis team has overcome a number of challenges throughout FY22 and to deliver gold production within guidance is a testament to their commitment and capability.

With the plant modifications at Duketon complete, resource models performing to expectation and Garden Well South underground coming online, Regis is well positioned to deliver a strong FY23.

What’s next for Regis Resources?

Looking at the near term, Regis Resources provided its guidance and outlook for FY23.

Group production is estimated to come in between 450koz-500koz at an ASIC in the range of $1,525-$1,625/oz.

Key drivers for the increase in FY23 gold production are Garden Well South underground coming online, access to higher grade ore at Havana, and a full year of production through the recently modified mill at Garden Well.

Growth capital in FY23 is projected to come in around $145-$155 million. This will be used for funding open pit stripping at Havana and Ben Hur along with underground development at Rosemont and Garden Well.

Regis Resources expects to continue developing potential options to target gold production of 500koz per year by FY25.

Regis Resources share price summary

In the last 12 months, the Regis Resources share price has tumbled by almost 40%.

Year to date, the company’s shares are down 20%.

Based on today’s price, Regis Resources commands a market capitalisation of roughly $1.17 billion.

The post Regis Resources share price loses its shine despite ‘record gold production’ appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares

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.

from The Motley Fool Australia https://ift.tt/3hX7eQS

The Andromeda Metals Ltd (ASX: ADN) share price is off to the races.

Shares in the ASX resource explorer closed yesterday at 8.9 cents and are currently trading for 10.3 cents, up 15%.

Here’s what’s piquing ASX investor interest this morning.

What’s driving ASX investors to hit the buy button?

The Andromeda Metals share price is surging after the company reported signing a legally binding offtake agreement with Asia Minerals Resources (AMR) to supply halloysite-kaolin from its Great White Kaolin Project.

The agreement with the Vietnam and Hong Kong based AMR is for up to a total of 38,500 tonnes of its Great White KC 90 product over the first three years of production. The company said it will receive a price higher than its Definitive Feasibility Study pricing.

The company said the agreement opens the door to sales into the ceramics sector in Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the United Arab Emirates.

Commenting on the agreement, Andromeda Metal’s managing director, James Marsh said:

This agreement with AMR is a significant milestone for Andromeda as it is the first one for our initial Great White KCM 90 product with a leader in the world of high-quality ceramics, which confirms the quality and value of the unique Great White resource. We look forward to a long and productive relationship with AMR.

Looking ahead, the Andromeda Metals share price could be getting some extra tailwinds from the company’s report that it is progressing with additional negotiations “to lock in strategic offtake agreements” for the balance of its initial Great White plant output. Those agreements will help further de-risk the project.

Andromeda Metals share price snapshot

Despite today’s big jump, the Andromeda Metals share price remains down 46% in 2022. That compares to a year-to-date loss of 12% posted by the All Ordinaries Index (ASX: XAO).

The post Andromeda Metals share price surges 15% on ‘significant milestone’ appeared first on The Motley Fool Australia.

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

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

More reading

• The Bega Cheese share price is down 39% so far this year but Twiggy is still buying
• Why is the Nitro share price crashing 29% on Tuesday?
• Investing in the stock market could turn $10,000 into $300,000. Here’s how
• Own ANZ shares? Tech experts raise red flags over Suncorp integration
• Why is the Vulcan share price charging higher 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.

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

It’s been a rough year so far for the Bega Cheese Ltd (ASX: BGA) share price. It’s tumbled nearly 39% since the start of 2022. Having started the year trading at $5.60, the stock is currently swapping hands for $3.44.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped around 10%.

But that hasn’t seemingly shaken the confidence of Australia’s second richest person. Andrew ‘Twiggy’ Forrest has continued his campaign to snap up Bega Cheese shares, grabbing another $14.9 million worth.

Let’s take a closer look at what’s been weighing on the Vegemite owner and Twiggy’s growing hold in the company.

Twiggy buys despite falling Bega Cheese share price

The Bega Cheese share price has been impacted by extreme weather in 2022, as rainfall and flooding have forced it to increase farm gate milk prices amid heightened demand.

That will, of course, dint the cheese-focused food producer’s bottom line and has already seen brokers turning their nose up at the stock.

Bell Potter dropped its price target for Bega Cheese shares to $3.80 and slapped it with a hold rating earlier this month after the company revealed it expected milk prices to lift 30% this financial year.

Meanwhile, Goldman Sachs analysts have reportedly placed a sell rating on Bega Cheese. They noted they don’t see any further upside in the stock, according to Livewire.

But that hasn’t discouraged Twiggy. The Fortescue Metals Group Limited (ASX: FMG) founder and chair’s increasing holding in the ASX 200 consumer staples share was revealed last week.

Twiggy began snapping up a substantial holding in Bega Cheese in December. He recently increased his hold in the company to 11.5%, up from 10% in late April.

That saw the billionaire buying around 4.5 million Bega Cheese shares at a total cost of approximately $14.9 million.

The post The Bega Cheese share price is down 39% so far this year but Twiggy is still buying appeared first on The Motley Fool Australia.

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

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

More reading

• Why Aurizon, Bega Cheese, Flight Centre, and Lake Resources shares are sinking
• Here are 3 ASX 200 shares tumbling to new 52-week lows today
• ASX 200 midday update: Telstra completes acquisition, Lake Resources and Bega Cheese sink
• Bega share price slides as milk prices skim away
• 5 things to watch on the ASX 200 on Thursday

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

from The Motley Fool Australia https://ift.tt/D5hc7U9

The Nitro Software Ltd (ASX: NTO) share price is having a day to forget on Tuesday.

In morning trade, the document productivity software company’s shares are down a disappointing 29% to $1.16.

Why is the Nitro share price crashing?

Investors have been selling down the Nitro share price following the release of the company’s second quarter and first half update.

Although that update revealed yet another strong quarter of growth, it was management’s commentary on the second half that sent investors to the exits.

According to the release, for the 12 months ending 31 December, Nitro now expects to report annual recurring revenue (ARR) of US$57 million to US$60 million. This represents year on year growth of 24% to 30%.

As a comparison, the company was previously guiding to ARR of US$64 million to US$68 million, which would have been year on year growth of 39% to 47%.

That’s despite the company reporting stellar first half FY 2022 ARR growth of 52% year on year to US$51.5 million this morning. This indicates an expectation for a sharp slowdown in growth during the second half, which appears to have spooked investors.

The good news

Despite what the Nitro share price performance would indicate, it wasn’t all bad news.

Firstly, Nitro has trimmed its operating EBITDA loss guidance. Instead of US$15 million to US$18 million, it now expects a loss of US$10 million to US$13 million.

In addition, instead of moving “toward a cash flow breakeven profile” in the second half of FY 2023, it now expects to be cash flow breakeven at that point.

It also finished the first half of FY 2022 in a strong financial position, with cash of US$35.2 million and no debts. This should provide it with more than sufficient cash to reach its breakeven point.

What’s happening at Nitro?

Management revealed that its revised guidance reflects its decision to balance its pursuit of ARR growth while accelerating its cash flow breakeven goals.

Nitro’s co-founder and chief executive officer, Sam Chandler, explained:

Given the current environment, Nitro is carefully balancing its pursuit of ARR growth with extracting greater efficiencies from existing resources and protecting our strong cash position. We are also focused on accelerating our return to cash flow breakeven.

While in the near term these operating strategies will lower Nitro’s ARR growth, they will underpin a significantly reduced Operating EBITDA Loss in FY2022. With our revenue guidance unchanged, we firmly believe this is the correct financial profile for today’s macroeconomic and market conditions.

Chandler also reminded investors of the massive market opportunity that the company has to grow into in the coming decades.

We are committed to generating positive cash flow for the second half of 2023. While there are currently many uncertainties in the world, Nitro has a multi-billion-dollar market opportunity that will play out over the years and decades ahead, and our confidence in the scale of that opportunity is unchanged.

The post Why is the Nitro share price crashing 29% on Tuesday? appeared first on The Motley Fool Australia.

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

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

More reading

• Analysts have named these top growth shares as buys
• Here’s why analysts are tipping these ASX growth shares as buys
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• 2 appealing ASX All Ords growth shares getting discounted today
• Analysts say these small cap ASX shares have huge potential

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

from The Motley Fool Australia https://ift.tt/6ufXvMx

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.

You may be looking at your portfolio’s performance over the past eight months or so and scratching your head, wondering when the pain will end. But when you are investing for retirement or some other goal down the road, it is imperative to understand the power of a long-term investment strategy.

There have been 27 bear markets since 1929, with a bear market defined as the market declining 20% or more during a specific time period. There have also been 27 bull markets since 1929, and they last much longer — about 2.7 years on average compared to less than 10 months for bear markets.

Furthermore, stocks lose on average about 36% during bear markets and gain 114% during bull markets. So this just shows that the odds are in your favor over the long run. Also, bear markets are typically a good time to buy, as you can invest in high-quality, established growth companies at discounted prices. With that in mind, let’s take a look at how a $10,000 investment right now could turn into more than $300,000 over time.

There have been five bear markets in the past 20 years

For the purpose of this hypothetical, let’s go back 20 years and see how much a $10,000 investment in the Nasdaq 100 would have yielded. In that time, there have been five bear markets — in 2002, 2008, 2009, 2020, and 2022.

The Nasdaq 100 is a growth-oriented index that includes the 100 largest stocks on the Nasdaq exchange, except financial stocks. The index is heavily skewed toward technology stocks — since they have generally been the largest and fastest growing — and is often considered a bellwether for the performance of the technology sector.

The Nasdaq 100 would be a great index to invest in, because growth stocks have outperformed value stocks over the long term, and technology stocks in particular have been the best-performing sector over time. With a long time horizon ahead of you, you can ride out bear markets and generate excellent returns.

The best way to tap into the Nasdaq 100 would be through an exchange-traded fund (ETF). And one of the most popular ETFs over the past 20 years is the Invesco QQQ (NASDAQ: QQQ), which tracks the Nasdaq 100.

So back to our hypothetical — if you’d invested $10,000 in the QQQ back on July 22, 2002, you would have invested in the middle of a bear market — one that didn’t end until Oct. 2002. Sound familiar?

Through it all, a $10,000 investment would net $300,000

From July 22, 2002, until today, the QQQ has posted an annualized return of 13.6%. If you’d invested $10,000 in the QQQ 20 years ago, and contributed $125 per month to that fund, you would have about $303,000 right now.

Keep in mind, that performance is through five bear markets, including the one we are currently in. This preceding 20-year period is particularly relevant now, because the investment would have started in the midst of a bear market.

Now, you know the disclaimer: Past performance is not indicative of future results, and there is no guarantee that an investment in the Nasdaq 100 will return 13.6% over the next 20 years. But history is indeed a useful guide to understand that volatility and down markets are a fact of life — and patience has typically been rewarded. 

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

The post Investing in the stock market could turn $10,000 into $300,000. Here’s how appeared first on The Motley Fool Australia.

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

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

More reading

• Own ANZ shares? Tech experts raise red flags over Suncorp integration
• Why is the Vulcan share price charging higher today?
• Paladin Energy share price lights up on uranium project restart
• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Why the Woolworths share price will be on watch today

Dave Kovaleski 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.

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

from The Motley Fool Australia https://ift.tt/3X4rEdV