The Pilbara Minerals Ltd (ASX: PLS) share price has had a positive financial year in FY22.

Pilbara shares have surged from $1.455 at market open on 1 July 2021 to $2.29 at market close on 30 June. This is a 57% gain.

So how did the financial year play out for Pilbara Minerals?

Pilbara Minerals share price hits a high in January

The Pilbara Minerals share price surged 165% to a high of $3.86 on 18 January. Between market close on 7 December and 18 January alone, the company’s share price soared 64%.

Pilbara Minerals owns the Pilgangoora lithium project in the Pilbara region of Western Australia.

Investors bought up Pilbara shares in 2021 and early 2022 amid a positive outlook for lithium. As my Foolish colleague James reported in early January, investors bought up the company’s shares amid the rise in electric vehicle (EV) demand.

Pilbara also benefited from positive broker coverage. Macquarie confirmed its outperform rating on the company’s shares in December with a $3.70 price target. The broker forecasts record-level lithium prices in the next four years. Bank of America also lifted its guidance for the Pilbara share price by 13% in early January.

The company also achieved strong results from spodumene concentrate auctions on the Battery Material Exchange. In October, a buyer bid US$2,350 per dry metric tonne (dmt), while in September Pilbara received a bid of US$2,240 per dmt.

On 21 December, the Pilbara share price suffered a downgrade to spodumene concentrate production and shipping guidance. Pilbara downgraded FY2022 production guidance from 460,000 to 510,000 dry metric tonnes (dmt) to 400,000 to 450,000 dmt. Shipping guidance was lowered from 440,000 to 490,000 dmt to 380,000 to 440,000 dmt. Managing director and CEO Ken Brinsden said:

Notwithstanding this, Pilbara Minerals remains incredibly well-placed to make a significant contribution towards satisfying the world’s burgeoning appetite for lithium raw materials.

A rough few months

The Pilbara Minerals share price tumbled nearly 41% between market close on 18 January and 30 June.

In late February, Brinsden revealed he would step down as CEO of Pilbara at the end of 2022 to spend more time with his family and on his personal interests.

In May, Pilbara and project partner Calix was awarded a $20 million grant from the Federal government to develop a lithium chemicals facility at the Pilgangoora project.

On 1 June, Pilbara appointed Dale Henderson as the company’s new managing director and CEO. This followed a thorough executive search process.

In June alone, the company’s share price plunged 22%. However, it was not alone. Core Lithium Ltd (ASX: CXO) shares dropped 29.6%, while Lake Resources N.L. (ASX: LKE) shares fell 48.7%.

A note from Goldman Sachs predicting lithium carbonate and spodumene concentrate prices to drop in the future appeared to hurt ASX lithium shares. Chinese EV company BYD also revealed plans to buy six lithium mines in Africa, impacting the demand outlook for lithium.

In late June, Pilbara provided a positive June quarter production update. The company advised of an estimated 54% increase in spodumene concentrate production compared to the March quarter.

Pilbara Minerals share price recap

The Pilbara Minerals share price has soared nearly 56% in the past year, but it has shed 29% year to date. In the past month, Pilbara shares have lost nearly 8%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost nearly 10% in a year.

In the past five years, Pilbara shares have returned 465% to investors.

The post Why has the Pilbara Minerals share price soared 57% in FY22? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why did the Pilbara Minerals share price tumble 22% in June?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why have ASX lithium shares had such a lousy month in June?

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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The S&P/ASX 200 Value Index is down 5.45% year to date while the S&P/ASX 200 Growth Index is down 16.5%.

Why the disparity, you might ask?

Well, in order to understand why, you need to know a bit about what value investing is first.

What is value investing?

Firstly, ‘value’ isn’t a permanent character trait of a share — rather, it’s a situation. In order to be a value share, the stock must be trading below its intrinsic worth and, therefore, offer ‘value’ to the investor.

As you can read in our ‘Guide to value investing‘, the ASX shares that value investors seek look cheap compared to the underlying revenue and earnings of those businesses.

According to our guide:

Investors who use the value investing strategy hope that a company’s share price will rise as more people come to appreciate the true intrinsic value of the company’s fundamental business.

Shares in any industry can be value shares. But generally speaking, value investing does tend to centre around well-established blue-chip companies with “consistent profitability [and] stable revenue streams”.

Value investors want to buy the highest-quality ASX shares as cheaply as possible. Then they wait for the rest of the market to catch on and bid the share price up in order to achieve some profit.

What’s the first rule of value investing?

The first rule with buying ASX value shares is to buy low and sell high. Easy right? Well, no.

Buying low requires you to be able to identify when an ASX share is trading below what it is worth.

That’s why value investors spend a lot of time doing research. Their key goal is to understand the intrinsic value and a fair share price for each business they’re interested in.

Then, they wait for opportunity, which can come in many forms. One form is when general negative sentiment drags down the entire ASX 200. You see where I’m going with this, right?

Value investors are having a party right now

Today, there’s significant negative sentiment in the share market. People are worried about rising inflation and interest rates. They’re not just worried about the impact on their personal wallets. They’re also worried about how these macro-economic issues will impact the companies they are invested in.

When there’s fear in the market, people often sell. They lose confidence and they sell on emotion. Many just want their money out while the market is jumpy.

That means the highest quality companies get sold off with the rest of the market. Their share prices fall, and that’s when value investors pounce.

Whether it’s the right time for value investors to buy yet is a matter of opinion. But you can bet they’re at least actively watching the market right now!

Why ASX value shares aren’t falling as much

It’s this pouncing effect from value buyers that might be why ASX 200 value shares aren’t falling in price as much as ASX growth shares.

After six months of falls during which time the ASX 200 has lost 12.5%, value investors might already be out there buying the dip and dollar-cost averaging their holdings.

In general, ASX investors are feeling nervous right now. When people are fearful, they want to mitigate risk. And it’s the boring (but reliable) blue chips that can provide the certainty investors are craving.

And they sure look appealing at today’s prices.

Examples of ASX 200 value shares

S&P Global has categorised a bunch of ASX shares as value shares right now. Let’s test a few of them.

The top five constituents of the S&P/ASX 200 Value Index (by market capitalisation) are:

• National Australia Bank Ltd (ASX: NAB) — share price down 5.65% year to date
• BHP Group Ltd (ASX: BHP) — share price down 5.85% year to date
• Commonwealth Bank of Australia (ASX: CBA) — share price down 10.8% year to date
• Westpac Banking Corp (ASX: WBC) — share price down 9.2% year to date
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) — share price down 20.4% year to date.

Who sees good value here?

Other reasons why ASX value shares aren’t falling as much

Remember, ASX value shares are generally well-established companies selling at a discount. They’re not young unproven companies yet to make a profit (like many ASX tech shares) selling at a discount.

This means that, by nature, value shares don’t exhibit the same share price volatility as growth shares.

It’s also probably fair to assume that there’s less selling activity on value shares compared to growth shares, too.

Long-term owners would be far less inclined to sell their highest-quality shares because of short-term headwinds like inflation.

Some long-term investors have held their blue chips through 9/11, the global financial crisis, and the pandemic. What’s a little inflation compared to these events?

The quintessential value investor: Warren Buffett

Famous investor Warren Buffett is one of the world’s most eminent value investors. He’s got two rules of investing, which go something like this: “The first rule of investing is don’t lose money, and the second rule is don’t forget the first rule.” 

So, value investing suits him. He says: “If you buy things for far below what they’re worth and you buy a group of them, you basically don’t lose money.” 

As my fellow Fool in the US, Keith Speights, reports, Buffett is already in the market buying up value stocks.

Click here to learn how to identify ASX value shares.

The post Why ASX 200 value shares are surviving the sell-off better than growth shares appeared first on The Motley Fool Australia.

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• Why did the Qantas share price outperform the ASX 200 in FY22?
• The NAB dividend is being paid today. Here’s what you need to know
• 5 things to watch on the ASX 200 on Tuesday
• The Telstra share price outperformed the ASX 200 in June
• Here are the top 10 ASX shares today

Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, and Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 Regis Resources Limited (ASX: RRL) share price is having a strong day.

In morning trade, the gold miner’s shares are up 9% to $1.58.

Why is the Regis Resources share price jumping?

Investors have been bidding the Regis Resources share price higher this morning in response to the release of an update.

According to the release, the company delivered record gold production during the fourth quarter.

Regis Resources reported a 20% quarter on quarter increase in total gold production to 123.9k ounces. This reflects a 24% increase in Duketon gold production to 92.8k ounces and a 10% lift in Tropicana gold production to 31.1k ounces.

This took the company’s annual gold production to 437k ounces. This is up 17% year on year and in line with its guidance of 420k ounces to 475k ounces.

Inflationary pressures persist

One slight negative that could be holding back the Regis Resources a touch today is that inflationary pressures are persisting and weighing on margins.

The release notes general industry inflationary pressures have continued across its operations and are expected to lead to its all-in sustaining cost (AISC) coming in slightly above the top end of its FY 2022 cost guidance of $1,425 to $1,500 per ounce.

Management commentary

Regis Resources’ Managing Director, Jim Beyer, was pleased with the quarter. He said:

We are very pleased to deliver a record quarter of gold production for the June 2022 quarter. We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year. This has seen the company deliver an improved performance despite the challenging external conditions.

The result is a record production performance for the quarter and overall annual gold production that sits comfortably within FY22 production guidance. The company is now well set for increased annual gold production into FY23. We look forward to releasing the full June Quarter Report along with company guidance later in the month.

The post Regis Resources share price jumps 9% on record quarter appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• Why did the Regis Resources share price sink 35% in June?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher

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.

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It was the best of times; it was the worst of times. Fortunately, the Qantas Airways Limited (ASX: QAN) share price sailed through financial year 2022 relatively unscathed. Though, that doesn’t mean it was easy for the national carrier. It suffered major disruptions, lockdowns, and travel bans.

As of the final close of June, the Qantas share price was $4.47. That marks a 4% tumble over the course of last financial year.

That was a better performance than that of the broader market. The S&P/ASX 200 Index (ASX: XJO) slumped around 10% in that time.

Let’s recap what the last 12 months have been like for the flying kangaroo.

Qantas share price outperforms the ASX 200 in FY22

Cast your mind back to July 2021. Australia was pushing forward with its COVID-19 vaccine rollout while its borders remained tightly locked. Meanwhile, Sydney was suffering through what grew to be a four-month lockdown and Omicron wasn’t to be identified for another five months.

Qantas’ earnings

With all that in mind, it likely came as no surprise that Qantas’ full-year earnings – released in August 2021 – may have disappointed investors. The airline posted a $2.35 billion pre-tax loss for financial year 2021. It brought in just $5.93 billion of revenue over the period.

And the first half of this financial year – dubbed by CEO Alan Joyce “one of the worst halves of the entire pandemic” – wasn’t much better. The airline announced another $1.28 billion loss for the six months ended 31 December. Though, its debt position was notably stronger.

In fact, at the end of this financial year, the airline’s debt levels are expected to have fallen to well below pre-pandemic levels. Much of that improvement was due to the sale of 13.8 hectares of land in Sydney’s Mascot for $802 million.

What else happened last financial year?

Of course, lessening travel restrictions likely helped the stock outperform in financial year 2022.

Australia’s international borders slowly reopened from November and tourists were welcomed back to the country in February.  

Though, a plan for Qantas to work with Japan Airlines was knocked back by the ACCC in September while the Australian airline battled with unions and the Fair Work Commission over an enterprise agreement.

Qantas also announced its plan to acquire Alliance Aviation Services Ltd (ASX: AQZ).

 What could drive the Qantas share price next?

The future looks set to be bright for the airline. Qantas previously announced its expectations that it would turn its first post-COVID-19 profit in the second half.

It expects to announce underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $450 million to $550 million for the six months ended 30 June.

However, it also expects to post another loss for the financial year just been. It’s on track to return an underlying profit for financial year 2023.  

Finally, Qantas has announced plans to grow both its international and domestic fleets, ordering a number of new aircraft to be delivered in the coming years.

The post Why did the Qantas share price outperform the ASX 200 in FY22? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
• The Telstra share price outperformed the ASX 200 in June
• Here are the top 10 ASX shares today
• Here are the best and worst perfoming ASX 200 sectors over June
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 Alliance Aviation Services 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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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.

Meta Platforms (NASDAQ: META) held an internal conference on June 30, during which CEO Mark Zuckerberg told employees to brace for impact. The social media giant that has turned into a metaverse business has, for several quarters, warned investors that it faces headwinds that are hurting its ability to grow revenue. 

Those include changes from Apple (NASDAQ: AAPL) that make it more difficult for Meta to track its users across apps. Rising competition from short-form video site TikTok has also forced Meta to make adjustments, hurting sales in the near term. Let’s look at the recent revelation and determine if investors should jump ship and sell the stock now. 

Meta Platforms takes austerity measures amid slowing growth

One of the significant insights from reports of the meeting was Meta’s reduced plans for hiring. The company had initially planned to hire 10,000 engineers. It has now reduced that goal to between 6,000 and 7,000. And the company is increasing performance goals, making work more challenging for existing staff.

Zuckerberg admitted this might cause some employees to quit, and that self-selection is something he said he would be totally fine with. Instead of outright layoffs, it looks like Meta is raising work standards. The result could be improved performance by many workers, while others quit.

“Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn’t for you, and that self-selection is OK with me,” Zuckerberg said.

The increased focus on cutting costs is no surprise considering earlier updates from Meta Platforms suggesting the slowest revenue growth in the company’s history. In its most recent quarter, revenue increased by 7% from the same quarter in the prior year. Management expects revenue to be flat in the upcoming quarter.

META revenue (quarterly YoY growth). Data by YCharts.

For years, the company has benefited from collecting information on its users across apps and then using that data to sell targeted advertising. Marketers were willing to pay more for this type of advertising because it offers more precision and less waste. No longer were restaurants in San Diego paying for ads shown to folks in Boise, Idaho.

Another headwind is resulting from Meta’s adjustment to changing consumer tastes. Folks are increasingly engaging with short-form videos in favor of photos. Meta’s apps have been geared to benefit from interaction with photos. It will take time for Meta to optimize the platforms to the newer consumer habits, hurting revenue in the near term.

Those headwinds appear to be longer lasting than initially expected, hence the austerity measures mentioned above. 

The challenges are already priced into Meta Platforms’ stock

META P/E ratio. Data by YCharts. P/E = price to earnings.

While Meta’s challenges should not be underestimated, they are no reason to sell now. The stock is already down 58% off its highs, so the risks mentioned above are arguably already priced in. Meta is trading at a price-to-earnings ratio of 12 and a price-to-free-cash-flow of 11, near the lowest the stock has sold for in the last five years. 

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

The post Headwinds will slow growth for Meta; Should investors sell now? appeared first on The Motley Fool Australia.

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• Why Meta Platforms sank 16.7% in June
• Why Meta Platforms plunged on Tuesday
• 2 oversold stocks to buy in the Nasdaq bear market
• Why Meta, Amazon, and Apple shares were falling today
• Better buy: Twitter vs. Meta Platforms

Parkev Tatevosian has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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 Ardent Leisure Group Ltd (ASX: ALG) share price has taken an almighty tumble on Tuesday morning.

In early trade, the entertainment company’s shares are the worst performers on the All Ordinaries index with a whopping 67% decline to 47 cents.

Why is the Ardent Leisure share price crashing?

The good news for shareholders is that today’s decline has nothing to do with the company’s performance or a bearish broker note. Instead, this decline is because a big payday is coming to shareholders next week.

Last week, Ardent Leisure shareholders voted in favour of a return of capital following the completion of the sale of its Main Event business in the United States to Dave & Busters.

This morning, the Ardent Leisure share price is trading ex-dividend for this return.

What’s the capital return?

Ardent Leisure will be returning a massive $455.7 million or 95 cents per share to shareholders next week on 13 July.

This comprises a return of capital of $221.0 million or 46.0699 cents per share and an unfranked dividend of $234.7 million or 48.9301 cents per share.

To be eligible for the return, investors needed to own the company’s shares at the market close on Monday. This means that anyone buying Ardent Leisure shares today will not receive this capital return or dividend. Instead, the rights to these returns remain with the seller.

What’s left of Ardent Leisure?

Following the sale of Main Event, Ardent Leisure will be left with its Theme Parks & Attractions business, which comprises Dreamworld, WhiteWater World, and SkyPoint.

Management remains optimistic on the future of these businesses. The company’s chair, Dr Gary Weiss, commented:

Dreamworld, WhiteWater World and SkyPoint are iconic attractions with proven historical performance, underpinned by freehold land ownership in one of the fastest growth corridors in Australia. The sale of Main Event now provides Ardent Leisure with the capital required to support the ongoing recovery, growth and development of our Theme Parks & Attractions business which is the Board’s principal focus. Further investment in this business will better position it to benefit from expected increases in leisure spending, including as a result of increased levels of interstate and international travel to Queensland following the suppressed levels experienced during the COVID-19 pandemic.

The post Why is the Ardent Leisure share price crashing 67% today? appeared first on The Motley Fool Australia.

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• Why is the Ardent Leisure share price jumping 9% today?

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.

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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.

What happened

Bitcoin (CRYPTO: BTC) continued its long slide in June 2022. The largest cryptocurrency fell 36.7%, according to data from S&P Global Market Intelligence, dragging many related stocks down with it. For example, software company and Bitcoin investor MicroStrategy (NASDAQ: MSTR) lost 37.9% while Bitcoin investment fund Grayscale Bitcoin Trust (OTC: GBTC) dropped 41.3% lower and Bitcoin miner Riot Blockchain (NASDAQ: RIOT) fell 41.7%. 

The crypto market faced the same risk-averse investor behavior as in recent months, fueled by grim inflation reports and economic uncertainty on a global level. Moreover, lawmakers took some steps toward cryptocurrency regulation in June, but the bureaucratic wheels turn slowly, and nobody knows what the long-term legal framework will look like.

So what

If Bitcoin prices continue to fall much further, we’ll probably see some consolidation in the cryptocurrency industry. Companies with weak balance sheets and shaky business plans may have to close shop, file for bankruptcy, and sell their assets to stronger rivals. For example, the crypto-focused hedge fund Three Arrows Capital has filed for bankruptcy and liquidation, and crypto-lending specialist Celsius Network has frozen trades, withdrawals, and balance transfers due to “extreme market conditions. 

The crypto stocks mentioned earlier are in no immediate danger of bankruptcy, though.

Riot Blockchain is selling some of its Bitcoins in order to pay the bills, but it generated more tokens than it sold in June. The company is also actively investing in its Bitcoin mining infrastructure, adding more mining rigs and improving the performance of older gear through the use of immersion cooling systems.

Grayscale is fighting to convert its Bitcoin trust fund into an exchange-traded fund (ETF) directly tied to Bitcoin’s latest spot prices. Investors are reluctant to use a fund that settles transactions only at the end of each trading day. With the intraday pricing of ETF shares, investors can react much faster to changes in this volatile market, so the Bitcoin trust comes with a risk-based discount. In its current form, the Grayscale Bitcoin Trust carries 0.000922 Bitcoins per share, which works out to $18 at current crypto prices. Share prices stand 32% lower at $12.25. The fund managers are currently suing the Securities and Exchange Commission (SEC) to overturn the agency’s recent decision to deny a requested transformation from fund to ETF.

MicroStrategy is still buying more Bitcoin, arguing that the digital currency is a great investment at these low prices. The company boosted its Bitcoin holdings by 0.4% in the last two months and now holds roughly 129,700 tokens. The business intelligence company also holds some loans relying on Bitcoin holdings as collateral, raising concerns about the financial impact of plunging Bitcoin prices. However, CEO Michael Saylor claims that the loans don’t face any margin calls until Bitcoin prices fall below $3,562 per token, and even then, MicroStrategy could add other types of collateral. Since Bitcoin prices are hovering around the $20,000 mark these days, MicroStrategy appears to stand on solid financial ground at the moment.

Now what

Bitcoin prices have fallen 59% so far in 2022, and all three of the crypto-reliant stocks mentioned above are taking even deeper price cuts. Investors in this sector are nervous, and arguably for good reason. The crypto market is packed with uncertainty, and many investors don’t have a firm grasp on what blockchain ledgers can do or what they should be worth.

That being said, this is not the first massive drawdown in cryptocurrency history, and it won’t be the last. Cryptocurrencies are evolving and adapting to ever-changing market conditions. As a result, all the investments mentioned above are incredibly risky, and you should be prepared for bumpy roads ahead.

Some of these stocks may be good plays on the crypto market, and their current prices are certainly more attractive than the much higher peaks of last fall. However, it would be wise to keep your cryptocurrency investments relatively small, as the speculative sector separates the chaff from the wheat in this difficult era. Even the reasonably high-quality stocks we talked about here aren’t immune to market risks. You must weigh the promise of skyrocketing share prices against the very real risk of going to zero in a bankruptcy or liquidation.

As for Bitcoin itself, I think that this established powerhouse is going places in the long run — but even then, there are no guarantees that prices will rise again. Be careful out there, dear reader. 

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

The post Why Bitcoin stocks crashed (again) last month appeared first on The Motley Fool Australia.

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

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The Bubs Australia Ltd (ASX: BUB) share price won’t be going anywhere on Tuesday.

This morning the junior infant formula company’s shares were placed into a trading halt.

What’s going on with the Bubs share price?

This morning the Bubs share price was slammed into a trading halt at the company’s request.

According to the release, rather predictably after the release of no less than eight market sensitive announcements in the space of five weeks hyping up its US activities, this trading halt has been requested so the company can launch another equity raising.

While no details have been released to the market, the AFR reports that Bubs is seeking to raise $63 million from investors. This will reportedly comprise a $32.4 million placement and $30.6 million rights issue, based on a 1 for 10.4 basis.

The company is aiming to raise these funds at 52 cents per new share, which represents a huge discount of 18.75% to the latest Bubs share price.

Why is it raising funds?

Bubs is understood to be raising the funds for working capital purposes in relation to the immediate scaling up of its activities.

These activities are aiming to increase inventory and to expand its canning capability.

The Bubs share price is expected to return to trade at the commencement of trade on Wednesday.

The post Why is the Bubs share price in a trading halt? appeared first on The Motley Fool Australia.

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• Why is the Bubs share price taking off today?
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• Where to find value in growth? Here are 2 ASX shares I’d buy in July
• Why ANZ, Block, Bubs, and PayGroup shares are pushing higher

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 BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With interest rates rising fast, the housing market has started to wobble and the REA Group Limited (ASX: REA) share price has come under pressure.

So much so, the property listings company’s shares are down 34% since the start of the year.

Is the REA share price weakness a buying opportunity?

Analysts at Goldman Sachs sees a lot of value in the REA share price at the current level.

A recent note reveals that its analysts have a buy rating and $167.00 price target on the realestate.com.au operator’s shares.

Based on the current REA share price of $113.61, this suggests that there is potential upside of 47% for investors over the next 12 months.

Why is Goldman so bullish?

Goldman Sachs remains bullish on REA due to its belief that the company can continue to grow at a solid rate despite the likely downturn in the housing market as rates rise.

In fact, the broker is forecasting 10% annual sales growth between FY 2022 and FY 2024. This will see its revenue go from $927.8 million in FY 2021 to an estimated $1,393.2 million in FY 2024.

At the same time, the broker is expecting positive jaws (sales growing quicker than costs), resulting in strong earnings growth over the same period. This is expected to be underpinned by stronger ad yields.

Goldman is forecasting earnings per share to go from $2.48 in FY 2021 to $3.93 in FY 2024.

The broker commented:

The commitment to >10% yield, is a clear positive in our view, with the willingness to pull the pricing lever particularly constructive (ahead of +8%/+6% contracted in FY22/23), driven by upside to current levels of monetisation in residential advertising (42% revenue share vs. c.75% audience share).

While depth growth is expected to be supported by adoption of the Premiere+ tier and vendor leads (charged on a subscription basis, monetised from FY24). Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings.

The post Why this broker sees huge upside for REA share price despite housing market downturn appeared first on The Motley Fool Australia.

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• Here’s why I think the REA Group share price is a buy right now

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 REA Group 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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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has been having a tough time in 2022.

On Monday, the pizza chain operator’s shares ended the day at $69.21. This is almost 60% lower than their 52-week high of $167.15.

Where next for the Domino’s share price?

The good news for shareholders is that one leading broker is tipping the Domino’s share price to rebound.

According to a recent note out of Citi, its analysts have put a buy rating and $100.95 price target on the company’s shares.

Based on the current Domino’s share price, this implies potential upside of approximately 45% for investors.

What did the broker say?

Citi acknowledges that Domino’s is facing a very difficult period. This is being driven by lower traffic, inflationary pressures, and labour shortages.

Nevertheless, it appears to feel that this is already understood by the market and priced in following recent share price weakness.

In light of this, the broker believes that now could be a buying opportunity for investors. Particularly given that its long term growth remains very positive.

Our analysis of high frequency data suggests Domino’s website traffic in key markets (Europe and Japan) is under increasing pressure. These headwinds are likely further exacerbated by inflationary pressures and labour shortages.

However, we reiterate our Buy rating as we see upside from potential M&A activity and expect sales momentum to rebound later in CY22 once the business has cycled through the abnormal comps. While downside risk remains to the company’s short- to medium-term rollout, the long-term rollout opportunity does not appear to have changed.

The post Broker says Domino’s share price now has 45% upside after recent weakness appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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