On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red again. The benchmark index fell 0.6% to 7,442.8 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.5% higher this morning. In the US, the Dow Jones rose 0.25%, the S&P 500 was up 0.4%, and the Nasdaq edged ever so slightly higher.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a decent finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.75% to US$96.98 a barrel and the Brent crude oil price is up 0.3% to US$101.34 a barrel. Further sanctions on Russian oil boosted prices.

Iron ore price falls

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares could have a subdued finish to the week after the iron ore price pulled back. According to Metal Bulletin, the spot benchmark iron ore price dropped 3.2% to US$155.05 a tonne.

Dividends being paid

A number of ASX 200 shares will be paying their latest dividends on Friday. This includes funerals company InvoCare Limited (ASX: IVC), administration services company Link Administration Holdings Ltd (ASX: LNK), logistics infrastructure company Qube Holdings Ltd (ASX: QUB), and logistics solutions platform provider WiseTech Global Ltd (ASX: WTC).

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price pushed higher. According to CNBC, the spot gold price is up 0.6% to US$1,934.7 an ounce. Traders were buying gold as an inflation hedge.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Yield curve inversion is bad news for ASX shares except for this sector
• What’s the outlook for the Cochlear share price in April?
• Why are ASX 200 tech shares having such a dire day?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower

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. owns and has recommended Link Administration Holdings Ltd and WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The CSL Limited (ASX: CSL) share price struggled through the March quarter despite plenty of good news being released by the company.

In fact, the biotechnology giant’s stock tumbled 7.76% last quarter, ending the period trading at $270.05.

For comparison, the S&P/ASX 200 Index (ASX: XJO) ended the quarter trading relatively flat with where it started, recording a gain of just 0.74%.

So, what moved the CSL share price over the three months ended 31 March? Let’s take a look.

What happened to the CSL share price last quarter?

The CSL share price had some notable ups and downs over the course of the March quarter.

The first came with the announcement of the completion of CSL’s share purchase plan on 14 February.

The share purchase plan – first announced in December – raised $750 million for CSL’s acquisition of Vifor Pharma.

The company received applications of $942.7 million for the capital raise, which offered new shares in the company for $253.57 apiece. As a result, it had to scale the offer back.

However, as The Motley Fool Australia’s James Mickleboro reported, the company was hit with a negative note from S&P Global Ratings that same day.

All in all, the CSL share price fell 1.99% on 14 February. Fortunately, it was soon boosted by the release of the company’s half-year results.

Over the six months ended 31 December, CSL’s revenue rose 5.3%, while its net profit after tax (NPAT) slipped 2.8%. The company’s dividend stayed at US$1.04 per share.

However, its bullish view on plasma collections and its financial year 2022 earnings likely helped lift the CSL share price.

It gained 8.51% on the day of its earnings’ release and a further 5.05% the following day.

The final piece of price-sensitive news released by the company last quarter dropped after the market closed on 3 March.

Then, CSL announced 74% of Vifor Pharma’s shares were tendered under a public tender offer.

That was slightly less than the company’s goal of 80%. Nevertheless, CSL said it would waive its acceptance rate condition and declare the offer successful.

Following the tender offer, CSL commenced a tender period for subsequent acceptance of the offer. As a result, the acquisition was on track to be finished by the middle of 2022.

The CSL share price gained just 0.31% on the news.

What else might have driven CSL’s stock last quarter?

That’s all the price-sensitive news released by CSL in the March quarter. However, there were a few more happenings that might have helped boost market sentiment toward its shares.

The company reportedly ditched efforts to create an antiviral treatment for COVID-19 in January. It will instead be focusing its $1 billion-a-year research program on other projects.

Additionally, CSL’s influenza vaccine was granted new approvals by regulators in March. As a result, it can now be administered to children above the age of two.

The post Why did the CSL share price go backwards in the March quarter? appeared first on The Motley Fool Australia.

More reading

• The CSL dividend is being paid today. Here’s what you need to know
• This ASX share changed me FOREVER: fund manager
• Here’s what $10,000 invested in CSL shares 5 years ago looks like now
• How did the CSL share price perform in March?
• Why is the CSL share price climbing on Wednesday?

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

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ASX travel shares descended today on a tough day for the market.

The Flight Centre Travel Group Ltd (ASX: FLT) slid 2.74%,  Webjet Limited (ASX: WEB)  gravitated 2.86%, and Qantas Airways Limited (ASX: QAN) descended 1.96%.

Meanwhile, the Helloworld Travel Ltd (ASX: HLO) share price fell 2.40%, while Corporate Travel Management Ltd (ASX: CTD) dropped 2.54%.

Let’s take a look at why these travel companies had such a shocking day.

Travel chaos predicted

ASX travel shares followed the pattern of their US counterparts. The American Airlines Group Inc (NASDAQ: AAL) fell 2.58%, United Airlines Holdings Inc (NASDAQ: UAL) descended 3.67%, and Delta Air Lines Inc (NYSE: DAL) dropped 3.69% in Wednesday’s trade in the US. US airlines fell amid rate rise fears.

News from the White House that the USA has no plans to scrap COVID-19 testing requirements may also have weighed on travel shares. In a video shared on Twitter by The Post Millennial, Whitehouse COVID-19 advisor Jeff Zients said: “There are no plans to change the international travel requirements at this point.”

ASX travel shares Flight Centre, Webjet and Qantas all have a presence in the USA market.

Travel chaos in the lead up to Easter may also be concerning travel shareholders. Hundreds of international flights are being cancelled due to COVID-19 travel shortages, CBS News reported. Australian passengers were recently warned to arrive at the airport at least two hours early for domestic flights amid airline staff shortages, the Daily Mail reported.

Rising oil prices may also be impacting ASX travel shares. International benchmark Brent crude oil is up 1.45% to US$102.57 per barrel at the time of writing, Trading Economics data shows. Fuel is a major cost for airlines, and the oil price impacts the cost of fuel.

ASX travel share recap

In the past year, Qantas shares have fallen 7.41%, Webjet shares have fallen 2.86%, while Flight Centre shares have leapt 4.96%.

Helloworld Travel shares have soared 10.41%, while Corporate Travel shares have exploded 22.35%.

In contrast, the S&P/ASX 200 Index has returned more than 7% in the past year.

The post What went so wrong for ASX travel shares today? appeared first on The Motley Fool Australia.

More reading

• Why did the Qantas share price have such a tough time of it today?
• The Webjet share price is tumbling 5% on Thursday. Could this be why?
• The Flight Centre share price is diving 5% today. What’s next in April?
• ASX travel shares have been flying higher over the past month. Here’s why
• Why the Flight Centre share price travelled 12% higher in March

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As Richard Carlson once said, “Reflection is one of the most underused yet powerful tools for success.” Investors spend a lot of time looking ahead, but in this article, we take a moment to reflect upon the last month in ASX All Ordinaries shares.

If you were to simplify what investors want to achieve into one short sentence, it would probably be something along the lines of — “find and invest in the big winners while avoiding the big losers”.

And so, we found the best and worst performers of the All Ordinaries in March to offer some reflection.

Lithium developer takes out the top spot among All Ordinaries

It’s hard to beat a company whose shares have skyrocketed 108% in a single month. Though it might be hard to believe, that is exactly what lithium developer Lake Resouces N.L (ASX: LKE) achieved in March.

Taking a look at what the company got up to during the month, you might begin to see what instilled such excitement among shareholders. For instance, Lake Resources found itself being added to the S&P/ASX 300 Index (ASX: XKO).

In addition, the company raised $39 million through the execution of its at-the-market subscription agreement with Acuity Capital.

Finally, on 29 March this ASX All Ordinaries share announced it had linked up with Japan-based Hanwa Co Ltd. According to the announcement, an offtake proposal of 25,000 tonnes of lithium carbonate per annum had been made. Furthermore, Hanwa suggested it was considering a meaningful equity investment in Lake Resources.

Missing the target in March

Not every ASX All Ordinaries share could be as fortunate as Lake Resources. For 88 Energy Ltd (ASX: 88E), it was a plain painful month — where did it all go wrong for the oil explorer? It’s time for some more reflection.

Unfortunately, 88 Energy released a company update on 30 March which sent shareholders running. As per the announcement, 88 Energy was unable to obtain fluid samples from its target zones in the Merlin-2 well, situated in Alaska.

The news douses investors’ hopes of striking a well rich with oil. In turn, this ASX All Ordinaries share shaved off 63% in March.

The post Guess which 2 ASX shares were the best and worst All Ordinaries performers in March appeared first on The Motley Fool Australia.

More reading

• 5 ASX mining shares rocking all-time highs on Friday
• Why is the Lake Resources (ASX:LKE) share price surging 16% higher to a new record high?
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• 5 ASX lithium and green metals shares hitting new 52-week highs today
• Why 88 Energy, Gold Road, Sigma, and Star shares are dropping

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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Investing in the financial markets is no doubt as much an art as it is a science, as with all skilful practices.

That’s an important distinction, because there’s a relationship between art and emotion, provides George Mather in The Psychology of Visual Art.

However, it’s also important to realise that successful investing is as systematic and science-based as it gets, especially in today’s data-driven world.

Such that computers, algorithms, machine learning, proprietary high-frequency trading bots and the likes have swarmed over financial markets in the past decade. Not to mention the rise of quantitative finance in recent years as well that’s seen some of the largest hedge funds ever roll out onto the scene.

According to Mordor Intelligence, “algorithmic trading accounts for around 60-73% of the overall US equity trading”, and “the algorithmic trading market is expected to witness a [compound annual growth rate] CAGR of 10.5%” through until 2027.

Why the shift?

Much of the overhaul in the way financial markets operate revolves around the fact that algorithmic and quantitative trading methods supposedly back-out the emotion involved with investing. Investigations by The Socio-Economic Review found that ‘algo’s’ are “allegedly more rational and efficient than human traders, and less prone to emotionally motivated decisions,” to hammer in that point.

Behavioural finance tells us that humans are notoriously bad forecasters, are bad at mental accounting, suffer from cognitive and emotional biases, and are fraught with logical errors in decision making. It’s just the way we are.

For example, most investors are deemed to be loss averse, rather than being solely risk averse. What that means is, they value a loss greater than they value a win.

Consider this – numerous studies find that “a 50% chance of losing $100 must be offset by a 50% chance of gaining $200” – in other words, the upside must be twice that of the potential loss for most people to get comfy.

If it remains a 50/50 chance, the bet is often deemed to be too risky (because many aren’t strong at mental accounting either, remember?). The potential for a win is valued lower than the potential for an equal sized loss.

Fundamentally, these form the bedrocks as to why there’s been a structural shift towards the new electronic market ‘participant’ – to mitigate the risk of human error. As Oscar Wilde Said, “I don’t want to be at the mercy of my emotions. I want to use them, to enjoy them, and to dominate them”. Presumably, most market pundits would feel the same way.

Controlling emotion is actually so important, that some say harnessing the market’s psychology is essential in understanding price action and profiting from this.

“The swings we see in investment markets are far greater than can be justified by movements in investment fundamentals alone – i.e. profits, dividends, rents, interest rates, etc,” Shane Oliver of AMP Capital told Livewire.

“In fact, investor emotion plays a huge part,” he added.

Oliver also said:

A bull market runs through optimism, excitement, thrill and ultimately euphoria by which point the asset class is over loved (and usually overvalued too) – everyone who is going to buy has – and it becomes vulnerable to bad news. This is the point of maximum risk. 

Once the cycle starts to turn down in a bear market, euphoria gives way to anxiety, denial, fear, capitulation and ultimately depression at which point the asset class is under loved (and usually undervalued) – everyone who is going to sell has – and it becomes susceptible to good (or less bad) news. This is the point of maximum opportunity. 

Dampen that emotion

“Key message: investor emotion plays a huge roll in amplifying the investment cycle,” Oliver also remarked, adding that investors should avoid assets where the crowd is “euphoric and convinced it’s a sure thing”.

What to do, Oliver says?

“[F]avour assets where the crowd is depressed and the asset is under loved”.

That, he posits, is obviously far easier than done, hence why the market has taken such a shine to systematic and data-based investing methods in the first place.

Instead, focus on the long-term – which, unsurprisingly according to this data, has shown to be “solid and relatively smooth,” Oliver says – and recognise that investment returns are a function of time as much as anything.

“Since 1900 for Australian shares roughly two years out of ten have had negative returns but there are no negative returns over rolling 20-year periods. (It’s roughly two & a half years out of 10 for US shares since 1900.),” Oliver commented.

Not to mention that, amidst several global recessions, a number of wars, housing crises, Russian debt default, the GFC, and most recently, Covid-19 (just to name a small few), the S&P/ASX 200 index (ASX: XJO) has still climbed from 1,487 in 1992 to 7,442 at the close of trade on Thursday, a 400% return.

That’s worth thinking about.

The post Investing in ASX shares? How to avoid the ’emotional rollercoaster’ appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Cochlear share price in April?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: Magellan jumps, tech shares tumble
• 2 ASX tech shares that are cheap enough to buy now
• 5 things to watch on the ASX 200 on Thursday

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 Bruce Jackson.

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ASX shares are under pressure along with global equities as the bond yield curve inverted, but there’s one ASX sector that could do very well in this environment, according to a leading broker.

The yield curve inversion refers to shorter-term US government bond yields rising above longer-term yields.

Investors are fretting because history has shown that an inverted yield curve precedes an economic recession.

A downturn would usually sink ASX shares as company earnings will fall in such an environment.

Inverted yield curve is good news for these ASX shares

However, the inverted yield could trigger a bull run for gold, according to Morgan Stanley. If that’s the case, this is good news for ASX gold miners like the Newcrest Mining Ltd (ASX: NCM) share price and Evolution Mining Ltd (ASX: EVN) share price.

“The yield inversion between the two- and 10-year has often been regarded as an indicator for an oncoming recession”, said Morgan Stanley.

“Prior to 2019, the last persistent inversion occurred in 2006-07, which was followed by a multiyear bull run for gold.”

Outlook for the gold price

The gold price is stuck at around US$1,900 an ounce for several weeks and experts are divided on its next move.

The gold price outperforms when the yield curve inverts and the spot gold price is well above consensus.

But Morgan Stanley believes that there are several factors, apart from the yield curve, that could push the precious metal higher.

Earnings upgrade potential for ASX gold shares

“The current yield environment, coupled with geopolitical uncertainties, high rates of inflation and US 10-year real rates and TIPS remaining negative, offers scope for gold upside potential, especially in light of current consensus estimates for the commodity”, said the broker.

“Current spot prices are slightly above CY22 MS and consensus estimates.

“However, if gold price forecasts for CY23 were to move higher and spot prices persist, there would be substantial upside risk to earnings for gold equities.”

These developments are enough to convince Morgan Stanley to change its negative bias stance on ASX gold shares.

Best ASX gold shares to buy now

The broker noted that the share prices of all gold shares under its coverage are pricing at a commodity price under the current spot price of approximately US$1,920 an ounce.

Its top buy picks in the sector are the Newcrest share price and Northern Star Resources Ltd (ASX: NST) share price.

“NCM remains our top pick for the long term, as several projects move towards FID”, said Morgan Stanley.

“NST has the highest FCF generation of our coverage and offers the most sensitivity to upside gold prices, with lowest downside due to well-priced hedges.

“NST also has a near-term catalyst with its brownfield expansion at KCGM.”

The post Yield curve inversion is bad news for ASX shares except for this sector appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Is Newcrest Mining considered a defensive ASX share?
• 5 things to watch on the ASX 200 on Wednesday
• Why has the Northern Star (ASX:NST) share price gained 23% in 2 months?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brendon Lau owns Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The GQG Partners Inc (ASX: GQG) share price rocketed on Thursday following the company’s funds under management (FUM) update.

At the final bell, the fund manager’s shares finished the day 9.68% higher at $1.53.

In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) closed down 0.57%. The S&P/ASX 200 Index (ASX: XJO) also had another disappointing day, closing at 7,442.8, down 0.63%.

FUM update

Investors rallied up the GQG share price following the company’s latest FUM report.

GQG reported that total FUM experienced US$3.4 billion in net inflows over the quarter. This is despite a challenging macro environment in which the business continued to see positive net flows through its three major channels.

As such, the international equity division rose 2.5% to US$32.6 billion. This was followed by global equity which increased by 6.2% to US$29.3 billion.

Furthermore, the emerging markets equity business improved by 1.2% to US$24.9 billion, with United States equity up 5.2% to US$6.1 billion.

Across the board, total FUM stood at $92.2 billion at the end of the March quarter.

The company said:

We continue to see business momentum across multiple geographies and channels as our Q1 flows represent positive net flows from all three of our major channels and positive net flows from multiple geographies, notably in the Australian and Canadian retail channels.

About the GQG share price

After reaching a record high of $2.13 late last year, the GQG share price is down 30% over the past year.

It has also fallen 13% this year to date. However, it is up 16% over the past month and 9% over the past week.

GQG commands a market capitalisation of roughly $4.51 billion and has approximately 2.95 billion shares outstanding.

The post This ASX financial share defied its sector sell-off to climb 9%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Ardent Leisure, GQG, Magellan, and Melbana shares are charging higher
• Brokers: 2 ASX dividend shares expected to pay juicy yields
• 2 ASX dividend shares with yields above 5%
• Here are the top 10 ASX shares today
• Why Aurelia Metals, Brambles, GQG, and Nickel Mines shares are falling

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 Bruce Jackson.

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Endeavour Group Ltd (ASX: EDV) shares have hit not one, not two, not even three… but four all-time high prices this week.

The owner of Dan Murphy’s and BWS liquor stores has had a cracking time of it lately. Endeavour shares have spiked 11% over the past 30 days and closed the session up again today by 1.06% to $7.66.

Endeavour shares hit new highs

The Endeavour share price closed at $7.42 on Monday — creating the first all-time high of the week. On Tuesday it finished at $7.49, then $7.58 on Wednesday, and it’s yet another high-flying finish today.

This is despite no price-sensitive news out of the retail drinks and hotel operator since 21 February. That was when Endeavour reported its FY22 half-year earnings, which lifted its share price 11% in one day.

The company reported a 15.6% increase in group net profit after tax (NPAT) to $311 million. It also announced a fully franked interim dividend of 12.5 cents per share.

What else is happening at Endeavour lately?

Endeavour appears well-positioned to benefit from the COVID-19 reopening, as people feel more comfortable venturing out for meals and entertainment at hotels and clubs.

Endeavour runs 342 venues and draws income not just from drinks and food sales but gaming, too. This segment of the business is “returning to normality” with 12,400 poker machines operating across its network.

The shift to more online shopping also bodes well for Endeavour. The company has amassed an enormous regular customer base through its Dan Murphy’s loyalty program.

According to the Financial Review, more than 30% of Australian adults — that’s 6.2 million people — are members of the program.

According to the report: “For a business with only 251 bricks and mortar outlets, the “My Dan’s” loyalty program has impressive reach, considering the much older Flybuys program, which operates across Coles supermarkets and a host of other retail brands, has about 8 million users.”

Analysts believe the ASX businesses that can best leverage their customer base in the digital world will have a big advantage moving forward.

What do brokers say about Endeavour shares?

The article quoted Goldman Sachs analyst Lisa Deng. She has a buy rating on Endeavour and a share price target of $8. She also sees the My Dan’s loyalty program as a huge benefit to the company.

Deng said: “Given it is a pure-play alcohol retailer, we find it extraordinary that it has the breadth and depth of consumer assets that can rival a top staples grocery retailer.”

Deng said she expects the company to continue gaining market share in its retail division.

Given the complexity of the portfolio, with high number of stock-keeping units and specialist skills required for procurement, it will be difficult for incoming competitors to build scaled competition quickly.

The post Own Endeavour shares? Here are 4 things you probably don’t know appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares smashing 52-week highs on Thursday
• A toast! The Endeavour share price just hit an all-time high
• Federal budget: Goldman Sachs names 4 ASX shares to buy
• Do Endeavour (ASX:EDV) shares pay dividends?
• Top broker puts conviction buy rating on Endeavour (ASX:EDV) shares

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 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 Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price has climbed almost 4% in a month, but could it go even higher?

The Telstra share price has ascended 3.66% since market close on 7 March.

In today’s trade, the company’s shares jumped 0.76% to finish the day at $3.96. In contrast, the S&P/ASX 200 Communication Services Index (ASX: XTJ) dropped 0.45% today.

Is the telco a buy?

The Telstra share price is a buy, according to the team at Morgans. The broker placed an add rating on the telco’s shares and a $4.55 price target. This is 14.9% more than the share price at today’s close.

Successful implementation of the company’s transformation T22 strategy and T25 strategy are underpinning this positive outlook, my Foolish colleague James reported.

Morgans believes Telstra shares are undervalued on a “sum of the parts basis”. The analyst added: “Sector dynamics look positive and value realisation is possible.”

Morgans is predicting Telstra to pay a fully franked dividend of 16 cents per share in FY 2022 and FY 2023.

Meanwhile, Goldman placed a neutral rating on the telco recently with a price target of $4.30, my Foolish colleague Bernd reported. Goldman noted a network sharing agreement Telstra signed with TPG Telecom Ltd (ASX: TPG) in late February. Under the agreement, Telstra will provide TPG with access to 3,700 of its mobile network assets Analysts said:

TPG is paying for access to a significant portion of TLS regional coverage.  This is driving incremental wholesale earnings for TLS, improving the quality/speed of its metro and regional networks.

Another factor that could impact the Telstra share price in April is the transition to a new chief executive officer. Telstra recently appointed Vicki Brady to take over from outgoing CEO Andy Penn on 1 September. Brady will work with Penn over the next few months to prepare for the top gig.

Brady is not new to Telstra. She joined the company in 2016 and has served as the chief financial officer since July 2019. Penn also joined Telstra as a chief financial officer in 2012 and took over the top job three years later.

Telstra’s T25 strategy was announced in September 2021. At the time, Penn told investors: “If T22 was a strategy of necessity, T25 is a strategy for growth.”

Telstra share price snapshot

The Telstra share price has surged nearly 17% over the past 12 months, but it has dropped 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index has returned 7.4% over the past year.

Telstra has a market capitalisation of more than $46 billion based on its closing share price today.

The post Could April be a good month for the Telstra share price? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 2 ASX dividend shares analysts have named as buys
• The Telstra dividend is being paid today. Here’s what you need to know
• 5 things to watch on the ASX 200 on Friday
• What helped boost the Telstra share price 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 owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ASX welcomed a new battery minerals face on Thursday, with shares in International Graphite Limited (ASX: IG6) floating on the market this afternoon.

After offering shares in the company for 20 cents apiece under its initial public offering (IPO), International Graphite finished its first day on the ASX trading at 36 cents.

Not to mention, at its intraday high of 42 cents, the company’s share price was 110% higher than its IPO offer price.

So, what exactly does the company do in the battery minerals space? Let’s take a look.

ASX battery minerals share rockets on float

The International Graphite share price launched 110% during its ASX float this afternoon.

It hit the board at 12.30pm after raising $10 million by issuing 50 million shares as part of its IPO.

The company is aiming to supply graphite to international markets and produce battery anode material to meet growing demand for battery materials.

Fun fact: the company’s ticker – IG6 – represents its initials and the atomic number of carbon.

International Graphite is building a production facility in Western Australia. There, it plans to manufacture graphite products to be sold to industrial component manufacturers.

It’s also developing a pilot plant to push production and sales of battery anode materials for lithium-ion batteries.

Additionally, the company has acquired the Springdale Graphite Project from Comet Resources Limited (ASX: CRL).

Comet Resources received 40 million shares in the ASX battery minerals newbie as payment for the project.

The Springdale Graphite Project is a shallow graphite deposit with metallurgical characteristics for battery anode material and prospectivity for more resources.

Right now, the Springdale Graphite Project is at the exploration and development phase. The company expects it will eventually provide most of the feedstock for its processing activities, located 450km away.

After listing on the ASX, the company has around 179.4 million shares, fully diluted.

That saw it with an expected fully diluted market capitalisation of around $35.9 million at its offer price.

However, at its first close on the ASX, the battery minerals company’s valuation is around $64.5 million, fully diluted.

The post Newest battery minerals share booms 80% on ASX debut appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Bruce Jackson.

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