The Megaport Ltd (ASX: MP1) share price is under pressure on Friday and on course to end the week deep in the red.

In morning trade, the network as a service provider’s shares are down over 7% to $13.07.

This means the Megaport share price is now down 31% since the start of the year.

Why is the Megaport share price tumbling on Friday?

The weakness in the Megaport share price today has been driven by news that the company’s founder and chairman, Bevan Slattery, has been selling down his holding.

According to a change of director’s interest notice, Mr Slattery has offloaded 3 million Megaport shares through an underwritten block-trade this morning.

The release reveals that the founder sold the shares for $13.05 per share, which represents a discount of 7.7% to the Megaport share price at the close of play on Thursday. All up, Mr Slattery received a total of $39.15 million for the shares.

Despite this sale, the Chairman still retains a significant interest in Megaport. He’s left with approximately 8.1 million shares and 67,000 options. The former is the equivalent of 5.11% of the company’s issued capital.

Why is the Chairman selling?

The release explains that Bevan Slattery intends to use the proceeds from the sale of Megaport shares to facilitate ongoing investment opportunities.

Mr Slattery also remains positive on the company’s future and revealed that he doesn’t intend to sell any more shares in the near future.

He commented: “I am excited for Megaport’s continued growth and am committed to supporting the Company. I have no intention of selling shares within the next 6 months and am committed to ensuring the Company’s success as it continues to scale up and scale out.”

The post Megaport (ASX:MP1) share price sinks 7% after $39m chairman share sale appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Block, Breville, Megaport, and Webjet shares are falling today
• Brokers name 3 ASX shares to buy today
• Glitch! Why are ASX tech shares getting hammered on Monday?
• 3 buy-rated ASX growth shares analysts are recommending

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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/b9kehr0

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.

With the market dancing around correction territory, many investors have shifted their perspective from “how high can the market go?” to “how far can it fall?” The fear is palpable, and the volatility index that measures such things is certainly projecting that fear will continue.  

The market’s drop and spiking volatility raises a very important question: Is it safer to pull your money out of the stock market now? That question is an easy one to ask, but its answer depends a lot more on your overall financial condition than on what the market may do in the near future.

Why your personal financial condition matters

As the early part of 2022 so brutally reminded us, stocks can go down as well as up. That makes it very dangerous to rely on stocks for money that you need to cover your near-term costs. Because of this, it really only makes sense to have money in stocks that you don’t need to spend in the next five or so years.

If your personal finances are set up in such a way that you can afford to wait five years before tapping your stocks, then it’s much easier to wait out a market that remains rough for an extended period. If they aren’t, then it gets far harder to persevere through a long bear market. After all, if you urgently need the money, you may not have the option to hold on for better days. In addition, it just gets that much harder to hold on as money you’ll need soon seems to evaporate before your eyes.

This doesn’t mean you need to have five years’ worth of expenses socked away in a savings account or other high-certainty location, unless you rely exclusively on your investments to pay your bills. If you have a job, a pension, Social Security, or some other form of cash flow that covers your costs, you may not need any more cash savings than a standard emergency fund.

If, however, like many people, you are saving to buy a car, a house, a college education, or some other major expense, things get a little trickier. If you have a hard deadline for those purchases within the next five years, that money shouldn’t be in stocks. If you can accept the possibility of pushing off those purchases when the market doesn’t cooperate, then it’s up to you to decide whether the potential reward is worth that risk. Just don’t act surprised when the market moves against you and postpones those plans.

If you’ve got the flexibility to wait, then the trade-offs change

On the flip side, for money you don’t need to spend within the next five years, there’s a case to be made that it might actually be riskier to keep your money out of stocks. This is because with inflation running near 8%, your money loses serious purchasing power by sitting in cash or low-return fixed income. Over the long haul stocks have delivered returns at around 9% to 10% annualized. While those returns aren’t guaranteed, they do provide at least a fighting chance of keeping up with even that high inflation.

In addition, some companies might actually do well during inflationary times. Businesses that can either raise their prices or leverage already owned infrastructure instead of having to continuously invest can often profit when inflation is high due to those built-in benefits.

Still, it’s important to remember that even if a company can keep up with — or even outpace — inflation over time, there are no guarantees that its stock will move up, especially in the short term. That is why it is so very important to have a long-term time horizon for any money that you have invested in stocks.

Recognize, too, that there’s value in falling prices

The other key piece of information to keep in mind as the market is falling is that the stock market attempts to price companies based on their future potential. All else equal, paying $10 today for $1 of potential annual earnings for the foreseeable future is a better deal than paying $20 today for the same future earnings stream. As a result, the lower stock prices found during a market crash make the stocks of ultimately successful companies a better value than they were at elevated prices before the crash.

In other words, a falling stock market brings with it the seeds for potentially faster wealth creation in any recovery that may follow it. The key is to recognize which companies have the staying power to make it through any tough times that come along with a falling market. After all, for a company’s falling stock price to ultimately recover, it still has to have a potentially rosy future that investors are willing to pay for.

Still, if you can find those strong companies trading at value prices in a bear market, it can provide a great foundation for a future fortune to reveal itself. It’s not an easy path to wealth, but it is the path that value investors like Warren Buffett have blazed for others to be able to follow.

Get yourself ready now

The key benefit of being able to invest during inflationary times and stay invested even as the market drops is that over the long run, it provides your best chance of protecting your purchasing power. It’s not always easy to get in the position to do so, but once you do, you’ll be glad you did.

Start today by getting a plan in place to get your personal financial condition healthy. Once you’re there, you’ll be in a much better spot to benefit from the market’s long-term potential, even if you have to stomach some extended periods of rough times along the way. 

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

The post Is it safer to pull your money out of the stock market now? appeared first on The Motley Fool Australia.

More reading

• The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy?
• Why Chinese stocks collapsed again today
• Fantastic unemployment numbers and the Fed hikes rates. Scott Phillips on Nine’s Late News
• Why the wild ride looks set to continue in 2022 for Santos (ASX:STO) shares
• 5 ASX shares trading ex-dividend next week

Chuck Saletta 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.

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/TIr43va

The CSR Limited (ASX: CSR) share price has fallen by more than 3% in 2022 and is trading at $5.90 this morning.

The broker Citi projects that CSR will pay a grossed-up dividend yield of 6.9% in FY22, so does this make the building products ASX share a buy?

For readers who haven’t heard of CSR before, it’s the company behind brands such as Gyprock plaster, Bradford insulation, PGH bricks and pavers, Monier roof tiles, and AFS, which is a leader in load-bearing permanent formwork solutions for external and internal concrete walls.

These days, the company is also working on innovative products to make homes more energy-efficient.

In addition, CSR is a joint venture partner in the Tomago aluminium smelter in NSW. CSR also generates earnings from its property division by redeveloping and selling surplus former manufacturing sites and industrial land.

How big is the next CSR dividend going to be?

In FY22, Citi is expecting CSR to pay a grossed-up dividend yield of 6.9% at the current CSR share price. Citi then expects CSR to pay a grossed-up dividend yield of 7.7% in FY23.

In CSR’s FY22 half-year results for the six months to 30 September 2021, the company declared a fully franked dividend of 13.5 cents per share. It was a large increase from the 8.5 cents per share dividend in the prior corresponding period.

The HY22 dividend was at the top end of CSR’s dividend policy. That policy is to pay dividends of between 60% to 80% of full-year net profit after tax (NPAT) before significant items. That NPAT measure grew by 30% in HY22 to $86.6 million.

Which way are profits headed?

Expectations of profit growth, or decline, can impact any company’s share price and CSR is no different.

When delivering its half-year result, CSR commented that building activity grew in line with expectations during the period. The declines in high density and commercial construction partly offset the strong detached property market.

In the second half, which has fewer trading days, it’s expecting activity to reflect the seasonality of the building industry. Completion times continue to lengthen, reflecting supply chain congestion, cost pressures, and labour constraints, which are impacting the broader industry.

However, CSR management thinks that the diversified nature of the business positions it well for the second half and beyond.

CSR’s building products business is “performing well” in the current market and progressing its strategy to diversify and grow the business for the future.

What do analysts think of the CSR share price?

Despite the COVID-19 impacts, Citi thinks that CSR is a buy and has a share price target of $6.63. It believes that the market is undervaluing how much CSR’s land is worth.

The broker Credit Suisse also thinks that CSR is a buy and has a share price target of $6.70. The broker believes CSR sales volumes will benefit with government COVID-19 restrictions lifting.

The post The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy? appeared first on The Motley Fool Australia.

More reading

• We see potential: Top broker sees more upside in (ASX:CSR) shares

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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.

from The Motley Fool Australia https://ift.tt/LdcCxG0

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

China stocks staged a remarkable rally on Wednesday, with shares of internet giant Alibaba (NYSE: BABA), for example, surging ahead a staggering 36.8% in one single session, online gamer Bilibili (NASDAQ: BILI) jumping a mind-boggling 47.6%, and video streamer iQIYI (NASDAQ: IQ) coming this close to a 50% gain in one single day — up 49.8%.

Does anyone think that now might be a good time to take some profits? Wall Street certainly does. As of 11:05 a.m. ET Thursday morning, Alibaba stock is down 8.3%, iQIYI has lost 14.6%, and Bilibili is down a solid 16%.

So what

And to be clear: Yes, I do believe that what we are seeing today is simple profit taking as investors cash in on yesterday’s astounding run. There is, after all, basically no new news on the wires regarding any of these three stocks today — no analyst upgrades, no press releases from the companies themselves.

Granted, there was some good news yesterday, which sparked the rally.

In China, Vice Premier Liu He announced his intention to ensure Chinese business regulations are more “transparent and predictable” in the future. China’s securities regulators say they will also work with the SEC “to cooperate over accounting oversight of U.S.-listed Chinese companies.” And in general, China said it plans to be more “supportive” of its foreign-listed companies, says The Wall Street Journal.

In the context of a market that had become exceedingly skeptical of Chinese stocks (I believe one analyst went so far as to call the entire country of China “uninvestable”), all of the above combined to create one gigantic short squeeze, driving Chinese equity prices higher.

Now what

Today, it appears that the momentum provided by that squeeze is spent, and now the worries are returning.

Contrary to what investors may have assumed from yesterday’s headlines, Bloomberg reminded investors yesterday evening that the U.S. Public Company Accountability Oversight Board is still “insisting that Beijing provide complete access to audits of Chinese companies that trade in New York.” And that sounds less like the PCAOB will negotiate some kind of compromise with its Chinese counterparts, and more like it’s setting a “high bar for any deal that allows the firms to maintain their American listings,” says Bloomberg.

“The PCAOB must be able to inspect and investigate these audit firms completely [and] all firms auditing public companies must play by the same rules,” insisted the PCAOB in a statement. Failing that, each of Alibaba, iQIYI, and Bilibili still face the prospect of being delisted from U.S. stock exchanges.

In the face of this continuing threat, it’s hard to see how yesterday’s rally could have continued very long in any case. Today’s sell-off, I fear, was inevitable. 

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

The post Why Chinese stocks collapsed again today appeared first on The Motley Fool Australia.

More reading

• Why Alibaba, JD.com, and Didi stocks rocketed higher on Wednesday

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Bilibili and iQiyi. 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.

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/yztOBZd

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Thursday night to discuss the US Federal Reserve raising interest rates there, the prospect of the RBA doing the same, as well as some cracking unemployment numbers.

The post Fantastic unemployment numbers and the Fed hikes rates. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• Why the wild ride looks set to continue in 2022 for Santos (ASX:STO) shares
• 5 ASX shares trading ex-dividend next week
• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?
• Are these 2 ASX tech shares excellent buys right now?
• Here’s why the Vulcan (ASX:VUL) share price is charging higher today

Motley Fool contributor Scott Phillips 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.

from The Motley Fool Australia https://ift.tt/LjS29yw

Santos Ltd (ASX: STO) shareholders have held on through some good big price swings this year.

Just this week Santos shares lost 4.1% on Tuesday only to regain 1.2% on Wednesday.

In early morning trade, Santos is up 1.6%.

And we’re not talking about a small-cap explorer here. The S&P/ASX 200 Index (ASX: XJO) energy giant has a market cap north of $25 billion.

So, what’s going on?

Santos shares leap as crude oil prices rocket overnight

The global energy market was already tight heading into 2022. That was largely due to limited new expenditures in exploration and increased production coming just as the world reopened from pandemic closures.

Then oil-rich Russia’s invasion of Ukraine lit a fire under global energy costs, sending Santos’ shares rocketing.

Last week, on 9 March, Brent crude oil prices notched up to 14-year highs, trading at US$128 per barrel.

Since then, oil has largely trended lower amid hopes that Ukraine may strike a peace deal with Russia by pledging neutrality. That saw Brent trading for US$98 per barrel just yesterday. It also saw Santos shares drop 9.4% from their 7 March 1-year highs.

Yesterday (overnight Aussie time) those peace hopes were dimmed following word from Russian authorities that only limited progress has been made in those peace talks.

In response, traders sent Brent crude oil prices leaping 8.8%. Brent is currently worth just under $107 per barrel.

So how will Santos shares be impacted by crude prices moving forward?

An expert opinion

Morgan Stanley analysts Martijn Rats and Amy Sergeant don’t forecast an end to the recent volatility any time soon.

The analysts, as reported by Bloomberg, also lifted their Q3 forecast for Brent prices by US$20, bring it to US$120 per barrel. A price that’s likely to benefit Santos shares.

According to Rats and Sergeant:

To say that oil prices have been volatile recently would be an understatement. It will likely become progressively more difficult for Russia to maintain its seaborne exports in the coming months.

The overnight moves for Brent crude marked the 16th consecutive day the international benchmark swung by more than $5 in intraday trading, setting a new record.

How have Santos shares been tracking?

Santos shares have gained 12% so far in 2022, compared to a loss of 4% posted by the ASX 200.

Santos shares also pay a 2.7% trailing dividend yield, 70% franked.

The post Why the wild ride looks set to continue in 2022 for Santos (ASX:STO) shares appeared first on The Motley Fool Australia.

More reading

• Why brokers love these ASX mining shares
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why Chalice Mining, Santos, Yancoal, and Zip shares are dropping
• Why is the crude oil price tumbling and which ASX 200 shares are being impacted?

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.

from The Motley Fool Australia https://ift.tt/V0O497P

If you’re an income investor wanting to take advantage of some upcoming dividend payments, then you’ll need to move fast to catch the ones listed below.

Next week, these five ASX shares will be trading ex-dividend for their latest payouts. This means that investors will need to be on their respective share registers ahead of the ex-dividend date in order to be eligible to receive these payments.

Here’s what you need to know:

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer’s shares will be trading ex-dividend on Monday 21 March for its 8 cents per share fully franked interim dividend. Eligible shareholders will then be paid this dividend next month on 14 April.

Blackmores Limited (ASX: BKL)

This health supplements company’s shares are due to trade ex-dividend on Tuesday 22 March. Last month Blackmores declared a modest fully franked 63 cents per share interim dividend, which will be paid to shareholders on 12 April.

Healius Ltd (ASX: HLS)

Healius was a very strong performer during the first half of FY 2022 thanks to COVID testing demand. This allowed the healthcare company to declare a fully franked interim dividend of 10 cents per share. If you want to receive this dividend when it is paid on 5 April, you’ll need to own Healius’ shares before they go ex-dividend on Thursday 24 March.

Myer Holdings Ltd (ASX: MYR)

Earlier this month, this department store operator declared its first dividend in years after reporting a significant improvement in its performance. Myer is paying a fully franked 1.5 cents per share dividend on 12 May, with its shares going ex-dividend for it on Wednesday 23 March.

SEEK Limited (ASX: SEK)

Finally, this job listings giant’s shares will trade ex-dividend on Wednesday 23 March for its fully franked 23 cents per share interim dividend. This dividend will then be paid to eligible shareholders next month on 7 April.

The post 5 ASX shares trading ex-dividend next week appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares rated top buys by brokers
• Brokers name 2 excellent ASX dividend shares with big yields to buy
• Why Clinuvel, Dicker Data, Healius, and Uniti shares are rising today
• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble
• $20k invested in these ASX shares 10 years ago is now worth…

Motley Fool contributor James Mickleboro owns SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Blackmores Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/5hnKBOD

When it comes to dividend investing, a diversified portfolio may not be the answer as most payouts come from a handful of ASX shares.

In fact, co-portfolio manager of First Sentier’s Equity Income Fund, Rudi Minbatiwala, estimates that around 66% of all dividends paid out come from just seven ASX shares, reported the Australian Financial Review.

Income investors chasing yield might be surprised to note that these seven don’t include infrastructure, healthcare, or telecommunications – defensive sectors that typically are bought for their reliable distributions.

ASX shares with the biggest dividend checks

Three of the seven are the ASX iron ore majors. These are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Our readers may have also picked up on the fact that BHP has been crowned the top dividend payer in the world recently.

Their coffers are flushed with cash thanks to the high iron ore prices. While capital investment and costs are rising, these ASX mining shares are still making more money than they need. This is good news for shareholders looking for fat dividend payouts.

The other four high dividend payers are the big banks. These are the Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australian Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Have dividends reached a temporary peak?

The big four ASX banks have traditionally been a favourite among income investors. This is because they pay a more consistent dividend than the miners, which are largely at the mercy of volatile commodity prices.

But there’s a real risk that total dividends from these seven heavyweights may have peaked – at least for now. Minbatiwala pointed to the pullback in the iron ore price from record levels in 2021.

He thinks ASX banks can deliver some improvement, but their lower payout ratios mean dividends will take time to return to previous highs.

The right approach to ASX dividend investing

“That said, we think income investors can benefit from changing their mindset about equity income investing,” said Minbatiwala.

“Attractive income from equities is delivered through the interaction of yield and growth over time, not yield alone.”

This is why those looking for the biggest dividend bang for their buck may not want to blindly purchase these seven.

Among the big miners, Minbatiwala favours BHP and Rio Tinto. As for the ASX banks, he likes National Australia Bank and Commonwealth Bank of Australia.

The post Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones? appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price on watch as CEO sells $1.4m of shares
• Analysts name the best ASX 200 dividend shares to buy now
• BHP share price rebounds after 9-day slide. Here’s why
• What are the real benefits of ESG investing? Here’s what Westpac says
• Fortescue (ASX:FMG) share price jumps as iron ore price soars

Motley Fool contributor Brendon Lau owns Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, Fortescue Metals Group Limited, National Australia Bank Limited, Rio Tinto Ltd., 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/xD3wz4G

ASX tech shares have gone through a lot of volatility this year. We’re not even a quarter of the way through 2022 yet. After a sizeable decline, are some leading tech options now worth contemplating?

Over the long-term, the tech sector may have delivered some high-performers, but it has also seen some tough drops in this calendar year.

Here are two ASX tech shares to consider:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The NDQ ETF has seen a decline of 17% since the start of 2022. However, it has risen by almost 150% over the last five years despite the setback this year.

One of the benefits of owning this investment is that in one trade, investors can get access to companies that are changing the way we live, according to BetaShares. The named examples are Apple, Amazon and Google (Alphabet).

But as the name of the ETF suggests, there are actually 100 businesses in the portfolio.

There are numerous global technology names in the holdings such as Microsoft, Nvidia, Tesla, Meta Platforms (Facebook), PayPal, Adobe and Netflix.

But, it’s not just a tech-only ETF. There are plenty of other businesses in different sectors like Costco, PepsiCo, Moderna, Intuitive Surgical, Starbucks and Mondelez.

The annual management cost of the Betashares Nasdaq 100 ETF is 0.48%.

Xero Limited (ASX: XRO)

Xero is one of the world leaders in the cloud accounting software space. However, the Xero share price has fallen by around 32% since the start of 2022. But, it’s up 477% over the last five years.

The ASX tech share now has more than 3 million subscribers. This number continues to grow at a double-digit pace. For the half-year results to 30 September 2021, Xero reported that its total subscribers grew by 23% to 3 million.

It is seeing growth in many countries, including Australia, New Zealand, the UK, the USA, Canada, South Africa, and Singapore.

The growth in subscribers is helping the company’s operating revenue, which increased 23% to $505.7 million in the HY22 result. The average revenue per user (ARPU) grew 5% to $31.32, while the annualised monthly recurring revenue jumped 29% to $1.13 billion.

Xero’s gross profit margin remains high and continues to grow. It increased another 1.4 percentage points to 87.1%.

The ASX tech share says that small businesses around the world increasingly recognise the critical importance of digital tools to help them adapt and succeed in a changing operating environment.

Management said that there are multiple drivers for cloud-based software adoption, including “digitisation of tax compliance, innovation of financial services and an imperative for small businesses to prepare for the future.” That’s why Xero thinks it has exciting opportunities ahead.

It’s going to keep re-investing the cash generated to drive long-term shareholder value, subject to investment criteria and market conditions.

The post Are these 2 ASX tech shares excellent buys right now? appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 excellent ASX shares to buy and hold
• Guess how much $5,000 invested in Xero (ASX:XRO) shares 10 years ago would be worth now
• Hero to Xero? The Xero (ASX:XRO) share price is now down 36% in 2022
• 3 top international ETFs for ASX investors to look at this month
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Meta Platforms, Inc., Microsoft, Netflix, Nvidia, PayPal Holdings, Starbucks, Tesla, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Inc., Alphabet (C shares), and Moderna Inc. and has recommended the following options: long March 2023 $120 calls on Apple, short April 2022 $100 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS and Xero. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Nvidia, PayPal Holdings, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/hs67RvY

The Vulcan Energy Resources Ltd (ASX: VUL) share price is pushing higher on Friday.

In morning trade, the lithium developer’s shares are up 3.5% to $9.89.

Why is the Vulcan share price charging higher?

Investors have been bidding the Vulcan share price higher today after the lithium developer released an update on its Zero Carbon Lithium Project in Germany.

According to the release, Vulcan has commenced the pre-fabrication of its Direct Lithium Extraction (DLE) Demonstration Plant offsite in Germany. This means that the commissioning of the demo plant is on track for the middle of the year.

This follows the successful operation of its DLE Pilot Plant for almost 12 months, which is reporting consistent lithium concentration and low level of impurities. Management notes that lithium recovery rates are averaging 94% to 95%, which is above the levels noted in the 2021 Pre-Feasibility Study.

Vulcan also revealed that it has commenced discussions with local stakeholders to expand operations at its 100% owned geothermal renewable energy plant in Insheim. This would see the company provide heating and energy security to local communities.

Management commentary

Vulcan’s Managing Director, Dr. Francis Wedin, was pleased with the developments.

He commented: “Vulcan is combining the fields of geothermal renewable energy and lithium battery materials, to create the world’s first fully integrated renewable energy and battery raw materials company. Geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany’s energy security and independence. Geothermal energy in Germany has the potential to account for 50% of heat supply in Germany if backed up by sufficient investment.”

“Vulcan’s geothermal and lithium divisions are leaders in their field and are working hard to continue to realise significant project milestones in the development of Vulcan’s Zero Carbon Lithium Project. It is encouraging to see the consistent and successful track record of our lithium Pilot Plant as it comes up to one year of operation, and positive to see the Demo Plant start to take shape. At a time when Europe, particularly Germany’s, reliance on Russian energy is being keenly felt, we stand committed to helping ensure Europe’s and Germany’s energy independence and security of supply of sustainably sourced battery metals,” Dr Wedlin added.

The post Here’s why the Vulcan (ASX:VUL) share price is charging higher today appeared first on The Motley Fool Australia.

More reading

• Why Ampol, EML, Vulcan, and Zip shares are zooming higher
• Renewable energy shift ‘is about to accelerate’ making Vulcan (ASX:VUL) shares a buy: Broker
• Vulcan (ASX:VUL) investors don’t bite after earnings, shares down 13% YTD
• 2 ASX lithium shares that brokers rate as buys with huge upside potential
• Why did the Vulcan Energy (ASX:VUL) share price plunge 6% on Monday?

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 Bruce Jackson.

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