Key points

• The GWR Group share price surged 17.24% today to 17 cents
• In earlier trading, the GWR share price was up by nearly 21%
• GWR reveals it has secured multiple iron ore shipments

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This ASX mining share had a stellar day on the market today. The GWR Group (ASX: GWR) share price skyrocketed after the company revealed that its flagship high-grade C4 iron ore mine is back in full production.

At the market close, the GWR share price was up 17.24% to 17 cents. However, in earlier trade, the company’s shares surged by as much as 20.69% to 17.5 cents.

Let’s take a look at what attracted ASX investors to GWR today.

What did GWR announce to make its share price go skyward?

GWR is an iron ore producer exploring the Wiluna West Iron Ore Project and the 100% Wiluna West Gold Project in Western Australia.

The miner revealed today that its flagship iron ore mine is back in full production after it restarted operations in January.

GWR also announced that a shipment of 30,438 tonnes of iron ore left the Port of Geraldton in January. GWR sold the ore at a fixed price of US$100 per tonne, making it worth more than $3 million. The shipment was shared with iron ore and copper miner, CuFe Ltd (ASX: CUF).

In addition, GWR announced that it has secured fixed-price contracts for 1 vessel per month up to July. GWR said these contracts provide certainty for the company.

The shipments include:

• February shipment of 30,000 tonnes at US$95 per tonne (fines) and US$100 p/t (lump)
• March lump shipment at US$110 p/t
• April, May and June lump shipments at US$111 p/t
• July lump shipment at US$114 p/t.

GWR hopes to secure more fixed-price contracts by tapping into Asian markets including Malaysia, Indonesia, and China.

GWR said that its C4 mine has more than 2 million tonnes of high-grade iron ore available for mining.

Management comment

Commenting on the announcement, GWR chairman Gary Lyons said:

It is great to see the flagship C4 Iron Ore mine back in full production, having worked through the recent volatility in iron ore prices, the GWR team has been able to refine its operations focused on cost reduction and fixed priced contract shipment.

Due to the nature of our high-grade iron ore, we have been able to take advantage of alternative markets such as Malaysia and Indonesia as well as China.

There are many moving parts to our operation, and I am very pleased with our ability to tie these in all together as we continue to build our haulage fleet with long term haulage contractors supplemented by additional haulage companies.

GWR share price recap

The GWR share price has descended 45% in the past 12 months. But the miner has had a good start to the new year, with its shares up 6.25%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 3.8% in the past 12 months.

GWR has a market capitalisation of $51 million based on its current share price.

The post Why this small-cap ASX mining share rocketed 17% today appeared first on The Motley Fool Australia.

More reading

• Why has the Rumble Resources (ASX:RTR) share price rallied 25% in a week?
• 2 ASX dividend shares with grossed-up yields over 8% right now
• BNPL? Try sell now, buy later! Laybuy (ASX:LBY) share price tipped to crash 70%
• Here are the top 10 ASX shares today
• Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on?

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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Key points

• The Rumble Resources share price is up more than 25% in the past week
• It follows further mineral discoveries at the company’s Western Australian sites
• The Rumble Resources share price has jumped more than 200% in the past year

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The Rumble Resources Ltd (ASX: RTR) share price has had an impressive week, gaining more than 25%.

During that time, the miner has delivered a wealth of news — including a discovery at its Western Australia project and a trading halt before the release of its activities report for the latest quarter.

Today, the Rumble Resources share price closed at 47 cents, a rise of 4.44% on the day.

So what’s been behind the recent performance of the Australian-based miner and exploration company. Let’s dive straight in.

Discovery at project

On Monday, Rumble Resources announced it had intercepted “high-grade sulphide mineralisation” within its Earaheedy Project, around 110km northeast of Wiluna, Western Australia.

The Earaheedy prospect is Rumble Resources’ most prominent. The company is working to extract zinc-lead-sulphide from the “world-class” site.

The recent discovery of zinc and lead (Zn-Pb) was made at the Kalitan Feeder Zone within the Chinook Zn-Pb-Ag-Cu Prospect of the site.

A drill hole has returned 51m @ 4.76% Zn + Pb, 5.81 grams per tonne (g/t) Ag from 82m.

Further, this measurement includes 20m @ 8.78% Zn + Pb, 11.65 (g/t) Ag from 98m (and 8m @ 14.61% Zn + Pb, 17.7 g/t Ag from 104m and 8m @ 5.53% Zn + Pb, 5.08 g/t Ag from 124m).

The miner’s exploration target for the site is gaged between 100 to 120 million tonnes, at a grade ranging between 3.5% Zn-Pb to 4.5% Zn-Pb Sulphide.

Further drilling is expected to continue over the next 12 months.

Business snapshot

Last Thursday, Rumble Resources entered into a trading halt, just before releasing its activities and cash flow statement for the latest quarter (ending 31 December 2021).

In it, the company reported a number of further developments at its Western Australian sites and tenements, including:

• Earaheedy: drill program completed with 50% assays pending, zones intersected and results obtained
• Munarra Gully: assays pending with a Cu mineralisation anticipated to correlate with Au-Ag
• Lamil Au-Cu Project: drill program completed with assays pending
• Wardawarra: Ni defined over 1.7km of the strike, with other untested sites

The company also reported:

• A cash position of $27.3 million (at end of quarter)
• $770,000 expected in research and development return (not included in the cash position)

Since exiting the trading halt, the Rumble Resources share price has shot up 11%.

Rumble Resources share price snapshot

Over the last 12 months, the Rumble Resources share price has skyrocketed by more than 203%. Its shares were trading as low as 10 cents in April 2021, around the time the company gave a drilling update on its zinc-lead-silver project.

About a month later, the miner’s stock hit a 52-week-high, with its shares reaching 76 cents apiece.

Currently, the company has a market capitalisation of around $291 million with more 620 million shares issued.

The post Why has the Rumble Resources (ASX:RTR) share price rallied 25% in a week? appeared first on The Motley Fool Australia.

More reading

• Why this small-cap ASX mining share rocketed 17% today
• 2 ASX dividend shares with grossed-up yields over 8% right now
• BNPL? Try sell now, buy later! Laybuy (ASX:LBY) share price tipped to crash 70%
• Here are the top 10 ASX shares today
• Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on?

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Finding an ASX dividend share that yields anything north of 4% isn’t the easiest task, especially if you want to filter out any dreaded ‘dividend traps’. But finding ASX dividend shares with a grossed-up yield over 8% is even harder, given there is only a handful or two on the share market.

But if you do find an ASX dividend share sporting that kind of yield, it can make a big difference to your share portfolio’s cash flow. So here are two such ASX dividend shares offering trailing and fully franked yields of that size right now.

2 ASX dividend shares with fully franked yields over 8% today

Adairs Ltd (ASX: ADH)

Adairs is the bedding and homewares company that has made quite the splash on the ASX boards over the past few years. Its shares are up an impressive 143% over the past 5 years. But more recently, the company has been battling some disappointing share price moves. It was only in April last year that the company was making all-time highs of close to $5 a share. But the company has taken a recent tumble, and is now down more than 20% over just the past month. A disappointing trading update earlier this month saw the company crater close to 20% in just one day, driven largely by the narrowing of margins that Adairs reported.

But a share price fall does wonders for a company’s trailing dividend yield and this turns out to be the case here. Adairs paid out two dividends last year. There was an interim dividend of 13 cents per share in March. And the final dividend of 10 cents per share was paid out in September. That gives Adairs a raw trailing dividend yield of 7.08% on the company’s last share price. Since those dividends both came fully franked, this yield grosses-up to a whopping 10.11%.

WAM Research Limited (ASX: WAX)

WAM Research is our second ASX dividend share to check out today. We have here a Listed Investment Company (LIC), which means, unlike most ASX companies, WAM Research only invests in other ASX shares for the benefit of its shareholders. It typically holds a portfolio of small or mid-cap industrial shares that WAM’s analysts believe are poised to rise in value. Some of its current holdings (as of 31 December) include Lovisa Holdings Ltd (ASX: LOV) and Brickworks Limited (ASX: BKW)

WAM Research has long had a reputation as a dividend income heavyweight, due to its consistently high dividends. Last year, it paid out 9.9 cents per share in dividends, which was a slight increase on 2020’s 9.8 cents. That gives WAM Research a raw trailing yield of 6.19% on today’s closing share price. WAM Research’s dividends also typically come fully franked, which means that trailing yield grosses-up to 8.84% with the value of those credits included. 

The post 2 ASX dividend shares with grossed-up yields over 8% right now appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares for February
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• Broker says Adairs (ASX:ADH) share price is cheap after selloff
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking

Motley Fool contributor Sebastian Bowen owns ADAIRS FPO and WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO and Brickworks. The Motley Fool Australia owns and has recommended ADAIRS FPO and Brickworks. The Motley Fool Australia has recommended Lovisa Holdings 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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The Laybuy Group Holdings Ltd (ASX: LBY) share price continued its steep descent into negative territory today.

The buy now, pay later (BNPL) services provider closed the day down 5.13% with its shares trading at 18.5 cents each.

It seems weakness across tech-weighted indices and high-beta names in the S&P/ASX 200 Small Ordinaries index (ASX: XSO) have impacted Laybuy’s share price these last few months.

The drawdown hasn’t gone unnoticed either. In a note to clients today, analysts from Australian brokerage Bell Potter have slashed their recommendation on the company to hold from buy.

Let’s take a closer look.

Bell Potter tips Laybuy share price to plunge 72%

Following Laybuy’s third-quarter trading update last week, Bell Potter analyst James Filius has made some updates to the broker’s modelling for the company.

Laybuy didn’t provide any specific guidance in its quarterly update, only that it has optimistic expectations of landing in the “top 3 BNPL providers in the large UK retail market”.

Despite this, Filius cut customer growth estimates on Laybuy from FY22 onwards, restructuring earnings forecasts in the process.

For instance, the BNPL player recognised just 5% customer growth for this recent quarter, well short of the broker’s internal estimates.

This prompted Bell Potter to reduce its forecasts on customer growth by 20% for FY22. In turn, this has resulted in a corresponding 6% haircut to revenue growth expectations.

As it goes in financial modelling, the downstep in sales and customer growth estimates has flow-on effects. Bell Potter has also lowered its earnings per share (EPS) estimates for the coming 3 years.

It’s lowered FY22, FY23 and FY24 EPS estimates for Laybuy by 23%, 10% and 2% respectively.

Perhaps the most scathing outcome from Bell Potter’s ratings downgrade today was the adjustment to its valuation on the company.

The broker now values Laybuy at just 24 cents a share after slashing its price target by 72%. That drop is parallel to losses seen by the company, and also the wider industry, over the last 12 months.

From another perspective, Canadian broker Canaccord Genuity rates Laybuy as a ‘speculative buy’ at an 85 cent valuation. However, it should be noted this rating was provided on 1 December 2021, well before the company’s Q3 FY22 trading update last week.

Laybuy share price snapshot

In the last 12 months, the Laybuy share price has collapsed almost 87% and trails the benchmark index substantially over that time.

This year, things aren’t any better with the company’s shares down 21% since January 1.

That gives Laybuy a market capitalisation of $47 million.

The post BNPL? Try sell now, buy later! Laybuy (ASX:LBY) share price tipped to crash 70% appeared first on The Motley Fool Australia.

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• Can you guess the best and worst All Ordinaries performers of 2021?
• These are the 5 worst performing ASX shares of 2021
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) has further solidified its position above 7,000 points after going back-to-back with another green day. At the end of the session, the benchmark index finished 1.17% higher at 7,087.7 points.

More than three-quarters of ASX 200 shares produced gains today. Energy and materials led the charge, despite oil prices softening overnight. At the other end of the market, utilities and tech companies were unable to share in the optimism.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Champion Iron Ltd (ASX: CIA) was the biggest gainer today. Shares in the iron ore producer moved 6.15% to the upside on strength across the resources sector. Find out more about Champion Iron here.

The next biggest gaining ASX share today was Judo Capital Holdings Ltd (ASX: JDO). The small and medium-sized focused bank gained an additional 5.91% despite there being no news from the company today. Uncover the latest Judo Capital Holdings details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Champion Iron Ltd (ASX: CIA)	$6.73	6.15%
Judo Capital Holdings Ltd (ASX: JDO)	$2.15	5.91%
Auckland International Airport Ltd (ASX: AIA)	$7.06	5.37%
Telix Pharmaceuticals Ltd (ASX: TLX)	$7.45	5.23%
Worley Ltd (ASX: WOR)	$11.84	4.97%
Allkem Ltd (ASX: AKE)	$9.63	4.67%
Pilbara Minerals Ltd (ASX: PLS)	$3.41	4.60%
Computershare Ltd (ASX: CPU)	$20.66	4.56%
Sims Ltd (ASX: SGM)	$14.87	3.99%
Boral Ltd (ASX: BLD)	$6.45	3.87%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• TechnologyOne (ASX:TNE) share price jumps on broker upgrade
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Oil prices are at an 8-year high, so why isn’t the Woodside (ASX:WPL) share price?
• ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher
• Rates unchanged, a gain for the ASX and travel stocks soar. Scott Phillips on Nine’s Late News

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. owns and has recommended Judo Capital Holdings Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Wednesday was a crazy day for the Origin share price, lifting in morning trade before plunging to close 2.4% lower
• The dip came despite the energy sector outperforming the rest of the ASX 200
• While there’s no clear explanation for the stock’s struggles, it could be a simple correction after a strong few days’ performance

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The Origin Energy Ltd (ASX: ORG) share price had a rollercoaster of a day on Wednesday.

It lifted to its 52-week record high in morning trade today before plunging to be the worst-performing S&P/ASX 200 Index (ASX: XJO) energy share.

As of Wednesday’s close, the Origin share price is $5.69, 2.57% lower than its previous close.  

However, earlier today, it hit a high of $5.92 – representing a 1.3% gain and the highest it’s been in the last 12-months.

For context, the ASX 200 gained 1.17% on Wednesday, while the All Ordinaries Index (ASX: XAO) rose 1.19%.

Let’s take a closer look at what went on with the energy provider’s stock today.

What drove the Origin share price on Wednesday?

The Origin Energy share price ended today’s session as the worst-performing share on the best-performing sector.

That’s right, the S&P/ASX 200 Energy Index (ASX: XEJ) bested the rest today, gaining 2.84%.

While the Origin share price took up last place on the index, those of oil producers Worley Ltd (ASX: WOR), Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), and Beach Energy Ltd (ASX: BPT) led.

Their gains were probably helped along by surging oil prices. As Reuters reported today, the OPEC+ is unlikely to increase supply of the black liquid despite prices nearing their highest point in seven years.

However, Origin’s slump might be a slight market correction after a particularly strong session yesterday.

On Tuesday, the energy provider’s shares rose 3.9% for no apparent reason. Not to mention, they gained 1.6% on Monday and 2.4% on Friday.

During its multi-day surge, the company released its report for the December quarter.

Within the report, the company announced its Australia Pacific LNG venture had seen its revenue increase 33% quarter-on-quarter. That meant it came out 91% higher than the previous comparable quarter.

It was boosted by higher oil prices, among other happenings. Thus, the Origin share price could have been rallying alongside the energy commodity until today.

The post Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Origin (ASX:ORG) share price lifts amid APLNG’s 33% revenue boost
• Why are ASX 200 energy shares tumbling on Tuesday?
• Why AGL (ASX:AGL) and Origin (ASX:ORG) shares tumbled today
• The Origin (ASX:ORG) share price has hit 6 52-week highs in 2022. Here’s why
• Here’s why BlackRock plans to keep these carbon intensive ASX 200 shares

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

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Highlights:

• Shaw and Partners upgraded TechnologyOne shares to buy after their 2022 crash
• The shares are looking relatively attractive at their current price given the comany’s strong FY21 results and outlook
• There is around a 10% upside to the broker’s price target of $11.90 a share

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The TechnologyOne Ltd (ASX: TNE) share price jumped to a two-week high today after Shaw and Partners upgraded the company’s shares to “buy”.

The cloud-based software company rallied 2.74% to close at $10.86 while the S&P/ASX 200 Index (ASX: XJO) gained 1.17% on Wednesday.

Technology One outperformed other ASX tech shares today. The WiseTech Global Ltd (ASX: WTC) share price increased 0.56%, the Altium Limited (ASX: ALU) share price added 0.19%, and Nextdc Ltd (ASX: NXT) shares closed 1.43% higher

TechnologyOne share price hit by rate concerns

The TechnologyOne share price has suffered a sharp decline, along with other IT shares, so far in 2022. This is due to rising interest rate expectations.

It’s expected higher rates will have a bigger impact on tech shares as they trade at a premium to the broader market.

This is also why the high-flying tech sector has raced ahead of most other sectors when interest rates were falling towards zero.

Falling back to value territory

The about-turn in the outlook for interest rates caused Technology One to shed more than 15% since the start of the calendar year. This is despite management posting a good FY21 result in late November.

At the time, Shaw and Partners was impressed with the company’s financial performance but, back then, its shares were looking pricey at around $12.55.

That effectively puts the TechnologyOne share price on a lofty FY22 enterprise value-to-adjusted earnings before interest, tax, depreciation and amortisation (EV/Adj EBITDA) multiple of 42.1 times.

What is driving the broker upgrade to “buy”

The silver lining to the correction in the TechnologyOne share price is that its shares are now looking relatively cheap.

“TNE is now trading on an FY22 Adj EBITDA multiple of 35x, which now puts it at the bottom end of its historical range (33-42x),” said the broker.

What’s more, Shaw and Partners believes that management’s goal of generating $500 million in annual recurring revenue by FY26 is achievable.

What is the TechnologyOne share price worth?

“This top-line profile, after allowing for conservative cost growth (~8% CAGR), should deliver material Adj ‘cash’ EBITDA growth (~20% CAGR through FY26) and margin expansion (~10ppt through FY26),” added the broker.

“Further, this attractive profile is supported by a strong balance sheet (net cash of $143m) and offers upside potential based on UK market penetration outperforming and/or entry into other geographies, including the US, over time.”

The relatively attractive valuation and strong growth outlook convinced Shaw and Partners to upgrade its recommendation on Technology One to “buy”. The broker’s 12-month price target on the shares is $11.90 a share. 

The post TechnologyOne (ASX:TNE) share price jumps on broker upgrade appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Oil prices are at an 8-year high, so why isn’t the Woodside (ASX:WPL) share price?
• ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher
• Rates unchanged, a gain for the ASX and travel stocks soar. Scott Phillips on Nine’s Late News
• Fortescue (ASX:FMG) Future Industries to buy stake in Sparc Hydrogen

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium 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 Dogecoin (CRYPTO: DOGE) price hit an all-time high of 74 cents on 8 May last year.

At the time, the meme crypto which features a Shiba Inu dog on its logo, was receiving some big-name support. That included plaudits from Tesla Inc (NASDAQ: TSLA) founder Elon Musk.

But the last 9 months haven’t been kind to crypto investors who bought at the highs.

Since 8 May, the Dogecoin price has crashed a gut-wrenching 81%, according to data from CoinMarketCap. One Dogecoin currently trades for 14 cents.

Despite that slide, the dog-themed token still has a total market valuation of some US$19 billion, making up 1.1% of the total crypto-sphere.

And with most every other crypto in retreat as well – Bitcoin (CRYPTO: BTC) is down 44% from its own 10 November record highs – Dogecoin still ranks as the number 11 crypto by market cap.

What’s next for the Dogecoin price?

Forecasting price moves for cryptos is no easy, or guaranteed, task. And when it comes to meme tokens like Dogecoin, investor sentiment is going to play a big role.

Taking a technical analysis approach, FXStreet forecasts that the Dogecoin price should hit 16 US cents this week. That’s up 15% from the current price.

FXStreet notes that Dogecoin plunged 35% in 6 days from 16-22 January. Since then, however:

DOGE has produced a sideways movement indicating consolidation around the $0.14 barrier. Any short-term spike in buying pressure is likely to propel [the] Dogecoin price into a 15% ascent to $0.164. This level coincides with the 50-day Simple Moving Average (SMA).

But beware if Dogecoin reverses and falls below the immediate support level of 12.8 US cents. “This downswing could be the key in triggering a crash to the $0.09 support floor.”

Scott Pape, aka the Barefoot Investor, has a decidedly more bearish outlook for the Dogecoin price.

Pape, who hasn’t been a big fan of cryptocurrencies to date, said (quoted by The Daily Mail), “If you’re asking me where the crypto market is going, I have absolutely no idea in the short term. Yet I do have a rough yardstick on when we’ll see the bottom: When Dogecoin is valued at zero.”

The post Down 81% since May, can the Dogecoin price go to zero? appeared first on The Motley Fool Australia.

More reading

• What? 2 days of gains for Bitcoin, Ethereum, and Dogecoin?
• Bitcoin (CRYPTO:BTC) takes most popular crown, here are 3 cryptos hot on its heels
• Bitcoin, Ethereum, and Dogecoin surge higher as crypto markets recover
• Why Bitcoin, Ethereum, and Dogecoin plunged today
• Forget Bitcoin! These were the 5 crypto assets you wish you’d held in 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. 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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If you’re an investor with a high tolerance for risk, then you may want to look at the ASX shares listed below.

This week the team at Bell Potter put speculative buy ratings on them. Here’s what you need to know:

Bubs Australia Ltd (ASX: BUB)

According to the note, Bell Potter has retained its speculative buy rating and lifted its price target on this infant formula company’s shares to 70 cents. The broker was pleased with Bubs’ better than expected performance during the second quarter and has upgraded its estimates to reflect this.

Bell Potter commented: “BUB delivered another strong quarter of growth in 2Q22, which again has been driven in large by the infant nutrition business. Improving secular trade flows to China, continued signs of brand traction and the potential for BUB to benefit in indirect distribution channels as A2M shifts focus to direct China channels, are supportive of our Buy, Speculative risk rating.”

PointsBet Holdings Ltd (ASX: PBH)

Bell Potter has retained its buy rating but cut its price target on this sports betting company’s shares to $9.00 following the release of its second quarter update. While the broker felt it was a bit of a mixed quarter, it saw enough in it to remain positive on the future.

It commented: “The key take-out of the Q2 quarterly was the trading metrics in both Australia and the US were good but the market share across most live states in the US continues to weaken.”

“We continue to believe PointsBet will be successful in establishing a US business across approximately 18 states and provinces though the market share is unlikely to reach its target of 10%, at least in the short to medium term (i.e. before product becomes the key driver),” the broker added.

Volpara Health Technologies Ltd (ASX: VHT)

Finally, Bell Potter has retained its speculative buy rating and trimmed its price target on this medtech company’s shares to $1.30. It notes that the company’s shares have been on a downward trajectory over the last 12 months despite its strong growth continuing. Bell Potter appears to believe this could be a buying opportunity for investors.

The broker said: “The company continues to show solid progress in revenue growth and its move toward positive cash flow generation from operations. Notwithstanding, its EV/Revenue multiple has nearly halved over the course of the last year, consistent with many peers in the med tech space.”

“VHT has an expanding revenue base and appears to be on a pathway to cash flow breakeven over the course of calendar years 2022/2023. We conclude that the company is well funded in the short term and will continue to expand its revenue footprint both from existing clients and newly business opportunities,” it added.

The post Broker names 3 speculative ASX shares to buy appeared first on The Motley Fool Australia.

More reading

• Why Boral, Carsales, Credit Corp, and PointsBet shares are racing higher
• Broker says PointsBet (ASX:PBH) share price could have 90% upside
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• What are brokers saying about the Bubs (ASX:BUB) share price?
• These were the worst performing ASX 200 shares in January

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 Pointsbet Holdings Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended BUBS AUST FPO and Pointsbet Holdings 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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Key points

• Company earnings are beginning to feed through on the ASX
• We go over four sections of an earnings report and what can be helpful to make a note of
• Consider it a crash course in fundamental investing, hopefully helping avoid a crash in the process

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Once again we’re saying hello to another ASX earnings season! This is an exciting time when publicly-listed companies release their financial results for the past quarter/half year.

Company reports can be daunting to read, especially if you’re not familiar with all the financial jargon. However, they are a valuable source of information for investors, and it’s important to know how to digest them.

During ASX earnings season, it’s even more important to stay on top of company reports so you can make informed investment decisions.

In this article, we will break down company reports into 4 bite-sized pieces. In the process, we’ll explain what each section means and what are some key takeaways to be looking for when reading them.

Taking an earnings report head on

The world of investing is a constant educational journey. Whether you’re a seasoned investor or still wet behind the ears, there is always more to learn.

Today, class is in session for a timely topic — how to make sense of earnings reports. To better understand this staple of an investor’s research, we’ll reference JB Hi-Fi Limited (ASX: JBH) half-year report from last year.

First bite: company’s own snapshot

Typically, the first section of an earnings report is reserved for the company to discuss some key highlights from the relevant reporting period. Often this comes with commentary from the chair and/or CEO, relaying any key points of information to shareholders.

This first section can serve as a good base for understanding what the company does; what significant events occurred during the reporting period; and how performance is tracking compared to expectations.

In this section, it can be handy to take note of any challenges or opportunities outlined by the company. Another important segment to pay attention to is the remuneration report within the ASX earnings report (usually in annual reports). It is here where investors can find out how directors are being remunerated, including short and long-term incentives.

Second bite: income statement

Further into the ASX earnings report is where we will find the company’s income statement, also known as the profit and loss statement. Simply put, this is the total money in for the company during the period, minus the total money out.

In JB Hi-Fi’s half-year report, as shown above, the revenue figure represents the money that came into the company. When we get to the last line item ‘Profit for the half-year attributable to owners of the company’ — or otherwise known as net profit after tax — this is the amount of money retained by the business after all expenses are taken out.

Investors should pay attention to any one-off line items and adjustments. Often it is helpful to take note of any significant increases in certain expenses. This will help tell the story of where the company is pouring its money into. For example, in the above JB Hi-Fi example, the biggest increase was in sales and marketing expenses.

Third bite: cash flow statement

Cash flow is an important metric for shareholders and company’s to keep a close eye on. In an ASX earnings report, investors can find this under the cash flow statement. Keep in mind, cash flow is different from profit.

This statement gives insight into where the company’s cash is coming from and going to. Usually, this is separated into three segments: cash flow from operations; cash flow from investments; and cash flow from financing. Ideally, the company is cash-flow positive, with more money coming in than going out.

Here is where we can see how much money is flowing out to different areas. This can give a sense of how much capital is being deployed across investment activities.

Furthermore, if the company holds any debt, we can see how much capital that might be draining from the business during the reporting period.

Final bite: balance sheet

Finally, the statement that is arguably mentioned the most during times of hardship is the balance sheet. This section of an ASX earnings report is a staple for fundamental investors to feast their eyes upon.

In short, the balance sheet is comprised of three parts: assets; liabilities; and equity. Though, it is the first two that tend to attract the most attention.

When reviewing a balance sheet, it is important to take note of the relationship between total assets and total liabilities.

If a company has substantially more liabilities, that would suggest it is using leverage/debt to grow, which can come with added risk. A common rule of thumb is a 40% debt to equity ratio. If the company’s debt is less than 40% of its total equity, this is usually on the safer side.

Lastly, the cash and cash equivalents section will indicate how much liquid capital the company has at the ready. This can be used to fund growth through acquisitions or save for a rainy day.

The post ASX earnings season: How to digest a company report in 4 bite-sized pieces appeared first on The Motley Fool Australia.

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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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