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.

Despite a mountain of economic data and earnings news over the past month, the biggest news for two popular FAANG stocks over the past five weeks was the announcement that they’d be enacting stock splits.

First up was Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube. Alphabet announced a 20-for-1 forward stock split that, as of the closing bell on March 9, would bring its share price down to around $133 (for the Class A shares, GOOGL). Shareholders still need to vote to approve the split, which is expected to take effect in mid-July.

This past week, e-commerce giant Amazon (NASDAQ: AMZN) followed suit with a 20-for-1 forward stock split announcement of its own. Assuming it receives shareholder approval, Amazon’s lofty share price will come down to around $139, based on its March 9 close. This will be Amazon’s first stock split since September 1999. 

What you need to know about stock splits

Stock splits have absolutely no effect on the operating performance of an underlying business. In other words, a company isn’t going to sell more or less of its product or service just because a split is going to take place. Rather, a stock split is merely a way for publicly traded companies to alter their share price and outstanding share count without affecting their market value.

As an example, Amazon shares are set to fall from around $2,785 to one-twentieth of their current per-share value — around $139.25. However, every existing shareholder will receive 19 additional shares for each share they own. Instead of owning 1 share at $2,785, investors would have 20 shares at $139.25. Both work out to the same market value of $2,785, but the stock split mechanism allows for the share price and outstanding share count to be altered.

Why enact stock splits? The simple reason is to make shares more affordable for retail investors. If you have $500 to invest and your online brokerage doesn’t allow for fractional-share investing, you can’t directly put your money to work in Alphabet or Amazon right now. But after their respective splits take effect, $500 would be enough to purchase a few shares of either company.

Stock splits are also often indicative of a company that’s performing well. Think of it this way: A publicly traded company’s share price probably wouldn’t be high enough to merit a split if it wasn’t executing well and out-innovating its competition.

With Alphabet and Amazon taking off following their respective stock split announcements, the three high-flying stocks below may be next to split their shares. 

Tesla

For those of you who might not recall, electric vehicle manufacturer Tesla (NASDAQ: TSLA) was one of the first brand-name stocks to see its valuation launch higher after announcing a stock split. Tesla’s 5-for-1 forward split announced in August 2020 saw the company’s shares trade higher by more than 60% in the 20 days between the announcement and enactment of the split.

One reason a stock split would make sense here is Tesla’s share price. Although some folks have the luxury of purchasing fractional shares, other investors would be forced to save up $859 (as of March 9 close) just to buy a single share of Tesla. The company’s previously announced 5-for-1 split occurred with shares at $1,374; that’s well within sight given the range Tesla has been trading in this year, of about $800 to $1,200 a share.

Another reason for Tesla to consider a stock split is that Elon Musk knows his audience. Even though institutional investors and insiders combine to hold more than 61% of outstanding shares, Musk is well aware that Tesla is a favorite holding of retail investors. To keep them happy and buying Tesla stock, Musk may be willing to encourage the company’s board to approve another stock split. Doing so would allow investors with less starting capital to take a position in Tesla.

AutoZone

In February, after Alphabet announced its stock split, I believed Amazon would be the most logical company to next take the plunge. With Amazon following suit, the honor now gets bestowed on automotive replacement parts company AutoZone (NYSE: AZO). Investors have to go back almost 28 years to find the last time (April 1994) AutoZone enacted a stock split. A single share recently set investors back about $1,885, as of March 9.

You might be wondering why AutoZone hasn’t made its shares more affordable to retail investors who don’t have access to fractional-share purchases. The answer seems to be tied to the company’s mammoth share repurchases over the past 24 years. 

As I described last month, the company has been given a green light from its board of directors to make significant share buybacks since 1998. Including the recently reported fourth quarter, AutoZone has spent more than $28 billion repurchasing its stock over 24 years. Over that stretch, the company’s outstanding share count has shrunk from 150 million to slightly below 20 million. I believe that AutoZone’s board likes to highlight its progress in reducing the company’s share count; a stock split, however, would nominally increase the share count. It’s possible that AutoZone’s board believes enacting a stock split would somehow obscure that buyback progress.

Then again, with fewer than 20 million shares outstanding, AutoZone’s ability to repurchase its own stock is shrinking. If the company wants to continue returning capital to shareholders via buybacks, a stock split may be necessary.

Broadcom

The third high-flying stock that could follow in Alphabet’s and Amazon’s footsteps and split is semiconductor solutions giant Broadcom (NASDAQ: AVGO). Although Avago Technologies — which acquired Broadcom Corp. in early 2016 and then named the combined entity Broadcom — never split its shares, the original Broadcom did so on three occasions (1999, 2000, and 2006).

There are a few good reasons for Broadcom to consider splitting its stock right now. First, as with the other companies on the list, Broadcom’s share price is becoming prohibitively high for retail investors who don’t have access to fractional-share purchases. Shares were near $600 last week and haven’t dipped below $533 in over four months.

Additionally, Broadcom hasn’t been leaning on share buybacks. In fact, Broadcom’s board only recently authorized a $10 billion share repurchase agreement. This is a company that’s focused on boosting its dividend, innovating, and acquiring other companies, rather than buying back shares. In other words, it shouldn’t have the same reluctance to split that I described above with AutoZone.

A split would also make sense given that Broadcom’s business is firing on all cylinders. Its backlog hit $14.9 billion in 2021, with CEO Hock Tan noting in December that the company’s supply was already booked through 2022 and into 2023. Considering that chip shortages are persisting, Broadcom’s share price has a very good chance of heading even higher. 

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

The post Alphabet and Amazon stock splits: 3 high-flying stocks that could split next appeared first on The Motley Fool Australia.

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Sean Williams owns Amazon. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Broadcom.Ltd. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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.

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The Westgold Resources Ltd (ASX: WGX) share price has come out of a trading halt to record heavy falls today. This follows the gold resource company’s update in regards to its recent share placement.

During early afternoon trade, Westgold Resources shares are down a sizeable 14.34% to $2.09 apiece.

What’s dragging Westgold Resources shares lower?

Investors are scrambling to sell Westgold Resources shares as the company prepares to dilute existing shareholder value.

According to its release, Westgold Resources advised it has received strong support to raise $100 million through a share placement.

The offer was presented to both institutional and sophisticated investors at an issue price of $2.10 per share. This equates to roughly 48 million new ordinary shares being added to the company’s registry.

The shares will fall under the company’s listing rule 7.1. This allows up to 15% of Westgold Resources shares to be issued without shareholder approval.

The funds collected from the placement will be used to accelerate Westgold Resources’ Murchison and Bryah growth strategy. This revolves around establishing a systematic pathway towards building a 400,000 ounce per annum gold production rate from FY24.

As such, Westgold Resources is targeting the following:

• Increasing existing Murchison mine production – the Bluebird UG Expansion Project
• Accelerating new Murchison mine production – the Fender UG Development Project
• Advancing strategic development assets across the Murchison and Bryah
• Tuckabianna and Fortnum mill expansions – expand group processing capacity above 4Mtpa

Westgold Resources executive director, Wayne Bramwell commented:

The scale of market support of this placement strongly endorses Westgold’s growth plans and speaks to the growing momentum and the evolution of our business.

Westgold will systematically deploy these funds to expand gold production in FY23 and FY24 from Bluebird, Fender and the Tuckabianna trend, underpinning the expansion of our processing hubs. Concurrently, and with a view to FY24 onwards we will rapidly advance the strategic and iconic high- grade Great Fingall and Golden Crown mines.

About the Westgold Resources share price

Over the past 12 months, Westgold Resources shares have moved in circles before accelerating on an upwards trajectory since February.

The company’s share price is flat since this time last year, but up by around 2.5% year to date.

Westgold Resources has a market capitalisation of roughly $889.29 million, with almost 425.5 million shares on its books.

The post Why is the Westgold (ASX:WGX) share price falling 14% today? appeared first on The Motley Fool Australia.

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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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $60.00. Macquarie has upgraded its earnings estimates and valuation in response to higher commodity prices. The broker also highlights that BHP’s shares are trading on a double-digit free cash flow yield, which bodes well for dividends in the coming years. The BHP share price is fetching $47.48 at the time of writing.

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating and $335.00 price target on this biotherapeutics company’s shares. Citi has been looking at industry data and believes that plasma collections will be above pre-pandemic levels in 2022. Combined with the potential completion of its acquisition of Vifor Pharma, it feels this could give investor sentiment a major boost. The CSL share price is trading at $262.56 on Monday afternoon.

Dicker Data Ltd (ASX: DDR)

Analysts at Morgan Stanley have commenced coverage on this IT distributor’s shares with an overweight rating and $16.00 price target. Morgan Stanley believes Dicker Data is well-placed for growth over the medium term thanks to industry tailwinds. Especially given its leadership position in the industry and strong technical capabilities thanks to its new distribution centre. The Dicker Data share price is trading at $13.88 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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• The CSL (ASX:CSL) share price has struggled to gain traction in 2022. Does that make it cheap?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and Dicker Data Limited. The Motley Fool Australia owns and has recommended Dicker Data 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is in the green today amid the company’s announcement of a travel technology investment.

The travel company’s shares are currently trading at $18.85, a 1.84% gain, after reaching as high as $18.98 earlier in the session.

Let’s take a look at what Flight Centre announced today.

What did Flight Centre announce?

Flight Centre has boosted its interest in travel technology business TP Connects (TPC) from 22.5% to 70%.

TPC is a Dubai-based software as a service (SaaS) business. Flight Centre said TPC has been at the forefront of changes to traditional distribution models.

Flight Centre said the investment reinforces its commitment to provide customers with the “widest choice of airfares”.

Commenting on the announcement, Flight Centre leisure and supply chief executive officer Melanie Waters-Ryan said:

By investing further in the business, we have greater influence over future developments and the product’s ongoing evolution, while ensuring we continue to deliver the widest choice of airfares to our customers.

Greater influence over future developments will also provide FLT with a better opportunity to be ahead of our competitors’ comparable solutions.

TPC has been at the heart of the evolution in airfare distribution during the past decade, is now ingrained in our business and is integral to the new operating systems and platforms we are delivering in both the leisure and corporate sectors.

Flight Centre said the investment will lower costs, improve margin, and provide the company with access to new revenue schemes.

In other travel shares, the Qantas share price is up 2.16% today, while Webjet is up 1.29%.

Travel shares may be receiving a boost from a fall in oil prices on global markets. The Brent Crude Oil price has fallen 3.76% while the WTI Crude Oil price has dropped 3.87%, according to Bloomberg. Oil prices can impact airline fuel costs.

Flight Centre share price snapshot

The Flight Centre share price has jumped 6.75% since the start of 2022 and has held a 086% gain over the past year.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% in the past year.

The company has a market capitalisation of about around $3.8 billion based on its current share price.

The post Flight Centre (ASX:FLT) share price climbs amid technology investment appeared first on The Motley Fool Australia.

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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 Flight Centre Travel Group 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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A number of popular ASX 200 shares are likely to fall tomorrow despite no news coming from the companies.

The conclusion of the February earnings season has led to a vast majority of ASX shares trading ex-dividend in March.

The ex-dividend date is when investors must have purchased a company’s shares beforehand to be eligible for the upcoming dividend. If an investor buys the shares on or after this date, the dividend will go to the seller.

Below, we take a look at the list of shares that are trading ex-dividend tomorrow.

Sandfire Resources Ltd (ASX: SFR) shares will trade ex-dividend for the mining company’s 3 cents per share fully franked dividend. This will be paid to eligible shareholders on 30 March. Sandfire shares are currently swapping hands for $5.55, up 0.91%.

TPG Telecom Ltd (ASX: TPG) shares will also trade ex-dividend on Tuesday for the telco giant’s fully franked 8.5 cents per share final dividend. Shareholders will have to wait until 13 April for their paycheck. TPG shares are fetching for $5.66 apiece, up 1.25%.

Yancoal Australia Ltd (ASX: YAL) shares are set to trade without the rights to the mining outfit’s unfranked 70.4 cents per share final dividend. Yancoal shareholders will then be paid this dividend on 29 April. At the time of writing, Yancoal shares are going for $5.18, up 0.78%.

Foolish Takeaway

To qualify for any of these dividends you need to make sure you are on the share registry at the close of trade today.

After that, you will still qualify for the dividend even if you sell the shares tomorrow or at a later date.

The post These ASX 200 shares trade ex-dividend tomorrow. Here’s what you need to know appeared first on The Motley Fool Australia.

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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 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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With sky high fuel prices expected to accelerate the already rapid shift to electric vehicles, demand for lithium looks set to continue to increase strongly in the coming years.

This bodes well for prices of the battery making ingredient and the companies mining the white metal.

With that in mind, let’s take a look at two ASX lithium shares that have been rated as buys and tipped to shoot notably higher from current levels. They are as follows:

Allkem Ltd (ASX: AKE)

The first ASX lithium share to look at is Allkem. It is a top five player in the industry following the merger of Galaxy Resources and Orocobre last year. Allkem has a portfolio of high quality operations and projects across a range of locations and is already benefiting greatly from high lithium prices.

Morgans is very positive on Allkem and recently named the company as its top pick in the sector. It has an add rating and $14.83 price target on the company’s shares. This compares to the latest Allkem share price of $10.46.

Morgans commented: “AKE is a pure play lithium producer with diversified products (spodumene, LiCO and borax) and geographies (WA and Argentina) that is set to expand. The almost completed Naraha plant will allow AKE to grow vertically into the lithium hydroxide market, supported by increased Argentinian brine production.”

“The lithium market has seen strong price increases in CY21 but we don’t see signs of a break to this momentum yet. We expect EV demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification,” it added.

Vulcan Energy Resources Ltd (ASX: VUL)

Another ASX lithium share to look at is Vulcan. It is the Germany-based lithium developer behind the massive Zero Carbon Lithium Project. Management notes that this is Europe’s largest lithium resource and large enough to satisfy Europe’s lithium needs for many years to come.

While it is not yet producing lithium, management is aiming to commence production in 2024. At which point, it has signed away huge volumes of lithium already to eager buyers.

This went down well with Germany-based broker Alster Research. It currently has a buy rating and $25.00 price target on the company’s shares. This compares to the latest Vulcan share price of $9.10.

It commented: “By finalizing the deal with LGES, Vulcan has now five definitive agreements with high-profile customers. We consider this as a clear sign for the high demand for battery metals from the phasing out of the combustion engine. At this point, Vulcan has marketed its initial production volumes for the first 5-6 years.”

“In the near term, we expect the admission to FSE as a catalyst for the stock, as future capital increases will be accessible to a broader audience. Thus, liquidity and interest will most likely increase. We confirm our PT of AUD 25.00, equivalent to EUR 15.81, and reiterate our BUY recommendation,” Alster added.

The post 2 ASX lithium shares that brokers rate as buys with huge upside potential appeared first on The Motley Fool Australia.

More reading

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• Why did the Vulcan Energy (ASX:VUL) share price plunge 6% on Monday?
• Get ready! The ASX shares set for a decade-long tailwind: expert

Motley Fool contributor James Mickleboro owns Orocobre 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 Nickel Mines (ASX: NIC) share price is falling today amid an update on its Oracle Nickel Project.

Nickel Mines shares are currently trading on the ASX at $1.17, a 2.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% at the time of writing.

Let’s take a look at what is happening at Nickel Mines.

Oracle nickel project

Nickel Mines advised the company’s Oracle Nickel Project in Indonesia has been granted corporate tax relief. The project is under construction at the Indonesia Morowali Industrial Park in Central Sulawesi, Indonesia.

Nickel mines signed an agreement with partner Shanghai Decent Investment to acquire a 70% interest in the project in December. In February, the miner completed the acquisition of an initial 10% interest in the project.

The venture has been granted tax concessions for 10 years of production plus a further 2 years at 50% of the corporate Indonesian tax rate.

Nickel Mines managing director Justin Werner said the Oracle Nickel Project has made “tremendous progress” since December.

All 12 of our RKEF lines that are either in operation, commissioning or under construction have been granted these tax concessions in recognition of meeting the expenditure and investment conditions set by the Indonesian government.

These tax concessions along with the very low levels of sustaining capex required by our RKEF operations have resulted in 97%-99% EBITDA to free cash flow conversion over the course of 2021.

Nickel Mines hopes to complete its 70% stake in the project by the end of the year.

Last week, the Nickel Mines share price had a turbulent week. The company’s shares have fallen 29% from market close on Monday 7 March to their current price.

As my Foolish colleague Tristan reported, the company addressed media speculation regarding a short position in LME nickel held by the Tisinghan group.

Nickel Mines also withdrew a share purchase plan after receiving applications totalling $57 million. The company had been aiming to raise $18 million.

Last week, the London Metal Exchange suspended trading in nickel after record price increases on commodity markets.

Nickel mines on the ASX snapshot

The Nickel Mines share price has plunged around 17% in the past year, dropping 18% year to date.

In the past month, the miner’s shares have taken an 18% hit, sliding 29% in the past week alone.

For perspective, the benchmark ASX index has returned around 5% over the past year.

The post Nickel Mines (ASX:NIC) share price slides despite Indonesian project update appeared first on The Motley Fool Australia.

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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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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.

The past few months have not been friendly to high-multiple, high-growth tech stocks. Soaring inflation has pushed the Fed to plan to raise interest rates this year, sparking a sell-off into safer assets. Add in the recent geopolitical turmoil, and we have the ingredients for major uncertainty in the stock market. 

Streaming platform Roku (NASDAQ: ROKU) has been severely affected and its stock has been in a downward spiral since last July. Roku’s share price has fallen roughly 50% so far in 2022, as overall market pessimism continues hammering the stock. The company is also facing its own set of problems, giving investors lots to think about. 

Should you scoop up discounted shares in this streaming business today? Let’s take a closer look.

Roku is dealing with inflation 

Like the rest of the economy, Roku is facing inflationary pressures and supply-chain issues relating to the company’s sale of media sticks. While hardware sales only represented 17% of the business in 2021, over the past three quarters, Roku has posted a widening loss — a negative 28.4% in the most recent quarter on a gross margin basis. Management has decided not to pass on higher component costs to customers. 

Roku’s licensed TV partners are also trying to navigate the situation. “Similar to Q3, overall U.S. TV unit sales in Q4 fell below pre-COVID 2019 levels,” Anthony Wood, Roku’s founder and CEO, highlighted in the shareholder letter. These inventory challenges are clearly hurting sales figures. Since Roku’s main objective is to get its operating system into as many households as possible, any headwind to achieving this certainly hurts company performance.  

In 2021, 83% of Roku’s overall sales came from its platform segment, which includes high-margin advertising and subscription fees. This is the bread and butter of the business, but even it is struggling in the current economic environment. Organizations that advertise on Roku’s platform, particularly in industries like autos and consumer packaged goods, pared back ad spend in the fourth quarter due to their own supply chain disruptions. 

Although Roku increased revenue 33% in Q4 2021, the growth rate missed Wall Street expectations. Furthermore, first-quarter 2022 guidance of 25% year-over-year sales growth disappointed as well. Higher component costs and ongoing supply-chain challenges will continue to negatively affect Roku in the near term, so investors shouldn’t be surprised if the player segment’s gross margin remains negative in the next few quarters. 

On a positive note, I believe that these issues will prove to be temporary. And the market’s pessimism on Roku provides a great buying opportunity for investors. 

The future still looks promising 

If we zoom out and focus on the bigger picture, we’ll see that Roku is in a prime position to benefit from the world’s transition away from traditional cable TV and toward streaming entertainment. 

Roku is the top streaming platform in the U.S., Canada, and Mexico by hours streamed. In 2021, Roku’s 60.1 million active accounts (up 17% year over year) viewed 19.5 billion hours (up 15% year over year) of content. And monetization continues showing strength. Average revenue per user of $41.03 over the trailing 12 months was up 43% compared to the prior-year period.  

There are 1 billion cable-TV subscriptions worldwide, signaling a massive opportunity ahead for Roku. On a micro level, Roku’s management cites Nielsen data that shows that the average household in the U.S. watches eight hours of TV per day. And Roku’s average active account streams 3.6 hours per day, leaving room for engagement to grow in order to control more TV time. 

And as more TV time goes to streaming, advertising dollars will ultimately follow. According to eMarketer, connected-TV ad spending in the U.S. is forecast to exceed $30 billion in 2025, increasing its share of total digital ad spending. Roku is in an extremely advantageous position to capitalize on this trend. 

Valuation is at a three-year low

Roku’s stock is now trading for 5.7 times 2021 revenue. This is the lowest multiple shares have sold for in about three years. The market has completely thrown out Roku with other tech stocks. But this business is a huge leader in the streaming space, and it also has the chance to capture a big chunk of ad dollars that will inevitably flow to connected TV over the next decade. 

With a more attractive valuation today and a long-term thesis that remains intact, Roku’s stock looks like a screaming buy right now. 

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

The post Down 50% in 2022, should you buy this top streaming stock right now? appeared first on The Motley Fool Australia.

More reading

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Neil Patel owns Roku. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Roku. 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.

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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

————

Even though it’s only around lunchtime, the Woodside Petroleum Limited (ASX: WPL) share price has already had a wild ride so far during today’s trading. At present, Woodside shares are down 0.63% at $31.78. But soon after market open, Woodside shares were up, and up convincingly. After opening at a flat $32 a share after closing at $31.98 last week, Woodside quickly rose as high as $32.49 in the first hour or two of today’s session. That was a gain close to 1%. But it wasn’t to last.

So what on earth is going on here? After all, oil prices have started the week on the rise. As my Fool colleague James covered this morning, oil was up more than 3% overnight, although that was after a week of heavy falls last week. So it could be some deeper issues that investors are having with the global ructions in the energy market that are currently playing out.

According to a report in The Australian today, Woodside CEO Meg O’Neill reckons the spotlight is now on natural gas, particularly in light of the war in Ukraine. Not only have oil prices exploded in recent weeks, largely due to the fallout from the war, but gas prices have followed suit.

Woodside share price falls, but CEO says gas is the future

O’Neill told the Australian that 20-25% of Woodside’s LNG (liquified natural gas) production in 2022 will be sold at spot prices, which means the company will benefit well from the rising prices. Unfortunately, she doesn’t believe Woodside is in a position to meaningfully make up any shortfalls in the European gas market that have resulted from the sanctions that European nations are placing on Russia: “the transportation costs just make it uneconomic”.

However, she is more excited about the role Woodside can play in helping wean Japan off Russian gas. Japan, the third-largest economy in the world, reportedly “buys between 20 and 25 per cent of Russia’s LNG exports”. Here’s what O’Neill had to say about that opportunity:

What the Japanese do in the short term is a little hard for me to say. Long term, I think Japan will be looking to the question of where should they get their energy from and they will be leaning more towards countries like Australia.

Even though Woodside shares have had a tough day today, the ASX 200 energy giant is still up almost 40% in 2022 so far.

At the current Woodside share price, the oil company has a market capitalisation of $31.01 billion, with a dividend yield of 5.85%.

The post Woodside (ASX:WPL) share price slips but CEO says Ukraine puts ‘spotlight’ on natural gas appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why are ASX 200 oil shares taking such a beating today?
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’

Motley Fool contributor Sebastian Bowen 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 1.1% to 7,142.8 points.

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

Elders shares jump

The Elders Ltd (ASX: ELD) share price is shooting higher today after the release of a trading update. The agribusiness company revealed that trading conditions have been strong during the first half. As a result, it is expecting its underlying earnings before interest and tax (EBIT) to increase by 20% to 30% in FY 2022.

Magellan funds under management fall again

The Magellan Financial Group Ltd (ASX: MFG) share price is under pressure again on Monday. The fund manager’s shares dropped to a multi-year low after it revealed a 10.5% reduction in its funds under management since 25 February. At the close of US trading on Friday 11 March, Magellan had funds under management of approximately $69.1 billion. This compares to $77.2 billion late last month. Its poor performing global fund weighed heavily on its funds under management again.

CSL higher on plasma collection optimism

The CSL Limited (ASX: CSL) share price is rising today. This appears to have been driven by optimism that plasma collections are improving. A note out of Citi highlights that industry data is pointing to a recovery in collections. So much so, it is forecasting 2022 collections to be above pre-pandemic levels. The broker expects this and the completion of its acquisition of Vifor Pharma to support its shares in the coming months. Its analysts have a buy rating and $335.00 price target on its shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Elders share price with an 11% gain. This follows the release of its impressive trading update this morning. The worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a 3% decline. Zip’s shares are now down 65% in 2022.

The post ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble appeared first on The Motley Fool Australia.

More reading

• 2 punished ASX shares that don’t deserve to be (and experts are buying)
• Why is the Elders (ASX:ELD) share price jumping 11% to a decade-high?
• Magellan (ASX:MFG) share price hits multi-year low after fund outflows accelerate
• Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst
• $20k invested in these ASX shares 10 years ago is now worth…

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 CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Elders 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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