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

Up one day, down the next: Electric vehicle leader Tesla (NASDAQ: TSLA) stock is falling again Thursday, down by 5% as of 12:46 p.m. ET.

And you can blame the analysts at Piper Sandler for that.

So what

The news around Tesla Thursday has been broadly positive, after all. Analysts at megabank Citigroup announced that based on data from Citi’s proprietary “EV mind-share tracker,” Tesla’s electric cars “dominate the broader EV market.” This is despite rising competition from the EV offerings of legacy automakers such as Kia, Hyundai, Ford Motor Co., and General Motors, reports StreetInsider.com.

Citi also reported that interest in once-red-hot rival EV upstart Rivian has slumped since that company’s price-hike fiasco earlier this month. The bank says Tesla leads the pack with 45% “mind share,” with Ford, Kia, and GM its closest (yet not even close) rivals.

All of the above, of course, should have been good news for Tesla and its stock, but for one thing: According to analysts at Piper Sandler, Tesla’s high profile brings with it unique geopolitical risks — particularly in China — that could damage its stock price.

Now what

As Piper Sandler explains, there are pluses and minuses to Tesla’s China business. On the plus side, its Shanghai factory is going great guns, producing 56,515 cars in February, of which nearly 60% got exported. With production accelerating, Piper Sandler foresees Tesla producing perhaps 70,000 cars in China in March — and as many as 193,000 or more in all of Q1.  

That’s the good news. Now here’s the bad.

The bigger Tesla’s business in China gets, the more of a potential liability it becomes in the event of continued “deteriorating US-China relations.” As Piper explains, “If American companies are eventually used as pawns in a wider geopolitical conflict, then Tesla shareholders would likely suffer.”

Granted, Piper’s only highlighting a potential problem here. China doesn’t seem to be using Tesla as a pawn right now. But the Chinese government has criticized Tesla in the past, has a history of promoting its domestic companies over foreign rivals, and — for that matter — hasn’t shied away from crushing entire industries within its own economy when that was deemed a reasonable way to pursue other policy goals.

Piper Sandler is right to highlight the risk — even if Tesla investors might not appreciate it right at the moment. 

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

The post Why Tesla stock tanked today appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock fell on Thursday
• Giddy up: Core Lithium (ASX:CXO) share price races 11% higher on Tesla deal
• Why Tesla stock popped today
• Tesla, Coinbase help the Nasdaq hold its ground Monday
• ASX lithium shares or EV makers, what’s been the better bet?

Rich Smith has no position in any of the stocks mentioned. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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/VKCHQ8c

The ASX share market continues to be volatile, which gives investors the opportunity to buy ASX growth shares at cheaper prices.

Businesses that are still growing revenue whilst the share price falls could be an idea for investors to look at. The experts have identified two ASX businesses that have loads of growth potential for the long-term.

After a heavy sell-off since the start of the year, these two ASX growth shares have been picked by analysts:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is the leader of Australia’s online homewares and furniture retailing industry. It has a long-term goal of becoming the largest, online or offline.

It sells hundreds of thousands of products. Plenty of those are shipped directly by the supplier, which decreases inventory risk for the ASX growth shares and also allows it to offer customers a wider range on the website. Temple & Webster also has a growing private label range, which typically comes with a higher profit margin.

Despite all of the impacts of COVID-19 on the supply chain and other effects, Temple & Webster has managed to keep growing revenue very quickly. The FY22 first-half revenue was up 46% year on year. It was a 218% increase of revenue over two years.

The growing scale increases the operating leverage, allowing the company to accelerate investment in future growth and take market share. Some areas for re-investment include marketing, technology development, product range and the overall customer experience.

The increased scale provides cost advantages in product sourcing, logistics and marketing.

The ASX growth share is working on growing its presence in ‘trade and commercial’ as well as ‘home improvement’. The company says that the home improvement category adds another $16 billion to its addressable market.

Temple & Webster is currently rated as a buy by the broker UBS with a price target of $11.80.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading breast screening medical technology business. It is growing its focus and abilities with ‘risk’ for the patient to maximise the chance of finding breast cancer early.

It is utilising its 49 million images, which is one of the world’s biggest data sets of breast x-rays, to change from screening for detection to prevention.

The Volpara share price has fallen by a third since the start of the year. But the company continues to grow.

In the company’s FY22 half-year result its gross profit margin was 91.4%.

It has also made an initial investment into RevealDx, a lung AI company based in Seattle, and signed a collaboration agreement with Riverain Technologies, positioning Volpara for lung screening expansion.

The company’s average revenue per user (ARPU) continues to grow – it was US$1.46 in the first half of FY22 and increased to US$1.47 in its third quarter. The third quarter saw average ARPU deals of US$1.65.

The ASX growth share has a market share of 35% of US women being screened. Third quarter revenue was NZ$7 million, up 50% year on year. It’s on track to meet annual revenue guidance for the year of NZ$25 million. Annual recurring revenue has now reached NZ$30.4 million.

It’s currently rated as a buy by the broker Morgans, with a price target of $1.94.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• Down 33% in 2022, is this ASX healthcare share a buy following the company’s latest trial result?
• 4 ASX healthcare shares at 52-week lows
• Leading brokers name 3 ASX shares to buy today
• What’s the outlook for ASX retail shares like Kogan (ASX:KGN)?
• Here are 4 ASX shares insiders are putting their money behind

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 Temple & Webster Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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/0URxeX5

The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.26% in early trade.

CommBank closed yesterday at $99.74 and is currently trading at $99.48.

That puts the CBA share price up 6.5% since the closing bell on 28 February, handily outperforming the 1.1% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same period.

So, what’s driving the big bank’s outperformance?

$1.8 billion divestment kickstarts the month

The biggest news likely impacting the CBA share price came on the first of the month.

That’s when CommBank announced it had entered into a binding sale agreement to divest almost half its 10% shareholding in the Chinese Bank of Hangzhou Co Ltd.

CBA reported the deal to be worth some $1.8 million. The bank will retain approximately a 5.6% stake in the Bank of Hangzhou.

Atop the post-sale profit benefits, CommBank also said the sale should boost its capital buffer ratio (CET1) by 0.35% once the deal is finalised.

“The partial sale of our shareholding is consistent with our strategy to focus on our core banking business in Australia and New Zealand,” CBA CEO Matt Comyn said about the divestment.

The CBA share price also received some positive coverage in the first week of March from Bell Potter.

The broker’s analysts signalled a buy rating for CommBank with a $108 price target. That’s 8.5% higher than the current price.

As my Fool colleague James Mickleboro explained on the day, “The broker’s price target is based on a composite valuation of discounted cash flow, dividend yield, return on equity (ROE), and sum-of-the-parts (SOTP) weighted equally.”

Bell Potter also lifted its price target because of the bank’s estimated $5.53 billion in surplus capital.

CBA share price snapshot

Over the past year, CBA shares have gained 15%, compared to a gain of 6% posted by the ASX 200.

Year-to-date the CBA share price is down 2.7%.

The post Why has the CBA (ASX:CBA) share price climbed 7% so far this month? appeared first on The Motley Fool Australia.

More reading

• Own CBA (ASX:CBA) shares? Here’s why the bank’s boss is ‘very optimistic’ for 2022
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Record $36bn in dividends could help ASX share market recovery
• CBA (ASX:CBA) boss says this presents ‘a lot of opportunity’ for the bank
• ANZ has the largest ASX big four bank dividend yield right now. What?

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/0eCwuGX

The Zip Co Ltd (ASX: Z1P) share price is on course to end the week in a positive fashion.

In morning trade, the buy now pay later (BNPL) provider’s shares are up 2.5% to $1.75.

This follows the opening of the company’s share purchase plan on Friday.

Share purchase plan

This morning Zip revealed that its share purchase plan has now opened to eligible shareholders. To be eligible, you needed to be on the company register at the close of play on Friday, 25 February 2022.

Eligible shareholders now have the opportunity to subscribe for up to $30,000 worth of new Zip shares as part of its aim to raise $50 million.

However, whether demand will be there from shareholders is difficult to say. When Zip raised $148.7 million through a placement to institutional investors two weeks ago, it gave them a generous 14% discount.

Retail shareholders look likely to get a discount of just 2% unless there is a big recovery in the Zip share price in the coming weeks.

This is because the share purchase plan will see shares issued at the lesser of the placement price of $1.90 per new share or a 2% discount to the volume weighted average price of Zip’s shares during the five trading days up to and including Friday, 1 April 2022, rounded to the nearest cent.

With the Zip share price currently fetching $1.75, it seems more than likely that it will be the second option that dictates the price of the share purchase plan.

Why is Zip raising funds?

The proceeds raised under the placement and share purchase plan will be used to help Zip strengthen its balance sheet and position the company for sustainable growth.

This is by providing more capital runway to execute on the potential synergies from its proposed $491 million all-scrip acquisition of Sezzle Inc (ASX: SZL).

The post The Zip (ASX:Z1P) share purchase plan opens today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Is the Zip (ASX:Z1P) share price heading on a one-way street to $1?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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 ZIPCOLTD FPO. 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/9EZj8KM

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 world of cryptocurrency and blockchain has been the center of a great deal of controversy for some time now: Should it be regulated? How can it be regulated? All these questions have been tossed around without any solid answers from the U.S. government.

Some crypto investors have feared that it’ll be regulated into nothingness, so when President Biden announced he would be presenting an executive order regarding crypto, some investors were left holding their breath, including the owners of metaverse real estate and other items secured by non-fungible tokens (NFTs).

But instead of fear and contention, the executive order unveiled on March 9, 2022, seems promising and has many experts in the crypto world breathing a sigh of relief. Here are some pieces of good news coming out of this big day.

1. Crypto and related assets will finally have a uniform set of rules

Currently, much of the regulation of crypto and other assets like NFTs is done through enforcement by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Unfortunately, having too many cooks in the kitchen is always a huge mess, even if you’re talking about an investment tool.

This executive order mandates that everyone get together and figure out how to be on the same page about blockchain-based investments and how best to regulate them. This brain trust includes the parties you’d expect, including representatives from the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency, as well as other important folks like the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the attorney general, and many more.

It may not sound like a big deal, but it’s actually critical that rules related to the cryptocurrencies you’re using to buy your metaverse properties are uniform across the entire government. It’ll help project the value of your investments by creating consistency in enforcement when there’s trouble, as well as consumer confidence and legitimacy from the simple act of being regulated.

2. The government seems willing to work with the crypto community

Not only is the US government interested in exploring Central Bank Digital Currencies (CBDCs), which are basically a digital form of the dollar, it’s looking for guidance from crypto community experts. This legislation will not have an overnight solution, and all agencies involved have been asked to conduct thorough research and submit well-considered reports on all sorts of crypto-related issues. 

Inevitably, this is going to mean coming into contact with and listening to the people who are currently involved with NFTs and cryptocurrencies. These are the experts who have the data that will be necessary to formulate a plan of action. Working on problems from within the government is always going to be the easier route for crypto enthusiasts, including owners of metaverse real estate.

The issue of the digital dollar is an interesting one and one that could potentially make purchasing land in the metaverse easier and more attractive to average people looking to take their first steps into metaverse investing. If a CBDC dollar is issued in a way that can easily interact with current crypto markets, exchanging digital dollars for MANA or SAND on the fly would eliminate a lot of barriers to purchase for a lot of potential metaverse investors.

Reducing the steps that are involved in getting into the world of crypto for a first-time investor, such as removing the need to convert fiat dollars into cryptocurrency in order to fund a digital wallet for metaverse buys, may make the entire metaverse a lot less intimidating.

Crypto and metaverse legislation isn’t set in stone – yet

Although this first step was a doozy, the executive order issued by President Biden primarily focuses on how to begin to approach regulations that should surround cryptocurrencies and other blockchain assets. It’s a big deal simply because it finally exists, after years of politicians simply kicking the rock down the road.

For holders of digital assets, changes are almost certainly coming, but they should be neither swift nor opaque, given the approach that’s being taken at the moment. Having experts from within the crypto community help with research will help protect the interests of investors while the very laws that will finally give crypto assets wider real-world integrity are being crafted.

I suspect that once people feel more secure about purchasing metaverse land backed by NFTs, since there will be laws and regulations in place to protect from the worst actors, they’ll become an even more important part of the crypto asset pool.

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

The post 2 pieces of good news about Biden’s crypto mandate for metaverse investors appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Warning: Only 4 ASX shares just added to ASX 300 are profitable

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/vogdYu7

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?

Investors have punished the stock of Rivian Automotive (NASDAQ: RIVN) this year, sending its shares down by more than 60%. The negative sentiment was still in evidence Thursday ahead of its fourth-quarter and full-year report, which is due out after the closing bell. Shares of the electric vehicle start-up were down almost 10% in early trading, and remained lower by 9% as of 1:12 p.m. ET.

So what?

In this next report to investors, the company will be forced to confront early missteps such as a lack of communication regarding the departure of its chief operating officer, its failure to hit internal production estimates for 2021, and a recent price increase it was forced to walk back. But investors will be more interested in what Rivian says about its prospects for ramping up its production volume, updated reservation data, and its plans for expansion. They will be particularly interested to hear about the status of its contract to sell up to 100,000 commercial delivery vans to Amazon.com Inc (NASDAQ: AMZN). 

Now what?

Supply chain problems are being reported by most automakers — large legacy names as well as start-up EV makers. Rivian has already made it clear that its materials costs are increasing. And after having to backtrack on its announced price increase for existing reservation holders, the company will now have to bear those added costs itself. Investors will want to hear more details about those higher expenses and how they will affect margins. 

While its 60% year-to-date share price decline may seem to create a tempting entry point, investors should keep in mind that the company still carries a lofty market cap of $36 billion. 

Any downward adjustments to its 2022 production estimates or suggestions that its path to profitability will take longer than previously forecast will likely knock the stock down even further. Those details are what investors should focus on in Rivian’s report when it arrives. 

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

The post Why Rivian tanked ahead of earnings after the bell appeared first on The Motley Fool Australia.

More reading

• 3 stocks that could be worth more than Apple by 2035
• Why Rivian stock keeps going down
• Yet another billionaire buys Rivian stock: Should you too?

Howard Smith owns Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon. The Motley Fool Australia has recommended 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.

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

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? 

The value of major cryptocurrencies fell on Thursday as the stock market dropped and investors worried about inflation and the continuing Russian invasion of Ukraine. This follows a day when prices shot higher after President Joe Biden signed an executive order to study digital assets and investors hoped US regulators would finally define rules for cryptocurrencies. 

As of 1pm ET, Bitcoin (CRYPTO: BTC) had fallen as much as 8% in the previous 24 hours, Ethereum (CRYPTO: ETH) was off as much as 6.3%, and Dogecoin (CRYPTO: DOGE) was down 7.4%. 

So what? 

Multiple headwinds have hit the crypto market today. The most notable was a report from the Labor Department that said inflation hit 7.9% annually in January, the highest rate in 40 years. High inflation could mean that the Federal Reserve will be more eager to increase interest rates in an effort to cool off the economy, which could mean lower asset values. Cryptocurrencies generally trade with risky assets, so that’s why they’re off sharply in trading today. 

Inflation is also being driven by an increase in commodity prices like oil, partly as a result of bans on Russian oil imports around the world. High commodity prices can pull spending away from other parts of the economy, leading to a recession. So, investors are trying to balance the risk of a commodity-driven recession and the need for higher interest rates to control inflation. 

As an asset class that’s been correlated with the stock market for the last six months, it’s no surprise that cryptocurrency values are dropping along with the market on today’s uncertainty. 

Now what?

Volatility continues to be commonplace for cryptocurrency investors and that’s actually undermined some of the cases for cryptocurrency. Bitcoin specifically has proven not to be a very good hedge for inflation (see today’s reaction) or a safe-haven asset like gold. In fact, it’s traded more like a growth stock than anything else in the last year. 

I still think the case for cryptocurrencies is the utility they can bring to markets. Financial transactions can happen in an instant, digital assets can be traded and verified on the blockchain, and more innovations will be built over time. That’s where the true value will come from and frankly doesn’t have much to do with the price of cryptocurrencies day to day. 

As much as today’s move hurts, I think the executive order from the White House yesterday is far more consequential. It could pave a path to more digital asset ownership, cross-border transactions, and even the U.S. government creating its own digital currency. That’s very bullish for the industry long-term, which is why I’m holding cryptocurrencies and don’t plan on selling even on down days like this. 

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

The post Why Bitcoin, Ethereum, and Dogecoin dropped today appeared first on The Motley Fool Australia.

More reading

• Fancy getting your paycheque in crypto? You’re not alone
• The Bitcoin price is rocketing 8% today. What’s going on?
• Will soaring commodity prices hold back the Bitcoin price in 2022?
• 52% of Aussies will never put money in this investment
• How might Visa and Mastercard’s Russia ban impact the Bitcoin price?

Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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/IsHCwzf

The Westpac Banking Corp (ASX: WBC) share price could be close to being fully valued.

That’s the view of the team at Bell Potter, based on a note released this morning.

What did the broker say about the Westpac share price?

According to the note, the broker has retained its hold rating and $24.00 price target on the bank’s shares.

Based on the current Westpac share price of $22.65, this implies modest potential upside of 5.9% for investors over the next 12 months.

This isn’t deemed enough of a potential return to warrant a rating any better than a hold.

Why isn’t Bell Potter more positive?

The note reveals that Bell Potter has been looking over Westpac’s bold cost cutting plans and has doubts that it will achieve its targets.

In case you’re not familiar with the bank’s plans, Westpac is aiming to reduce its cost base down to $8 billion by 2024. If it achieves this, it will be a big boost to its earnings growth in the coming years. However, Bell Potter has been crunching the numbers and doesn’t think this target is achievable. It explained:

“Back in FY21, total costs were $5.24bn in the first half and $5.70bn in the second half. The cost increase in the second half is 9%, made up as follows: 1) +$138m BAU including lower leave utilisation from COVID-19 restrictions; 2) +$131m investment; 3) +$140m investment mainly in financial crime capabilities and systems, product governance, data and regulatory capital charges; and 4) +$55m mortgage related volumes and COVID-19 support.”

“BAU is business as usual, so there is no need to factor this one out. The same can be said for structural productivity (i.e. efficiencies, thus the negative numbers), investment (we take this to mean activity to overcome erosion or similar in premises and equipment) and the usual risk and compliance. We have however excluded COVID-19 and similar items, being one-offs in a way. While the main increase is only -$10m in 1H20/2H20, it now jumps to +$409m in the next year.”

“In summary, this amounts to roughly $4.99bn on average (with a low of $4.60bn and a high of $5.65bn) or $9.98bn for the full year and compares with the $8.00bn cost expectation in FY24e. Even with a $4.50bn low or $9.00bn for the full year, there is still a sizeable gap of $1.00bn. In terms of costs as a % of average assets, we will assume a low of say 0.50% even with a denominator of $900bn. This works out to be $4.50bn again for the costs or $9.00bn for the full year, thus a gap of $1.00bn as well.”

All in all, it appears to feel that investors that believe the Westpac share price is dirt cheap right now because of its cost reduction plans, may want to think again.

The post Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Broker names 2 high yield ASX dividend shares to buy right now
• 3 blue chip ASX 200 shares analysts are tipping as buys
• ANZ has the largest ASX big four bank dividend yield right now. What?

Motley Fool contributor James Mickleboro owns 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/OAgdwUf

The Yancoal Australia Ltd (ASX: YAL) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO).

Just this week, the energy producer’s shares accelerated to a multi-year high thanks to record high prices for coal.

With the war between Russia and Ukraine closing in on its third week, commodity prices have soared.

At yesterday’s market close, Yancoal shares finished 1.20% higher to $5.05 apiece.

Why are investors paying attention to Yancoal shares?

It appears investors are buying up Yancoal shares to get in on the commodity boom, as well as trading ex-dividend next week.

Investors need to buy Yancoal shares before market close on Monday to be eligible for the final dividend. The ex-dividend date is on Tuesday 15 March.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can Yancoal shareholders expect payment?

For those who are eligible for the Yancoal dividend, shareholders will receive a payment of 70.4 cents per share on 29 April. This comprises the 2021 final dividend of 50 cents per share and a special dividend of 20.4 cents per share.

Both dividends are unfranked which means shareholders will miss out on any imputed tax credits from this.

Management noted that the special dividend is a direct result of Yancoal benefiting from record coal prices in 2021.

The $930 million final dividend represents a payout ratio of 118% of profit after tax.

Yancoal share price snapshot

Since the beginning of 2022, the Yancoal share price has almost doubled in value.

When looking at the last 12 months, its shares have further accelerated, up around 115%.

Yancoal shares touched a multi-year high of $5.30 on Monday 7 March off the back of rising coal prices.

Yancoal commands a market capitalisation of roughly $6.69 billion with roughly 1.32 billion shares on its books.

The post Want to secure this monster ASX coal share dividend? Here’s what you need to do next week appeared first on The Motley Fool Australia.

More reading

• Why the Ukraine crisis is shining the spotlight on ASX coal shares
• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Aussie coal is in hot demand, and these ASX coal shares are booming
• Here are the top 10 ASX shares today

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.

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

One of the hottest areas of the market over the last 18 months has been the lithium sector.

But given the strong gains that have been generated over this time, investors may be wondering whether it is too late to invest in lithium shares.

The good news is that it doesn’t appear to be, based on what analysts are saying about the shares listed below.

Here are three buy-rated lithium stocks:

Allkem Ltd (ASX: AKE)

The first lithium share to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada. The team at Morgans is very positive on Allkem and recently named the company as its top pick in the sector. The broker expects electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification. Morgans has an add rating and $14.83 price target on its shares.

Lake Resources N.L. (ASX: LKE)

Another ASX lithium share that is rated as a buy is Lake Resources. It is developing the Kachi lithium brine project in north-western Argentina. This is a huge project which is aiming to deliver base case production of 50,000 tonnes of lithium carbonate once operational. But it doesn’t stop there. Including its Olaroz and Paso projects, management is targeting annual production of 100,000 tonnes of high purity lithium by 2030. Bell Potter is a fan of the company and has a speculative buy rating and $1.82 price target on its shares.

Liontown Resources Limited (ASX: LTR)

A final ASX lithium stock to consider is Liontown. It is the company behind the Kathleen Valley Lithium Project in Western Australia. This project will be producing 500,000 tonnes per annum of spodumene when it commences in 2024. Pleasingly, it has already signed deals with LG Energy Solution and Tesla for over half of this offtake. This appears to have gone down well with Bell Potter, which has put a speculative buy rating and $3.06 price target on its shares.

The post 3 ASX lithium stocks that brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX growth shares analysts believe have huge upside potential
• What’s the difference between lithium hydroxide and spodumene and which ASX shares are involved with each one?
• Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher
• Get ready! The ASX shares set for a decade-long tailwind: expert
• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns Allkem 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.

from The Motley Fool Australia https://ift.tt/7gNa0sw