So these are the moments when the share market bears say “I told you so” with a smirk.

The S&P/ASX 200 Index (ASX: XJO) has plunged 8% since the start of the year, while the S&P/ASX All Technology Index (ASX: XTX) has lost a horrifying 17%.

GMO co-founder and famous perma-bear Jeremy Granthm was at it again last week, warning that this correction was just the start of a massive crash.

“We are in what I think of as the vampire phase of the bull market, where you throw everything you have at it: you stab it with Covid, you shoot it with the end of QE and the promise of higher rates, and you poison it with unexpected inflation… and still the creature flies,” he wrote on the GMO blog.

“Until, just as you’re beginning to think the thing is completely immortal, it finally, and perhaps a little anticlimactically, keels over and dies. The sooner the better for everyone.”

He personally would escape shares, especially growth stocks.

“Speaking personally, I also like some cash for flexibility, some resources for inflation protection, as well as a little gold and silver.”

Why pessimists like Jeremy Grantham are wrong

Frazis Capital Partners portfolio manager Michael Frazis told The Motley Fool he disagrees with Grantham.

“Investors who liquidate in market crashes often get temporary relief when markets go lower, but invariably it’s the investors who buy during times like this that make the best long term returns.”

Serial pessimists like Grantham, who predict doom and gloom every year, are bound to look like geniuses every few years, just because of natural market cycles.

According to Frazis, such cynics are “doing no one any favours” by encouraging panic selling.

“Usually constant doomsayers are ignored,” he said.

“The fact Jeremy Grantham is in the headlines now says more about everyone else, and the current state of angst amongst investors, than whether he is right or wrong.”

Frazis pointed out that in retrospect, 2008 — when the global financial crisis hit — was “a great long term buying opportunity”, even though the selling continued into 2009.

“Jeremy Grantham was calling for further crashes in 2010. Similarly, many of the largest investors in the world swore off technology after the tech crash, and then missed the vast bulk of value creation over the following two decades,” he said.

“In both cases, the bearish view was vindicated in the short term, but looking back we can see how misguided that really was.”

Take a long-term view

Frazis urged investors to take a long-term view during turbulent times like now.

“This has been the largest rotation out of technology since the financial crisis, which proved to be an exceptional buying opportunity,” he told The Motley Fool.

“Right now in the middle of a market panic, long term business plans are strongly out of favour.”

According to the fund manager, some sentiment indicators are now at “10-year lows”. It is no time to crystallise paper deficits into actual losses.

“There are good reasons to be apprehensive in the very short term right now,” he said.

“But those who take a long term view and end up holding the shares of companies will end up receiving all the value those companies create in the future.”

The post Why the share market pessimists are wrong appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why have ASX energy shares become such hot property in 2022?
• Why the CSR (ASX:CSR) share price is on this broker’s top 2022 buy list
• These 3 ASX 200 shares are topping the volume charts on Monday

Motley Fool contributor Tony Yoo 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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Following a tumultuous start to the trading year, and with another earnings season about to kick off, we asked our Foolish contributors to compile a list of some of the ASX shares experts are loving in February. Here is what the team came up with.

Tristan Harrison: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is a large investment conglomerate that has been listed on the ASX for more than 100 years. The Soul Pattinson share price has fallen by around 11% since the start of this year, boosting the company’s prospective dividend yield.

Soul Patts owns a diverse portfolio of defensive and largely uncorrelated assets including holdings of ASX shares TPG Telecom Ltd (ASX: TPG) and Brickworks Limited (ASX: BKW). Other assets span resources, agriculture, financial services, swimming schools and more.

With a market capitalisation of almost $10 billion, Soul Pattinson has plans to make more long-term investments to continue improving its portfolio. It’s looking at areas such as education, global shares, financial services, agriculture, the energy transition, and health and ageing.

The Soul Patts share price closed Monday’s session 1.04% higher at $27.31.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Co. Ltd.

Brooke Cooper: Adore Beauty Group Ltd (ASX: ABY)  

Adore Beauty is a pure-play beauty retailer stocking more than 260 brands on its online-only store.  

In October, the company released an update for the first quarter of financial year 2022, stating its active customer count had grown to 874,000. Meanwhile, returning customers had increased 63% compared with the prior consecutive quarter. 

Things haven’t been all smooth sailing for investors in the online retailer, however. The Adore Beauty share price has slipped by around 20% since the final close of 2021, ending Monday’s session at $3.10.  

So, do these recent falls represent a buying opportunity? Some experts believe so, with brokers Morgans and UBS each having a buy rating and $6 price target on the stock. 

Motley Fool contributor Brooke Cooper does not own shares of Adore Beauty Group Ltd. 

Sebastian Bowen: BetaShares Nasdaq 100 ETF (ASX: NDQ)

This exchange-traded fund (ETF) has been in the wars over recent weeks, falling by around 9% since the start of the year. But this is exactly why it might be worth a look in February.

The Nasdaq (the index tracked by NDQ) has not been known to give investors too many pullbacks in recent years, yet here we are. NDQ houses most of the dominant US tech shares. In it, you’ll find everything from Apple and Amazon to Netflix and NVIDIA.

As such, this ETF offers an easy way to gain investment exposure to some of the biggest and most dominant companies in the world.

Motley Fool contributor Sebastian Bowen does not own shares of BetaShares Nasdaq 100 ETF.

Bernd Struben: Janison Education Group Ltd (ASX: JAN)

Janison Education provides technology-based education platforms for students and professionals around the world. The business comprises two primary segments – assessment and learning.

With its roots in Australia, some of Janison’s online assessments include the NAPLAN and ICAS tests. The company also generates some 20% of its sales outside of Australia, with a presence in around 120 countries.

The COVID-19 pandemic has served to accelerate the global transition to digital learning and assessment. Despite an easing of lockdown restrictions, this trend could see the changeover from paper-based exams to online platforms continue.

The Janison Education share price is up by more than 100% over the past 12 months, having hit a record closing high of $1.44 on 22 November. Janison shares closed Monday’s session at $1.255.

Motley Fool contributor Bernd Struben does not own shares of Janison Education Group Ltd.

Aaron Teboneras: Nearmap Ltd (ASX: NEA) 

After losing almost 14% of their value so far in 2022, Nearmap shares could be on the radar for investors this month. 

The aerial imagery specialist provided a sneak peek of its performance for the FY22 period in mid-December. Management highlighted that annualised contract value (ACV) in North America is expected to exceed that of the company’s Australia and New Zealand business for the first time.

In the same update, Nearmap also revealed a guidance range of $150 million to $160 million on a constant currency basis. This represents a potential increase of between 17% and 25% compared with the prior year.

Nearmap is scheduled to report its FY22 first-half results on 18 February. The Nearmap share price closed Monday’s session more than 7% higher at $1.34 following a stellar day for ASX tech shares.

Motley Fool contributor Aaron Teboneras owns shares of Nearmap Ltd. 

James Mickleboro: Breville Group Ltd (ASX: BRG)

Breville could be a top option for investors in February. It is the leading appliance manufacturer behind a number of popular brands including Kambrook, Sage and the eponymous Breville brand.

Breville’s products are sold in more than 50 countries across the world, with markets being added each year. This global expansion, together with favourable consumer trends and the company’s ongoing investment in research and development, has many analysts tipping Breville will grow strongly over the next decade.

One of those is Morgan Stanley. This week, the broker put an overweight rating and $36.00 price target on Breville shares. This represents possible upside of around 26% based on the Breville share price of $28.50 at the close of trade on Monday.

Motley Fool contributor James Mickleboro does not own shares of Breville Group Ltd.

The post Top ASX shares to buy in February 2022 appeared first on The Motley Fool Australia.

More reading

• Are these 2 ASX dividend shares buys in February 2022?
• Top brokers name 3 ASX shares to buy next week
• 3 high quality ETFs for ASX investors in February
• Are these 2 leading ETFs good buys in February 2022?
• Analysts name 2 ASX shares to buy right now

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 BETANASDAQ ETF UNITS, Brickworks, Janison Education Group Limited, Nearmap Ltd., and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS, Brickworks, Nearmap Ltd., and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Amazon, Apple, Janison Education Group Limited, Nvidia, and 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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Later today the Reserve Bank will meet to discuss the cash rate. While the outlook for rates is improving, it is still likely to be some time before the central bank brings rates up to a level that would allow income investors to generate a sufficient income from interest-bearing assets such as term deposits.

In light of this, the share market looks set to be the best place to earn a passive income for a little while to come. But which dividend shares should you consider buying? Listed below are two dividend shares analysts rate highly:

Adairs Ltd (ASX: ADH)

The first dividend share to look at is this furniture and homewares retailer. Its shares came under significant pressure last month following the release of a trading update which revealed that COVID headwinds had weighed heavily on its performance during the first half.

While the update and accompanying selloff were disappointing, the team at Morgans believe the latter has created a buying opportunity for investors.

The broker has put an add rating and $3.70 price target on its shares. This compares to the latest Adairs share price of $3.08. In addition, Morgans is now forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. This will mean yields of 6.2% and 8.45%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. This property company invests in properties such as government facilities, healthcare buildings, and childcare centres. These are properties that are in-demand and come with ultra-long leases.

In fact, so long are the leases, that Charter Hall Social Infrastructure REIT reported a weighted average lease expiry (WALE) in excess of 15 years in FY 2021. Combined with fixed rent reviews, this bodes well for rental growth and dividends over the next decade and a half.

Speaking of dividends, Goldman Sachs expects dividends per share of 17.1 cents in FY 2022 and 17.5 cents in FY 2023. Based on its current share price of $3.84, this implies yields of 4.4% and 4.5%, respectively. The broker currently has a conviction buy rating and $4.13 price target on its shares.

The post 2 buy-rated ASX dividend shares for February appeared first on The Motley Fool Australia.

More reading

• Are these 2 ASX dividend shares buys in February 2022?
• Why analysts are bullish on these 2 ASX dividend shares
• Broker says Adairs (ASX:ADH) share price is cheap after selloff
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking
• 2 cheap ASX shares that value investors could love

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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

• Green energy and ethical investing are getting a lot more investor attention
• Australian Ethical is benefiting from the shift of investor capital to more ethical businesses
• Fortescue Future Industries (FFI) is building a large portfolio of green energy and decarbonisation projects around the world

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There is a small but growing number of ASX shares that are benefiting from the growth of green energy and others that are being helped by the rise of ethical investing.

Investment themes may not always pan out the way that investors are thinking. Specific companies may not benefit in the expected way. But, keeping that in mind, these two ASX shares are planning to take advantage of that growth in interest and changing global views:

Australian Ethical Investments Limited (ASX: AEF)

Australian Ethical describes itself as Australia’s leading ethical investment manager. It aims to provide investors with investment products that align with their values and achieve competitive returns.

The company is experiencing positive momentum as more global capital and investment funds look to tackle climate change. Australian Ethical says that an essential part of the decarbonisation process is shifting capital flows.

This ASX share is building its capability when it comes to its investment, sales and customer service teams. It’s also enhancing its product development and technology platforms. Australian Ethical is investing in growing its brand and increasing its reach in intermediated channels.

Funds under management (FUM) growth continues for the business. In the three months to 31 December 2021, FUM increased 6% to $6.94 billion. Over the half-year to December 2021, FUM rose from $6.07 billion to $6.94 billion. Half-year underlying net profit after tax is expected to be between $5 million to $5.5 million (with a mid-point increase of around 8%).

It also recently bought a minority stake of impact investment business Sentient Impact for $5.2 million.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is best-known for being one of Australia’s largest iron ore miners.

However, it also has a young but quickly growing green division called Fortescue Future Industries (FFI). This division is aiming to take a global leadership position in green energy and green technology with a vision to make green hydrogen the most globally traded seaborne commodity in the world.

It’s not just focused on one country or just one type of green energy. One of the first major developments is (global) green energy manufacturing centres, with the first being built in Gladstone, Queensland. The first stage of centre is an electrolyser manufacturing facility with an initial capacity of two gigawatts per annum and an investment of up to US$83 million.

The ASX share has also announced a memorandum of understanding with UK-based construction company JCB and Ryze Hydrogen for the purchase of 10% of FFI’s global green hydrogen production.

It has entered an agreement with AGL Energy Ltd (ASX: AGL) to undertake a feasibility study to repurpose infrastructure at the Hunter Valley Liddell and Bayswater coal-fired power stations to generate green hydrogen from water, using renewable energy.

Fortescue also recently announced the acquisition of Williams Advanced Engineering (WAE) for US$223 million so that it can provide critical technology and expertise in high-performance battery systems and electrification.

The post 2 ASX shares riding the wave of green energy and ethical investing appeared first on The Motley Fool Australia.

More reading

• Why this broker is bearish on the Fortescue Future Industries business
• Could Australian Ethical (ASX:AEF) be about to launch a new ASX ETF?
• Top brokers name 3 ASX shares to sell next week
• What has driven the Fortescue (ASX:FMG) share price up 40% in three months?
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ended the day in the red. The benchmark index fell 0.25% to 6,971.6 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 futures flat

The Australian share market could have a good day on Tuesday despite SPI futures currently pointing to a flat day ahead. This is because Wall Street is on fire in late trade with the Dow Jones up 0.8%, the S&P 500 up 1.5%, and the Nasdaq up a sizeable 2.7%. The Reserve Bank’s impending meeting could be having some impact on sentiment.

Credit Corp half year results

The Credit Corp Group Limited (ASX: CCP) share price will be on watch today when it releases its half year results. According to CommSec, the market is expecting the debt collection company to deliver a half year profit of $42.7 million and an interim dividend of 38 cents per share.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.3% to US$87.98 a barrel and the Brent crude oil price has risen 1.3% to US$91.23 a barrel. Oil prices rose on geopolitical risks and supply concerns.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.7% to US$1,799.30 an ounce. Despite this gain, the gold price is on course to have its worst month since September.

PointsBet shares rated as a buy

The PointsBet Holdings Ltd (ASX: PBH) share price could be a bit of a bargain according to the team at Goldman Sachs. According to a note this morning, the broker has reiterated its buy rating on the sports betting company’s shares with a trimmed price target of $9.97. Goldman continues to believe that PointsBet is “on track for transformational year ahead.”

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

More reading

• Here are the top 10 ASX shares today
• Why have ASX energy shares become such hot property in 2022?
• Why the CSR (ASX:CSR) share price is on this broker’s top 2022 buy list
• These 3 ASX 200 shares are topping the volume charts on Monday
• How does the Macquarie (ASX:MQG) dividend compare to the big four banks?

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. The Motley Fool Australia has recommended 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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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Four that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing informatics solutions company aiming to transform healthcare with proactive, smart, intuitive technology solutions that improve the efficiency and quality of patient care in healthcare organisations worldwide. Alcidion notes that it offers a complementary set of software products and technical services that create a unique offering in the global healthcare market.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan’s software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results. Management notes that its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Booktopia Group Ltd (ASX: BKG)

A third small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate in recent years. This has been driven by the shift to online shopping and the opening of its new distribution centre. The latter is allowing the company to capture the heightened demand and ship more books than ever. In fact, for the 12 months ending June 2021, the company sold one item approximately every 3.9 seconds and shipped approximately 8.2 million items. This averages out to be a massive 32,800 items per business day.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Its products enable organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights. Management estimates that it has a total addressable market of US$4.7 billion in just the United States market.

The post 4 small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.

More reading

• 3 exciting small cap ASX shares to watch
• Why is the Bigtincan (ASX:BTH) share price in reverse today?
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking
• Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season
• Whispir (ASX:WSP) share price wobbles as cash receipts grow 125% in Q2

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 Alcidion Group Ltd, BIGTINCAN FPO, and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, and Whispir 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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Today, the S&P/ASX 200 Index (ASX: XJO) was unable to reclaim lost ground throughout the day. At the end of the session, the benchmark index was 0.24% lower at 6,971.6 points.

The overall market ended lower despite the majority of companies in the top 200 moving higher today. Consumer staples and financials dragged on the index into the red. In fact, all four of the major banks posted negative moves for the session.

On the other hand, tech shares managed to dodge the negative sentiment on Monday. The sector as a whole conjured up a 3.7% rally.

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, Telix Pharmaceuticals Ltd (ASX: TLX) was the biggest gainer today. Shares in the biotechnology company surged 8.81% as Telix announced the despatch of its share purchase program booklet to raise $25 million. Find out more about Telix Pharmaceuticals here.

The next biggest gaining ASX share today was Genesis Energy Ltd (ASX: GNE). The electricity producer rallied 8.20% despite there being no news from the company today. Uncover the latest Genesis Energy details here.

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

ASX-listed company	Share price	Price change
Telix Pharmaceuticals Ltd (ASX: TLX)	$6.79	8.81%
Genesis Energy Ltd (ASX: GNE)	$2.77	8.20%
ARB Corporation Ltd (ASX: ARB)	$46.15	7.90%
Zip Co Ltd (ASX: Z1P)	$3.16	7.48%
Wisetech Global Ltd (ASX: WTC)	$45.30	4.89%
John Lyng Group Ltd (ASX: JLG)	$7.71	4.61%
AVZ Minerals Ltd (ASX: AVZ)	$0.70	4.48%
Novonix Ltd (ASX: NVX)	$7.50	4.02%
Meridian Energy Ltd (ASX: MEZ)	$4.18	3.98%
Dominos Pizza Enterprises Ltd (ASX: DMP)	$103.40	3.90%

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

• Why have ASX energy shares become such hot property in 2022?
• Why the CSR (ASX:CSR) share price is on this broker’s top 2022 buy list
• These 3 ASX 200 shares are topping the volume charts on Monday
• How does the Macquarie (ASX:MQG) dividend compare to the big four banks?
• Could Australian Ethical (ASX:AEF) be about to launch a new ASX ETF?

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 WiseTech Global and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended ARB Corporation Limited and Dominos Pizza Enterprises 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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Key points

• The Novonix share price moves higher on quarterly activities report
• Production capacity increases with additional furnaces commissioned
• KORE Power partnership puts Novonix in the driver’s seat for exclusive supply

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The Novonix Ltd (ASX: NVX) share price inched ahead on Monday following the release of its quarterly report.

At the close, shares in the battery materials technology company finished 4% higher at $7.34. Despite the rally, Novonix shares are still 40% below their 52-week high.

Novonix share price rallies on jampacked quarter

It was a busy quarter for Novonix and its shareholders. Here are several notable corporate activities highlighted in the company’s quarterly report:

• Phillips 66‘s (NYSE: PSX) nominates Zhanna Gologryga as new Novonix board member
• New Novonix Riverside synthetic graphite facility officially opened in Chattanooga, Tennessee
• Added to the S&P/ASX 200 Index (ASX: XJO)
• Received CAD$1.675 million in funding from Next Generation Manufacturing Canada
• Retaining A$259.9 million in cash at the end of the quarter

What else happened during the quarter?

The December ending quarter involved Novonix progressing with its milestones for manufacturing anode materials. A major development for the company during this time was the official opening of a facility spanning more than 400,000 square feet in the United States, sending the Novonix share price higher.

Speaking at the Riverside facility opening, US Secretary of Energy Jennifer M. Granholm said:

The local support for this means not just something for Chattanooga, and it’s not just for Tennessee, but it really is for the country. The fact that we’re at a facility that once employed about 230 people and that now is going to employ 300 people, making the future of our transportation energy system secure, is such a great day for America.

In addition, the company’s commissioning of new equipment to meet production targets continued on track. On this note, a generation 2 furnace system is fully operational with a second system to be added in the third quarter.

Novonix noted it plans to defer deliveries to Samsung SDI and Sanyo. However, the company remains engaged with both partners and will provide material specifications based on its generation 3 furnace technology.

Furthermore, the cathode segment of the business reportedly experienced strong revenue growth. During this period, ASX-listed Novonix expanded its hardware sales and research and development offerings. The battery technology solutions team is now 56 people strong, compared to 27 at the beginning of 2021.

For the three months ended 31 December 2021, Novonix recorded A$2.22 million in receipts from customers. However, investors appear to be looking past current financial metrics as the company ramps up its battery material production capabilities.

What’s next?

Lately, ASX-listed Novonix has been touting its proposed agreement with leading US-based battery developer KORE Power. As announced last week, Novonix is slated to be the exclusive supplier of graphite anode material to KORE’s planned battery production facility.

From here, Novonix will continue to scale its anode production capabilities. At this stage, the company plans to complete the installation of its first two generation 3 furnace systems in the third quarter. Ultimately, continuing to increase capacity to meet its 30,000 tonnes per annum production target by 2025.

Novonix share price snapshot

The Novonix share price is up more than 170% in the last year. In other words, it has provided a far superior return to the S&P/ASX 200 Index (ASX: XJO).

However, in the past month, the excitement has begun to subside with shares falling by nearly 30%. Despite the knock, the company boasts a market capitalisation of $3.57 billion based on the current Novonix share price.

The post Novonix (ASX:NVX) share price lifts 4% on quarter of expansion appeared first on The Motley Fool Australia.

More reading

• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
• Novonix (ASX:NVX) share price drops 6% amid agreement with US battery cell developer
• Novonix (ASX:NVX) share price down despite Phillips 66 technology development agreement
• The Novonix (ASX:NVX) share price just tanked 10%. What’s going on?

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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Key points

• Green shorting might soon hit the mainstream, but market watchers are scratching their heads in wonder of what it means
• The method can be a branch of both ESG investing and shorting. It sees short sellers target a company based on its environmental credentials
• Today, an Australian investment management firm launched a fund featuring green shorting, and these ASX 200 shares have made its books

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This ESG investment style is becoming increasingly mainstream and some S&P/ASX 200 Index (ASX: XJO) shares are being targeted.

Green shorting is a method of short selling shares based on environmental credentials. It can be argued to help push for climate action and hedge against risks. And one fund manager believes the ASX is one of the best places on earth to engage in green shorting.

Here are the ASX 200 shares that are reportedly being targeted by green shorters.

But first, what is green shorting?

Green shorting is a form of short selling. Short selling is a method whereby a ‘short seller’ will borrow shares from another investor.

The short seller will then sell the borrowed shares on market and buy them back prior to returning them.

They will pocket any fall in value the borrowed stock might experience in the meantime as profit.

Green shorting is when an investor shorts a company based – mainly – on their climate credentials.

As AQR’s Cliff Asness explains, shorting companies because of their climate policies can put pressure on them to ‘clean up’ their emissions.

It could also be seen to help protect short sellers from some climate-related risks.

Finally, green shorting can give short sellers power over carbon intensive companies as voting shareholders.

Which ASX 200 shares are being green shorted?

Plato Investment Management announced the launch of its Global Net Zero Hedge Fund this afternoon. The fund is designed to outperform broader markets while being exposed only to net zero investments.

It also engages in green shorting.

Plato’s managing director Don Hamson and portfolio manager David Allen told The Age and the Sydney Morning Herald the newly unyielded fund is taking part in green shorting. It’s short selling shares in ASX 200 companies with net zero action plans that it thinks might prove difficult to pull off.

The publications quoted Hamson as saying:

We short stocks that are higher carbon with poor return outlook and long-stocks with low carbon on average with good return averages.

Meanwhile, Allen told the publications that the ASX, with its many carbon-intensive sectors, could be a beacon for green shorting:

The ASX is unfortunately one of the worst developed markets in the world. It’s not quite as bad as emerging markets, but that’s perhaps to be expected.

The fundies said the ASX 200 companies being green shorted include AGL Energy Limited (ASX: AGL) and Qantas Airways Limited (ASX: QAN).

The fund reportedly believes AGL’s reliance on coal-fired power and Qantas’ plan to decarbonise using not-yet-existent technologies will see them struggling to reach net-zero.

At Qantas’ 2021 annual general meeting, its chair Richard Goyder stated that the airline planned to reach net zero by 2050 using methods including biofuels, offsetting emissions, and embracing low-emissions technology.

AGL has previously stated its net zero by 2050 strategy will encompass offering customers carbon neutral energy, investing in low emissions energy, and transitioning its portfolio. It will also be helped along by its planned demerger.

The post What is green shorting and which ASX 200 shares are being targeted? appeared first on The Motley Fool Australia.

More reading

• Why have ASX energy shares become such hot property in 2022?
• Why is the Qantas (ASX:QAN) share price gaining altitude today?
• Is Qantas (ASX:QAN) poised to smash its rivals once travel recovers?
• Top brokers name 3 ASX shares to sell next week
• Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?

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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Key points

• The ASX 200 has had a tough start to the year
• But energy shares have exploded higher over Janaury thus far
• Is it all about commodity prices, or is inflation helping too?

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As most investors would be aware of by now, 2022 has not turned out to be a great year for ASX shares thus far. Since the start of the year, the S&P/ASX 200 Index (ASX: XJO) has lost a nasty 8.15% or so of its value and even descended into ‘correction’ territory (down 10% or more from the most recent high) at one point.

As you might expect, this downturn has seen many ASX 200 shares lose a good chunk of their share prices. But one ASX sector has been comprehensively defying this broader market gloom. That is ASX energy shares.

Over 2022 so far, the S&P/ASX 200 Energy Index (ASX: XEJ) has risen a healthy 3.85%. That’s an outperformance of almost 12% over the broader ASX 200.

Digging deeper, we see that energy shares have indeed been on a roll. Take Santos Ltd (ASX: STO). Its shares are up 13% year to date in 2022 so far. Or Woodside Petroleum Limited (ASX: WPL), up a very pleasing 14%. Beach Energy Ltd (ASX: BPT) has enjoyed a 17% gain. Even AGL Energy Limited (ASX: AGL) shares have smashed the market, rising by more than 15% since the start of the year.

Most of these shares were very poor performers over 2021. For example, Woodside lost 3.6% over the year that was, while Santos managed a very small gain of 0.64%. AGL took the cake with its 48.6% slide.

So how could the tables have turned so decisively?

Why are investors piling into ASX energy shares?

Well, this trend might have a few underlying catalysts.

The first is the most obvious: energy prices. 2022 has seen a sharp rise in many commodity prices, but it’s oil and coal that have arguably turned the most heads. According to Bloomberg, the price of Brent crude oil has risen from just under US$78 a barrel to just over US$91 a barrel over the past month alone. That’s roughly an 8-year high. We’ve seen similar jumps in coal pricing too.

So obviously higher energy prices are a boon to companies that extract and sell these commodities.

But there could also be some inflation hedging going on. Inflation has become a hot topic in 2022 as red hot inflation numbers come out of both the US and Australian economies. My Fool colleague Zach recently discussed the views of economists at Westpac Banking Corp (ASX: WBC), who are pencilling in five rate hikes by the RBA from 2022 through until 2024 due to “hot-running inflation”.

Since commodities (particularly energy) are essential economic inputs, many investors believe that they are essentially ‘inflation-proof’. Some investors extend this reputation to the companies that extract and sell them too.

So perhaps a desire amongst some investors to protect their share portfolios against inflation by buying energy shares is also helping this ASX sector to enjoy such healthy gains. Whatever the reason for ASX energy shares successes in 2022 so far, it’s certainly a dramatic turnaround from the malaise investors endured last year. It will be interesting to watch this space over the rest of the year.

The post Why have ASX energy shares become such hot property in 2022? appeared first on The Motley Fool Australia.

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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 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.

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