The CEO of Brisbane-based Tritium has voiced her belief that electric vehicles (EVs) will soon be cheaper than internal combustion cars in the next 4 years. But ASX fans might be disappointed to learn the company producing EV charging stations isn’t listed on the ASX.

Tritium’s CEO Jane Hunter told the Australian Financial Review‘s Infrastructure Summit that the cost of EVs is largely dependent on the cost of batteries and the cost of batteries is dropping.

Additionally, according to reporting by The Australian, the Federal Government’s Future Fuels strategy – set to be released today – will herald the creation of a network of EV charging stations. In fact, it will reportedly see $250 million put towards the cause.

So, putting two and two together, Australia might see a boom in the number of new EVs hitting our streets soon. It follows we’ll also need plenty of EV charging stations.

While ASX investors won’t be buying shares in Tritium any time soon, there are a few companies working in the field that are listed – or approaching a listing – on the ASX.  

Let’s take a look at which ASX shares have exposure to EV charging stations.

ASX shares exposed to EV charging stations

Tritium isn’t expected to make a home on the ASX, but there are some stocks currently trading on the Aussie bourse with exposure to the charging station sector.

Ampol Ltd (ASX: ALD)

The fuel retailer might not be the first ASX share market watchers think of when seeking stocks affiliated with EV charging. Though, the company is getting started in the space.

Ampol has recently partnered with the Australian Renewable Energy Agency (ARENA) to build a network of EV fast-charging stations.

Under the partnership, Ampol will be equipping more than 100 of its service stations with EV charging stations.

The company is also collaborating with Tesla Inc (NASDAQ: TSLA) to install Tesla Powerwall battery systems at some of its service stations in Adelaide.

Right now, the Ampol share price is $31.69, 0.35% lower than it was at the end of yesterday’s session.

Rectifier Technologies Limited (ASX: RFT)

This ASX-listed microcap is producing and selling EV charging stations.

The company has historically worked to create power conversion products. It currently produces a number of power modules suitable for EV charging.

However, it is in the process of releasing both an EV charger and a bi-directional EV charger.

Rectifier is having a great day on the ASX on Tuesday. At the time of writing, its share price is 4.6 cents, 28% higher than its previous close.

Honourable mention: Bell Resources

While still a way off ASX listing, Bell Resources operates Bell Hub, a company focused on building EV charging stations.

Bell Hub is planning to operate a network of “ultra-fast” charging stations, available for public use alongside car washing facilities.

The parent company also houses a green energy branch – focusing on solar – and a lithium-ion battery research and development branch.

According to Bell Resources’ website, the company is planning to conduct an initial public offering (IPO) on the ASX.

The post Tritium is making news again, but do any ASX shares have exposure to EV charging stations? appeared first on The Motley Fool Australia.

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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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The James Hardie Industries Plc (ASX: JHX) share price is edging higher in early trading today. It is currently up 0.26% to $54.47, having earlier jumped to $55.27. This comes after the company released its results for the quarter ended 30 September 2021.

It was a record second quarter for the construction materials company, with a number of investment highlights to report.

Let’s get straight into it.

James Hardie share price rises on record quarterly results

Key takeouts from the quarter include:

• Global net sales increased 23% year on year to US$903.2 million, a record result;
• Adjusted net income up 29% from the year prior at US$154.9 million;
• North America fibre cement segment net sales also increased 23% to US$635.3 million;
• Europe building products sales increased to 104.5 million euros, also a 23% gain from the year prior;
• Net income guidance range raised by 2%–5% to a new spread of US$580 million to US$600 million; and
• FY22 first half ordinary dividend of US40 cents per share payable 17 December 2021.

What happened this quarter for James Hardie?

Building on positive momentum achieved earlier in the year, James Hardie came in with another strong result for the quarter.

A set of record results in net sales of US$903 million was carried through to the company’s bottom line, recognising net income growth of almost 30% to US$155 million.

Global adjusted earnings before interest and tax (EBIT) increased by 26% year on year to US$206 million. This was also a record.

From this result, operating cash flows came in at US$357.5 million, driven by the company’s LEAN manufacturing performance, alongside integrating its supply chain with customers.

The company also saw strengths across its various countries of operations. For instance, North American sales saw a record quarter with a corresponding 23% gain over Q2 FY21.

James Hardie attributes this to its “high-value product mix strategy” that resulted in a price/mix growth of more than 9% during the quarter.

Separately, net sales in its Asia Pacific fibre cement segment increased 15% to A$196.6 million, also a record result. This resulted in an adjusted EBIT margin of almost 31%.

Commenting on its sustainability initiatives, the company said environmental, social, and corporate governance (ESG) is a part of its strategy, and that it is woven into operations and its core strategy.

What is management saying?

Commenting on the quarter, James Hardie’s CEO Dr Jack Truong said:

We continue to make excellent progress on our stated global strategy. Our strong execution on this strategy is reflected in second quarter global price/mix growth of +9%, including North America price/mix growth of +9%, Europe price/mix growth of 8% and Asia Pacific price/mix growth of +4%. Our growth momentum in accelerating high value products penetration, which underpins price/mix, is the result of 1) enabling our customers to make more money by selling more James Hardie products and 2) marketing directly to the homeowners to create demand of our high value products through our customers.

What’s next for James Hardie and its share price?

The company updated its guidance for the fiscal year ending 31 March 2022. It now forecasts a net income range of US$580 million to US$600 million, up from a range of US$550–$590 million.

This guidance is subject to a number of risk factors, as alluded to by the company, including the ongoing effects of the COVID-19 pandemic.

In the past 12 months, the James Hardie share price has climbed 43%. It has also rallied 43% this year to date.

The post Record quarter: James Hardie (ASX: JHX) share price pops on 29% profit jump appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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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The iron ore price tumbled to a 17-month low, but the crash has ignited speculation that the commodity is close to bottoming.

That would be very welcomed news for ASX iron ore shares. The BHP Group Ltd (ASX: BHP) share price, Fortescue Metals Group Limited (ASX: FMG) share price and Rio Tinto Limited (ASX: RIO) share price have been under pressure in the last four months.

It’s during that period that the steel-making ingredient dived from a record high of around US$220 to around US$94 a tonne.

Why the iron ore price could rebound

But a turnaround may be in sight with some experts pointing to China’s steel output. This is on track to meet and even exceed the government’s goal of capping 2021 steel production at 2020 levels.

The September figures are the silver-lining for the embattled iron ore price. The Australian Financial Review reported that steel production that month fell to levels below those mandated by China.

This means the commodity could rebound as soon as next month, according to Australia and New Zealand Banking GrpLtd (ASX: ANZ) senior commodity strategist, Daniel Hynes.

ASX iron ore shares are steeling themselves

“China is on track to meet its target of holding this year’s steel production at 2021 levels, so steel output could start to rebound in December,” the AFR quoted Hynes as saying.

“This would flick China’s iron ore market balance from surplus to deficit in December, and provide a floor for prices.”

The Chinese government is trying to control pollution by curbing steel production in the country. This triggered the slide in the iron ore price.

When bad news can turn good

It never rains but pours. The weakness was then exacerbated by fears of a collapse in China’s housing construction market after China Evergrande Group struggled to pay creditors.

Evergrande is one of China’s largest property groups and there are signs that its rivals are facing similar financial strife.

Throw in harsh lockdowns in the Asian giant to deal with a new outbreak of COVID-19 pandemic, and you can see why the Chinese economy is struggling. This has led to speculation that the Communist Party may need to stimulate its economy.

2022 outlook for the iron ore price

Government stimulus is usually a big positive for commodity prices, including the iron ore price. If this comes to pass, Chinese stimulus may hit the market roughly the same time as the US unleashes its US$1.2 trillion infrastructure spendathon.

Meanwhile, the iron ore price has another support from the supply side of the equation. Iron ore shipments from some of the world’s largest producers have fallen short of their mark.

This includes Vale SA (NYSE: VALE) and Rio Tinto. Not so good news for these iron ore miners, but good news for the wider industry.

Suddenly, the outlook for iron ore doesn’t look half as bleak.

The post Is the iron ore price set to rebound next month? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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 National Australia Bank Ltd (ASX: NAB) share price is pushing higher on Tuesday morning.

At the time of writing, the banking giant’s shares are up over 1% to $29.46.

This means the NAB share price is now up 28% in 2021.

Why is the NAB share price pushing higher?

Investors have been bidding the NAB share price higher today after it reported a significant jump in cash earnings in FY 2021.

According to the release, for the 12 months ended 30 September, NAB delivered a 76.8% increase in cash earnings to $6,558 million. Management revealed that this reflects notable items in the prior corresponding period that weren’t repeated in FY 2021 and a solid performance across much of the business.

In respect to the latter, NAB’s Personal Banking and New Zealand Banking segments were the highlights during the year. They delivered 14.4% and 18.7% increases in cash earnings, respectively. Both were driven by lower credit impairment charges and lending volume growth.

NAB’s biggest contributor to earnings is its Business & Private Banking segment. It delivered modest cash earnings growth of 0.3% to $2,480 million in FY 2021. This reflects lower credit impairment charges, which were partly offset by higher operating expenses.

One area of the business that took a bit of the shine off the result was its Corporate & Institutional Banking segment. Due to lower Markets income and higher credit impairment charges, it reported a 14.8% decline in cash earnings in FY 2021.

Outlook

Management provided the market with some commentary on its expectations for FY 2022.

It advised that competitive pressures are expected to continue in FY 2022, impacting housing lending margins. It also advised that the impact to its net interest margin from the low interest rate environment in is expected to be broadly neutral in FY 2022, before turning positive in FY 2023.

Finally, its lower funding costs and deposit mix are expected to be a moderating tailwind.

What are brokers saying about the result?

Despite the bank’s result falling short of Goldman Sachs’ estimates, the broker has seen enough to remain positive on the NAB share price.

It commented: “NAB reported 2H21 cash earnings (company basis) from continued operations of A$3,215mn, which was up 61.2% on pcp and slightly below (-0.7%) GSe, driven by lower-than-expected revenues (Markets and Treasury) and higher operating expenses, partially offset by outperformance on BDDs. As such 2H21 PPOP missed GSe by -3.9%.”

“Given good balance sheet momentum, driving 2H21 hoh revenue (ex-Markets and Treasury) growth of 2%, coupled with management expectations of broadly flat FY22E costs (GSe +0.4% on the FY21A base) and a better than expected 2H21 performance on capital and asset quality (impaireds, past dues, watch list loans, provisions), we see today’s result as supportive of our Buy (on CL) recommendation, and NAB remains our preferred exposure to the Australian banks,” Goldman concluded.

Goldman currently has a conviction buy rating and $30.84 target on the NAB share price.

The post NAB (ASX:NAB) share price lifts amid bumper $6.56 billion cash profit appeared first on The Motley Fool Australia.

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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. 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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While the Afterpay Ltd (ASX: APT) share price has fallen 5% in the past 5 days, its likely acquirer has been touting the magnitude of its potential.

As the US payment giant Square Inc (NYSE: SQ) moves closer to gobbling up Australia’s largest buy now, pay later (BNPL) provider, Square CEO Jack Dorsey has shared what the implementation could mean for the company.

Match made in heaven?

On Thursday last week, in an ASX announcement, Afterpay revealed a step forward in the company’s move to be acquired by Square. The release stated that Square shareholders had approved the issuing of Square Class A common stock to Afterpay shareholders — marking a major milestone in the deal process.

Since then, shares in Afterpay have been dragged lower in tandem with the value of Square. This followed the release of the US company’s third-quarter results the very next day. Unfortunately for shareholders, its revenue had missed analyst expectations.

However, the same day, Dorsey spoke on the impact the ASX-listed Afterpay could have on Square once the two companies are integrated. Namely, the additional edge gained from having access to both sellers and customers.

Here’s some of what Dorsey said:

We do believe that having both systems is our ultimate superpower and differentiator – having both ends of the counter, two different audiences, of sellers and individuals is really important.

It is the secret behind Afterpay as well, and probably represents our largest potential.

These comments come at a time when competition in the payments space is possibly fiercer than ever. For example, Paypal Holdings Inc (NASDAQ: PYPL) is not giving up the payments market share without a fight. Today, the US$270 billion company announced a partnership with Amazon.com Inc (NASDAQ: AMZN) to integrate Venmo at the checkout.

Meanwhile, on Aussie shores, the Commonwealth Bank of Australia (ASX: CBA) is upping its efforts in BNPL through its StepPay product. Australia’s largest bank announced it would pay merchants (rather than charge them) a 4% commission for sales using StepPay during the Christmas period.

Money by Afterpay, another ASX bank attack vector?

As the grey area between payment/tech giants and traditional banks widens, Aussie banks have begun seeing Square as a competitor. In Afterpay’s case, it is reportedly working on adding mortgages and other loans by partnering with Westpac Banking Corp (ASX: WBC).

While some banks are going on the offence as Afterpay expands its Money by Afterpay product, others are partnering with it.

Nonetheless, Afterpay’s expansion into more financial products could offer Square a way of grabbing market share in personal finance.

The post Afterpay (ASX:APT) ‘represents our largest potential’: Jack Dorsey appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon and PayPal Holdings. 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.

What happened

Shares of Coinbase Global (NASDAQ: COIN) gained 40.4% in October, according to data from S&P Global Market Intelligence. The cryptocurrency broker followed along as many of its most popular digital tokens posted massive gains. For example, market-leading cryptocurrency Bitcoin (CRYPTO: BTC) gained 48.7% last month while blockchain-based smart contracts platform Ethereum (CRYPTO: ETH) posted a 51.4% return.

So what

Both Ethereum and Bitcoin are setting new all-time highs again after a dip in the crypto market that stretched from May to September. Cryptocurrencies are still extremely volatile but the market has taken many steps toward a calmer and more predictable future.

The market-boosting improvements include Bitcoin becoming an official currency of El Salvador, regulators in the U.S. and elsewhere considering how to build a regulatory framework around digital assets, and the launch of the first Bitcoin-centric exchange-traded fund. The ProShares Bitcoin Strategy ETF (NYSEMKT: BITO) doesn’t own Bitcoin tokens directly, but holds positions in Bitcoin futures. The ETF has gained 7.7% since launching on Oct. 22.

As for Ethereum, that digital asset performed an important technical update to its blockchain network. An Ethereum futures ETF is coming soon and surging interest in Ethereum-based decentralized finance systems is driving a surge in real-world Ether transactions.

All of this is good news for Coinbase. The company charges a fee for every cryptocurrency transaction it manages, so rising trading volume is great news for the company’s top and bottom lines. Coinbase’s overall trading volume was above average in October and trending even higher in November, according to data from CoinGecko.

Now what

Coinbase’s future value depends on wider adoption of cryptocurrencies in general and rising crypto trading activity in the American market in particular. The company is set to report earnings on Tuesday evening, covering the third-quarter period that ended on Oct. 31.

If you’re interested in the cryptocurrency market but not ready to take direct positions in any of the individual digital coins, Coinbase can provide a safer middle ground. This stock doesn’t depend on the fortunes of any single cryptocurrency, but on the health of the crypto market as a whole. If some better idea comes along to overthrow Bitcoin or Ethereum, Coinbase will happily pocket the trading fees as investors move over to the hot new thing. The greatest risk for Coinbase shareholders — and I concede that it is a substantial risk — is that the company would suffer if the whole revolution of cryptocurrency and blockchain assets goes off the rails and never goes truly mainstream.

The gains of October balanced out Coinbase’s plunging share prices in the spring, and the stock now sees single-digit positive percentages for the first time since the initial public offering in April. Tuesday’s report is likely to spark a large price move in the stock, though the direction of that move remains to be seen. Cautious investors may want to wait for a price dip before taking a position in this richly valued stock, while growth-minded traders could argue that Coinbase might never be this affordable again. 

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

The post How the Coinbase share price rocketed 40% last month appeared first on The Motley Fool Australia.

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Anders Bylund owns shares of Bitcoin and Ethereum. 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.

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There are a certain group of ASX shares out there that are producing a mix of both dividends and growth.

Some businesses are known for paying a high dividend yield to investors, whilst others are growing quickly and re-investing a lot of that profit back into more growth.

But there could be some ASX shares that provide a useful mix of both dividends and capital growth.

Brickworks Limited (ASX: BKW)

Brickworks is well known for manufacturing and supplying a numbers of building products in Australia and the US. In Australia it’s the market leader in bricks and has strong market positions in a number of other areas including roofing, masonry and precast.

In the US, the business has been expanding with acquisitions and it’s making them more efficient and profitable. It’s the market leader of bricks in the north east of the country. Brickworks recently acquired a brick distributor to increase its scale.

The business has two asset groups that are delivering fairly consistent asset value growth as well as cashflow growth which is funding the rising dividend.

Brickworks owns a substantial amount of shares of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which is a diversified investment conglomerate and Brickworks is benefiting from the long-term returns and growing dividend. Soul Patts is planning on becoming more diversified with its investments after the recent acquisition of Milton, giving it more financial firepower to go for different assets.

The other area of growth for the ASX share, that Brickworks has much more control over, is the industrial property trust joint venture with Goodman Group (ASX: GMG).

At the latest disclosure, the property trust had $2.7 billion of gross assets, with $2 billion being leased assets and another $).7 billion of development land. After including debt, Brickworks’ 50% share of net assets was valued at $911 million, up from $727 million in FY20.

These industrial properties are experiencing structural tailwinds, driven by industry trends towards online shopping. The trust also has a long pipeline of further development, with pre-committed developments to be completed over the next two years which is expected to drive an increase in leased asset value and rent of around 60%.

At the current Brickworks share price, it has a trailing grossed-up dividend yield of 3.7%. It hasn’t cut the dividend for over 40 years.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX share with a diversified portfolio of retail brands and investments. Its brands include Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti. Meanwhile, it has sizeable investments in Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The FY21 result demonstrated the overall resilience of the company’s brands to achieve growth.

Total retail sales increased 18.7% to $1.44 billion. Peter Alexander sales grew 34.7% to $388.2 million and the apparel brands saw sales growth of 25.3% to $841.6 million.

Online sales continue to grow faster than the overall business, at high profit margins. Online sales grew 36.4% to $300.7 million.

Whilst total sales grew 18.7%, the ASX share’s gross profit grew 25.1% year on year, underlying earnings before interest and tax (EBIT) increased 88% to $351.9 million and statutory profit rose 97.3%. This demonstrated operating leverage for the business.

Smiggle is seeing a rebound as schools reopen, it’s seeing “strong” like for like growth where restrictions are eased.

In FY22, whilst lockdowns in Australia have hurt sales in the short-term, global online sales were up 44.6% in the first seven weeks. Its online business continues to see an EBIT profit margin that’s “significantly higher” than the store network.

In FY21, the board decided to grow the full year dividend by 14.3% to $0.80 per share. At the current Premier Investments share price, it has a grossed-up dividend yield of 3.5%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Premier Investments 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 Woolworths Group Ltd (ASX: WOW) share price could be a winner as a result of COVID-19. The company’s flourishing online shopping service has been a massive hit with consumers opting for convenience. However, a pricing war with Coles Group Ltd (ASX: COL) looks to intensify as the supermarket giant looks to win market share.

At Monday’s closing bell, Woolworths shares ended the day down 0.33% to $39.50.

Woolworths cuts delivery costs

In a bid to entice consumers in the online shopping scene, Woolworths revealed that it is reducing the delivery fees.

For all orders $50 and over, customers who are signed up to the company’s subscription service will receive free deliveries. Normally, this fee charges up to $15 per delivery depending on the shorter same-day or next-day delivery options.

Woolworths is seeking to retain customers but also bring new shoppers by offering a free 30-day trial of Delivery Unlimited. The service costs $119 for an annual subscription, which is 34% lower than previously advertised. Customers pay month-to-month and can cancel anytime.

In addition, using Delivery Unlimited will collect double everyday reward points with every online shop. These points can be redeemed for credit to use on Woolworths products or converted into Qantas frequent flyer points.

On the other hand, Coles offers a free delivery service on purchases of $250 or more. Although, between Tuesday and Thursday, delivery costs can be as little as $2 depending on spend amount.

Both Woolworths and Coles are fighting for market share as the demand of ‘click and collect’ means significant e-commerce sales. Shopping habits have completely changed as a result of the pandemic.

Woolworths share price summary

It’s been a fantastic year for Woolworths shareholders, with the company’s shares accelerating to new all-time highs. Over the past 12 months, Woolworths shares have pushed 15% higher, mostly coming from year-to-date gains, up 14%.

On valuation grounds, Woolworths commands a market capitalisation of roughly $47.87 billion, with approximately 1.2 billion shares on its books.

The post Can Woolworths (ASX:WOW) win its delivery battle against Coles? 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 owns shares of and has recommended COLESGROUP DEF SET. 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 PointsBet Holdings Ltd (ASX: PBH) share price will be on watch today.

This follows the release of a very positive announcement that could put a rocket under its shares.

Why could the PointsBet share price shoot higher?

This morning PointsBet released an announcement relating to a public meeting held on Monday by the New York State Gaming Commission (NYSGC).

This meeting was to decide which sports betting companies would be recommended for a licence to operate mobile sports wagering in New York when laws change.

According to the release, the NYSGC has recommended PointsBet as one of the nine companies to be awarded a Platform Provider licence to operate mobile sports wagering in the state. Other companies being recommended are FanDuel, BallyBet, BetMGM, DraftKings, Rush Street Interactive, Caesars, WynnBet, and Resorts World.

What’s next?

Official approval procedures are still to follow, with the recommended operators to undertake independent system testing ahead of official launch. This is expected in early 2022.

PointsBet’s US CEO, Johnny Aitken, was pleased with the news, noting that it is an “exciting moment” for the company.

He commented: “Having the potential to secure market access to New York state – expected to be one of the largest and most important markets in the United States – represents another major milestone for our company, our brand, and our technology.”

“We are thankful to the Gaming Commission for this recommendation and believe it speaks volumes to PointsBet’s reputation and ability to deliver an unrivaled, world-class experience. We eagerly await the official opportunity to leverage our exclusive sports betting partnership with NBC Sports and introduce the nation’s premier sports betting product to the countless passionate, sports-loving New Yorkers,” he added.

The PointsBet share price is down 28% in 2021, so this news will no doubt be welcomed by shareholders.

The post PointsBet (ASX:PBH) share price on watch after New York update appeared first on The Motley Fool Australia.

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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 shares of 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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This year kicked off with a bang after a bunch of Americans conspired to plough their money simultaneously into a failing bricks-and-mortar retailer.

Shares for GameStop Corp (NYSE: GME) then surged from US$20 to as high as US$483 in just a couple of weeks.

And with that, the term “meme stock” entered the mainstream lexicon.

There’s been a massive influx of new and young stock investors since the COVID-19 pandemic shut everyone in at home last year. 

Add to that the share market’s spectacular recovery from the March 2020 crash and it’s not entirely a surprise that there is a crowd always seeking to jump on the next moonshot stock.

But, according to one expert, it’s now time to take a cold shower.

Watch out, it’s 2017 all over again

Forager Funds chief investment officer Steve Johnson said that his funds, including the Forager Australian Shares Fund (ASX: FOR), had a fantastic time enjoying the fervour for ASX shares in recent times.

“For us, being agile, open-minded and willing to be contrarian was more important than ever last year. It allowed us to invest in a collection of unloved businesses at once-in-a-lifetime prices,” he wrote in Money magazine.

“And it paid off. The 2021 financial year was the best on record for Forager across both our Australian Shares Fund and International Shares Fund.”

But ASX shares were now entering a different era, and the familiar indicators have Johnson worried.

“Right now, interest rates remain at record lows, stock markets are trading at all-time highs, people are inventing new metrics like revenue multiples to justify absurd prices for growth stocks, inflation is becoming a serious concern and COVID resurgences are weighing on the economic recovery,” he said.

“More importantly, there are very few pockets of undue pessimism.”

The conditions remind Johnson of 2017 when his funds tried to keep looking for hidden gems — then ate humble pie for 2 years.

So faced with the same situation now, he calls on investors to get serious.

“It is time, once again, to be thinking about the benefits of safe and boring,” Johnson said. 

“Once again, like 2017, investor obsession with hyper-growth and high returns has left some of these stocks neglected.”

Your ASX shares don’t always have to stand out

According to Johnson, his team learned an important lesson from the difficult 2018-2019 period.

“You don’t always need to be doing better than the crowd,” he said.

“There is a time and place for contrarian bets. And there’s a time for playing it safe.”

Counterintuitively, taking a simple investment strategy is not actually that easy after a period of finding shooting stars.

“To turn to our loyal client base and say ‘you know how we look for opportunity in unlikely places? Well, we just bought Downer EDI Limited (ASX: DOW)’,” said Johnson.

“That doesn’t sit well with how we view ourselves or what our clients have come to expect. And that’s what makes it so hard.”

The post Investor warning: Time for sensible and ‘boring’ ASX shares appeared first on The Motley Fool Australia.

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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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