The National Australia Bank Ltd. (ASX: NAB) share price has surged this month. It has gained 6.8% despite no price-sensitive news having been released by the bank.

However, Australia’s second largest bank hasn’t been sitting on its hands. Let’s take a look at what it has been up to lately.

At the time of writing, NAB’s stock is trading at $29.18 apiece.

What might’ve boosted the NAB share price this month?

The major news moving the NAB share price this month came from the bank’s annual general meeting on 17 December.

It saw the bank’s chair, Philip Chronican announcing some notable environmental, social, and governance (ESG) changes.

These changes were made after NAB’s 2018 self-assessment into governance, accountability, and culture, following the Financial Services Royal Commission.

One of the changes will see 12,000 NAB bankers placed on fixed pay to reduce their need to ‘sell’ to customers.

That’s not the only time NAB’s employee’s wages have hit headlines this month.

The Finance Sector Union released a damning report in early December. It claimed 87% of Group 3 NAB employees surveyed by the union reported experiencing stress and anxiety stemming from excessive working hours.

And It’s not just alleged happenings at the bank’s workplaces that have put it in the spotlight recently.

All eyes were on the share price of NAB, and those of its S&P/ASX 200 Index (ASX: XJO) bank peers, after new requirements were put forward by the Australian Prudential Regulation Authority (APRA) earlier this month.

While news the entity could be tightening its strings on financial institutions might have initially worried some investors, the NAB share price ultimately bounced 0.8% following APRA’s release on 2 December.

Finally, the bank recently made news by being the latest ASX 200 bank to increase its fixed interest rates.

However, its stock’s future could be looking bright.

As The Motley Fool Australia recently reported, Bell Potter believes the NAB share price is in the buy zone. The broker has a price target of $32 on the bank’s shares.  

The post Why is the NAB (ASX:NAB) share price having such a merry December? appeared first on The Motley Fool Australia.

More reading

• Bell Potter names 2 ASX 200 blue chip shares to buy in 2022
• NAB (ASX:NAB) share price struggles amid second rate hike for December
• Drinking, banking, and EVs: 3 value ASX shares I’d buy right now
• Broker says NAB (ASX:NAB) share price offers 12% upside plus dividends
• 5 things to watch on the ASX 200 on Monday

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.

from The Motley Fool Australia https://ift.tt/32yJSzV

The Adairs Ltd (ASX: ADH) share price is pushing higher on Wednesday morning with the rest of the market.

At the time of writing, the furniture and homeware retailer’s shares are up 1.5% to $3.93.

This means the Adairs share price is now up 15% in 2021.

Is it too late to invest?

The good news for investors is that one leading broker believes the Adairs share price can still rise materially from here.

According to a recent note out of Morgans, its analysts have put an add rating and $4.80 price target on the company’s shares. Based on the current Adairs share price, this suggests that it could still rise by a further 22% over the next 12 months.

But it gets better. Morgans also expects the company to pay a fully franked 23 cents per share dividend in FY 2022. This represents a generous 5.8% dividend yield, which brings the total return on offer here to almost 28%.

Why is Morgans so bullish?

Morgans notes that Adairs has agreed to acquire Focus on Furniture for $80 million, which it feels is a fair price.

The broker commented: “We think ADH has got the business for a decent price and, while we concede it increases the group’s exposure both to the housing market and bricks and mortar retail (neither of which are terribly fashionable right now), we believe it will prove complementary to the core business and may offer enhanced opportunities for network expansion.”

And while the broker acknowledges that the acquisition hasn’t helped dispel the view that Adairs could struggle for organic growth post-COVID, it doesn’t believe this is the case. In fact, Morgans is forecasting strong earnings growth through to FY 2024.

Its analysts explained: “It seems to us that the market sees ADH as a COVID beneficiary that is unlikely to deliver much in the way of organic growth over the next few years. Buying Focus perhaps hasn’t done anything to dispel this notion. But we think that’s unfair. Our estimates are for an EPS CAGR of 21% between FY20 and FY24F. The acquisition of Mocka and Focus play a large part in driving this, but even organically, a combination of a very strong loyalty programme, GLA growth and cost efficiencies underpin a growth story that we think is going under the radar.”

The post Here’s an under the radar ASX growth share with 22% upside appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 high yield ASX dividend shares to buy
• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?
• 2 great ASX dividend shares rated as buys for 2022: experts
• 2 buy-rated ASX dividend shares with strong yields
• Why is the Adairs (ASX:ADH) share price surging 5% higher today?

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.

from The Motley Fool Australia https://ift.tt/32NwbwU

The Telstra Corporation Ltd (ASX: TLS) share price is having a positive December 2021 – it’s currently up around 2%.

That adds to what has actually be a market-beating year for Telstra shares.

The Telstra share price has gone up 38% this year, which compares to the S&P/ASX 200 Index (ASX: XJO) return of 12% this year.

What has been going in December 2021?

The telecommunications giant hasn’t announced much during December 2021. It has continued with its share buy-back, which is a way to return capital to shareholders and improve the per-share statistics such as earnings per share (EPS).

However, there was one market sensitive announcement that was released this month.

Telstra said that it had secured the maximum possible low band spectrum to maintain its “leading” mobile network.

Earlier this month, the telco said that it had invested $616 million in the Australian Communications and Media Authority’s 850/900 MHz band auction to secure 2x10MHz – this is the maximum Telstra could bid for under the competition limits set by the government.

Telstra now has more spectrum than any other carrier, which it said was important given the larger customer base and it will help it provide the best mobile coverage and service.

This spectrum is particularly important for its 5G rollout and it will help provide better coverage indoors and other difficult to reach places in metro locations.

Over the seven years to the end of FY22, it will have invested $11 billion in its mobile network nationally, with $4 billion invested in the mobile network. It’s aiming to provide 5G coverage to 95% of the population by 2025.

What do analysts think of the Telstra share price?

There are quite a few brokers that like Telstra shares at the moment. A recent note from Ord Minnett re-iterated its buy rating on the telco.

Ord Minnett’s price target on Telstra is $4.60, which is around 10% higher than where it is today.

The broker notes that the telco is getting stronger in non-metro locations with its ongoing investment.

Analysts are also positive on the Digicel Pacific acquisition and how it is structured. It adds to, and diversifies, the telco’s earnings.

Three months ago, Telstra revealed its T25 strategy which involves more network coverage, profit growth and margin growth, a goal of growing the dividend over time and a further reduction in costs. It’s looking to reduce net fixed costs by a further $500 million between FY23 to FY25.

At the current Telstra share price, Ord Minnett thinks that it’s valued at 24x FY23’s estimated earnings.

The post December is shaping up to be pretty good for the Telstra (ASX:TLS) share price . Here’s why appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares named as buys
• 5 things to watch on the ASX 200 on Wednesday
• 3 excellent ASX 200 blue chip shares to buy in 2022
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• These were the worst performing ASX 200 shares last week

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. 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/3sApE3o

Those lucky enough to have Novonix Ltd (ASX: NVX) shares since the start of the year would have had a broad smile on their face eating their Christmas turkey.

The stock price for the battery materials company has rocketed 594% since the fireworks went off at the start of January.

So now the dilemma is what to do with a stellar performer as we head into the new year.

If you have it, do you hold onto it or take the profits? If you don’t have it, is it too late to buy in or has the ship sailed?

The team at Marcus Today had some thoughts.

No profit, not much revenue (yet)

Firstly, it must be noted that Novonix is a polarising stock.

The company is a long way from turning a profit, and doesn’t yet make a huge amount of revenue — not much more than $5 million — considering its valuation.

“A profit isn’t expected to be achieved for a few years so it will be incredibly announcement driven,” read the memo from Marcus Today.

“Deals with EV [electric vehicle] and tech companies to shore up supply chains likely to drive performance but that will come in dribs and drabs.”

Massive unexplained fall in share price

Secondly, despite this year’s spectacular rise, the share price has fallen almost 28% this month. 

This worries the team at Marcus Today.

“An unexplained 34% fall [in early December] should be a bit of a red flag,” the memo stated.

“The move has taken some of the froth off the top, which is putting it back in the focus of ‘bargain hunters’. [But] unclear if it is a bargain at current levels given the eye-watering valuation at 723x revenue.”

We need to see more runs on the board

A little bit more tangible progress would be needed before the Marcus Today team would buy in.

It noted Novonix does have some heavy hitters on its board, which “looks like it has some leverage in Washington [DC]”.

“Favourable legislative outcomes from the US are another possible tailwind,” the memo read. 

“A period of share price consolidation around the 900c level, progress on its production capacity and a deal or two would make it look more appealing.”

So for now, Marcus Today would not get involved, although if you already own Novonix shares you’d want to hold onto them.

“The near-term picture doesn’t offer that much of a compelling reason to get involved,” the team stated.

“Demand for its products are expected to gain momentum but until there are more cash flows, it is hard to value. No obvious reason to sell if you have decided to hold. HOLD.”

The post Novonix (ASX:NVX) shares rocketed 600% this year. Now what? appeared first on The Motley Fool Australia.

More reading

• Will Novonix (ASX:NVX) grow into its multibillion-dollar valuation in 2022?
• 5 investment themes to watch on the ASX share market in 2022
• The Novonix share price has tumbled 25% so far in December. What’s going wrong?
• Here are the top 10 ASX shares today
• Novonix (ASX:NVX) share price shrugs off this morning’s gains to plunge 4% lower

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.

from The Motley Fool Australia https://ift.tt/3pzzpNi

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.

Nvidia (NASDAQ: NVDA) stock has had a legendary run over the past decade. Its price has risen an astounding 663%, 1,150%, and 7,940% over the last three, five, and 10 years, respectively. Started in 1993 by Jensen Huang, Nvidia began in PC graphics and changed the world when it introduced the graphics processing unit (GPU) in 1999. Huang still leads Nvidia, and the company is as impressive as ever.

With its meteoric rise over the past decade and a market cap of more than $750 billion, have investors missed the boat on benefitting from Nvidia’s growth? Let’s take a closer look and see if we can find the answer.

The many uses for GPUs

GPUs were originally designed to speed up 3D graphic processing. However, these semiconductor chips eventually found other uses, such as serving as the backbone for data centers and artificial intelligence (AI) applications, because of their incredible computing power. Nvidia competes with Advanced Micro Devices in creating the most powerful GPUs, but Nvidia runs away with the title. Just check any “best gaming PC GPU” tier list and it will be filled with different Nvidia models. 

Showcasing Nvidia’s dominance, the TOP500 project ranks the “world’s 500 most powerful computer systems.” Nvidia’s technology powers more than 70% of them and is being used in 90% of new ones being built. This industry dominance showcases how far Nvidia is in front of its competitors.

The GPU use case is only increasing. Data centers can increase their speed while utilizing less power with Nvidia’s GPU acceleration. Engineering simulations like those run using software maker ANSYS products are powered by GPUs and are being put to use in designing the next generation of products. An investment in Nvidia is a bet on technological advancement.

Nvidia agreed to purchase semiconductor and software design company ARM for $40 billion from SoftBank back in 2020, but regulators are still examining the deal for antitrust compliance. The target close date is March 2022, but Huang believes it could even be later before regulators give it the OK. This huge deal would combine ARM’s CPU processors with Nvidia’s GPUs, giving Nvidia a significant grasp on every consumer electronic item, which is why regulators are assessing the deal intensely. Should the deal go through, ARM would have access to Nvidia’s vast research and development capabilities. In the acquisition announcement, Huang said, “Our combination will create a company fabulously positioned for the age of AI.”

The applications for Nvidia are nearly unlimited, and it is working on integrating its products into many exciting fields.

Stunning growth

Nvidia put up spectacular growth numbers during its last quarter despite how large it is. Revenue was $7.1 billion, up 50%, bringing its trailing-12-month revenue to $24.3 billion. For a hardware company, its gross margin is an astounding 65%. This allows it to produce massive amounts of cash because it has more than enough to cover expenses. Nvidia converted 18% of sales into free cash flow, adding to its already large $19.3 billion cash stockpile.

Breaking down the revenue into segments shows how diversified Nvidia is.

Category	Q3 FY22	Q3 FY 21	Growth (YOY)
Gaming	$3.22 billion	$2.27 billion	46%
Data Center	$2.94 billion	$1.90 billion	55%
Professional Visualization	$577 million	$236 million	144%
Auto	$135 million	$125 million	8%
OEM & Other	$234 million	$194 million	21%

Source: Nvidia. YOY = Year over year.

The quickest growing segment — professional visualization — concentrates on applications such as engineering, media creation, and Nvidia’s omniverse. The omniverse is similar to the metaverse but for professionals. It allows visualizations of 3D workflows, like manufacturing, architecture modeling, and video game creation. Over 700 companies have evaluated this product in its open beta stage, and 70,000 individuals have already downloaded it. While it is a small segment, its growth potential is exciting.

Is it too expensive?

Buying a stock that is executing well is smart, but only if it can be bought at the right price.

NVDA data by YCharts

Nvidia’s price-to-earnings (P/E) ratio has skyrocketed along with its price, meaning most of its gains were generated by multiple expansions. This occurs when the market believes a stock should be more highly valued because of its execution or market opportunity. However, its valuation reached the 75-to-90 P/E range during mid-2020 and hasn’t fluctuated much beyond that even as the stock price rose, meaning earnings were rising to reflect the price change.

For a company with strong execution and growth prospects like Nvidia, I think today’s price is very expensive, but it’s still OK to purchase if your time horizons are set appropriately. Also, Nvidia is practically an earned monopoly. While alternatives exist, Nvidia is the best, and an upstart would take years to achieve what Nvidia has done. Nvidia’s growth prospects span many decades, so investors should at least hold the stock for five years to allow the company to execute some of its vision. The stock price has slid about 10% over the last few weeks, so it may be a great buying opportunity for this growing company. 

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

The post Is it too late to buy Nvidia stock? appeared first on The Motley Fool Australia.

More reading

• 5 unstoppable trends to invest $5,000 in for 2022

Keithen Drury owns ANSYS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Advanced Micro Devices and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ANSYS and Softbank Group. The Motley Fool Australia has recommended Nvidia. 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/3et4Q5H

The Whispir Ltd (ASX: WSP) share price has returned from the Christmas break in fine form.

At the time of writing, the communications workflow platform provider’s shares are up 8% to $2.07.

Why is the Whispir share price charging higher?

Investors have been bidding the Whispir share price higher this morning after it announced a multi-year contract with global telecommunications leader Singtel. As well as being the parent company of Optus, Singtel has a presence in Asia and Africa and reaches over 750 million mobile customers in 21 countries.

According to the release, the contract has a minimum value of SG$1.3 million (A$1.32 million) for professional services and software licence fees. In addition, transactional usage fee revenue will be generated, representing revenue upside. The contract has an initial three-year term with an optional two-year extension.

What does the contract involve?

The release explains that Whispir will replace Singtel’s enterprise-wide core notification systems, which comprise multiple third-party vendors and internal products, with a single, user-friendly platform integrated with existing applications.

The company notes that its solution enhances App Push, Email, Voice, WhatsApp and Rich Message capability to enable more impactful and personalised communication for Singtel across all stakeholders, at scale.

Whispir’s CEO, Jeromy Wells, commented: “Singtel is a globally recognised brand that has selected Whispir to unlock more value from its digital services. We believe this signals a step-change in the way businesses in the region are looking to use the Whispir platform to transform their businesses and communicate more effectively with their stakeholders.”

The company’s Vice President of Asia, Andrew Fry, added: “Singtel was attracted to Whispir because our secure, scalable, cloud-based platform meets the rigorous demands and diverse use cases that an enterprise customer, the likes of Singtel, requires.”

The post Why is the Whispir (ASX:WSP) share price shooting 8% higher? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in December 2021

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 Whispir Ltd. The Motley Fool Australia has recommended Whispir 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/3FDYmwu

The Syrah Resources Ltd (ASX: SYR) share price has returned from its trading halt and is pushing higher.

In morning trade, the graphite producer’s shares are up 2% to $1.66.

Why was the Syrah share price in a trading halt?

The Syrah share price was placed in a trading halt last week after rising as much as 35% to a multi-year high of $1.80 in response to the release of an announcement.

That announcement related to its vertically integrated Active Anode Material (AAM) production facility in Vidalia, USA, which is aiming to be the first major integrated ex-China producer of natural graphite AAM that is battery ready for electric vehicles.

According to the release, the company has executed an offtake agreement with electric vehicle giant Tesla to supply natural graphite AAM from the production facility. Tesla will offtake the majority of the proposed initial expansion of AAM production capacity at Vidalia at a fixed price for an initial term of four years. This will commence from the achievement of a commercial production rate, subject to final qualification.

Today’s update

This morning the Syrah share price is rising after it provided more colour on the agreement with Tesla.

Today’s release explains that the offtake obligation is conditional on the parties agreeing the final specifications of AAM by no later than 31 December 2022 and achieving final qualification of AAM to Tesla’s satisfaction by no later than 31 May 2025. The agreement may also be terminated if production has not started by 31 May 2024.

In addition, the company revealed that, subject to satisfaction of the above conditions, Tesla will offtake 8kt per annum of the proposed initial expansion of AAM production capacity at Vidalia. This compares to the initial planned production capacity of 10kt per annum.

Management also explained why this deal is so important to the company.

It explained: “The importance and materiality to Syrah of the agreement with Tesla is that it provides a foundation to proceed with the initial expansion of Vidalia’s production capacity, as stated in the announcement of 23 December 2021. The terms of the Agreement including volume, pricing and term will assist Syrah in finalising its investment decision in relation to Vidalia. Syrah plans to make a final investment decision for construction of this expanded facility in January 2022, subject to financing commitments.”

The Syrah share price is now up 70% in 2021.

The post Syrah (ASX:SYR) share price higher after new Tesla update appeared first on The Motley Fool Australia.

More reading

• Why Betmakers, Centuria, Neometals, and Syrah shares are storming higher
• Syrah (ASX:SYR) share price rockets 32% higher on Tesla deal

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.

from The Motley Fool Australia https://ift.tt/3z8dSyz

The S&P/ASX 200 Index (ASX: XJO) is home to a good number of quality options that could be in the buy zone right now.

Two that the team at Morgans believe are buys are listed below. Here’s why its analysts rate these ASX 200 shares highly:

QBE Insurance Group Ltd (ASX: QBE)

Morgans is positive on this insurance giant and has named it as an ASX 200 share to buy. Its analysts currently have an add rating and $13.70 price target on its shares. This compares favourably to the current QBE share price of $11.29. The broker sees a lot of value in QBE’s shares at the current level, particularly given its improving outlook.

The broker commented: “We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE’s balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.8x FY22F PE.”

Woodside Petroleum Limited (ASX: WPL)

Another ASX 200 share that Morgans thinks is in the buy zone is this energy producer. The broker has an add rating and $29.95 price target on its shares. This suggests major upside for the Woodside share price, which is currently fetching $21.80. Its analysts are very positive on its upcoming merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

Morgans explained: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP).”

“From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options,” it concluded.

The post Morgans names 2 ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• 5 things to watch on the ASX 200 on Friday
• What are experts saying to expect for ASX hydrogen shares in 2022?
• Woodside (ASX:WPL) just signed a key hydrogen export MOU. What does this mean for its shares?

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.

from The Motley Fool Australia https://ift.tt/3qptQAg

December has been a good month so far for the BHP Group Ltd (ASX: BHP) share price. It has gained 4.95% since the end of November.

The iron ore giant’s stock has likely been driven by news of its unification plan, the planned sale of its petroleum assets, and an ongoing takeover battle.

Having ended November at $39.27, the BHP share price is now $41.32.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 2.26% this month.

Let’s take a closer look at what the company’s been up to lately.

What’s driven the BHP share price in December?

The first news to move the BHP share price this month was of the company’s intent to unify its corporate structure.

After the market closed on 2 December, BHP announced that it’s proceeding with its plan to converge with its London-listed, BHP Group Plc. Its share price gained 1.3% the following day.

After the unification – which requires shareholder approval – BHP will be primarily listed on the ASX.

The company released a prospectus for its proposed unification the following week.

That’s not the only exciting happening to have driven the BHP share price lately.

The long-awaited sale of the company’s petroleum assets to Woodside Petroleum Limited (ASX: WPL) was given the green light by Australia’s competition watchdog this month.

However, December has also seen BHP release seemingly unfortunate, non-price sensitive news.

The company’s ongoing acquisition offer for Canadian nickel miner, Noront Resources was recently outbid by Wyloo Metals.

Previously, BHP put in an offer to acquire the company, bidding 81 cents (C$0.75) per Noront share.

However, Wyloo Metals – owned by the private investment vehicle of Andrew Forrest, who is also chair of Fortescue Metals Group Limited (ASX: FMG) – put forward a bid of $1.19 (C$1.10) per share.

BHP vowed not to match Wyloo Metals’ bid on 22 December.

Finally, the price of iron ore has likely helped boost the BHP share price this month.

According to data from CNBC, the commodity’s price has increased 18% since the end of November.

A dry metric tonne of the metal is currently trading for US$112.99.

The post Why is the BHP (ASX:BHP) share price having such a good run in December? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Could 2022 be a good year for the BHP (ASX:BHP) share price?
• Got money to invest for income? Here are 2 ASX dividend shares that could be buys
• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy today

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.

from The Motley Fool Australia https://ift.tt/3qwROtl

If a business saw its shares plummet in one year but its operations are still sound, is it a fair recovery bet for the new year?

To test this “it can’t get any worse” theory, at the end of each year the team at Marcus Today puts together a mini-portfolio of half-a-dozen ASX shares that saw their values plummet the previous 12 months.

Last year’s picks — AMP Ltd (ASX: AMP), Boral Limited (ASX: BLD), Challenger Ltd (ASX: CGF), Insignia Financial Ltd (ASX: IFL), Treasury Wine Estates Ltd (ASX: TWE) and Unibail-Rodamco-Westfield CDI (ASX: URW) — turned out to have a pretty good 2021.

“In this model ‘Dog Basket’, we started with equal weightings of $10,000 in each, for a total of $60,000 around October 2020,” stated the Marcus Today team.

“Current valuation is around $81,000, up approximately 34%.”

If you’re interested in making a similar recovery punt for 2022, here are this year’s Dog Basket picks:

Guess who’s back… again

AMP has, unfortunately, been a mainstay on end-of-year “worst ASX shares” lists for a while now.

The stock price has lost 35.9% for the year so far and an eye-watering 80% over the past 5 years.

And it once again makes Marcus Today‘s Dog Basket.

“Maybe the renaissance of the AMP building dominating Circular Quay is a sign that things can only get better.”

Shooting themselves in the foot

A2 Milk Company Ltd (ASX: A2M) ran into trouble last year for a similar reason to Treasury Wines — a significant loss of its Chinese consumer market.

In response, one company redirected its sales and adjusted its marketing — and the other did not.

“Unlike Treasury Wines, which has pivoted away from China and driven the premiumisation of its brands, A2 Milk has failed to pivot,” the Marcus Today team wrote. 

“Failed on many fronts. Reflection and action are the mantra from the CEO. We shall see — but definitely one for the basket.”

A2 shares have lost more than 52% for the year.

Similarly, the AGL Energy Limited (ASX: AGL) share price struck trouble due to its management’s poor judgments.

“AGL has been under considerable pressure since a past CEO picked a fight with the government over the Liddell Power Station. He clearly did not learn from the Telstra experience under Sol,” the memo from Marcus Today read.

“Never take on the government. They will win. They have more money.”

AGL has, however, proposed to split itself into two: one green business and one polluting business.

“2022 could see the company split into 2, and with the arrival of Shell into the energy retail game in Australia, maybe we will see the interest in AGL pick up. Corporate activity would certainly be easier without the fossil fuel power station exposure.”

AGL shares have also lost around 50% over 2021.

One COVID beneficiary, one COVID casualty

While many technology companies saw their stocks soar after the pandemic forced people to stay at home, one exception is Appen Ltd (ASX: APX).

The machine learning services provider truly was a COVID-19 loser, losing 58% of value this year and 73% since August 2020.

“EBITDA down 14%, revenue down 2%. It has been a COVID-19 casualty. Data annotation and collection for AI has been lumpy in revenue terms.”

Appen has big plans to expand into China, but given Australia’s political issues with that nation, it’s a long shot.

“It has a strong balance sheet (+$66m) and maybe as the world reopens in 2022 and the Metaverse becomes a reality, we could see some buyers emerge,” the Marcus Today team wrote.

“Still a stretch to get back on track.”

On the opposite side is Ansell Limited (ASX: ANN), which was definitely a COVID beneficiary with its disposable medical products.

But according to the Marcus Today team, the demand has fallen off a cliff far earlier than expected, so the company needs to rally over the remaining financial year.

“It had better be a good second half. Chip shortages and supply chain issues have been a hindrance,” stated the team.

“Earnings per share [EPS] is expected to be more weighted to 2H relative to prior years. EPS guidance of 175 to 195 US cents per share was reiterated. But [that] looks a stretch — and second half is crucial.”

Ansell shares have lost 8.5% this year.

Do you remember buy now, pay later?

The market has really cooled on buy now, pay later stocks since Afterpay Ltd (ASX: APT)’s blockbuster sale to Block Inc (NYSE: SQ) was revealed earlier this year.

Zip Co Ltd (ASX: Z1P) now seems to be the forgotten ASX share that used to be everyone’s tip.

For its investors, the 52-week high of $14.53 seems like a distant memory with Zip going into Christmas at $4.39.

The Marcus Today team reckons size really matters as the BNPL industry consolidates. And Block-Afterpay will be a huge gorilla.

“Zip may just end up in the mist. Missed could be the operative word as it fails to fire, and costs continue to weigh,” their memo stated.

“Merchants do not want a myriad of terminal possibilities for customers to dither over at the checkout.”

The post 6 awful ASX shares that could rebound in 2022 appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy
• Leading brokers name 3 ASX shares to sell
• These are the 10 most shorted ASX shares
• The stories that rocked the ASX 200 in 2021 revisited
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022

Motley Fool contributor Tony Yoo owns A2 Milk, Appen Ltd, Block, Inc., and IOOF Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Appen Ltd, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended A2 Milk, Ansell Ltd., Challenger Limited, and Treasury Wine Estates Limited. 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/3mBsl0U