The Cettire Ltd (ASX: CTT) share price has jumped 14% today. It’s actually up 66% over the last month.

What is Cettire?

After a very strong run – up 189% in the last six months alone – it now has a market capitalisation of $1.2 billion according to the ASX.

If you’ve never heard of Cettire, it is a global online retailer of a large selection of personal luxury goods through its website, Cettire.com. It sells over 160,000 products of clothing, shoes, bags and accessories and 1,300 luxury brands.

Major backers for the ASX retail share

According to reporting by the Australian Financial Review, a number of the richest Australians have invested some money into Cettire shares.

The AFR listed Tony Gandel, Alex Waislitz, Colin Bell and Penelope Seidler as some of its powerful backers.

There are also some institutional investors that are backing Cettire as well including Cat Rock Capital Management, Regal Funds Management and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts apparently owns just over 1.44% of the business.

Fast growth, beats prospectus guidance

The market also likes to consider guidance and performance when considering valuation, which may be a factor for the Cettire share price.

In the FY21 result, the luxury ASX retail share said that it beat the prospectus forecasts.

Let’s run through some of those numbers.

Reported sales revenue increased 304% to $92.4 million. In constant currency terms, that was an increase of 352%. Active customers grew 285% to 114,830. Around 40% of gross revenue came from repeat customers (up from 26% in FY20).

Cettire’s reported product margin was 37% and the delivered margin was 24%. In dollar terms, the product margin rose 307% to $33.8 million and the delivered margin jumped 243% to $22 million.

The business also reported significant growth of its core profitability metrics. Operating cashflow surged 131% to $12.7 million, whilst adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $2.1 million.

Management attributed the cashflow growth to its “exceptional” sales growth, a capital light business model and attractive working capital profile.

The profitability of the business may be part of an investor’s thoughts about the Cettire share price.

Cettire developments

The business said that it launched its proprietary e-commerce storefront software in August 2021. Cettire is aiming for this to provide new capabilities to support the company’s global expansion. This is a key goal for the business.

Other initiatives include free returns for customers and expanding its total addressable market by entering the children’s wear segment.

The luxury ASX retail share has also started direct partnerships with brand owners.

Dean Mintz, the Cettire founder and CEO, said:

Whilst it is still very early in the development of our direct relationships with brand owners, this represents a natural progression of our business. We are excited by the potential of working directly with additional brand owners to complement our existing supply chain.

The post Cettire (ASX:CTT) share price leaps another 14%, up 66% in a month. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan
• These three ASX retail shares delivered double (and triple!) digit returns in 2021
• Why the Cettire (ASX:CTT) share price is slumping 5% today
• The Cettire (ASX:CTT) share price is up a whopping 500% this year

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Today, the S&P/ASX 200 Index (ASX: XJO) tumbled after a disastrous session for iron ore shares. The benchmark index sunk 0.76% lower to 7,403.7 points.

While it was a difficult day for many ASX shares today, there were still some companies that experienced a level of optimism.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, PointsBet Holdings Ltd (ASX: PBH) was the biggest gainer today. Shares in the wagering company rallied 6.43% despite no announcements. Find out more about PointsBet here.

The next biggest gaining ASX share today was Shopping Centres Australiasia Property Group (ASX: SCP). The property group’s shares climbed 3.64% to $2.85, once again, without any news or announcements. Uncover the latest Shopping Centres Australiasia details here.

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

ASX-listed company	Share price	Price change
PointsBets Holdings Ltd (ASX: PBH)	$9.77	6.43%
Shopping Centres Australiasia Property Group (ASX: SCP)	$2.85	3.64%
WiseTech Global Ltd (ASX: WTC)	$52.35	3.50%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$16.91	3.11%
Afterpay Ltd (ASX: APT)	$127.37	3.10%
Megaport Ltd (ASX: MP1)	$17.33	3.09%
Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)	$31.48	3.08%
Cleanaway Waste Management Ltd (ASX: CWY)	$2.68	2.68%
Infratil Ltd (ASX: IFT)	$7.88	2.60%
Centuria Capital Group (ASX: CNI)	$3.58	2.58%

Our top 10 ASX shares 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

• The next ASX 200 shares that could undertake a big capital return
• These 3 ASX 200 shares are flying around the markets today
• Use the sharp commodity sell-off to buy these ASX 200 mining shares
• Which ASX shares are looking to finish the week as the top movers on the ASX 300 today?
• The Soul Patts (ASX:SOL) share price is down 3% on Friday

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, MEGAPORT FPO, PINNACLE FPO, Pointsbet Holdings Ltd, and WiseTech Global. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, PINNACLE FPO, Shopping Centres Australasia Property Group, and WiseTech Global. The Motley Fool Australia has recommended MEGAPORT FPO and 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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I read a tweet, from stockbroker CommSec, just before the market opened this morning.

Here’s the text, in full:

“SPI futures are down 36pts or 0.48% ahead of the market open. The #ASX 200 is up 54pts or 0.72% so far this week”

And, while I’m used to that sort reporting, for some reason the tweet just stopped me in my tracks.

“Really?” I thought. “That’s it?”

Now, to be abundantly clear, I’m not having a dig at CommSec.

Yes, I think (most, not all) brokers have some responsibility for trying to entice us to overtrade. But that’s also their business model, so we can’t be surprised.

Commonwealth Bank of Australia (ASX: CBA) shareholders wouldn’t exactly be thrilled if CommSec tweeted:

“Yawn. Not much happening on the ASX. As usual. Nothing to see here. Go back to work.”

And yet, that’s a far, far more useful (and accurate) statement.

As I tweeted in response:

CommSec is (rightly) just sharing market data, so this isn’t directed at them.

But seriously, read that tweet and tell me why you’re paying attention to daily and/or weekly moves?

Fractions. Of. One. Percent.

Invest (regularly).

Then go do something else!

But let me flesh that out, just a little.

In four trading days, the ASX is up an average of 0.18% per day (I know I should adjust for it being a compound, rather than a simple, return, but the number would be even less, so I’m being generous).

Zero. Point. One. Eight. Percent.

And if today’s futures were accurate (spoiler alert: they often aren’t), then after 5 days, the average daily gain would be 0.048%.

For a whole week’s trading.

All of the buys and sells.

The breathless market reporting.

The millions of times Australians have refreshed their brokerage account to see what’s changed.

Seriously?

(Turns out that the market opened while I was writing this, and at the time of writing, today’s losses are 1.07%. As it turns out, the week’s result is currently negative, but the size of the move is roughly the same.)

I mean, I guess if you’re trying to day trade, you might care (and you have my sympathies).

But otherwise?

If you’re a long term investor (you should be!)?

At best, it’s irrelevant.

At worst, it’s just noise that ends up actually being a net negative because it entices you to trade when you should have just left well enough alone.

Again, remember: 0.18%.

One five-hundredth.

A complete waste of time.

Me? I’m glad you asked.

I try to find good businesses. I buy shares if the prices are attractive.

Then…

Nothing.

I just let them do their thing.

The market has nothing to tell me.

If the companies make an announcement, I’ll read it.

If the share price moves meaningfully, I’ll make sure I haven’t missed anything, and see if I’m getting an opportunity to sell for a motza or buy for a steal.

Otherwise?

Nothing.

I just let the businesses keep doing their thing.

Turns out, Woolworths Group Ltd (ASX: WOW) doesn’t care how frequently its shareholders check the share price.

Turns out, BHP Group Ltd (ASX: BHP) doesn’t make more money if you hit refresh on the share price page more often.

Turns out, the good people at CSL Limited (ASX: CSL) don’t down tools when the share price loses 1%.

I know. Who knew…

Maybe, we should take their lead?

Fool on!

The post Daily share price movements: Full of sound and fury… appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• This week’s top ASX share versus top altcoin winner revealed
• Australian Strategic Materials (ASX:ASM) share price surges 5% against tumbling resources sector
• A2 Milk (ASX:A2M) share price falls 3% to 3-month low

Motley Fool contributor Scott Phillips 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 CSL Ltd. 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Nearmap Ltd (ASX: NEA)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $3.20 price target on this aerial imagery technology and location data company’s shares. The broker feels that Nearmap’s shares are undervalued based on its growth potential. Morgan Stanley believes the company can deliver a 25% increase in annual contract value and improved customer retention in FY 2022. The broker is also pleased with Nearmap’s transition from selling images to selling insights. It expects this to result in deeper customer engagement. The Nearmap share price is fetching $1.94 on Friday.

Sealink Travel Group Ltd (ASX: SLK)

A note out of UBS reveals that its analysts have commenced coverage on this travel and transport company’s shares with a buy rating and $10.50 price target. The broker is a fan of the company’s transition from a tourism-based company to multi-modal transportation operator. It feels this has improved the quality of the business and opened up global growth opportunities. The Sealink share price is trading at $8.78 today.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgans have retained their add rating and lifted their price target on this telco giant’s shares to $4.44. According to the note, the broker was pleased with Telstra’s T25 update. It notes that the company has set itself some bold growth targets. Based on this, the broker appears to believe that this means its shares are trading at an attractive level. The Telstra share price is fetching $3.92 on Friday afternoon.

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

More reading

• These 3 ASX 200 shares are flying around the markets today
• Acquisitions for Wesfarmers and Domain, Telstra plans to grow and Myer back in profit. Scott Phillips on Nine’s Late News
• Is the Telstra (ASX:TLS) share price in the buy zone after its T25 update?
• 5 things to watch on the ASX 200 on Friday
• The Telstra (ASX:TLS) share price has a new 52-week high. Here’s why

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Telstra Corporation 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week deep in the red. At the time of writing, the benchmark index is down 0.8% to 7,400.6 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are storming higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 3.5% to $127.92. This follows a strong night of trade for the Square share price on the Nasdaq and the strengthening of the US dollar. As Afterpay is being acquired by Square in an all-scrip deal, any movements in the Square share price has an impact on the takeover price. It is the same also for the US dollar.

Anteotech Ltd (ASX: ADO)

The Anteotech share price has continued its strong run and is up a further 17% to 27.5 cents. Investors have been buying the surface chemistry company’s shares this week after it announced a distribution agreement with Ramma Dental. This is for the distribution of the EuGeni Reader platform and SARS-CoV-2 Antigen Rapid Diagnostic Test in Greece and Cyprus. Investors appear to be pricing in significant sales already.

Cettire Ltd (ASX: CTT)

The Cettire share price has jumped 15% to $3.66. This latest gain means the luxury goods ecommerce company’s shares are now up almost 650% since the start of the year. Overnight the US reported stronger than expected retail sales data. Investors may believe this bodes well for Cettire’s performance in FY 2022.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is up 3% to $15.10. This appears to have been driven by bargain hunters swooping in after a sharp pullback on Thursday. The clean lithium company’s shares crashed lower after announcing firm commitments for a $200 million institutional placement. These funds were raised at $13.50 per new share, which represented a discount of 15% to the Vulcan share price at the time.

The post Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 tumbles but the Afterpay (ASX:APT) share price is green?
• How has the Afterpay (ASX:APT) share price performed since reporting results?
• Why Accent, Ioneer, Lifestyle Communities, & Vulcan are sinking
• The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan
• These 3 ASX Healthcare shares have surged over 10% 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 shares of and has recommended AFTERPAY T FPO and Cettire Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Cettire 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 All Ordinaries Index (ASX: XAO) is deep in the red today, down 1% in late afternoon trading. That puts the All Ords down 0.3% since this time last week.

But not every ASX share has been sinking.

Far from it.

Below we take a look at the top performing ASX share of the week listed on the All Ords.

And with cryptocurrency fans in mind, we compare that to the week’s top performing altcoin.

An altcoin, if you’re not familiar, is any crypto other than Bitcoin (CRYPTO:BTC).

First up…

ASX uranium shares boosted by rocketing prices

The best performing ASX share this past week is Energy Resources of Australia Limited (ASX: ERA).

While it’s down 1% today, the Energy Resources share price is up an eye-popping 41% since last Friday. And this for a company with a market cap of some $1.7 billion.

The ASX uranium miner is currently trading at 47 cents per share.

Investors have been driving up the share prices of most uranium explorers as the price of the nuclear fuel is soaring. Earlier in the week uranium spot prices hit US$48 per pound. That’s a 9-year high.

Nations around the world are reconsidering uranium as a potential energy source. While there are clear radiation related concerns, including long term safe storage, uranium can provide power without carbon emissions.

News this week that Australia has inked a defence pact with the United States and the United Kingdom (dubbed AUKUS) and will eventually deploy 7 or more nuclear submarines has also sparked investor interest.

So how does the 41% 1-week gain from this leading ASX uranium share compare to the week’s top crypto?

It’s crypto by a nose

It’s a pretty tight race this week, but altcoin Avalanche (CRYPTO: AVAX) beats out the top ASX share by a nose.

Spurred on by a 9% gain today, AVAX has gained 48% over the past week. One AVAX is currently trading for US$64.81, an all-time high.

That weekly leap makes it the 13th biggest crypto in terms of market cap. The total market value is now just over US$14.3 billion.

So, what is AVAX?

CoinMarketCap defines it as, “a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche”.

And TechCrunch has some insight into why AVAX managed to beat the top performing ASX share this week.

Yesterday it reported that:

Avalanche completed a $230 million private sale of AVAX tokens to some well-known crypto funds. Polychain and Three Arrows Capital are leading the investment.

The Avalanche Foundation completed the private sale back in June 2021 and is disclosing it today.

Avalanche said it intends to use the funds to support its ecosystem.

The post This week’s top ASX share versus top altcoin winner revealed appeared first on The Motley Fool Australia.

More reading

• A 10-fold spike in the Bitcoin (CRYPTO:BTC) price? Not so fast!
• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Cryptocurrencies are making their way into more retiree portfolios
• Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Australian Strategic Materials Ltd (ASX: ASM) share price is defying expectations on Friday, rallying 4.94% to $11.26 at the time of writing.

This follows a harsh sell-off across the resources sector with the S&P/ASX Materials (ASX: XMJ) down 4.17%.

Perhaps more specific to the ASM share price is the overnight performance of the VanEck Rare Earth/Strategic Metals ETF (NYSEARCA: REMX).

The global exchange-traded fund invests in companies that derive at least 50% of total revenues from the rare earths or strategic metals industries. Its top 10 holdings include ASX 200 heavyweights Orocobre Limited (ASX: ORE), Pilbara Minerals Ltd (ASX: PLS) and Lynas Rare Earths Ltd (ASX: LYC).

Unfortunately, the ETF tumbled 4.6% overnight, reflecting broader weakness across ASM’s peers and industry. The gaining ASM share price illustrates strong buying support and the stock’s ability to stand tall in a weak market.

What’s pushing the ASM share price?

Recent price-sensitive announcements include the company’s entry into the S&P/ASX 300 Index (ASX: XKO) on 3 September. ASM also released its June quarterly activities report on 28 July.

The last quarter topped everything with major achievements for the emerging rare earths and oxide producer.

ASM’s managing director David Woodall said the company was at a “critical stage” of its evolution as projects matured and major milestones were achieved.

Woodall said:

The last quarter and the period since then have been transformational for ASM, with key financial support from the Australian Government, the backing from investors for our equity raising, and the Framework Agreement with the South Korean Investing Partnership that sets us on a path to realizing our ‘mine to metal’ vision.

Woodall said ASM will be working with its Korean partners to complete the conditions of its Framework Agreement. This will ultimately provide the company with a $250 million injection to drive its Dubbo Project.

The initial Framework Agreement announcement on 21 July drove the ASM share price 12.16% higher to $8.30.

What’s happening in the renewables sector?

There’s been a lot of hype around the renewables sector. ASX-listed lithium and rare earths shares are rallying to multi-year or all-time highs.

The renewables boom is underpinned by surging spot prices.

This week, Pilbara Minerals reported an almost 100% jump in its lithium auction prices in less than two months.

Lynas’ FY21 full-year results highlighted a rising average selling price from $21.5/kg in FY20 to $29.8/kg in FY21.

ASM share price snapshot

The ASM share price is up 71% year to date and 413% on this time last year.

The post Australian Strategic Materials (ASX:ASM) share price surges 5% against tumbling resources sector appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are looking to finish the week as the top movers on the ASX 300 today?
• Which ASX shares are leading the way on the ASX 300?
• Which ASX 300 shares are the biggest winners and losers today?
• The Australian Strategic Materials (ASX:ASM) share price is sliding 7% on Monday
• Which ASX shares are the top movers in the ASX 300 today?

Motley Fool contributor Kerry Sun 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 A2 Milk Company Ltd (ASX: A2M) share price is trading lower again on Friday.

In afternoon trade, the struggling infant formula company’s shares are down almost 3% to a three-month low of $5.40.

This means A2 Milk’s shares are down approximately 54% since the start of the year.

Why is the A2 Milk share price dropping again today?

Today’s weakness in the A2 Milk share price appears to have been driven by souring relations between Australia and China. This follows yesterday’s news that Australia, the UK, and the United States have formed the AUKUS alliance.

It isn’t just A2 Milk that is falling today in response to these concerns. Health supplements company Blackmores Limited (ASX: BKL) is also down by a similar margin this afternoon. It generates meaningful revenues from the China market.

And while it is worth noting that A2 Milk is a New Zealand based company, investors appear to be overlooking this due to its close ties to Australia and Australian based daigou shoppers.

What else is weighing on its shares?

The main drag on the A2 Milk share price this year has been its operating performance.

Countless downgrades, huge inventory write-offs, and a weak outlook have all had investors running to the exits.

However, one potential positive for the A2 Milk share price is that it has now dropped in line with the price target of the most bearish major broker.

According to a note out Macquarie Group Ltd (ASX: MQG) from late last month, its analysts put an underperform rating and $5.40 price target on the company’s shares.

Shareholders will no doubt be hoping that this represents the bottom for its shares. Though, whether that is the case or not, could depend largely on its annual general meeting update in November.

A much-improved performance could give its shares a boost. And vice versa if its performance has continued to deteriorate.

The post A2 Milk (ASX:A2M) share price falls 3% to 3-month low appeared first on The Motley Fool Australia.

More reading

• A2 Milk (ASX:A2M) share price rises despite bearish broker note
• Top brokers name 3 ASX shares to sell next week
• How does the A2 Milk (ASX:A2M) share price compare to the ASX 200 today?
• Why A2 Milk, Flight Centre, Medibank, & St Barbara shares are dropping
• Why the A2 Milk (ASX:A2M) share price has this leading broker’s Aussie clients scrambling

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 owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended A2 Milk. 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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Capital returns have been a big theme on our market and a leading broker reckons this S&P/ASX 200 Index (Index:^AXJO) share could be next inline.

Companies have been handing back excess cash to shareholders over the past year. As I wrote yesterday, capital returns are expected to contribute to the $84 billion plus cashback that investors can look forward to.

The ASX 200 shares with up to $800m in extra cash

Another ASX 200 company that could be looking to deploy the cash it doesn’t need to reward shareholders would be the Insurance Australia Group Ltd (ASX: IAG) share price.

Morgan Stanley reckons the insurer could have up to $800 million in cash that is surplus to its business needs.

But this is premised on whether the insurer getting a favourable outcome in a test case relating to business interruption (BI) claims related to the COVID-19 pandemic.

Court case to test ASX insurers

IAG isn’t the only insurer facing this challenge. The QBE Insurance Group Ltd (ASX: QBE) share price is also under the same cloud.

Insurers have largely rejected claims put in by small and medium sized businesses that have lost money due to lockdowns.

The claimants are taking insurers to court, and if they win, ASX insurers could be on the hook for a very large bill.

Release of provisions key to IAG’s capital return

IAG has put aside $865 million in claims provisions. If they can convince the judge that their insurance does not cover pandemics, most or all of this could be transferred back to profit.

This will leave IAG with a lot of excess cash given that they are already have a cash buffer that is above the requirement set by APRA.

“IAG has chosen to run as high as ~1.2x CET1 in recent years, slightly above its 0.9-1.1x preferred range,” said Morgan Stanley.

But even if IAG had to pay out around 50% of its provisions in claims, Morgan Stanley believes that it will still have circa $650 million of excess capital. This is from $425 million in BI claims savings post-tax and $225 million in capital drag release.

How ASX 200 shares return cash to shareholders

However, unlike the Suncorp Group Ltd (ASX: SUN) share price, IAG is unlikely to pay a special dividend to shareholders.

In fact, it is also not likely to do a off-market share buyback like Commonwealth Bank of Australia (ASX: CBA).

“With IAG holding close to nil franking credit balance at FY21, we believe IAG will have limited ability to pay franked special dividends in the next two years. An on-market buyback is the more likely scenario,” said Morgan Stanley.

“Our earlier work also showed that there is little evidence of buybacks leading to share price outperformance in financial stocks, based on our historical buyback analysis.”

Given this, it’s hard to get too excited about the IAG share price. This is probably one reason why the broker is recommending the IAG share price as “equal weight” (equivalent to “hold”) with a $4.80 a share price target.

The post The next ASX 200 shares that could undertake a big capital return appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are flying around the markets today
• Why this fund manager sees limited growth potential for ASX 200 banks
• Use the sharp commodity sell-off to buy these ASX 200 mining shares
• What’s happening with the CBA (ASX:CBA) share price this week?
• The Soul Patts (ASX:SOL) share price is down 3% on Friday

Motley Fool contributor Brendon Lau owns shares of Commonwealth Bank of Australia. 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 Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lotus Resources Ltd (ASX: LOT) share price has been one to watch these past few days.

Lotus Resources shares are now changing hands at 30.2 cents each. That’s a 5.47% drop from the market open. At one stage they were down 12% to 28 cents.

Yet, shares in the minerals exploration company have soared 26% into the green over the past week. In contrast, the S&P/ASX 200 index (ASX: XJO) has only edged 0.5% higher.

Let’s take a look at what’s fuelling the Lotus Resources share price lately.

What’s happening with Lotus Resources?

Lotus Resources shares have been on the move since the company made two distinct announcements over the past few days.

Earlier this week, Lotus advised its mining and exploration licence at the Kayelekera uranium project in Malawai was successfully renewed.

This grants Lotus an additional 15 years of tenure at the site. This “provides certainty and confidence to (its) investors” that the company has the “full backing of the Government” to develop Kayelekera.

In further news that could have boosted the Lotus Resources share price, the company announced it has commenced exploration activities at its Milenje Hills rare earths project, also in Malawi.

Lotus announced that from 22 mineralised samples, high-grade rare earth oxides (REOs) came up to 16%, with “critical” REOs up to 3.4%.

As such, several planned works are set to commence at the site, comprised mainly of testing and drilling schedules.

And let’s not forget the recent rally in uranium prices that has taken place over the last month. The price of uranium has soared from US$30 per pound to more than US$49 per pound since 16 August. That’s a 63% increase in just 1 month.

Lotus Resources share price snapshot

As Lotus is an ASX resources share that produces a commodity – in this case uranium – it is considered a price taker. As such, its share price is expected to fluctuate with volatility in the broader commodity markets.

The price of uranium has shot up vertically like a hockey stick on the chart, gaining 23% over the past week alone.

Given Lotus’ position as a price taker, and this rally in uranium prices, it starts to make sense why the Lotus Resources share price has soared over the last week.

As to today’s slump, there is no market-sensitive news from the company. Therefore, the dip could be a result of profit-taking from investors or a large sell order that was completed by a large institution.

The Lotus Resources share price has climbed around 140% this year to date, and almost 200% in the past 12 months.

Both of these results have far outpaced the broad index’s return of around 25% over the past year.

The post Lotus Resources (ASX:LOT) share price plunges 5% but is still up 26% this week appeared first on The Motley Fool Australia.

More reading

• Lotus Resources (ASX:LOT) share price jumps on rare earths update
• The Lotus Resources (ASX:LOT) share price is up 35% in a week
• Why the Lotus Resources (ASX:LOT) share price is jumping 18% on Monday

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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