• If you’d bought $1,000 of Pilbara Minerals shares 5 years ago, here’s what it would be worth

    asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

    Pilbara Minerals Ltd (ASX: PLS) shares have been very strong performers in 2021.

    Much to the delight of its shareholders, the lithium miner’s shares are up a whopping 171%.

    But that’s only telling part of the story. Investors that picked up shares five years ago have done even better.

    What would have happened if you’d bought $1,000 of Pilbara Minerals shares 5 years ago?

    Any investors that bought Pilbara Minerals shares five years ago would have smashed the market return.

    During this time, the company’s shares have averaged a total return of 39% per annum.

    This would have turned a $1,000 investment into ~$5,200 today. That’s more than four times your original investment.

    Why are its shares smashing the market?

    Investors have been bidding Pilbara Minerals shares higher in recent years on the belief that it stands to benefit greatly from rising lithium prices.

    For example, during the fourth quarter of FY 2021, the company didn’t reveal the price it was commanding, but mentioned that spodumene concentrate prices were being reported in the range of US$700 and US$975/dmt.

    This compares very favourably to the unit cash operating cost of US$441/dmt (CIF China) that was achieved for the quarter.

    Another positive was the outperformance of its shipments. Pilbara Minerals revealed that it shipped 95,972 dmt of spodumene concentrate for the quarter. This was ahead of its guidance range of 75,000 to 90,000 dmt.

    What’s next?

    The good news for the company, and Pilbara Minerals shares, is that JP Morgan is forecasting strong long term prices as demand increases. This is being driven by the electrification revolution, with households turning to electric vehicles (EV) and battery power storage.

    This week it upgraded its long term-lithium spodumene price forecast by 31% to US$850 a tonne. If this proves accurate, it leaves Pilbara Minerals well-placed to grow its profits as production ramps up across its operations.

    Whether this leads to another five years of outperformance, time will tell. But the future certainly does look bright.

    The post If you’d bought $1,000 of Pilbara Minerals shares 5 years ago, here’s what it would be worth appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pilbara Minerals right now?

    Before you consider Pilbara Minerals, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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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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  • How did the JB Hi-Fi (ASX:JBH) share price respond last earnings season?

    Young lady in JB Hi-Fi electronics store checking out laptops for sale

    The JB Hi-Fi Limited (ASX: JBH) share price has been trading sideways since August last year, struggling to break above about $54 and bouncing off lows of about $43.

    Before JB Hi-Fi delivers its full year FY21 results on Monday, 16 August, we wondered if previous earnings could provide any insight as to how its shares might respond?

    JB Hi-Fi share price rallies on prior earnings

    During August reporting season last year, JB Hi-Fi delivered a well-rounded result with total sales up 11.6% to $7.9 billion, while underlying net profit after tax (NPAT) surged 33.2% to $332.7 million.

    The JB Hi-Fi share price rallied as much as 8.58% to $51.33 on the day of the announcement, before closing 4.92% higher at $49.60.

    The FY20 results announcement also advised that sales momentum had continued into the first month of FY21, with July 2020 Australian sales up 42.1% on the prior corresponding period.

    Following earnings season, the JB Hi-Fi share price rallied to highs of about $52.50 in late August and mid-October but failed to push any higher.

    JB Hi-Fi shares moved in a similar fashion following the company’s 1H 21 results on 15 February.

    The half-year results delivered a solid 23.7% increase in total sales to $4.9 billion, with NPAT surging 86.2% to $317.7 million.

    The JB Hi-Fi share price surged 8.96% to a record high of $55.25 before closing 6.50% higher at $54.

    JB Hi-Fi earnings preview

    JB Hi-Fi has already provided investors with a solid preview of what to expect in its upcoming FY21 results.

    In an update on sales and full year 2021 results on 20 July, the company cited preliminary unaudited sales growth of 12.6% to $8.916 billion and a 67.4% increase in NPAT to $506.1 million.

    JB Hi-Fi Group CEO Richard Murray commented on the results saying:

    We are pleased to report record sales and earnings for FY21. Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both instore and online.”

    The JB Hi-Fi share price lifted 3.73% higher to $49.51 on the day of the update.

    Murray will depart JB Hi-Fi at the end of this month.

    The post How did the JB Hi-Fi (ASX:JBH) share price respond last earnings season? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in JB Hi-Fi right now?

    Before you consider JB Hi-Fi, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and JB Hi-Fi wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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    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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  • These leading altcoins are surging on Bitcoin’s 7-day charge higher

    Four children climbing up a wall at different stages

    The Bitcoin (CRYPTO: BTC) price has charged 13% higher since this time last week. Despite slipping 1% over the past 24 hours, 1 Bitcoin is currently worth US$45,256 (AU$61,994).

    And Bitcoin is far from alone in its run higher.

    Ethereum (CRYPTO: ETH) has also gained 13% over the past 7 days to US$3,122.

    Bitcoin’s year-to-date price gain now stands at 56%.

    As for Ether? The world’s second largest crypto by market cap has gained 322% this calendar year.

    While those gains are impressive, they pale in comparison to the gains posted by some of the leading altcoins.

    What’s driving the surge in altcoin prices?

    An altcoin, if you’re not familiar, is any crypto other than Bitcoin.

    Explaining the surging price among some altcoins earlier this week, Ray Brown, market analyst at Australian crypto exchange CoinSpot, pointed to Bitcoin’s 39% rally over the preceding month.

    According to Brown:

    Consequently, altcoins have also benefited from the Bitcoin rally, with the total market cap increasing by over US$279 billion over the same period, to an impressive US$1.04 trillion.

    In the last 30 days altcoins such as Axie Infinity (AXS), Ravencoin (RVN), Terra (LUNA), among others, climbed by over 117%. IoTeX (IOTX) saw the biggest rise of over 482%.

    Brown pointed to speculation that ongoing discussion by the United States government to better regulate cryptocurrencies is “potentially reinforcing the legitimacy of the industry” and helping drive the price gains.

    Bitcoin rally puts 95% of altcoins in the green

    A quick check of the price performance of the world’s 100 largest cryptos by market cap shows that 95 are in the green over the past 7 days. Only 5 are showing losses, according to data from CoinMarketCap.

    The biggest gainer since this time last week, by a landslide, is IoTeX (CRYTPO: IOTX).

    The IoTeX price has gained a whopping 369% since last Friday, or almost 28 times as much as Bitcoin’s own gains.

    Trading at a current price of 10.8 cents, IoTeX has a market cap just north of US$1.03 billion.

    So, what the heck does IoTeX do?

    According to CoinMarketCap:

    Starting as an open-source project in 2017, IoTeX has built a decentralised platform whose aim is to empower the open economics for machines — an open ecosystem where people and machines can interact with guaranteed trust, free will, and under properly designed economic incentives.

    In an important reminder of the wild volatility that comes along with Bitcoin and other crypto investing, the IoTeX share price, while up 369% over 7 days, is down 18% over the past 24 hours.

    The post These leading altcoins are surging on Bitcoin’s 7-day charge higher appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bitcoin right now?

    Before you consider Bitcoin, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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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  • Top broker tips Goodman Group (ASX:GMG) share price to surge higher

    Man holding phone in front of stocks graphic

    The Goodman Group (ASX: GMG) share price is edging higher on Friday.

    In afternoon trade, the commercial property company’s shares are up slightly to $22.70.

    This means the Goodman share price is now up 17% since the start of the year.

    Why is the Goodman share price outperforming in 2021?

    Investors have been bidding the Goodman share price higher this year on the belief that it would deliver a strong result in FY 2021.

    This turned out to be accurate, with the company releasing a result ahead of the market’s expectations this week.

    In case you missed it, Goodman reported a 15% increase in operating profit to $1.22 billion and operating earnings per share (EPS) of 65.5 cents.

    This was driven by a 12% increase in total assets under management (AUM) to $57.9 billion, a portfolio occupancy rate of 98.1%, and like-for-like net property income growth of 3.2%.

    One disappointment, though, was that its guidance for FY 2022 was below the market’s expectations. However, it is worth noting that Goodman has a track record of under promising and over delivering.

    Can its shares go even higher?

    The good news is that the team at Citi believe the Goodman share price is still good value at the current level.

    This morning the broker retained its buy rating and $26.00 price target on the company’s shares.

    Based on the current Goodman share price, this implies potential upside of 14.5% over the next 12 months before dividends.

    Citi said: “GMG’s FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating.”

    The post Top broker tips Goodman Group (ASX:GMG) share price to surge higher appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Goodman right now?

    Before you consider Goodman, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Goodman wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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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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  • Bank of Queensland (ASX:BOQ) share price struggles as Court finds contracts ‘unfair’

    Judge's gavel and justice scales

    The Bank of Queensland Limited (ASX: BOQ) share price is struggling today after the Federal Court found its small business loans to be “unfair”.

    As the Motley Fool Australia reported this morning, the Court determined the loans’ contracts were unfair and broke Australian law. It ordered the bank to remove the unjust terms.

    The Bank of Queensland share price has, understandably, suffered. It’s flat with its previous closing price of $9.57.

    Let’s take a closer look at today’s news of the Bank of Queensland.

    Federal Court finds loans “unfair”

    The Bank of Queensland share price has had a troubled day after the Australian and Investment Commission (ASIC) won its Federal Court case against the bank.

    ASIC has claimed the bank’s small business customers had been placed under weighted loan terms since November 2016.

    The Federal Court found in favour of ASIC’s claims that the bank’s small business loans’ terms breached Australian Consumer Law and the ASIC Act. In her judgement, Justice Banks-Smith stated:

    [T]he declarations sought are appropriate because they serve to record the Court’s disapproval of the contravening conduct, vindicate the claim by ASIC that the bank had contravened the Act, assist ASIC to carry out the duties conferred upon it by the Act, and deter other corporations from entering into contracts containing unfair terms.

    However, ASIC, Bank of Queensland, and the Federal Court stated none of the bank’s customers was impaired by the clauses. Bank of Queensland will now amend the terms, as ordered by the Court.  

    According to ASIC, the loans’ contracts meant the bank could change its terms at any time. Additionally, borrowers didn’t have the chance to leave a newly revised contract without being penalised.  

    Bank of Queensland could also default a customer’s loan due to events that wouldn’t cause the bank any financial harm. Further, it could do so without giving a borrower the chance to address the issue.

    Finally, the contracts stated if the bank erred on the loan’s details, the customer had to prove its failure. In a release detailing the Court’s finding, ASIC stated:

    [I]f BoQ issued a certificate stating an amount owing by a customer, that amount would be assumed to be correct unless the customer could prove otherwise.

    Bank of Queensland share price snapshot

    Safe to say, it hasn’t been a good day for the Bank of Queensland.

    However, the Bank of Queensland share price is still in the green. It has gained 27% year to date and 59% over the past 12 months.

    The post Bank of Queensland (ASX:BOQ) share price struggles as Court finds contracts ‘unfair’ appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bank of Queensland right now?

    Before you consider Bank of Queensland, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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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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  • Woodside (ASX:WPL) share price edges higher despite fresh climate outrage in WA

    gas and oil worker on pipeline equipment

    The Woodside Petroleum Limited (ASX: WPL) share price is edging higher in afternoon trade as we finish the week.

    While enthusiastic investors are pushing Woodside shares north, up 0.36% to $22.10, climate authorities have reacted harshly to the latest news on its Scarborough project.

    Let’s investigate further.

    Scarborough project gets the green light

    WA Minister for Environment, Amber-Jade Sanderson granted approval for the proposal on 11 August. The decision came after the Environment Protection Authority’s assessment.

    Woodside got the green light to construct about 33km of pipeline in nearshore waters off the Pilbara coastline, in the state’s north. This will make up a section of the 430km pipeline that Woodside is developing as part of its expansion of the Pluto LNG facility.

    Woodside welcomed the news with open arms. In a statement, Acting CEO Meg O’Neill said:

    This is an important regulatory milestone as we now have both commonwealth and state primary environmental approvals in place to support a final investment decision.

    An extensive public review was completed on the proposal, including stakeholder consultation, and a review of the spoil disposal management plan.

    The dust is yet to settle

    The decision has faced significant backlash. For instance, climate authorities have now weighed in on the debate, among others.

    In yesterday’s The Guardian, Conservation Council of Western Australia executive director, Piers Verstegen said the pipeline is “the key piece of infrastructure that would enable Australia’s most polluting fossil fuel project to proceed”.

    Tim Baxter, of The Climate Council, also chimed in. Baxter said how “absurd” it was that a project like Scarborough is “still being considered, let alone approved, in 2021”.

    The announcement follows the International Panel on Climate Change’s (IPCC) scathing report released a few days ago.

    O’Neill has pushed back at the condemnation by saying:

    Scarborough gas contains negligible reservoir carbon dioxide. Combined with the adoption of best available proven technology in design at Pluto Train 2, these developments will be amongst the lowest-carbon LNG sources globally for Woodside’s North Asian customers.

    Given the summation of these factors, investors can expect more to come from each camp. Despite the outrage, there has been little effect on the Woodside share price.

    Woodside share price snapshot

    The Woodside share price has posted a year-to-date loss of about 4%. Despite this, Woodside shares are 8% into the green over the past 12 months.

    In addition, Woodside shares are about 4% in the red over the past month.

    These returns have lagged the S&P/ASX 200 Index (ASX: XJO), which has climbed about 25% over the past year.

    At the time of writing, Woodside has a market capitalisation of $21.11 billion.

    The post Woodside (ASX:WPL) share price edges higher despite fresh climate outrage in WA appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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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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  • Magnum Mining (ASX:MGU) share price slides 7% on project update

    a person in a business suit wipes his forehead with his handkerchief while a red, falling arrow zigzags downwards behind him

    The Magnum Mining and Exploration Ltd (ASX: MGU) share price is having a woeful time during late Friday afternoon trade.

    This follows the mineral mining company’s latest announcement in regards to its agreement with Anglo American.

    At the time of writing, Magnum shares are down 7.69% to 12 cents apiece. Earlier, the Magnum share price hit a 5-month low of 10.5 cents within the first hour of market open.

    What did Magnum announce?

    Investors appear worried about the potential offtake arrangement, selling Magnum shares today. The arrangement would see Magnum sell its entire direct shipping ore from its Buena Vista iron ore project to Anglo American.

    According to Magnum’s release, both parties have extended the exclusivity period to conduct due diligence for the agreement. As such, the Magnum board does not foresee any impact to production timings should the offtake agreement be reached.

    The exclusivity date has been pushed back until 4 November 2021. However, a formal contract is expected to be signed well before.

    The term sheet remains unchanged. This includes the right of first refusal to Anglo American for 100% of the offtake volumes. This consists of iron ore concentrate, hot briquetted iron (HBI) and Pig Iron from Phase 2 of the project, as well as financing.

    Magnum said it would provide a further update when the formal agreements were complete.

    In addition, the company is reviewing other attractive opportunities in the region to increase its resource inventory from adjacent land. It also is working towards a bankable feasibility study to progress the HBI and Pig Iron project.

    About the Buena Vista iron ore project

    Located in Nevada in the United States, the Buena Vista mine is positioned to become a green steel producer. The term ‘green’ refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

    Additionally, the mine has close access to rail, water, port, and power facilities.

    Magnum share price summary

    Until recently, a strong 12 months hyped by investor sentiment led the Magnum share price to jump by more than 240%. Year-to-date performance has been just as impressive, with Magnum shares posting gains of more than 120%.

    Based on valuation ground, Magnum has a market capitalisation of around $59.5 million, with approximately 496 million shares outstanding.

    The post Magnum Mining (ASX:MGU) share price slides 7% on project update appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Magnum right now?

    Before you consider Magnum, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magnum wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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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 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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  • Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking

    A man stands in front of a chart with an arrow going down and slaps his forehead in frustration.

    The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is pushing higher. In afternoon trade, the benchmark index is up 0.5% to 7,625.2 points.

    Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

    Baby Bunting Group Ltd (ASX: BBN)

    The Baby Bunting share price is down 5% to $5.68. This follows the release of the baby products retailer’s full year results for FY 2021. That release revealed that Baby Bunting achieved a 15.6% increase in sales to $468.4 million and a 34.8% jump in net profit after tax to $26 million. Although this was strong, its subdued start to FY 2022 appears to have spooked investors. Baby Bunting advised that same stores sales are down 6.4% as of 12 August.

    Galan Lithium Ltd (ASX: GLN)

    The Galan Lithium share price has fallen 4.5% to $1.22. This morning the lithium explorer announced firm commitments to raise $50 million through a two-tranche institutional placement. These funds will be raised at $1.15 per share, which represents a 10.2% discount to its last closing price. Galan Lithium plans to use the proceeds to accelerate the development of its lithium projects.

    Suncorp Group Ltd (ASX: SUN)

    The Suncorp share price has dropped 3.5% to $12.34. The insurance and banking giant’s shares have tumbled today after they traded ex-dividend for its upcoming final and special dividends. Eligible shareholders can now look forward to receiving fully franked dividends totalling 48 cents per share on 22 September.

    Vulcan Energy Resources Ltd (ASX: VUL)

    The Vulcan share price is down 4% to $14.64. This is despite there being no news out of the lithium developer. However, with the lithium sector running hot this week, profit taking appears to be weighing on Vulcan’s shares. In fact, even after today’s gain, the Vulcan share price is up almost 15% since this time last week.

    The post Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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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 recommended Baby Bunting. 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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  • Why has the NIB (ASX:NHF) share price reached a 52-week high on Friday?

    Group of medical professionals high five

    The NIB Holdings Limited (ASX: NHF) share price leapt into the green in early trade today. Shares in the health insurer started the session well, reaching a 52-week high of $7.97, before retracing back down.

    The NIB share price is now changing hands at $7.72 apiece, a 0.52% walk into the green.

    Let’s examine the tailwinds behind the company of late.

    What has NIB been up to lately?

    On 20 July, NIB announced a restructuring of its board, appointing David Gordon as the new chair of its board. Gordon replaced Steve Crane, who officially stepped down on 29 July.

    As a founding principal of Lexicon Partners and current chair of Accent Group Ltd (ASX: AX1), Gordon said he was “honoured and excited to assume the role”.

    In addition, NIB was a feature in the Prime Value Opportunities Fund June update, as reported by Motley Fool’s Mitchell Lawler. The fund described NIB as “very attractive”, considering a two or three-year holding period.

    Prime provided a brief synopsis of its investment thesis on NIB in the update:

    The consensus view is that profit margins are unsustainably high and it’s better to own the health providers as elective surgeries, etc. return. We agree NHF’s margins will fall but using long term, sustainable margins, the company is very attractively priced.

    And in the meantime it generates very high cashflows, boosting the balance sheet. To us, fundamental underlying value is more important than short term earnings trends

    Investor sentiment sets the tone

    Doubtlessly, investor sentiment is bullish on NIB shares at the current standing. To illustrate, the NIB share price has reached new 52-week highs three times in the last month.

    Further, on the charts, NIB shares have really taken off since the beginning of July. As much is observed on the chart below.

    NIB share price vs broad index, March – August 2021

    Google and the Google logo are registered trademarks of Google LLC, used with permission

    This is called an “uptrend”, where a share price makes consecutive new highs (and higher lows) as we walk through time.

    Moreover, this display is further evidence of the bullish sentiment on NIB shares right now. The NIB share price has been in an uptrend since July, indicating there is investor demand to buy NIB shares.

    With no market-sensitive information released today, it appears that the board restructuring, and in particular the current investor sentiment, are key tailwinds behind the NIB share price right now.

    NIB share price snapshot

    The NIB share price has posted a year to date gain of 29.3%, extending the previous 12 month’s climb of 67%.

    These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s lift of around 25% over the past year.

    NIB shares have climbed 21% over the past month alone, and are almost 4% in the green over the past week.

    The post Why has the NIB (ASX:NHF) share price reached a 52-week high on Friday? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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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 recommended NIB Holdings 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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  • Commonwealth Bank (ASX:CBA) share price falls amid climate revolt

    Group of people with banners in climate change protest

    The Commonwealth Bank of Australia (ASX: CBA) share price is in the red as climate activist group, Market Forces, pushes the bank on its commitments to preventing climate change.

    At the time of writing, shares in Australia’s largest bank are trading for $103.70 – down 2.06%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.47% higher.

    Let’s take a closer look.

    CBA share price down amid climate push

    In the wake of the devasting climate report by the Intergovernmental Panel on Climate Change (IPCC), which outlined the dire situation humanity is facing in the next 10 years, activists have stepped up the pressure on governments and corporations to do more to mitigate man-made climate change.

    Motley Fool Australia has previously reported on how Market Forces is pushing BHP Group Ltd (ASX: BHP) to keep and wind down its high-emitting assets, rather than sell them.

    Regarding CommBank, Market Forces and a group of the bank’s shareholders are placing a resolution on the agenda of its AGM. The group is asking CBA “to no longer fund expansion of the fossil fuel industry, and to set targets to reduce fossil fuel exposure consistent with net zero by 2050″.

    It is not clear what impact this could have on the CBA share price going forward.

    ‘CommBank’s new climate policy a kick in the guts

    Market Forces claims Commonwealth Bank’s current plan aligns closer to net zero by 2070 rather than 2050. This claim was made soon after the release of the bank’s full-year results for FY21, which sent the CBA share price to a new record high.

    “If the IPCC’s report was a kick in the teeth to all those who desperately want a safe climate future, CommBank’s new climate policy is a kick in the guts to follow it up”, said Jack Bertolus, Australian campaigns coordinator for Market Forces.

    “What CBA has delivered today is a retreat from its existing policy, and makes a mockery of its own claim to be supportive of net-zero by 2050.

    “We’re living in a moment when we need to pull out all the stops to prevent catastrophic climate change, yet the first thing CBA does is aim for failure.”

    Finally, Market Forces says Commonwealth Bank has “watered down its commitment” to not funding fossil fuel activities that did not comply with the Paris Agreement. It says the bank is now only committing to not providing project funding.

    When the Australian Prudential Regulatory Authority (APRA) released a draft guidance for financial institutions and their obligations around climate change, Motley Fool Australia asked CBA for comment.

    At the time, a spokesperson for CommBank said:

    We are aware of, and are currently reviewing, APRA’s draft guidance on managing the financial risks of climate change that was released last week. We continue to work closely with APRA and the broader industry as we strive to limit climate change in line with the goals of the Paris Agreement and support the global transition to net zero emissions by 2050.

    CBA share price snapshot

    Over the past 12 months, the CBA share price has increased by about 43%. Year-to-date CommBank shares are about 24% higher. It has outperformed the ASX 200 by 18 percentage points over 52 weeks and 10 percentage points in 2021.

    Commonwealth Bank has a market capitalisation of around $188 billion.

    The post Commonwealth Bank (ASX:CBA) share price falls amid climate revolt appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CommBank right now?

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    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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    Motley Fool contributor Marc Sidarous 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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