International shares, until not so long ago, were largely left to international investors.

Aussie investors tended to stick almost exclusively with the ASX listed stocks. But that picture has changed drastically.

These days its easier than ever to find up to date information on international shares. And the fees for investing in overseas companies have come way down, even over the past few years.

A look at the top-10 list of most popular traded shares in August among Saxo Capital Markets’ Australian clients reveals that 4 of them are, in fact, international shares.

Four top international traded shares

We start off with Tesla Inc (NASDAQ: TSLA), the seventh most popular traded share overall among Saxo’s clients in August.

Saxo says that Aussie retail investors are drawn by Tesla’s founder Elon Musk as he pushes ahead with innovative next generation vehicles. And Tesla’s potential to expand into the massive Indian market has increased local interest in the company.

According to Saxo, “India is considered one of the world’s fastest emerging car markets and if Tesla can partner with auto parts suppliers within the country, it could make huge inroads.”

The Tesla share price is up 106% over the past 12 months.

Moving on, the fifth most popular overall share and third most popular traded international share for August was Alibaba Group Holding Ltd (NYSE: BABA).

The Chinese e-commerce giant (listed on US and Hong Kong exchanges) has struggled as it’s come under scrutiny from Chinese regulators over intellectual property violations. Alibaba’s share price is down 38% over the past year and down 13% over the past month.

Given the share price falls, Saxo notes:

The retail giant’s price-to-earnings ratio stands currently at 19.25, which is some way short of its 2020 high of 42.85. All these signs would suggest that the Alibaba stock is undervalued and has the potential to rebound, but the uncertain August has seen question marks linger over the corporation’s ability to withstand regulatory reforms.

Which brings us to the fourth most popular overall and second most popular international traded stock, Apple Inc (NASDAQ: AAPL).

Aussie investors are drawn to Apple in part because it’s a globally recognised household name. It’s also been charging higher, with shares up 32% over the past 12 months. And that’s based on solid fundamentals.

As Saxo notes, “Its last quarterly earnings once again surpassed expectations, registering US$81.41 billion in revenue and an impressive profit of $1.30 per share.”

Saxo also offered these words of caution:

In the weeks and months ahead, retail traders should keep a close eye on Apple’s legal headwinds. The operator’s App Store has come under legal scrutiny for failing to provide a “free and fair marketplace” for its app developers, according to Tennessee Senator Blackburn.

And finally, the second most popular overall and most popular traded international share among Saxo’s clients in August was…drum roll please…Amazon.com, Inc. (NASDAQ: AMZN).

If you never bought anything from the e-commerce giant before the pandemic lockdowns, there’s a fair chance you have by now.

A global operator, Amazon has been making rapid inroads Down Under. And that growth looks set to continue.

Saxo notes, “Amazon’s Australian trading arm has been tipped to experience exponential growth in 2021… Its latest AU$500 million centre in Sydney will deliver the latest in robotics and automation, cementing a state-of-the-art logistics hub in the Emerald City.”

The Amazon share price has gained 8% over the last 12 months.

Foolish takeaway

There are loads of great companies trading on the ASX. And it makes sense for most Aussie investors to hold ASX shares in their portfolios.

But that doesn’t mean international shares should be ignored. Investing outside the ASX can help diversify portfolios and offer access to companies you just won’t find listed in Australia.

While there are added risks to consider, like currency fluctuations, it’s worth taking some time to look into the potential opportunities of leading international shares.

The post Leading broker unmasks 4 top traded international shares appeared first on The Motley Fool Australia.

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• ASX investors were buying Alibaba, Pfizer shares last week
• Better buy: Amazon or every Nasdaq stock?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, Apple, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon and Apple. 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 Hazer Group Ltd (ASX: HZR) share price isn’t going anywhere on Thursday. This comes after the hydrogen producer requested a trading halt before the market opened.

As such, Hazer shares remain frozen at $1.075 apiece. It’s worth noting that the Hazer share price has gained more than 32% over the past month.

Why is Hazer in a trading halt?

Hazer was placed in a trading halt this morning pending an announcement regarding a proposed capital raising.

While no details have been given, the company might be seeking to shore up its balance sheet for the Hazer Commercial Demonstration Project (CDP).

The plant is being constructed at Water Corporation’s Woodman Point Water Recovery Facility in Western Australia.

Recently, there have been delays with the fabrication and supply of high temperature materials due to COVID-19 related restrictions. The restrictions have impacted Chinese mill operations and pushed back shipping deliveries to Australia.

Hazer estimates the commissioning of the CDP to be achieved within the first quarter of 2022, as opposed to the original target date of December 2021.

The company advised it will aim to minimise any extra costs incurred through the delay or increased shipping and freight expenses.

Hazer CEO, Geoff Ward commented, “We will continue to monitor these issues and do all we can to mitigate the impacts on the project.”.

The current guidance for the cost of building the CDP is between $21 million and $22 million.

The Hazer share price will remain frozen in the trading halt until 13 September or when the company releases its announcement.

Hazer share price snapshot

It has been an interesting year for Hazer shares, shooting higher at the beginning of 2021 before moving in circles. Nonetheless, the Hazer share price is up 175% over the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) has advanced 28% in the same period.

Hazer has a market capitalisation of roughly $156.2 million, with about 145 million shares on its books.

The post Why is the Hazer (ASX:HZR) share price frozen? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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NAOS Small Cap Opportunities Company Ltd (ASX: NSC) is a listed investment company (LIC) that targets small cap ASX shares with market capitalisations between $100 million and $1 billion.

It runs a portfolio of high-conviction names. In the latest monthly update, the LIC only had seven positions in its portfolio which it views as long-term holdings.

The LIC is fresh from generating a portfolio performance of a 58.4% return over FY21 and it is still confident about these three ASX shares which just reported during reporting season:

BSA Limited (ASX: BSA)

BSA is a technical services contracting company.

The fund manager said that BSA produced a result consistent with what it has seen for a number years. It was a “credible” underlying result, particularly in the current conditions, but there were a number of one-off costs.

Naos noted that there was commentary about laying the foundations for the future. Underlying margins at the small cap ASX share also increased in FY21, so the fund manager believes that commentary is correct.

Naos was disappointed by the lack of substantial comments about capital management and a lack of tangible progress regarding acquisitions. The fund manager believes that BSA has a sound foundation to build on which “could lead to significant compounding returns for shareholders over time”. It is hoped by the fund manager that the potential will start to be realised in FY22.

COG Financial Services Ltd (ASX: COG)

COG, a financial services provider, revealed a result that showed underlying net profit (NPATA) rose by over 132%. Naos noted that the result had increased transparency compared to previous years along with “excellent” cash generation. The fund manager attributed the cashflow generation to COG’s capital light, distribution-focused business model.

Naos pointed out that the result allowed the small cap ASX share to grow its dividend by 295%. The dividend payout ratio was 62%.

The fund manager was also pleased that more transparency was also provided about its insurance broking strategy which is now starting to be implemented. The company has stated its ambitions to grow this to 50% of the earnings of the finance broking and aggregation division. Naos said if that can achieved, then the fund manager believes the insurance broking business could potentially contribute $15 million of earnings before interest, tax, depreciation and amortisation (EBITDA) in five years’ time.

Eureka Group Holdings Ltd (ASX: EGH)

Eureka was a provider of affordable rental accommodation for independent seniors within a community environment.

Naos said that that Eureka’s result confirmed the momentum that the business has building over the last two years. Underlying EBITDA was up around 22% and all key metrics like occupancy levels remain robust.

There was a slight negative that Naos pointed to from the small cap ASX share – there wasn’t greater detail revealed on its capital management strategy that would enable the business to scale significantly in the future.

The fund manager thinks that Eureka can become a much larger business but it may not need to own 100% of all of its assets on its own balance sheet. Naos points out there Greg Paramor is on the board, who has a lot of experience at Folkestone and more recently Charter Hall Group (ASX: CHC), he could help the business launch a funds management model which is a strategy Naos believes could be very beneficial for Eureka shareholders over the longer-term.

The post 3 top small cap ASX shares this fund manager likes appeared first on The Motley Fool Australia.

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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 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 Weebit Nano Ltd (ASX: WBT) share price has returned from its trading halt and is rocketing higher.

In morning trade, the semiconductor memory technology company’s shares are up 59% to a record high of $4.50.

This gain means the Weebit Nano share price is now up over 400% since this time last year.

Why is the Weebit Nano share price rocketing higher today?

The Weebit Nano share price has taken off today after the company confirmed that it has entered into its first commercial deal.

According to the release, the deal is with a subsidiary of Nasdaq-listed semiconductor foundry SkyWater Technology Inc. (NASDAQ: SKYT).

SkyWater is a US Department of Defense accredited pure play technology foundry. It specialises in advanced innovation engineering services and volume manufacturing of a wide variety of differentiated integrated circuits (ICs).

It also supports customers developing and manufacturing ICs in various markets. These include aerospace and defense, automotive, computing and cloud, consumer, industrial, and medical.

Management believes this first commercial deal is a critical milestone for Weebit Nano, providing commercial validation of its ReRAM technology and commencing the growth trajectory for its technology onto customers’ chips.

The release notes that SkyWater will be dedicating a significant amount of time and resources to support the commercialisation of Weebit’s technology.

Furthermore, SkyWater will take Weebit’s ReRAM technology to volume production via a license to manufacture customer designs containing Weebit’s technology. This is once the technology has been qualified in SkyWater’s production fab. The two companies will also cooperate on marketing and sales activities.

On the path to revenue generation

Also potentially giving the Weebit Nano share price a boost was management’s comments on what this means for its future revenues.

Weebit Nano’s CEO, Coby Hanoch, commented: “Weebit’s first commercial deal is a major milestone for our Company, providing validation of our innovative technology. It enables us to bring Weebit’s cutting-edge ReRAM technology to volume production by offering it to SkyWater’s extensive customer base, in addition to customers Weebit will sign up and bring to SkyWater, putting us firmly on the path of initial and ongoing revenues.”

However, it has warned that at this stage it is unclear whether these revenues will be material.

The company advised that the economic materiality of this agreement is not known due to the contingent nature of the license fees and royalties. This is because they depend on the number of customers who sign up to use Weebit’s technology and on the number of chips those customers produce using the technology.

Nevertheless, that clearly hasn’t put a dampener on the Weebit Nano share price today.

The post Why the Weebit Nano (ASX:WBT) share price is rocketing 59% on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has been the talk of the town this week amid preparations to open Australia’s international borders.

The federal government is reportedly working on a ‘vaccine passport’ system to prove the vaccination status of Australians travelling internationally.

While the news isn’t directly related to the Sydney Airport, its shareholders are likely excited by the step towards the resumption of international travel.  

Right now, the Sydney Airport share price is $7.95, 0.44% lower than its previous close.

Let’s take a closer look at what’s got some market watchers talking about Sydney Airport.

Sydney Airport in the spotlight amid vaccine passport news

The Sydney Airport share price might soon see an upswing as Australia begins implementing strategies to keep travellers safe once its international borders open.

According to reporting by the Guardian, trade minister Dan Tehan told journalists Australia will have a system to recognise a person’s vaccination status up and running within weeks.

The system is expected to be put into use when 80% of Australians over the age of 16 are fully vaccinated against COVID-19.

The Sydney Airport share price has been taking off lately. Its gains were potentially spurred by news Qantas Airways Limited (ASX:QAN) is planning to restart international flights in December.

In 2019, approximately 16.8 million international travellers passed through Sydney Airport.

Tehan reportedly said the government is developing a QR code system with the International Civil Aviation Organisation. The system would see Australians’ vaccination status recognised internationally.

Qantas is also helping to create an internationally recognised ‘health pass’. The health pass is being developed by the International Air Transport Association. It is expected to align a traveller’s vaccination status and recent COVID-19 test results to individual nations’ entry requirements.

Sydney Airport share price snapshot

Right now, Sydney Airport’s shares are 24% higher than they were at the start of 2021. They’ve also gained 45% since this time last year.

The post Why is the Sydney Airport (ASX:SYD) share price in focus this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The battery and electrification sector’s recent boom has seen many ASX battery mineral explorers surging into the spotlight.

Those ASX-listed companies producing battery metals such as copper, cobalt, nickel, graphite, rare earths, and lithium are increasingly hitting the headlines, as are the prices of said metals.

They’ve seemingly been driven by increasing global demand for electric vehicles and battery power.

The share prices of battery metal producers Vulcan Energy and Resources Ltd (ASX: VUL) and Ecograf Ltd (ASX: EGR) have each soared more than 1,000% in the last 12 months.

And now, there’s what looks to be a glut of battery metal Initial Public Offerings (IPOs) ready to hit the ASX in the coming weeks.

10 upcoming battery and electrification debuts

Li-S Energy Limited

Li-S Energy is a developer of lithium-sulphur batteries using boron nitride nano-tubes. According to the company, its technology’s energy density is superior to that of traditional lithium-ion batteries.

Li-S Energy’s debut has been highly anticipated for some time now, and there’s still no set date on which it will hit the market.

The company’s a PPK Group Limited (ASX: PPK) spin-off.

Dalaroo Metals Ltd

Dalaroo Metals has 2 projects in Western Australia. They’re prospective for nickel, copper, platinum group elements, zinc, and silver.

Keep a lookout for the company’s IPO on 15 September.

Copper Search Limited

Copper Search is a copper and gold exploration company with a focus on South Australia’s Gawler Craton. The company believes now is the time to tap into the ASX copper sector as the move towards battery power electrification heats up.

Copper Search’s IPO is also booked for 15 September.

Recharge Metals Limited

Recharge is focusing on copper exploration in Western Australia, where it owns 3 projects.

However, its projects also house gold, nickel, cobalt, and zinc.

Recharge’s expected date to list is 21 September.

Widgie Nickel Limited

Widgie is working on producing nickel and new economy metals. Its Mt Edwards project is highly prospective for nickel.

Widgie’s expected debut is on 22 September.

Revolver Resources Holdings Ltd

The ASX will soon see this developer of metals for the global movement towards battery power and electrification hitting the market.

Right now, Revolver’s working on copper exploration in Queensland.

Revolver’s planned IPO is set for 23 September.

Forrestania Resources Limited

Forrestania is exploring gold and lithium. It currently has the option to acquire several packages covering 700 square kilometres.

The company’s expected to debut on the ASX on 23 September.

C29 Metals

C29’s focus is on copper exploration. It holds 4 projects located around Australia.

The company’s set to debut on the ASX on 1 October.

NickelSearch Limited

NickelSearch is – you guessed it – a nickel exploration company. It plans to leverage its production to the green energy materials supply chain, thus, benefiting from the turn to electrification.

The company’s expected to hit the market on 6 October.

Minerals 260 Limited

Minerals 260 has spun-out of Liontown Resources Limited (ASX: LTR). It holds the Moora Gold-Nickel-Copper-PGE Project and has the option to earn a 51% interest in the Koojan Gold-Nickel-Copper-PGE Project.

The company will debut on 11 October.

The post 10 upcoming ASX floats in the battery and electrification sector appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rubicon Water Ltd (ASX: RWL) share price has been in hot demand this past week.

Since debuting on the exchange last week, shares in the water technology company have almost doubled.

Let’s take a closer look at why investors have been pushing the Rubicon Water share price higher.

Rubicon Water share price makes big splash

Shares in Rubicon debuted on the exchange last week after issuing 42.8 million shares for $1.00 in its initial public offering (IPO).

On its first day of trading, the Rubicon Water share price closed 63% higher for the day at $1.63.

Leading broker Bell Potter was the sole lead manager for Rubicon’s IPO.

According to the Australian Financial Review‘s Street Talk column, three ethical funds got the lion’s share of the company’s IPO. As a result, many retail investors were left scrambling for the remainders.

Yesterday, Rubicon Water shares were swapping hands for $2.05, more than double their initial price.

At the time of writing, shares in the water technology company are trading at around $1.94, down 1.02% for the day.

More on Rubicon Water

Established in 1995, Rubicon specialises in water-saving irrigation automation technology.

The company’s technology provides a range of solutions that help users modernise their irrigation distribution channels and networks.

Rubicon’s technology automates the measurement and control of water flow via solar-powered aluminium gates and soil sensors.

As a result, the company’s system reduces spillage by accurately measuring and accounting for water. Prior to this, irrigation control points had to be turned on or off manually.

The technologies provided by Rubicon are used by various institutions such as governments, irrigation water authorities, and farmers.

According to its prospectus, Rubicon’s technology is implemented in more than 1 million hectares of irrigated land.

The company also notes a pipeline of products and patents across 21 jurisdictions.

What’s next for Rubicon Water?

For 2021, Rubicon has forecasted $80.4 million in revenue for 2021, and $7.5 million net profit, on a pro forma basis.

The company generates more than 85% of its revenue through hardware sales. Rubicon boasts a growing software arm and also generates revenue from maintenance of its products.  

Rubicon’s management cited that the company was pursuing a listing in order to access greater capital to assist its growth strategy.

Capital raised through the IPO will go toward establishing itself in more offshore markets, as well as research and development of new hardware and software products.

The post The Rubicon Water (ASX:RWL) share price has doubled since last week’s IPO appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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It’s been a stellar year for the Commonwealth Bank of Australia (ASX: CBA) share price, rallying 22.8% year-to-date and well above its 2008 highs.

But CBA’s valuation has come into question, and Leithner & Company managing director Chris Leithner thinks the leading bank “no longer deserves its premium”.

In an article featured on Livewire, Leithner quantifies the Big Four banks’ returns over key intervals and breaks down why the glory days for the CBA share price might soon be over.

A history of outperformance

Leithner highlights key intervals over the past three decades and for the most part, it’s been the CBA share price running ahead of the others.

1. Before the Global Financial Crisis (GFC), CBA “outperformed” the other banks and the index
2. During the GFC, it fell less than the other banks (except WBC) and the AOAI
3. After the GFC and before the Global Viral Crisis (GVC), it outpaced the others
4. During the GVC, it fell less than the others.

However, in recent times, Leithner flags that the CBA share price hasn’t outperformed since March last year.

ANZ’s shares have risen more than CBA’s; and CBA’s rise is little more than NAB’s and WBC’s.

This, I suspect, might be a preliminary and surface indication of a deeper and long-lasting change: if the 30 years to 2020 suited a relatively aggressive bank like CBA, might the times now favour – at least in relative terms – a more conservative one like NAB?

CBA share price drivers

Leithner believes CBA’s aggressive lending has been a key driver of its outperformance.

“CBA has lent particularly aggressively; that is, its liquidity and reserve ratios have consistently lagged the others.

“For this and other reasons, its ROE has exceeded the others – and market participants have valued its equity relatively highly,” said Leithner.

Looking ahead

The CBA share price might be at its crossroads as economic growth begins to slow.

Leithner concludes that the Big Four banks “are now low-growth and remain heavily exposed to housing, funding markets and unemployment … Their profits and dividends are a result of significant leverage; they are not annuities comparable to term deposits.

“In this environment, CBA no longer deserves its premium and will therefore lose it; the price of its equity, in other words, will either fall towards the others or the others will rise towards CBA’s, or some combination of the two.”

The post CBA (ASX:CBA) share price too expensive, says expert appeared first on The Motley Fool Australia.

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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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The Doctor Care Anywhere Group PLC (ASX: DOC) share price has been a strong performer on Thursday.

In morning trade, the telehealth company’s shares are up 10% to 85 cents.

Why is the Doctor Care Anywhere share price racing higher?

Investors have been bidding the Doctor Care Anywhere share price higher today after it announced a key new acquisition.

According to the release, the company has acquired Australian based telehealth provider GP2U Telehealth.

GP2U Telehealth provides virtual GP services under the brand GP2U and tele-mental health services under the brand Psych2U. The latter is the key contributor of revenue, currently generating 78% of GP2U Telehealth’s total revenue of $4.4 million.

The release notes that the $11 million acquisition represents Doctor Care Anywhere’s first entry into the Australian telehealth market.

Why acquire GP2U Telehealth?

Doctor Care Anywhere appears to see the acquisition of GP2U Telehealth as a great way to gain exposure to the increased spending on mental health by the government.

It highlights that in response to the mental health consequences of the COVID-19 pandemic, the Australian government has increased spending on mental health to $6.3 billion for 2021-22. This includes a significant expansion of telehealth services to respond to high levels of mental distress in communities across the country.

Management believes GP2U Telehealth is well placed to meet this demand through its mental health service provision.

Doctor Care Anywhere’s CEO, Dr Bayju Thakar, said: “This acquisition represents another important milestone for Doctor Care Anywhere; giving us a platform on which to build our presence in the Australian market and further expand our international business. It will give GP2U the support it needs to make a real difference in helping patients, particularly those in rural and remote regions, access high quality virtual GP care and, in particular, support existing GP practices in the provision of tele-mental health.”

“Both service lines are ideally suited to the innovative and responsive applications provided by a telehealth approach, especially where the geographical distance between clinician and patient is prohibitive. Building on our significant organic growth, we believe that this is the right time to be expanding our telehealth activity internationally to serve and care for more patients through the strategic acquisition of GP2U Telehealth and we are very excited to be entering the Australian market,” he concluded.

The Doctor Care Anywhere share price is down 31% in 2021.

The post Why the Doctor Care Anywhere (ASX:DOC) share price is jumping 10% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 Wesfarmers Ltd (ASX: WES) share price has been on fire in 2021.

Shares in the conglomerate have been in hot demand with a spate of COVID-19 lockdowns fuelling consumer demand.

Wesfarmers operates household banners such as Bunnings, K-Mart, Officeworks and Target.

However, not many investors know that the conglomerate also has significant exposure to the lithium sector.

Let’s take a look at Wesfarmers’ involvement in the lithium sector.

Wesfarmers enters lithium sector

The lithium sector has received extra attention recently as spot prices soar.

One of the many companies that could benefit from higher lithium prices could be Wesfarmers.

Earlier this year, the conglomerate divested its coal business and expanded into the burgeoning lithium sector.

This move culminated in Wesfarmers constructing a lithium mine in the Western Australian region of Mt Holland.

The conglomerate also has a joint venture company, Covalent Lithium, with Chilean lithium giant Sociedad Química y Minera de Chile (SQM).

Following a feasibility study, the Mt Holland project has an approximate annual production capacity of 50,000 tonnes of battery-grade lithium.

Most recently, Wesfarmers received ministerial approval for the construction and operation of the lithium hydroxide refinery as part of its Mt Holland lithium project.

As a result, the conglomerate is in a unique position to supply battery-grade lithium to sate global demand.

Snapshot of the Wesfarmers share price

Up until recently, the Wesfarmers share price was having a stellar year thus far.

However, in the past 3 weeks, shares in the conglomerate have fallen more than 14% from their record highs.

The sell-off coincides with the release of the company’s full-year report for FY21.

For the full-year, Wesfarmers recorded a 10% increase in revenue and an 18.8% jump in EBIT from continuing operations.

Other highlights from the company’s full-year report included;

• EBIT (after interest on lease liabilities) up 20.7% to $3,550 million
• Net profit after tax rose 16.2% to $2,421 million
• Operating cash flows down 25.6% to $3,383 million
• Fully franked full year dividend of 178 cents per share, up 17.1% year on year
• Proposed $2.3 billion or $2.00 per share capital return to shareholders

Despite falling in the past month, the Wesfarmers share price remains more than 12% higher for the year.

Shares in the conglomerate closed yesterday’s session at $28.85.

The post Own Wesfarmers (ASX:WES) shares? Then you’re invested in lithium appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Wesfarmers 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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