Tag: Fool

The 2024 financial year has just come to a close, and what a year it was for ASX shares. Over the 12 months to 30 June 2024, the S&P/ASX 200 Index (ASX: XJO) rose by a healthy 7.8%. Including the returns from dividends, ASX 200 investors are looking at an FY24 return of around 12%. But some ASX exchange-traded funds (ETFs) did even better than that.

A 12% return for a 12-month period is indeed a very pleasing return for the ASX 200, historically speaking. But wait until you see some of the returns that the ASX’s best ETFs managed last financial year.

Before we get to the list, it’s worth noting that we won’t be including leveraged or geared ETFs like the Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS). Gearing arguably gives these funds a bit of an unfair advantage in these stakes, so we’ll be overlooking them for now.

The five best ASX ETFs of FY24

Global X Uranium ETF (ASX: ATOM)

The Global X Uranium ETF had a phenomenal FY24, thanks in large part to soaring demand (and prices) for the nuclear fuel uranium.

This commodity-based fund holds a portfolio of global companies that all operate within the uranium mining and atomic fuel space. Some of its top stocks include Mitsubishi Heavy Industries and ASX’s Boss Energy Ltd (ASX: BOE).

ATOM units enjoyed a stunning 38.45% return over the 2024 financial year, rising from $11 each to $15.23 at the end of last week.

Global X FANG+ ETF (ASX: FANG)

Next up, we have the FANG+ ETF. This ETF is a rather unique one on the ASX. It only holds 10 underlying stocks, which are made up of the ten most dominant tech shares on the US markets. Think the likes of Amazon, NVIDIA, Apple and Alphabet.

This ETF had a great FY24. FANG units began the year at $18.78 but finished up at $26.92, a gain of 43.3%. FANG investors will also enjoy an FY24 dividend distribution later this month, which will add another 5% or so to that total.

Global X Semiconductor ETF (ASX: SEMI)

Next up we have another Global X fund in the Semiconductor ETF. This thematic ETF does basically what it says on the tin – allow ASX investors exposure to a portfolio of global stocks that are all leaders in the semiconductor and internet of things space.

With NVIDIA as a top holding, this ETF was always going to have a successful FY24. But SEMI units went from being priced at $11.68 at the start of the year to $17.91 by the end. That’s a gain worth 53.3%. Investors also enjoyed some dividend distributions, but these didn’t move the needle too significantly.

BetaShares Global Uranium ETF (ASX: URNM)

Changing lanes again now, we are back to another commodity-based fund, this one from Betashares. The Global Uranium ETF had a fantastic year for the same fundamental reasons as the ATOM ETF. These funds are very similar in nature. URNM holds a similar portfolio to ATOM and many of the same stocks, which also include Cameco Corp and our own Paladin Energy Ltd (ASX: PDN).

URNM units went from being priced at $6.05 each at the end of FY23 to finishing up FY24 at $9.49. That’s a gain worth around 56.9%. Again, we had some small dividend contributions from this ETF as well, which pushed the fund’s total returns to just over 57%.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Our final ASX ETF for the day, and the best-performing fund on the market over FY24, is none other than this cryptocurrency-focused fund from Betashares. As its name implies, this ASX ETF invests in a portfolio of global companies that are all big players in the provisioning, mining, and trading of cryptocurrencies like Bitcoin (CRYPTO: BTC).

Some of the shares you’ll find within the Betasahres Crypto Innovators ETF include Marathon Digital Holdings, Cleanspark, and Coinbase.

CRYP units had a jaw-dropping FY24, no way around it. They started the financial year at $3.15 each but finished it up going for $5.30. That’s a whopping gain of 68.25%.

The post The 5 best ASX ETFs of FY24 revealed! appeared first on The Motley Fool Australia.

More reading

• Here’s the outlook for 3 ASX artificial intelligence (AI) shares in FY25
• Top ASX shares to buy in July 2024
• 4 of the best ASX ETFs to buy in July
• Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI)
• 1 top ASX ETF to buy now as the global uranium race heats up

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Bitcoin, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Cameco. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Betashares Global Uranium Etf, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher
• Inflows: Magellan shares spike 7% as institutions pile in
• Santos share price smashing the benchmark amid new takeover rumours
• 2 ASX gold shares going gangbusters (and one crashing 11%!)
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 Scott Phillips.

ASX 200 bank shares have had an incredible run since November, with stock prices reaching multi-year highs for all of them except the Bank of Queensland Ltd (ASX: BOQ) in recent months.

The chart below plots the upward trajectory of ASX 200 bank shares from 1 November to date.

Goldman Sachs reckons ASX 200 bank shares are the most expensive bank stocks in the world. The broker says valuations are “skewed to the downside” from here.

Another top broker, UBS, says its clients also view bank shares as “very expensive”. However, they see few reasons why the stocks would be fundamentally derated any time soon.

Let’s investigate further.

They’re expensive, but why would they fall?

In The Australian, UBS analyst John Storey discussed 60 one-on-one meetings that the broker recently held with clients.

He said a lot of investors were keen to understand why the ASX 200 bank shares had outperformed.

Some clients quizzed the broker about whether the banking sector is “becoming utility-like as the operating and business models become more commoditized”.

Storey said:

The sector’s relative outperformance, within the context of light investor positioning, has clients asking why, and more importantly, what should they be doing from here.

UBS has a sell rating on all ASX 200 bank shares except Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Macquarie Group Ltd (ASX: MQG).

Storey said bank valuations relative to GDP are currently near their longer-term averages of 21%. The most recent trough was 15% in 2020, and the most recent peak was 25% in 2013.

So in this context, the bank stocks aren’t too overrated.

He added:

However, compared to countries like, Sweden, Spain and Canada, the Aussie banks don’t appear overly expensive, albeit earnings have held up better in these markets.

Goldman has a ‘negative view’ of ASX 200 bank shares

Goldman Sachs recently said the banks’ valuations had grown “despite weaker relative profitability”.

The broker said: “We recently took a more negative view on Australian banks, reflecting absolute and domestic relative valuations being heavily skewed to the downside.”

The biggest Australian bank, Commonwealth Bank of Australia (ASX: CBA), reset its record price again last week at $128.25 per share.

Goldman says CBA shares “are in uncharted valuation territory” based on the premium they usually trade for relative to their return on equity (ROE) forecast.

The broker has a sell rating on CBA and a 12-month share price target of $82.61. This implies a near-35% fall from today’s price of $126.88.

Asset Management portfolio manager Dominic Mlcek questions the “lofty valuations” of ASX 200 bank shares today.

“Given the lack of growth outlook in our view, we’re maintaining an underweight exposure towards the big four,” Mlcek said.

The post ASX 200 bank shares ‘don’t appear overly expensive’ compared to global peers: UBS appeared first on The Motley Fool Australia.

More reading

• Own NAB shares? Here’s how much you’re about to get paid in dividends
• ANZ shares smashed the ASX 200 return in FY24
• Own NAB shares? You just got a 44% return in FY24
• Bendigo Bank shares fall on surprise CEO exit
• What is the outlook for ASX 200 dividend shares in FY25?

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors and lovers of the Telstra Group Ltd (ASX: TLS) share price, the past 12 months have been tough to watch.

This time last year, this ASX 200 telco was riding high, trading at around $4.36 a share, just a whicker off of Telstra’s current 52-week high of $4.38.

What a difference 12 months makes. Today, those same Telstra shares are trading at $3.66 each. That’s down by almost 16.3% from the pricing Telstra was commanding a year ago.

Yesterday, we also covered how Telstra cemented a share price loss of 15.8% for the 2024 financial year. To be fair, that capital loss was somewhat assuaged by Telstra’s generous dividend payments. But even so, it was a rough FY24 for this ASX 200 telco.

At least the Telstra share price has recovered somewhat (to the tune of around 7%) from the 52-week low of $3.39 that we saw the company hit back in May.

But even so, even the most bullish of Telstra bulls can’t argue that the past 12 months have been nothing but exceptionally tough to watch.

It seems this negativity all stems from Telstra’s decision last year to halt plans to offload some of its most valuable infrastructure assets, including its ‘InfraCo Fixed’ division.

When this decision was announced last year, Telstra shares plunged, and have stuck to a downward trajectory ever since.

But some ASX experts reckon this 16% loss over the past 12 months represents a compelling buying opportunity for investors today.

ASX experts: Buy the Telstra share price today for 20% upside

Last week, we covered the views of ASX broker UBS on the Telstra share price. As we went through at the time, UBS reiterated a ‘buy’ rating on Telstra shares. That was alongside a 12-month share price target of $4.40. If realised, this would see investors enjoy a gain of just over 20% from the current pricing.

UBS pointed to the results of a recent customer survey for its optimism. The broker noted that the survey found Telstra continues to enjoy the perception of having the highest “network quality” on the market while also offering “value for money”.

As such, UBS concluded that the company’s mobile pricing power is “likely intact” and gives Telstra the flexibility to raise its prices.

But UBS isn’t the only one eyeing off Telstra shares at their current valuation.

Last week, we also took stock of the views of another ASX broker in Goldman Sachs. Goldman also gave Telstra shares a ‘buy’ rating, along with a share price target of $4.25.

This broker likes Telstra’s “low risk earnings” and dividend growth potential. It is currently forecasting that the telco will be able to afford 18 cents per share in dividends for FY2024, rising to 18.5 cents per share for FY25.

If Goldman is on the money here, that will give Telstra shares forward dividend yields of 4.92% and 5.05%, respectively.

So it seems that these two ASX brokers are united in their view that Telstra shares can rise meaningfully from their current pricing. But we’ll have to wait and see what the next 12 months hold in store for this telco. No doubt investors will be hoping there is a major improvement over the past 12 months.

The post Down 16% over 12 months, the Telstra share price could explode 20% from here! appeared first on The Motley Fool Australia.

More reading

• 3 top ASX retirement shares to buy for FY25
• How come the Telstra share price crashed 16% in FY 2024?
• What is the outlook for ASX 200 dividend shares in FY25?
• 3 ASX dividend shares to buy with 5%+ yields
• Do Telstra shares have a strong outlook for FY25?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have penchant for ASX growth shares then you will be pleased to know that analysts are predicting good returns from the five listed below.

Here’s what you need to know about these top shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be a great pick is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with operations covering poker machines, real money gaming, and mobile games.

UBS is very positive on the company and has a buy rating and $56.00 price target on its shares. This implies potential upside of 11% for investors from current levels.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that has been tipped as a buy is Lovisa. It is a fashion jewellery retailer that is currently embarking on a major global expansion.

Bell Potter is a big fan of the company thanks largely to this expansion. It believes Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034, supporting very strong earnings growth.

The broker has a buy rating and $36.00 price target on Lovisa’s shares. This suggests that its shares could rise 17% over the next 12 months.

NextDC Ltd (ASX: NXT)

Over at Morgan Stanley, its analysts think that NextDC could be an ASX growth share to buy. It is one of Asia’s most innovative data centre-as-a-service providers.

The broker believes that the data centre market will grow materially over the remainder of the decade and that NextDC stands to benefit greatly.

It has an overweight rating and $20.00 price target on its shares, which implies potential upside of 12% for investors.

Webjet Limited (ASX: WEB)

The team at Morgans is bullish on online travel agent Webjet.

The broker is feeling very bullish on its outlook thanks to the dominant WebBeds B2B business. It highlights that there is “significant market share still up for grabs.” This appears to position the company well for the future.

Morgans has an add rating and price target of $11.20 on Webjet’s shares. This suggests that they could rise 23% from current levels.

Xero Limited (ASX: XRO)

A final ASX growth share to look at in July is Xero. It is a cloud accounting platform provider with over 4 million subscribers.

Goldman Sachs highlights that this is just a fraction of its estimated total addressable market of 100 million small to medium sized businesses. In light of this, the broker feels that Xero has a significant growth runway and feels it is “very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds.”

It has a buy rating and $164.00 price target on Xero’s shares. This implies potential upside of 22% for investors.

The post 5 top ASX growth shares that could rise ~10% to 25% appeared first on The Motley Fool Australia.

More reading

• These ASX shares could rise 15% to 35%
• 9 ASX All Ords shares lifted to ‘strong buy’ consensus ratings in June
• Why Lovisa, Mayne Pharma, Pilbara Minerals, and RPMGlobal shares are falling today
• Can ASX 200 tech shares produce another strong performance in FY25?
• Brokers just put buy ratings on these ASX 200 tech stocks

Motley Fool contributor James Mickleboro has positions in Lovisa, Nextdc, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Despite controversial murmurs of company-led spying, the Fortescue Ltd (ASX: FMG) share price is moving with a spring in its step today.

In afternoon trade, the iron ore miner’s shares are up 3.5% to $22.70. However, the exuberance is not isolated to the mining company Andrew Forrest founded in 2003. As this is being written, materials are leading the Australian share market, climbing 2.26%.

Yet, today’s rally is somewhat shrouded in contention as details of an investigation emerge.

Money spent on spies

In June, Fortescue launched legal action against Element Zero, a green metal startup started by former Fortescue employees Michael Masterman, Bart Kolodziejczyk, and Bjorn Winther-Jensen.

The case alleges that the ex-employees smuggled green iron intellectual property out of Fortescue and applied it at Element Zero, committing “industrial-scale misuse.” As such, Masterman and Kolodziejczyk have been the targets of an investigation to substantiate these allegations.

According to newly released court documents, Fortescue hired private investigators to ‘spy’ on its former employees (Masterman and Kolodziejczyk) and their families to obtain information needed to issue search warrants.

Fortescue hired the investigators, who followed the two executives, locating and photographing their homes, wives, and children.

The court documents show surveillance at Kolodziejczyk’s family home continuing after the Element Zero co-founder departed from the Melbourne airport, with the investigator’s notes reading:

In the meantime, surveillance continues at the Hadfield, Victoria residence, where Dr Kolodziejczyk’s wife and child are permanently residing.

Following the surveillance, both former employees were subjected to raids on their homes. The Element Zero co-founders were required to relinquish passwords to their devices — including those of their family members — for copies of their data to be taken.

Both men completely reject the claims made by Fortescue.

Iron ore reignites Fortescue shares

Fortescue investors seem to be more focused on the price of iron ore, with shares rallying today.

Following a rough month in June for the steel-making commodity and Fortescue shares, prices have been on the uptick this month. Iron ore is fetching around US$110 per tonne, rising nearly 4% from late June.

The revitalisation arrives amid stimulus measures announced by Beijing to support its struggling property sector. As part of the measures, people in China will see mortgage interest rates and the minimum down payment reduced.

Fortescue shares are closely linked to China’s property market. In 2022, approximately 88% of the company’s revenue was derived from the People’s Republic.

The post Fortescue shares red-hot as court reveals company espionage appeared first on The Motley Fool Australia.

More reading

• What is the outlook for ASX 200 dividend shares in FY25?
• Is the Fortescue share price too low to ignore?
• 3 ASX 200 mining shares just downgraded by top brokers
• Are Fortescue shares a contrarian buy after falling 20% in a month?
• Is the FY25 outlook for Fortescue shares compelling?

Motley Fool contributor Mitchell Lawler 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 Scott Phillips.

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

Shares of both Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) have struggled this year. Since 2024 began, Tesla stock has fallen 8% in value. Rivian shares, meanwhile, are down by roughly 25%.

What has gone wrong? Could this be a rare buying opportunity?

2 trends you should know about

There are a few statistics EV investors must be aware of. The first is that the EV market continues to grow, even if growth rates move around quite a bit. Last year, for instance, EV sales in the U.S. jumped 60%, from 1 million in 2022 to 1.6 million in 2023. To put all this into perspective, in 2016, only 200,000 EVs were sold in the U.S. — eight times fewer than the number sold annually today.

To be sure, gasoline vehicles continue to dominate, commanding around 75% of total U.S. vehicle sales. But so far in 2024, EV sales continue to climb. Why then, you might ask, are the share prices of EV makers like Tesla and Rivian down so much this year? The problem isn’t growth — it’s expectations.

According to S&P Global, despite “clear demand for EVs in the U.S., the rate of EV growth was slower than some automakers had anticipated.” This has caused many auto manufacturers to delay their EV introduction timelines by 12 to 18 months. “Slowing the development of vehicles and production capacity in 2024 and 2025 can reduce risk of having more inventory than the market wants, while being ready for presumed developing demand the last years of this decade,” S&P Global observes.

These two trends are the most important factors in the EV market today. Yes, sales are growing, and will continue to do so likely for another decade or more. But short-term sales growth has lagged expectations, causing EV manufacturers to reduce investment and new model timelines. It is this reset in expectations that has weighed heavily on EV stocks this year.

Is this a buying opportunity for Rivian and Tesla stock?

Despite subdued EV demand growth this year, expect continued new product launches, including an entry-level Cadillac EV and Volvo’s EX30 SUV. These product launches — most of which were given the green light when EV demand growth was soaring — will continue to add pricing and inventory pressure on existing manufacturers. “The increased model count will have a negative impact on volume per model in most cases, which will affect profit margin for the lower-volume vehicles,” advises S&P Global. “It also increases costs, as marketing, sales and service are more expensive when those costs are spread across more models.”

What will ultimately drive EV demand growth higher isn’t necessarily more models, but more affordable models. “EV demand growth has slowed sharply in 2024, likely due in part to affordability,” explains a recent report from Bank of America. The bank doesn’t forecast enough affordable EVs hitting the market to drive growth higher until 2027.

How should you be investing in light of this bleak multi-year forecast? The biggest factor is simply to have patience. EV growth is still healthily in the double digits. The U.S. charging network, meanwhile, continues to grow by leaps and bounds. Recent research from The Motley Fool shows that Tesla’s supercharger network, for example, now covers huge swaths of all 50 states. And due to technological advancements, prices continue to get closer and closer to mass adoption levels. By 2030, Bank of America expects nearly one-third of all U.S. vehicle sales to be electric.

If you’re willing to wait through the pain, now might be a great time to capitalize on some rare EV stock bargains. Over the past 12 months, the price-to-sales ratios for Tesla has fallen by roughly 30%. Rivian’s multiple, meanwhile, has been cut in half. Patient investors may be able to secure bargain prices until the adoption curve picks back up in 2026 and 2027.

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

The post 2 EV trends Tesla and Rivian investors should understand now appeared first on The Motley Fool Australia.

More reading

• Why Tesla shares kept rallying today
• Why Tesla stock continued to surge higher today
• Why Tesla stock popped ahead of second-quarter deliveries
• Is Tesla the best EV stock for you?
• Why Tesla stock jumped today

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and Tesla. 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 Scott Phillips.

Women talk. But are we talking about the right things? Growing up in the 80s (I’m showing my age) my family didn’t talk about finance, budgets or mortgages – I wish we had. 

I finished school with no responsibilities. I had no outgoings except for the $25 a week my parents asked me to pay as “board” (I remember thinking at the time it was daylight robbery!).

I remember my first “big” paycheque – I spent it all on one outfit and told mum and dad I would pay them the following week. I was young (but old enough to know better). As I said, I had no responsibilities… no debt, but no savings. That pattern continued for quite some time. And then I moved out of home and across the country with a one-way ticket. I had to find a job, a place to live and work out how I was going to survive. And although the safety net was gone it was the best thing that happened to me.

I maxed out a credit card… and had to work two jobs to pay it off.

Then I did it again!

And then… I got rid of it.

I started trying to put away the extra money I had been using to pay the debt. I didn’t want to get into a situation where something would happen, and I didn’t have the funds to deal with it because I knew that I would look for a credit card…again.

I was reminded of all this earlier today when I met a friend for our morning run. Neither of us had much energy and we ended up walking (and talking). We were talking about how our boys were both living week to week and have so little care for tomorrow. It’s a point of frustration in my house, especially because I’ve been there…

I don’t have all the answers – I really wish I did. But we have the conversations – we talk about debt, we talk about saving, we talk about a lot of things really…

But here’s something they (and you!) can do, today – and it’s quite simple really.

They need to start thinking about putting aside some funds for a rainy day (the car will break down; the washing machine will stop working – both of which happened to me in the past three years – and don’t get me started on the dental bill from when the then-13 year old’s front teeth collided with a snooker ball).

As we all know, sometimes life can take an unexpected path… and I hope they are prepared for if (when) that happens.

Of course, 18 year old me probably wouldn’t have listened if my parents tried to warn me of the dangers of credit cards. Which is why I have those conversations with my boys. They will make their mistakes but I hope they can learn from mine…

As for saving for a rainy day, I wish I’d started early, but I started.  And, I’m glad I did because it was the first step in my journey to financial freedom… believe me, I’m not there… not even close if I’m being honest, but I’m on the way.

That journey to financial freedom is a life-long one (I can’t stress this enough!) and it would be impossible to give you all the tools in one email because there is a lot to learn.

But I’m hopeful that, over time, I can help. 

Fool on!

The post When $25 for board was daylight robbery appeared first on The Motley Fool Australia.

More reading

• 2 EV trends Tesla and Rivian investors should understand now
• Why is the New Hope share price plunging today?
• Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher
• Inflows: Magellan shares spike 7% as institutions pile in
• Why Dimerix, New Hope, Pro Medicus, and West African Resources shares are sinking today

Motley Fool contributor Erin Bouwmeester 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 Scott Phillips.

The New Hope Corp Ltd (ASX: NHC) share price is taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal miner closed yesterday trading for $5.26. In early afternoon trade on Thursday, shares are swapping hands for $5.04 apiece, down 4.2%.

For some context, the ASX 200 is up 0.98% at this same time.

Here’s why the New Hope share price looks to be catching headwinds today.

What’s sinking the New Hope share price?

This morning, New Hope announced it has successfully priced $300 million of 4.25% senior unsecured convertible notes. After transaction fees, the company foresees net proceeds of just over $293 million.

The miner expects settlement of the notes next Friday, 12 July. The notes will then mature on 12 July 2029 unless redeemed earlier, repurchased or converted in accordance with the terms and conditions.

As the name suggests, the notes are convertible into New Hope shares. New Hope also has the option to settle them for cash. The initial conversion price of the notes is $6.63 a share. That’s more than 30% above the current New Hope share price.

So, why is the ASX 200 coal stock under pressure today?

Well, it’s likely got to do with some derivative transactions.

According to the release:

In connection with the issuance and pricing of the Notes, New Hope intends to purchase certain privately negotiated cash-settled call options (Capped Call Transactions) from one or more financial institutions…

In connection with the Capped Call Transactions, the Capped Call Counterparties are expected to enter into various derivative transactions involving Ordinary Shares at their discretion, which could affect the market price of Ordinary Shares or the Notes otherwise prevailing at that time.

What did management say?

While the New Hope share price is taking a fall today, the $293 million in new funds should support the miner’s longer-term operations and growth plans.

Commenting on the fresh funds, New Hope CEO Rob Bishop said:

The capital provided by this global investor base at favourable terms will be instrumental to our pursuit of initiatives that are consistent with our strategy to maximise shareholder returns.

New Hope CFO Rebecca Rinaldi added, “This transaction represents another important milestone for New Hope in cementing a resilient and flexible balance sheet.”

With today’s intraday losses factored in, the New Hope share price remains up just over 3% in a year.

Shares in the ASX 200 miner also trade on a fully franked trailing dividend yield of 7.5%.

The post Why is the New Hope share price plunging today? appeared first on The Motley Fool Australia.

More reading

• Why Dimerix, New Hope, Pro Medicus, and West African Resources shares are sinking today
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 coal shares smashing the market today?
• Which ASX dividend shares are predicted to have the highest yields in FY25?

Motley Fool contributor Bernd Struben 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 Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is on form again and having a strong session on Thursday. In afternoon trade, the benchmark index is up a solid 1% to 7,816.4 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are pushing higher:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 6.5% to 19.2 cents. This has been driven by news that the rare earths developer has secured funding from the German government. It revealed that the government has issued conditional approval for up to US$115 million (AU$173 million) in Untied Loan Guarantees from Euler Hermes. The funds would support debt financing for Arafura’s rare earths Nolans Project and will secure neodymium and praseodymium (NdPr) supplies for German-based companies.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 6% to $9.09. Investors have been buying this fund manager’s shares following the release of its monthly update. In June, Magellan revealed that net flows were flat. This comprised net retail outflows of $0.2 billion and net institutional inflows of $0.2 billion. It also revealed that it will be entitled to estimated performance fees of approximately $19 million for the year ended 30 June 2024.

Metro Mining Ltd (ASX: MMI)

The Metro Mining share price is up 6% to 5.4 cents. This follows the release of a trading update from the bauxite producer. Management advised that it has established a new second quarter shipment record of 1.42 million wet metric tonnes. This is up 12% year on year. This is despite the quarter being classed as the “commissioning quarter” for the new 7 million wet metric tonnes per annum expansion project.

Santos Ltd (ASX: STO)

The Santos share price is up 5% to $8.04. This has been driven by reports that the energy producer could be a takeover target again. According to Bloomberg, both Saudi Aramco and the Abu Dhabi National Oil Co are considering takeover bids for Santos. Bloomberg notes that these energy companies were looking to increase their international gas exposure. The media outlet’s sources also suggested that “other potential buyers” could be interested in acquiring the ASX 200 energy giant. However, at present, there has been no comment from Santos, Abu Dhabi National Oil Co, nor Saudi Aramco. Last year, Woodside Energy Group Ltd (ASX: WDS) failed in its attempt to acquire its rival.

The post Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Inflows: Magellan shares spike 7% as institutions pile in
• Santos share price smashing the benchmark amid new takeover rumours
• Why did the Arafura share price just leap more than 11%?
• Are Woodside shares a better buy than rival Santos?
• Why Arafura Rare Earths, Ora Banda, Superloop, and Whitehaven Coal shares are rising today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 Scott Phillips.