Tag: Motley Fool

Lake Resources (ASX: LKE) shares have had a year to forget.

And shareholder woes are continuing today.

Shares in lithium stock closed Friday trading for 13.5 cents. In morning trade on Monday, shares are changing hands for 12.7 cents apiece, down 5.9%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.1% at this same time.

As you can see on the chart above, this puts Lake Resources shares down a painful 80% since this time last year.

The accompanying big fall in the clean lithium developer’s market cap will see the stock removed from the S&P/ASX 300 Index (ASX: XKO), as of 18 March.

That comes as part of the S&P Dow Jones Indices March quarterly review. And it could throw up some medium-term headwinds, as some fund managers restricted to investing in the larger end of the market may no longer be able to hold the stock.

Today the clean lithium developer released an update on its cost cutting program and the search for a strategic partner.

Cost reductions fail to lift Lake Resources shares

In an update that’s failing to lift Lake Resources shares on Monday, the company announced a new round of cost cutting measures.

Lake Resources said it will slash its global workforce by roughly half across its non-core operational and administrative workers. The company will also seek to streamline other general expenditures.

Management said the aim is to reduce expenses by another 30% in the quarter ending 30 June compared to the quarter ending 31 March.

CEO David Dickson remained upbeat about the longer-term prospects of the company’s Kachi project, located in Argentina.

“Despite the current backdrop of depressed short-term lithium pricing, we remain very enthusiastic about the Kachi Project, and its potential to deliver long-term value,” he said.

Dickson added:

We are committed to taking all necessary actions to preserve our financial flexibility while we execute a thorough and prudent strategic partner selection process that results in the best outcome for Lake and its shareholders.

We are focused on delivering the Kachi Project in 2028, which is forecast to align with the start of a prolonged period of structural deficit for battery-grade lithium chemicals.

Lake Resources shares could get a boost down the track if the company is successful in its hunt for a strategic partner at the Kachi Project.

With Goldman Sachs acting as its financial advisor, the company said it is now actively conducting outreach to a wide array of potential strategic partners as it progresses the initial phase of the selection process.

The post Down 80% in a year why are Lake Resources shares tumbling again today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 7%: What’s gone so wrong for Lake Resources shares today?

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.

from The Motley Fool Australia https://ift.tt/ZS1UID6

If you’re looking to get hold of the next BHP Group Ltd (ASX: BHP) dividend, then you will need to act fast.

That’s because it won’t be long until the Big Australian’s shares trade ex-dividend.

When this happens, the rights to the payout are settled and if you’re not on its share register, you won’t be receiving a paycheck.

The BHP dividend

Last month, BHP released its half-year results and reported a 6% increase in revenue to US$27.2 billion but an 86% decline in profit after tax to US$927 million.

The latter was impacted by one-off exceptional items relating to its Western Australia Nickel operation and the Samarco dam failure. If you remove these from the equation, then BHP’s earnings would have been flat at US$6.6 billion for the half.

This allowed the BHP board to declare a fully franked interim dividend of 72 US cents per share (A$1.10 per share) for the period.

While this is down 20% year on year, it still represents a total return of US$3.6 billion and equates to a payout ratio of 56%. It was also slightly ahead of the market’s expectations.

Ex-dividend date

In order to receive this dividend when it is paid, you will need to be on BHP’s share register before the ex-dividend date of Thursday 7 March.

This effectively means that you need to own its shares at the market close on Wednesday.

If you are on the company’s share register and eligible to receive the BHP dividend, you can look forward to pay day later this month on 28 March.

In addition, if you’re planning to stick around, you can expect to receive a 73 US cents per share final dividend from BHP later this year according to Goldman Sachs. This will bring the total to US$1.45 (A$2.22) per share for FY 2024, which equates to a 5% yield.

Goldman has a buy rating and $49.40 price target on BHP’s shares.

The post Want the next BHP dividend? You don’t have long to act appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 6 ASX shares to buy and hold until the next leap year
• 34 ASX 200 shares with ex-dividend dates next week
• Own BHP shares? Guess which star CEO just joined your board
• One ASX mining sector at risk of more pain, and one ready to soar!
• How global job cuts could boost the BHP share price

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 positions in and has recommended Goldman Sachs Group. 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.

from The Motley Fool Australia https://ift.tt/pIrVz8q

Calix Ltd (ASX: CXL) shares are heading in the right direction on Monday.

In morning trade, the ASX tech stock is up 15% to $2.04.

Why is this ASX tech stock jumping?

Investors have been buying the environmental technology company’s shares this morning after it released an update on its Leilac-2 (Low Emissions Intensity Lime And Cement) project.

Readers may be aware that Calix shares were sold off in January after it announced that the Leilac-2 project would have to find a new home after Heidelberg Materials decided to end clinker production at its Hanover cement plant.

According to today’s update, Leilac-2 has a new home and will now be constructed at Heidelberg Materials’ cement plant in Ennigerloh, Germany.

The release notes that the Leilac-2 project aims to demonstrate a replicable module that can efficiently capture up to 100,000 tonnes per year of unavoidable process carbon dioxide emissions released during cement and lime production.

The retrofittable module is designed to be integrated into an operational cement plant with minimal downtime and operate on a range of fuels.

Looking on the bright side

While changing locations is not ideal, management believes that the successful relocation of Leilac-2 demonstrates the robust and transferrable nature of its technology and its ability to be rapidly applied at other operational cement plants.

It also highlights that the Ennigerloh site assessment found that the Leilac-2 design developed for the Hanover plant could be installed at the operational Ennigerloh plant with minimal delay and cost.

Furthermore, the required additional engineering work is expected to be limited to site-specific permitting and integration and no increase in total project capital cost is expected. Construction is anticipated to commence promptly following permitting.

Management commentary

The ASX tech stock’s CEO, Daniel Rennie, was pleased with the news. He said:

The Leilac technology represents a scalable and economical solution to address the carbon dioxide emissions that are produced unavoidably by the cement and lime industries, and the rapid demonstration of such solutions is essential to achieving our industrial decarbonisation goals.

The swift and successful selection of Ennigerloh as the new Leilac-2 host plant is the result of the proactive, positive, and committed approach by Heidelberg Materials, the European Commission, and our partners, and the dedication of an exceptional collective project team. We look forward to continuing to work with all our partners to rapidly deploy efficient decarbonisation solutions at Ennigerloh and cement and lime plants around the world.

Despite today’s gain, Calix shares are still down 60% over the last 12 months.

The post Guess which ASX tech stock is jumping 15% today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Ampol, Calix, Collins Foods, and Propel shares are tumbling today
• Why Audinate, Beach Energy, Calix, and JB Hi-Fi shares are charging higher

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/6e7ZdxT

With records meant to be broken, the S&P/ASX 200 Index (ASX: XJO) is certainly doing its part lately.

On Friday, the benchmark Aussie index closed the day up 0.6% at 7,745.6 points. That marked both the highest closing price ever and the highest intraday level ever.

Today, the ASX 200 just edged past that record to set a new one.

In morning trade on Monday, the index of the top 200 listed companies hit 7,754.7 points.

Regardless of what happens in the remainder of the trading day, this marks a new intraday all-time high at time of writing. And if bullish sentiment persists, as I believe is likely, then we should see another record close for the ASX 200 today as well.

Here’s what’s driving investors to hit the buy button.

Why is the ASX 200 setting fresh records again today?

Momentum in on the bulls’ side here as fewer investors are selling and more are looking to buy to get in on the historically strong stock market performance.

Today’s new record on the ASX 200 follows the ongoing strength in US markets.

On Friday, both the S&P 500 Index (INDEXSP: .INX) and the tech-laden Nasdaq Composite Index (INDEXNASDAQ: .IXIC) closed at their own new all-time highs.

There are two significant tailwinds buoying investor spirits.

First is the prospect of normalising inflation and an accompanying easing in interest rates ahead. Both would bode well for equities.

Neither the US Federal Reserve nor the Reserve Bank of Australia has committed to any firm dates to cut interest rates yet. But inflation is easing in both countries.

And in the US, the world’s biggest economy, a dip in February’s manufacturing index bolstered the case for the Fed to begin easing sooner rather than later.

The second phenomenon helping lift US stock markets and the ASX 200 is the growing belief that fast-evolving artificial intelligence (AI) technology could put a rocket under global productivity and growth.

While some analysts are cautioning about a potential AI bubble forming, that hasn’t held the likes of NVIDIA Corporation (NASDAQ: NVDA) back.

Shares in the AI hardware and software developer closed up another 4% on Friday. That brings the 12-month gains to 249% and gives the tech giant a market cap of US$2.1 trillion (AU$3.2 trillion).

The post The ASX 200 just hit another new record high on Monday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX tech stock is jumping 15% today
• The pros and cons of buying the Global X Fang+ ETF (FANG) right now
• Genex share price jumps 38% on $381 million takeover bid
• Where I’d invest $5,000 into ASX small-cap shares aiming for big growth
• The CEO of this ASX stock just sold $127m worth of shares

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.

from The Motley Fool Australia https://ift.tt/bGWcirq

The Global X Fang+ ETF (ASX: FANG) has been one of the best-performing exchange-traded funds (ETFs) on the ASX over the past year. It’s not far off doubling in value, as we can see on the chart below.

This fund gives significant exposure to large US technology businesses, including Nvidia, Meta Platforms, Netflix, Broadcom, Amazon.com, Microsoft, Alphabet, Snowflake, Apple and Tesla.

Let’s consider the positives and negatives of buying units of the FANG ETF right now.

The positives

This ETF gives investors a concentrated exposure to some of the world’s strongest businesses. The smallest allocation is just over 7% to electric vehicle pioneer Tesla, while its largest position is AI market leader Nvidia, with a 14% weighting.

These businesses have performed very well for investors as they invent and develop new technologies and services. When companies are driving national (or global) change, I think they’re more likely to be able to generate profit growth and drive shareholder returns.

Over the three years to 29 February 2024, the FANG ETF delivered an average return per annum of 19%. Of course, past performance is not necessarily a reliable indicator of future returns.

I think it has a very reasonable management fee of 0.35%, which is cheaper than the 0.48% annual fee charged by Betashares Nasdaq 100 ETF (ASX: NDQ).

Aussies don’t have the option of many large technology businesses on the ASX, so this investment could be a good way of gaining that allocation.

And negatives

If investors are picking this investment for diversification, it doesn’t offer a lot – the FANG ETF only owns 10 names, and they’re all tech businesses or tech-related.

While its share price has lifted significantly in recent times, a sell-off could hit the valuations harder than the overall market. Tech stocks can be very volatile, like we saw in 2022.

According to its provider Global X, the FANG ETF had a price/earnings (P/E) ratio of around 46 on 31 January 2024. That seems high compared to other investments. The price-to-book ratio was 11.7x at the end of January 2024.

Foolish takeaway

There’s a danger of overpaying for the businesses in this portfolio, particularly in the short term. But, I think the long-term looks very promising. I’d call it a long-term buy, but the short-term could be volatile and uncertain.

The post The pros and cons of buying the Global X Fang+ ETF (FANG) right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How to invest in the magnificent seven stocks on the ASX

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/IgJWStu

The Genex Power Ltd (ASX: GNX) share price is starting the week very strongly.

In morning trade, the renewable energy company’s shares are up 38% to a 52-week high of 25.5 cents.

Why is the Genex share price surging?

Investors have been scrambling to buy the company’s shares today after it received a takeover offer.

According to the release, Genex has received a non-binding, indicative, and conditional proposal from Electric Power Development (J-POWER).

The Japanese utility company has offered to acquire all of the ordinary shares on issue in Genex that it does not already own for 27.5 cents in cash per share by way of a scheme of arrangement. This represents a 48.6% premium to where the Genex share price ended last week.

This follows a previously undisclosed offer last month of 24 cents per share that was rejected by the company’s board on the belief that it “undervalued Genex in the context of a change of control transaction.”

In addition, the indicative proposal contains an alternative structure that will see J-POWER potentially make an off-market takeover bid for all Genex shares for 27 cents in cash per share.

If made, the potential takeover offer would be conditional on the potential scheme not being approved by the holders of Genex shares the scheme meeting and the fulfilment of the 50.1% minimum acceptance condition.

What now?

As things stand, the company’s board has entered into a confidentiality and exclusivity deed with J-POWER and has provided it with access to a virtual data room for the purpose of facilitating due diligence.

It also advised that it would be willing to accept this current offer if it became binding.

However, it notes that Genex shareholders do not need to take any action in relation to the proposals. It also warned that there is no certainty that the provision of the due diligence access to J-POWER will result in a binding proposal.

The company intends to keep shareholders informed in accordance with its continuous disclosure obligations.

The post Genex share price jumps 38% on $381 million takeover bid appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Where I’d invest $5,000 into ASX small-cap shares aiming for big growth
• The CEO of this ASX stock just sold $127m worth of shares
• 2 cheap ASX dividend shares I’d snap up in a heartbeat!
• Why Life360 shares can keep rocketing
• If I were 60 I’d buy these ASX shares for dividends

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/UZX5THp

ASX small-cap shares can be some of the most exciting stocks to be invested in. If I had $5,000 to invest in small businesses with big potential, I know which two I’d want to own.

Finding promising companies that are early on with their growth journeys can lead to big returns.

If a $1 billion company grows to $2 billion, that’s doubling in size. If a $200 million business becomes $2 billion, that’s growing 10x in size. Investing in small-caps can be a higher risk as no business is guaranteed to grow, but I really like the prospects of the two names below.

Airtasker Ltd (ASX: ART)

Airtasker describes itself as “Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want work”.

The company offers countless task categories, including home cleaning, furniture assembly, deliveries, removalists, handyman work, gardening, pet care and so on.

The Airtasker platform is growing in popularity over time, and that’s great because it has a high gross profit margin. Increased revenue is rapidly translating into profitability, despite the company’s heavy investment in growth.

In the FY24 first-half result, the Airtasker marketplace revenue grew by 10.3% to $18.9 million, while group revenue increased 6.8% to $23.3 million. I think that’s a good growth rate considering the difficult broader economic situation with the elevated cost of living.

The ASX small-cap share’s group earnings before interest, tax, depreciation and amortisation (EBITDA) rose $7.1 million to $2 million. Positive operating cash flow grew $7.6 million to $1.4 million, and positive free cash flow increased $4.7 million to $0.1 million.

Reaching positive profit numbers is a real milestone for a company like Airtasker, in my opinion. If revenue keeps growing at a good rate, then I think (underlying) profit can soar.

In June 2023, the business formed a media-for-equity partnership with Channel 4 in the United Kingdom. In HY24, UK-posted tasks increased by more than 30%, which bodes well for the future. The United states saw revenue increase by 132.4% to US$57,000, where it’s still early on with its growth.

I believe this company has a very promising future.

Close The Loop Ltd (ASX: CLG)

This ASX small-cap share has locations in Australia, Europe, South Africa and the US. It says it creates “innovative products and packaging that includes recyclable and made-from-recycled content, as well as collect, sort, reclaim and reuse resources that would otherwise go to landfill.”

Close the Loop is involved in a number of areas of the ‘circular economy’ including “recovering a wide range of electronic products, print consumables and cosmetics, through to the reusing of toner and post-consumer soft plastics for an asphalt additive”.

I think this company is becoming increasingly well-positioned for a world focusing on a sustainable future as it builds its solutions across packaging and consumables to a variety of markets.

Despite its investing level, the company is seeing good profit growth. HY24 revenue rose 76% to $103 million, and the gross profit margin improved to 36.2% (up from 32.8%). EBITDA jumped 139% to $22.7 million, while underlying net profit after tax (NPAT) increased 164% to $13.25 million.

Close the Loop said it was on track to beat its FY24 guidance of $200 million and it upgraded its EBITDA guidance to between $44 million to $46 million.

With a goal of ‘zero waste to landfill, I think the company can expand in a number of different ways – it can grow its existing businesses as more people (and businesses) recycle, it can expand geographically, and it can enter into new areas of recycling.

The post Where I’d invest $5,000 into ASX small-cap shares aiming for big growth appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The CEO of this ASX stock just sold $127m worth of shares
• 2 cheap ASX dividend shares I’d snap up in a heartbeat!
• Why Life360 shares can keep rocketing
• If I were 60 I’d buy these ASX shares for dividends
• Guess which 4 shares are being dumped from the ASX 200 index

Motley Fool contributor Tristan Harrison has positions in Close The Loop. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Close The Loop. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has recommended Close The Loop. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ujkmNAs

Cettire Ltd (ASX: CTT) shares are starting the week deep in the red.

In morning trade, the ASX ecommerce stock is down 7.5% to $4.46.

Why is this ASX stock sinking?

Investors have been heading to the exits on Monday after the company confirmed that its founder and CEO, Dean Mintz, has sold down his stake.

Insider selling rarely goes down well with the market. The theory goes that if the insiders believed their shares were undervalued, then they would be holding onto them.

What did Mintz sell?

According to the release, the ASX stock’s founder and CEO agreed to sell down 27.5 million shares in the online luxury retailer. This represents a whopping ~7.2% of the company’s issued capital.

The sell down was undertaken at a price of $4.63 per share by way of an underwritten block trade, equating to a total consideration of approximately $127.3 million.

The sale price represents a modest 4.1% discount to where the Cettire share price last traded, which is quite a coup for the CEO given the size of the selling.

This could be a sign that demand for the ASX stock remains strong despite rising almost 200% over the last 12 months.

What’s left?

The release reveals that following this sale, Mintz will retain a ~30% shareholding in the company and remain Cettire’s largest shareholder.

As a result, it is fair to say that he still has plenty of skin in the game after this sale.

Commenting on the sell down, Mintz said:

Cettire continues to perform very strongly as demonstrated in the Company’s recent H1-FY24 Results. In response to strong investor demand, undertaking this share sale provides enhanced liquidity and free float, improving the likelihood of achieving further major index inclusion over time.

In addition, the CEO has agreed to escrow his remaining holding in Cettire until the release of the company’s full year results in August.

The post The CEO of this ASX stock just sold $127m worth of shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• If you’d put $20,000 in this ASX retail stock 19 months ago, you’d have $239,000 now
• Is buying investment property in regional areas like buying ASX small-cap shares?
• Why Bell Potter says these ASX small cap shares are buys
• Bell Potter says this rocketing small cap ASX share can keep climbing
• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today

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

from The Motley Fool Australia https://ift.tt/6RSrJAc

I love finding ASX dividend shares with big dividend yields. I think some businesses are undervalued, which means they could deliver good share price returns and pleasing passive income.

It’s a difficult retail landscape at the moment, with so many households facing inflation pressures. But, I don’t believe the economic environment forever will be tricky forever, meaning this could be the right time to look at beaten-up ideas.

If the share prices of the two cheap ASX dividend shares below have been oversold, the future dividend yields could be huge.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a number of “premium” youth fashion brands. Its businesses and brands include Universal Store, THRILLS, Worship and Perfect Stranger. The company currently operates 100 stores across Australia, and this number is steadily increasing.

The Universal Store share price is still 45% lower than it was in November 2021, which has boosted the dividend yield.

The company has grown its annual dividend each year since 2021, when it first started paying dividends.

In the FY24 first-half results, the company advised it grew its total sales by 8.5%, underlying earnings before interest and tax (EBIT) rose 8.1% to $30.8 million and statutory net profit after tax (NPAT) rose 16.7% to $20.7 million. It grew its interim dividend 17.8% to 16.5 cents per share.

I think the cheap ASX dividend share can keep boosting its store count, particularly the number of Perfect Stranger stores, to help grow profit over time.

According to the projection on Commsec, Universal Store could pay a grossed-up dividend yield of 7.7% in FY24 and 9.7% in FY26.

KMD Brands Ltd (ASX: KMD)

KMD Brands is another ASX retail share related to apparel. It has three brands – Kathmandu, Rip Curl and Oboz.

The KMD share price is down close to 70% from October 2021.

The company is seeing weak consumer sentiment, while the warmest winter on record in Australia has hurt Kathmandu sales. KMD expects to see signs of improvement in the second half of FY24, and in FY25.

The Rip Curl and Oboz brands have suffered from a sizeable reduction in wholesale sales as wholesale clients reduce inventory holdings. However, KMD Brands expects FY25 to have a positive outlook for the wholesale channel.

I think this company can bounce back in the medum-term – it’s working hard on improving sales, optimising its gross margin, controlling operating costs and reducing working capital. The very large fall of the KMD Brands share price gives us plenty of margin of safety, in my opinion, when we think about when the company might achieve in FY25 and FY26.

According to the projections on Commsec, the cheap ASX dividend share is valued at 10x FY25’s estimated earnings and 6x FY26’s estimated earnings.

With that profit generation, KMD Brands could pay a dividend yield of 7.4% in FY25 and 10.7% in FY26.

However, keep in mind that the FY24 dividend yield – the current financial year — could be minimal. It’s currently estimated at 4.9%, though I’d warn it could be less than that (or possibly even nothing), depending on what the board decide.

The post 2 cheap ASX dividend shares I’d snap up in a heartbeat! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX dividend stocks could be top buys in March
• Are these top ASX shares dirt cheap and must-buys right now?
• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today
• Here are 3 ASX retail shares moving up to 19% on half-year results today
• 3 Australian value stocks to buy right now

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/gmHu5pj

Life360 Inc (ASX: 360) shares were on fire on Friday.

The location technology company’s shares rocketed almost 40% following the release of its FY 2023 results.

For the 12 months ended 31 December, Life360 reported a 33% increase in revenue to US$305 million and adjusted EBITDA of US$20.6 million. The latter was well ahead of its guidance range of US$12 million to US$16 million.

The key driver of this growth was its core Life360 subscription revenue, which came in at US$200 million. This was up 52% year on year and ahead of guidance for a ~50% increase.

The good news is that management expects more of the same in FY 2024. It is guiding to revenue of US$365 million to US$$375 million and adjusted EBITDA of US$30 million to US$35 million.

The midpoint of Life360’s guidance range implies revenue growth of 21% and adjusted EBITDA growth of 58%.

Life360 shares tipped to keep rising

Pleasingly for shareholders, Goldman Sachs believes that this is just the beginning of greater gains.

In response to its results, the broker has reiterated its buy rating and lifted its price target by a third to $14.20. This implies 26% upside for Life360s shares from current levels.

Commenting on the result and plans to expand into advertising, it said:

Solid subscription growth outlook cycling material price increases. FY24 EBITDA guidance appears conservative, with significant earnings growth into FY24/25E. […] Given our long-held view that Life360’s subscription business remains undervalued, we view the potential advertising upside as effectively a “free” option.

The broker then concludes:

The company is now scaling margins and earnings rapidly off a low base, with attractive unit economics and potential structural profitability tailwinds on the horizon from a reduction in effective app store fees. Life360’s Subscription business currently trades at a discount to global subscription app peers when adjusting for its superior growth outlook. We see scope for re-rating as Life360 demonstrates operating leverage, ongoing subscription growth and user monetisation. We are Buy rated on Life360.

The post Why Life360 shares can keep rocketing appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Life360, Syrah, and Xero shares are jumping today
• Life360 share price rockets 24% after smashing FY23 earnings expectations

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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.

from The Motley Fool Australia https://ift.tt/TFE2DgO