Tag: Motley Fool

If you’re looking for an easy way to invest in international shares, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at this month? Here are two popular ETFs that could be quality options right now:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to consider in September is the BetaShares NASDAQ 100 ETF. As its name implies, this ETF aims to track the performance of the famous NASDAQ 100 index.

The NASDAQ 100 comprises 100 of the largest non-financial companies listed on the famous NASDAQ exchange. BetaShares notes that it includes many companies that are at the forefront of the new economy. This includes the likes of Amazon, Apple, Microsoft, Netflix, and Tesla, to name just five.

BetaShares also notes that with a strong focus on technology, the ETF provides investors with diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider this month is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard notes that this provides investors with low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the ETF’s largest holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

Another positive is that this ETF also offers investors a source of income. While it isn’t a huge yield, every bit helps in the current environment. At the last count, its units were providing investors with a 1.9% yield.

The post 2 of the best ETFs for ASX investors to buy in September appeared first on The Motley Fool Australia.

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More reading

• Why is the Betashares Nasdaq 100 ETF (NDQ) tumbling 4% on Monday?
• How does VGS stack up against other ASX index funds?
• 3 top ETFs for ASX investors to buy
• 2 wonderful ETFs to buy for portfolio diversification
• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?

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 BETANASDAQ ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The National Australia Bank Ltd (ASX: NAB) share price was an underperformer in August and came in with a 3 basis point decline for the month.

Before the open on Thursday, shares of the banking giant and member of the ‘big 4’ of banking in Australia rest at $30.59 apiece.

What’s up with the NAB share price?

Despite a strong set of earnings results printed for FY22, where cash earnings increased 6% year on year, investors haven’t nibbled at current prices.

In fact, NAB shares were on the upward trajectory since catching a bid from around mid-June, but growth has since levelled off to current ranges.

Heading into August, momentum was high for the bank’s share price after stretching up from 52-week lows of $26.06 on 20 June.

Chief to the upside was the Reserve Bank (RBA)’s decision to begin the hiking cycle of its key policy interest rate – known as the cash rate in Australia.

In a move that followed several other central banks from around the globe, the RBA shifted the cash rate to its highest point in several years.

The move is seen as beneficial to the financial sector, including banks and listed investment companies, due to profits obtained on interest rate differentials.

So as the RBA has lifted the cash rate, so too has NAB lifted its lending/borrowing rates for residential and commercial mortgages, alongside other debt facilities.

It’s not all that simple, however

NAB theoretically will realise this gain at the net interest income (NII) and net interest margin (NIM) levels – two key benchmarks in the evaluation of banking shares.

The NIMs for banks like NAB benefit from the higher interest income charged on its loaned funds as it underwrites new credit to borrowers (interest is the cost of money). As such, extra income is potentially fed down to NAB’s bottom line.

However, Australia’s mortgage and lending market is extremely competitive, and this competitiveness has placed an artificial ceiling on how far banks can lift lending rates, seeing as the hallmark for competition is lower costs.

Some banks have even lowered the interest rate on some of their products in order to stand out from the pack and drive additional NII.

Not to mention, new house sales and existing home sales continue to weaken in 2022, alongside the collapse of several construction companies.

Moreover, the RBA’s moves to lift the cash rate are by meticulous design in order to clamp down on hot-running inflation.

It is in fact the RBA’s primary mandate to keep inflation within a 2-3% radius – something it has failed tremendously over these past 12 months, not necessarily by entire fault of its own.

Whatever the supposed cause of the jump in living costs, the RBA has to wind back inflation, and it has a balancing act with the real economy in doing so.

See, raising interest rates will certainly control inflation at some point, but it does this at the sacrifice of economic growth and aggregate demand.

Put simply, the RBA needs to successfully navigate pulling inflation back down whilst preventing the economy from entering an all-out recession. In a paradox, it does this by raising base interest rates, thereby slowing the economy.

If it lets inflation run, the eventual recession caused by this is undeniably worse and has far more reaching consequences, and produces a scenario known as ‘stagflation’ – whereby there’s negative economic growth with soaring inflation. If you know anything about modern history, think Germany’s economy post WW1.

In any sense, these dynamics have played havoc on the shares of ASX banks in FY23, with NAB no exception.

Strengths from potential higher NII and NIMs are offset by weakness in Australian property, higher interest rates and the prospects for lower economic growth. Each isn’t conducive to banks underwriting more loans.

The NAB share price is still up 8% in the past 12 months.

The post Why did the NAB share price struggle in August? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 bank shares in September?
• Will this build value for NAB shareholders or alienate the bank’s customers?
• Are ANZ shares really offering the highest dividend yield of the big four?
• NAB is the ASX 200 bank share I’d buy today
• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?

Motley Fool contributor Zach Bristow 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.

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The Sayona Mining Ltd (ASX: SYA) share price had a tremendously strong month during August.

For the 23 trading days, the ASX mining share harpooned into the green, clipping a 51.3% gain for shareholders in the process.

Before the open on Thursday, the Sayona share price is 29.5 cents after lifting another 5% yesterday.

What’s up with the Sayona share price?

August was a flavoursome month for the miner with its share price clawing back losses incurred from a heavy sell-off that started in April.

Chief to the gains early on was Sayona’s announcement that it had restarted production at its North American Lithium asset, located in Canada.

First spodumene production is expected from the facility by Q1 2023. This is a huge step up for the company in its lithium production efforts.

Adding further upside to the investment debate has certainly been the price of lithium in recent months.

While most other commodity markets have drifted lower since June, lithium carbonate has shifted back towards all-time highs.

Even more promising was the recent earnings result from fellow lithium player Pilbara Minerals Ltd (ASX: PLS). The company recognised $1.2 billion in revenue and $561 million in net profit for the 12 months.

The uplift in earnings from Pilbara signals that real demand and supply forces in the markets are still very active and that producers are reaping the benefits of the same.

Following Pilbara’s printed earnings the ASX lithium basket has captured upside in the double-digits, with Sayona outshining in August.

Following the gains, the Sayona Mining share price now rests more than 103% higher for the past 12 months.

It trades on a price-to-earnings ratio (P/E) of 28.5x and presents a trailing earnings yield of 3.5%.

The post Why did the Sayona Mining share price go gangbusters in August? appeared first on The Motley Fool Australia.

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More reading

• Why did the Sayona share price tumble 5% on Monday?
• Have Sayona Mining shares been a good investment in 2022?
• Why did the Sayona Mining share price beat the ASX All Ords on Tuesday?
• Why is the Sayona Mining share price surging 8% on Friday?
• Why is the Sayona Mining share price so volatile?

Motley Fool contributor Zach Bristow 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.

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CSL Limited (ASX: CSL) shares and Cochlear Limited (ASX: COH) shares are both interesting ideas as potential investment opportunities after reporting season finished. But which one is better?

For readers who don’t know, these are two of the biggest businesses on the ASX.

Based on the latest CSL share price, the biotech giant has a market capitalisation of $141 billion. Cochlear’s current market cap is around $14 billion.

What are these businesses?

Cochlear says that it’s a “leader in hearing device implants that help to restore hearing and connect people to a world of sound”.

Meanwhile, CSL has a few different businesses.

Behring has a portfolio of medicine plasma-derived products for treating bleeding disorders, immune deficiencies, and chronic inflammatory demyelinating polyneuropathy.

CSL is one of the world’s largest and most sophisticated plasma collection networks, with more than 300 plasma collection centres in the United States, Europe, and China.

CSL is also an influenza vaccine business. It has just acquired Vifor, a leader in nephrology, and wants to launch the next generation of therapies to address the full spectrum of kidney disease, with a focus on dialysis and rare disease.

How did the two businesses perform in FY22?

With both companies having reported during the August earnings season, there is a considerable amount of information on which to judge the investment case for Cochlear and CSL shares.

Let’s have a quick recap on both of these ASX healthcare shares.

CSL revealed that it generated US$2.26 billion of net profit after tax (NPAT) in FY22, which was a decline of 6% in constant currency terms. This was the top end of the guidance, with revenue up 3% in constant currency.

It said that the performance was “as expected in a difficult global environment”, with an “exceptional performance” by the influenza vaccine business, which is an important factor for CSL shares.

As FY22 progressed, plasma collections grew significantly, although at a higher cost. Collections rose 24%, which it expects will underpin “strong” sales growth in its core plasma products going forward.

For FY23, CSL said it was expecting the influenza vaccine business to deliver another strong year. However, the current higher cost of plasma is expected to continue in FY23. The FY23 net profit is expected to be between US$2.4 billion to US$2.5 billion, excluding Vifor.

CSL shares edged 1.32% lower on 17 August after the company released its results.

Cochlear produced a different set of numbers. It said that sales revenue rose by 10% to $1.64 billion. Underlying net profit after tax went up 18% to $277 million, though it only increased by 10% in constant currency terms. Statutory net profit fell 11% to $289.1 million.

The company said the FY22 result was driven by strong demand for acoustic implants and sound processor upgrades with all regions and product segments “tracking above” pre-COVID levels. While implant revenue growth rates improved across the year, it continued to experience “variability” in performance across countries.

For FY23, Cochlear is expecting to achieve a net profit of between $290 million to $305 million, an increase of between 5% to 10% compared to FY22. This guidance anticipates strong growth in sales revenue. Trading conditions are expected to improve progressively across the year.

Are CSL shares a better buy?

Shareholders of each business would probably suggest that their investment is the better pick.

The broker Morgans thinks Cochlear shares are a buy, with a price target of $236.70. This implies a rise of around 10%. However, Macquarie has an underperform rating on Cochlear, with a price target of $194, implying a fall of almost 10%.

Morgans also thinks that CSL shares are a buy, with a price target of $321.30. That’s a potential rise of almost 10%. Macquarie also has an outperform rating on CSL, with a price target of $329.50. That’s a possible rise of more than 10%.

The post How do CSL shares stack up against Cochlear following earnings season? appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in September 2022
• Here’s the CSL dividend forecast through to 2025
• Here’s why analysts say these blue chip ASX 200 shares are buys
• How have ASX dividend shares been performing this earnings season?
• The ASX had its worst day in 6 weeks, but the CSL share price gained. Why?

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 CSL Ltd. and Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I believe that investing in (ASX) shares is one of the best ways to improve our finances and grow wealth over time. Starting from scratch may be a daunting prospect for a beginner investor, but I believe there are some names that could be good picks for the long term.

Shares have the ability to produce attractive compounding returns. In other words, growth on growth over multiple years. Of course, there’s always the chance that in any given year there could be a market slump. The current volatility we’re seeing is an example of that. The COVID-19 crash was another example of a market decline, but that also demonstrated how markets have typically recovered over time.

I view market declines as opportunities to buy businesses and assets at cheaper prices. When I go to the supermarket, I’d prefer the products priced at a discount rather than being fully priced. For me, it’s a similar thing to investing. I’d rather invest heavily when share prices are down.

In my opinion, the current market decline means it could be a good time to invest if I had to start a portfolio from scratch. With that in mind, if I were given $20,000 to invest in ASX shares, this is how I’d do it:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I would invest $4,000 into Soul Pattinson. For me, this investment house business can be an ultra-long-term investment (it’s already over a century old). It has a diverse portfolio across a range of industries like telecommunications, resources, property, building products, agriculture, and so on.

I’d make it my biggest allocation because I think it can provide stability, long-term growth and growing dividends.

Wesfarmers Ltd (ASX: WES)

Next, I would put $3,000 towards Wesfarmers shares. Wesfarmers is another conglomerate, but it has a more focused portfolio. Hardware business Bunnings is the key division, which makes big profit for Wesfarmers, but the ASX share also owns other quality businesses in retail (Kmart, Officeworks, and more), healthcare (Priceline), energy and fertilisers (WesCEF), and so on. I like that it can, and does, buy and sell businesses to improve its portfolio.

Airtasker Ltd (ASX: ART)

I’d want to put $2,500 into Airtasker shares. I believe that the local services marketplace business has a very promising future. It’s generating growth and making rapid gains in the large markets of the UK and US.

It’s one of my preferred ASX growth shares and I think it’s doing the right things to succeed in the long term. Nothing is guaranteed, but I think it could be a much bigger and more profitable business in a decade from now if it keeps growing its revenue at a double-digit rate.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

I think that the MOAT ETF is one of the best exchange-traded funds (ETFs) on the ASX. I’d put $3,500 into this choice.

It’s an actively managed portfolio focused on US businesses that have strong competitive advantages which are expected to endure for many years to come. Businesses are only added to the portfolio if they are viewed as good value. The ETF has performed well, with the MOAT ETF unit price almost doubling over five years. I also like the geographic diversification the ETF would add for Aussies as well.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is an ASX lithium mining share I’d put $2,000 towards.

While it’s not as cheap as it was in June 2022, I’m bullish about the long-term of Pilbara Minerals. Not only is it benefiting from very high lithium prices – which could stay relatively high as electric vehicle and battery demand grows – but it’s also working on being involved with more of the lithium value chain. I think this is very promising for the future profitability of the business.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has dropped around 50% in 2022. I’d want to put $1,500 towards it because I like how the business is investing in various ways to give great customer service, including its virtual reality and augmented reality technology. The online model can come with better profit margins and more rapid scaling than a brick-and-mortar business could achieve.

After its fall this year, I think it’s an opportunity. I like its expansion into other areas like home improvement. Scale should also help profit margins in the future. Year over year, it’s growing quickly.

Betashares Climate Change Innovation ETF (ASX: ERTH)

This ETF is about investing in a portfolio of global businesses that are aiming to help the world decarbonise or become greener and sustainable in some form.

I’d want to put $1,500 into this one because I believe the growing desire of societies to reach net zero in the coming decades will translate into growing revenue and earnings for the businesses making that greener future happen.

Bailador Technology Investments Ltd (ASX: BTI)

This is an investment company that purely invests in small (but rapidly growing) technology businesses. I’d want to invest $2,000 into this one.

It’s looking for private tech businesses that have plenty of growth potential, international revenue, and have good unit economics. The Bailador investment team has been effective at finding those opportunities. I’m backing them to continue to find good opportunities, while the introduction of a regular dividend is also attractive to me.

The post How I’d invest $20,000 in ASX shares today if I had to start from scratch appeared first on The Motley Fool Australia.

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More reading

• These were the best performers on the ASX 200 in August
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Wesfarmers share price sliding lower on Wednesday?
• Could the Pilbara Minerals share price really offer more than 50% upside in FY23?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments Limited, Temple & Webster Group Ltd, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited, Temple & Webster Group Ltd, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lake Resources NL (ASX: LKE) share price took off last month.

After closing the final session of July at 81 cents, stock in the S&P/ASX 200 Index (ASX: XJO) lithium favourite ended yesterday’s trade at $1.17. That marks a 44.4% improvement.

For context, the index lifted 0.6% over the month of August.

Interestingly, the stock’s surge came despite the company’s silence. The last time the market heard price-sensitive news from the company was in late July.

So, what’s been driving the Lake Resources share price lately? Let’s take a look.

What went right for the Lake Resources share price?

To really delve into what went right for Lake Resources stock last month, one must look to the company’s recent struggles. Notably, a short attack launched against the company in July.

A report issued by short-seller J Capital claimed the company’s flagship Kachi Project wouldn’t reach production by 2024 as planned. It also alleged direct lithium extraction technology intended to be used at the project won’t work the way the company claims it will.

Lake Resources disputed the allegations. It said the short seller was, incredibly, critiquing the wrong technology.

But its clap back didn’t stop its short position rocketing to a high of 10.8% early last month. That’s since dipped slightly, falling to 10% as of the most recent data available.

Looking even further back, the stock plummeted 49% in June amid a broader lithium sell-off.

Thus, despite its recent gains, the Lake Resources share price is still 24% lower than it was at the end of May and just 7% higher than where it started 2022.

Comparatively, its fellow ASX 200 lithium shares, Core Lithium Ltd (ASX: COR) and Pilbara Minerals Ltd (ASX: PLS) have respectively gained 122% and 4% year to date.

It’s also worth pointing out there was major news from many of Lake Resources’ ASX 200 peers last month.

Core Lithium dropped news of lithium and gold findings and Pilbara Minerals posted its maiden profit. Meanwhile, Allkem Ltd (ASX: AKE) dropped record full-year results and Sayona Mining Ltd (ASX: SYA) released good news about its North American Lithium operation’s anticipated production.

All these updates may have helped boost sentiment for the Lake Resources share price.

The post Why did the Lake Resources share price rocket 40% in August? appeared first on The Motley Fool Australia.

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More reading

• These were the best performers on the ASX 200 in August
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Could this give some ASX lithium shares the edge?
• Why did the Lake Resources share price plunge 10% today?

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 Scott Phillips.

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The Webjet Limited (ASX: WEB) share price was a strong performer on Wednesday.

The online travel agent’s shares rose a sizeable 8% to $5.52.

Investors were bidding Webjet’s shares higher after responding positively to the release of the company’s trading update.

Where next for the Webjet share price?

The good news is that Goldman Sachs believes the Webjet share price can keep ascending from here.

According to a note out of the investment bank from this morning, the broker has retained its buy rating with a slightly trimmed price target of $6.80.

Based on the latest Webjet share price, this implies potential upside of 23% for investors over the next 12 months.

And with Goldman expecting dividend payments to return in FY 2023 with a modest 6 cents per share dividend, the total potential return stretches to over 24% including it.

What did the broker say?

Goldman notes that Webjet’s trading update revealed a strong recovery in the Bedbanks business and impressive cash flow forecasts.

And while it notes that a slower than expected recovery in international travel is holding back its OTA business, it has seen enough to remain bullish. Particularly given the aforementioned free cash flow generation, which it believes supports potential M&A activities and a final dividend payment in FY 2023. The broker concluded:

Overall, we view travel recovery as trending in the right direction, albeit with hiccups in the trend and we believe WEB remains well positioned to capitalise on the recovery through their online OTA offer and more importantly the strengthening position in the Bedbanks market. We expect the group to resume dividend payment from final dividend in FY23. Our revised 12m Target Price of A$6.80 offers a total potential return of 24.3% and we maintain our Buy rating on WEB.

The post Broker tips 23% upside for Webjet share price and the return of dividends appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 ASX All Ords shares that leapt over 10% today
• Here are the top 10 ASX 200 shares today
• Why Deep Yellow, Nitro, Tyro, and Webjet shares are storming higher
• Why is the Qantas share price beating the ASX 200 on Wednesday?

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 Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors are always told to hold for the long run, but sometimes even many years of patience doesn’t pay off.

Some businesses are just duds. Or management and staff might be working very hard but for some reason market sentiment is against the stock.

After keeping a close eye on reporting season, Morgans analyst Andrew Tang reckons he’s found a couple of long-term losers that are rejuvenated and ready to take off.

That will come as relief for long-time shareholders, or present a ripe buying opportunity for new investors:

Huzzah, this company is finally profitable!

It has been an arduous march for Helloworld Travel Ltd (ASX: HLO) shares.

Even the most patient of shareholders must have gone well grey by now, with the travel agency stock losing 56% over the past 5 years.

Ouch.

But Tang feels like that’s all about to change.

“Helloworld’s FY22 result beat expectations with the group returning to modest (EBITDA) profitability in the fourth quarter,” he said in a Morgans’ Best Calls To Action memo.

“Cashflow and the balance sheet were also stronger than expected.”

There was something of a catalyst earlier this year when Helloworld sold off its corporate travel division to Corporate Travel Management Ltd (ASX: CTD) in a $175 million deal.

Tang believes this has now made Helloworld shares an absolute bargain.

“Backing out its investment in the corporate travel division from its enterprise value, Helloworld is materially undervalued, trading on a recovery year EV/EBITDA multiple of only 2.9 times.”

Management is so optimistic about the future that despite the years of capital loss, a dividend was paid out this time round.

“In a sign of confidence, Helloworld has rewarded shareholders with a 10 cents per share final dividend,” said Tang.

“It also provided FY23 guidance which was well above consensus.”

‘Improving operating leverage’ makes for a great 2023

Another atrocious long-term performer is payments terminal provider Tyro Payments Ltd (ASX: TYR).

Growth share fans ploughed into the stock when it listed on the ASX in December 2019 after an initial public offer price of $2.75.

The fintech stock rode as high as $4.38 during those early months, but has disappointed in the three years since.

In fact, currently Tyro shares are down almost 74% from those post-float highs.

Tang noted that in its latest results Tyro’s net profit was below consensus, but earnings and financial year 2023 guidance landed above expectations.

“Our key result takeaway was the market had been waiting for TYR to give evidence of improving operating leverage, with FY23 EBITDA guidance of $23 million to $29 million (FY21 $10.5 million) particularly meeting that criteria.”

The Morgans team therefore has lifted its earnings forecast for the company by more than 10%, and rates Tyro as a buy.

The post 2 heart-breaking ASX shares finally turning it around: Morgans appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares that leapt over 10% today
• Why did the Tyro share price surge 12% today?
• Why Deep Yellow, Nitro, Tyro, and Webjet shares are storming higher
• 3 ASX All Ords shares lifting on full-year results
• Why A2 Milk, Lovisa, McMillan Shakespeare, and Tyro are storming higher

Motley Fool contributor Tony Yoo has positions in Corporate Travel Management Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Helloworld Limited and Tyro Payments. The Motley Fool Australia has positions in and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Despite some tough days at the end of the month, the S&P/ASX 200 Index (ASX: XJO) managed to record a small gain in August. The benchmark index climbed 0.6% to end the month at 6,986.8 points.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 in August:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price was the worst performer on the ASX 200 in August with a 29.5% decline. Investors were selling this plus sized fashion retailer’s shares following the release of a disappointing full year result. City Chic revealed a 39% increase in revenue to $369.2 million and a modest increase in net profit after tax to $22.3 million. However, overshadowing this was the almost tripling of its inventory position and its negative cash flow.

St Barbara Ltd (ASX: SBM)

The St Barbara share price was out of form and dropped 20.7% during the month. Investors were selling St Barbara and other gold miners last month after the gold price tumbled on the belief that rates will continue to rise and reduce the appeal of the non-yielding asset. For the same reason, the Ramelius Resources Limited (ASX: RMS) share price also tumbled materially last month. Its shares ended the month 18.2% lower than where they started it.

TPG Telecom Ltd (ASX: TPG)

The TPG share price wasn’t far behind with a decline of 16%. Investors were selling this telco giant’s shares following the release of its half year results. TPG reported an adjusted net profit after tax of $331 million, which was up 3.8% over the prior corresponding period. However, according to a note out of Goldman Sachs, TPG’s profits missed by 15%. It also highlighted “disappointing opex and Mobile ARPU growth.”

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price also dropped 16% in August. This followed the release of the debt collector’s full year results. While Credit Corp achieved its guidance for FY 2022, it was its outlook for FY 2023 that disappointed. For example, Morgans was expecting FY 2023 net profit guidance of $94 million to $104 million. However, management is targeting $90 million to $97 million. In addition, later on in the month the company announced customer remediation plans after charging people interest that it shouldn’t have done.

The post These were the worst performers on the ASX 200 in August appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• St Barbara share price slides on 70% profit slash
• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• Ramelius share price slips following 90% profit plunge
• ASX 200 reporting season weekly wrap: Top risers and fallers

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 TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woodside Energy Group Ltd (ASX: WDS) got investors excited this week when it reported a 400% profit surge in its FY22 half-year earnings and tripled its interim dividend for shareholders.

Woodside said the half-year profit surge reflects “strong operational performance, higher realised prices and contribution from the BHPP assets”.

The assets it’s referring to there are those within the petroleum business of BHP Group Ltd (ASX: BHP).

Woodside completed its merger with BHP Petroleum International Pty Ltd (BHPP) on 1 June. Therefore, there was only a single month of production from those BHP assets included in the half-year result.

But what a contribution.

How significant are the BHP assets to Woodside?

The single month of production from the BHPP assets equated to 9.7 million barrels of oil equivalent (boe) for Woodside, according to its half-year report.

This ended up being 17% of Woodside’s total production for the six months to 30 June. In just one month, those BHP assets delivered almost a fifth of Woodside’s total half-year production.

Woodside reported total production of 54.9 million boe — up 19% on the prior corresponding period.

It also reported that realised prices for its oil and gas more than doubled to $96.4 per boe across its expanded portfolio of assets.

So, not only is Woodside producing more — with the help of those BHP assets — it’s also selling its product for more than double the price.

What will Woodside’s production look like for the next half of FY22, when it gets the benefit of six months of production out of those BHP assets?

What did the Woodside CEO say about the BHP assets?

Woodside Energy CEO Meg O’Neill said:

Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets.

Production for the half year was 19% higher at 54.9 million barrels of oil equivalent, benefiting from the contribution in the month of June of the former BHP assets and improved reliability at our LNG facilities.

BHP merger provides $400 million in synergies

In its report, Woodside said:

Woodside has delivered synergies of approximately $100 million of the $400+ million per year synergies target, with more than $300 million of further opportunities for synergies identified.

Following completion of the merger with BHP’s petroleum business … Woodside’s Reserves as at 1 June 2022 increased to 2,339.6 MMboe Proved (1P) Reserves and 3,786.4 MMboe Proved plus Probable (2P) Reserves, with an increase in the Best Estimate (2C) Contingent Resources to 8,682.4 MMboe.

How the Woodside share price responded

The Woodside share price moved up 1.93% on Tuesday — the day Woodside released its half-year report. Not only that, the shares hit a two-year high price of $36.68 in intraday trading.

Yesterday, Woodside shares pulled back by 4.52% to close at $34.25. Potentially, this could have been a result of investors selling the stock to take their capital gains and run.

Woodside has a 30-day average trading volume of 5.36 million shares. On Tuesday, 6.4 million shares were traded. Yesterday, 12.7 million shares swapped hands.

The interim dividend is the largest Woodside has paid since 2014. However, the Woodside share price has only gained 20% in value over the past five years.

The post Do Woodside shares still have more upside to come from the company’s BHP purchase? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• How does the Rio Tinto dividend stack up against what BHP is offering?
• Why DGL, PointsBet, Tabcorp, and Woodside shares are dropping today
• Why is the Woodside share price tumbling 4% on Wednesday?
• What’s going wrong for ASX 200 iron ore shares on Wednesday?

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Woodside Petroleum Ltd. 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.

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