Tag: Motley Fool

The Deterra Royalties Ltd (ASX: DRR) share price is inching ahead after revealing its full-year results.

As shares begin freely trading this morning, the mining royalties company’s share price is up 0.2% to $4.60.

Deterra share price holds steady as royalties soar

• Revenue up 83% year on year to $265.2 million
• EBITDA up 90% to $256.8 million
• EBITDA margin steady compared to FY21 at 97%
• Net profit after tax (NPAT) up 89% to $178.5 million
• Fully franked final dividend of 22.08 cents per share
• Total full-year dividend of 33.76 cents per share, up 89%

In FY22, Deterra recorded an average realised iron ore price 14% below the prior year. Despite this, the company manifested a mighty improvement in royalty revenue.

According to the report, royalties were boosted by two main factors. Firstly, the cornerstone royalty asset, the Mining Area C (MAC), hit a record production volume of 111 million wet metric tonnes (mwmt), up 80% year on year. This meant more production to clip the ticket on for Deterra.

Secondly, the company received a one-off capacity payment of $46 million. The payment is related to the ramp-up of the South Flank expansion at MAC.

What else?

In the chair and CEO report, management pointed out their belief that the Deterra share price provides significant protection against cost inflation. This is due to the company having no exposure to the expenses associated with mining.

With significant dependence on BHP Group Ltd‘s (ASX: BHP) MAC operations, investors might be wondering about diversification. In FY22, Deterra did not make any new investments in royalty assets. However, management said it remains “very active” in seeking new opportunities.

What did management say?

Commenting on the result, Deterra managing director Julian Andrews said:

In particular, our cornerstone asset, the Mining Area C royalty, had an outstanding year, with MAC producing 111 mwmt, an increase of 80% on the prior year as the South Flank expansion continued its ramp up to full production.

Andrews added:

The expansion is now ahead of its schedule to increase overall MAC production to 145 mwmt per year by mid-2024 and BHP is to be credited for impressive execution of this US$3.6 billion capital project which will grow Mining Area C into the world’s largest iron ore hub.

What’s next?

Notably, shareholders are getting showered with the full profit proceeds of FY22. Shares will go ex-dividend on 25 August, making it an important date to remember for those wanting to receive the Deterra dividend. From there, the dividend will be paid on 21 September.

The company did not provide any specific forward guidance. However, management did highlight the potential future production from the South Flank expansion.

At completion, the operations are expected to hit 145 million wet tonnes per annum. This is forecast to occur by mid-2024, which would see a 30.6% increase in production from FY22.

Deterra share price snapshot

The Deterra Royalties share price has kept its head above water this year, unlike the S&P/ASX 200 Index (ASX: XJO). Specifically, shareholders have enjoyed a 5.05% return, far exceeding the 6.6% fall in the benchmark.

Finally, shares in the royalties company are now boasting a magnificent 7.4% dividend yield on a trailing 12-month basis.

The post Deterra share price flexes on FY22 dividend bonanza appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher
• Here’s why Macquarie thinks these 2 ASX 200 shares can outperform

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.

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The Yancoal Australia Ltd (ASX: YAL) share price is climbing today amid the company’s financial results for the first half of 2022.

The coal company’s share price is currently $5.56, a 1.65% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.48% today.

Let’s take a look at Yancoal’s financial results.

Profit lifts, but production lower

Highlights of Yancoal’s 1H 2022 results include:

• Operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.153 billion, up 676.6% from $406 million in the first half of 2021
• Revenue of $4.776 billion, up 169% from $1.775 billion in 1H21
• Profit after tax of $1.738 billion, up 1247% compared to $129 million in 1H21
• EBITDA margin of 65%
• Cash inflows of $2.8 billion
• Run-of-mine (ROM) coal production of 25.8 million tonnes
• Cash at hand $3.4 billion at 30 June, net debt of $232 million
• An interim dividend of 52.71 cents

What else did the company report?

Yancoal’s record half-yearly revenue was driven by higher coal prices. The average realised coal price surged 234% to $314 per tonne.

The company also delivered a record EBITDA and EBITDA margin. Huge coal prices outweighed lower coal production.

Total ROM coal production of 25.8 million tonnes fell from 29.3 million tonnes in the first half of 2021.

The lower coal production was due to the impact of COVID-19, wet weather, and inflation cost pressures.

The interim dividend of 52.71 cents per share, unfranked, will cost $696 million.

Management comment

Commenting on the results, CEO David Moult said:

Yancoal delivered a record six-month financial performance. The remarkable turnaround in the company’s financial position is driven by the coal price but couldn’t be achieved without the unwavering focus on the day-to-day operations by all the people across the seven mines.

The positive outlook for the coal prices, and the record 1H Result puts Yancoal on track for another full-year record in 2022.

What’s ahead?

Yancoal is predicting thermal coal prices to remain high in 2023. International thermal coal indices are at record levels at the onset of the second half of 2022.

Looking at 2022 as a whole, Yancoal is forecasting saleable coal production of 31 to 33 million tonnes. Cash operating costs are expected to be $84 to $89 per tonne. Capital expenditure is predicted to be between $550 and $600 million.

The production and operating guidance allows for more rainfall in the second half of the year. But if weather disruptions are greater than predicted, Yancoal could face water storage capacity constraints.

In relation to the coal price, Yancoal said:

The record financial performance for 1H 2022 does not fully capture the benefit of recent record coal price. Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.

Yancoal expects to deliver a record financial performance in 2022.

Yancoal share price snapshot

The Yancoal share price has soared 136% in the past year, while it has surged 114% year to date.

For perspective, the benchmark ASX 200 has lost 5% in the last year.

Yancoal has a market capitalisation of more than $7 billion based on the current share price.

The post Yancoal share price lifts on 677% earnings boost appeared first on The Motley Fool Australia.

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More reading

• Why India can’t get enough of Aussie coking coal and which ASX shares have exposure
• ASX coal shares in the spotlight amid fresh supply warnings
• How long can ASX coal shares keep this rally up?

Motley Fool contributor Monica O’Shea 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 recovery of retail share prices?

It’s been big.

I can’t say I hadn’t noticed – disclosure alert: I own some of the companies I’m about to talk about.

But I hadn’t noticed just how big the recovery has been.

The Motley Fool’s Director of Research, Kevin Gandiya, shared some numbers with the team yesterday.

As of that date, these were the one-month share price gains of four online retailers:

– Cettire Ltd (ASX: CTT) up 156%
– Adore Beauty Ltd (ASX: ABY) up 93%
– Temple & Webster Group Ltd (ASX: TPW) up 64%
– Kogan.com Ltd (ASX: KGN) up 44%

(I own Adore and Kogan shares, for the record.)

Those are some serious one-month numbers.

And remarkable that they’re four similar companies.

But they’re not oil explorers. Or biotech hopefuls. Or – god forbid – crypto funds.

They’re retailers.

Online retailers, to be sure, but retailers.

Not the sort of businesses that can turn on a dime. Or are particularly easy to grow.

Software companies can sell to customers, who download infinite copies of inventory-less products, instantly.

Biotechs can make a discovery, get an approval, or sign a distribution deal that can dramatically change a company’s future with a single signature.

Retailers?

Even online ones need to attract customers, make a sale in a hyper-competitive environment, then fulfill the order with physical inventory that’s been made, stored and then shipped.

Not the easiest businesses to scale.

So, what gives, to see share prices soar so significantly in such a short amount of time?

In short, sentiment.

The market – writ large – has simply changed its collective mind.

A month ago, the market hated these companies.

In the 20-odd trading days since… it hates them a lot less.

Don’t get me wrong – they’re all lower than past highs.

There are no victory laps here.

But the phenomenon is too notable to pass up.

Yes, some sales numbers have been better than expected.

That helps.

But that only helps if the ‘expectations’ were wrong in the first place which — I don’t think it’s controversial to say – they clearly were.

Otherwise?

The market just changed its mind.

In a very big way.

But I’ve got to ask you: is it really possible that a retailer – even one relatively early in its corporate life, like Cettire – can be worth one price a month ago, and 2.5 times that price, this week?

Note I didn’t ask about its price.

I asked about its ‘worth’.

And the difference between those two terms is precisely the point I want to make.

See, it’s my contention that some of the current retail valuations are way too low.

It’s a point I’ve made almost everywhere in the past few months – TV, radio, online and here.

Here’s why:

It seems to me that the market has decided that, because the economy might slow (maybe even dramatically) many – most – retail stocks are worth nearly nothing.

(Okay, not ‘nothing’, but some are trading at or near single-digit price/earnings ratios!)

Now, let’s play this forward.

Let’s say – touch wood – we go into recession in 2023, and sales and profits fall.

Not great.

But let’s say you have a 5, 7 or 10 year time horizon.

As long as these businesses aren’t significantly or permanently damaged by a recession, they’ll come out the other side.

They’ll probably go on to deliver even higher sales and profits in the years ahead.

Sure, the ‘recession’ year is a net detractor.

But if you could buy an asset that might struggle for a short time, then go back to its successful past… well, a share price that suggests relative Armageddon is likely to be, in hindsight, cheap.

And that downturn may not even come, or be shorter or shallower than some expect.

Put more simply, investing is a game of probabilities. There is a range of possible outcomes.

Right now, most retail companies’ shares are priced as if the most likely outcome is a permanent (or very-long-term) loss of value.

Which means that if the future is brighter, the shares are available at pretty attractive prices.

And moreso, if you were to consider this group (and more besides) as a basket.

One or two might struggle for one reason or another.

But as a group?

Now, that doesn’t mean I know what’s going to happen next.

They might fall again before they rise.

I might even – how many people say this out loud? – be dead wrong.

But I think there’s a very, very good chance that companies priced for Armageddon will do well from here, if such disaster doesn’t, well, actually happen.

And unless the Australian economy falls into a permanent funk, I reckon that’s a pretty good bet.

Fool on!

The post Are the stores themselves on sale? appeared first on The Motley Fool Australia.

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More reading

• 50% off: Why I think this ASX All Ords share could be a sparkling buy
• Adore Beauty share price slips 12% following ASX speeding ticket
• Why BHP, Life360, Tassal, and Temple & Webster shares are charging higher
• Why is the Adore Beauty share price rocketing 19% on Tuesday?
• The BHP share price now trades on a fully franked dividend yield of 11%

Motley Fool contributor Scott Phillips has positions in Adore Beauty Group Limited and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cettire Limited, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited, Cettire Limited, and Temple & Webster Group 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened

On an otherwise down day in the cryptocurrency market, EOS (CRYPTO: EOS) is one token that’s absolutely rocketing higher. As of 12:30 p.m. ET, EOS has soared 19% over the past 24 hours.

The move follows an interesting court ruling this week in which a judge from the Southern District of New York threw out a settlement between Block.one (the company that initially designed the EOS network) and investors. This $27.5 million settlement, which was proposed by Block.one and agreed to in June of this year, stemmed from a dispute with investors over whether an initial coin offering back in 2018 constituted an unregistered securities offering.

Other crypto projects have been mired in scrutiny from regulators and investors over alleged unregistered securities offerings, but this settlement was one of the more substantial the crypto community had seen. In addition, it’s important to note that Block.one also previously settled with the U.S. Securities and Exchange Commission for $24 million over the same allegations.

So what

While the company sought to settle these claims to focus on moving its blockchain endeavors forward, it’s clear that investors are paying close attention to what this ruling could mean for various projects embattled with legal issues. The fact that EOS is surging following this news indicates investors are taking the cue that the downside pressure from this headwind could be over. 

Now, EOS isn’t the only token that’s been caught up in allegations of unregistered securities offerings. Other projects, including XRP, are fighting similar battles. That said, the rather massive $4 billion raise Block.one managed to pull off in 2018, then the largest ever, made a settlement more likely. The ability for other projects to settle, given limited liquidity, remains uncertain.

Now what

The reason for this settlement being thrown out — that the party representing investors didn’t “adequately represent the interests of all investors” — is interesting. From here, it will be interesting to see how this decision impacts ongoing litigation with other projects. Investors are clearly watching these cases closely, and EOS is one token that could represent the upside following potentially positive future rulings for other embattled crypto projects.

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

The post Why cryptocurrency EOS soared 19% while the market took a breather today appeared first on The Motley Fool Australia.

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More reading

• Are the stores themselves on sale?
• Data#3 share price dips despite 19% leap in FY22 dividend
• Transurban share price slumps despite revenue lifting to $3.4b
• Beacon Lighting share price shooting the lights out on FY22 results
• Brokers name 2 blue chip ASX 200 shares to buy

Chris MacDonald 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.

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

What happened

After initially surging more than 4% early this morning during Asian trading hours, top cryptocurrencies Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) have each moved lower in early afternoon trading. As of 1 p.m. ET, these three tokens have slumped 1.5%, 2%, and 2.2%, respectively, over the past 24 hours.

Interestingly, the moves for these top tokens tracked the price action for global equity markets quite closely. Most major Asian indices moved higher overnight. However, U.S. equity markets have moved lower today as investors await the release of the most recent Federal Open Market Committee (FOMC) meeting minutes. Concerns around the forward hiking schedule of the Fed saw bond yields shoot higher today, affecting all risk assets, including major cryptocurrencies.

So what

Investors across all risk assets appear to be remaining cautious right now given uncertainty tied to the steps the Federal Reserve intends to take to bring down inflation. With bond yields moving to such a wild degree this year, investors have had a difficult time anticipating when a shift toward more accommodative monetary policy might come about.

For cryptocurrencies, it’s clear that the very dovish monetary policy mandate from the Fed following the pandemic provided the fuel for an incredible bull market rally through the end of 2021. Accordingly, given the decline in higher-risk asset classes following a very hawkish shift, investors looking for the next surge in cheap money-fueled speculation await some additional clarity from the Federal Reserve as to how the central bank is thinking about the issues at hand.

Now what

In general, since the onset of the pandemic, the crypto market has traded in a relatively high correlation to equity markets. In fact, as of May this year, the crypto sector’s correlation to equities hit its highest level ever. Accordingly, how stocks perform matters a great deal for the higher-beta (higher-volatility) performance of this higher-risk asset class.

Today’s price action across both equity and crypto markets will certainly be interesting to watch. Investors might get a sneak peek into how these assets will perform through the end of the year, depending on the commentary provided this afternoon.

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

The post Why Bitcoin, Ethereum, and Dogecoin are slumping today appeared first on The Motley Fool Australia.

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More reading

• Dogecoin just added $1 billion of market cap on this catalyst
• This is why Ethereum has been outpacing the Bitcoin price gains. Will it last?
• Why Ethereum and Solana were trading wildly today
• Big buying activity boosting Bitcoin, Cardano, and Polkadot today
• Will the next era of computing break the Bitcoin price or boost it?

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

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

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Wednesday night to discuss the latest from earnings season, plus a rate call from the RBNZ that might foreshadow the RBA’s next move.

[youtube https://www.youtube.com/watch?v=UXq0ugTIJ0Q?feature=oembed&w=500&h=281]

The post Earnings in focus, and a hint about the RBA’s next move. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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More reading

• Here’s the BHP dividend forecast through to 2026
• Medibank share price on watch amid ‘standout customer growth’
• Why did the Amazon share price fall today?
• 2 little-known ASX shares this fund manager rates highly
• 50% off: Why I think this ASX All Ords share could be a sparkling buy

Motley Fool contributor Scott Phillips 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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group 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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Earlier this week, BHP Group Ltd (ASX: BHP) released its full year results and rewarded its shareholders with another huge dividend.

For the 12 months ended 30 June, the mining giant will pay total fully franked dividends of US$3.25 per share.

This was well ahead of the market’s expectations and is being underpinned by the record free cash flow the mining giant generated during FY 2022.

Investors may now be wondering where the BHP dividend is heading from here. So, let’s take a look to see what analysts are forecasting.

Where is the BHP dividend going from here?

According to a note out of Goldman Sachs, its analysts believe the BHP dividend may have peaked for the time being.

Nevertheless, the broker is still expecting the Big Australian’s shares to provide above-average yields for the foreseeable future.

In FY 2023, Goldman is forecasting a US$1.62 (A$2.34) per share fully franked dividend. Based on the current BHP share price, this will mean a yield of 5.75%.

The following year, in FY 2024, the broker is expecting the BHP dividend to reduce again. It has pencilled in a US$1.54 (A$2.23) per share fully franked dividend. This equates to a 5.5% dividend yield at current prices.

Moving on, in FY 2025, a fully franked US$1.41 (A$2.04) per share dividend is expected. This will mean a yield of 5% for investors in that financial year.

Finally, in FY 2026, Goldman Sachs is forecasting a US$1.24 (A$1.79) per share fully franked dividend. At current levels, this will mean a yield of 4.4% for investors.

All in all, Goldman doesn’t expect the BHP dividend yield to fall below 4% between now and 2026, which is good news for income investors.

The post Here’s the BHP dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Is the BHP share price a buy after the miner’s FY22 results?
• Can BHP shares keep cashing in on coal?
• An ASX 200 market darling in the past, but don’t expect fireworks from the CSL share price going forward
• Brokers say BHP and this ASX 200 share are buys
• Here are the top 10 ASX 200 shares 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 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 Medibank Private Ltd (ASX: MPL) share price is on watch this morning after the company released its full year results for the 2022 financial year.

Shares in the private health insurer finished 0.28% higher to $3.52 yesterday.

Medibank share price on watch following ‘another strong result’

Medibank has delivered its FY 2022 results for the 12 months ended 30 June 2022. Here are some of the key takeaways:

• Group revenue from external customers up 3.2% year over year to $7,128.5 million
• Segment operating profit up 11.9% to $638.1 million
• Group net profit after tax (NPAT) down 10.7% to $393.9 million
• Final dividend up 5.8% to 7.3 cents per share, fully franked.

What happened in FY 2022?

Medibank recorded a solid financial performance against the backdrop of the COVID-19 pandemic.

Net resident policyholders increased by 60,900 or 3.2% to more than 500,000 policyholders. This was led by strong growth in new to industry and younger customers, reflecting continued buoyancy in the market. The Medibank and ahm brands were positioned well and improved by 1.9% and 7.3% respectively.

In addition, Medibank achieved high levels of customer advocacy and its highest-ever brand advocacy results, with the group leading the top health insurers.

The group achieved operating profit growth in both its Health Insurance and Medibank Health businesses. These numbers lifted by 10% to $592.6 million, and by 33.9% to $45.5 million respectively.

Whilst group operating profit was up 12.5% to $594.1 million, this had been offset by a $24.8 million loss in net investment income compared to a $120 million gain in FY21. This dragged down Medibank’s bottom line with NPAT decreasing 10.7% to $393.9 million.

What did management say?

Medibank CEO, David Koczkar touched on the results, saying:

Today we have delivered another strong result driven by continued policyholder growth, double-digit growth in Medibank Health and remaining disciplined in how we grow and run our business.

We have been able to deliver these results because of the hard work of everyone at Medibank and their unwavering focus on our customers.

The pandemic has triggered a new focus on health and wellbeing, which we expect to continue. A record number of Australians continue to take out private health insurance, especially younger customers.

What’s the outlook for FY 2023?

Looking ahead to the new financial year, Medibank stated it will continue to assess claims activity. It said that any permanent net claims savings due to COVID-19 will be given back to customers through support programs.

In terms of policyholder numbers, the company is striving to reach roughly 2.7% in policyholder growth in FY 2023. This involves targeting areas in priority segments including corporate and regional customers.

Underlying average net claims expense per policy unit is forecast to increase by 2.3% among resident policyholders. Medibank is looking to increase penetration of preventative programs such as Live Better.

And lastly, management is aiming to invest $150 million to $250 million in total over the next three years. This will primarily be in health and wellbeing, primary care, and new care models.

Medibank share price snapshot

The Medibank share price has risen by 5% in 2022 but is flat when looking over the last 12 months.

For context, the S&P/ASX 200 Financials (ASX: XFJ) sector is down 2% for the current calendar year.

Medibank presides a market capitalisation of approximately $9.67 billion.

The post Medibank share price on watch amid ‘standout customer growth’ appeared first on The Motley Fool Australia.

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More reading

• How much have Medibank shares paid in dividends over the past 5 years?
• Is this why the NIB share price is lagging Medibank on Friday?
• Medibank shares are currently trading on a 4% dividend yield. How does this compare to NIB?
• Is the Medibank share price a smart buy for rising inflation?

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

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

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

What happened

Shares of Amazon (NASDAQ: AMZN) traded 1.85% lower on Wednesday after rival Walmart (NYSE: WMT) announced it had signed a partnership with Paramount Global (NASDAQ: PARA) to offer the movie studio’s streaming service to its Walmart+ member loyalty program.

While the deal isn’t about to prove particularly competitive to Amazon Prime Video since few sign up for Amazon’s own membership program to simply get streaming video, Prime itself is coming under greater scrutiny. With Walmart+ priced some $50 less than Prime, it could be seen by some as a better value now.

So what

Walmart has tried offering movies to its customers before, once with a DVD rental service and once via its Vudu streaming offering. Both never gained traction and were subsequently sold off. This could be a better option for Walmart+ members since Paramount+ is operated by someone else and Walmart is simply providing access to it, albeit it being Paramount’s ad-supported level.

Amazon Prime, though, is being investigated by the Federal Trade Commission over the ease of unsubscribing from the service. The probe has since expanded to include other Amazon subscription services including Audible, Amazon Music, Kindle Unlimited, and Subscribe & Save.

Amazon has an estimated 150 million U.S. subscribers in its Prime program, which costs $149 a year. Walmart+, on the other hand, boasts just 11 million U.S. customers.

Now what

The reason most people sign up for Prime is the fast, efficient delivery of goods from the e-commerce site. Walmart+ won’t likely see any crush of people paying $98 a year because it now has streaming video.

Yet along with discounts on gasoline and a six-month free trial to Spotify, a free subscription to the Paramount+ Essential Plan, a $59 value, is a nice add-on benefit.

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

The post Why did the Amazon share price fall today? appeared first on The Motley Fool Australia.

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More reading

• This stock is beating amazon at its own game
• Why the Amazon share price rose today
• The 1 reason Amazon shares may not be a buy right now
• Should investors pounce on Amazon stock during the Nasdaq tech sell-off?
• Amazon stock shrugged off bad news: Here’s what that means for investors

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Duprey 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 Amazon and Walmart Inc. The Motley Fool Australia has recommended Amazon. 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.

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The fund manager Wilson Asset Management (WAM) has named two ASX shares which may be little-known but could be good opportunities.

WAM runs a number of different listed investment companies (LICs) which focus on different areas of the market. Some of those LICs include WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Leaders Ltd (ASX: WLE).

While WAM Leaders focus on names that can be found in the S&P/ASX 200 Index (ASX: XJO), some of the others, like WAM Research, are able to look at smaller businesses to find opportunities.

Here are those two ASX shares that some investors may not have heard of, but could be interesting:

Capricorn Metals Ltd (ASX: CMM)

The fund manager describes this ASX share as an Australian-based gold producer in Western Australia.

WAM noted that the company reported a strong result in the quarter for the three months to June 2022. This update showed record production from its Karlawinda gold project, completing an “outstanding” first full year of operations at the site.

This meant that Capricorn Metals was able to achieve the upper end of its FY22 earnings guidance, with total gold production of 118,432 ounces.

The fund manager also pointed out that the company announced further results from its Mount Gibson project in July after expanding the drilling program from 81,000m to 105,000m, highlighting the “quality and growth potential of the resource at the site”.

WAM called the result “excellent” because the sector is facing a “challenging” environment with increasing costs and labour shortages. The fund manager also said that the ASX share continues to deliver “strong” operational performance, it’s in an “excellent position to create balance sheet flexibility” and the investment team is positive on the outlook and growth opportunities for the company in the upcoming year.

Johns Lyng Group Ltd (ASX: JLG)

Another business that WAM covered was Johns Lyng, which specialises as an integrated building service group delivering building and restoration services across Australia and the US for properties and contents damaged by insurable events.

The fund manager pointed out that in June, it upgraded its revenue and earnings guidance for FY22, driven by “increased demand” for the ASX share’s core business-as-usual services, and an increase in catastrophe activity during FY22. The catastrophe work was primarily in flood-affected regions such as northern NSW and south-east Queensland.

Johns Lyng upgraded its revenue forecast by $64.6 million to $867 million. Projected earnings before interest, tax, depreciation and amortisation (EBITDA) was upgraded by $4.3 million to $83 million. The fund manager remains “positive” on the business and it sees a “very strong” outlook for double-digit earnings growth over the next few years.

The post 2 little-known ASX shares this fund manager rates highly appeared first on The Motley Fool Australia.

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More reading

• ‘Strong growth’: Expert names 2 ASX shares to buy for the long run
• 5 ASX mining shares with ‘good margins regardless of commodity prices’: fundie
• ‘Superior growth outlook’: ASX share raking it in from climate change

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 Johns Lyng Group Limited. The Motley Fool Australia has recommended Johns Lyng Group 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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