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Is Novonix Ltd (ASX: NVX) considered an ASX lithium share?

ASX lithium stocks have been hogging the limelight in recent weeks. Thanks to massive (and mostly unexplained) jumps in valuation in recent weeks, ASX lithium stocks like Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR) are certainly in the spotlight this week. But can we count Novonix among them?

Novonix has been attracting plenty of attention of its own. The company has gained an eye-popping 54% over the past month alone, rising from $2.02 a share to the $3.11 it is commanding today.

Last month, we heard from Novonix when the company dropped its quarterly report for the three months ending 30 June 2022.

As my Fool colleague covered at the time, this saw the company report an operating cash flow loss of $7.9 million for those three months, and $9.2 million outflow from investing activities.

The company ended the quarter with $207 million in cash in the bank. However, receipts increased 25% over the quarter compared to the prior corresponding quarter.

But can we call Novonix an ASX lithium share?

Well, to put things straight, unlike Core Lithium or Liontown, Novonix is not a lithium miner or producer. It does produce graphite. But not lithium. But the company does work extensively with the future-facing metal. So we can argue that Novonix is really a battery technology company.

Yes it does work with lithium. One of Novonix’s operations involves using “an environmentally-friendly process to produce graphite anode material for lithium-ion batteries in the United States”.

Novonix also works to develop methods of analysing lithium-ion batteries. The company offers ultra-high precision coulometry (UHPC) cycling and cycling tests. These help with “characterization, development, and demonstration of lithium-ion-battery components”.

In this way, Novonix is arguably a lithium company. But it is perhaps more accurately described as a battery technology company. Unlike lithium stocks like Core Lithium or Liontown, Novonix, for example, wouldn’t benefit from high lithium prices in the same way these producers would.

So Novonix is arguably caught in the grey zone of lithium stocks. It’s certainly has involvement in lithium. But it is not a producer or a pure play lithium share like Core Lithium or Liontown.

At the current Novonix share price, this ASX battery tech company has a market capitalisation of $1.51 billion.

The post Is Novonix considered an ASX lithium share? appeared first on The Motley Fool Australia.

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More reading

• Novonix share price tumbles 6% on Friday. What’s going on?
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price leaping 11% on Thursday?
• Why is the Novonix share price having such a lousy start to the week?
• These 3 ASX tech shares had a cracking day on the ASX today

Motley Fool contributor Sebastian Bowen 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 GPT Group (ASX: GPT) share price is making a commendable move upwards today following the release of its interim results for 2022.

At the time of writing, shares in the diversified property group are 5.7% in the green. As a result, the group’s share price is swapping hands at $4.545 apiece. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.48% into positive territory on Monday.

GPT share price jumps on mixed numbers

• Funds from operations (FFO) improved 8% to $326.5 million compared to the prior corresponding period
• Net tangible assets (NTA) per security up 2.8% to $6.26
• Net profit after tax (NPAT) down 30% to $529.7 million
• Interim distribution down 4.5% to 12.7 cents per share
• Portfolio occupancy finished at 97.5%
• Available cash of $1,124 million at the end of the half

What else happened in the half?

Pleasingly for GPT shareholders, the six-month period involved another round of portfolio revaluation increases. In total, the group saw its assets increase in value by $219.5 million, taking the total valuation to $16.4 billion as at 30 June 2022.

GPT’s logistics portfolio was the greatest contributor to a heightened valuation during the half. Specifically, this segment increased 2.6% to $115.4 million as a result of leasing outcomes and higher rents. This segment’s solid performance might explain the positive GPT share price movement today.

Comparatively, the group’s office and retail portfolios experienced a $6.8 million (0.1%) and a $97.3 million (1.8%) increase respectively.

While GPT managed to achieve a 99.3% occupancy across its retail portfolio, the office market continues to struggle. For example, at 30 June the group recorded an occupancy rate of 92% across its portfolio. With more available leasing inventory, the office market was said to remain competitive.

What did management say?

Commenting on the result, GPT Group CEO Bob Johnston said:

The Group delivered a solid result in the half, despite the ongoing impacts of the global COVID-19 pandemic and the uncertain economic environment driven by high inflation and rising interest rates. All three business segments reported increased Funds From Operations on the prior corresponding period.

Further adding,

Ongoing structural tailwinds in the logistics sector saw continued momentum in tenant demand, driving vacancy rates lower and resulting in strong market rental growth. Our Logistics portfolio maintained high occupancy and we continue to make good progress with the build-out of our development pipeline and our partnership with QuadReal.

What’s next?

Looking to the future, management addressed the elephant in the room for the group’s FY22 guidance, interest rates.

The group highlighted the increased cost of debt and potential softening in valuation increases. Additionally, management stated it expects moderation in retail sales growth coinciding with higher rates in response to inflation.

Despite this, GPT Group is anticipating 32.4 cents per security in FFO for the full year.

GPT Group share price snapshot

The backdrop of a booming property market has failed to provide much assistance to the GPT Group share price so far in 2022. While the benchmark index is in the red by 7%, GPT shares are down by roughly 16.5%.

Based on the current valuation, the property group has a dividend yield of 5.4%.

The post GPT share price lifts despite 30% profit plunge appeared first on The Motley Fool Australia.

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More reading

• Stock market sell-off: How I’m continuing to make passive income
• Here’s why the Core Lithium share price is soaring 10% on Monday
• Paradigm Biopharmaceuticals share price freefalls 27% following $66m cap raise
• Westpac share price slips following release of Q3 update
• Nearmap share price jumps 30% on takeover news

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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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.

I have been entrusted with my family’s finances. It is not a task that I take lightly since a mistake on my part could leave us in the street. OK, that’s hyperbole, but it is the weight that I feel, and bear markets don’t make the weight any lighter. However, I have a playbook that I’ve lived by for years, and market sell-offs are actually a great time for me to keep building my passive income stream. Here’s how I make downturns work for me.

One of the suggestions you’ll find in Benjamin Graham’s iconic book The Intelligent Investor is to focus on companies with long histories of success. A quick way to find such companies is to look at names with long histories of annual dividend increases. Dividend Achievers (10+ years of dividend increases), Dividend Aristocrats (25+ years), and Dividend Kings (50+ years) are all great starting points. From there, you need to dig in a bit to find companies that are well run with modest leverage. Once you have a diversified list of names you like, don’t do anything. Just wait.

Safety first

I take my job as ensuring that my family has the financial wherewithal to handle financial adversity in relative stride. To that end, I have a laddered Certificate of Deposit (CD) portfolio with roughly six months’ worth of living expenses in it. One of the six CDs I own matures every two months and automatically rolls over if I don’t stop that process from happening. Essentially, I’ve always got access to some cash if I really need it, which makes buying stocks less stressful. The key is that this vital safety net is on auto-pilot. I thought about it once, setting it up, and now I never have to think about it again. I just know it’s there. 

“Keep it simple” is a vital mantra for me because I’m just not capable of juggling too many things at one time. I share this because this same logic is important for my investment approach, as well.

Focus on success

The market goes up and, as we’ve seen in 2022, down. Wait for the stocks you like to come to you. I don’t have a set buy point, but I generally only make an addition when the dividend yield of a company I like is trading at the high end of its historical yield range. It suggests that the price is at least cheap relative to historical norms. 

During the COVID-19 pandemic bear market, I bought real estate investment trust (REIT) Federal Realty (NYSE: FRT), which has an over 50-year-long streak of annual dividend hikes under its belt (it’s the longest streak in the REIT space). This REIT owns a small retail portfolio that focuses on wealthy regions with sizable populations. Development and redevelopment are key company skills. Retail was deeply out of favor during the pandemic, but this company has proven many times over that it can handle adversity and keep rewarding dividend investors like me.

During this year’s downturn, meanwhile, I added Texas Instruments (NASDAQ: TXN) and Medtronic (NYSE: MDT). Both are higher-dividend growth names with long histories of annual dividend hikes that had unique issues, but it took a bear to push them down to attractive levels finally. That said, investments pop up all the time, so I also added Kellogg (NYSE: K) in between those two bear markets when investors were downbeat on the iconic food stock because of company-specific problems, including a fire at a production facility and a strike. Kellogg’s dividend hasn’t increased annually but has trended regularly higher over time. Notably, Kellogg is actually up 15% or so this year as its production problems have abated.

Mindless adherence to a plan

Here’s the next big step: I set all of those new purchases to dividend reinvest, just like virtually all of my stock holdings (and, basically, like my CD safety net). It’s the ultimate keep-it-simple move for me. Based on my approach, I know I own companies that place returning value to shareholders high on the priority list. I’ve selected the dividend names I think are long-term winners, so I know I have great companies in my diversified portfolio. And I’ve set them on autopilot, leaving me to watch the quarterly dividend checks transform into additional shares of great companies. 

During bear markets, I actually find it comforting to see that I’m adding even more to a list of stocks that I own. Remember, however, that these are dividend stocks, so every share I add actually increases the passive income I generate. It’s a slow process, but my dividend income has headed steadily higher for years without me having to do much of anything. Simple is good; autopilot is even better. When I retire, I plan to start collecting those dividend checks to supplement my Social Security payments.

Slow and steady

I’d be lying if I said I didn’t pay close attention to my portfolio. I constantly monitor the news on my 20 or so stocks and listen to most of the earnings conference calls. If something fundamental changes, I’ll rethink my commitment to a stock. But what I don’t do is fret constantly about the price of my holdings going up and down in the always volatile stock market. I’ve basically worked that out of my process by focusing on dividends, dividend yield, dividend reinvestment, and my steadily growing stream of passive income. In my investing world, stock market sell-offs are just another opportunity to invest and reinvest in great dividend stocks.

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

The post Stock market sell-off: How I’m continuing to make passive income appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Core Lithium share price is soaring 10% on Monday
• Paradigm Biopharmaceuticals share price freefalls 27% following $66m cap raise
• Westpac share price slips following release of Q3 update
• Nearmap share price jumps 30% on takeover news
• Beach Energy share price tumbles 9% as production slides

Reuben Gregg Brewer has positions in Federal Realty Investment Trust, Kellogg, Medtronic, and Texas Instruments. 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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The Core Lithium Ltd (ASX: CXO) share price is taking off on Monday after the lithium developer released an update on exploration activities.

The update outlines two grants, notable lithium results, and an update on gold exploration.

Right now, Core Lithium shares are trading for $1.615 apiece, 9.86% higher than their previous closing price.

Let’s take a closer look at today’s news from the S&P/ASX 200 Index (ASX: XJO) lithium favourite.

Core Lithium share price surges on exploration update

The Core Lithium share price is surging higher on the back of an update on activities at the company’s Finniss Lithium Project and Anningie-Barrow Creek Project.

Finniss Lithium Project strikes gold

A more than 40,000 metre reverse circulation (RC) drill program has kicked off at the Finniss Project. It’s following up on prospects with excellent prior exploration results.

Drilling is also underway at the project’s BP33 resource, focusing on exploring the depth and strike extensions of the main pegmatite intrusions.

On top of that, the company has been exploring gold mineralisation at the project. Drilling has targeted five of 40 identified anomalies, finding gold at shallow depths.

The company said its explorations so far suggest gold at Finniss is comparable with that seen at Pine Creek Orogen, a gold district with reserves in excess of 18 million ounces.

Good news regarding the ABC Project

Core Lithium also reported findings at the Anningie-Barrow Creek (ABC) Project – described as a “lookalike to the company’s high-grade discoveries at the Finniss Lithium Project”.

Though, unlike the Finniss Project, spodumene at the ABC Project occurs at surface level.

The company has assayed 13 rock samples from the project’s Bismark Prospect, with six returning greater than 1% lithium oxide and a maximum of 4.78% lithium oxide.

Successful grant applications

Finally, it has successfully applied for two separate co-funding grants from the Northern Territory Geophysics and Drilling Collaborations program.

A $100,000 grant will go towards an ambient noise tomography survey at the Shoobridge Lithium Project.

Another $100,000 grant has been offered for a single deep diamond drill hole targeting the down plunge extension to the Sandras Lithium Deposit’s mineral resource.

Core Lithium share price snapshot

Today’s gain sees the Core Lithium share price nearing its all-time high of $1.68, reached in April.

The stock is currently trading 150% higher than it was at the start of the year and 366% higher than it was this time last year.

The post Here’s why the Core Lithium share price is soaring 10% on Monday appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• New records and looming deficits. Why ASX lithium stocks are in the spotlight
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Core Lithium share price rocketing 5% today?
• Why is the Lake Resources share price up so much more than other ASX lithium shares 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 Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is plummeting after coming out of a trading halt this morning.

At the time of writing, the biopharmaceutical company’s shares are fetching at $1.45, down 26.95%.

What’s driving the Paradigm share price lower?

Investors are scrambling to offload Paradigm shares amid an impending share dilution from the company.

According to its announcement, Paradigm advised it has launched a fully underwritten $66 million capital raise.

This comprises of a $45.7 million institutional placement to domestic and offshore investors and a one for 15 pro-rata non-renounceable entitlement offer of $20.3 million at $1.30 per share.

The company noted the placement received strong participation from domestic and offshore institutional investors. This will result in the issue of approximately 35.1 million Paradigm shares.

The record date for the entitlement offer is on Thursday 18 August 2022.

Eligible shareholders subscribing for their entitlement can also apply for additional shares under a top-up facility. However, this will be capped at 100% of an eligible shareholder’s entitlement.

The entitlement offer will result in the issue of approximately 15.6 million shares.

Following completion of the capital raise, the company will have a proforma cash position of $108.5 million. This will provide sufficient cash flow to see through its operations into the 2024 calendar year.

What will the funds be used for?

The monies raised from the capital raise will be used to fund a number of initiatives that include the following:

• Paradigm’s phase 3 clinical program and new drug application (NDA)-related activities;
• Business development-related activities;
• Product development-related activities (such as auto-injector); and
• Working capital.

Paradigm chair Paul Rennie commented:

I would like to thank all institutional Investors who participated in the placement, and I am delighted that all Paradigm shareholders now have the right to also invest under the fully under-written non-renounceable entitlement offer.

Personally, I will be subscribing for $300,000 of new Paradigm stock under the entitlement offer. Having a strong balance sheet is important to Paradigm so we can maintain or accelerate the momentum of our Phase 3 clinical trial. A strong balance sheet is important as we have commercial discussions in the future.

Paradigm share price review

It has been an interesting year for Paradigm shares, treading lower for most of 2022 until recently shooting higher.

The company’s share price reached a year-to-date high of $2.17 on 9 August before going into a trading halt the following day.

Based on today’s price, Paradigm has a market capitalisation of roughly $332 million, with more than 228 million shares outstanding.

The post Paradigm Biopharmaceuticals share price freefalls 27% following $66m cap raise appeared first on The Motley Fool Australia.

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More reading

• Up 90% in 2 weeks, here’s why the Paradigm share price has been halted
• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher
• Why is the Paradigm Biopharmaceuticals share price up 12% on Monday?

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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The Westpac Banking Corp (ASX: WBC) share price is in the red in morning trade.

Westpac shares closed on Friday at $22.66 and are currently trading for $22.42, down 1.06%.

Financial shares are broadly underperforming today, with the S&P/ASX 200 Financials Index (ASX: XFJ) down 0.33% at the time of writing compared to a 0.31% gain posted by the S&P/ASX 200 Index (ASX: XJO).

However, the Westpac share price is the only one of the big four banks in the red.

What are ASX investors considering?

The Westpac share price may be coming under some selling pressure following the release of the bank’s third quarter (Q3) results.

On the positive end of that release, Westpac reported that its capital, credit, and funding positions remained strong in Q3.

With investors increasingly cautious about the outlook for a potential uptick in bad debts as interest rates rise for the first time in a decade, among the good news was the 0.04% drop in the bank’s stressed assets to total committed exposures (TCE), which declined to 1.06% in Q3.

However, as my fellow Fool James Mickleboro noted this morning, “No details were provided in respect to its profits, margins, or cost cutting during the quarter. Investors may have to wait until its full-year results later this year for that unfortunately.”

That lack of detail may be seeing some investors hitting the sell button today.

Westpac share price snapshot

Westpac has been a strong performer in 2022, with the share price up 3.8% since the opening bell on 4 January. That compares to a year-to-date loss of 7% on the ASX 200.

The post Westpac share price slips following release of Q3 update appeared first on The Motley Fool Australia.

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More reading

• Westpac share price on watch following Q3 update
• 5 things to watch on the ASX 200 on Monday
• Up 12% in 30 days, is the Westpac share price still a buy?
• Top ASX dividend shares to buy in August 2022
• Own Westpac shares? Here’s when the ASX 200 bank will release its FY22 earnings

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 recommended Westpac Banking Corporation. 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 Nearmap Ltd (ASX: NEA) share price has jumped to its highest level this year after announcing it has received a takeover offer and providing a trading update.

The aerial imagery technology company this morning announced it has received a non-binding indication from Thoma Bravo L.P. to acquire its shares for $2.10 a pop.

The offer represents a 39% premium on Nearmap’s last closing price of $1.51 on Friday. Moreover, the offer is 67% above its six-month volume weighted average price.

What the takeover values the Nearmap share price at

The Nearmap share price rallied 33% to $2.01 in early trade on Monday, but remains below the bid price. This probably reflects the risk that the deal could fall through and the market’s view that Nearmap won’t get a second bidder.

Not that management hasn’t tried. It said it received other proposals but they weren’t good enough to be pursued further.

The indication of interest by Thoma Bravo was received on 6 July and both parties have been in advanced talks. This proposal was credible enough for Nearmap to grant the bidder non-exclusive due diligence that led to the $2.10 a share offer.

The takeover proposal values the Nearmap share price at around $1,055 million on a fully diluted basis.

Bittersweet news for the Nearmap share price

While the takeover news has excited the market, longer-term shareholders might still be disappointed. The shares were trading at over $4 in June 2019 and Nearmap undertook a share placement in 2020 at $2.77 a share.

Shareholders that came in on the share purchase plan paid a more attractive $2.30 a share. But that’s still below Thoma Bravo’s offer price.

At least the takeover (if successful) will remove the litigation risk to shareholders. Nearmap is being sued by its rival in the United States for technology infringement.

Details of the takeover

Thoma Bravo is one of the largest private equity firms in the world. It has more than US$114 billion in assets under management.

The proposal is subject to the usual conditions, such as regulatory approvals. Nearmap has to pay a break fee of up to US$3 million.

Nearmap’s trading update

Separately, Nearmap said that the group’s annual contract value (ACV) for FY22 will come in at the top end of its guidance.

Management expects ACV to hit $159.9 million at constant currency. This compares to its forecast of $150 million to $160 million.

It also said it was holding $93.7 million in cash as it only used around $20 million to support growth of the business (ex litigation costs). That’s around $10 million less than it originally thought.

The Nearmap share price fell 28% over the past year before today’s rally. In comparison, the S&P/ASX 200 Index (ASX: XJO) shed around 7% of its value.

The post Nearmap share price jumps 30% on takeover news appeared first on The Motley Fool Australia.

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More reading

• The ASX 200 company selling everything it makes due to its major competitor being out of the market: fundie
• Carsales share price on watch as full-year profit jumps 23%
• Why this leading fund manager’s favourite ASX 200 bank share is NAB
• Here are 3 ASX blue-chip shares reporting this week
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau has positions in Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nearmap Ltd. The Motley Fool Australia has positions in and has recommended Nearmap 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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The Beach Energy Ltd (ASX: BPT) share price is falling today amid the company’s FY22 earnings.

The energy company’s share price is currently trading at $1.69, an 8.65% fall. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is rising 0.56% today.

Let’s take a look at what Beach Energy reported to the market.

Beach Energy reports

Key points in Beach Energy’s results include:

• Production fell 15% to 21.8 million barrels of oil equivalent (MMboe)
• Underlying EBITDA leapt 17% on FY21 to $1.1 billion
• Underlying NPAT surged 39% to $504 million
• Total revenue jumped 13% to $1.8 billion
• $765 million net cash position and total liquidity
• A dividend of 1 cent per share to be paid on 30 September

What else did the company report?

Beach Energy’s underlying NPAT lifted despite lower production due to higher realised gas prices and revenue.

At the end of FY22, Beach had 283 MMboe of 2P oil and gas reserves, down 17% compared to the previous year. These reserves fell due to the Trefoil development getting pushed back and less exploration.

Unit field operating costs are forecast to rise from $11.74 per boe in FY22 to between $12 to $13 per boe in FY23.

Beach Energy announced a new emissions intensity reduction target of 35% by 2030.

The company completed offshore Otway Basin drilling, delivering a new gas discovery at Artisan field and six development wells within the Geographe and Thylacine fields.

Construction and development of the Waitsia stage two project in the Perth Basin is now underway.

Management commentary

Commenting on the results, the chief executive officer said:

Despite lower production, increased demand and pricing for our products saw a rise in earnings and cash flows.

Beach’s multi-basin strategy is to develop the assets within our portfolio, keep our plants processing at higher rates for longer, and in doing so maximise gas supply.

The benefits of this strategy were clearly evident in our financial results this year

What’s ahead

Beach is forecasting production of between 20 to 22.5 MMboe in FY23 compared to 21.8 MMboe in FY22.

Capital expenditure is predicted to be between $800 million and $1 billion, in comparison to $872 million in FY22.

Further commenting on the outlook for FY23, Engelbrecht said:

We have a busy schedule in FY23 completing the major projects that will deliver material free cash flow from FY24.

Key activities include connecting the Thylacine and Enterprise wells to the Otway Gas Plant, Waitsia stage two progress, Perth basin exploration drilling, ongoing Cooper Basin drilling, and planning for exploration and development activity in the Otway, Bass and Taranaki basins

Beach Energy share price snapshot

The Beach Energy share price has soared 53% in the past year, while it has lifted 38% year to date.

In the past month, Beach Energy shares have climbed 8%.

For perspective, the ASX 200 index has shed nearly 7% in the past year.

The post Beach Energy share price tumbles 9% as production slides appeared first on The Motley Fool Australia.

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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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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.

When the market is down as sharply as it has been in the first part of 2022, investing can be incredibly scary. It almost feels like you’re throwing good money after bad as every time you make a deposit, you see a huge chunk of it seem to evaporate before your eyes.

And as you watch your account balances shrink, it’s almost as if your future goals are slipping away before your eyes, too. Yes, when you look at your investments vs. a bear market, it can be ugly. Still, there’s a reasonable strategy you can use to come out on top.

First: Get your financial house in order

Bear markets often bring with them job losses. Even if you keep your job, life happens, and unexpected costs may show up at a time when your stocks are down. As a result, it’s important to have an emergency cash fund in an FDIC-insured account just in case. No, you won’t earn a huge return on that money, but you’ll have an extremely high likelihood of the cash being there if you need it. That can dramatically reduce your risk of being forced to sell your stocks when they’re down in a bear market.

In addition to the emergency fund, it’s critical to get your debts under control. It can be OK to invest when you have debt, but that debt really should have three key characteristics:

As its share price drops during a bear market, ask yourself why it’s dropping. It could be because the company’s future has soured or because the market is simply scared. If the company’s prospects still look strong but its stock price is weak, you just might have a legitimate bargain on your hands. Using a valuation technique like the discounted cash flow model to seek out those bargains can help you deliver better.

• It should have a low interest rate. It makes no sense to borrow money at a higher rate than you can reasonably expect to earn on your investments over time. Even if it’s close, paying off your debt has a guaranteed rate of return, while the stock market’s returns are never guaranteed.
• It should have a payment you can afford without wrecking your lifestyle. It’s tough enough to invest in a healthy market, but when the bear comes growling, the stress of a hefty payment makes it even harder to make smart decisions.
• It should play a key role in your future. If your debt offers you something critically important — such as a place to live, the opportunity to earn a living, or something you need to sustain your life — the benefits may very well be worth the risk vs. the costs of keeping the debt.

Next: Recognize what stocks really are

When all is said and done, a share of stock is nothing more than a partial ownership stake in a company. That share gets its value based on the company’s performance and prospects over time.

In that case, a bear market can actually be a good time to pick up more shares of a great business at an inexpensive price. That shift in perspective to focus on the business instead of the shares can go a long way toward helping you calm your nerves and make smarter long-term decisions.

Finally: Realize that nobody gets it right every time

Although investing can be a great way to build wealth over time, no investor gets it perfect, not even Warren Buffett. You will make mistakes. In addition, even if your process is sound, sometimes companies’ prospects will suddenly sour.

As a result, it’s important to have a diversified approach to your investments. Diversification won’t keep bad things from happening to your portfolio. What it can do is reduce the impact a single company’s stumble will have on your overall portfolio. That’s an important part of being able to stay invested during a bear market and giving yourself the best chance to emerge in a better spot on the other side of one.

Mix it together with a long-term focus to beat the bear

When you combine a solid personal financial foundation with a value-based investing approach and a healthy respect for diversification, you have a powerful toolkit for beating a bear market. Just remember that it will likely take time for the market to come to its senses, so have the patience to let your shares do their thing.

Over the long haul, a company’s market price should respond to its fundamental business strength, not just the market’s sentiments. With the patience to let that process play out, you can ultimately put that bear market behind you.

By making today the day you put these pieces together, you set yourself up with a great toolkit for coming out on top of a bear market. The sooner you get started, the sooner you can actually start fighting back. So, start harnessing the power of your inner bear fighter now.

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

The post Your investments vs. a bear market: How to come out on top appeared first on The Motley Fool Australia.

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Chuck Saletta 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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The Argo Investments Limited (ASX: ARG) share price is in the green in morning trade, up 0.8%.

Argo shares closed on Friday trading for $9.50 and are currently trading for $9.57.

This comes following this morning’s release of the ASX listed investment company’s (LIC) results for the financial year ending 30 June (FY22).

Here are the highlights:

Argo share price lifts on record profits

• Record full-year profit of $312.9 million, up 79.9% year on year
• Earnings per share (EPS) excluding demerger dividends of 34.3 cents, up 60.3% from FY21
• Final dividend of 17 cents per share, fully franked, an increase of 21.4% year on year
• Management expense ratio remained unchanged from the prior year at 0.14%

What else happened during the 2022 financial year?

The company noted that its record profits in FY22 were supported by all-time high dividend incomes it received from a number of stocks in its investment portfolio, with “significantly higher dividends” from S&P/ASX 200 Index (ASX: XJO) mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

The LIC’s profits were also boosted by $61.7 million in one-off, non-cash income from the merger of BHP’s oil and gas assets with Woodside Energy Group Ltd (ASX: WDS) along with Tabcorp Holdings Ltd’s (ASX: TAH) demerger of The Lottery Corporation.

The strong profits boosted the full year, fully franked dividend to 33 cents per share, up 17.9% from the 28 cents per share paid in FY21.

Argo said the year was a volatile one, particularly the second half, with interest rate rises, supply line disruptions, and Russia’s invasion of Ukraine. However, through its conservative investment approach, the company said it avoided investing in “many overpriced technology stocks and speculative mining businesses which fell sharply during the year”.

According to the release, this saw the Argo share price return 1.6%, outperforming Australian shares by 8.1%.

What’s next?

Looking ahead, Argo said the recent rally in ASX shares has been driven by expectations interest rates will top out sooner than previously believed.

The company cautioned, however, that, “Despite the general optimism, current indicators provide conflicting signals for the trajectory of the Australian economy.”

On the plus side of the ledger are resilient consumers, companies with strong balance sheets, and record low unemployment. Areas of concern are rising interest rates and the impact on homeowners, continuing disruptions and uncertainties from COVID, and geopolitical unrest.

Argo concluded:

While we expect the Australian and global economies will continue to confront challenges in the immediate term, Argo remains well-positioned with a strong balance sheet, no debt and cash on hand to capitalise on likely market volatility.

We continue to take a long-term share market view and consistently apply our investment approach which has stood the test of time since 1946.

Argo share price snapshot

So far in 2022, the Argo share price is down 6%, compared to a year-to-date loss of 7% posted by the All Ordinaries Index (ASX: XAO).

Longer term, Argo shares have gained 19% over the past five years.

The post Argo share price lifts on record 2022 financial year profit results appeared first on The Motley Fool Australia.

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• Own Argo shares? Here’s what you’re invested in

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.

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