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The Corando Global Resources Inc (ASX: CRN) share price is up 7% after the coal mining company announced a massive earnings increase in its half-year FY22 results.

Shares in Coronado are currently trading for $1.615 apiece, up 6.6% on their previous closing price of $1.515.

The higher global price of coal sent the company’s adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) up a massive 3,204% from the HY21 figure.

Let’s check the details of the company’s results for the half year ending 30 June 2022.

Coronado’s half-year earnings highlights

• Revenue US$1,978 million, up 147.4% from HY21
• Net income US$562 million, up 685% from HY21
• Adjusted EBITDA US$849 million, up 3,204% from HY21
• Group average realised met price per tonne sold US$292.8/t, up 193.4% from HY21
• Half-year dividend declaration of US$125 million, or US 7.5 cents per CDI

Coronado’s revenues were spurred by an increase in metallurgical coal pricing, as well as higher global demand for steel. Another factor in its favour was the reduced global supply of coal during HY22 amid the conflict in Ukraine.

However, one headwind the company reported for this half of the year was lower sales and production volumes. These were affected by wet weather, maintenance, and geological problems, Coronado said. 

Another issue was higher costs per tonne sold. The company cited inflation, lower production volumes, and increased royalties as the main causes.

What else happened in FY22?

In June, Coronado was included in the S&P/ASX 200 Index (ASX: XJO).

The company also released a sustainability report outlining its plans to reduce emissions and better care for the environment.

Coronado’s share price slipped 3% amid the company’s annual general meeting in May. This selloff was despite the metallurgical coal index reaching a record price of US$670 per tonne in March.

What did management say?

Coronado Managing Director and CEO Gerry Spindler made the following comments regarding the company’s performance:

Coronado’s half-year Adjusted EBITDA eclipses the highest full-year Adjusted EBITDA ever reported in the history of Coronado. These strong results are due to the higher price environment, which has resulted in record price realisations for our high-quality metallurgical coal products, but also from the structural changes made to our business over the past 12 – 18 months that have allowed us to take advantage of the improved markets.

Spindler also gave guidance for what the rest of the year could look like:

As we look to the second half of 2022, the prospect of strong financial returns remains despite recent reductions in Metallurgical coal prices. Coronado’s capital investment in its operations drives the second half weighted production plans, which we anticipate will see us deliver production levels exceeding 2021 levels and lower second half costs.

What’s next?

The company cited a number of headwinds. These include the war in Ukraine, the continuing lockdowns in China, and the global demand for thermal coal leading to an increase in energy prices.

The company also said the increase in the price of coal is expected to revert back to median levels in the near future.

As such, Coronado has revised its guidance for FY22. 

The company’s mining cost per tonne sold has been increased to $79-$81, up from $69-$71 per tonne sold. The company expects its salable production (MMt) to fall in the low range of 18-19 and its Capex to fall in the high range of $170 million to $190 million.

Coronado share price snapshot

The Coronado share price is currently up 30% year to date and 68% for the last 12 months. 

The company has a current dividend yield of 12.5% and a market capitalisation of around $2.7 billion.

The post Coronado share price jumps on 3,200% earnings surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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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BHP Group Ltd (ASX: BHP) shares are in focus as the company is currently trying to buy the S&P/ASX 200 Index (ASX: XJO) copper miner OZ Minerals Limited (ASX: OZL).

BHP is a huge business. According to the ASX, it has a market capitalisation of $198 billion.

OZ Minerals is a pretty big business for the ASX, with a current market cap of $8.56 billion. However, it is absolutely dwarfed by BHP.

BHP’s bid for OZ Minerals was a cash offer of $25 per share. This was a 32.1% premium to the last closing OZ Minerals share price.

But, the board of OZ Minerals has already decided to reject the offer. BHP noted that the cash offer would deliver “immediate value” to OZ Minerals shareholders. It said it would also de-risk any value which may or may not be reflected in the OZ Minerals share price.

BHP’s CEO Mike Henry noted that the company is facing a “deteriorating external environment” and increased “operational and growth-related funding challenges”.

Is the offer for OZ Minerals good value?

According to analyst Dylan Kelly from broker Ord Minnett, the offer already “overvalues” OZ Minerals. Now, the $25 offer represents a new price floor that could increase in a “drawn-out sale process” as reported by The Australian.

Kelly also said that:

Compared to our previous discounted cash flow valuation of about $21 a share, it would appear BHP is overpaying relative to its fundamentals.

But, OZ Minerals is now “in play” in terms of a potential deal.

What would the takeover mean for BHP?

Reporting by the Australian Financial Review (AFR) pointed out that analysts at JPMorgan believe BHP should have tried to buy the business before 2020 when its share price was less than half what it is today. That was before the market had as much understanding about OZ Minerals’ growth projects.

OZ Minerals could go from 2% of BHP’s earnings before interest, tax, depreciation, and amortisation (EBITDA) to about 10% in the longer term.

The JPMorgan analysts said:

Aside from potentially making the Carrapateena block cave bigger, it’s hard to see the value uplift that BHP can create on OZL’s asset base…But it does make strategic sense.

OZL’s Prominent Hill underground asset is potentially sub-scale for BHP, however, should the company successfully convert the large, inferred resource into reserves, then at least it’s long life.

The AFR points out that OZ Minerals has two copper mines and BHP’s Olympic Dam (a copper, gold, and uranium deposit) is between them. Therefore, the deal would mean the combination of adjacent assets and the ability to share infrastructure to unlock extra capacity.

The AFR also reported that insiders had described the area as like a “chequerboard” because of how the copper was spread around.

More copper has been found 60km away at Oak Dam. But “people close to BHP” reportedly reject the idea that the bid for OZ Minerals suggests Oak Dam is “flawed or underwhelming”.

Why did Oz Minerals reject the offer?

OZ Minerals may make a deal hard to complete. It points out that there is a “strong long-term outlook for both the copper and nickel markets underpinned by increasing geological scarcity, global electrification and accelerating decarbonisation, to which OZ Minerals is highly leveraged.”

The board of OZ Minerals notes that the acquisition would deliver “significant synergies and other benefits” for BHP. The board thinks this is not reflected in the value of BHP’s proposal.

BHP share price snapshot

At the time of writing, the BHP share price is $39.07, down 0.13% for the day so far.

Over the past month, BHP shares have risen by 2.8%.

The post What could another acquisition mean for BHP shares? appeared first on The Motley Fool Australia.

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More reading

• OZ Minerals ‘completely in play’: Broker on BHP takeover bid
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher
• ASX copper shares explode by up to 34% following BHP takeover bid

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX 200 retail shares appear to be weathering the storm today despite consumer confidence falling. However, new figures from the ABS also show consumer spending lifted in the month of June.

Retail shares on the ASX 200 include JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Wesfarmers Ltd (ASX: WES).

Let’s take a look at what is impacting ASX retail shares today.

Consumer insights

JB Hi-Fi shares are 0.91% in the green today, while the Harvey Norman share price is up 0.12%. Meanwhile, the Wesfarmers share price is rising 1.20%. The S&P/ASX 200 Index (ASX: XJO) is up 0.16%.

ANZ Roy Morgan research released today shows consumer confidence fell 4.5% last week. Inflation expectations also lifted 0.1 percentage point to 5.6%.

Confidence on ‘future financial conditions’ dropped 5.5%, while confidence in ‘current financial conditions fell’ 1.9%.

ANZ head of Australian economics David Plank said:

Consumer confidence declined 4.5% last week, to its lowest levels since April 2020,as the RBA increased interest rates by 50 basis points for the third month in a row to 1.85%.

Household inflation expectations increased 0.1 percentage point to 5.6% despite petrol prices falling for a fourth consecutive week. Demand for housing has been dropping, along with house prices.

Meanwhile, a research report out of Westpac shows the consumer sentiment index has dropped 3% from 83.8 in July to 81.2 in August. Confidence has fallen 22.9% since November 2021, the report said, stating:

This reading is on a par with the lows of the Covid and Global Financial Crisis although still well above the lows during the late 80/s/ early 90’s recession.

While consumer confidence is down however, the ABS has released statistics today saying household spending jumped 10.2% in June. Transport spending lifted 22.7%, while clothing spending rose 16.3%. Spending in hospitality venues like hotels, cafes and restaurants surged 17.1%, while recreation and culture spending jumped 15.5%.

Head of macroeconomic statistics Jacqui Vitas said:

This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to COVID-19 were experienced across the country. 

Spending categories most impacted from COVID-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.

The post What’s impacting ASX 200 retail shares today? appeared first on The Motley Fool Australia.

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• What are you getting when you buy Wesfarmers shares on the ASX today?
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• Why is the Wesfarmers share price beating the ASX 200 today?

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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers 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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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.

Tesla (NASDAQ: TSLA) recently hosted its annual meeting in Texas, where shareholders voted in favor of a 3-for-1 stock split. The split itself has yet to be scheduled, but it will be Tesla’s second stock split in just over two years, and many investors see that as a bullish sign.

The pending stock split may have been the headline for some investors, but the most important part of the shareholder meeting was the commentary provided by CEO Elon Musk. He first touted Tesla’s profitability, noting that the company had achieved an industry-leading operating margin over the past year. That success stems from a relentless pursuit of efficiency through factory design and automation, and innovations like single-piece casting and low-cost battery cells. And Tesla is set to become even more efficient in the future.

To be clear, splitting a stock has no impact on a company’s market cap, a share’s intrinsic value, or important fundamentals like profitability. Splits simply make a stock more accessible by lowering the share price. But lowering the price is only necessary after significant share price appreciation, which implies strong execution from a business perspective.

Looking ahead, Musk says Tesla could achieve a production run-rate of 2 million vehicles by the end of this year, and he reiterated the goal of 20 million vehicles by the end of the decade. To make that happen, Tesla plans to build 10 to 12 Gigafactories over time, and the next factory location could be announced later this year.

With that in mind, is it time to buy Tesla stock?

Details from the Tesla shareholder meeting

The recently opened Gigafactory Berlin will reduce logistics costs by localizing the company’s European operations, meaning fewer cars will need to be shipped to Europe from the factories in the U.S. and China. Tesla also plans to implement 4680-style battery cells in earnest next year, a technology that will cut battery production costs in half. That’s especially impressive because Tesla already pays less to produce battery packs than any other automaker, according to Cairn Energy Research Advisors, and battery packs are the most expensive part of an electric car.

Tesla has an ambitious roadmap

Financially, Tesla is firing on all cylinders. Strong demand and unrivaled efficiency have fueled truly impressive growth over the past year. Trailing-12-month revenue rose 60% from the prior year to $67.2 billion and free cash flow soared 165% to $6.9 billion. But those figures account for a small fraction of what the company could be.

During the shareholder event, Musk noted that Tesla is equal parts software company and hardware company, echoing his belief that full self-driving (FSD) software will eventually be the most important source of profitability for the car business.

On that note, Tesla has a significant edge in FSD technology. Its vehicles have been equipped with autopilot hardware for years, enabling the company to capture more than 35 million miles (and counting) worth of autonomous driving data. That’s more than any other automaker, and high-quality data is the cornerstone of artificial intelligence.

Tesla currently trades at 15.1 times sales, an incredibly rich valuation for a car company. But Tesla may look more like a software company a decade down the road, which would make its current valuation quite reasonable. With that in mind, patient investors should consider buying a few shares of this growth stock right now.

With that in mind, Tesla has a robotaxi slated for volume production in 2024, and the company eventually plans to start an autonomous ride-hailing service. That could dramatically change the nature of the business. Robotaxis would likely generate huge sums of recurring revenue at very high margins. In fact, analysts at UBS Investment Bank say the robotaxi market will be worth at least $2 trillion by 2030, while Ark Invest analysts project ride-hailing platforms could generate $2 trillion in profits by 2030.

There is one more piece of the puzzle: the autonomous humanoid robot codenamed Optimus. Musk believes Optimus will ultimately be worth more than the car business, and that its success will make Tesla the most valuable company in the world in time.

Is Tesla’s stock a buy?

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

The post Tesla shareholders approved a 3-for-1 stock split — is the stock a buy? appeared first on The Motley Fool Australia.

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

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

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The Lake Resources N.L. (ASX: LKE) share price is up and away on Tuesday despite no announcements from the company.

At market open, the clean lithium developer’s shares were swapping hands for $1.125 apiece.

However, investors have been bidding up the company’s shares as confidence grows in the market.

During early afternoon trade, Lake Resources shares are fetching $1.26 apiece – up 17.21%.

Let’s take a look at what’s been driving the excitement around this company.

What’s driving the Lake Resources share price higher?

The Lake Resources share price is on the move following upbeat sentiment among the S&P/ASX 300 Metals and Mining (ASX: XMM) sector.

As such, the benchmark index, representing a number of companies that produce gold, steel, and/or precious metals, is up 0.9%.

For context, shares in peers Sayona Mining Ltd (ASX: SYA) and Core Lithium Ltd (ASX: CXO) are up 10.2% and 7.72%, respectively.

While Lake Resources’ last announcement was its quarterly report, its shares are continuing to strongly rebound. This comes after being sold off during June and July on the back of a short-seller attack.

Nonetheless, it seems that investors are closing their positions after the company was one of the most heavily shorted stocks.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow and then sell the shares, and buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As such, Lake Resources had 10.41% of its shares being shorted by investors, an improvement of 0.39% over the week.

Lake Resources share price recap

Despite its extreme volatility of late, the Lake Resources share price has zipped 97% higher in the past 12 months.

Renewed investor sentiment within the battery industry has helped support the share price.

Based on today’s price, Lake Resources presides a market capitalisation of roughly $1.29 billion.

The post Why is the Lake Resources share price powering up 17% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Lake Resources share price leaping 11% today?
• These are the 10 most shorted ASX shares
• Why did the Lake Resources share price lag the ASX 200 in July

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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ASX coal shares are in focus today amid a large steel maker issuing supply warnings.

Coal shares on the ASX include Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Limited (ASX: NHC). Others include Yancoal Australia Ltd (ASX: YAL) and Allegiance Coal Ltd (ASX: AHQ).

Let’s take a look at what is going on.

Opportunity to ‘double’ coking coal exports

Steel manufacturing giant Tata Steel is warning Indian companies may need to buy from Russia if Australia does not increase coal production.

Tata Steel Limited (NSE: TATASTEEL) CEO T.V. Narendran said in comments to The Australian:

The alternative to Australian coal is Russian coal. I know currently Russia is geopolitically not the best place to buy coal from, but going forward that is an option that Indian companies have..

He touted the “great opportunity” for the metallurgical coal industry” in Australia to invest and grow in India, adding:

Indian steel consumption or production is going to double in the next 10 years, which means there’s an opportunity for Australia to double its exports of coking coal shipments to India over the next 10 years.

Narendran will meet with the Queensland Government this week in a bid to build a deeper relationship with India and grow coal exports between Australia and India.

Metallurgical coal is going to be operating for quite some time to come, particularly in India.

I think…the conversation with the government is more about how
can we plan better for growth.

Whitehaven shares are lifting nearly 2% today, while New Hope shares are jumping nearly 3%. The Yancoal Australia share price is also rising more than 3% today, while Allegiance Coal is lifting nearly 6%.

The post ASX coal shares in the spotlight amid fresh supply warnings appeared first on The Motley Fool Australia.

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More reading

• Here’s the Whitehaven Coal dividend forecast through to 2024
• Here are 2 buy-rated ASX dividend shares with yields above 8%
• Clearly this is one of the cheapest ASX 200 stocks
• Why did the Whitehaven share price surge 28% in July?
• Here are the top 10 ASX 200 shares today

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.

What happened

The key catalyst driving Flow higher is news that its blockchain technology and Dapper Wallet product will play an integral role in Meta’s (NASDAQ: META) move into the NFT space. Instagram’s photo-sharing application will now support posting of NFTs using the Flow blockchain, providing a big boost for this project that was designed from the start to revolutionize the NFT space.

Today’s rally in crypto markets has taken many investors by surprise, given the “good news is bad news” reality we’re now seeing play out. Last week’s strong jobs numbers indicated to investors that the Federal Reserve could be less likely to take its foot off the gas pedal when it comes to rate hikes. Nonetheless, equity and crypto markets have surged higher, with the crypto sector up 3.8% in aggregate over the past 24 hours, as of 10:15 a.m. ET on Monday.

However, one cryptocurrency that has not-so-quietly moved into a top-30 spot in the crypto market cap rankings is Flow (CRYPTO: FLOW). This crypto project linked to non-fungible tokens (NFTs) has surged 13.3% over the past 24 hours as of 10:15 a.m. ET this morning. Over the past week, this token’s performance is even more notable, with gains of approximately 50% over this time frame.

So what

Flow’s blockchain technology appears to have caught the attention of Meta’s upper brass, with this purpose-built NFT platform getting the nod to be used in the company’s impressive NFT rollout. Reportedly, this international NFT expansion to more than 100 countries will enable users from around the world to post their non-fungible tokens minted on the Flow blockchain. 

Dapper Labs, the company behind the Flow blockchain, is well known for its portfolio of top NFT projects. Whether it’s CryptoKitties, NBA Top Shot, or UFC Strike, NFT investors have long sought out Flow’s collectibles, given this project’s first-mover status in many sports-related collectible NFTs. Instagram appears to be partnering with Flow given its position in what could be a massive market over the long term.

Now what

How successful Instagram’s foray into the world of NFTs will be is something that will be determined over time. But the vote of confidence that Flow investors received by this integration is noteworthy. From a technological standpoint, there’s a lot investors have to cheer about with this partnership.

Key metrics investors should watch from here are NFT transaction volumes on Flow’s blockchain, as well as user growth and adoption over time. Right now, Flow is one token with some serious momentum. Accordingly, should this broad-based rally continue, this is one project with outsize potential, at least in the near term.

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

The post This NFT-linked cryptocurrency just surged into a top-30 spot appeared first on The Motley Fool Australia.

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More reading

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• How did the BetaShares Metaverse ETF perform on its ASX debut?
• 5 tech stocks sending the Nasdaq higher on Wednesday
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Chris MacDonald has positions in Meta Platforms, Inc.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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When one looks at the current Fortescue Metals Group Limited (ASX: FMG) share price, one metric might immediately jump out. That would be this iron ore miner’s stupendous trailing dividend yield. Today, Fortescue shares are going for $19.17 each, up a healthy 1.11% so far this Tuesday.

At this share price, Fortescue’s trailing dividend yield comes in at an eye-catching 15.5%. If we consider that this trailing dividend yield is also fully franked, we must also consider that this yield grosses up to an even more ludicrous 22.14% if we include the value of this franking.

So is this really what investors can expect if they purchase Fortescue shares today? Does this make Fortescue a buy today for dividend income, or is this just a big dividend trap honeypot?

A dividend trap refers to a situation where an ASX share has a seemingly attractive trailing dividend yield. But when an investor buys the shares expecting big income, they are disappointed when the company turns around and cuts its dividend, essentially ‘trapping’ the investor.

So is this the case with Fortescue today?

Well, let’s see what one ASX expert reckons. Michael Maughan is head of the Tyndall Australian Share Income Fund. He recently shared his views on Fortescue with Livewire.

So Maughan acknowledges that “the miners have been the biggest part of the dividend pie over the last few years” on the ASX.

He notes that the current iron ore price is lower than it has been in 2022 today, but is still very high when compared to its long-term average pricing. As such, he stated that, “We expect the iron ore miners to be good cash flow generators and big payers going forward”.

But does this mean Fortescue’s mid-teens dividend yield is here to stay?

Are Fortescue shares a dividend trap today?

Well, not so fast, says Maughan. Here’s how he described Fortescue’s future dividend prospects:

There are two types of dividend traps. There’s the cyclical aspect and there’s the structural aspect. The cyclical aspect is you have companies that are going through cycles, the miners are a classic example. In times when the iron ore price is high, and in times when it’s lower.

If you were to value that company on last year’s earnings, when the iron ore price was US$220, that might not be the best benchmark to use upon which to value the company. And that came to bite. If you go back to a period like 2016 for the miners, that’s a classic example of that.

…Fortescue falls into that same bucket with miners. Yes, I would definitely not use last year’s yield as a way to value the company, because a yield in the high-teens is obviously too high. So if the market we’re using that yield, then the stock would be much higher.

So investors definitely shouldn’t count on Fortescue’s trailing dividend yield as a reason to go out and buy more Fortescue shares today, according to Maughan.

But that doesn’t mean Fortescue is a dud investment by any means. Chances are the miner will continue to pay out healthy dividends as long as the iron ore price remains historically elevated.

But a 15.5% yield going forward? That might be a bridge too far.

The post Are Fortescue shares a buy for income or are they a dividend trap? appeared first on The Motley Fool Australia.

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More reading

• AGL share price down amid Fortescue Future Industries hydrogen hub news
• What’s driving the Fortescue share price to an 8-week high today?
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Up 5% in a month, is the current Fortescue share price a buy or a sell?
• ‘World’s greatest concern’: Can Fortescue really help the planet AND its profit margin?

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 Flight Centre Travel Group Ltd (ASX: FLT) share price has been rangebound today and are currently 0.40% in the red at $17.58.

Shares in the travel retailer have been in sideways territory for the bulk of July–August, following a sudden nosedive back on 8 June.

Are Flight Centre shares a buy?

According to brokers covering the share, opinion is split between the group. Several changes were made to ratings post Flight Centre’s FY22 earnings.

The company narrowed its net-loss projections down from $225 million to $190 million at the upper range of guidance. It also increased its FY22 guidance, prompting several analyst revisions.

Flight Centre is rated a buy from 3 out of 13 analysts, with 7 urging the clients to presently hold positions, per Refinitiv Eikon data.

There are also 4 sell ratings from this list. However, the consensus of broker price targets is $18.88 per share, suggesting sentiment is tilted bullish.

This price objective implies a return potential of more than 6% from the current market price if the brokers are correct.

One broker who’s a little more cautious is Jefferies. Analysts at the investment bank led by M. Simotas foresee wages, reduced online sales, inflation and weaker sentiment as likely to impact Flight Centre’s FY23 earnings.

Simotas and team noted that airlines have cut their global emissions targets, a move that could materially impact Flight Centre’s top-and-bottom-line.

Despite this, it lowered its FY23 EBITA forecasts to a loss of $295 million from a $305 million estimated loss.

Meanwhile, researchers at rival investment banks UBS, Macquarie and Barclay Pearce are each neutral on the share as well, with the latter revising its rating up from a sell last month.

In the last 12 months, the Flight Centre share price has clipped a 19% gain.

The post Are we flying first class with Flight Centre shares? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why did the Flight Centre share price underperform the ASX 200 in July?
• Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector
• When did Flight Centre shares last pay a dividend?
• These are the 10 most shorted ASX shares

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 recommended Flight Centre Travel 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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The Mesoblast Limited (ASX: MSB) share price is sliding after resuming trade from a company-requested trading halt today.

Earlier this week we noted that Mesoblast shares were on ice as the company prepared to raise additional equity capital.

Today the company said it has completed the financing round via a private placement.

The Mesoblast share price is currently down 8.06% to 86 cents.

What did Mesoblast announce?

The company advised it has completed a $65 million equity raise today.

It did so through the issue of 86.7 million new ordinary shares via a global private placement. The placement was led by its largest shareholder, M&G Investments in the United Kingdom.

Mesoblast says the private placement was made at 75 cents per share, representing a 5% discount to the 30 trading-day volume weighted average price (VWAP). There were no associated warrants or options issued.

As a result of the capital injection, Mesoblast now has US$105 million in cash on hand. The company will use the funds partly for the launch of its lead drug candidate, remestemcel-L.

Mesoblast will also allocate money towards starting the phase 3 trial of its rexlemestrocel-L label.

The trial is investigating the drug’s efficacy in treating “chronic low back pain associated with degenerative disc disease”.

What did management say?

Speaking on the results, Mesoblast CEO, Dr Silviu Itescu said the company was “very appreciative of the ongoing strong support” from its major stakeholders.

“Our most advanced product, remestemcel-L, aims to save the lives of patients afflicted with SR-aGVHD, a condition with high mortality and in particular, an unmet need in children,” he added.

The company says it also has patent protection on its portfolio until 2041, at least, in all major markets.

The Mesoblast share price has fallen more than 55% in the past 12 months.

The post Mesoblast share price slides 8% following $65m capital injection appeared first on The Motley Fool Australia.

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More reading

• Why is the Mesoblast share price still not moving today?
• These are the 10 most shorted ASX shares
• Why is the Mesoblast share price on ice today?
• Why did the Mesoblast share price rocket 54% in July?
• 3 ASX All Ordinaries shares leaping 10% or more today

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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