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Shares in betting technology provider Betmakers Technology Group Ltd (ASX: BET) are among the ASX’s most shorted, with more and more short-sellers targeting the stock.

But it’s been on the up and up over the last month.

Right now, the Betmakers share price is 46 cents. That’s 15% higher than it was a month ago. Though, it’s still 45% lower than it was at the start of the year.

For comparison, the S&P/ASX All Technology Index (ASX: XTX) has lifted 10% over the last 30 days and has fallen 26% year to date.

So, what seems to be drawing short-sellers to Betmakers? Let’s take a look.

Why are short-sellers attracted to Betmakers shares?

Betmarkers shares’ short position has been increasing alongside its share price over the last month.

Indeed, 12.35% of the company’s stock was in the hands of short-sellers as of the most recent data provided by the Australian Securities and Investments Commission (ASIC), dated 1 August.

That means the company’s short position grew from 11.81% at the same point in July and from 2.84% on 2 August 2021.

It comes despite the company having posted a notable increase in revenue in July and announcing an on-market share buyback in June.

But, as my Fool colleague James points out, rising short interest in Betmakers shares might have a lot to do with the company’s valuation.

Betmakers currently boasts a market capitalisation of around $411.5 million. That’s despite its earnings being in the red.

The betting technology stock posted a $27.8 million loss for the first half of financial year 2022. That saw its earnings per share (EPS) come in at a 3.26 cent loss.

Meanwhile, it boasted around $111 million of cash and equivalents, making up more than half of its net assets.

Whether its earnings improved further over the second half will soon be seen. The company is expected to release its full-year earnings for last financial year on 29 August.

No doubt plenty of market-watchers – as well as short-sellers – will be taking a good look at its anticipated release.

The post Why are Betmakers shares attracting increased short interest lately? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why Alcidion, Betmakers, BrainChip, and Zip shares are racing higher
• BetMakers share price lifts as full year revenue surges 370%
• These are the 10 most shorted ASX shares

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 positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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The Australian Foundation Investment Co. Ltd (ASX: AFI) share price has travelled in circles over the past couple of weeks.

Following the release of the company’s preliminary full-year results on 25 July, shares in the listed investment company (LIC) opened at $8.14 apiece.

Fast-forward two weeks later, and AFIC shares finished at $8.10 on Friday’s market close. This implies a slight loss of 0.5% for the 14-day period.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained around 3.3%.

Ex-dividend around the corner for AFIC shares

Despite the general recovery on the ASX, the AFIC share price has been in a sideways channel of late.

This comes after the company reported an outstanding financial scorecard, particularly with net profit up 53.4% to $360.6 million.

AFIC shareholders might want to keep an eye out as the upcoming ex-dividend date approaches.

You will need to buy the company’s shares before market close tomorrow to be eligible for the final dividend. The ex-dividend date falls on Wednesday 10 August.

Historically, when a company reaches its ex-dividend day, its shares tend to fall after shareholders lock in the latest dividend.

When can AFIC shareholders expect payment?

If you’re eligible for AFIC’s final dividend, you will receive a payment of 14 cents per share on 30 August.

This brings its full-year dividend to 24 cents, which is flat from the previous financial year (FY21).

Management noted that its capital will fluctuate with market conditions, and in order to manage these, the dividend may be adjusted.

The final dividend is fully franked which means that you’ll receive franking credits to put towards your next tax bill.

AFIC share price summary

Over the last 12 months, the AFIC share price is down 5% following wild price swings since the start of June.

The company’s shares reached a 52-week low of $7.40 on 20 June, before sharply accelerating in the weeks thereafter.

AFIC commands a market capitalisation of roughly $9.96 billion and has a dividend yield of 3.15%.

The post Keen to bag the next AFIC dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• Why did the AFIC share price have such a top run in July?
• Why is the AFIC share price outperforming 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 Northern Star Resources Ltd (ASX: NST) share price has risen by more than 17% in the past month.

That makes the S&P/ASX 200 Index (ASX: XJO) gold mining share one of the better performers in the index in the last few weeks.

A key part of the picture for a commodity business is the outlook for the underlying commodity price.

As reported by by one of my colleagues Zach Bristow, the gold price has been rising.

The visit by US House of Representatives Speaker Nancy Pelosi to Taiwan seems to have stirred the pot between Taiwan and China. Pelosi was the highest-level US official to visit Taiwan in 25 years.

Reuters reported the visit could have impacted the price of gold and said “gold prices advanced on Wednesday as the dollar fell and US-China tensions rose”.

However, it was also reported Kinesis Money analyst Rupert Rowling thinks the turbulence may be “short-lived” and that “market focus will return to interest rates and the negative long-term impact that is likely to have on gold”.

Gold expectations

One of the interesting elements about gold is that not only is gold affected by normal supply and demand, but wider economic news can also impact gold prices globally.

Refinitiv Eikon analysis said:

Gold prices rebounded last week after labour market data showed that U.S. jobless claims hit [a] fresh 8 months high, however, anticipation of further rate hikes by the Federal Reserve limited gains.

Gold may hit US$1,650/oz if the Federal Reserve hikes the interest rate as expected.

Can the Northern Star Resources share price go higher?

Plenty of brokers seem to think it can.

A price target is where the broker thinks the share price will be in 12 months.

Ord Minnett rates it as a buy with a price target of $11.10. That suggests a rise of more than 30%. The broker thinks the business is trading at an attractive price to its underlying value.

UBS rates it as a buy, with a price target of $9.80. That’s a rise of 19%. But, the broker likes its potential growth.

The broker Macquarie also rates Northern Star Resources as a buy, with a price target of $10. That would be a rise of around 21%.

The post Is the Northern Star share price on the way back up? appeared first on The Motley Fool Australia.

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More reading

• Could inflation now be fully priced in to ASX 200 shares?
• Is Coles an underrated ASX 200 dividend share with potential?
• Why I think this boring ASX 200 share is anything but
• 5 things to watch on the ASX 200 on Monday
• Is the VAS dividend yield bigger than an ASX 200 index fund?

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 recommended Macquarie 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 Zip Co Ltd (ASX: ZIP) share price has been on a rollercoaster ride in 2022. But its future could be heavily influenced by how successful Afterpay is.

While Afterpay is no longer a listed entity on the ASX, investors can still get exposure to it through Block Inc (ASX: SQ2) shares.

Both have achieved strong market positions in Australia. But, Australia is only a small part of the global picture. Zip and Afterpay want to become global players in the buy now, pay later space.

Where does Zip operate?

The BNPL business generates the most revenue from the ANZ region. In the fourth quarter of FY22 it generated $79.6 million of revenue in ANZ. This represents growth of 2% quarter over quarter and 30% year over year.

Zip USA saw US$48.6 million of revenue – this was down 2% quarter over quarter and up 5% year over year.

In terms of the rest of the world, Zip is operating in Canada, Mexico, South Africa, the United Arab Emirates and Saudi Arabia (Spotii), Poland and Czech Republic (Twisto), Singapore and the United Kingdom.

Zip reported that rest of the world fourth quarter revenue was flat quarter on quarter. However, revenue was up 73% year over year (pro forma).

Zip is working hard to grow internationally, but it’s also trying to improve its profitability and reduce cash burn.

The company is focused on improving unit economics by achieving better credit outcomes across “credit decisioning, portfolio management and collections”. In the United States it’s expecting to see losses below 2% on a cohort basis before the end of the calendar year. In Australia, Zip said that previous actions are now positively impacting performance, resulting in a decrease in arrears. It said that it has experienced a “peak of losses” in Australia.

How does Afterpay plan to spoil Zip’s plans?

Zip shares could be influenced in the future by Afterpay’s plans.

In response to Credit Suisse analyst Timothy Chiodo regarding the new Discoveries tab in Square’s Cash App, Block chair and co-founder Jack Dorsey said:

This really gets at the heart of exactly why we made the acquisition of Afterpay in the first place, is because we believe that Cash App ultimately can drive a tonne of discovery for merchants all around the world, but especially around local merchants. And not just businesses but products and services that people would otherwise not have had signal around.

We believe that Cash App ultimately becomes a place that you want to check not on a weekly basis, but every single day, because it consistently gives you a good sense of your friends and families; the businesses around you; products and services that you’re interested in; offers, such as boost, all in one place.

We’re rolling it out to more and more people right now. But we were really excited about this because we believe that the biggest part of Afterpay is around connecting people with commerce and transactions with local merchants but also of merchants around the world. Afterpay is our solution around that. We think there’s a huge opportunity to make these connections, not just with the Afterpay merchants, but the entire Square ecosystem as well, which really speaks to our strengths in connecting these two ecosystem together.

So, Zip has its work cut out if it’s going to challenge that integrated offering from Afterpay.

Zip share price snapshot

Over the past month, the Zip share price has risen by around 130%. However, since the start of 2022, Zip shares have fallen by 70%.

The post Could Afterpay’s global ambitions threaten the future of Zip shares? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why Amcor, Arafura, Block, and Janus Henderson shares are dropping
• Did Zip really outgrow former ASX favourite Afterpay in the June quarter?
• Block share price tumbles 6% as quarterly earnings sink
• Block share price in danger of sinking following Q2 update

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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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Many S&P/ASX 200 Index (ASX: XJO) shares have seen much volatility in recent months, partly due to inflation. But, have investors now factored inflation into their investment thinking?

Current inflation levels have been driven by a number of factors. One has been the rising cost of fuel. This coincided with the Russian invasion of Ukraine that saw the oil price jump several months ago, but the oil price has been falling in recent weeks.

As well, many other commodity prices have dropped noticeably in recent times, such as iron ore and copper.

Analyst thoughts on inflation

No one can truly know what’s going to happen next. But, analysts can put together various pieces of information to get a good reading of what the next reported inflation figure may be. This, in turn, could help analysts predict what central banks may need to do to bring inflation under control.

According to reporting by the Australian Financial Review, NAB analysts said the following in a research note to clients last week:

The recent fall in oil prices, which are now trading below the levels immediately before Russia’s invasion of Ukraine, has contributed to the market’s perception that inflation is likely to peak soon.

NAB noted that the effect of lower resource prices will mean that the US Federal Reserve won’t need to increase interest rates as much in its bid to bring inflation down.

However, it was reported that the president of the Cleveland Federal Reserve, Loretta Mester, said the US cash rate could reach more than 4% to combat inflation.

Another factor that could impact inflation is China. The nation is a largest importer of Australian iron ore. In recent times, ongoing COVID-19 restrictions have slowed the Chinese economy. There is also uncertainty surrounding the Chinese property market with some people deciding not to pay their mortgages.

Regarding China, NAB said, according to the AFR:

After initial hopes China will step in to support its property sector, the lack of details is now raising concern over the demand for steel amid the prospect of a more subdued economic recovery which also remains clouded [on] Beijing zero-COVID policy.

How much further will the RBA increase interest rates?

At the start of August, the Reserve Bank of Australia (RBA) decided to increase the interest rate by 50 basis points (0.50%) to 1.85%.

The RBA board said that it “places a high priority on the return of inflation to the 2% to 3% range over time, while keeping the economy on an even keel”. The RBA noted inflation in Australia is the highest it’s been since the early 1990s.

It said there are widespread upward pressures on prices from strong demand, a tight labour market, and capacity constraints in some sectors of the economy. The floods earlier this year are also affecting some prices.

The RBA is expecting inflation to peak later this year.

Talking about expectations about interest rate increases, the RBA said:

The board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path. The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labour market. The board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

However, the interest rate increases are widely anticipated by investors, so ASX 200 shares may have already fully priced this in.

The post Could inflation now be fully priced in to ASX 200 shares? appeared first on The Motley Fool Australia.

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More reading

• Is Coles an underrated ASX 200 dividend share with potential?
• Why I think this boring ASX 200 share is anything but
• 5 things to watch on the ASX 200 on Monday
• Is the VAS dividend yield bigger than an ASX 200 index fund?
• What goes up when the share market crashes?

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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Investors looking for high levels of investment income will want to know about the two ASX dividend shares in this article picked as buys by brokers.

There are plenty of companies on the ASX that pay dividends. However, there aren’t too many that are expected to pay big dividend yields at the current prices.

From the shortlist of shares predicted to pay large yields, experts think only a few are actually worth buying due to being good value.

Let’s have a look at two of those buy-rated names.

MotorCycle Holdings Ltd (ASX: MTO)

This is an interesting, small-cap ASX share. As the name implies, it’s all about motorcycles. It has motorcycle dealerships selling both new and used motorcycles.

The broker Morgans currently rates the business as a buy with a price target of $3.23. This implies a rise of more than 30% over the next year, if the broker is right.

Morgans thinks the ASX dividend share’s profit will drop slightly in FY23. The broker estimates that MotorCycle Holdings is valued at 7.5 times FY23’s estimated earnings.

In other words, the broker thinks it looks cheap after a 20% drop in the MotorCycle Holdings share price drop in 2022.

For FY22, management said it expects to maintain current strong margins and have tight control of overheads. It’s continuing to actively pursue potential dealership acquisition opportunities. The business said it’s continuing organic growth with a broadening product offering in both retail and wholesale networks.

The targeted dividend payout ratio is between 50% and 70% of net profit after tax (NPAT). Morgans thinks MotorCycle Holdings will offer a grossed-up dividend yield of 11.3%.

New Hope Corporation Limited (ASX: NHC)

New Hope is a leading Australian coal miner.

It recently expanded its portfolio with a $94.4 million investment for a 15% interest in Malabar Resources – the flagship asset is the Maxwell mine, an underground metallurgical coal project located 10km southwest of Muswellbrook in the Hunter Valley. Construction of the project commenced in May 2022.

The Maxwell mine has an estimated life of at least 25 years, with more than 75% of the product suitable for steelmaking.

The miner is rated as a buy by the broker Credit Suisse, with a price target of $4.90. The broker expects the ASX dividend share to pay a grossed-up dividend yield of 34% in FY23.

New Hope said that while wet weather has impacted the business, it’s benefitting from the strengthening coal price.

According to Credit Suisse, the New Hope share price is valued at under 3 times FY23’s estimated earnings.

The post Here are 2 buy-rated ASX dividend shares with yields above 8% appeared first on The Motley Fool Australia.

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More reading

• How long can ASX coal shares keep this rally up?
• These ASX 200 coal shares are smashing 10-year highs on Tuesday
• Could ASX coal shares be set for a boost?
• Here are the top 10 ASX shares today
• Why Data#3, Netwealth, New Hope, and Pilbara Minerals shares are pushing higher

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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Experts have recently rated a few S&P/ASX 200 Index (ASX: XJO) shares as buys.

Share prices are changing all the time which can also change how attractive the value of a business is to investors. As well, updates are regularly flowing to investors, providing insights into the performance of businesses.

Experts like to look at ASX shares and give them a rating that indicates whether they are a buy, hold, or sell.

ASX 200 shares are often market leaders in what they do in Australia. For example, the index contains Australia’s biggest banks and retailers.

Let’s have a look at two of the latest ASX shares to have been rated as buys:

Domain Holdings Australia Ltd (ASX: DHG)

Domain is a leading property advertising portal business. Property owners can advertise their real estate on Domain’s website in a bid to attract as much interest in their properties as possible.

In May 2022, the company gave an update for the three months to 31 March 2022. It said that digital revenue increased by 25% and that the business had benefited from higher depth penetration and pricing. Domain also said it is choosing to invest in the business in a disciplined manner, while also being committed to ongoing profit margin expansion.

Specifically, FY22 costs are expected to increase in the “low-teens” range from the FY21 ongoing expense base of $195.5 million.

The broker Ord Minnett rates the company as a buy with a price target of $4.40. That implies a possible rise in the Domain share price of around 20% over the next year.

Based on its earnings projection, the Domain share price is valued at 33 times FY23’s estimated earnings.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a funds management business that aims to invest in high-quality fund managers and help them grow. It provides a number of administrative services for fund managers including distribution and client services, compliance, finance, legal, and technology.

The ASX 200 share recently reported its FY22 result for the 12 months to 30 June 2022.

It said net profit after tax (NPAT) grew by 14% to $67 million. Aggregate affiliate funds under management (FUM) was down by 6% over FY22 to $83.7 billion. However, aggregate retail FUM was up 4% to $21.1 billion at 30 June 2022.

Net inflows for the year were $0.6 billion and $2.2 billion for the six months ended 30 June 2022. Pinnacle said that 83% of its five-year affiliate strategies had outperformed as at 30 June 2022.

The business is also looking for further expansion opportunities. It’s committed to taking advantage of the “significant” offshore opportunity to “evolve into a global multi-affiliate by exporting its model”.

After seeing the result, the broker Macquarie decided to rate the business as ‘outperform’ with a price target of $11.78. This implies single-digit potential upside over the next 12 months. It thinks Pinnacle’s profitability can continue to please investors.

Based on the current Pinnacle share price, Macquarie thinks it’s valued at 23 times FY24’s estimated earnings with a potential grossed-up dividend yield of 5.2%.

The post Brokers just rated these ASX 200 shares as buys in August 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 top 10 ASX 200 shares today
• Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
• Pinnacle share price surges 13% on 2022 financial year profit growth
• Making money even while stock markets fall

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 positions in and has recommended PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Macquarie 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted share despite its short interest easing to 14.9%. Short sellers appear to believe that the travel market recovery could take longer than expected.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise again to 12.4%. This appears to be due to valuation concerns and weak investor sentiment in the betting industry.
• Block Inc (ASX: SQ2) has short interest of 11.4%, which is down slightly week on week. This payments company’s shares tumbled late last week after its outlook commentary disappointed the market.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.3%, which is down slightly week on week again. Much to the dismay of short sellers, this infection prevention company’s shares are up 25% since this time last month.
• Lake Resources N.L. (ASX: LKE) has short interest of 10.3%, which is down slightly week on week. This lithium developer’s shares have come under pressure this year amid the sudden exit of its CEO without comment and a short attack from J Capital.
• Regis Resources Limited (ASX: RRL) has short interest of 9.2%, which is up slightly week on week. This gold miner has been targeted by short sellers due to production issues.
• Zip Co Ltd (ASX: ZIP) has seen its short interest jump to 9.2%. Short sellers aren’t giving up on this buy now pay later provider’s shares despite a huge rebound recently. They appear to have doubts over the company’s profit targets.
• EML Payments Ltd (ASX: EML) has short interest of 8.4%, which is down sharply week on week. Short sellers may have been closing positions in this payments company in order to lock in gains after its shares sank deep into the red following a disappointing European update.
• Megaport Ltd (ASX: MP1) has entered the top ten with short interest of 8.4%. This network as a service provider is due to release its full year results this week. Short sellers don’t appear to believe the company will deliver on expectations.
• Mesoblast limited (ASX: MSB) has also entered the top ten with short interest of 8.3%. A series of disappointing trial results have been weighing on the biotech company’s shares in recent years. Short sellers seem to believe this trend will continue.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why Amcor, Arafura, Block, and Janus Henderson shares are dropping
• Did Zip really outgrow former ASX favourite Afterpay in the June quarter?
• Why did the Flight Centre share price underperform the ASX 200 in July?
• Block share price tumbles 6% as quarterly earnings sink
• Worried about how ASX 200 tech shares might perform this earnings season? Here’s what to watch

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., EML Payments, MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors looking at the Telstra Corporation Ltd (ASX: TLS) share price may be wondering if it’s an opportunity and will want to have a close look at the company’s upcoming FY22 result.

Telstra is scheduled to release its FY22 report on 11 August 2022.

It’s a significant result for the company. Not only does it come at a time when the ASX share market is experiencing much volatility, but it’s also the last result that outgoing CEO Andy Penn will deliver. The incoming CEO is Telstra’s current chief financial officer Vicki Brady.

Profit expectations

One of the main ways that investors like to judge a business is how much net profit after tax (NPAT) or cash flow it generates.

For Telstra, its profit has been under pressure for a number of years because of the shift to the NBN.

But, the company is now expecting to grow profit in the next few years.

The estimate on CMC Markets suggests Telstra could generate earnings per share (EPS) of 14.3 cents in FY22. Brokers like Credit Suisse, Morgan Stanley, and Ord Minnett all think that Telstra will generate approximately 14 cents of EPS.

If Telstra were to make 14 cents of EPS in FY22, that would put the current Telstra share price at 29 times FY22’s estimated earnings. But remember, profit is expected to rise from there as a result of the company’s T25 strategy.

Average revenue per user (ARPU)

One of the key statistics for Telstra is its ARPU, which is essentially how much money it brings in from each customer.

In the FY22 half-year result, Telstra said that it experienced strong mobile growth with earnings before interest, tax, depreciation and amortisation (EBITDA) growing by 25% for that segment. Post-paid ARPU went up by 5% and the number of post-paid services increased by 84,000.

Telstra said with its HY22 report that its continued focus on mobile network leadership and building value resulted in that ARPU growth. The telco recently announced it was increasing its post-paid mobile prices by the rate of CPI inflation. This could happen each year.

Wireless broadband

I’ll be keeping a close watch on what Telstra says about its wireless broadband service, powered by 5G.

A key reason for the profit decline in the last few years has been the loss of earnings due to the shift to the NBN. Now Telstra is handing a large amount of margin over to NBN Co.

But, if it can encourage households to switch to using a wireless 5G connection for their home internet, it could lead to more revenue and higher profit margins for the telco.

Telstra dividend

Of course, many investors will want to know about the Telstra dividend.

Telstra is aiming to keep paying an annual dividend of 16 cents per share until it’s able to grow the dividend and profit over time.

Therefore, the expectation is that Telstra will pay a FY22 final dividend of 8 cents per share, bringing the full-year dividend to 16 cents per share.

At the current Telstra share price, that translates into an expected grossed-up dividend yield of 5.7%.

The post Looking to buy Telstra shares? Here’s what to watch when the telco giant reports this week appeared first on The Motley Fool Australia.

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More reading

• Own Telstra shares? Here’s what to expect from its FY22 results
• Road to retribution: Can the Telstra share price continue its upwards trajectory under a new CEO?
• Expert says Telstra is a blue chip ASX 200 share to buy
• ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today
• Is the Telstra share price on the way back up?

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 positions in and has recommended Telstra Corporation 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 OZ Minerals Limited (ASX: OZL) share price could be one to watch closely on Monday.

This follows a major development that was announced by the copper miner this morning.

Why is the OZ Minerals share price on watch?

All eyes will be on the OZ Minerals share price this morning after the miner revealed that it has rejected a takeover offer from mining giant BHP Group Ltd (ASX: BHP).

According to the release, the company received an unsolicited, conditional and non-binding indicative proposal from BHP to acquire all shares in OZ Minerals for $25.00 per share in cash via a scheme of arrangement.

Based on the latest OZ Minerals share price of $18.92, this implies a premium of 32.1% for shareholders.

However, that wasn’t enough for the OZ Minerals board. With the assistance of its financial and legal advisers, the board unanimously determined that the indicative proposal significantly undervalued OZ Minerals and was not in the best interests of shareholders.

It is worth noting that the OZ Minerals share price is down materially from its 52-week high of $29.75. This appears to have been driven largely by copper price weakness in 2022.

OZ Minerals’ managing director and CEO, Andrew Cole, commented:

We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life Resource and Reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.

What now?

The OZ Minerals board and management team highlighted the strong ongoing support it has received from its stakeholders to date and advised that it will continue to work with them on building a best-in-class global copper business with the objective of maximising long term shareholder value.

Though, the story may not end here. The release notes that BHP is understood to have acquired a 5% stake in the company.

The post OZ Minerals share price on watch after miner rejects BHP’s $25 per share takeover offer appeared first on The Motley Fool Australia.

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More reading

• BHP share price has ‘drifted into attractive value territory’ with 25% upside: broker
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Looking to buy BHP shares? Here’s how the miner is gearing up to secure its share of booming EV demand
• Top brokers name 3 ASX shares to buy 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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