Tag: Motley Fool

S&P/ASX 200 Index (ASX: XJO) energy shares look to be missing out on some potentially game-changing funding.

ASX 200 energy shares, including AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG), alongside smaller energy shares outside the ASX 200 like Genex Power Ltd (ASX: GNX), are all working to transition toward cleaner and eventually wholly renewable energy sources.

Net zero by 2050 comes with a hefty price tag

According to Sohel Azad, an Islamic finance expert at Deakin Business School:

Public pressure to develop large-scale, high-cost, renewable energy infrastructure is huge. Australia has a bold plan to transform its energy market. Prime Minister Anthony Albanese plans to legislate ambitious carbon reduction targets, including net-zero by 2050, and the need to strengthen energy generation capabilities has only been exacerbated by the current gas crisis.

But the costs of developing renewable energy infrastructure on a national level can be prohibitive. Which is why Azad points to the as yet untapped potential of additional international funding sources to help Australia go green.

ASX 200 energy shares missing out on ‘massive untapped demand’

According to Azad, sharia-compliant Islamic bonds would likely see strong demand to support green energy projects in Australia, like large-scale battery grid storage.

The bonds, called sukuk, don’t pay interest to their holders. Instead, they’re classified as securities, backed by tangible assets which enable investors to garner a share of the profits (or losses) when the assets are sold or traded.

Azad says that selling sukuk on the ASX could offer investment certainty for the energy transition.

Sukuk can only be used on ethical investments, “a natural fit for funding green energy projects”.

“Sukuk has already been introduced in many international markets and Australia must be quick to take advantage of the opportunities,” he said.

And the opportunity appears vast, with Deakin estimating Islamic finance is almost a $3 trillion global industry.

Which could open the door to some hefty funding for ASX 200 energy shares’ green projects.

“We simply don’t have the public or private funds in Australia to deliver some of these ambitious projects,” Azad said. “By selling sukuk on the ASX, and cross listing in other exchanges overseas, the government and corporates can attract more foreign investment in renewable energy projects.”

Azad added:

There is a massive untapped demand from Islamic investors for sustainable investment opportunities like this that are sharia compliant, and Islamic finance firms are particularly interested in investing in projects that address the United Nation’s Sustainable Development Goals.

The post ‘Massive untapped demand’: The $3 trillion opportunity ASX 200 energy shares could be missing appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘Alarming’: ASX 200 energy shares lift despite increasing government pressure over supply outlook
• No deal: Genex share price lifts as $300m takeover bid rejected
• Can the AGL dividend bounce back this earnings season?
• What’s been impacting the AGL share price this week?
• ‘Extraordinarily challenging quarter’: Origin share price lifts despite $2.2b write down

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.

from The Motley Fool Australia https://ift.tt/o8Q1ZPS

The Sezzle Inc (ASX: SZL) share price is up 7.55% at lunchtime on Wednesday, with fellow buy now, pay later (BNPL) player Zip Co Ltd (ASX: ZIP) also up by 9.02%.

Other ASX BNPL shares are also well into the green today, including Splitit Ltd (ASX: SPT) up 12.77%.

There’s been new momentum in the BNPL space in recent weeks. The Sezzle share price is up — wait for it — 256% over the past month. The Zip share price has gained 175% over the same timeframe. Splitit shares are up 92%, Block Inc CDI (ASX: SQ2) is up 31.64%, and Humm Group Ltd (ASX: HUM) is up 15%.

What’s the sizzle on the Sezzle share price?

There is some price-sensitive news out of Sezzle today with a revolving credit facility amendment.

However, the lift in the Sezzle share price likely has nothing to do with this announcement. It simply appears to be a case of the BNPL sector coming back.

To recap, FY22 was the year from hell for BNPL shareholders. As my Fool colleague Brooke reports, some BNPL shares tumbled more than 90%.

Among the elements messing things up for BNPL shareholders were new competition, and concerns that rising inflation and interest rates could curb people’s spending and, thus, their use of BNPL services.

The Commonwealth Bank of Australia (ASX: CBA) launched its StepPay offering and National Australia Bank Ltd (ASX: NAB) launched NAB Now Pay Later. News that Apple Inc may soon launch its Apple Pay Later offering in addition to PayPal Holdings Inc scrapping its late fees also hurt ASX BNPL share prices.

Zip also canned its proposed takeover of Sezzle in early July “in light of current macroeconomic and market conditions”.

Are BNPL shares back in vogue?

So what’s changed? It’s still unclear. Just last week, the Sezzle share price exploded before the ASX called time out to ask the company if it knew why.

In its response, Sezzle said it believes “investors led the increase in trading activity, because of the sector having been significantly down in recent weeks”.

So, maybe it’s just a simple case of investors deciding BNPL shares are too cheap to ignore now.

Plus, there’s been some good news from the main BNPL players recently.

Sezzle shares soared last Friday after the company released its FY22 Q2 update. Sezzle told the market it expects to become profitable in the next six months, which is a huge deal.

Previously, Zip also released a pleasing quarterly update.

The post Why is the Sezzle share price surging 8% on Wednesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 10%, what’s going on with the Zip share price today?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Can ‘Operation Blue Sky’ take Zip shares up the path to profitability?
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Bronwyn Allen has positions in ZIPCOLTD FPO. 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 Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/DCF8NtY

The S&P/ASX 200 Index (ASX: XJO) is having another lacklustre kind of day so far on Wednesday. At the time of writing, the ASX 200 is down by 0.52%. But it’s another story when it comes to the Zip Co Ltd (ASX: ZIP) share price.

Zip shares are on fire today. The buy now, pay later (BNPL) share is presently up a pleasing 8.2% at $1.32 a share. But earlier today, Zip climbed even higher, hitting $1.36 a share. That was a rise worth more than 10.6% at the time.

All of this was despite an initial fall for the BNPL share this morning after market open. At open, Zip actually fell quite heavily, sinking as low as $1.20 a share.

So there has certainly been some notable volatility with this company today.

So what’s going on with Zip today that might explain this rather erratic behaviour?

Why is the Zip share price bouncing around today?

Well, unfortunately, it’s anyone’s guess. Zip hasn’t released any new news, developments or announcements today whatsoever. Indeed, Zip has not released any price-sensitive ASX news since the release of the company’s quarterly update back on 21 July.

But that doesn’t mean today’s dramatic boost is an isolated incident. Zip shares have been incredibly volatile for the past month or so.

The BNPL share had a cracker of a month over July, rising from around 44 cents on 30 June to $1.65 a share on the last trading day of July. That’s a monthly gain of 275%. Yowza.

But the past week has delivered mostly massive share price moves for Zip, both positive and negative.

Last Friday saw the company fall 25%, followed by a 7% drop on Monday. Then we had a 15% rise yesterday, and now another 8% or so so far today. What a rollercoaster.

So it seems today’s moves are just a continuation of this incredible volatility that has come to the Zip share price in recent days and weeks. Who knows what tomorrow will bring…

This ASX 200 BNPL share has a market capitalisation of just over $839 million at the current Zip share price.

The post Up 10%, what’s going on with the Zip share price today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Sezzle share price surging 8% on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• Here’s why the next bull market may have already begun
• 3 ASX 200 shares rocking new, multi-year highs on Tuesday
• Here are the top 10 ASX 200 shares 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 positions in and has recommended ZIPCOLTD FPO. 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.

from The Motley Fool Australia https://ift.tt/lDWwOc0

The Commonwealth Bank of Australia (ASX: CBA) share price has had a great month.

On 4 July, the S&P/ASX 200 Index (ASX: XJO) bank share closed at $91.45. Its shares are currently trading for $100.58, up 10% in a month.

With a big month of gains behind it, is the CBA share price now fully valued?

For some greater insight into that question, we defer to JP Morgan executive director Andrew Triggs.

RBA rate hikes and net interest margins

The Reserve Bank of Australia’s steady path of interest rate hikes, with another 0.50% increase announced yesterday, has the potential to offer some tailwinds for the CBA share price as the bank can increase the net interest margin (NIM) it pockets on its loans.

Of course, all the banks could come under pressure if new mortgage loans fall precipitously or bad debts rise more than currently forecast.

As for net interest margins, Triggs said (courtesy of The Australian), “CBA reported minus 4bps [-0.04%] of NIM pressure in Q3 but we see an improved NIM in Q4 on early benefits of rate rises.”

Triggs said that he expects slightly higher costs for the big bank in the second half of FY22. However, he believes investors will be primarily focused on the NIM outlook, saying the CBA share price is likely to be more influenced by RBA rate hikes due to its higher leverage to the increased cash rate.

“We expect signs of a very healthy underlying franchise and CBA should be most leveraged to a rising cash rate,” he said. “However, with the stock trading at a 50% 12-month forward PER [P/E ratio] premium to peers this looks more than in the price.”

At the current price, CBA trades at a P/E ratio of 19 times.

By comparison, Australia and New Zealand Banking Group Ltd (ASX: ANZ) trades at a P/E ratio of 10.1 times while National Australia Bank Ltd (ASX: NAB) trades at a P/E ratio of 15.3 times.

JP Morgan has an $83.80 target for the CBA share price and is underweight on the stock.

CBA share price snapshot

With a big month behind it, the CBA share price is now down less than 1% in 2022. That compares to a year-to-date loss of 8% posted by the ASX 200.

The post Up 10% in a month, is the CBA share price now fully valued? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s the CBA dividend forecast through to 2024
• Here’s what’s happening with CBA shares this week
• Can investors bank on a dividend surprise from CBA shares this earnings season?
• Why did the ANZ share price smash the other ASX 200 banks today?
• Own CBA shares? Union labels bank ‘irresponsible’ following major COVID change

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.

from The Motley Fool Australia https://ift.tt/RmSC4BW

The Imugene Limited (ASX: IMU) share price has lifted into the green in afternoon trade on Wednesday.

At the time of writing, the share is swapping hands 3.26% higher at 23.75 cents apiece. For context, the All Ordinaries Index (ASX: XAO) is down 0.35%.

Imugene bounced from a 52-week low of 14 cents on 14 June and now trades around 70% higher off that mark, or around 22% in the past month.

What’s up with the Imugene share price?

It had been all downhill for Imugene shareholders in the eight months leading to June. Shares had reverted from a peak of 60.5 cents on 9 November and sailed down to yearly lows by then.

However, healthcare shares have caught a bid in the new financial year, with the S&P/ASX Health Care Index (ASX: XHJ) up around 10% on the month.

The moves appear to have inflected positively on the Imugene share price, with both instruments moving in relatively close succession of each other this year to date, as seen below.

Meanwhile, the share is rated a buy from 100% of the brokers covering the company, according to Refinitiv Eikon data.

The consensus price target from this list is 56 cents per share, implying a considerable amount of upside potential should the brokers be correct.

Further, Immugene released its quarterly results last month, reinstating positive results from its final HER-Vaxx HERIZON Phase 2 trial.

It also noted a cash balance of approximately $100 million dollars leaving the quarter. Meanwhile, the company spent $8.1 million on research and development for the quarter.

In the last 12 months, the Imugene share price has slipped more than 20% into the red, and is down 40% this year to date.

The post Up 22% in a month, can the Imugene share price extend its rally? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why is the Imugene share price sinking 13% this week?
• Why Appen, EML, Imugene, and Nanosonics shares are sinking
• ASX 200 midday update: ANZ’s capital raising, Link jumps, Zip’s Q4 update
• The Imugene share price has rocketed 77% in a month. What’s going on?

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.

from The Motley Fool Australia https://ift.tt/r1gbL6V

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

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

What happened

Shares of Netflix Inc (NASDAQ: NFLX) gained 28.6% in July, according to data from S&P Global Market Intelligence. After two disappointing earnings reports and a gloomy first half of the year, the digital-video veteran presented a rosier picture of its subscriber growth trends in July’s second-quarter update.

Investors were quick to embrace that bullish morsel, sparking several days of rising share prices.

So what

Netflix’s subscriber count fell in two straight quarters, including a loss of 1 million accounts in the second-quarter report. Management signalled an end to that downtrend, forecasting the third-quarter figure to hit an all-time high of 221.67 million global paid memberships.

At the same time, the second-quarter results were a mixed bag. Earnings came in above expectations but revenue fell slightly short of guidance and analyst estimates. Furthermore, revenue growth should continue to slow down in the third quarter as the year-over-year growth rate drops to roughly 4.7%, down from 8.6% in the second quarter.

But none of that mattered. Investors and analysts are still laser-focused on Netflix’s subscriber growth, so that’s the guidance target that wrote all of the company’s headlines for this quarter.

Now what

That extreme focus on subscriber growth is a mistake. That used to be the most important figure in Netflix’s quarterly reports, but the company is shifting gears as we speak. The streaming video service is now paired with a growing portfolio of mobile games. An ad-supported service tier will soon be available for price-sensitive consumers.

Netflix is also experimenting with different methods to collect revenue from people using the platform for free via shared passwords. Notably, some of these forward-looking initiatives should add to Netflix’s top and bottom lines without lifting the subscriber count. Therefore, subscriber growth shouldn’t be the headline-writing metric anymore.

So the stock posted a sharp gain of almost exactly 30% in July, but that boost started from a multiyear-low market bottom. Netflix stock is still a tremendous bargain, trading 35% lower in 2022 and 57% below November’s all-time highs.

These discounts will only last until market makers wise up to the shifting direction of Netflix’s business goals. It could take a few quarters before that message really sinks in, much like it took about two years before the shares fully recovered from the Qwikster debacle — also known as the start of the game-changing digital streaming era.

It looks like history is about to repeat itself here. So why not grab some Netflix stock while it’s cheap?

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

The post Netflix shares rose 29% last month, but the stock is still cheap appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Netflix is the worst-performing stock in the S&P 500. But is it a buy?
• Netflix’s subscriber loss sell-off: Should you really ditch the stock?
• Netflix still has a long way to go
• Why did the Netflix share price lift despite losing 970,000 subscribers?
• The end of ‘Stranger Things’ might actually be a boost for Netflix

Anders Bylund has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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.

from The Motley Fool Australia https://ift.tt/uR6fNCM

The Altium Limited (ASX: ALU) share price has moved in circles since the company last reported its results in February.

This comes as the electronic design software company tries to navigate its way through the current challenging market environment.

At the time of writing, Altium shares are edging lower to $30.89, down 1.03% for the day.

This means its shares are down 10% from the time when the company delivered its H1 FY22 financial scorecard.

Below, we take a closer look to see if investors can learn anything from the company’s last earnings season.

What happened in the first half of FY22?

During February 2022, Altium delivered its half-year results for the 2022 financial year to the market.

Despite reporting double-digit growth in sales and profits, investors heavily sold off the company’s shares by more than 9%.

This appeared to be in relation to investors expecting more from the company’s FY22 outlook.

While Altium shares staged a mini-revival in the following weeks, it was short-lived as market confidence deteriorated.

External factors such as rampant inflation, aggressive rate hikes and softer earnings on Wall Street attributed to the cause.

Consequently, Altium shares tumbled to a 52-week low of $24.32 on 12 May before travelling in a sideways channel.

It has only been in the last 4 weeks that its shares have ticked up a notch as the broader market begins to recover.

What should investors look out for?

With Altium due to report its full-year results on 22 August, investors may be wondering what to expect.

Altium upgraded its full-year revenue to be at the top end range of its previous guidance range. This is expected to be between US$213 million to US$217 million in revenue, representing 18-20% growth.

However, management is forecasting the EBITDA margin to be towards the low-end guidance range of 34-36%. This is due to the company pursuing “new cloud and enterprise sales roles in an increasingly competitive talent market.”

Annual revenue growth (ARR) is projected to come between 23-27% for the full year.

Looking further ahead, Altium is confident of achieving US$500 million in revenue, 100,000 subscribers and 95% recurring revenue for FY25/26.

In addition, one broker believes that the electronic design software company will achieve its targets in the near term.

As reported by my Foolish colleague James, Bell Potter noted Altium has taken a different approach in FY22.

It commented on how management is aiming to boost subscriber numbers over revenue growth for the second half. While this may put the above guidance at risk, Bell Potter doesn’t think this will happen.

As such, its analysts have a buy rating on Altium shares along with a price target of $34 apiece. Based on the current level, this implies an upside of 10%.

Altium share price snapshot

In 2022, the Altium share price has fallen 32% on the back of weakened investor sentiment across the tech sector.

For context, the S&P/ASX All Technology Index (ASX: XTX) is down 25% over the same time frame.

Altium has a price-to-earnings (P/E) ratio of 97.75 and commands a market capitalisation of roughly $4.06 billion.

The post How did the Altium share price respond last earnings season? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 outstanding ASX growth shares brokers rate as buys
• 3 fantastic ASX tech shares experts say are buys
• Own Altium shares? Here’s what to expect from its FY22 results
• Broker names 2 ASX growth shares to buy now
• 3 reasons I think Altium is a top ASX growth share

Motley Fool contributor Aaron Teboneras has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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.

from The Motley Fool Australia https://ift.tt/Hcybksf

The Ramsay Health Care Limited (ASX: RHC) share price has been stubborn this week. This is despite news of the termination of the company’s agreement with health insurance provider Bupa. 

On the day of the announcement yesterday, the Ramsay share price closed at $70.57, slightly lower than its previous close. Currently, shares in the private healthcare operator are down 0.09% to $70.50 apiece.

Why the Ramsay share price held steady

Negative news tends to push down a company’s share price. But in this instance, Ramsay had already flagged its notice of termination of the Bupa contract in May. So, the market saw this coming. 

Yesterday, Ramsay confirmed it could not reach a resolution on key terms of a new contract. As such, it decided to part ways.

For patients of Ramsay who are insured with Bupa, the termination means the contractual and agreed transitional arrangements apply for a period of at least 60 days. As a result, a Bupa-insured customer is required to pay the difference between what Bupa pays out and Ramsay’s total hospital fees. 

Ramsay also noted it is liaising with impacted patients to assist with providing alternatives, which include changing health funds. 

Although the agreement has been terminated, both parties are still on speaking terms in the hope of striking a new agreement.

The rise of private health insurers

According to a statement by the Australian Medical Association (AMA) in May 2022, “some larger private health insurers were increasingly trying to use their market power to squeeze private hospital operators in order to improve their own bottom line”.

Evidently, Ramsay is not budging given its market position. However, this could prove to be a risky move amid the continued shortage of nurses pushing up wage expenses, as well as supply chain pressures. 

Meanwhile, private health insurers have benefited from the pandemic, boosting their bottom line over the last two years. 

It appears private health insurers are in a better position to negotiate terms and if more negotiations break down, it could mean Ramsay is facing a genuine power shift over the short to medium term. 

As a result, this could spell trouble for the Ramsay share price. The company might need to pay more to private health insurers to secure patients, leading to lower returns on capital.

Monitoring the market share of the dominant private health insurers could be a sound method of determining who is winning the arm wrestle.

The post What’s been impacting the Ramsay Health share price this week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• Looking for value: The ASX shares this fundie is holding amid rising inflation
• 2 ASX shares in healthcare ripe to buy right now: experts
• How many global mega deals involved ASX 200 shares in the first half of 2022?

Motley Fool contributor Raymond Jang 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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Mawesc0

In the midst of one of the most uncertain periods in ASX investing we have seen in years in 2022, it can be hard to decide where to deploy one’s capital. The ASX has hundreds of individual shares to choose from, after all.

And with concerns over inflation, rising interest rates, geopolitics and a possible looming recession, throwing more money into the share market can certainly be intimidating right now.

So here is one ASX share I would have no problem buying with $10,000 right now, despite all the uncertainty.

The ASX share I would buy with $10,000 today

Washington H Soul Pattinson and Co Ltd (ASX: SOL), or Soul Patts for short, is one of the oldest shares on the ASX. It even predates Federation, starting out life back in 1872. But today, Soul Patts is not just a pharmacy, as it was back in the 19th century.

The company has morphed into what one could describe as something close to an ASX-listed managed fund. It now holds a massive and diversified portfolio of underlying investments, including many ASX shares.

Today, Soul Patts owns large stakes in a number of quality ASX companies. These include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW).

Thanks to its merger with the old Milton Corporation last year, Soul Patts now also owns Milton’s old portfolio of ASX blue-chip shares as well.

And that’s in addition to a sizeable portfolio of unlisted assets too, such as agricultural assets and swim centres.

So all in all, an investment in Soul Patts is really an investment into this broad underlying investment portfolio. And Soul Patts has the runs on the board to prove it’s a worthwhile long-term investment.

Growth and dividends?

According to its last half-year financial report the company delivered back in January, Soul Patts investors have enjoyed total shareholders returns amounting to an average of 13% per annum over the past 20 years.

Soul Patts is also the only ASX share that has given investors a dividend rise every single year since 2000. So investors have enjoyed both healthy capital returns, and clockwork-like dividend raises consistently over the past two decades.

That’s enough for me to have faith in the management to keep the returns rolling in.

As such, Washington H Soul Pattinson is the ASX share that I would be happiest spending $10,000 on today.

At the current Washington H Soul Pattinson share price, Soul Patts has a market capitalisation of $9.43 billion, with a dividend yield of 2.48%.

The post This is the one ASX share I would spend $10,000 on today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s why I just bought more Soul Pattinson shares
• Own Soul Patts shares? Here’s what to look out for in FY 2023
• 5 worst ASX energy shares of FY22
• The rise and fall of the Soul Pattinson share price over the past year

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/63d8NGL

Flight Centre Travel Group Ltd (ASX: FLT) shares are struggling today, but it is not the only ASX 200 travel share that has been in the red today.

Flight Centre shares are currently trading at $17.12, a 0.23% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is falling 0.34% today.

Earlier, the Qantas Airways Limited (ASX: QAN) share price was falling 1.31%, while Webjet Limited (ASX: WEB) shares were down 1.39%. Both shares have retraced to be in the green currently.

Let’s take a look at what is happening at Flight Centre.

More ‘pain’

Flight Centre managing director Graham Turner is predicting that travel pain could continue until “October or November”, and that’s assuming Omicron settles down.

Speaking on the Today Show about recent cancellations and flight delays, Turner said:

It will improve but it’s going to take some time I would suggest six or eight weeks before all of this really settles down and there is going to be pain for domestic travellers in that time.

Turner highlighted that building back the travel industry after two and a half years of having to cut back travel to the bone is “quite difficult”. He said.

There’s just lack of experience, expert staff, pilots, and not only that, obviously this latest COVID wave is meaning there is a lot of absenteeism as well.

Turner said despite delays, lots of changes and quite a few cancellations, most people are getting away to their destination domestically.

Flight Centre upgraded its FY22 market guidance in a release to the market last week. The travel company is expecting a solid rebound in travel demand late in the year. Flight Centre predicts to report an underlying EBITDA loss of between $180 and $190 million. This represents an 11.9% improvement on its initial FY22 market guidance.

Flight Centre share price snapshot

Flight Centre shares have soared 13% in a year, but are 3% in the red year to date.

For perspective, the ASX 200 has lost nearly 7% in a year.

Flight Centre has a market capitalisation of $3.42 billion based on the current share price.

The post Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• When did Flight Centre shares last pay a dividend?
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price tumbling 5% today?
• Why Flight Centre, Iress, Nitro, and Perseus shares are dropping today
• ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend

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 recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/BsFDYzO