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Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cardano (CRYPTO: ADA).

Australian and international crypto investors have shaken up their holdings of these top tokens over the past quarter.

Below, we look at how the positions of the most held cryptos on multi-asset investing platform eToro changed at the end of the second quarter compared to the end of Q1.

Aussies’ return to the biggest crypto names favours Bitcoin

Bitcoin, the world’s top token by market cap, reclaimed its number one spot as the most widely held crypto by Aussie investors on the eToro platform.

Bitcoin came in at number two among Australian investors at the end of the first quarter, with XRP (CRYPTO: XRP) being the most widely held crypto on the platform at the time. XRP slipped to number five in Q2.

e-Toro reported that despite the market turmoil in 2022, the number of users on its platform holding Bitcoin increased 9% globally and 16% in Australia.

Meanwhile, Ethereum – the second biggest token by market valuation – climbed into the number two spot, up from third place in Q1.

And Cardano, the number eight crypto by market cap, made a big move from fifth place up to third place among Australian crypto investors on the eToro platform.

Resilience in a ‘difficult spell’

Commenting on the last quarterly results, market analyst at eToro Josh Gilbert said:

There’s no hiding to the fact that the crypto market has had a difficult spell in the last quarter. However, the eToro community is showing resilience, whilst keeping faith with the cryptos with the biggest heritage and market cap.

Noting that Bitcoin and most all crypto prices have fallen sharply this year, mirroring the selling trend in equities, Gilbert added:

Many investors see the long-term potential of crypto assets and those same investors have the time horizon to allow these investments to flourish. Retail investors are using the current price weakness to build their allocation to the crypto space whilst diversifying across assets.

The post Bitcoin or Cardano: which crypto is most widely held among Aussies in 2022? appeared first on The Motley Fool Australia.

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More reading

• Why is the Solana price sinking today?
• Why top cryptocurrencies Bitcoin, Ethereum, and Dogecoin are slumping today
• 2 things need to happen for a sustained Bitcoin price rally: experts
• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Can Ethereum reach $10,000?

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

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After a volatile past month, the National Australia Bank Ltd (ASX: NAB) share price has continued to travel upwards.

At yesterday’s market close, the banking giant’s shares finished 1.38% higher to $30.13. This represents a 20% rebound from its year-to-date low of $25.43 on 17 June.

There’s been a general recovery in the S&P/ASX 200 Financials (ASX: XFJ) sector as investors become more tolerant of negative news.

For context, the benchmark financial index is up around 12% over the same time frame.

What happened to NAB shares?

Despite the company not releasing any price-sensitive news since the launch of its capital notes offer, the NAB share price has made a spectacular comeback.

Another aggressive rate hike by the Reserve Bank of Australia (RBA) to cool down inflation spooked investors last month. This caused negative sentiment in the market, dragging down ASX shares for weeks.

However, after being heavily sold-off throughout early to mid-June, it appears investors started to see NAB shares as too cheap to pass up.

NAB’s relative strength index (RSI) has fallen to a low of 16. The last time that happened was during COVID-19.

The RSI is a momentum oscillator that is used to assess the strength or weakness of a share price. Normal levels range between 30 and 70. Anything outside that range is an indication that the share price is an attractive buy or too expensive.

Subsequently, the NAB share price has recovered lost ground despite many economists tipping another 0.5% hike in the official cash rate to 1.85%, according to Bloomberg.

It seems investors have already priced in this possibility ahead of the RBA’s next meeting on 2 August.

Data released by the Australian Bureau of Statistics yesterday shows the consumer price index (CPI) rose by 1.8% in the June quarter. Inflation is now running at 6.1% per annum, which is the fastest pace in 20 years.

Is now the time to buy?

Last month my Foolish colleague James reported that Macquarie was retaining its outperform rating on NAB with a share price target of $34.

Its analysts believe there is still more upside in NAB shares regardless of rising interest rates. Based on the current share price, this implies an upside of about 13% for NAB investors.

Last month Goldman Sachs also maintained its buy rating on NAB with an improved price target of $34.26.

The team is confident that NAB’s balance sheet mix provides the best exposure to domestic system growth over the next 12 to 18 months.

NAB share price review

While the NAB share price has moved in circles over the past 12 months, investors are sitting on a modest return of 15%.

The share price touched a multi-year high of $33.75 on 21 April and is not far off from achieving that feat again.

The ASX bank share has a price-to-earnings (P/E) ratio of 14.93. It commands a market capitalisation of roughly $94.53 billion.

The post The NAB share price is up 20% from its YTD low. Is now the time to buy? appeared first on The Motley Fool Australia.

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More reading

• Why this ASX investment company dumped NAB for Westpac shares
• Should investors buy NAB shares for the dividends? Here’s what I think
• Why did the ANZ share price smash the other ASX 200 banks today?
• How high will the RBA hike rates in 2022? Here’s what the ASX 200 banks are forecasting
• Is the NAB share price in danger from a resurgent ANZ?

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 positions in and has recommended Goldman Sachs. 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 Macquarie Group Ltd (ASX: MQG) share price will be one to watch on Thursday.

This follows the release of the investment bank’s quarterly update this morning ahead of its annual general meeting.

Macquarie share price on watch following strong Q1 update

All eyes will be on the Macquarie share price this morning after the investment bank revealed that it started FY 2023 in fine form.

According to the release, favourable trading conditions saw Macquarie’s operating groups deliver net profit contributions that were up on the first quarter of FY 2022.

And while no actual figures were provided, management advised that its annuity-style businesses, Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), delivered a combined first quarter net profit contribution that was “significantly” up on the prior corresponding period.

This was due largely to income from Green Investment Group (GIG) asset realisations in MAM, which was partially offset by the Macquarie Infrastructure Corporation disposition fee from last year.

The contribution from the BFS business was broadly in line with the prior corresponding period.

What about its other businesses?

Elsewhere, Macquarie’s markets-facing businesses, Commodities and Global Markets (CGM) and Macquarie Capital, delivered a combined first quarter net profit contribution that was “slightly up” on the prior corresponding period.

This was due to strong results across the Commodities platform in CGM including the impact of timing of income recognition on gas transport and storage contracts and higher investment–related income in Macquarie Capital. Partially offsetting this was the sale of the CGM UK commercial and industrial smart meters portfolio a year earlier.

Finally, Macquarie advised that its financial position continues to comfortably exceed the Australian Prudential Regulation Authority’s (APRA) Basel III regulatory requirements. At the end of June, the company had a group capital surplus of $10.1 billion and Common Equity Tier 1 capital ratio of 12.3%.

Outlook

In the near term, management advised that it continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that it believes positions the company well to respond to the current environment.

The company sounds much more positive with its medium term outlook. It concluded:

Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.

The post Macquarie share price on watch following strong Q1 update appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX dividend shares to buy right now
• Own Macquarie shares? Here’s what to expect from its Q1 update
• 5 ASX 300 shares this fundie has been buying at bargain prices
• What’s the outlook for the Macquarie share price in FY23?
• Here’s what brokers are saying about the Rio Tinto share price

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 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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Airlie Funds Management portfolio manager Matt Williams remembers early in his career, a quarter of a century ago, being ordered to analyse a particular ASX-listed company.

“My bosses allocated me a ‘small-cap’ company to cut my teeth on as an analyst. Read: limit any potential damage to portfolios,” he wrote on the Airlie blog.

“The trading liquidity of the company was low, and it did not get a lot of airtime among the bigger, sexier companies.”

He diligently read all the annual reports and studied the business to get “a sense for the underlying quality”.

That “pretty boring” company, with a market capitalisation of $250 million at the time, was plumbing and bathroom supplier Reece Ltd (ASX: REH).

“[It] was majority-owned by the Wilson family — a family that had no interest in spruiking the stock to pump up the share price,” he said.

“This put them at odds with 90% of other companies on the bourse, and pretty much all my experience of management teams thus far.”

Reece now has a market cap of more than $9.2 billion.

How did it multiply its valuation 37 times over without even marketing itself to investors?

The phone call with a CEO that changed a fundie forever

After watching an impressive record of profits over a couple of years, a young Williams convinced his superiors to build up a holding in Reece.

But then his heart sank. 

One of Reece’s financial updates still showed strong growth in sales revenue — but net profit was significantly down.

The share price then absolutely tanked.

“I frantically looked at this profit result from Reece with a growing sense of sickness in my stomach – costs were way higher than the previous period, in my mind destroying a beautiful sales result,” said Williams.

“The ‘market’ in its short-term wisdom declared this a poor result and reacted accordingly.”

The Wilson family, who held 70% of the shares, were notoriously secretive. They rarely put out statements to the market and they certainly didn’t care about what financial analysts thought about them.

But a fired-up Williams was determined to put some questions to chief executive Alan Wilson.

After much persistence he managed to grab Wilson on the telephone.

“Wilson heard me out and further explained the strategy that was already laid out briefly in the result commentary,” he recalled.

“Where I saw a cost blow-out, he saw great opportunities for investment to grow – simply, rolling out the Reece store network in more locations around Australia, taking market share, and becoming ubiquitous within plumbing and bathroom.”

That phone conversation would leave a lasting impression on a young Williams.

“I hung up the call having learnt a valuable lesson,” he said.

“In the cut and thrust of everyday markets, I too had absorbed the focus on the short term. The penny dropped that Wilson was investing now for future growth, and that the opportunity could be massive.”

The power of owner-managed companies

At the time of that fateful phone call 23 years ago, Reece was half the size of the dominant force in the plumbing market, Tradelink.

Since then the Wilson family’s strategy has “played out perfectly”.

“Sales in Australia/New Zealand up 8x and profits up 22x,” said Williams.

“Amazing results and all without raising any equity (until its expansion into the US in 2018) or meaningful debt. In fact, the company acquired property sites for a lot of its best-located stores along the way.”

With this growth, Reece’s market capitalisation multiplied a stunning 37 times.

Meanwhile, Tradelink has been completely beaten into submission.

“Twenty-three lost years where sales went nowhere, and profits backwards – overseen by numerous management teams and a new corporate owner, Fletcher Building.”

Williams believes Reece is the perfect example of how owner-managed businesses can execute a long-term vision.

Owners who have control of the steering wheel can show patience that perhaps independent executives can’t manage in a publicly-listed environment. They can cop some short-term heat to make a long-term dream come true.

Other such examples currently held in the Airlie fund are ARB Corporation Limited (ASX: ARB), Premier Investments Limited (ASX: PMV), PWR Holdings Ltd (ASX: PWH) and Nick Scali Limited (ASX: NCK).

Williams describes his favouritism towards such companies as his lifelong “love affair”.

“The owner-managed model is immensely powerful in a small company, where the success factors of owner-managers can be leveraged into truly remarkable results.”

The post $250m to $9 billion: The phone call that revealed what makes multi-bagger ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why cheap hamburgers could give beginner ASX share investors food for thought
• 2 All Ords ASX shares I think are underrated buys right now

Motley Fool contributor Tony Yoo 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 PWR Holdings Limited. The Motley Fool Australia has recommended ARB Corporation Limited, PWR Holdings Limited, and Premier Investments 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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Although the tech sector has rebounded recently, it is still down materially since the start of the year. For example, the S&P ASX All Technology index remains down 30% in 2022.

While this is disappointing, it has dragged a number of ASX tech shares down to very attractive levels.

Two such shares are listed below. Here’s why experts rate them highly at present:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is Life360. It is the company behind the world’s leading real time, location-sharing app which is used by over 30 million users.

In addition, the company has bolstered its offering with acquisitions of companies involved with wearables and items tracking. This provides Life360 with cross-selling opportunities to its massive user base.

And while Life360 isn’t yet profitable, it does have a hefty cash balance which is expected to be more than sufficient to support it through to breakeven.

Bell Potter is bullish on Life360. It has a buy rating and $7.50 price target on the company’s shares. The broker commented:

Life360 develops and delivers a mobile app for families – called Life360 – that provides communications, driving safety and location sharing. The company adopts a freemium model to attract customers but has been successfully converting a portion of these customers to paying subscribers over the last several years by providing valuable features. The company has also recently made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but is expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.

Xero Limited (ASX: XRO)

Another ASX tech share that could be a top option for investors is Xero.

It is a cloud accounting platform provider which has been growing its subscriber base at a strong rate for many years. But despite now having ~3.3 million subscribers globally, this is only a fraction of its estimated market opportunity of 45 million subscribers.

The team at Goldman Sachs is very positive on Xero and believes it is well-placed to deliver strong gross profit growth in the coming years. Even in this tough operating environment. As a result, it has a buy rating and $113.00 price target on its shares. The broker commented:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP [to 22%] to reflect FX and higher churn/ARPU growth (price increases).

The post 2 excellent ASX tech shares experts say are buys appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 tech shares performing on Wednesday?
• Top broker rates Xero share price a buy with 20% upside
• Why are ASX 200 tech shares having such a lousy start to the week?
• 2 ASX growth shares that analysts love
• Is the Xero share price heading back over $100?

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 bank shares have been turbulent so far this year. After starting in the green, a wave of macroeconomic crosscurrents weighed on the sector, resulting in widespread losses.

For Westpac Banking Corporation (ASX: WBC), the story has been no different. Its share price has gained less than 1% year to date, since falling off highs of $24 early in June. The bank closed on Wednesday at $21.41 a share.

For fellow ‘big four’ banking giant, National Australia Bank Ltd (ASX: NAB), the picture is a little more positive. Its share price has climbed more than 11% this past month, extending gains to around 4.6% this year to date.

Investment manager makes the switch

Yet, portfolio managers at Amcil Ltd (ASX: AMH) recently dumped their NAB position, according to the investment company’s preliminary annual results.

Amcil is a listed investment company (LIC) that manages a concentrated equity investment portfolio of ASX shares.

The company made a switch in its allocation of ASX banks. It said the “…transaction saw a switch in our major bank investments, with Westpac replacing National Australia Bank, primarily for reasons of relative valuation”.

Westpac trades at 15.36 times trailing P/E whereas NAB is priced at 14.93 times trailing P/E. Each share has an earnings yield of roughly 6.5%.

Amcil realised $14.7 million in proceeds from the transaction, whereas it purchased $14.07 million in Westpac equity.

Those weren’t the only changes the portfolio managers made. They added seven new companies throughout the period, including names such as Netwealth Group (ASX: NWL) and Domino’s Pizza Enterprises Ltd (ASX: DMP).

They also disposed of Xero Ltd (ASX: XRO), Sydney Airport (ASX: SYD), and Ramsay Healthcare Ltd (ASX: RHC).

As for its projections moving forward, Amcil notes the impending headwinds looming on the horizon:

The equity market impact of higher inflation and interest rates is moving from a focus on valuation multiples, to concern over the outlook for corporate earnings. Cost-of-living pressure for consumers is driving many economic indicators sharply lower, a necessary condition for bringing inflation back to more sustainable levels.

The ability of companies to grow their market share against weaker competitors, pass on cost inflation in higher prices to preserve profit margins and rely on balance sheet strength to navigate volatile trading conditions will be particularly important in the year ahead.

Amcil is down almost 17% this year to date and 12% lower for the year.

The post Why this ASX investment company dumped NAB for Westpac shares appeared first on The Motley Fool Australia.

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More reading

• Westpac share price on watch following market update
• Should investors buy NAB shares for the dividends? Here’s what I think
• Here are 2 ASX 200 dividend shares to buy according to experts
• Brokers rate these ASX dividend shares as buys
• Own Westpac shares? Why the major bank could soon make a crypto splash

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 positions in and has recommended Netwealth and Xero. The Motley Fool Australia has positions in and has recommended Netwealth and Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited, Ramsay Health Care Limited, and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As difficult as this year has been for ASX shares, other assets have suffered greatly too.

Whether you possess cryptocurrency, real estate, or even bonds, the chances are you’ve suffered losses in 2022.

Even for long-term investors, this is undoubtedly distressing.

But there is a bright side to the bear market, according to one expert.

Potential returns have actually risen in 2022

Applying some conservative assumptions, the team at AMP Ltd (ASX: AMP) projected what returns would be like for ASX shares and other assets over the next five to 10 years.

And the findings were surprising.

Using this model, the return potential dipped below 5% in late 2020. But this year, in troubled times, that has risen to 7% per annum.

“This is partly due to a 1% higher medium-term inflation assumption, but the rest is due to the rise in interest rates, bond yields and yields on assets including shares over the last year,” said AMP chief economist Dr Shane Oliver in a blog post.

“This is the silver lining to the cloud — or rather storm — that has hit investment markets.”

This goes to show how a dip in ASX shares presents excellent buying opportunities.

“Bear markets are painful and are hard to predict, but they do push up the medium-term return potential of shares and so provide opportunities for investors.”

It seems a minority of Australian investors are taking advantage of the current downturn.

According to research from comparison site Finder, 7% of Australians are investing “more adventurously” than they were six months ago.

According to Finder stock expert Kylie Purcell, for many younger investors, this could be their first experience of a bear market.

“Investing in shares during a market downturn can be daunting, especially for people with more aggressive portfolios or who have high-growth super funds,” she said.

“[But] Warren Buffet said that it is wise for investors to be ‘fearful when others are greedy, and greedy when others are fearful’.”

ASX shares are winners

Oliver surmised that ASX shares, due to their high dividend yields, stacked up well for the coming few years. Asian stocks were his pick for capital growth potential.

Return from bonds would remain poor and real estate would remain depressed due to rising interest rates.

He did have a caveat for his return projections.

“The main downside risk to our medium-term projections is that inflation trends even higher driving a further trend rise in interest rates, bond yields and yields on other assets (including property & infrastructure), resulting in an ongoing drag on capital growth.”

Oliver implored investors to “have reasonable return expectations” for the coming period.

“Interest rates and investment yields are still historically low so [it’s] unreasonable to expect sustained double-digit returns.”

Investors should concentrate on acquiring investments with a certain characteristic, he added.

“Focus on assets with decent sustainable income flow as they provide confidence regarding future returns.”

The post Here’s the good news about bear markets appeared first on The Motley Fool Australia.

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More reading

• The AMP share price has surged 9% so far this month. Can it keep going?
• ‘Ready to compete’: Will AMP seek out new opportunities or stick to its knitting?
• Own AMP shares? CEO touts its ‘digital bank’ status in competitive landscape
• ‘CBA and Westpac are too big’: One fund manager’s take on the future of ASX 200 bank shares
• AMP share price in focus as Mirvac wins control of $7.7 billion office fund

Motley Fool contributor Tony Yoo 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Alto Capital investment advisor Tony Locantro talks about why he loves three ASX shares in particular and his biggest regret in investing.

Cut or keep?

The Motley Fool: You’ve mentioned Radiopharm Theranostics Ltd (ASX: RAD) in the past, but it has now dropped about 40% year-to-date. How do you feel about it now? Would you still buy it?

Tony Locantro: Yeah, it was one of the first to lift its head off the canvas during tax loss selling. It was a 60 cent IPO that was poorly supported — fell to a ridiculous low of 13 cents during the last week of tax loss selling. It’s since recovered to 23 cents. 

It is in radiopharmaceuticals. They’ve also added brain tumour technology. It has one of the richest pipelines of any ASX by a technology company, with multiple phase one trials for the remainder of this year and multiple trials next year.

I have bought heavily personally. I am currently underwater and really need to see the stock recover. It has been building a world-class management team, but the stock just fell out of favour as the Nasdaq Composite (INDEXNASDAQ: .IXIC) and US biotech indices underwent a significant correction. 

So the answer to that is yes, it is still great value, but was even better value a few weeks ago… No change to the fundamental view or my faith in management or the company.

The ASX share for a comfortable night’s sleep

MF: If the market closed tomorrow for four years, which stock would you want to hold?

TL: Proteomics International Laboratories Ltd (ASX: PIQ).

I just think from a biotech, it’s got everything going for it. It’s already had a test that’s proven it’s now a sales exercise. They do have the upcoming pipeline and yeah, that’s the one.

There is another one, but you only want one don’t you?

MF: By all means, please tell us.

TL: From a mining perspective, I think Aurumin Ltd (ASX: AUN).

That’s a gold company with ex-key personnel from Northern Star Resources Ltd (ASX: NST). They have purchased the sandstone project. It’s about a 794,000 ounce resource. 

So they purchased a gold resource. They’re looking to grow through exploration and/or acquisition. The company share price has been punished due to drilling for lithium which failed to deliver significant results, combined with tax loss selling. 

I back management to undergo a decent growth profile in those four years. They’re currently undergoing a 15 cent rights issue on a one-for-seven basis with a one-for-one, 25 cent option for existing shareholders.

So I think the company has undergone some issues recently and I think these can be overcome, and I’d certainly back [the] management team to deliver. 

And one of the key aspects, I think, with any gold company that’s looking to grow, sometimes you need to set the weakness to look at picking up assets that the majors don’t want, and that’s how Northern Star was built.

[Northern Star] was a s***ty one-cent company that went to about $15, but during the time that Northern Star grew, the Australian gold index lost two-thirds of its value.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

TL: Oh, I regret not being more aggressive with selling.

I think once you start seeing multiples, we all get delusions of grandeur and the dopamine levels increase and we think that the stock’s going to continue running. But history has shown that you need to take profits along the way.

You need to work out if your company would be racing in the Golden Slipper or the Melbourne Cup. Once you can classify your company, then you’re going to take profits in better fashion.

But I always have the regret that I should be more assertive, and assertive with my profit taking.

MF: It’s difficult for the human mind to figure out, isn’t it, knowing when to sell? People find buying a lot easier than selling.

TL: Oh, geez, yeah, yeah, yeah. I’ve had stuff that’s gone 10, 20 times, and a lot of clients won’t sell because they think it’s going higher. Then I try to get them to sell, and then… Yeah. 

But I guess in my sector of the market, they’re exposed to abnormal gains that you wouldn’t get in more conservative stocks.

The post ‘Richest pipeline’ in ASX: Expert names 3 small-cap shares to buy appeared first on The Motley Fool Australia.

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• Gold is at multi-year lows. What does this mean for Northern Star shares?
• 2 ‘outstanding’ small-cap ASX shares that could explode: expert
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• What’s the dividend yield on Northern Star shares in July?

Motley Fool contributor Tony Yoo 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer despite news that inflation has climbed again. The benchmark index rose 0.2% to 6,823.2 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to storm higher

The Australian share market is expected to storm higher on Thursday following a stellar night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.8% higher this morning. On Wall Street, the Dow Jones was up 1.4%, the S&P 500 rose 2.6%, and the NASDAQ stormed a massive 4.1% higher.

Rio Tinto half-year result falls short of expectations

The Rio Tinto Limited (ASX: RIO) share price could come under pressure today after the mining giant’s half-year results fell short of consensus estimates. Rio Tinto reported a 10% decline in revenue to US$29,775 million and a 26% reduction in underlying EBITDA to US$15,597 million. This compares to the market consensus estimate of US$30,785 million and US$16,813 million, respectively. The miner’s interim dividend was also well short of expectations at US$2.87 per share.

Oil prices jump

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after a strong night of trade for oil prices. According to Bloomberg, the WTI crude oil price is up 3.4% to US$98.20 a barrel and the Brent crude oil price is up 2.9% to US$107.43 a barrel. Oil prices jumped after Russia cut its gas supply.

US Fed raises rates

As was widely expected, the US Federal Reserve has lifted interest rates again. The central bank elected to increase rates by 0.75% for the second meeting in a row. This took the benchmark overnight borrowing rate up to a range of 2.25% to 2.5%. The big news, though, was that the Fed has hinted that it could slow the pace of its hiking campaign. This sent US equities hurtling higher.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.9% to US$1,733.5 an ounce. News that the Fed could slow its future rate hikes boosted the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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• Rio Tinto share price on watch after half-year earnings miss
• Here are the top 10 ASX 200 shares today
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• Why I think Coles shares are a compelling 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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The Dicker Data Ltd (ASX: DDR) share price has descended slightly in the past month, but could it go ahead in the future?

The company’s share price has lost 1.41% in the last month and is currently trading at $11.19. In today’s trading, the company’s share price closed 2.01% lower.

So what is the outlook for the Dicker Data share price?

What is ahead?

Dicker Data is an Australian technology company that supplies software, cloud, and computer hardware products to major international companies.

Morgan Stanley analysts have recently placed a $16 price target on the company’s shares and maintained an overweight rating. At its current level, this represents nearly 43% upside for the Dicker Data share price.

Further, Morgan Stanley is predicting Dicker Data could provide a fully franked dividend of 48.5 cents in FY 2023. In FY 2022, the broker forecasts a 41.4 cent dividend.

Meanwhile, Airlie Funds Management analysts have recently predicted Dicker Data’s prospects “should remain strong”. Portfolio manager Matt Williams said:

No matter the upcoming economic conditions, we think the path to digitisation won’t be affected… [O]ver the past seven years, sales and profits have compounded annually at 16% and 20% respectively.

Dicker Data recently updated the market on its unaudited results for H1 2022. According to the report, revenue growth is up 36% on the prior corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) has also grown 20% in the same timeframe from $51 million to $61 million.

The company will hold a webcast of its F22 half-year results on 30 August.

Share price snapshot

The Dicker Data share price slumped nearly more than 24% in the year to date but lost just 0.53% in the past year.

For perspective, the S&P/ASX All Technology Index (ASX: XTX) has shed nearly 26% in a year and almost 29% year to date.

Dicker Data has a market capitalisation of more than $1.9 billion based on the current share price.

The post Down 1% in a month, what’s next for the Dicker Data share price? appeared first on The Motley Fool Australia.

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• Dicker Data share price powers down despite record first-half profit
• Brokers rate these ASX dividend shares as buys
• Top ASX dividend shares to buy in July 2022
• Why Dicker Data shares are among this fund manager’s favourites
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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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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