Tag: Motley Fool

The Andromeda Metals Ltd (ASX: ADN) share price is off to the races.

Shares in the ASX resource explorer closed yesterday at 8.9 cents and are currently trading for 10.3 cents, up 15%.

Here’s what’s piquing ASX investor interest this morning.

What’s driving ASX investors to hit the buy button?

The Andromeda Metals share price is surging after the company reported signing a legally binding offtake agreement with Asia Minerals Resources (AMR) to supply halloysite-kaolin from its Great White Kaolin Project.

The agreement with the Vietnam and Hong Kong based AMR is for up to a total of 38,500 tonnes of its Great White KC 90 product over the first three years of production. The company said it will receive a price higher than its Definitive Feasibility Study pricing.

The company said the agreement opens the door to sales into the ceramics sector in Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the United Arab Emirates.

Commenting on the agreement, Andromeda Metal’s managing director, James Marsh said:

This agreement with AMR is a significant milestone for Andromeda as it is the first one for our initial Great White KCM 90 product with a leader in the world of high-quality ceramics, which confirms the quality and value of the unique Great White resource. We look forward to a long and productive relationship with AMR.

Looking ahead, the Andromeda Metals share price could be getting some extra tailwinds from the company’s report that it is progressing with additional negotiations “to lock in strategic offtake agreements” for the balance of its initial Great White plant output. Those agreements will help further de-risk the project.

Andromeda Metals share price snapshot

Despite today’s big jump, the Andromeda Metals share price remains down 46% in 2022. That compares to a year-to-date loss of 12% posted by the All Ordinaries Index (ASX: XAO).

The post Andromeda Metals share price surges 15% on ‘significant milestone’ appeared first on The Motley Fool Australia.

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More reading

• The Bega Cheese share price is down 39% so far this year but Twiggy is still buying
• Why is the Nitro share price crashing 29% on Tuesday?
• Investing in the stock market could turn $10,000 into $300,000. Here’s how
• Own ANZ shares? Tech experts raise red flags over Suncorp integration
• Why is the Vulcan share price charging higher today?

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

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It’s been a rough year so far for the Bega Cheese Ltd (ASX: BGA) share price. It’s tumbled nearly 39% since the start of 2022. Having started the year trading at $5.60, the stock is currently swapping hands for $3.44.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped around 10%.

But that hasn’t seemingly shaken the confidence of Australia’s second richest person. Andrew ‘Twiggy’ Forrest has continued his campaign to snap up Bega Cheese shares, grabbing another $14.9 million worth.

Let’s take a closer look at what’s been weighing on the Vegemite owner and Twiggy’s growing hold in the company.

Twiggy buys despite falling Bega Cheese share price

The Bega Cheese share price has been impacted by extreme weather in 2022, as rainfall and flooding have forced it to increase farm gate milk prices amid heightened demand.

That will, of course, dint the cheese-focused food producer’s bottom line and has already seen brokers turning their nose up at the stock.

Bell Potter dropped its price target for Bega Cheese shares to $3.80 and slapped it with a hold rating earlier this month after the company revealed it expected milk prices to lift 30% this financial year.

Meanwhile, Goldman Sachs analysts have reportedly placed a sell rating on Bega Cheese. They noted they don’t see any further upside in the stock, according to Livewire.

But that hasn’t discouraged Twiggy. The Fortescue Metals Group Limited (ASX: FMG) founder and chair’s increasing holding in the ASX 200 consumer staples share was revealed last week.

Twiggy began snapping up a substantial holding in Bega Cheese in December. He recently increased his hold in the company to 11.5%, up from 10% in late April.

That saw the billionaire buying around 4.5 million Bega Cheese shares at a total cost of approximately $14.9 million.

The post The Bega Cheese share price is down 39% so far this year but Twiggy is still buying appeared first on The Motley Fool Australia.

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More reading

• Why Aurizon, Bega Cheese, Flight Centre, and Lake Resources shares are sinking
• Here are 3 ASX 200 shares tumbling to new 52-week lows today
• ASX 200 midday update: Telstra completes acquisition, Lake Resources and Bega Cheese sink
• Bega share price slides as milk prices skim away
• 5 things to watch on the ASX 200 on Thursday

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 Goldman Sachs. 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 Nitro Software Ltd (ASX: NTO) share price is having a day to forget on Tuesday.

In morning trade, the document productivity software company’s shares are down a disappointing 29% to $1.16.

Why is the Nitro share price crashing?

Investors have been selling down the Nitro share price following the release of the company’s second quarter and first half update.

Although that update revealed yet another strong quarter of growth, it was management’s commentary on the second half that sent investors to the exits.

According to the release, for the 12 months ending 31 December, Nitro now expects to report annual recurring revenue (ARR) of US$57 million to US$60 million. This represents year on year growth of 24% to 30%.

As a comparison, the company was previously guiding to ARR of US$64 million to US$68 million, which would have been year on year growth of 39% to 47%.

That’s despite the company reporting stellar first half FY 2022 ARR growth of 52% year on year to US$51.5 million this morning. This indicates an expectation for a sharp slowdown in growth during the second half, which appears to have spooked investors.

The good news

Despite what the Nitro share price performance would indicate, it wasn’t all bad news.

Firstly, Nitro has trimmed its operating EBITDA loss guidance. Instead of US$15 million to US$18 million, it now expects a loss of US$10 million to US$13 million.

In addition, instead of moving “toward a cash flow breakeven profile” in the second half of FY 2023, it now expects to be cash flow breakeven at that point.

It also finished the first half of FY 2022 in a strong financial position, with cash of US$35.2 million and no debts. This should provide it with more than sufficient cash to reach its breakeven point.

What’s happening at Nitro?

Management revealed that its revised guidance reflects its decision to balance its pursuit of ARR growth while accelerating its cash flow breakeven goals.

Nitro’s co-founder and chief executive officer, Sam Chandler, explained:

Given the current environment, Nitro is carefully balancing its pursuit of ARR growth with extracting greater efficiencies from existing resources and protecting our strong cash position. We are also focused on accelerating our return to cash flow breakeven.

While in the near term these operating strategies will lower Nitro’s ARR growth, they will underpin a significantly reduced Operating EBITDA Loss in FY2022. With our revenue guidance unchanged, we firmly believe this is the correct financial profile for today’s macroeconomic and market conditions.

Chandler also reminded investors of the massive market opportunity that the company has to grow into in the coming decades.

We are committed to generating positive cash flow for the second half of 2023. While there are currently many uncertainties in the world, Nitro has a multi-billion-dollar market opportunity that will play out over the years and decades ahead, and our confidence in the scale of that opportunity is unchanged.

The post Why is the Nitro share price crashing 29% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Analysts have named these top growth shares as buys
• Here’s why analysts are tipping these ASX growth shares as buys
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• 2 appealing ASX All Ords growth shares getting discounted today
• Analysts say these small cap ASX shares have huge potential

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 Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

You may be looking at your portfolio’s performance over the past eight months or so and scratching your head, wondering when the pain will end. But when you are investing for retirement or some other goal down the road, it is imperative to understand the power of a long-term investment strategy.

There have been 27 bear markets since 1929, with a bear market defined as the market declining 20% or more during a specific time period. There have also been 27 bull markets since 1929, and they last much longer — about 2.7 years on average compared to less than 10 months for bear markets.

Furthermore, stocks lose on average about 36% during bear markets and gain 114% during bull markets. So this just shows that the odds are in your favor over the long run. Also, bear markets are typically a good time to buy, as you can invest in high-quality, established growth companies at discounted prices. With that in mind, let’s take a look at how a $10,000 investment right now could turn into more than $300,000 over time.

There have been five bear markets in the past 20 years

For the purpose of this hypothetical, let’s go back 20 years and see how much a $10,000 investment in the Nasdaq 100 would have yielded. In that time, there have been five bear markets — in 2002, 2008, 2009, 2020, and 2022.

The Nasdaq 100 is a growth-oriented index that includes the 100 largest stocks on the Nasdaq exchange, except financial stocks. The index is heavily skewed toward technology stocks — since they have generally been the largest and fastest growing — and is often considered a bellwether for the performance of the technology sector.

The Nasdaq 100 would be a great index to invest in, because growth stocks have outperformed value stocks over the long term, and technology stocks in particular have been the best-performing sector over time. With a long time horizon ahead of you, you can ride out bear markets and generate excellent returns.

The best way to tap into the Nasdaq 100 would be through an exchange-traded fund (ETF). And one of the most popular ETFs over the past 20 years is the Invesco QQQ (NASDAQ: QQQ), which tracks the Nasdaq 100.

So back to our hypothetical — if you’d invested $10,000 in the QQQ back on July 22, 2002, you would have invested in the middle of a bear market — one that didn’t end until Oct. 2002. Sound familiar?

Through it all, a $10,000 investment would net $300,000

From July 22, 2002, until today, the QQQ has posted an annualized return of 13.6%. If you’d invested $10,000 in the QQQ 20 years ago, and contributed $125 per month to that fund, you would have about $303,000 right now.

Keep in mind, that performance is through five bear markets, including the one we are currently in. This preceding 20-year period is particularly relevant now, because the investment would have started in the midst of a bear market.

Now, you know the disclaimer: Past performance is not indicative of future results, and there is no guarantee that an investment in the Nasdaq 100 will return 13.6% over the next 20 years. But history is indeed a useful guide to understand that volatility and down markets are a fact of life — and patience has typically been rewarded. 

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

The post Investing in the stock market could turn $10,000 into $300,000. Here’s how appeared first on The Motley Fool Australia.

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More reading

• Own ANZ shares? Tech experts raise red flags over Suncorp integration
• Why is the Vulcan share price charging higher today?
• Paladin Energy share price lights up on uranium project restart
• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Why the Woolworths share price will be on watch today

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

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

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has lifted 7% since the ‘big four’ bank announced its plan to snap up Suncorp Group Ltd (ASX: SUN)’s banking segment.

But there could be a major roadblock to the $260 million of synergies expected to come from the $4.9 billion takeover. Namely, tech integration.

The ANZ share price is $23.01 in early trading on Tuesday, up another 1.7% so far today.

Let’s take a closer look at the potential cost blowout flagged by tech experts.

Tech trouble in merger paradise?

It’s been a little over a week since the ANZ share price was halted amid a capital raise ahead of its planned takeover of Suncorp’s banking operations.

During that time, concerns the takeover could create a sizable technological dint (and a major ongoing expense) have emerged.

Integration of Suncorp’s banking business has been forecast to set ANZ back to the tune of $680 million before tax, according to reports in the Australian Financial Review (AFR).

Meanwhile, industry insiders have reportedly questioned whether the big bank will be able to fuse the businesses’ technology systems within its targeted approximate time frame of five years.

Indeed, Goldman Sachs noted much of the expected synergies were relying on moving Suncorp customers to the still incomplete ANZ Plus platform, as my Fool colleague James Mickleboro reported.

And ANZ isn’t alone in facing tech difficulties in recent years. Suncorp has also struggled to modernise its technology, reportedly ditching its ‘Project Ignite’ years after it was launched.

ADAPT principal research analyst Shane Hill reportedly told the AFR:

While the merger might make sense from an assets-under-management perspective in competition against the other banks, it is fraught with operational risk from both a trust and technical standpoint. 

M&A-driven integrations … have a history of being more complex, expensive, and time-consuming than projected.

Both organisations still have lots of legacy tech they’ll need to either turn off or integrate in a process that will take years.

One unnamed tech executive told the publication they expect ANZ to still be running Suncorp Bank’s tech system in a decade.

Fortunately, with the big bank able to licence the Suncorp Bank brand for up to seven years following the acquisition, ANZ has time on its side to prepare for the amalgamation.  

ANZ share price snapshot

The ANZ share price has been underperforming in 2022. The stock has slipped 18.5% since the start of the year.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has fallen 10.5% and the S&P/ASX 200 Financials Index (ASX: XFJ) is down 7.8%.

The post Own ANZ shares? Tech experts raise red flags over Suncorp integration appeared first on The Motley Fool Australia.

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More reading

• What might the ANZ deal mean for Bank of Queensland shareholders?
• Analysts rate these ASX 200 blue chip shares as buys
• Why did the ANZ share price smash the other ASX 200 banks today?
• Here are the top 10 ASX 200 shares today
• ASX 200 midday update: ANZ’s capital raising, Link jumps, Zip’s Q4 update

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 Goldman Sachs. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has been a strong performer on Tuesday.

In morning trade, the lithium developer’s shares are up 6% to $7.55.

Why is the Vulcan share price charging higher?

The Vulcan share price has been a strong performer today thanks to the release of an announcement relating to the company’s Zero Carbon Lithium Project.

According to the release, Vulcan has received approval to carry out a 3D seismic survey from eight local councils across its license area in the German state of Rhineland-Palatinate.

The 3D seismic survey work is planned to commence in September and will assist with future development drill planning in Vulcan’s Phase One areas.

In addition, the company has been granted a new exploration license, increasing its license area in the Upper Rhine Valley Brine Field by a sizeable 277km2 to a total of 1,440km2.

Management commentary

Vulcan’s managing director, Dr Francis Wedin, was very pleased with the development. He said:

We welcome the decision of the eight councils in the German state of Rhineland-Palatinate for Vulcan to commence 3D seismic work, as we continue to experience increasing positive momentum at a local level for the Zero Carbon Lithium Project.

Dr Wedlin believes the response from local councils thus far bodes well for the future. He added:

So far, all local votes for Vulcan’s work plan applications in our Phase 1 area have been positive, which is a strong endorsement for our Project, as well as for the reputation and professionalism for the Vulcan team; many of whom have worked in the geothermal industry and the local area for many years.

The managing director also spoke positively about the new exploration licence, noting that it makes the largest lithium resource in Europe even larger. Dr Wedlin said:

Our new exploration license, Ried, increases our license exploration area by 24%, for what is already the largest JORC compliant lithium resource in Europe. A strength of the Upper Rhine Valley region is the extensive exploration and development historically conducted by oil and gas companies, and Vulcan continues to leverage the work performed by the hydrocarbons industry to accelerate the Zero Carbon Lithium Project by reducing the amount of time required to gather data.

The grant of the Ried exploration license allows us to realise this data acquisition strategy, first executed last year. We are now well positioned to progress work in this area more efficiently and cost effectively, at a time of unprecedented demand for lithium for electric vehicles, and for renewable energy in Europe.

The post Why is the Vulcan share price charging higher today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Vulcan Energy share price leaping 7% on Thursday?
• What’s the ahead for the Vulcan Energy share price?
• Why has the Vulcan share price lost a nasty 6% today?
• Why Pro Medicus, St Barbara, Vulcan, and Whitehaven Coal are pushing higher
• Vulcan Energy share price leaps 8% on Italian energy producer agreement

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 Paladin Energy Ltd (ASX: PDN) share price is marching higher in early trade, up 3.6%.

The ASX uranium share closed yesterday trading for 62 cents and is currently trading for 64 cents per share.

This comes after the release of Paladin’s quarterly results for the three months ending 30 June.

Paladin share price gains on uranium project restart

• Paladin reported it will return its Langer Heinrich Mine, located in Namibia, to production; first volumes are targeted for Q1 2024
• Total project capital expenditure of US$118 million on a 100% project basis, an increase from previous guidance of US$87 million
• Paladin received AU$215 million proceeds (before costs) from its AU$200 million fully underwritten institutional placement and AU$15 million share purchase plan
• The company held unrestricted cash of US$177 million as at 30 June

What else happened during the quarter?

Paladin Energy announced that it had decided to restart production at the Langer Heinrich Mine based on strong uranium market fundamentals. It also reported continuing progress on its uranium marketing activities including the execution of a binding contract for uranium.

The ASX energy share said increased costs over the quarter were largely attributable to inflationary pressures across its project supply chain driving up prices, along with brought forward power and water infrastructure works and increased owners team costs.

During the three-month period, Paladin also increased its ownership in the advanced exploration Michelin Project, located in Canada to 70% from 65%.

What did management say?

Commenting on the quarter gone by, Paladin Energy CEO, Ian Purdy said:

The decision to restart production at the Langer Heinrich Mine is a significant milestone for the company, our shareholders and the community in Swakopmund, Namibia. The response to our restart decision from our customers, shareholders, local community members and the Namibian government has been exceptionally positive and reflects the significance of the Langer Heinrich Mine to a range of stakeholders.

What’s next?

Looking ahead, Paladin Energy forecasts a non-project FY2023 cash expenditure guidance of US$14.7 million.

“With the strength of the company’s existing uranium sales offtakes combined with our strong balance sheet we are well positioned to deliver production from Langer Heinrich and generate sustainable value creation,” Purdy said.

Paladin Energy share price snapshot

Despite a strong retrace in 2022, the Paladin Energy share price is up 27% over the past 12 months. That compares to a 9% loss posted by the All Ordinaries Index (ASX: XAO) over that same time.

The post Paladin Energy share price lights up on uranium project restart appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• What is driving the Paladin Energy share price 7% higher today?
• Will ASX uranium shares be market-beaters in FY23?
• The ups and downs for ASX uranium shares in the 2022 financial year
• Here are the top 10 ASX shares today

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

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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 most cryptocurrencies fell over the weekend as digital assets and stocks prepare for what could be a turbulent week, with the Federal Reserve set to hold its July meeting, another big interest rate hike in store, and more important economic data due out later this week.

Over the last 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), had fallen about 2.6% as of 9:13 a.m. ET Monday. The price of Ethereum (CRYPTO: ETH) was down more than 3%, and the meme token Shiba Inu (CRYPTO: SHIB) had fallen 3.5%. 

So what

Like many tech stocks and riskier assets this year, crypto prices have taken a beating as inflation has soared this year and the Federal Reserve has rapidly increased its benchmark overnight lending rate, the federal funds rate. Riskier assets typically do not fare well in the face of rising interest rates because the yields on safer assets rise, demanding more from the earnings and returns of growth assets, which previously traded at premium valuations.

On Wednesday, the Fed’s rate-setting committee is widely expected to raise the federal funds rate by another 75 basis points (0.75%), but investors will be looking for clues in the Fed’s comments about how the Fed views the economy and future rate hikes for the rest of the year. A more hawkish Fed would likely spell trouble for the stock market and crypto prices. However, if the Fed feels more comfortable about the state of inflation and future economic prospects, asset prices might respond favorably. 

“However this week plays out, I suspect today will be the most sedate day of the week to come [for crypto],” Oanda analyst Jeffrey Halley wrote in a recent research note.

Along with more earnings reports, another big event that could impact crypto and broader market activity will occur on Thursday, when the U.S. Bureau of Economic Analysis releases its estimate for gross domestic product (GDP) growth for the second quarter of the year.

In the first quarter of the year, U.S. GDP fell by 1.6% after growing nearly 7% in the fourth quarter of 2021. Two straight quarters of negative GDP growth technically signals a recession. Goldman Sachs earlier this month trimmed its GDP estimates for Q2 to roughly 0.7%, which would keep the U.S. just barely out of a technical recession.

With a strong labor market and most large U.S. banks reporting strong consumer spending in Q2, it doesn’t really feel like the U.S. economy tipped into a recession, but the market may see the slowdown as just beginning, which may not be so favorable for riskier assets like cryptocurrencies.

Now what

In the near term, I could see crypto prices going in either direction. A less hawkish Fed and better-than-expected GDP growth in Q2 could signal to the market that the Fed might be able to tame inflation and engineer a softer landing than many have envisioned in recent months.

That would likely bode well for crypto prices. But more hawkish comments and weak economic data may result in movement downward.

Either way, I still view Bitcoin and Ethereum as good long-term investments given their growing adoption all over the world and real-world use cases. Shiba Inu does not appear to have any technical or fundamental investment thesis, which is why I would avoid the meme token. 

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

The post Why Bitcoin, Ethereum, and Shiba Inu are falling today appeared first on The Motley Fool Australia.

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More reading

• Can Ethereum reach $10,000?
• Will Ethereum and Bitcoin see the ‘flippening’ in 2022?
• Did Elon Musk’s comments support or hurt meme tokens?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Tesla sells 75% of Bitcoin holdings. Here’s why Elon Musk is unloading

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

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

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The Woolworths Group Ltd (ASX: WOW) share price is one to keep an eye out for on Tuesday morning.

At yesterday’s market close, the conglomerates’ shares finished flat at $37.46.

Let’s take a look at what news is surrounding the company.

What did Woolworths announce?

In a statement to the ASX, Woolworths advised that its chair, Gordon Cairns will retire after spending 7 years in the role.

The departure of Cairns will come into effect at the group’s Annual General Meeting (AGM) on 26 October 2022.

Scott Perkins who has been a non-executive director for 8 years with Woolworths will be appointed as the new chair.

A public company director with extensive Australian and international experience, Perkins brings a wealth of knowledge to the position. Previously, he was a leading corporate advisor on strategy, mergers and acquisitions and capital markets matters.

Perkins held senior executive leadership positions at Deutsche Bank from 1999 to 2013. These included managing director and head of corporate finance for Australia and New Zealand, membership of the Asia Pacific corporate and investment bank management committee and CEO of Deutsche Bank New Zealand.

He is also serving as chair of energy giant, Origin Energy Ltd (ASX: ORG) since October 2020 and Brambles Ltd (ASX: BXB) since June 2015.

Words from the board

Woolworths outgoing chair, Gordon Cairns commented:

It has been a privilege to be the chair of Woolworths Group for the last seven years.

I am proud of the work that the team and directors have achieved together in transforming Woolworths Group and delivering for our shareholders. Moreover, I am humbled to have been the chair of a purpose-led business dedicated to working towards a better tomorrow for our teams, customers and the community.

Cairns also went on to add:

We are fortunate to have someone of Scott’s ability and experience, respected by his colleagues and management, to provide the oversight required to allow the business to reach its full potential

According to the Australian Financial Review, Woolworths signed an agreement with Pact Group Holdings Ltd (ASX: PGH) to supply recycled plastic for its home brand products.

This could also weigh in on the Woolworths share price at market open today.

Woolworths share price snapshot

A challenging 12 months caused by rampant inflation has led the Woolworths share price to move in circles, down 5%.

Last month, its shares hit a 52-week low of $32.62 before quickly rebounding by around 15% in the weeks after.

As Australia’s largest supermarket chain, Woolworths commands a market capitalisation of roughly $45.22 billion.

The post Why the Woolworths share price will be on watch today appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Analysts rate these ASX 200 blue chip shares as buys
• Here’s a look at what might happen to Woolworths shares in FY2023
• Woolworths share price falls despite ‘important’ $150m acquisition
• Experts name 2 blue chip ASX 200 shares to buy

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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South32 Ltd (ASX: S32) shareholders could be in for a payday following the recent sale of the company’s non-core base metals royalties.

The sale price of up to US$200 million, including US$103 million in cash payments, will be a big boost for South32’s coffers.

At yesterday’s market close, the South32 share price finished 0.85% higher at $3.56.

For context, the S&P/ASX 200 Index (ASX: XJO) was relatively flat, down 0.02%.

Let’s take a closer look at the diversified mining and metals company’s latest divestment.

South32 strengthens its balance sheet

The South32 share price has remained in a sideways channel of late. Yesterday, the company delivered its June quarterly report to the market.

In the update, South32 highlighted the successful sale of four non-core base metals royalties to Anglo Pacific Group Plc. This largely comprised copper and nickel assets in Australia, Chile, and the United States.

Subsequently, South32 expects to receive a US$135 million (A$195 million) post-tax gain within the ‘other income’ category in FY23.

However, it’s possible that with a souped-up balance sheet, South32 could hand some of the profits to shareholders in the near future. This may come in the form of a special dividend payment or even a bigger buyback.

South32 CEO, Graham Kerr provided a small hint, saying:

Our strong financial position and capital management framework, which is designed to reward our shareholders as our financial performance improves, supported further returns across the year via our on-market share buy-back, bringing total returns under our capital management program to US$1.9 billion since its inception.

If this does occur, South32 shares could move northwards if new investors decide to jump in on the action.

South32 share price summary

During the recent commodity boom, the South32 share price rocketed to an all-time high of $5.44.

However, this was short-lived. Aluminium prices have retraced to 52-week lows and coal has moved in circles. Ultimately, this has weighed on investor sentiment as talk of a potential recession persists.

So far in 2022, the South32 share price is down 12.5%. But it’s up 19% over the past 12 months.

South32 has a price-to-earnings (P/E) ratio of 10.22 and commands a market capitalisation of roughly $16.47 billion.

The post Could South32 shareholders be in for a $200 million payday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 midday update: EML crashes, Flight Centre jumps on guidance upgrade
• South32 share price higher on solid Q4 update
• 5 things to watch on the ASX 200 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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