Tag: Motley Fool

The Fineos Corporation Holdings PLC (ASX: FCL) share price was in fine form on Tuesday.

The insurance industry software provider’s shares rose 15% to $1.61.

This means the Fineos share price is now up 24% since this time last week.

Why is the Fineos share price charging higher?

Investors have been bidding the Fineos share price higher following a rebound in the tech sector and some positive broker notes.

In respect to the former, the S&P/ASX All Technology Index rose over 2% on Tuesday after investor sentiment improved in the sector.

As for the latter, both Goldman Sachs and Macquarie have been talking positively about Fineos over the last week.

While Goldman Sachs only initiated coverage on the company’s shares with a neutral rating, its price target of $1.65 is still higher than where its shares are trading even after these strong recent gains.

Goldman’s analysts “see Fineos as well positioned to benefit from the long-term structural tailwinds of insurance industry digitisation and shift to cloud software.”

Over at Macquarie, its team are even more positive. Last week the broker put an outperform rating and $2.89 price target on the company’s shares. This implies over 80% upside for the Fineos share price from current levels over the next 12 months.

Macquarie believes that Fineos will outperform its peers in respect to software revenue growth. Yet, despite this, it notes that the company’s shares still trade at a large discount to them.

The post Why did the Fineos share price roar 15% higher 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

• 2 ASX tech shares in the All Ords that soared 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 recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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/p5L8HWt

The Adore Beauty Group Ltd (ASX: ABY) share price sank more than 20% in June 2022, adding to the declines already seen in 2022.

Shares of the e-commerce business declined 22.8% to finish the month at $1.05 apiece. This was significantly worse than what happened with the S&P/ASX 200 Index (ASX: XJO). The ASX 200 fell around 9% last month.

Adore Beauty is Australia’s leading online retailer. It sells more than 11,700 products across more than 270 brands.

Since listing a couple of years ago, the business has shown it was a beneficiary of the online shopping boom as more shoppers chose to buy their products online. However, investor sentiment has soured, particularly in 2022, with the Adore Beauty share price down more than 70% year to date.

What happened in June?

There were no operational announcements out of the company during June.

However, investors learned that Adore Beauty was being kicked out of the S&P/ASX All Technology Index (ASX: XTX).

Also, in the wider economic world, inflation and interest rate rises captured significant headlines and investor attention.

In June 2022, the Reserve Bank of Australia (RBA) increased its interest rate by 50 basis points, or 0.5%, and it has done so again in July with another 50 basis point increase today.

While higher interest rates hurt valuations in theory, it’s also possible that investors may think that demand for Adore Beauty products could take a hit if households have less money to spend on non-essentials.

However, Adore Beauty may have reason to have some confidence about the situation. With the release of the company’s FY22 third quarter update, the CEO Tennealle O’Shannessy said:

Beauty, especially skincare, is unique within the broader retail market and is resilient to economic challenges. Our products are used daily by customers, who consider these items essential and frequently re-purchase. The nature of premium beauty means our customers spend more as they mature on the platform, with returning customers typically contributing more than 70% of total revenue.

What’s next?

The last investors heard from Adore Beauty was the FY22 third quarter where revenue went up 9% year on year to $42.7 million and active customers increased 7% to 880,000.

Next month, Adore Beauty will be releasing its 2022 financial result for the 12 months to 30 June 2022. It may also include a trading update to tell investors how it performed in the first few weeks of FY23.

Adore Beauty snapshot

While the company’s share price has been falling in recent months, since the start of July it has risen by more than 4%.

The post Why the Adore Beauty share price fell another 20% in June 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 I think the Adore Beauty share price is a great buy today
• What Adore Beauty, Bubs, Eagers Automotive, and Renascor shares are storming higher
• Why the Adore Beauty share price is jumping but Kogan is falling
• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• 2 ASX growth shares I’d buy right away with $2,000

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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/EA2eoR1

The Liontown Resources Limited (ASX: LTR) share price is jumping today amid a new investor presentation to the market.

Liontown shares are rising 1.26% and are currently trading at $1.003. For perspective, the S&P/ASX 200 Index (ASX: XJO) is also up 0.49% today.

Liontown is developing the Kathleen Lithium Project in Western Australia. So what did today’s presentation reveal?

1. Lithium supply deficits predicted to continue

Liontown advised shareholders that the lithium market deficit will grow until 2030. The company said this is “driven by “tight supply”. Liontown said:

Analysts estimate that it can take up to 10 years for a lithium project to go online, leaving supply tight in the nearer future. There is currently no substitute for lithium in Li-ion cathodes.

The company noted spodumene producers are heading towards formula-based pricing for offtake contracts to capture “greater margin share” in the lithium supply chain. Liontown added at current spot prices, converters are retaining healthy margins centred on the “prevailing lithium hydroxide prices”.

2. Offtake agreements with Tesla, LG Energy Solution and Ford

Liontown spruiked its offtake agreements with major global companies including Tesla, LG Energy Solution and Ford.

These partnerships involve the production of 450,000 dry metric tonnes (dmt) per year of spodumene concentrate from the Kathleen Valley project.

Liontown noted Tesla is the biggest EV car company in the world, while Ford is also a leading automaker and LG is the second largest battery manufacturer in the world.

Liontown said:

Electric vehicles represent the vast majority of lithium demand and its forecast growth –

3. Mineral resource estimate ‘significant’

Liontown highlighted that Kathleen Valley is funded right through to production. This follows a $463 million equity raise and the $300 million Ford debt facility. This funding will help pay for the development costs of the project.

The company says the project is a “world class lithium deposit with a mineral resource estimate (MRE) of 156Mt at 1.4% lithium oxide.”

In late June, Liontown announced that the company’s board has endorsed the full development of this project.

The company is targeting net zero emissions by 2034.

Liontown share price snapshot

London shares have soared nearly 35% in the past year, while they have lost nearly 40% in the year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has jumped 9% in the past year.

Liontown has a market capitalisation of about $2.2 billion based on the current share price.

The post Own Liontown shares? Here are 3 takeaways from the company’s investor presentation 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 did the Liontown share price plummet 25% in June?
• Will the Liontown share price bounce back in July?
• Top broker names 3 of the best ASX 200 shares to buy in FY23
• Why have ASX lithium shares had such a lousy month in June?
• Top broker says the Liontown share price can rise 150%

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

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

If you’re wanting to gain a little exposure to the mining sector, then you may want to check out the ASX mining shares listed below.

They have been named among Bell Potter’s top picks for FY 2023. Here’s what the broker is saying:

Arafura Resources Limited (ASX: ARU)

The first ASX mining share that Bell Potter rates highly is Arafura Resources. The broker sees a lot of potential in the company’s Nolans rare earth project. It estimates that it could supply upwards of 8% of the permanent magnet market for electric vehicles and wind turbines.

Bell Potter also highlights that a deal is in the work with Hyundai for up to 30% of its production for the first seven years of operation.

It commented:

ARU’s advanced Rare Earth (RE) project, Nolans, is anticipated to feed potentially 8% of global supply directly into the permanent magnet market servicing expansion of electric vehicles and wind turbines. ARU will look to reach a final investment decision by the end of CY22, with first production expected around the end of CY24 subject to funding which is predicated on securing 85% of planned production over the first 7-10 years. The first step towards binding offtake was taken with Hyundai signing an MoU for up to 30% of production over 7 years beginning in 2025.

The broker currently has a speculative buy rating and 60 cents price target on its shares.

Nickel Industries Ltd (ASX: NIC)

Another ASX mining share that Bell Potter likes for FY 2023 is Nickel Industries. The broker is expecting this nickel producer, formerly known as Nickel Mines, to deliver strong earnings growth thanks to increasing production.

It explained:

NIC has grown to become the largest nickel producer on the ASX and built a track record of ahead-of-schedule project delivery, achieving steady state production above nameplate and returning capital to shareholders. Despite rising input costs in CY22, NIC has been able to maintain and expand margins and following the successful commissioning of the Angel Nickel Project, NIC is on track for earnings growth of over 60%. In CY23, the Oracle Nickel project is on schedule to lift attributable production to ~80ktpa Ni in NPI and drive earnings growth of ~70%. NIC is trading on undemanding valuation multiples and remains one of our Top Picks for CY22.

Bell Potter has a buy rating and $2.00 price target on Nickel Industries’ shares.

The post Broker names 2 ASX mining shares to buy in FY23 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

• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• What is the current dividend yield on Nickel Industries shares?
• The Nickel Industries share price has tumbled 36% since early March. What’s going on?
• Why is the Arafura share price down 5% on Friday?

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.

from The Motley Fool Australia https://ift.tt/lpY42hf

A rough day on the market was turned around this afternoon as many S&P/ASX 200 Index (ASX: XJO) bank shares bounced into the green. Their U-turn came as the Reserve Bank of Australia (RBA) hiked interest rates for a third consecutive month.

Here’s how the ASX 200’s ‘big four’ banks are performing at the time of writing:

• Commonwealth Bank of Australia Ltd (ASX: CBA) – up 0.42%
• Westpac Banking Corp (ASX: WBC) – up 0.56%
• National Australia Bank Ltd (ASX: NAB) – up 0.07%
• Australia New Zealand Banking Group Ltd (ASX: ANZ) – down 0.02%

For context, the ASX 200 is currently up 0.52% while the S&P/ASX 200 Financials Index (ASX: XFJ) has lifted 0.34%.

What’s going on with ASX 200 banks on Tuesday?

ASX 200 banks are trading on Tuesday amid a third rate hike in as many months. The RBA increased the official cash rate by 0.5% to 1.35% – broadly in line with market expectations.

The move is yet another attempt to control inflation, which hit 5.1% in the March quarter.

Rising rates bring positives for banks. It allows them to change their variable loan rates, generally increasing their net interest margins (NIM).

Though, it also increases the likelihood of mortgage foreclosures. That’s particularly worrying as 23.1% of new residential mortgage loans funded during the March quarter were found to have debt-to-income ratios of at least six times.

Passing on the last three rate hikes to borrowers would see those holding a $500,000 mortgage with 25 years remaining paying $333 more in repayments each month, reports RateCity.

On top of that, rising rates can negatively impact housing prices, therefore lowering the value of some banks’ loan books.

It’s also worth noting that other ASX 200 banks are outperforming right now.

Shares in Macquarie Group Ltd (ASX: MQG), Bendigo and Adelaide Bank Ltd (ASX: BEN), and Bank of Queensland Ltd (ASX: BOQ) have gained 1.19%, 0.87%, and 1.48% respectively.

The post What’s going on with ASX 200 bank shares on Tuesday? 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

• Why the ASX 200 is rallying after the RBA’s rate hike today
• Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday?
• The surprising ASX shares to buy as interest rates rise: expert
• CBA share price slips as analyst warns of $2 billion Klarna scratch
• Why did the ANZ share price underperform the ASX 200 in June?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group 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.

from The Motley Fool Australia https://ift.tt/F63hUxE

The South32 Ltd (ASX: S32) share price had a turbulent time in FY22. With the end of financial year behind us, the company now trades back in line with its September 2018 levels.

At the time of writing, South32 is rangebound and trades at $3.87 per share, down more than 3% this year to date.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has gained 81 basis points on the day.

South32 share price faced choppy times in FY22

Shares in the diversified miner were propped up by the commodity boom in FY22. Prices for coal and aluminium in particular were very buoyant and remain so into the new financial year.

The former has remained top-heavy, whereas the price for aluminium has retraced back to its 52-week lows of US$2,464 per tonne. Returns for all 3 since March are seen below.

However, just about all of the commodity markets South32 has exposure to rallied hard in FY22.

The benefits of higher pricing were on full display in the company’s March quarter results, with the production and revenue numbers coming in strong.

In the same vein, however, full-year production costs were also forecasted to increase – a point that investors didn’t appear too pleased with at the time.

As a result of the ups and downs of FY22, the South32 share price has managed to secure a roughly 31% gain over the past 12 months to date.

It rallied as high as $5.36 on 7 March 2022 and then reached $5.17 on 8 June, but has since pared gains to its current levels.

Looking ahead, South32 now has its full-year results to be released in the coming months, along with its annual report.

Meantime, 19 analysts rate the share as a buy right now, with 2 analysts saying it’s a hold, per Bloomberg data.

The post How did the South32 share price perform in FY22? 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

• Experts name these ASX 200 dividend shares with big yields as buys
• 3 more of Morgans’ best ASX share ideas for July
• Here are the 3 most heavily traded ASX 200 shares on Monday
• South32 crashes into bear market in June as recession fears bite
• How have ASX 200 mining shares fared over June?

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/o6jfpmY

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is up 3.06% in late trading on Tuesday amid the completion of an institutional $15 million capital raise.

The company is also offering a non-renounceable $2 million share purchase plan (SPP) for eligible existing Electro Optic Systems shareholders.

The net proceeds of the placement and SPP will be used for working capital and near-term capital requirements. Priority will be given to the core defence business.

What does Electro Optic Systems do?

Electro Optic Systems is an Australian technology company that develops and produces electro-optic technologies for the aerospace market.

Of its three reportable segments, defence is its biggest revenue raiser. The other two segments are communication and space.

What are the details of the SPP?

On 29 June, Electro Optic Systems announced a successful non-underwritten placement of 12.5 million new fully paid ordinary shares to institutional investors to raise approximately $15 million.

The placement shares were priced at $1.20 apiece and were issued today.

The company also announced the SPP, giving eligible shareholders the opportunity to purchase up to $30,000 worth of new shares at the same price.

In a letter to shareholders provided to the ASX today, Electro Optic Systems said the SPP was open to investors on the company register as of 7pm AEST on 28 June.

Shareholders can apply to buy parcels of shares in lots of $2,500, $5,000, $7,500, $10,000, $15,000, $22,500, or $30,000.

Investors must apply and pay for their new shares by 5pm AEST on 19 July.

There are no brokerage or other transaction costs involved in the SPP.

What did management say?

Electro Optic Systems chair Peter Leahy, AC, said:

We welcome the support for the Placement and the new institutional investors to the register. On behalf of the Board of Directors of EOS, I would also like to thank our existing shareholders for their ongoing support.

Market update for 1H FY22

Electro Optic Systems also provided the ASX with an update for 1H FY22.

For the six months to 30 June, the company is expecting an EBIT loss of approximately $45 million (unaudited). This includes a $15 million loss relating to SpaceLink.

Electro Optic Systems said two contract delays and the federal election’s impact on new projects affected revenue.

The company provided guidance that it expects FY22 revenue to be equal to or exceed FY21.

The post Own Electro Optic Systems shares? Here’s how the company is raising $17 million 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

• Why is the Electro Optic Systems share price hitting a new 52-week low?
• Here’s why the Electro Optic Systems share price collapsed 26% today
• Why Carsales, EOS, Imugene, and Tyro shares are sinking today
• Why is the Electro Optic Systems share price frozen today?

Motley Fool contributor Bronwyn Allen 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 Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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/MB6rhD9

The S&P/ASX 200 Index (ASX: XJO) bounced even as the Reserve Bank of Australia (RBA) lifted interest rates to a more than three-year high today.

The central bank increased the cash rate by 50 basis points to 1.35% as it moved to curb high inflation. Rates have not been this high since May 2019.

Higher rates are typically bad news for ASX shares, but there could be a good reason why investors see a silver lining.

Why ASX 200 shares jumped with the RBA rate hike news

For one, RBA Governor Philip Lowe seems to be sitting on the fence when it comes to the size of future rate hikes.

Many economists are predicting the RBA will follow through with at least another 50-point hike next month.

While the RBA indicated further hikes are on the way in the coming months, Lowe’s statement was more balanced than some might have thought.

Another big interest rate hike isn’t a given

If anything, our central bank said the size and timing of future hikes will be guided by incoming data. This suggests another large hike next month isn’t a given.

This could explain why the ASX 200 moved higher on the news to trade 0.6% in the black in the last hour of trade. It also explains why the Australian dollar stayed sluggish at around US68.6 cents. The Aussie would have jumped if the RBA was more hawkish.

Biggest swing factor

It appears that a key swing factor the RBA is watching is household spending. Recent economic data suggests spending remains positive although this could change. Lowe said:

Household budgets are under pressure from higher prices and higher interest rates. Housing prices have also declined in some markets over recent months after the large increases of recent years. The household saving rate remains higher than it was before the pandemic and many households have built up large financial buffers and are benefiting from stronger income growth. The Board will be paying close attention to these various influences on household spending as it assesses the appropriate setting of monetary policy.

This suggests that if we don’t want much higher rates, we should curb our spending.

Other things the RBA is watching

The other factors that the RBA will be watching are employment and the outlook for inflation. Lowe appears to be a little more confident with forecasting these remaining drivers.

He noted that the labour market looks to be strong due to the worker shortage. The unemployment rate fell to a near 50-year low of 3.9% in May, while underemployment also declined significantly. The RBA believes this trend is likely to persist in the months ahead.

Meanwhile, the RBA is forecasting inflation to peak this year before quickly falling back to its 2% to 3% comfort zone next year.

So, if households do cut back on consumption, interest rates may not need to climb as quickly or as high as the markets fear, even if employment remains low.

The post Why the ASX 200 is rallying after the RBA’s rate hike 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 Woodside Energy share price leading the ASX 200 higher on Tuesday?
• The surprising ASX shares to buy as interest rates rise: expert
• Wipeout: Why did the Magellan share price sink 70% in FY22?
• ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting
• Why ASX 200 value shares are surviving the sell-off better than growth shares

Motley Fool contributor Brendon Lau 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/5n7YcHl

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is storming higher. At the time of writing, the benchmark index is up 0.7% to 6,656.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Ardent Leisure Group Ltd (ASX: ALG)

The Ardent Leisure share price is down a massive 64% to 51 cents. Today’s decline is due to the entertainment company’s shares trading ex-capital return this morning. Eligible shareholders can now look forward to receiving a total capital return of 95 cents per share next week. This comprises a return of capital of 46.0699 cents per share and an unfranked dividend of 48.9301 cents per share. This follows the sale of its Main Event business to Dave and Busters.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is down 6% to 38.5 cents.  This is despite there being no news out of the betting technology company on Tuesday. However, it is worth noting that the company’s shares have been strong performers recently. In fact, they are still up 10% since this time last week despite today’s decline. This could mean some traders are taking a bit of profit off the table today.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down 1.5% to $10.85. This morning analysts at Morgan Stanley retained their underweight rating and $10.25 price target on this insurance giant’s shares. Its analysts believe Suncorp’s FY 2023 catastrophe budget is too low and the company could get caught short. Particularly given that the Bureau of Meteorology is predicting around a 50% chance of La Nina forming in late 2022.

Ten Sixty Four Ltd (ASX: X64)

The Ten Sixty Four share price is down 3% to 63 cents. This follows news that the gold miner, previously known as Medusa Mining, has kicked out its outgoing managing director Paul Welker. Mr Welker resigned last week and was serving a six-month notice period. However, the company has kicked Mr Welker out immediately after finding out that he had a financial interest in another company that entered into an important commercial contract with Ten Sixty Four.

The post Why Ardent Leisure, Betmakers, Suncorp, and Ten Sixty Four shares are dropping 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 Ardent Leisure share price crashing 67% today?
• These are the 10 most shorted ASX shares
• ASX 200 midday update: Suncorp’s update, Magellan sinks
• June was a terrible month for ASX 200 bank shares. Here’s why
• Why is the Ardent Leisure share price jumping 9% 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 positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/d2xF7Ki

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 in Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) declined by 13.7% in June, underperforming the benchmark S&P 500 index’s decline of 8.4%. The place to start when looking at why is by analyzing what’s in the Berkshire Hathaway portfolio. So here’s a table of all the holdings above 3% in the portfolio as of March 2022. 

Company	Sector	Portfolio Weight
Apple	Consumer electronics	42.1%
Bank of America	Bank	11.3%
American Express	Financial services	8%
Chevron	Energy	7%
Coca-Cola	Consumer staples	7%
Occidental Petroleum	Energy	3.6%
Kraft Heinz	Consumer staples	3.5%

Data source: Berkshire Hathaway SEC filings.

As you can see below, Apple’s performance in June was pretty much in line with the market, and the leading consumer staples stocks (Coca-Cola and Kraft Heinz) outperformed the market. However, the finance and energy stocks significantly underperformed. For reference, Berkshire holds a further 7% in banking and finance stocks.

Data by YCharts

The performance in June marks a reversal of fortune because, going into the month, Berkshire Hathaway was up in 2022 with a 5.2% gain compared to a 13.3% decline in the index. In addition, energy and consumer staples led outperformance to the start of June.

So what

The reversal in Berkshire Hathaway’s performance reflects the shift in the market’s mood more than any fundamental change in the long-term prospects of the companies in the portfolio. Speculators likely bought into the type of stocks seen as benefiting from inflationary trends (energy) and kept buying until the Federal Reserve acted aggressively to combat inflation by hiking rates. 

However, as the market anticipated and then digested the Federal Reserve rate hike in the middle of June, it sold off the “inflation plays” as well as the cyclical, banking, and financial stocks. The idea is that rising rates will make spending and investment more expensive, meaning end-market demand will tail off.

Now what

The market will do one thing, and Buffett will do another. Reacting to near-term market movements and trying to trade sentiment and mood changes among investors is rarely a winning strategy over the long term. Indeed, Buffett’s success as an investor lies precisely in avoiding this kind of knee-jerk trading. Instead, Buffett tends to favor buying and holding companies for their long-term fundamental earnings power. And while the market is panicking, it’s worth noting that Berkshire Hathaway is only down 1% on a year-over-year basis. Something to consider. 

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

The post Why shares in Berkshire Hathaway fell in June 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

• 2 monster Warren Buffett stock-split stocks to buy right now
• My top Warren Buffett stock to buy right now
• 3 stocks Warren Buffett bought hand over fist as the market plummeted
• Representing 40% of Warren Buffett’s portfolio, here is why Apple is a great stock to own today
• My top Warren Buffett stock to buy right now

Lee Samaha 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 Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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/KhBGo1X