Tag: Motley Fool

The Regis Resources Limited (ASX: RRL) share price is on course to end the week on a high.

In morning trade, the gold miner’s shares are up 11% to $1.44.

Why is the Regis Resources share price storming higher?

Investors have been bidding the Regis Resources share price higher today amid reports that Andrew ‘Twiggy’ Forrest is wanting to increase his stake in the company.

According to the AFR, the mining billionaire was seeking to acquire a 15% stake in the company for $1.48 per share. This represents a 13.8% premium to its last close price and values the stake at $168 million.

It’s understood that Twiggy had enlisted Barrenjoey’s equities desk to source the shares for his Wyloo Consolidated Investments business, which reportedly already owns a 4.9% stake in Regis Resources.

However, it was 15% or nothing as far as Twiggy was concerned, with his order made on a kill or fill basis.

Did it fill?

Unfortunately for Twiggy, his order was not a success according to the AFR. It quotes a message from Barrenjoey:

We received interest for in excess of 12% of the company. When aggregated with Wyloo’s existing position (4.9%), the combined stake would not have met 19.9% target as stipulated at launch. As a result, the transaction did not proceed.

Nevertheless, this news has caught the eye of investors on Friday. Which has led to the Regis Resources share price leaping higher.

Should you invest?

One broker that would be supportive of Twiggy’s ambitions is Macquarie. Last week the broker put an outperform rating and $2.20 price target on the company’s shares.

Even after today’s gain, this still implies potential upside of over 50% for investors over the next 12 months.

The post Regis Resources share price jumps 11% amid Twiggy Forrest raid appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• Down 18% in a week, what’s stolen the shine from the Regis Resources 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 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 Aussie Broadband Ltd (ASX: ABB) share price had a difficult month in June.

To finish the month, shares in the telco fell more than 20% into the red, bringing losses to over 30% for the year to date.

In broad market moves, the S&P/ASX 200 Communication Services Index (ASX: XTJ) also slipped 3.5% into the red last month and is down 16% since January.

What’s up with the Aussie Broadband share price?

Despite no news from the company in June, investors sold off Aussie Broadband shares at pace last month in tandem with the broad sector and the wider market.

The last we heard from the telco was back in May regarding its Q3 FY22 update. It reported a 42% year on year increase in total active broadband services to 697,083.

These figures weren’t inclusive of Aussie Broadband’s acquisition of fellow telco provider Over The Wire on 15 March 2022.

Folding in the acquisition and the company expects “annual cost synergies of between $8–$12 million within 3 years”.

Over The Wire is expected to deliver approximately $11 million in EBITDA “for the 3.5 months that ABB has owned OTW” in FY22.

Market punishment

Investors weren’t satisfied with the announcement at all and sent the share tumbling.

Just a week earlier investors had piled into Aussie Broadband shares at pace, driving prices to a 52-week high of $5.95 on 21 April.

However, shares plunged more than 28% on the day of the trading update announcement.

The market underwent a serious correction in June and ASX telecommunications shares weren’t immune to downside.

The broader communications sector was hit equally as hard and the XTJ fell to a 52-week low on 17 June.

As seen on the chart below, the Aussie Broadband share price followed suit soon after. It is now down 29% this year to date but has clipped a 13% gain in the last 12 months.

The post Why did the Aussie Broadband share price fall 20% in June? appeared first on The Motley Fool Australia.

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More reading

• ‘Just didn’t cut it’: Look out Telstra, a new high-speed start-up is coming for you!
• Down 47% in 2 months, is the Aussie Broadband share price an opportunity calling?
• Aussie Broadband share price dips despite telco named ‘Australia’s most trusted’
• Down 20% in 2022, is the Aussie Broadband share price a no-brainer buy?

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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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 CSR Ltd (ASX: CSR) share price is edging higher as the company pays out its latest dividend today.

The building products company’s shares are currently up 1.23% trading at $4.11 apiece.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is also hovering in positive territory during Friday morning trade. The benchmark index is up 0.65% to 6,610.8 points.

Let’s take a closer look at the ASX dividend share‘s payment today.

CSR pays out its biggest ever final dividend

On 11 May, CSR reported a robust performance in its full-year results for the year ending 31 March (YEM22).

Management said that elevated market activity across the residential housing sector had led to business growth.

The company reported trading revenue rose 9% to $2.3 billion compared to the prior corresponding period. On the bottom line, net profit after tax (NPAT) surged by 20% to $193 million.

With both metrics representing an increase, the board declared a final dividend of 18 cents per share.

This reflects an improvement of 24% on CSR’s previous final dividend of 14.5 cents apiece and is the biggest ever paid by the company. Note, the payment amount does not include the special dividend of 9.5 cents per share that was added to the YEM21 dividend.

When calculating against the current share price, CSR has a dividend yield of 7.65%.

CSR share price summary

The CSR share price has lost around 30% in 2022 after shares took a steep tumble in May and have been heading south ever since.

Shares in the company are down almost 27% over the past 12 months.

CSR has a price-to-earnings (P/E) ratio of 7.42 and commands a market capitalisation of roughly $1.97 billion.

The post Locked in the CSR dividend? Here’s the payment info appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Energy shares drop, PointsBet jumps
• CSR share price lights up amid mega $100 million buyback

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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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, Datt Capital principal Emanuel Datt explains why one particular ASX share remains his best pick to hold for many years.

The ASX share for a comfortable night’s sleep

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

Emanuel Datt: I think given the context of the market… I said Whitehaven Coal Ltd (ASX: WHC) last time — and since then it’s up 100%, incidentally. Not bad. 

I think that ultimately Whitehaven has a really big advantage. Again, the advantages that I pointed out about being in New South Wales. But also I think that just from a valuation perspective, they’re just, B, the management [is] trying to capture that value for shareholders via buybacks and, C, I think that just the microeconomics tailwinds, the type of coal they’re producing will persist for at least another 18 to 24 months.

A four-year time frame with something that’s priced at less than one times cash flow, and they have to be returning cash back to shareholders, I think that just makes it a bit of a no-brainer for me.

MF: Even if coal prices cool off in four years’ time you’ll still be ahead of the current share price. Is that how you’re feeling?

ED: Yeah, absolutely. 

For a commodity producer with long-life assets, I think a rule of thumb would be you see it trading at maybe six to eight times earnings. Sure, I understand that the oil price has run significantly, four times or so over the last 12 months. But I think that ultimately even if the coal prices are halved from here, I think it still looks very, very cheap. 

I also think that because, ultimately, some companies can become value traps, right, if they’re just sitting on the cash and not doing much with it. But I think the [Whitehaven] management have been quite proactive in listening to shareholders and actively trying to capture as much value via buybacks.

I wouldn’t be surprised to see them increase their buyback, given they’ve bought back 10%, I think, in probably a three-month period. I wouldn’t be surprised to see them apply for 20% or 25% or at least provide themselves with the flexibility to go that hard. 

If the stock price does fall then the company would basically be eating itself, right? Which is a great outcome for shareholders.

MF: It’s great that you have the consistency to back up Whitehaven from your last chat because if one year ago you thought that’s the one to hold for four years, then logically it should still be!

ED: Yeah, well, I think that’s the thing. You never know how good or bad your stock picks are but I think that there are very clear and fundamentally sound reasons why we want to maintain exposure to this. And I think that even though the whole market is looking weak, [you] just want to be invested in the strongest sectors in rough times.

The post I loved this ASX share a year ago, and it’s still my long-term pick: expert appeared first on The Motley Fool Australia.

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More reading

• How did ASX energy shares perform in June?
• Here are the top 10 ASX shares today
• ‘Extremely cheap’: expert names 3 ASX shares hot to buy now
• Why are ASX 200 coal shares bouncing back on Tuesday?
• This broker is eyeing off a huge 65% upside for the Whitehaven share price

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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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.

Among the tech sector‘s luminaries stands Apple (NASDAQ: AAPL), a well-regarded stock among many investors, including Warren Buffett. His Berkshire Hathaway owns a sizable chunk of Apple stock (over 900 million shares), but that strong endorsement alone doesn’t justify an investment.

The potential to buy the stock at a discount does hold some sway. Apple’s stock price hit a 52-week high of $182.94 on January 4, but it has fallen since then along with the broader market due to macroeconomic fears such as inflation. The price is down almost 26% from that high. The current financial environment creates uncertainty, but now may actually be a great time for investors with an eye toward the long term to pick up shares.

But there are at least three other solid reasons why this business can weather the present economic storm and continue to be a solid investment over the long run.

1. Apple keeps people coming back for its products

It’s no surprise the company that became famous for ushering in the personal computer era and the iconic iPhone would generate the bulk of its income from these products. In its fiscal 2022 second quarter (ended March 26), Mac and iPhone products comprised more than $60 billion of the company’s $97.3 billion in sales.

The iPhone, in particular, is Apple’s bread and butter. iPhone sales in the company’s fiscal Q2 represented more than half of all revenue at $50.6 billion. This has been the case for years, and Apple’s iPhone development efforts have what it takes to continue this growth.

Consumers are in the midst of transitioning to mobile phones that support new, more powerful 5G wireless networks. Apple released 5G-compatible iPhones in the fall of 2020, which helped propel fiscal 2021 iPhone sales to a 39% year-over-year increase after falling 3% in the prior fiscal year. The company is also releasing scaled-back, lower-priced models to go after segments of the market it had previously ignored.

Given rising inflation and threats of a recession, I wouldn’t be surprised if iPhone purchases slowed in the short term when compared to fiscal 2021’s blistering sales. But as consumer 5G adoption increases from 8% last year to an estimated 25% by 2025, so will iPhone purchases, ensuring Apple’s bread and butter remains intact over the long run.

2. Apple is not just a hardware company

It’s understandable to assume Apple will be hurt by inflation. Rising prices might force some consumers to hold off buying Apple’s latest devices. But Apple isn’t just a hardware company. For years, it quietly built a slew of software-as-a-service (SaaS) offerings that generate recurring revenue through subscriptions.

Apple’s services segment encompasses its AppleCare warranty and repair program, digital payments, cloud storage, advertising products, and digital content, which includes music, movie, TV, and video game subscriptions. This division has seen steadily rising revenue over the years, going from $46.3 billion in fiscal 2019 to $68.4 billion in fiscal 2021.

The segment got a boost from advertising revenue when Apple changed its ad policies last year to bolster consumer privacy. Customers can now block third-party apps from targeting them with ads. Consequently, companies reliant on advertising, such as Facebook parent Meta Platforms, saw revenue from their iPhone apps dramatically decline. Meanwhile, Apple benefited as advertisers shifted budgets to its ad products.

Cloud subscriptions are another key contributor to services’ sales growth. With our ever-increasing reliance on digital content, such as photos taken with mobile phones, consumers need a place to store that content. Apple’s cloud provides a solution. Since we’re unlikely to remove the hundreds, even thousands (in my case), of photos and other content uploaded to Apple’s cloud, the company has a revenue stream resilient to macroeconomic challenges.

3. Apple has built a self-sustaining ecosystem

The third reason to invest in Apple is the ecosystem it built through a symbiosis of its products and services. A consumer buying the latest iPhone can leverage the convenience of Apple’s cloud to automatically back up the phone’s content or stream movies on a television connected to an Apple TV device.

This interplay between Apple’s products and services increases a consumer’s reliance on both, bolstering Apple’s revenue through subscriptions between product purchases. This ecosystem will continue to expand, both through acquisitions — for which Apple has purchased around 100 companies over the past few years — and in-house research and development (R&D) efforts.

The company’s relentless quest to strengthen its technology is one reason why Apple invests heavily in R&D, which represented about half of the company’s operating expenses in fiscal Q2, and keeps so much cash on hand. The company exited fiscal Q2 with $28.1 billion in cash and equivalents.

Despite its strengths, Apple isn’t immune to macroeconomic factors. Investors should expect some pain in the short term. Apple’s fiscal third quarter could show a revenue hit due to the strong U.S. dollar since more than half its net sales come from outside the Americas.

But investors with an eye on the long term can wait for these macroeconomic storms to pass and, while waiting, can collect dividends from Apple stock. The dividend yield is a modest 0.65% at the time of writing, but many tech stocks offer no dividends.

So while inflation, supply chain woes, and other macroeconomic factors may create a daunting picture in the near term, investors holding shares for the long run will be glad they picked up Apple stock.

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

The post 3 reasons why Apple stock is a buy appeared first on The Motley Fool Australia.

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More reading

• Why Apple stock climbed on Wednesday
• Why Apple was a sour stock on Tuesday
• 2 monster Warren Buffett stock-split stocks to buy right now
• Why Meta, Amazon, and Apple shares were falling today
• Apple Is Starting to Walk and Talk Like a Bank. Could It Ever Become One?

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The author Robert Izquierdo has positions in Apple and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and 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), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and 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.

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It certainly was a month to forget for the Zip Co Ltd (ASX: ZIP) share price in June.

Over the 30 days, the buy now pay later (BNPL) provider’s shares lost a massive 52% of their value.

This made the Zip share price the worst performer on the ASX 200 index last month.

It also means the company’s shares are were 90% since the start of the year.

Why did the Zip share price crash in June?

The Zip share price came under significant selling pressure last month for a number of reasons.

One of those came early in the month when tech giant Apple announced the launch of its BNPL service.

Apple’s BNPL service works with any merchant that already supports Apple Pay and does not require a new payments terminal. Furthermore, consumers can use the service even if the merchant doesn’t actively offer BNPL.

What else?

In addition to this increasing competition, the Zip share price came under pressure amid broad weakness in the tech sector last month. This saw the S&P ASX All Technology index lose over 10% of its value during the period.

This weakness was caused by concerns over rising rates, which has led to a derating of growth stocks, recession fears, and the tough consumer environment. Investors appear to believe that these are the ingredients for a spike in bad debts.

Though, it is worth noting that Zip put out a business update last month which stated that its underlying business remains strong, with growth in customer numbers and transaction volumes. Management also stressed that it was focusing on driving its credit losses below the 2% threshold of total transaction volumes (TTV).

However, this was not enough to keep many investors on board, as you can see from the abject performance by the Zip share price. Remaining shareholders will no doubt be hoping for better in July.

The post Why did the Zip share price crash over 50% in June? appeared first on The Motley Fool Australia.

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More reading

• June was a terrible month for ASX BNPL shares. Here’s why
• These were the worst performing ASX 200 shares in June
• Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion?
• Zip shares sink 6% despite BNPL spend doubling this financial year
• Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive

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

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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.

It’s been a rough few months for Netflix (NASDAQ: NFLX). As we head into the final trading day of June, its shares are down by a stunning 70% year to date. 

A lot has gone wrong for the leading premium streaming service. In April, it delivered an ugly quarterly report, and it followed that with two small rounds of layoffs in May and June. The stock was already weak through the first three months of this year, but its sell-off only intensified as the fundamentals began to crumble. 

All that said, I’m not ready to give up on Netflix yet. Let’s go over some of the things that could help the pioneer of premium on-demand video bounce back in the month ahead. 

1. July 19 will be a good day to Netflix and thrill

Netflix is routinely one of the first consumer-facing companies to report during earnings season, and its next financial update is now less than three weeks away. It will announce its second-quarter results on July 19, shortly after the market close.

I realize that the last time that the company stepped up to report, investors were seriously disappointed. Management had targeted 2.5 million in net subscriber additions in the first three months of this year. It wound up reporting a net loss of 200,000 subscribers. Management also warned that it expected 2 million net defections for the second quarter. This was a company that used to routinely issue conservative guidance. Now, it has missed its subscriber targets in three of the last five quarters. 

The pattern isn’t pretty. Netflix stock has taken double-digit percentage hits the day after reporting fresh financials in back-to-back quarters. However, there is so much pessimism baked into the stock right now that even a ho-hum earnings report could send its price higher. Netflix remains the undisputed leader in this niche, and it’s definitely not just 30% of the company it was when the year began.

2. There are a lot of catalysts on the stove

Netflix actually has a lot of new things it’s working on, and success on any of those fronts could move the needle appreciably for the company.

We’re talking about a gaming initiative that has included buying indie developers to help beef up user engagement with its content. That gaming segment could also improve the value proposition of a Netflix subscription.

And after two decades of shunning commercials, Netflix is also talking about launching an ad-supported tier. That would give marketers access to its huge audience while offering consumers a cheaper way to watch. Netflix is also kicking the tires on a host of potential changes such as launching live streaming and giving some of its films theatrical releases prior to making them available on its platform. 

You don’t have to agree with all of these moves. The point here is that Netflix isn’t taking its stock price retreat lightly. It’s working hard to make sure it gets back to delivering shareholder value by improving the ways it monetizes its audience, content, and viewership data. 

3. Stranger Things have happened — and will again

Have you binged the latest season of Stranger Things yet? Well, you’re not done. Netflix released just the first seven episodes of the popular series in May. That set ended on a cliffhanger that should be resolved in the final two movie-length installments of the fourth season, which are rolling out on Friday. 

This was a brilliant move. It can’t be a coincidence that the highly anticipated conclusion of the season drops on July 1, the day after the end of the second quarter. That should help keep cancellations in check for Q2. If it works, don’t be surprised to see Netflix go back to this approach in the future to get a firmer grip on its churn.

Netflix is still the top dog among streaming services. It’s the only one spending $18 billion on content this year, and it has weathered recessionary storms in the past. One of the stock market’s biggest losers in the first half of 2022 could be one of its biggest winners in the second half. 

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

The post 3 reasons Netflix should bounce back in July appeared first on The Motley Fool Australia.

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More reading

• 4 potential winners from Netflix’s advertising plans
• 2 oversold stocks to buy in the Nasdaq bear market
• Is Netflix stock at a tipping point?
• Why is everyone talking about Netflix stock?
• Can Stranger Things stop Netflix’s subscriber bleed?

Rick Munarriz has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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

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The CSL Limited (ASX: CSL) share price is set to go above $300 according to David Clark, an expert from Cameron Harrison.

According to reporting by the Australian Financial Review, the ASX healthcare share could get back to that milestone “before too long”.

Clark thinks the outlook for the business is compelling and believes CSL can reverse the decline seen this year.

Since the beginning of the 2022 calendar year, the CSL share price has dropped by 9%. It has fallen along with many other ASX shares amid the intense market focus on inflation and interest rate rises.

In early trading on Friday, it is up 0.54% to $270.52.

So why the optimism about CSL? Let’s have a look at what Clark said to the AFR about the healthcare business with a $130 billion market capitalisation (according to the ASX).

Plasma division margins predicted to recover

Clark noted that there are two key divisions within the business. The blood plasma division called Behring generates around 70% of revenue, and the influenza vaccine division called Seqirus generates around 26% of the revenue.

The investment professional said demand for CSL’s blood plasma products remains “very strong” amid diminishing stockpiles during the pandemic. COVID-19 lockdowns and restrictions reduced accessibility of the donation hubs and “drastically” reduced donor rates for plasma.

Clark pointed out that the plasma division has higher fixed costs, so the COVID impacts hurt CSL’s profit margins. He said this explained the “flat” CSL performance in the second half of the pandemic. The CSL share price is still 20% lower than its pre-COVID peak.

Cameron Harrison thinks CSL’s plasma volumes will grow above pre-COVID levels in the second half of 2022 because of a few different tailwinds.

In the United States, higher payments to donors have helped stop a downward trend – Clark pointed out that CSL’s plasma collections volume was up 18% in the FY22 first half. CSL said it plans to open 35 new centres in FY22.

Another tailwind, according to Clark, is that CSL’s challenge on a ban on plasma donations by Mexican nationals on the B1/B2 visa was upheld last month, creating a potential tailwind into FY24.

The final potential tailwind for the plasma division that Clark referred to is that donations tend to rise when households have less disposable income.

If the US Federal Reserve’s interest rate rises lead to higher unemployment, it could “help donor rates”. As donation volumes rise, Cameron Harrison thinks there will be a “pronounced improvement” in the CSL profit margin, which could help the CSL share price.

Strong performance by Seqirus

The vaccine business has done better than expected, according to Clark. There was a bad flu season in the northern hemisphere and that’s followed through to the southern hemisphere. This is helping drive revenue and earnings before interest and tax (EBIT).

Explaining the positive outlook for this side of the business, Clark said to the AFR:

The success of the mass-scale COVID-19 vaccination program appears to have flowed into increased consumer comfort towards flu vaccines, which we expect to underpin higher vaccination rates.

CSL share price snapshot

While the CSL share price has suffered in 2022, it’s only down by 2% over the past month. It has also fallen around 5% over the past 12 months.

The post Why a CSL share price above $300 is on the cards: expert appeared first on The Motley Fool Australia.

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More reading

• ASX 200 healthcare shares provided some pain relief today. Here’s why
• What’s the outlook for the CSL share price in July?
• Has CSL been growing its dividend?
• ‘Don’t get too bearish’: 3 ASX shares Wilsons just added
• How much have CSL shares paid in dividends over the last 5 years?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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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ASX buy now, pay later (BNPL) shares suffered through June, falling as much as 58% in just 30 days.

Interestingly, most ASX-listed companies in the field were silent during this time. Here’s how the ASX’s most renowned BNPL shares performed last month:

• Zip Co Ltd (ASX: ZIP) – fell 52%
• Humm Group Ltd (ASX: HUM) – fell 47%
• Sezzle Inc (ASX: SZL) – fell 53.5%
• Block Inc (ASX: SQ2) – fell 28%
• Splitit Ltd (ASX: SPT) – fell 58%

For context, the S&P/ASX 200 Index (ASX: XJO) slipped nearly 9% last month while the All Ordinaries Index (ASX: XAO) slumped 9.5%.

So, what inspired such a dismal period for ASX BNPL shares? Let’s take a look.

What dragged ASX BNPL shares down in June?

Inflation, rates, and potential regulation, oh my. ASX BNPL shares suffered through yet another month of uncertainty in June.

The Reserve Bank of Australia hiked interest rates by 0.5% early last month in an attempt to control surging inflation. And that was likely bad news for ASX BNPL shares.

Increasing rates makes debt more expensive and, as a result, generally slows the economy, my Fool colleague Brendon Lau reports.

Pricier debt is often a hit to companies’ bottom lines. But BNPL companies face even greater challenges in such an environment.

A slower economy increases the likelihood that BNPL users default on payments, creating more bad debts.

Additionally, consumer sentiment tends to waver when rates rise. That could see fewer customers forking out on purchases they would otherwise use BNPL services to cover.

And finally, the regulation of BNPL companies has been flagged once more. Federal Financial Services Minister Stephen Jones is reportedly expected to introduce legislation to do just that in the near future.

There was also some notable drama among ASX BNPL shares last month.

Drama in Humm’s camp

While most ASX BNPL shares stayed silent through June, the Humm board was reshaped into a battleground.

Five of the company’s six board members announced their resignation last week after its remaining director campaigned against the now-scrapped sale of its BNPL leg.

Humm founding director and major shareholder Andrew Abercrombie fought against the company’s plan to sell its consumer finance business to Latitude Group Holdings Ltd (ASX: LFS) in a previously proposed mostly-scrip deal.

The company previously noted the business had failed to turn a profit in 2022.

The post June was a terrible month for ASX BNPL shares. Here’s why appeared first on The Motley Fool Australia.

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More reading

• These were the worst performing ASX 200 shares in June
• Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion?
• Bargains or value traps? Expert rates 3 ASX shares that halved this year
• Here’s why ASX 200 tech shares are taking a beating on Wednesday
• Zip shares sink 6% despite BNPL spend doubling this financial year

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

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The Ioneer Ltd (ASX: INR) share price is on course to end the week on a positive note.

In morning trade, the lithium developer’s shares are up 3.5% to 42.5 cents.

Why is the Ioneer share price rising?

Today’s gain appears to have been driven by news that the Ioneer share price had a solid debut on the Nasdaq index overnight.

The US-based emerging lithium–boron supplier commenced trading on the Nasdaq under an American Depositary Receipt (ADR) listing and ended the day 5% higher.

Ioneer’s Managing Director, Bernard Rowe, believes the secondary listing will be a boost to the company. He explained:

We believe this secondary listing will be greatly beneficial to the Company and its shareholders. There is a growing desire among North American investors to take part in the clean energy supply chain. We are pleased ioneer will gain greater visibility through a leading North American capital market trading platform that is suited for future-forward companies like ours.

What is Ioneer?

Ioneer is the company behind the Rhyolite Ridge lithium-boron operation in Nevada, USA. This is the only known lithium-boron deposit in North America and one of only two known deposits worldwide.

Management expects the operation to come on stream in 2025, making it a major domestic supplier of refined lithium and boron products. In fact, it estimates that it will produce enough supply of lithium materials for approximately 400,000 electric vehicles each year.

Ioneer Executive Chairman, James Calaway, said:

Rhyolite Ridge is a world-class lithium project and ioneer is ideally positioned to play a major role in the energy transition. We believe making it easier for North American capital market participants to invest in ioneer is consistent with our ambition to produce materials necessary to develop electric vehicle and renewable energy supply chain infrastructure in North America.

The post Here’s how this ASX lithium stock performed on its US debut appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares that leapt more than 10% on Thursday
• What’s boosting the Ioneer share price 14% higher?

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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