Tag: Motley Fool

  • Why is the Northern Star share price sinking 9% today?

    A star has fallen from the sky and landed, burning and smoking, in the desert and sinking into the sand.A star has fallen from the sky and landed, burning and smoking, in the desert and sinking into the sand.

    It’s a rough day for the S&P/ASX 200 Index (ASX: XJO) gold miner Northern Star Resources Ltd (ASX: NST) share price.

    It’s tumbling to its lowest point in nearly four years amid disappointing guidance from a peer and the struggling gold price.

    At the time of writing, the Northern Star share price is $7.26, 9.14% lower than its previous close.

    For context, the ASX 200 is currently up 1.53%.

    Let’s take a closer look at what’s going on with the ASX 200 gold giant today.

    What’s weighing on the Northern Star share price?

    The Northern Star share price is slumping on Monday. Its downturn comes amid news the company’s fellow ASX 200 gold miner Evolution Mining Ltd (ASX: EVN) is expecting its full-year production to fall.

    Evolution told the market it expects its financial year 2022 production to be around 6% lower than that of financial year 2021. It’s also expecting its production costs to be higher.

    Such news might have weakened the market’s sentiment for ASX 200 gold miners on Monday.

    Additionally, shares involved in the yellow metal currently make up today’s worst performers on the S&P/ASX 200 Materials Index (ASX: XMJ).

    Shares in Evolution are down around 18% right now, while those in Newcrest Mining Ltd (ASX: NCM) have slipped 5%.

    Fortunately, the materials sector is buoyed by its other constituents. It’s currently up 2.3%.

    The tumble among ASX 200 gold stocks comes as the commodity’s price continues to struggle.

    Gold futures rose just 50 US cents on Friday, less than 0.1%, to US$1,830.30 an ounce, according to CommSec. Meanwhile, the spot gold price closed Friday trading at US$1,826 an ounce, marking a second consecutive weekly drop. It fell 0.6% over the course of last week.

    The Northern Star share price slumped 15.58% last week. It’s currently 22% lower than it was at the start of 2022. It has also fallen 28% since this time last year.

    The post Why is the Northern Star share price sinking 9% today? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 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 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again

    Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices

    Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices

    At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 1.6% to 6,686.1 points.

    Here’s what is happening on the ASX 200 today:

    Metcash jumps on FY 2022 results

    The Metcash Limited (ASX: MTS) share price is storming higher today after the wholesaler smashed the market’s FY 2022 earnings estimates. Metcash reported an 18.6% increase in underlying net profit after tax to $299.6 million. This compares favourably to the market consensus estimate of an underlying profit of $279 million. Solid growth from all sides of the business drove the strong result.

    Imugene shares rocket on study results

    The Imugene Limited (ASX: IMU) share price is rocketing higher today following the release of study results. This morning the immuno-oncology company revealed positive final overall survival data from its Phase 2 study of HER-Vaxx following the analysis of safety and efficacy data. This study was in Her-2/Neu overexpressing advanced/metastatic gastric/GEJ cancer.

    Evolution shares crash on third FY22 guidance downgrade

    The Evolution Mining Ltd (ASX: EVN) share price is having a day to forget. This gold miner’s shares have been crushed after it downgraded its FY 2022 guidance yet again. Evolution now expects FY 2022 gold production to be around 640,000 ounces. This compares to its original guidance of 700,000 to 760,000 ounces, which was then reduced twice, most recently to 650,000 ounces. Costs are also expected to be higher than expected and future production will be lower than guided to.

    Best and worst ASX 200 performers

    The best performer on the ASX 200 index on Monday by some distance is the Imugene share price with a 40% gain. This follows the release of positive study results. Going the other way, the Evolution share price is far and away the worst performer with a 20% decline. This has been driven by its bleak guidance update.

    The post ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 surprising reason why you should fight your own instincts in a bear market

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

    Run Away from Shadow ASX tech shares bear market

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

    Fight or flight is a natural survival mechanism. But history tells us that holding through periods of volatility is the best way to compound wealth over time. It’s tempting to fight a bear market by shifting your investment strategy toward whatever is working in the moment, or to sell everything and clear your head.

    Here’s why defying instincts is one of the hardest parts of investing, but why it can be an essential quality for patient long-term investors to master.

    Drawbacks of the “fight” response

    Actively fighting a bear market involves trying to trade your way through volatility by doing things that you normally wouldn’t do, such as rotating out of the worst-performing sectors (like consumer discretionary, communications, and tech) and into sectors that are doing well right now (like energy and utilities), or worrying more about the next quarter than the next five years.

    Hedge fund managers may lose clients over a bad quarter. But as an individual investor, all you have to worry about is reaching your long-term financial goals — which takes the pressure off short-term market gyrations and makes it easier to hold through periods of volatility.

    There’s a big difference between positioning your portfolio for long-term success and actively fighting a bear market. The former is a worthy exercise, no matter the market cycle.

    For example, the long-term investment thesis for a company could change for several reasons. It could have a weak balance sheet, lack positive cash flows, or be making less money, which could force it to take on debt at a higher interest rate. Maybe the company is losing market share to a better-positioned competitor with deeper pockets. Consolidation is a common outcome of economic downturns, as companies with more resources have the means to gobble up smaller companies that are vulnerable to macroeconomic factors.

    While an investor shouldn’t overhaul their entire approach just because the stock market is going down, now is definitely a good time to make sure you are invested in companies you understand, believe in, and that have a good shot at growing for decades to come.

    Drawbacks of the “flight” response

    For many investors, the growth stock bear market of 2021 and 2022 is the longest bear market of their investing careers. And now that the S&P 500, Nasdaq Composite, Nasdaq 100, and the Russell 2000 are all in bear markets (meaning a drawdown of at least 20% from the all-time high), and the Dow Jones Industrial Average is just one percentage point away from a bear market, fears of a prolonged bear market are mounting.

    ^SPX Chart

    ^SPX data by YCharts

    Each passing down-day can take a toll on an investor and make the urge to sell and walk away look even more appealing. But history tells us that bear markets can create life-changing buying opportunities for folks who have the patience to ride out the storm.

    It’s one thing to look at history and realize that selling during a bear market has so far never been the right long-term move. But when you’re in the thick of one, it helps to have some points to fall back on.

    For me, the best approach is to simplify the situation: Does the business have the fundamentals to outlast several quarters of negative economic growth? Is it going to take market share during a recession or lose it? How vulnerable is it to the short-term challenges, and do those challenges affect the long-term investment thesis?

    If you go through this exercise enough, chances are you’ll realize that many industry-leading companies look like compelling buys, while many smaller companies whose growth was largely attributed to inexpensive capital and rising stock prices that made for easier equity financing are in a precarious position.

    The benefits of just standing still

    One of the best approaches for most investors could be to pick their favorite name-brand companies and hold them. It’s a beautifully simple strategy that also helps you sleep at night. No matter how bad the sell-off gets, you can rest easy knowing that these large companies have been through a recession before and have often emerged stronger on the other side.

    Despite decades of wisdom and access to a limitless treasure trove of information, many investors fail to beat the market mainly because they make a simple mistake, such as fighting or fleeing from a bear market. As difficult as it is to do nothing and just stand still in a bear market, it’s the most effective and simple way to compound wealth over time. Avoiding mistakes like selling an asset at a bargain-bin price are just as important as making good decisions.

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

    The post The surprising reason why you should fight your own instincts in a bear market appeared first on The Motley Fool Australia.

    Should you invest $1,000 in right now?

    Before you consider , you’ll want to hear this. Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and wasn’t one of them. The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks *Returns as of June 1 2022

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



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  • RPMGlobal share price jumps higher after breaking the $50 million contract barrier

    man jumping along increasing bar graph signifying jump in alumina share priceman jumping along increasing bar graph signifying jump in alumina share price

    The RPMGlobal Holdings Ltd (ASX: RUL) share price is roaring higher during Monday morning trade.

    This comes after the mining software company announced a sales update on its software licences for the 2022 financial year.

    At the time of writing, RPMGlobal shares are fetching for $1.70, up 3.98%.

    What’s driving RPMGlobal shares higher?

    Investors are bidding up the RPMGlobal share price following the company’s upbeat release to the market.

    In today’s statement, RPMGlobal revealed its latest figures highlighting ongoing demand for its products and services.

    Total Contracted Value (TCV) from software licence sales since the start of 2022 has broken through the $50 million barrier.

    Currently, software licence sales are at $50.3 million. This also includes $1.7 million from its perpetual licence contracts.

    Previously, management stated that it achieved $47.4 million in software licence sales on 14 June. The increase of $2.9 million in just two short weeks reflects the favourable trading conditions that RPMGlobal continues to experience.

    In addition, Annual Recurring Revenue (ARR) from software subscriptions has increased from 14 June by $0.5 million to $31.6 million.

    It’s worth noting that this does not include any annually recurring maintenance and support revenue from past perpetual software licenses.

    Lastly, RPMGlobal stated that there is $90 million in non-cancelable software subscription revenue that has yet to be materialised. This is expected to deliver an earnings boost for years to come.

    About the RPMGlobal share price

    A choppy 12 months has led the RPMGlobal share price to register a loss of 2% for the period.

    However, when looking at year-to-date, its shares are down 21%.

    The company’s shares hit a 52-week low of $1.415 last month before rebounding higher.

    Nonetheless, it’s still some way off its all-time high of $2.27 reached at the end of 2021.

    Based on today’s price, RPMGlobal presides a market capitalisation of roughly $395.40 million.

    The post RPMGlobal share price jumps higher after breaking the $50 million contract barrier appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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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  • Why this ASX graphite share is a buy: fund manager

    A woman holds a pencil on her nose and contemplates an unsatisfactory result.A woman holds a pencil on her nose and contemplates an unsatisfactory result.

    ASX graphite shares have received increasing attention as the global energy transition picks up pace.

    You may be more familiar with graphite in pencils. But it’s the metal’s ability to increase energy density in batteries and decrease charging times that’s drawn ASX investor interest.

    The federal government lists graphite as a critical mineral because it’s “essential for the functioning of our modern technologies, economies or national security, and there is a risk that its supply chains could be disrupted”.

    As it stands, China is responsible for some 60% of global graphite production.

    But with a range of ASX graphite shares to consider, which one stands out?

    According to global resources portfolio manager at Ausbil Investment Management Luke Smith, that company is Syrah Resources Ltd (ASX: SYR).

    Not all graphite companies are created equal

    Speaking to Livewire, Smith highlighted graphite’s critical role in the energy transition. “But not all graphite companies are created equal,” he said.

    When it comes to ASX graphite shares, Smith said Ausbil prefers natural graphite:

    Its main competitor in the space is synthetic graphite. You’ve seen energy costs go through the roof. That’s limiting output. You’ve seen petroleum products go through the roof, that feeds into the production of synthetic graphite as well. And that’s placing upward pressure on pricing within the graphite space.

    Drilling into why Syrah is his preferred ASX graphite share, Smith said:

    Syrah used to be the market darling a number of years ago… [They] created a mine, have approvals, have gone through the approval process in terms of selling into the battery supply chain. That process takes years.

    They’ve got a major mine that’s producing below nameplate, and ultimately is going to be feeding into this higher price environment, and ultimately we’ll continue to see a re-rate of that story, from our perspective.

    Nameplate, if you’re not familiar, refers to a mine’s full production capacity.

    Syrah Resources share price snapshot

    Over the past 12 months, the Syrah Resources share price is up 22%, handily outpacing the 10% full-year loss posted by the All Ordinaries Index (ASX: XAO).

    The ASX graphite share has struggled in 2022, though, down 30% year-to-date.

    The post Why this ASX graphite share is a buy: fund manager appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Syrah Resources Ltd right now?

    Before you consider Syrah Resources Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Syrah Resources Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    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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  • Qantas share price climbs as first direct flight to Europe touches down in Rome

    A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

    The Qantas Airways Limited (ASX: QAN) share price is in the green today following an eventful few days for the airline.

    Qantas shares are currently jumping 2.92% to $4.58. For perspective, the S&P/ASX 200 Index (ASX: XJO) is leaping 1.68% today

    Let’s take a look at what’s happening at Qantas.

    Speedy long-haul flight lands in Rome

    Qantas’ inaugural flight from Sydney to Perth to Rome landed in Europe on Sunday morning. The flight is the first direct flight between Australia and Europe. Qantas CEO Alan Joyce and West Australian Premier Mark McGowan were among the special guests onboard the flight, the Australian Financial Review (AFR) reported. McGowan was quoted as saying, it is “exciting to reopen to the rest of the world”.

    Recent figures show the number of Australians travelling overseas has nearly doubled since borders opened, according to the ABC. A total of 663,970 people left Australia in May, up from 335,240 in March.

    In recent news, Qantas is cutting domestic flight capacity to schedules from July until the end of March 2023. This drop is designed to help the company recover high fuel costs.

    Qantas said:

    These reductions, combined with robust international and domestic travel demand, are expected to help the Group substantially recover the elevated cost of fuel indicated by forward oil prices.

    The airline will also be providing 19,000 employees with a $5,000 bonus at a cost of $87 million. This will be paid once a new enterprise agreement is completed. Further, Jetstar CEO Gareth Evans will step down in December 2022. Jetstar is part of the Qantas Group.

    Brent crude oil prices have fallen 1.33% at the time of writing, while WTI crude oil prices are down 1.51% today. Falling oil prices can help travel shares because fuel is a major cost for airlines.

    Qantas share price snapshot

    The Qantas share price has shed 3.17% in the past 12 months, while it has descended nearly 9% year to date.

    For perspective, the benchmark ASX index has lost more than 10% so far this year and 8.5% in a year.

    Qantas has a market capitalisation of about $8.6 billion based on today’s share price.

    The post Qantas share price climbs as first direct flight to Europe touches down in Rome appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • What percentage of A2 Milk shares are owned by institutions?

    a man in a business shirt, tie and suit holds a mobile phone to his ear while he drinks a large glass of milk.a man in a business shirt, tie and suit holds a mobile phone to his ear while he drinks a large glass of milk.

    The A2 Milk Company Ltd (ASX: A2M) share price has been dwindling lower, now down almost 19% in 2022 so far.

    After a strong start to June, A2 Milk turned sharply and is now trading off its monthly highs. The company’s shares are now fetching $4.42 each in early trade on Monday. That’s down 1.34% on Friday’s closing price.

    Let’s check the company’s shareholder statistics that reveal some fairly interesting findings.

    A2 Milk’s institutional ownership

    More than 57% of the company’s shares are owned by institutions, according to Bloomberg data.

    In June 2020, it was 85%. Hence, there’s been a substantial drop in institutional interest in A2 Milk since that time.

    There are 189 institutions in total that own shares, with 37 new buyers in the last week.

    In terms of investment, more than 38% of the float is owned by exchange traded funds (ETFs). Another 30% is a blend of open-ended funds with 15.6% held by asset allocators, according to Bloomberg data.

    The majority (4.65%) of investment funds holding A2 Milk shares are located in the US. Australia accounts for 4.5% of institutional funds, the data shows.

    Furthermore, the number of institutions selling A2 Milk shares increased approximately 12% in June. That’s on top of a 9% decrease in the number of institutional buyers over the same timespan.

    Perhaps that might help explain why the A2 Milk share price has taken a backward step from its monthly highs, as seen below.

    TradingView Chart

    A2Milk share price snapshot

    The A2 Milk share price has been trending lower over the last 12 months, slipping around 30% into the red.

    A2 Milk shares have been heading south since falling from their all-time high of $19.83 on 3 June 2020. The share price now trades in line with its July 2017 levels.

    The post What percentage of A2 Milk shares are owned by institutions? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in A2 Milk Company Ltd right now?

    Before you consider A2 Milk Company Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and A2 Milk Company Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    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 recommended A2 Milk. 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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  • Suncorp share price lifts on demerger plans

    AMP share price demergerThree zigsaw pieces pulled apart to symbolise a demergerAMP share price demergerThree zigsaw pieces pulled apart to symbolise a demerger

    The Suncorp Group Ltd (ASX: SUN) share price has started the day well, now trading up 3% at $11.20.

    Investors are bidding up the Suncorp share price amid reports the company is pushing to spin out its banking unit to focus on its insurance arm.

    In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also jumped from the gate on Wednesday and trades 2% higher.

    Suncorp to push for demerger

    Growing evidence suggests that Suncorp is making a push to spin off or sell its banking division.

    The bank’s board and management have been weighing up options to split Suncorp’s “bancassurer” model, The Australian Financial Review reports.

    The move would allow it to focus on its more profitable insurance segment, reports say.

    “A demerger could see Suncorp retain and focus on its insurance arm, which is now Australia’s second-biggest offerer of [general insurance products], behind IAG,” The AFR wrote.

    Chief to the debate is Suncorp’s share price, reports say. Deliberations are focused on creating more value via a demerger, if that were the case.

    Suncorp released a short statement today in response to the “media speculation”.

    It said that “[a]s previously advised, Suncorp, from time to time, reviews its strategic alternatives in relation to all of its businesses and is currently doing so in respect of its banking operations.”

    Nevertheless, the market certainly isn’t reacting in a negative way during early trade on Monday, leading us to believe investors could be pricing in the non-sensitive news.

    The market now values Suncorp on a fully-diluted market cap of $13.64 billion, according to ASX data. That’s down from more than $15 billion on 27 May.

    In the last 12 months, the Suncorp share price has held a 1.3% gain. That’s despite trading more than 7% down this past month.

    The post Suncorp share price lifts on demerger plans appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Suncorp Group Limited right now?

    Before you consider Suncorp Group Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Suncorp Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
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    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.

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  • Why these fundies say the Allkem share price is ‘absolutely a buy’

    A miner in a hardhat makes a sale on his tablet in the field.A miner in a hardhat makes a sale on his tablet in the field.

    The Allkem Ltd (ASX: AKE) share price is staging a recovery in early trading on Monday, after plummeting this past month. The bounce comes amid some analysts tipping better days ahead for the global lithium company.

    Allkem shares have shed 22% since market close on 27 May and are currently trading at $10.61. That’s 5.15% higher than Friday’s close.

    For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen around 11% over the last month.

    So could this lithium explorer’s fortune turn around?

    What’s the outlook for the Allkem share price?

    Allkem is a lithium producer with projects in Argentina, Western Australia, Japan, and Canada. Lithium is an essential component in electric vehicle (EV) batteries.

    Multiple experts are tipping the Allkem share price to rise in the future. Ausbil portfolio manager Luke Smith told Livewire he believes the share is “a buy”.

    Smith said he disagrees with the negative view around lithium lately. By way of background, in early June, Goldman Sachs declared the “battery metals bull market as over for now” and predicted a sharp correction in lithium prices.

    However, Smith has a different view. He said:

    We’ve seen pricing strength, and demand backdrop is extremely strong and strengthening. Allkem, three growth assets, puts it on par with the majors. It’s a buy from us.

    Allkem aims to boost lithium production three-fold by 2026. The company also aims for a 10% share of the global lithium market in the next decade.

    Tom Richardson from Paradice Investment Management also believes the Allkem share price is a “buy absolutely”. He told Livewire:

    I wouldn’t say it’s hot. I would even say that the sector’s been very cold. In fact, it’s the new sector that people love to hate. But it’s absolutely a buy. China is still the biggest buyer in the market, and it looks as though their battery production actually is inflecting up.

    Morgans has recently placed a $16.83 price target on Allkem shares with an add rating, as my Foolish colleague James reported. This is a 66.8% upside on the current share price.

    Morgans analysts said:

    We maintain our add rating given the strong growth outlook for the company. Allkem’s diverse products and geographical mix adds opportunities to capture value as the market evolves.

    Share price snapshot

    The Allkem share price has exploded 65% in the past 12 months but remains roughly even year to date.

    In comparison, the S&P/ASX 200 Materials Index has lost around 9% in the past year and nearly 7% year to date.

    Allkem has a market capitalisation of about $6.7 billion based on its current share price.

    The post Why these fundies say the Allkem share price is ‘absolutely a buy’ appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

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    Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • Link share price pushes higher despite revised takeover offer

    Business meeting

    Business meeting

    The Link Administration Holdings Ltd (ASX: LNK) share price is pushing higher on Monday morning.

    At the time of writing, the administration services company’s shares are up 1.5% to $3.75.

    What’s going on with the Link share price?

    This morning Link provided the market with an update on the Dye & Durham takeover approach. This follows an update earlier this month that revealed that the ACCC had concerns over the approach due largely to Link’s ownership in PEXA Group Ltd (ASX: PXA).

    According to the release, Link has received a letter from Dye & Durham stating that it is considering providing an undertaking to the ACCC in order to obtain approval.

    However, in light of this and the current state of the financial markets, Dye & Durham is reducing its takeover offer by approximately 22% from $5.50 per share to $4.30 per share.

    Other than a reduction in the offer price, Dye & Durham is not making any further amendments or alterations to the proposal. This means that if the suitor reaches an agreement to sell its BCM business, shareholders will be entitled to receive any net consideration received up to 12 months after the implementation of the scheme and up to 13 cents per Link share.

    What now?

    The Link board has advised that it will consider Dye & Durham’s request. This will include obtaining advice from its financial, legal and tax advisers.

    After which, it will provide shareholders with an update in the coming days. This includes any updates to the scheme timetable previously announced and the timing of the scheme meeting, which is currently scheduled for 13 July.

    All in all, this takeover may not be dead. Though, longer term shareholders may not be too impressed with the reduction in value. So, the shareholder vote, if it happens, will be an interesting one.

    The post Link share price pushes higher despite revised takeover offer appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Link Administration Holdings Ltd right now?

    Before you consider Link Administration Holdings Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Link Administration Holdings Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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    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 Link Administration Holdings 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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