Tag: Motley Fool

The Carsales.com Ltd (ASX: CAR) share price has been put in the freezer as the company prepares to announce news of a capital raise.

The Carsales share price is halted at its previous closing price of $20.76.

Let’s look at what’s going on with the Australian online automotive, motorcycle, and marine classifieds business’ stock on Monday.

Why is the Carsales share price in the freezer?

Carsales’ stock has been halted today as the company prepares to announce news of a pro-rata accelerated non-renounceable entitlement offer.

The stock is expected to return to trade when the company announces the completion of the offer’s institutional component.

If such news doesn’t break in the coming days, Carsales’ shares are expected to resume trading as normal on Wednesday morning.  

The last time the market heard price-sensitive news from the company was way back in February. Then, it released its earnings for the first half of financial year 2022.

The company held around $91 million in cash and equivalents at the end of December. It also had $643 million in borrowings.

The last time the company underwent a capital raise was in mid-2021.

Then, it raised around $600 million to partially fund the acquisition of a 49% interest in Trader Interactive. The offer – which saw new shares handed out for $17 apiece – received strong support. It boasted a take-up of around 83% by eligible institutional shareholders.

The Carsales share price has slipped nearly 19% since the start of 2022. Though, it’s still 6% higher than it was this time last year.

The post Why is the Carsales share price frozen on Monday? 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 shares to buy to win the rest of 2022: expert
• These were the best performing ASX 200 shares last week
• How to turn $20,000 into $180,000 in 10 years with ASX shares

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 recommended carsales.com 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/BQL6x7g

Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share despite its short interest falling meaningfully week on week to 15.2%. There are concerns that rising living costs could impact consumer spending on leisure travel and stifle the recovery.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest drop to 12.6%. Short sellers won’t have been happy to see this betting technology company’s shares jump last week after announcing a share buyback.
• Nanosonics Ltd (ASX: NAN) has short interest of 12%, which is down slightly week on week. Short sellers have been going after this medical device company due to concerns over changes to its sales model in the United States.
• EML Payments Ltd (ASX: EML) has short interest of 10.1%, which is up meaningfully week on week. Short sellers have been loading up on this payments company’s shares since the release of a surprisingly poor trading update.
• Block Inc (ASX: SQ2) has short interest of 9.8%, which is up week on week once again. This mirrors the short interest of the company’s shares on Wall Street.
• Regis Resources Limited (ASX: RRL) has short interest of 8.9%, which is down slightly week on week. This short interest appears to have been driven by concerns over labour shortages, cost pressures, and lower grades.
• PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.8%. This medical device company’s shares are down materially over the last 12 months following a disappointing operating performance.
• Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down week on week. There are concerns that this poultry company’s profits could be squeezed by higher input costs.
• PointsBet Holdings Ltd (ASX: PBH) has entered the top ten with short interest of 8.4%. Short sellers may be regretting this one after the sports betting company’s shares rocketed last week following a strategic investment.
• Webjet Limited (ASX: WEB) has sneaked back into the top ten with short interest of 8.1%. Fears that cost of living pressures could delay the travel market recovery are weighing on sentiment.

The post These are the 10 most shorted ASX shares 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

• 2 ASX travel shares buy-rated by experts that could take off
• 9 ASX 200 shares now trading at ‘significant discounts’: broker
• Down 18% in a week, what’s stolen the shine from the Regis Resources share price?
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares going gangbusters 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 positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., EML Payments, Nanosonics Limited, POLYNOVO FPO, and Pointsbet Holdings Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, Pointsbet Holdings Ltd, and Webjet 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/vZwmeOd

Leading ASX lithium stocks have easily outpaced the benchmark returns for longer-term shareholders.

Here’s what we mean.

If you’d bought shares in Allkem Ltd (ASX: AKE) in June 2017, you’d be sitting on a gain of 192%. Over that same five years, the IGO Ltd (ASX: IGO) share price is up 222%, while ASX lithium stock Mineral Resources Ltd (ASX: MIN) has soared 344%.

For some context, the All Ordinaries Index (ASX: XAO) is up 17% in five years.

A turbulent month

More recently, though, ASX lithium shares’ strong gains have reversed. This comes as investors mull reports that an abundance of investment in exploration and production facilities could see the lithium price slide in the medium term.

Those concerns have seen the Allkem share price tumble 28% over the past month. Over the same period, the Mineral Resources share price fell 21% while IGO lost 17%.

The All Ordinaries is down 8% over the month.

But the recent pullback in ASX lithium stocks hasn’t dissuaded the portfolio manager of the Quest Long Short Australian Equities Fund, Richard Dixon.

All 3 ASX lithium stocks are generating significant cash flows

Addressing the three ASX lithium stocks we looked at above, Dixon said (as quoted by The Australian Financial Review):

We have held Allkem for many years and also hold IGO and Mineral Resources. All three are in production and are generating significant cash flows as spot prices have surged due to strong EV (electric vehicle) demand.

Allkem is the only lithium pure play of the trio, but it is a diversified producer with major expansion plans that can be easily funded from existing cash flow.

Dixon is more cautious when it comes to earlier-stage ASX lithium stocks. He said:

We are avoiding lithium developers at this stage of the cycle. The recent correction has re-established value as the producers are only pricing in less than a third of current spot prices for the next few years, despite the positive supply-demand outlook.

The post 3 ASX lithium stocks this fund manager is holding despite sector pullback 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

• Guess which ASX 200 mining shares these experts are backing
• Why are ASX 200 mining shares having such a dire week?
• Here’s why analysts rate these ASX 200 mining shares as buys
• Could ASX lithium shares be set for a boost?
• Why did the Mineral Resources share price tumble on Thursday?

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.

from The Motley Fool Australia https://ift.tt/nPM3Isf

Final approval for the huge solar power project Sun Cable is getting closer after passing its latest hurdle.

Infrastructure Australia has called the Sun Cable project “investment-ready”, according to the Australian Financial Review.

For readers wondering what Sun Cable is, it claims to be developing the world’s largest solar energy infrastructure network, making it possible to power whole cities with renewable energy.

The company explains its Australia-Asia Power Link will harness and store solar energy from one of the most reliably sunny places on the planet, the Northern Territory of Australia. It will be available for ‘24/7’ transmission to Darwin and Singapore via a high voltage direct current (HVDC) transmission system. This project comes with planned battery storage. It will be capable of supplying up to 15% of Singapore’s total electricity needs.

The plan to supply Darwin and Singapore involves a 5,000 km transmission system. As such, it’s a massive undertaking.

Latest tick of approval for Sun Cable

According to the AFR, the $35 billion Sun Cable project has been deemed “investment-ready” by Infrastructure Australia. This move means that it can now potentially receive funding from government agencies, such as Northern Australia Infrastructure Facility and Clean Energy Finance Corporation and, potentially, Export Finance Australia.

Sun Cable managing director David Griffin said (as quoted by AFR):

Now that we have passed this milestone with IA we’re at the start of a process to ramp up our financing efforts, for equity and debt for the project. We will be needing support from a wide range of lending entities and we will look to all those opportunities.

Griffin thinks there is “strong industrial demand” for power in Darwin, as well as in Singapore. It could cut the cost of electricity in Darwin by around 12%.

It was reported the export revenue of this project could amount to $2 billion a year, starting in 2028. That’s reportedly around the same size as Australia’s dairy industry.

When will this start? Construction could start in 2024, allowing electricity to be supplied to Darwin in 2027 with the plan for full operations by 2029.

Once complete, it could replace Singapore’s imported gas and help the country reduce its reliance on fuel.

How does this relate to ASX shares?

Sun Cable is not an ASX share. Though, in theory, there’s a small chance in the future that it could become an ASX company. However, it certainly puts the spotlight on ASX renewable shares, illustrating how large projects have the ability to decarbonise the region.

There are a number of ASX shares that are involved with renewable energy such as Meridian Energy Ltd (ASX: MEZ), Mercury NZ Ltd (ASX: MCY), Infratil Ltd (ASX: IFT), and Genesis Energy Ltd (ASX: GNE).

There are also other names such as Fortescue Metals Group Limited (ASX: FMG) that are getting involved with green energy efforts. Fortescue’s Andrew Forrest is one of the individuals reportedly involved with the Sun Cable project.

The post Sun Cable moves another step closer to its day in the sun 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

• Women investors often outperform men, and here’s the simple reason why
• ‘Potential to become a world-class deposit’: Sayona share price jumps 16% following new lithium discoveries
• How is the Vulcan share price performing against its sector this month?
• Does today’s Dicker Data share price make it a good dividend buy?
• Metcash share price storms 8% higher on FY 2022 earnings beat

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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/vpB0PLQ

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.

For the last several decades, a curious statistic has kept popping up in various studies all over the world. It seems women tend to generate a consistently higher rate of return than men when it comes to investing.

This was first reported by a research team from the University of California at Berkeley. The research found that, out of 35,000 brokerage accounts observed over six years, the female investors outperformed the males by over a percentage point.

As if a sample population of that size wasn’t enough, several other research projects have reported similar findings, most recently Fidelity. It found that out of a group of 5 million Fidelity customers, women outperformed men by nearly half a percentage point over a 10-year period.

Those percentages might not sound like a substantial outperformance, but over decades, the result can be tens of thousands of extra dollars in your account.

The reason behind the outperformance

Vanguard’s 2022 How America Saves report sheds light on the disparity by explaining that women tend to trade 50% less than men. In other words, men are moving in and out of positions at a 50% higher rate than women.

That might not be the only reason behind the disparity in returns. But the fact that men are trading stocks at a much higher rate has to be one of the main drivers.

Why overtrading hurts your portfolio

Investing is a unique discipline in that the more you “do things,” the worse your performance tends to be.

The late founder of the Vanguard Group, Jack Bogle, talked about the harm trading does to returns in his book The Clash of the Cultures: Investment vs. Speculation, where he attributes it to mutual fund underperformance: “In the mutual fund industry, for example, the annual rate of portfolio turnover for the average actively managed equity fund runs to almost 100%, ranging from a hardly minimal 25% for the lowest turnover quintile to an astonishing 230% for the highest quintile.”

100% portfolio turnover means the portfolio looks entirely different from one year to the next. If the goal is to own great businesses for long periods of time, it’s no wonder mutual funds have underperformed with astronomically high turnover rates.

Trading deactivates your greatest advantage

The biggest reason to trade minimally is because the more you trade, the less compounding your portfolio will experience. Compound interest works in favor of patient investors because it starts slowly but snowballs over long periods of time.

Even the greatest investor of our time, Warren Buffett, earned 99% of his wealth after his 50th birthday, which demonstrates how incredibly powerful compound interest is if you’re patient enough to experience it.

Unfortunately, many investors are more interested in chasing the next sector or stock they think will blow up in the near term than in holding high-quality companies for the long term.

Bogle took this to heart as he pioneered low-loss, low-turnover index funds and frequently made statements like this: “Every piece of data that’s ever been produced says that trading is the investor’s enemy. The more you trade, the less you make.”

Conclusion: Invest like a woman

I’m sure there are deeper psychological or behavioral conclusions we could draw from the gender disparity in investment returns, but for us Fools, the message that is screaming at us is to think long and hard before tinkering with our portfolios.

If there is an inversely proportional relationship between trading and portfolio performance, then we should all strive to invest more like women do. And unlike many things in life, fortunately that means doing significantly less instead of more. 

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

The post Women investors often outperform men, and here’s the simple reason why 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

• Sun Cable moves another step closer to its day in the sun
• ‘Potential to become a world-class deposit’: Sayona share price jumps 16% following new lithium discoveries
• How is the Vulcan share price performing against its sector this month?
• Does today’s Dicker Data share price make it a good dividend buy?
• Metcash share price storms 8% higher on FY 2022 earnings beat

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

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

from The Motley Fool Australia https://ift.tt/LRE1ASg

The Sayona Mining Ltd (ASX: SYA) share price is charging higher on Monday morning.

At the time of writing, the lithium developer’s shares are up a sizeable 16% to 14.5 cents.

Why is the Sayona share price surging higher?

Investors have been bidding the Sayona share price higher this morning following the release of an update on the company’s Moblan Lithium Project in Canada. This follows recent drilling activities at the Quebec based project.

According to the release, multiple new spodumene pegmatites have been identified at the Moblan Lithium Project that provide the means to significantly increase the company’s North American resource base.

Sayona notes that this includes an exciting new and distinct Moblan South Discovery open in all directions located 200m south of the main Moblan deposit.

Furthermore, the drilling has shown that spodumene pegmatites are more significantly developed at depth than can be recognised at surface. Management appears to believe that this indicates the potential for the discovery of multiple pegmatite clusters.

Drilling is continuing with a 20,000m drilling campaign underway as Sayona continues to build on the potential of the new Northern Lithium Hub, which it feels will strengthen its lithium spodumene resource base in North America.

‘Potential to become a world‐class deposit’

Sayona’s Managing Director, Brett Lynch, was pleased with the drilling results. He said:

These latest results are another boost to our emerging northern lithium hub, demonstrating Moblan’s potential to become a world‐class deposit in a proven lithium region.

Moblan adds to our Abitibi lithium hub to the south in giving Sayona a leading lithium resource base in North America, amid continued increases in demand for this key battery metal from the North American EV and battery sector.

The post ‘Potential to become a world-class deposit’: Sayona share price jumps 16% following new lithium discoveries 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

• Sayona share price dives 8% despite lithium news
• Considering investing in Sayona shares? Here’s the latest news from the company
• Is this why ASX lithium shares are being crushed today?
• The Sayona Mining share price has crashed 50% in a month. What’s going on?
• Which ASX lithium shares are producing and which are not?

from The Motley Fool Australia https://ift.tt/GWrw1Us

The Vulcan Energy Resources Ltd (ASX: VUL) share price has been on a rollercoaster ride in June.

Several macroenvironmental factors such as extreme inflationary movements, aggressive rate hikes, and overall bearish sentiment have impacted global markets.

Nonetheless, the clean lithium developer’s shares finished 26.8% higher to $6.34 at Friday’s closing bell.

The relatively large share price gain came off the back of some heavy losses in the weeks prior.

Below we take a look at the company’s recent performance and compare it to its sector this month.

What’s dragging down Vulcan Energy shares in June?

Investors offloaded the Vulcan Energy share price after Goldman Sachs released a shock analysis of the battery metals market.

The broker forecasted that lithium prices will sink to US$16,000 per tonne sometime in the next year.

Currently, lithium carbonate is fetching around US$71,000 per tonne.

Furthermore, economists from major banks predict that a recession in the United States will happen in early 2023.

This is due to the Federal Reserve’s intention to quickly ramp up interest rates to cool down inflation.

On 10 June, the United States released its consumer price index report. The report indicates that inflation rose 8.6% in May. This is above the 8.3% forecast and is at its highest level in 41 years.

When the central bank tightens up its monetary policy, investors historically jump ship to better risk and reward alternatives.

How does the Vulcan Energy share price compare with its sector in June?

Since the beginning of the month, the Vulcan Energy share price has tumbled 22%.

Notably, the company’s shares hit a 52-week low of $4.76 last Thursday before rebounding sharply the following day.

In contrast, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) fell 0.16% to 5,233.5 points on Friday. This represents a decline of almost 14% in June so far.

Shares in Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) are also down 24% and 31%, respectively.

Based on today’s price, Vulcan Energy commands a market capitalisation of roughly $834.63 billion.

The post How is the Vulcan share price performing against its sector this month? 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

• 3 ASX All Ordinaries shares going gangbusters on Friday
• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Vulcan share price rockets 25% on Stellantis deal
• Vulcan share price on watch amid landmark $76 million automaker investment

Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals Limited. 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/OG8tUEa

The Dicker Data Ltd (ASX: DDR) share price has been hurt in 2022. It’s down by more than 20% since the beginning of the year.

For readers who haven’t heard of the business, it describes itself as a technology hardware, software, cloud, cybersecurity, access, and surveillance distributor. It sells exclusively to its partner base of 8,200 resellers across Australia and New Zealand.

After the recent decline of the Dicker Data share price, could it actually be an effective pick for dividend income?

A company isn’t necessarily a good income idea just because it pays a dividend. So, let’s look at some of the most recent updates and thoughts regarding the business.

Recent growth

In May, the business gave an update about its 2022 first-quarter numbers.

It said that in the three months to March 2022, its total revenue was $673.6 million, which was up by 50.5% year on year. It also disclosed that profit before tax went up by 22.7% to $23.8 million. Growth can have a material impact on the Dicker Data share price.

Management said that the increase in revenue was partly attributed to a full quarter contribution from the company’s Exceed acquisition, with the rest due to organic growth.

Dicker Data said there has been increased demand for virtual capabilities and accelerated digital transformation across Australia and New Zealand. However, supply chain disruptions have continued and, together with the introduction of its retail business in New Zealand, the gross profit margin finished the quarter lower at 8.6%. However, the full-year margin is expected to be around 9%.

The company is planning for more growth. It’s already in the advanced planning stages for the expansion of its warehouse in Kurnell, Sydney which will support expected growth in the coming years.

Dicker Data has been adding to its count of reseller partners who purchase online. It also said that it’s expecting a “high level of growth” in the adoption of automation, machine learning, and data capture and analysis tools as “businesses and governments prioritise efficiency and productivity within their operations”.

Dicker Data dividend

The company’s current dividend policy is to pay out quarterly. The size of the dividend is 100% of after-tax profit.

Leadership has proposed to increase the full-year dividend by 44% to 54 cents per share.

At the current Dicker Data share price, that equates to a grossed-up dividend yield of 6.8%.

Is the Dicker Data share price a buy?

The broker Morgan Stanley thinks it is, with an ‘overweight’ rating and a price target of $16. That implies a potential upside of around 41%.

The post Does today’s Dicker Data share price make it a good dividend buy? 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

• Here’s why brokers rate these ASX growth shares as buys
• The Dicker Data share price is trading at YTD lows. Here’s why
• Buying the dip: 3 ASX All Ord shares insiders are loading up on
• The Dicker Data dividend is being paid today. Here’s what you need to know

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 Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/YholF57

The Metcash Limited (ASX: MTS) share price is on the charge on Monday following the release of the company’s full-year results.

At the time of writing, the wholesale distributor’s shares are up 8% to $4.47.

Metcash share price rises on earnings beat

• FY 2022 group revenue (inc. charge throughs) up 6.4% to $17.4 billion
• Group revenue (ex. charge throughs) up 5.9% to $15.2 billion
• Underlying earnings before interest and tax up 17.7% to $472.3 million
• Underlying net profit after tax up 18.6% to $299.6 million
• Final dividend of 11 cents per share

What happened during the 12 months?

For the 12 months ended 30 April, Metcash delivered a 6.4% increase in top line revenue to $17.4 billion and an impressive 18.6% jump in underlying net profit after tax to $299.6 million.

The latter compares favourably the market consensus estimate to $279 million, which may explain why the Metcash share price is charging higher today.

Management advised that its “outstanding results” represent its proactive response to the significant challenges associated with COVID-19 and the continued execution of its MFuture strategy. The latter is improving the competitiveness of its independent retail networks.

In addition, the Total Tools acquisition in the Hardware pillar had its first full year under Metcash ownership and boosted its earnings growth. This led to the Hardware pillar reporting a 40.7% increase in earnings, which was complemented by a 4.1% lift in Food earnings and a 9.8% jump in Liquor earnings.

Sales update

Also boosting the Metcash share price has been news that FY 2023 has started strongly. During the first seven weeks of FY 2023, Metcash has achieved group sales growth of 8.6%.

This reflects a 5% increase in Food sales, a 19.8% jump in Hardware sales, and an 8.6% lift in Liquor sales.

In respect to food, management advised that supermarkets sales have been strong due to a continuation of the increased momentum experienced in the fourth quarter and higher wholesale price inflation.

As for Hardware, strong demand and global supply chain challenges are continuing to place pressure on the availability of some product categories. However, there continues to be a solid pipeline of residential construction and renovations activity.

Finally, the Liquor business continues to benefit from strong demand across retail stores and a recovery in on-premise sales.

The post Metcash share price storms 8% higher on FY 2022 earnings beat 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

• 5 things to watch on the ASX 200 on Monday
• Why are these ASX 200 retail shares lagging the market today?
• 2 ASX dividend shares I’d buy for the long term

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/pCmsvdV

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.

The electric vehicle (EV) market has been stumbling as investors shift much of their attention away from growth stocks and look for safer places to put their money.

But avoiding the EV market entirely could be a huge mistake, and ignoring Tesla‘s (NASDAQ: TSLA) lead in the space could be an especially bad decision. Here’s why Tesla’s stock is a buy right now.

Vehicle production and deliveries hit the gas

While younger EV companies are still trying to figure out how to increase their production, Tesla’s production levels are likely causing envy among its smaller competitors.

For example, Tesla produced 305,407 vehicles in the most recent quarter, an increase of 69% from the year-ago quarter. The EV maker is also quickly getting those vehicles into the hands of customers, with deliveries reaching 310,048 in the quarter, up 68% year over year.

Those figures represent record vehicle deliveries and production for the company, and they came at a time when some production was stifled in China because of COVID-19-related lockdowns.

By comparison, Rivian says it will only be able to produce 25,000 electric vehicles this year (down from its previous estimate of 50,000) because of supply chain issues.  And Lucid Group also cut its 2022 production goal from a previous estimate of 20,000 vehicles down to about 13,000 for the same reason.

Some legacy automakers are also finding the transition to making EVs harder than they anticipated as well. Toyota recently recalled its first mass-produced electric vehicles — 2,700 total — less than two months after they launched.

The point here is that while competition is certainly increasing, Tesla has shown that compared to some of its competitors it’s doing a better job with EV production.

Automotive revenue and profit are climbing fast

Tesla’s automotive revenue increased at a rapid pace, reaching $16.9 billion in the first quarter — an 87% year-over-year increase. The increase was due to the company’s stellar vehicle production and delivery growth.

In addition to its sales jump, the company is earning more profit from its vehicles. Automotive gross profit spiked 132% in the first quarter to $5.5 billion.

The result was a record non-GAAP net income for the EV company, surpassing $1 billion for the first time ever in a quarter.

Vehicle production could be even better this year

It would be one thing if Tesla’s stellar quarter was a one-off, but it isn’t. The company believes it has a “reasonable shot” at increasing vehicle production another 60% this year, compared to 2021.

Part of that optimism comes from the fact that the company’s factory in Shanghai is “coming back with a vengeance,” according to Tesla CEO Elon Musk, after COVID-19-related shutdowns curbed production last year.

Additionally, Tesla’s newest factories, in Germany and Texas, only just came online in March and April. Tesla is still overcoming some production hurdles from the two plants, with Musk saying recently that the factories are “losing billions of dollars” right now, due to supply chain issues. But both are expected to significantly increase their production output this year and Tesla hasn’t changed its previous statement of aiming for 60% higher vehicle production this year — which would equal about 1.5 million vehicles.

An EV leader that’s only getting stronger

Like many other stocks during the pandemic, Tesla’s share price surged, only to cool down during a broader market sell-off. The result is an EV leader whose share price is down 38% year to date.

Some of that share price drop comes from Tesla investors worrying that Musk is getting sidetracked by his purchase of Twitter. And while that’s certainly something for Tesla investors to keep an eye on, it doesn’t change the fact that Tesla’s vehicle production is increasing quickly, and revenue and profit are both climbing.

Sure, there could be more share price volatility in the short term. But with Tesla’s early moves in the EV industry already paying off and the company far ahead of younger EV start-ups, its stock could continue to be a great long-term play in the EV space, particularly at today’s bargain price.

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

The post Should You Buy Tesla Stock Right Now? 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

• Here’s what moved Tesla shares today
• Why Tesla shares popped then dropped today
• Why Tesla stock soared today
• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away

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

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

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