Tag: Motley Fool

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 6,528.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to open the day in the red.  According to the latest SPI futures, the ASX 200 is expected to open 10 points or 0.15% lower this morning. Though, it is worth noting that futures contracts may not yet have captured a late rally in the US, which saw the Dow Jones rise 0.65%, the S&P 500 climb 0.95%, and the Nasdaq jump 1.6%.

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WPL) could have a poor finish to the week after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 1.85% to US$104.22 a barrel and the Brent crude oil price is down 1.6% to US$109.93 a barrel. Fears that rising interest rates could hurt demand are being blamed for these declines.

TPG rated neutral

The TPG Telecom Ltd (ASX: TPG) share price could be close to being fully valued according to analysts at Goldman Sachs. In response to the telco’s investor day, the broker has retained its neutral rating with a $6.20 price target. Goldman notes that there is a “significant mobile opportunity in a rational market [but] higher interest drives EPS downgrades.”

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a tough finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.6% to US$1,826.4 an ounce. Comments out of the US Fed relating to taming inflation weighed on the safe haven asset.

Westpac dividend being paid

Today is payday for Westpac Banking Corp (ASX: WBC) shareholders. This morning Australia’s oldest bank will be rewarding its shareholders with a fully franked 61 cents per share interim dividend. This is the equivalent of a 3% yield at current prices.

The post 5 things to watch on the ASX 200 on Friday 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

• ‘Just didn’t cut it’: Look out Telstra, a new high-speed start-up is coming for you!
• What’s going on with the Beach Energy share price on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here’s why this ASX 200 gold share is tumbling 15% to a 7-year low
• Can Macquarie shares deliver an attractive dividend yield AND 30% upside in 2022?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 TPG Telecom Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Are you looking for some dividend options for your portfolio? If you are, take a look at the two ASX 200 dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this supermarket giant.

Thanks to its defensive qualities and strong market position (800+ supermarkets, 900+ liquor retail stores, and 700+ Coles express stores), it has been tipped to continue growing its sales, profits, and dividends in the coming years. This will be supported by the construction of its smart distribution centres, which are aiming to make its operations more efficient and cut costs.

Citi is bullish on Coles and has a buy rating and $19.30 price target on its shares.

In respect to dividends, Citi is forecasting fully franked dividends per share of 63 cents in FY 2022 and 72 cents in FY 2023. Based on the current Coles share price of $17.62, this will mean yields of 3.6% and 4.1%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that could be in the buy zone is mining giant South32.

Thanks to strong demand for commodities such as aluminium and other green metals, South32 has been tipped to generate strong free cash flow and pay big dividends in the coming years.

Goldman Sachs is particularly bullish. It expects South32 to pay fully franked dividends per share of 26.7 US cents in FY 2022 and 51.6 US cents in FY 2023. Based on the current South32 share price of $4.05 and the latest exchange rates, this will mean very attractive yields of ~9% and ~17%.

Goldman has a conviction buy rating and $5.90 price target on the miner’s shares.

The post Here are 2 ASX 200 dividend shares to buy according to analysts 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

• Which ASX 200 shares could benefit from falling consumer confidence?
• Down 40% Tuesday, up 21% today, what’s going on with this ASX coal share?
• How big will the South32 dividend be in 2023?
• How to start investing in stocks: This ASX 200 share is where I’d begin
• Here are 2 ASX dividend shares experts say are buys

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 positions in and has recommended COLESGROUP DEF SET. 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/G9JzvMd

If your portfolio is lacking mining exposure and you want to change that, then the two ASX 200 mining shares listed below could be worthy candidates.

Here’s why these mining shares are rated highly by analysts:

Allkem Ltd (ASX: AKE)

The first ASX 200 mining share to look at is Allkem. It is a top five global lithium miner with a collection of world class operations including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Unlike the many explorers and developers on the Australian share market, Allkem has been producing lithium for some time. For example, during the fourth quarter it expects to ship 3,500 tonnes of lithium carbonate and 38,000 dry metric tonnes of spodumene at over US$40,000 per tonne and US$5,000 per tonne, respectively.

Morgans is bullish on Allkem. This is due to the broker’s positive outlook on lithium prices and Allkem’s bold production growth plans.

We maintain our ADD rating given the strong growth outlook for the company. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.

The broker currently has an add rating and $16.38 price target on its shares.

Iluka Resources Limited (ASX: ILU)

Another ASX 200 mining share that could be in the buy zone is Iluka. It is a mineral sands and rare earths producer with a number of operations across South Australia, Western Australia, and Sierra Leone.

Analysts at Goldman Sachs are very positive on the company. This is due to its attractive valuation, the favourable outlook for mineral sands, and its exposure to rare earths.

Goldman commented:

We are Buy rated on mineral sands/rare earth producer ILU (on CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential.

We think ILU is undervalued (on c. 6x EBITDA NTM) vs. key rare earth (c. 15x) and mineral sands/pigment (c. 6x) industry peers. Positive on project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths, and a >50% increase in EBITDA over the next 5 yrs to 2026 The Zircon and TiO2 feedstock markets entered a 3-yr supply side driven deficit in 2021, and we see ongoing upside risk to prices in 2022

The broker currently has a conviction buy rating and $13.80 price target on Iluka’s shares.

The post Here’s why analysts rate these ASX 200 mining shares as buys 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

• Could ASX lithium shares be set for a boost?
• Iluka share price lifts off on rare earths refinery progress
• Why has the Allkem share price tumbled 30% from its May all-time high?
• Leading brokers name 3 ASX shares to buy today
• Top broker names 4 ASX lithium stocks to buy now

Motley Fool contributor James Mickleboro has positions in Allkem 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/EqFPW3c

The Bitcoin (CRYPTO: BTC) price is up 2% since this time yesterday. At the time of writing, the world’s top crypto is trading for US$20,554 (AU$29,792).

In a sign the token continues to struggle, the Bitcoin price hit lows of US$19,848 over the past 24 hours. That again put it within a whisker of dropping below what many analysts believe is a key support level of US$19,500.

Bitcoin remains down about 70% from its 10 November all-time high and down 57% so far in 2022.

What’s pressuring crypto prices?

It’s not just the Bitcoin price that’s taking a beating this year.

Almost every top crypto has been sold off heavily with some, like the TerraUSD stablecoin, collapsing completely. This has seen the total global crypto market cap fall from approximately US$3 trillion in November last year to some US$1 trillion today.

The biggest factor pressuring cryptos has been hot-running inflation and the accompanying interest rate hikes needed to cool fast-rising prices down.

While tightening by the RBA and other global central banks all contribute to the impact, it’s the US Federal Reserve that’s most closely watched.

Recent outsized interest rate hikes by the US Fed have contributed to a 30% year-to-date decline in the tech-heavy NASDAQ.

The Bitcoin price moved in line with other risk assets this year, and could come under more pressure.

Fed chairman Jerome Powell said he “anticipates that ongoing rate increases will be appropriate”.

Powell added, “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store.”

Is the Bitcoin price at a bottom?

Having lost more than two-thirds of its value since November, is the Bitcoin price at a bottom?

According to Mark Newton, head of technical strategy at Fundstrat Global Advisors, the answer is yes and no. Newton said (courtesy of Bloomberg):

Bitcoin has made a bottom but probably not the bottom. Upside targets should materialise near US$23,300 with a max near US$24,800 before prices pull back to likely challenge lows into the final week of June.

Analysts at Informa Global Markets say crypto investors will need to wait out the US Fed’s aggressive tightening policy before we see the Bitcoin price reach a bottom.

“Macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy has to subside before crypto markets see a bottom,” they said.

The post The Bitcoin price is struggling. When will cryptos see a bottom? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Bitcoin, Ethereum, and Dogecoin are down today
• The ATO is collecting crypto taxes. Here are 5 handy expert tips come tax time
• These 3 cryptos are feeling the Elon Musk effect today
• What to expect from the Bitcoin price following last week’s thrashing
• Is Solana the next Bitcoin?

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 positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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/kMy7SDX

Top broker Macquarie has upgraded its forecast for lithium prices, which bodes well for ASX lithium shares.

The upgrade comes a month after fellow broker Goldman Sachs tipped a “sharp correction” in lithium prices due to an impending oversupply, which sent ASX lithium share prices tumbling.

According to reporting in The Australian, Macquarie reckons new supply from up-and-coming spodumene producers won’t reach a material volume until 2023.

So, that will support lithium prices as strong demand for the commodity continues, particularly from the burgeoning electric vehicle (EV) market.

In fact, the broker says this demand could potentially more than offset any increase in lithium supply.

Forecast for lithium price up 8% to 13%

Macquarie “now expects spodumene prices to peak at US$4,900 a tonne in the September quarter”, according to the article.

As a result, it has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne.

The article quoted Macquarie as saying the upgrade reflects the “persisting market deficit despite an accelerating supply response”.

The broker noted that spot lithium prices in China were increasing after a recent correction.

Macquarie describes the lithium market as remaining “tight”. Rebounding EV sales are supporting the price after supply chain issues caused by COVID-19 lockdowns in China resulted in a lull.

What does this mean for ASX lithium shares?

Like any ASX resources company, lithium miners are price takers. The higher the lithium price is, the more profit they make. And vice versa.

ASX lithium shares have become a very popular part of the equities market. Governments, businesses and consumers around the world are finally taking climate change seriously. This is giving momentum to pretty much any company involved in the green energy supply chain.

Time will tell whether all these young growing companies in lithium mining will end up creating an oversupply, which would likely reduce lithium prices.

Which ASX lithium shares should you buy?

As my Fool colleague James reported recently, broker Bell Potter has a buy rating on four ASX lithium shares.

Bell Potter’s lithium share picks are as follows:

• Allkem Ltd (ASX: AKE) with a share price target of $17.53 (buy)
• Green Technology Metals Ltd (ASX: GT1) with a share price target of $1.37 (speculative buy)
• Lake Resources N.L. (ASX: LKE) with a share price target of $2.83 (speculative buy)
• Liontown Resources Limited (ASX: LTR) with a share price target of $3.06 (speculative buy).

These ASX lithium shares have all fallen substantially over the past month since Goldman’s note.

• Allkem shares are down 26% over the past month to $9.64 at market close on Thursday
• Green Technology shares are down 33% to 57 cents
• Lake Resources shares are down 54% to 70 cents
• Liontown Resources shares are down 33% to 88 cents

The post Could ASX lithium shares be set for a boost? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Liontown share price slump 9% today?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking
• The Lake Resources share price has crashed 50% since joining the ASX 200 on Monday. What’s going on?
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles

Motley Fool contributor Bronwyn Allen has positions in Allkem Limited and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hpPHD4g

The Insurance Australia Group Ltd (ASX: IAG) share price outperformed the market on Thursday despite the company’s silence.

It was joined in the green by many of its S&P/ASX 200 Index (ASX: XJO) insurance peers.

As of Thursday’s close, the IAG share price is $4.40, up 2.8% on its previous close. Throughout the day, it hit a high of $4.51, representing a 5.4% surge.

For context, the ASX 200 gained 0.3% today while the All Ordinaries Index (ASX: XAO) rose 0.1%.

Let’s take a closer look at what might have gone on with the insurance giant and its peers on Thursday.

IAG share price rockets 5%

The IAG share price surged higher today despite no news from it or its direct peers.

The stock hit a near 10-year low of $4.02 last week. Thus, today’s gains might have represented some form of drawn-out rebound.

The share prices of fellow ASX 200 insurers Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE) also lifted 0.65% and 2.03% respectively today.

Additionally, IAG’s home sector – the S&P/ASX 200 Financials Index (ASX: XFJ) – gained 0.7%.

IAG was the financial sector’s third-best performer today. It was beaten by Pinnacle Investment Management Group Ltd (ASX: PNI) and Virgin Money UK CDI (ASX: VUK). They ended the day higher by 3.92% and 3.18% respectively.

Weighing on the ASX 200 financials sector was the Zip Co Ltd (ASX: ZIP) share price. It hit a new multi-year low of 44 cents today.  

Unfortunately, today’s gain wasn’t enough to bump the IAG share price back into the longer-term green.

It’s now down 1.35% year to date and has slumped nearly 13% since this time last year.

The post Why did the IAG share price surge 5% on Thursday? 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

• The ASX 200 share ready to bounce from 10-year lows: expert
• Why is the IAG share price smashing the ASX 200 today?
• 2 ‘quality defensive’ ASX shares to see out rising interest rates: Wilsons
• Why is the Suncorp share price cratering today?
• Is the IAG share price a defensive buy amid rising interest rates?

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 PINNACLE FPO and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited and PINNACLE FPO. 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/E42ZSuw

The Commonwealth Bank of Australia (ASX: CBA) share price had a mixed day on Thursday.

Although the banking giant’s shares ended the day 0.2% higher at $89.75, this means they underperformed the ASX 200 and the rest of the big four.

For example, the ASX 200 rose 0.3% and the rest of the big four gained at least 0.5%, with Australia and New Zealand Banking Group Ltd (ASX: ANZ) the highlight with a 1.1% gain.

Why did the CBA share price underperform?

The softer performance by the CBA share price could be related to a broker note out of Morgan Stanley this week.

Due to concerns over a weaker housing and mortgage market, its analysts have taken an axe to their valuation of Australia’s largest bank.

According to the note, the broker has retained its underweight rating and cut its price target from $91.00 down to $79.00. This implies potential downside of 12% for investors over the next 12 months.

Morgan Stanley notes that Australian mortgage growth has slowed meaningfully during previous quick and aggressive rate hikes by the Reserve Bank of Australia. Unfortunately, this time it suspects that things could be even worse.

“In this cycle, we believe the slowdown will be greater given household leverage is higher than in prior cycles, mortgage rates are starting from a lower base, and cash rate hikes are likely to be larger,” the broker said.

Despite this, the broker does see value in the Westpac Banking Corp (ASX: WBC) share price. It has an overweight rating and $22.30 price target on Australia’s oldest bank’s shares.

As for the rest of the big four, its analysts have equal-weight (neutral/hold) ratings on their shares.

The post Why did the CBA share price underperform the other ASX 200 banks today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Should you ‘buy the dip’ in ASX 200 bank shares?
• What’s the outlook for ASX 200 bank dividends?
• Worried about a US recession? Here’s what the ASX 200 banks are forecasting
• Why did Morgan Stanley just slash its target for the CBA share price?
• How does the Macquarie dividend stack up against the ASX big four banks?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/SYZUe9l

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 never a bad idea to follow advice from Warren Buffett. The billionaire investor has a wealth of knowledge and advice out there for people willing to listen. His annual meetings and shareholder letters offer significant insight into how best to approach investing. 

There’s one particular piece of his advice that today could prove immensely valuable to investors, one that could save you from incurring significant losses. If you’ve lost big on an investment, he says, “The most important thing to do if you find yourself in a hole is to stop digging.”

What’s the significance of this quote?

Investors who have incurred losses on a stock may consider themselves to be in a hole. The deeper the loss, the deeper the hole. And there can be a motivation to try and dig yourself out of this position by taking on more aggressive investments or averaging down.

For instance, suppose you bought shares of COVID-19 vaccine maker Moderna (NASDAQ: MRNA) last year when it was near its high of $497. If you were to buy an equal amount of shares now, at a price of around $128, that would bring your average down to $312.50. And if you were to buy twice as many shares at the current price, your average would be $251. 

There can be an incentive to load up on the stock — it will bring your average cost down. This would be the “digging” part of the equation. But in doing so, now you have invested significantly more money into an investment that has been in a free fall. Generally, Buffett isn’t opposed to buying a good stock that has fallen in value, but the problem is when it’s a risky buy (like Moderna is). In that situation, you could in effect be digging a deeper hole for yourself if the stock may not have strong prospects of recovering.

Averaging down isn’t always the best strategy

In the case of Moderna, the healthcare company faces a challenging road ahead. COVID-19 revenue beyond this year remains uncertain as global economies open back up and look to return to normal. While there will be some demand for booster shots and possibly even its COVID-19 vaccine that targets the omicron variant (should it obtain approval), there’s still a strong likelihood that Moderna’s revenue will fall in the years ahead. Although the Food and Drug Administration (FDA) granted Emergency Use Authorization (EUA) of its vaccine for children between the ages of six months and five years, fewer than one in five parents have indicated they would vaccinate their children as soon as they can.

Novavax (NASDAQ: NVAX) is another example of a stock that’s fallen heavily. Year to date, it has crashed 72%, which makes Moderna’s 50% decline look modest in comparison (the S&P 500, meanwhile, is down by 23%).

And in Novavax’s case, it doesn’t even have an approved COVID-19 vaccine for the U.S. market. Despite a recommendation from an FDA Advisory Committee, the FDA itself has not yet granted an EUA for Novavax’s vaccine.

Averaging down in these situations can prove to be dangerous. Both stocks are falling hard — and for good reason. The future of these companies is uncertain. Averaging down simply for the sole reason that a stock is down isn’t a great idea, and it could prove costly to investors.

Discretion is the better part of valor

If a stock isn’t performing well, the best option may simply be to sell your shares and look at other stocks instead. Moderna and Novavax are two examples of companies facing a tough road ahead, and there is no shortage of others. Rather than doubling down on those investments and putting more money at risk, investors may be better off buying shares of growth stocks with brighter and more certain futures. 

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

The post This Warren Buffett advice could save your portfolio in a bear market appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Liontown share price slump 9% today?
• Why did the Mineral Resources share price tumble on Thursday?
• ‘Just didn’t cut it’: Look out Telstra, a new high-speed start-up is coming for you!
• The Northern Star share price has lost 7% so far this week. What’s happening?
• Down 70% in one year: Is the Magellan share price a turnaround buy?

David Jagielski has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. 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/1nZgbxC

The Liontown Resources Limited (ASX: LTR) share price closed deep in the red on Thursday.

At the final bell, the lithium developer’s shares were down 9.28% to 88 cents apiece. That’s a big drop from when its shares were trading as high as $1.37 at the beginning of the month.

Let’s take a look at what might have impacted Liontown shares today.

Liontown loses ground amid broker price cut

While the company hasn’t made any announcements since earlier this month, one broker weighed in on the Liontown share price.

As reported by ANZ Share Investing, Macquarie slashed its price target on the company’s shares by 24% to $1.90.

The significant cut follows the bearish analysis of the battery metals market by peer investment firm, Goldman Sachs.

Nonetheless, based on the current share price, the re-adjusted broker rating implies an upside of roughly 115%.

In addition, the S&P/ASX 300 Metals and Mining (ASX: XMM) industry also finished in negative territory today, by 1.94%.

Other popular lithium companies such as Lake Resources NL (ASX: LKE) and Allkem Ltd (ASX: AKE) also saw their share prices fall today, by 16.67%, and 3.60%, respectively.

Currently, lithium carbonate per tonne is trading at US$71,400 per tonne. This reflects an increase of just 4.37% for the month compared to 430% year-on-year.

Liontown share price snapshot

Since reaching an all-time high of $2.19 in April, the Liontown share price has fallen almost 60%. Weakened sentiment across the industry is likely playing a significant hand in the drop.

When looking at year-to-date, Liontown shares are down almost 47%.

Based on today’s price, Liontown commands a market capitalisation of approximately $2.25 billion.

The post Why did the Liontown share price slump 9% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is this why ASX lithium shares are being crushed today?
• Why this top broker is tipping 200% upside for the Liontown share price
• Top broker names 4 ASX lithium stocks to buy now
• Why is the Liontown share price surging 5% today?
• Here are the 3 most traded ASX 200 shares on Tuesday

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 Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TCWY0JD

The Mineral Resources Limited (ASX: MIN) share price was out of form on Thursday.

The mining and mining services company’s shares dropped 3% to $47.22.

Why did the Mineral Resources share price drop?

Investors were selling down the Mineral Resources share price today amid concerns over the price of its two key commodities – iron ore and lithium.

In respect to the former, according to Metal Bulletin, the benchmark iron ore price continued its decline and fell a further 5.5% to US$109.40 a tonne during overnight trade.

This was driven by weakness in downstream demand in China despite the announcement of accelerated fiscal expenditure.

In addition, concerns that there could be a global recession have been weighing on base metal prices. This has led to fellow miners BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) dropping today.

As for the latter, lithium shares were sold off again on Thursday amid concerns over future prices of the battery making ingredient. This follows news out of Germany this week that it plans to scrap its ban on petrol and diesel car in 2035 in order to support its auto manufacturing sector.

If the rest of Europe follows suit, there could be fewer electric cars on the roads in 10 years than current forecasts. This would have obvious consequences for lithium demand.

So, with some analysts predicting that there will already be an oversupply of the white metal in the coming years, prices could go even lower than some fear.

Though, it is worth remembering that a lot can change between now and then.

The post Why did the Mineral Resources share price tumble on Thursday? 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

• Here are 2 ASX dividend shares that analysts rate as buys this week
• Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
• Can the Mineral Resources share price crack new, all-time highs in 2022?
• Which ASX lithium shares are producing and which are not?
• Why Macquarie still sees ‘material upside’ for ASX lithium shares

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/TkLxsIf