Tag: Motley Fool

Cryptos haven’t had the best of years so far.

Last month alone, the total market cap of the global crypto market fell 28%.

Hammered by rising interest rates, few tokens have been spared from the sharp sell-off over the past seven months.

Bitcoin (CRYPTO: BTC), the world’s original digital token and still the biggest by market cap, has lost 37% of its value this year. On Friday afternoon it was trading for US$30,108 (AU$42,372). The 2022 losses now put the Bitcoin price down 56% from its 10 November all-time high of US$68,790.

The Ethereum (CRYPTO: ETH) price has fared even worse. The world’s second-biggest token, which runs the biggest blockchain, is down 52% this calendar year. At Friday’s price of US$1,792, Ethereum has lost 63% since hitting its own record high of US$4,892 on 16 November.

Similar or even larger losses have impacted the majority of top cryptos.

Cryptos up with the easy money, down with the tightening

Commenting on the struggles facing the digital asset sector over the past seven months, Kara Murphy, CIO of Kestra Holdings, said (quoted by Bloomberg):

It feels very much to me like crypto is also subject to a lot of the monetary cycle that’s been hitting the more traditional asset classes. Looking at the rapid increase in crypto prices, it seems clear that they really benefited from easy-money policies, and now that the money is coming out of the system, that’s a good part of the reason why crypto is declining more recently.

Taking Bitcoin as our proxy for the broader crypto market, investors who bought the token prior to November 2020 will still be sitting on comfortable gains. In October 2020, Bitcoin was still trading for US$10,200.

The same can’t be said for the majority of investors who bought Bitcoin or most altcoins in January 2021 or beyond.

With losses racking up, could we be about to see a wave of selling?

Institutional investors may be the weak hand

According to digital asset broker Bequant, only 51% of anonymous Bitcoin addresses are in the green. That means almost half bought their Bitcoin at prices higher than they can sell them for today.

Now we’re unlikely to see a wave of selling from those crypto investors who bought at far cheaper prices a few years ago, said Wilfred Daye, chief executive officer of Securitize Capital.

But we may be looking at a scenario where it’s the institutional investors who could be the first to cut and run.

According to Daye (quoted by Bloomberg):

There may be capitulation because larger institutional players, guys who got in during the current cycle, they’re at risk of selling their assets and liquidating their assets. This particular cycle that started late 2020, you had a lot of institutional folks getting in at a higher price, so I think it’s more institutional capitulation.

We’re already seeing a surge in Bitcoin miners moving their holdings to public exchanges, where they could be sold.

As the Motley Fool reported on Monday, Bitcoin miners, under pressure from rising costs and falling prices, transferred US$6.3 billion in Bitcoin to exchanges in May.

Of course, this doesn’t mean a wave of institutional crypto selling is imminent. In the fast-moving world of digital assets, any number of factors could turn sentiment around.

The post Could cryptos be facing an upcoming wave of institutional selling? appeared first on The Motley Fool Australia.

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More reading

• What crypto winter? It’s always sunny with Solana
• Is Bitcoin still worth buying to diversify your ASX share portfolio?
• ‘No crazy bug’: Here’s the latest on the Ethereum merge
• How has the ASX-listed Betashares CRYP ETF been performing?
• ‘Wherever there’s smoke there’s probably crypto,’ warns Dogecoin founder

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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 S&P/ASX 200 Index (ASX: XJO) was out of form and dropped deep into the red last week. The benchmark index fell 4.2% to end the period at 6,932 points.

While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performing ASX 200 shares:

Zip Co Ltd (ASX: ZIP)

The Zip share price was the worst performer on the ASX 200 last week with a 20.3% decline. Investors were selling Zip and other buy now pay later (BNPL) shares after tech giant Apple announced the launch of its BNPL service. Apple Pay Later will allow users to split the cost of an Apple Pay purchase into four equal payments with no interest. The service works with any merchant that already supports Apple Pay and does not require a new payments terminal. This means that merchants don’t even need to offer BNPL for consumers to transact with them with this payment method.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn’t far behind and tumbled 17.8% lower during the period. There were a couple of catalysts for this weakness. The first was the release of another disappointing monthly update which revealed a further sizeable decline in funds under management. The other catalyst was news that the company has been dumped from the ASX 100 index.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form and dropped 16.5% over the five days. Investors were selling the sports betting company’s shares amid weakness in the tech sector. This led to the S&P ASX All Technology index losing 5.2% of its value last week. Loss-making tech shares like PointsBet were hardest hit.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price was a poor performer and tumbled 16.3% last week. Broad market weakness appears to have been weighing on this mineral exploration company’s shares. Not even the company’s appearance at the Resources Rising Stars Conference or some insider buying could stop its shares from falling.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

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More reading

• These were the best performing ASX 200 shares last week
• ASX 200 has its worst week in two years
• 3 ASX 200 real estate shares that hit new 52-week lows on Friday
• Why did the Lynas share price dive 8% today?
• Could these ASX 200 shares be most vulnerable to rising energy costs? Macquarie weighs in

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 Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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As we move throughout the month of June, a number of ASX shares have their ex-dividend date coming up.

An explanation for the ex-dividend date is when investors must have purchased a company’s shares. Let’s say you buy XYZ shares on or after the ex-dividend date, then the upcoming dividend will go to the seller.

Below, we take a look at the three small-cap shares that are trading ex-dividend next week.

Which ASX shares are going ex-dividend?

KMD Brands Ltd (ASX: KMD) shares will trade ex-dividend next Tuesday for the adventure retailer’s NZ$0.03 cents (A$0.027) per share fully franked dividend. This will be paid to eligible shareholders on 30 June. The KMD Brands share price closed down 3.67% at $1.05 on Friday.

Plato Income Maximiser Ltd (ASX: PL8) shares are set to trade without the rights to the investment company’s $0.0055 cent per share fully franked dividend on Wednesday. Shareholders will have to wait until 30 June for their paycheck. Plato shares closed 1.25% higher on Friday at $1.215.

Tower Ltd (ASX: TWR) shares will also trade ex-dividend next Wednesday for the New Zealand-based insurer’s NZ$0.025 cents (AS0.023) per share unfranked interim dividend. Eligible Tower shareholders can expect to be paid this dividend on 30 June. The Tower share price closed in the green on Friday, up 1.67% to 61 cents.

It is worth noting that, commonly, the share price of a company drops on the ex-dividend date by the amount of the dividend that is paid to shareholders. 

Foolish Takeaway

To qualify for any of these dividends you need to make sure you are on the share registry before the ex-dividend date. Again, this is either Tuesday or Wednesday, depending on which ASX share you buy.

It’s worth noting that if you sell on or after the ex-dividend date, you will still qualify for the dividend.

The post 3 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

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More reading

• 3 ASX tech shares that could pop when the mood turns
• Apple stock: The bull and bear cases today
• These were the best performing ASX 200 shares last week
• Brokers name 2 ASX 200 dividend shares to buy with big fully franked yields
• ASX 200 has its worst week in two years

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

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The year 2022 has been brutal on ASX technology shares.

The S&P/ASX All Technology Index (ASX: XTX) has declined by around 35% so far this year, and there is no relief in sight.

But long-term investors will already know the tide will turn sooner or later.

Shaw and Partners portfolio manager James Gerrish said that the ride will be bumpy at least for the rest of 2022.

“It’s going to [be] a volatile and unforgiving year for stocks that are not making money and trading on very high multiples of revenue that have any type of slip-up.”

So for now, his team is just sticking to ASX tech shares names that are profitable.

‘Highest risk and greatest potential reward’

But of course, with risk comes reward.

Gerrish admits that once the sentiment turns back in favour of high-growth stocks, some pre-profit tech companies may have far more upside.

“If sentiment changes in the space, that is where the highest risk and greatest potential reward will be found.”

Out of those, he named three ASX tech shares in particular that are best placed for a return to glory.

“We like Dubber Corp Ltd (ASX: DUB) and see deep value there — however, the share price has been terrible,” he said in a Market Matters Q&A.

“Life360 Inc (ASX: 360) is another worth consideration given its sharp recent declines versus its growth profile, while some value is starting to show in Megaport Ltd (ASX: MP1).”

What do these 3 ASX tech shares do?

Melbourne-headquartered Dubber develops cloud communications software. Its shares have been beaten down by 73% year-to-date.

It’s one that The Motley Fool chief investment officer Scott Phillips picked as the “strike bowler” in his “ASX XI” back in January.

“Takes three-for-none or bowls a brace of wides and goes wicketless,” he said.

“But you wouldn’t be without them, especially in test cricket over a long series.”

Dubber certainly has bowled a few down legside this year. Here’s hoping it can take a five-for soon.

Life360 shares have fared just as worse this year, dropping a painful 69% so far.

Bell Potter loves the family app maker though, setting a price target that’s more than double the ASX tech share’s current price.

“Bell Potter is positive on the company and believes it has ample cash to fund it through to cash flow breakeven,” reported The Motley Fool last week.

“The broker has a buy rating and $7.50 price target on its shares.”

Megaport, despite plunging 67% in value this year, has plenty of fans.

The virtual network provider also has a stock price target that exceeds double the current level, this time with Goldman Sachs.

“The company is tipped to expand rapidly in the future as public cloud adoption and multi-cloud usage increase,” reported The Motley Fool last week.

“Goldman sees networking-as-a-service as a key driver of the company’s growth in the future.”

The post 3 ASX tech shares that could pop when the mood turns appeared first on The Motley Fool Australia.

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More reading

• Analysts are tipping these ASX growth shares as buys
• 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• 10 ASX All Ords shares that could be stung by tax-loss selling
• Megaport share price hits multi-year low: Is this a buying opportunity?

Motley Fool contributor Tony Yoo has positions in Dubber Corporation, Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dubber Corporation, Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

The stock market is having a very lackluster 2022 so far. The S&P 500 has contracted 13% since the start of the year, and the Nasdaq Composite, which is heavy with technology stocks, which can be more speculative, has toppled 23% in the same time frame. Equities continue to battle an unfavorable economic and geopolitical environment that includes 40-year high inflation, higher interest rates, and concerns about the war between Russia and Ukraine. 

Even some of the world’s star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. The iPhone maker’s business has held up very nicely compared to other big tech companies like FAANG counterparts Netflix and Meta Platforms, yet the stock has been punished, sinking 18% year to date.

Let’s discuss Apple’s bull and bear case to help investors decide if they should add the stock to their portfolios now.

What’s looking good?

Unlike many of its technology peers, Apple’s business hasn’t seemed to suffer from the macro headwinds. In its second quarter of 2022, which ended on March 26, the company beat analysts’ estimates for both revenue and earnings. Both total sales and diluted earnings per share grew 8.6% year over year in the quarter. The tech giant’s products segment, which represented 80% of total revenue, had a very strong outing during the quarter, as each product category, excluding iPad, experienced sales growth year over year. The products segment includes iPhone, Mac, iPad, and wearables, Home, and accessories.

Apple’s services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, and other subscription businesses, expanded at a rapid clip once again in the most recent quarter. Its total sales were nearly $20 billion, equal to 17.3% growth year over year, and the segment’s gross margin expanded 254 basis points to 72.6%. Steady expansion from its products segment is a plus, but the company’s growth trajectory is highly dependent on its services category. Fortunately for Apple and its shareholders, the company’s $28.1 billion in cash and cash equivalents provides more than enough funding to develop this business further.

The latest sell-off has also soothed the tech leader’s valuation. At the start of the year, the company was trading around 30 times earnings, which is notably higher than its five-year mean price-to-earnings (P/E) multiple of 23.1. Today, however, the stock has a P/E of 24.1, which represents a much more reasonable valuation. 

What’s keeping investors away?

Boasting a market capitalization of $2.4 trillion, Apple is an enormous company, which in turn limits its ability to grow like it once did. Analysts expect the tech juggernaut’s top line to reach $394 billion in fiscal year 2022, indicating 7.7% growth year over year, and its bottom line to increase 9.4% to $6.14 per share. In 2023, Wall Street projects total revenue to climb just 5.6% to $416.2 billion and earnings per share to ascend 6.8% to $6.56. 

While the stock’s P/E has dropped to around 24, one could argue that there are more attractively priced stocks out there when considering growth rates. For instance, its fellow FAANG peer Alphabet is currently trading at 21.2 times earnings while projected to grow its bottom line by 18.7% in 2023, according to Wall Street analysts. With expectations that growth will continue to slow for Apple moving forward, it’s not unreasonable to assume that certain investors will eventually fall out of love with the stock. And provided its subpar dividend yield of only 0.60%, the company may not be able to attract dividend and value investors, either.   

I believe in the long-term picture

In today’s sagging market, Apple extends investors a valid buying opportunity. Its resilient business model, extraordinary balance sheet, and lower P/E serve as compelling reasons to buy the stock right now. Despite its slowing growth, I believe the company will continue to deliver market-beating returns in the long run. It’s time to take advantage of the stock market’s shortsightedness by accumulating shares of this tech giant today. 

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

The post Apple stock: The bull and bear cases today appeared first on The Motley Fool Australia.

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More reading

• Apple Pay Later just crushed Affirm’s dreams, but it’s a nice win for 2 fintech giants
• Representing 40% of Warren Buffett’s portfolio, here is why Apple is a great stock to own today
• Why did ASX 200 tech shares fall today?
• Is Apple an excellent dividend stock to buy?
• Why Apple escaped Tuesday’s Nasdaq meltdown

Luke Meindl has positions in Apple. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The S&P/ASX 200 Index (ASX: XJO) was well and truly out of form last week. The benchmark index had its worst week in two years, dropping 4.2% to 6,932 points.

Fortunately, not all shares dropped with the market. Here’s why these were the best performing ASX 200 shares:

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price was the best performer on the ASX 200 last week with a 13% gain. This was driven by news that IFM Global Infrastructure Fund has acquired a 15% stake in the toll road operator with a view of making a takeover proposal. Though, on Friday, the company revealed that it has denied a request from IFM for access to non-public information to help it form a takeover proposal.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price was the next best performer with a gain of 9.5% over the five days. Investors were bidding energy shares higher last week after oil prices climbed to 13-week highs. This was driven by tight supplies and strong US gasoline demand.

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price wasn’t far behind with a gain of 7.5% last week. Investors were buying this gambling company’s shares after it settled its Racing Queensland litigation for $150 million. However, that’s only part of the story. This settlement is conditional upon the commencement of legislation that will implement proposed reforms by the Queensland Government relating to the wagering taxation and racing industry funding model. These reforms will be a very big boost to Tabcorp’s business.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was on form and charged 6% higher last week. This follows the release of an above average east coast winter crop forecast by ABARES. This went down well with analysts at Macquarie. In response, the broker retained its outperform rating and $11.10 price target on GrainCorp’s shares.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

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More reading

• ASX 200 has its worst week in two years
• 3 ASX 200 real estate shares that hit new 52-week lows on Friday
• Why did the Lynas share price dive 8% today?
• Could these ASX 200 shares be most vulnerable to rising energy costs? Macquarie weighs in
• Here are the 3 most traded ASX 200 shares on Friday

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

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Looking for dividend shares to buy next week? Then have a look at the ones listed below that have been given buy ratings and tipped to pay big dividends.

Here’s what you need to know about these ASX 200 dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share for income investors to look at is mining giant BHP.

Thanks to strong commodity prices, BHP’s world class portfolio of operations across the world are collectively generating significant free cash flow. Pleasingly, the majority of this free cash flow is likely to be returned to shareholders in the form of dividends or buybacks.

Citi is a fan of BHP and has a buy rating and $50.00 price target on its shares.

Its analysts expect BHP to pay fully franked dividends per share of ~$4.76 in FY 2022 and then ~$4.42 in FY 2023. Based on the current BHP share price of $46.22, this implies yields of 10.3% and 9.6%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be a buy for income investors is Telstra.

Especially given its much-improved outlook, which has the company targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

Morgans is positive on the company and currently has an add rating and $4.56 price target on its shares. The broker believes “sector dynamics look positive and value realisation is possible.”

Its analysts continue to expect the telco to pay fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.80, this implies yields of 4.2%.

The post Brokers name 2 ASX 200 dividend shares to buy with big fully franked yields appeared first on The Motley Fool Australia.

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More reading

• Is the BHP share price really trading on an 11% dividend yield right now?
• Are Telstra shares still ASX dividend heavyweights?
• Here are the 3 most traded ASX 200 shares on Thursday
• Broker tips 2 ASX 200 dividend shares with major upside AND juicy yields
• How is the BHP share price performing so far in June?

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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has just finished the day 1.25% lower at 6,932 points.

This means the benchmark index has lost 4.2% of its value this week, which is the worst weekly performance in over two years.

In fact, the last time the ASX 200 recorded a greater weekly decline was at the height of the pandemic in April 2020.

What caused the ASX 200 to tumble?

Investors were hitting the sell button in a panic this week following the Reserve Bank of Australia’s cash rate meeting.

That meeting, and its larger than expected rate hike, has led to the market now forecasting a cash rate of 3% by the end of the year. This was unthinkable at the start of the year when rates were practically at zero.

Investors appear concerned that this could slow economic growth and even risk a recession. There are also worries that borrowers could struggle with repayments if rates rise in line with the market’s expectations.

Unsurprisingly, because of the latter, the banks were among the worst performers on the ASX 200 index this week.

For example, the Westpac Banking Corp (ASX: WBC) share price sank 13.1% and the Commonwealth Bank of Australia (ASX: CBA) share price lost 11% of its value over the five days.

But they weren’t the worst performer on the index. That unwanted title goes to the Zip Co Limited (ASX: ZIP) share price with its 20.3% weekly decline.

Weakness in the tech sector and news that Apple has launched its buy now pay later (BNPL) offering, Apple Pay Later, led to rampant selling. The Zip share price is now down over 85% in 2022, making it also the worst performer on the ASX 200 year to date.

Here’s hoping for a rebound next week!

The post ASX 200 has its worst week in two years appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 real estate shares that hit new 52-week lows on Friday
• Why did the Lynas share price dive 8% today?
• Could these ASX 200 shares be most vulnerable to rising energy costs? Macquarie weighs in
• Zip share price hits multi-year low as Assistant Treasurer flags BNPL regulation
• Here are the 3 most traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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.

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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

But which ETTs should you buy? Here are two ETFs that are rated highly by analysts right now:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The first ETF for investors to look at is the ETFS Battery Tech & Lithium ETF.

This ETF provides investors with exposure to a range of companies involved in battery technology and lithium mining. These are a group of companies which look well-placed to prosper from the decarbonisation trend.

Among the shares included in the ETF are AMG Advanced Metallurgical Group, Lockheed Martin, Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).

Jessica Amir from Saxo Markets believes this ETF could be a top option for investors. She recently suggested that it could be good way for investors to gain exposure to the decarbonisation megatrend.

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

Another ETF that could be a top option for investors is the VanEck Vectors MSCI World ex Australia Quality ETF.

This ETF gives investors access to a group of high quality shares from across the world but excluding Australia. This could make it a good option for investors that already have a portfolio of quality Australian shares.

The companies included in the fund typically have low leverage, high earnings growth rates, and high returns on equity. Among its holdings are the likes of Apple, Microsoft, Nike, and Nvidia.

Shaw and Partners’ Felicity Thomas is positive on this ETF. She recently told Livewire: “[F]or me, it’s actually a buy. With rising interest rates and the war that’s going on in Europe, I actually think it’s important to invest in quality companies with high revenue growth and a solid balance sheet, which QUAL provides.”

The post Are these 2 high quality ETFs in the buy zone this month? appeared first on The Motley Fool Australia.

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More reading

• Down 14% in 2022, is the EFTS Battery Tech & Lithium EFT (ACDC) a buy?
• 2 ETFs I’d buy in June 2022
• These 2 ASX ETFs are focused on ‘green’ technology
• 2 fantastic ETFs for ASX investors to buy next week
• 2 high quality ETFs for ASX investors to buy

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 Pexa Group Ltd (ASX: PXA) share price fell 3.62% on Friday to close the trading week at $13.30.

It came after reports surfaced that the Australian Competition and Consumer Commission (ACCC) is investigating the online property exchange network operator.

According to The Australian, the ACCC is probing the company for potential breaches of Section 46 of the Competition and Consumer Act, which “prohibits a firm with a substantial degree of market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition in a market”.

In wider market moves on Friday, the S&P/ASX 200 Real Estate Index (ASX: XRE) slipped 2.85% into the red.

Returns over the last three months for both instruments are plotted on the chart below, showing striking similarities in directional movement.

ACCC to investigate Pexa

The Pexa share price has been descending over the last two to three months, having stumbled from a previous closing high of $18.49 on 5 April.

This week, however, shares have slumped another 11%.

This comes amid reports the ACCC has started proceedings following accusations from competitor Sympli.

Allegations from Sympli say that Pexa delayed “interoperability”, according to The Australian. Interoperability is a system where platforms communicate with each other to enable property transactions to be completed across different operators, the report says.

“Sympli has also accused Pexa of withholding access to information that it needs to move forward to build its own electronic lodgement network,” the report said.

“Sympli CEO Philip Joyce also accused the market leader of being disingenuous in its dealings with other stakeholders.”

This isn’t the first time the ACCC has stuck the needle in to investigate Pexa. Back in September 2018, the ACCC drafted a report on the state of the industry, probing if Pexa’s large market share constituted a risk.

It remains to be seen what course of action the ACCC will take in its investigation and/or any recommendations from its final report.

In the last 12 months, the Pexa share price has crumbled by 22%. It has also fallen 33% this year to date.

The post Pexa Group share price slides 4% amid ACCC probe appeared first on The Motley Fool Australia.

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More reading

• Fund manager names 3 ASX shares with monopoly moats

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group Limited. 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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