Tag: Motley Fool

It might be easy to forget in 2024, but until relatively recently, it was common for savings accounts and term deposits from banks to offer laughably low rates of return. Especially compared to the dividends available from ASX banks like Westpac Banking Corp (ASX: WBC).

Between 2012 and 2022, interest rates were at historic lows. That definition was redefined between 2020 and 2022 when rates were reduced to just 0.1% in light of the global pandemic.

But 2022 saw inflation take off, and, as a result, the Reserve Bank of Australia (RBA) raised interest rates at the sharpest trajectory in history. That saw the cash rate rise from 0.1% in April of 2022 to 4.35% by December last year.

Whilst this might be unpleasant for most Australians, particularly mortgage holders, it also heralded a new era for cash savers.

When interest rates rise, so do the interest rates investors enjoy on term deposits, savings accounts and government bonds.

Back in 2021, a saver would be lucky to get an interest rate of 1% on a multi-year term deposit. In contrast, the dividend yields from bank shares like Westpac were still well above 5%. Those dividends usually come with full franking credits attached too, making the choice between the two an easy one for all but for the most conservative, risk-averse investors.

But what about today, with interest rates at decade highs? Are ASX bank dividends from the likes of Westpac still a better investment for yield hunters?

Are Westpac’s dividends better than its term deposits?

Well, let’s start at the start. Right now, Westpac shares are trading on a dividend yield of 5.46%. That comes from the bank’s last two dividend payments, which consisted of December’s final dividend of 72 cents per share, as well as last June’s interim payment of 70 cents per share. Both dividends came with full franking credits.

Plugging those dividends into the current Westpac share price of $25.99, and we get that 5.46% trailing yield. If we include the value of those franking credits, we get a grossed-up yield of 7.8%.

So how do term deposits compare?

Well, we’ll look at Westpac’s offerings to start with. Right now, the top term deposit interest rate one can bag from Westpac is 4.8%. That’s reportedly a special offer valid for 11-month term deposits. Other lengths will attract an interest rate of between 3.75% and 4.25%.

Other banks are offering similar rates. The highest available for a term deposit right now from an Australian financial institution is around 5.15%.

So the Westpac dividend is incontrovertibly the superior investment for income seekers if maximising returns is your goal. Particularly taking those franking credits into account.

However, that of course assumes Westpac will continue to pay out the same or higher rates of income over the next 12 months as it did over the last 12. That’s not an assumption any investor can or should make. Dividends are never guaranteed, even from ASX bank shares.

As such, investors who rely on dividends and interest income to pay their bills might prefer the safety of a term deposit, or even splitting their funds between dividend shares and cash. That safety does have a price in the form of that lower interest rate. But that’s how the financial world usually works.

The post Do Westpac dividends still beat money in a term deposit? appeared first on The Motley Fool Australia.

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More reading

• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• After leaping to 52-week highs in March, what’s next for the Westpac share price?
• I’d spend $8k on these ASX 200 shares today to target a $6,102 annual passive income
• Are Westpac shares a buy following the bank’s big tech update?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen 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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If you were in front of a television this morning just before 8am, and tuned to Channel Nine, you might have seen me chatting with Karl and Sarah about credit cards.

As I said on air, until I did some research over the weekend, I had no idea that interest rates on some cards had reached 28%.

Twenty. Eight. Per. Cent. Bloody hell.

More than a quarter of your yearly balance, in interest, each year.

It is, quite simply, usurious.

I’ve been critical, I think completely reasonably, about the buy-now-pay-later craze of people finding new and inventive ways of mortgaging their future cashflows, but credit cards still take the cake, in terms of sheer financial impact.

(By the way, Afterpay has announced it’s increasing credit limits for its customers. Because, you know, what we need is more consumer credit. Again… bloody hell…)

The easy answer, of course, is not to use them. Or to use them, but pay them off in the interest free period.

Easy answer. Hard to do, for many people.

Some didn’t have a choice, needing to replace a fridge, or get a car fixed.

Some had a choice, but made a bad one, unaware or unprepared for the financial burden it would entail.

Whatever the cause, surely an almost-30% interest rate is unconscionable.

I spend a lot of time preaching about the benefits of compounding.

But compounding works in both directions – on savings and on debts.

This morning, I was asked what people could do.

The sad reality is that no-one voluntarily pays 28% (or 25%, or 20%, or 15%) unless they have to.

That is, once the money is spent, and the debt incurred, you have to pay the piper.

But if you can’t pay the piper up front? Then the piper demands an increasing pound of flesh, as time goes on.

And as the debt snowballs – especially at rates that make standover men look generous – the bill gets harder and harder to pay, requiring more and more of each paycheque.

There’s a reason it’s called a ‘debt spiral’.

And, by the way, you may have noticed (or probably didn’t, because they’ve kept it very quiet) that the banks are also starting to shorten their interest-free periods for many cards.

You might have guessed by now that, other than in cases of emergency, I hate consumer debt (i.e. debt used for consumption, rather than purchasing an asset).

It is a cancer on your finances. At the risk of being called Grandpa, I’m from the ‘spend what you can afford or have already saved’ camp.

It’s better for your financial health, and it helps develop financial discipline. Without it, you run the very real risk of being sucked into a debt spiral… or just running your financial life too close to the wind.

The fitness influencers suggest that ‘nothing tastes as good as thin feels’.

I can’t say I’d know… But I do know that, in my experience and from much of the research, there is a very high correlation between financial health and emotional and physical wellbeing, thanks to far lower levels of stress and worry about finances.

Sure, you might have to readjust your financial expectations, and maybe forgo a little spending in the short term.

But the dopamine hit from retail spending pales into insignificance compared to the feeling of financial comfort, knowing that you are prepared for whatever life has to throw at you, without paying stupidly high interest bills for the privilege.

—

And speaking of unstable finances, the longish drive to and from the Channel Nine studios gave me a chance to catch up on some audiobook listening.

Michael Lewis is always an engaging and fascinating author, and I started listening to Boomerang, covering some of the global fallout of (and contributing to) the Global Financial Crisis of 2008/9.

In the early chapters he covers Iceland’s incredibly rapid ascent from small, regional economy, to massive financial player.

You might know that the whole thing went – unsurprisingly – badly.

But, of course, Lewis tells the story as it unfolds, so we get to see how it got that bad in the first place.

It’s a story of unbridled greed, as most of these things are.

It’s also a story of convenient explanations: people telling themselves and each other what they want to believe: Iceland was special. Other people didn’t understand. Or they were just jealous. It was different this time…

Of course, it wasn’t different that time. Or the time before. Or the time after.

But that doesn’t mean people weren’t sucked in. In large numbers.

Other people were getting rich. The stories seemed plausible, if you suspended just enough disbelief.

The true believers were all in. How bad could it really be? And hey, I’ll get out before it goes really bad.

And so, unfortunately, it goes.

And why am I telling you all this?

Because it won’t be different the next time, either.

Otherwise smart people will be offering plausible explanations.

Asset prices – specific assets, or assets in general – will be rising.

Your next door neighbour will be getting rich.

Even though it won’t make any sense, you’ll start to wonder if, perhaps, they’re right. Perhaps it’s different this time after all?

Remember, back at the time of the dot.com boom, business magazine Barron’s famously published an article titled ‘What’s Wrong, Warren?’. The inference was that Warren (Buffett, of course) had lost the plot and just wasn’t keeping up with the ‘new economy’ of dot.com superstars.

We know how that ended. The NASDAQ lost 80%-plus of its value, and Buffett was vindicated.

But – and this is important – Buffett didn’t try to time the market. He didn’t try to make money by short-selling tech stocks (making money when prices fell). He didn’t do anything different at all.

He just refused to be pushed off his line. He knew where he was going, how he was going to invest, and what he thought would generate long-term compound returns.

And he just kept doing it, no matter what others thought, said, or did.

See, success comes from finding what works, over the long term, then… just doing it.

You don’t have to react to every boom and bust. Indeed, trying to do that is a dangerous pursuit. Just ask Iceland. Or US real estate speculators. Or dot.com investors in 1999. Or NFT buyers (NFTs were those ‘digital originals’; monkeys and other stuff that apparently people were going to pay millions for. And did… for a while, before they didn’t). Or those who invested in various crypto tokens themselves.

—

And that’s kinda what draws these two seemingly different stories together: the reality that getting ahead of ourselves is probably going to see things end badly. And that, even if they don’t, it was a bad bet, regardless.

It’s possible to win a round of poker with a bad hand. But not likely.

It’s possible to make money with a ‘this time it’s different’ thesis. But that’s not likely, either.

And it’s possible to use credit card debt wisely. But the evidence is that many, many people don’t, and end up being financially crippled as a result.

Deep down, I think we all know the right thing to do, financially. Sometimes circumstances cruel our chances. Other times, our innate humanity: greed, envy and an inability to correctly envisage long term (positive and negative) consequences, tears us assunder.

Sometimes it’s relatively easy to think you can spot a bubble. Other times you get caught up in it, and it’s much harder.

Icelanders tried to become the exception. So did crypto speculators. Others before. Others, again, in the future. Because that’s the nature of things.

The superpower to nurture might just be the ability to stay the course, while others fly higher. Because they’ll very likely end up too close to the sun.

To mix my myths and fables, as I tweeted the other day, if I was to produce a bumper sticker, it would simply read:

“Investing: Aesop was right. The tortoise wins.”

I hope you’ll keep that in mind.

Fool on!

The post Afterpay increasing credit limits… what could go wrong? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• 1 ASX 200 stock I’m buying hand over fist despite the market’s pessimism
• Here are the top 10 ASX 200 shares today
• Why is the ASX 200 ending the week with a whimper?

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. 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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Luckily for income investors, there are a good number of ASX dividend shares to choose from on the ASX 300 index.

But which ones could be buys right now?

Three that come from different sides of the market and have been named as buys are listed below.

Here’s what you need to know about these income options:

Baby Bunting Group Ltd (ASX: BBN)

The team at Morgan Stanley thinks that this baby products retailer could be an ASX 300 dividend share to buy.

Last month, the broker upgraded its shares to an overweight rating on the belief that headwinds are now easing and its outlook is becoming increasingly positive. This is expected to lead to a big improvement in earnings and dividends next year.

For example, the broker is forecasting fully franked dividends per share of 6 cents in FY 2024 and then 9 cents in FY 2025. Based on the current Baby Bunting share price of $1.92, this will mean dividend yields of 3.1% and 4.7%, respectively.

Morgan Stanley has an overweight rating and $2.20 price target on the company’s shares.

HomeCo Daily Needs REIT (ASX: HDN)

Over at Morgans, its analysts think that HomeCo Daily Needs could be an ASX 300 dividend share to buy. It is a property company with a focus on neighbourhood retail, large format retail, and health and services.

The broker has been pleased with management’s shift in focus from large format retail to daily needs. It appears to believe this sets it up nicely for growth over the coming years.

Morgans also expects it to underpin the payment of dividends per share of 8 cents in FY 2024 and then 9 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.24, this will mean yields of 6.5% and 7.3%, respectively.

Morgans has an add rating and $1.37 price target on its shares.

Rural Funds Group (ASX: RFF)

A final ASX 300 dividend share that could be a buy this week is Rural Funds. It is an agricultural property company that owns a collection of assets such as orchards, vineyards, and cattle ranches.

Bell Potter is a fan of the company. Its analysts see a lot of value in its shares at current levels and expect some attractive yields.

For example, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.05, this will mean yields of 5.7% for investors in both years.

Bell Potter has a buy rating and $2.40 price target on its shares.

The post 3 ASX 300 dividend shares that analysts love appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares I plan to hold til I’m 100
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• 1 ASX dividend stock down over 34% to buy right now
• 3 ASX 300 dividend shares to buy in April

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 Rural Funds Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. 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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Both Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have arguably been some of the go-to punching bags for Australian consumers over the past year or two as the cost of living crunch we’re all enduring started to bite.

Buying life’s essentials has only become harder for many Australian families since 2021. That’s thanks to rising interest rates and stubbornly high inflation taking a sizeable chunk out of the average household budget.

Much of the inflation swirling around the economy has been evident on supermarket shelves. As such, it’s probably fair to say that both Coles and Woolies have taken a bit of a hit in the court of public opinion.

So it was not too surprising to see the Federal Government act on some of these concerns earlier this year. In January, the government announced that former minister Dr Craig Emerson would lead a review of the Food and Grocery Code of Conduct.

Thanks to comments and opinions across the political spectrum in recent months, some investors may have started to worry that this review might recommend drastic changes to how Coles and Woolworths are allowed to operate in the Australian grocery space. Members of the Liberal, National and Greens political parties have all called for Coles and Woolworths to be ‘broken up’ in various ways.

Well, those investors can breathe a sigh of relief today.

Woolworths and Coles shares safe from breakup

Dr Emerson’s review has just released an interim report detailing its initial findings in the grocery sector.

The interim report makes several strong recommendations to the government on how to change supermarket regulations. These include making the now-voluntary Food and Grocery Code of Conduct mandatory for all grocery companies with more than $5 billion in annual revenues.

It also recommends significant penalties for any company that breaches the code. It noted that the current environment allows “no penalties for breaches”.

However, the report also comes out strongly against the idea of divestiture of a supermarket ‘break up’:

The review does not support a forced divestiture power to address market power issues in the
supermarket industry…

If forced divestiture resulted in a supermarket selling some of its stores to another large incumbent
supermarket chain, the result could easily be greater market concentration.

If large incumbent supermarket chains were prohibited from buying the divested stores, that would
leave only smaller supermarket chains and foreign supermarkets as potential buyers. Further, if these
smaller chains were not interested, or were not in a position to buy, these stores would be forced to
close…

This review’s recommendations to make the Code mandatory, with heavy penalties for major
breaches will, alongside effective enforcement of the existing competition laws, constitute a far more
credible deterrent to anti-competitive behaviour than forced divesture laws.

Foolish takeaway

So it seems that Coles and Woolworths will likely keep their present corporate structures, based on the findings of this review.

Owners of Coles and Woolworths shares will undoubtedly be pleased with this outcome — not that you’d know it from their stock prices today. At present, Woolworths shares are down 0.12%, while Coles stock has lost 1.28%.

The post Have Woolworths and Coles shares been spared a break-up? appeared first on The Motley Fool Australia.

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More reading

• Buy Telstra and these ASX dividend shares next week
• 3 ‘forever’ ASX dividend shares to build your wealth
• 2 ASX dividend shares to beat inflation
• 2 ASX 200 retirement shares to buy now
• Bell Potter names the best ASX 200 shares to buy in April

Motley Fool contributor Sebastian Bowen 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 Coles Group. 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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With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

CSL Ltd (ASX: CSL)

According to a note out of Macquarie, its analysts have retained their outperform rating on this biotherapeutics giant’s shares with an improved price target of $330.00. Macquarie highlights that the CSL share price has underperformed over the last 12 months. Its analysts blame this on a slower than expected improvement in the company’s gross margin. Nevertheless, Macquarie believes investors should be taking advantage of this weakness. Particularly given its belief that the key CSL Behring business is well-positioned to deliver strong earnings growth over the coming years. In fact, the broker suspects that this growth could help drive its shares beyond the $500 mark by 2027. The CSL share price is trading at $281.04 on Monday.

Mader Group Ltd (ASX: MAD)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $7.60 price target on Mader’s shares. It is a leading provider of specialised contract labour for maintenance of heavy mobile equipment in the resources and civil industries. The broker is feeling so positive about the company that it has added it to its favoured list this month. Its analysts note that their very positive earnings outlook is underpinned by the ongoing expansion of the company’s core service offerings into new, large markets. This includes the United States and Canadian mining and energy sectors. The Mader share price is fetching $5.92 on Monday afternoon.

Suncorp Group Ltd (ASX: SUN)

Analysts at Morgans have retained their add rating on this insurance and banking giant’s shares with an improved price target of $17.30. This follows news that Suncorp has agreed to sell its NZ Life insurance business, Asteron Life, to Resolution Life for a total of NZ$410 million (A$375 million). This comprises an upfront payment of NZ$250 million (A$223 million) at completion and the remainder due 18 months after completion. The broker supports this decision and, together with the sale of its banking operations, points out that this will mean Suncorp become a pureplay general insurer. The Suncorp share price is trading at $16.35 at the time of writing.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares for trying to build wealth after 50
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• Here are the top 10 ASX 200 shares today
• 3 ASX shares boasting better revenue growth than Tesla

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Mader Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Mader Group. The Motley Fool Australia has recommended CSL. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up slightly to 7,779.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are racing higher on Monday:

Life360 Inc (ASX: 360)

The Life360 share price is up 17% to $14.20. This follows the release of a trading update which revealed that the location technology company has had a record first quarter. Life360’s global Monthly Active Users (MAU) were 66.4 million at the end of the first quarter. This is an increase of 4.9 million since the end of the fourth quarter and represents a record for a first quarter. It is also more than double the net additions of 2.2 million the company recorded in the prior corresponding period. Life360 also suggested that a dual listing on Wall Street could be coming soon.

Qantas Airways Limited (ASX: QAN)

The Qantas Airways share price is up 5% to $5.71. Investors have responded positively to news that Qantas is making “one of the biggest ever expansions” of its frequent flyer program. This will see the Flying Kangaroo add 200 million more reward seats with the launch of Classic Plus Flight Rewards. CEO Vanessa Hudson said: “The Qantas Frequent Flyer program is an integral part of Qantas and has always been about recognising our customers for their loyalty. The widespread availability of Classic Plus means that frequent flyers have more options to fly where they want, when they want and more often, using their points.”

Qoria Ltd (ASX: QOR)

The Qoria share price is up 30% to 41 cents. This follows news that the cyber safety company has received and rejected a takeover offer. According to the release, the company, formerly known as Family Zone Cyber Safety, believes the 40 cents per share offer from K1 Investment Management “significantly undervalues Qoria and has unanimously rejected the Indicative Proposal as not being in the best interests of shareholders.”

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake Resources share price is up 5% to $1.34. Investors have been buying this gold miner’s shares following the release of a sales update. According to the release, Silver Lake Resources’ sales for the third quarter were 64,463 ounces of gold and 338 tonnes of copper. This brings financial year to date sales to 187,244 ounces of gold and 872 tonnes of copper. Management advised that both the Mount Monger and Deflector operations performed strongly through the quarter and are well positioned to meet the top end of their respective guidance ranges.

The post Why Life360, Qantas, Qoria, and Silver Lake shares are racing higher today appeared first on The Motley Fool Australia.

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More reading

• This ASX All Ords small-cap is soaring 33% on a takeover bid
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• Buy this high-flying ASX 200 tech stock for a big return
• Why one fund manager thinks Qantas shares are cheap and ‘incredibly underappreciated’

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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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One of the most notable events in the investing world over 2024 so far has been the rising gold price.

Sure, this year has seen new all-time highs for a plethora of stock markets around the world. That includes our own S&P/ASX 200 Index (ASX: XJO) as well as other indexes like the Dow Jones Industrial Average Index(DJX: .DJI), the Nikkei 225 and the S&P 500 Index (SP: .INX).

But humans have been pricing gold for far longer than any stock exchange has been around. That makes the new record highs we’ve seen for this precious metal in 2024 arguably even more notable.

Gold ended 2023 at a price of roughly US$2,066 an ounce. But the metal has climbed significantly in 2024 so far, and last week hit a new record high of US$2,320 an ounce. Gold has continued to climb this week, with the price going above US$2,330 an ounce over the weekend.

That’s some healthy appreciation to be sure.

But one ASX broker reckons the precious metal has further to climb.

According to one source, ASX broker Citi has raised its three-month gold price forecast to US$2,400 an ounce. If realised, that would see the yellow metal rise another 9% or so from where it is today.

Citi is also reportedly contemplating a “bullish wildcard scenario” of gold hitting US$3,000 an ounce over the next 12 months. Citi is basing these gold price predictions primarily on the likelihood that the US Federal Reserve will start cutting interest rates in 2024.

Gold is an investment that doesn’t pay interest to its holders. As such, its attractiveness compared to other assets like cash and bonds increases when interest rates fall.

How to benefit from the rising gold price

Despite gold’s impressive runup over the last few months, another ASX broker reckons there’s still time to benefit from it.

As my Fool colleague James covered just this morning, ASX broker Goldman Sachs has recently named three ASX gold shares that it thinks are worth a buy right now.

Those were De Grey Mining Ltd (ASX: DEG), Evolution Mining Ltd (ASX: EVN) and Gold Road Resources Ltd (ASX: GOR). Goldman gave all three stocks a buy rating. But its most enthusiastic pick was Gold Road. The broker’s 12-month share price target for this gold share was $2. That implies a potential upside for investors of around 18.3% over the coming year.

Goldman likes Gold Road’s current balance sheet, as well as its share price. This, according to the broker, is “trading at a significant discount to peers”.

The post Why one broker thinks the gold price could glisten 9% brighter appeared first on The Motley Fool Australia.

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• 3 ASX 200 gold stocks to buy now
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• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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 Group. 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 S&P/ASX 200 Index (ASX: XJO) is back on form on Monday and pushing higher. In afternoon trade, the benchmark index is up 0.25% to 7,793.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling on Monday:

APM Human Services International Ltd (ASX: APM)

The APM Human Services share price is down 29% to $1.16. Investors have been selling this human services provider’s shares today in response to a takeover update. According to the release, CVC Asia Pacific has pulled the plug on its non-binding $2.00 per share offer following the completion of due diligence. And while APM has received another offer from Madison Dearborn Partners, the company has described it as “disappointing.” Nevertheless, the board intends to engage with Madison Dearborn Partners to see if it is possible for an improvement to its $1.40 per share offer.

Azure Minerals Ltd (ASX: AZS)

The Azure Minerals share price is down almost 9% to $3.26. Today the lithium explorer is holding its scheme meeting relating to the proposed takeover by SQM and Hancock Prospecting. The offer is $3.70 per Azure share with a fall-back conditional off-market takeover offer of $3.65 per Azure share. However, ahead of the meeting, the company revealed that the Foreign Investment Review Board has requested more time to decide on the deal. The company remains positive that approval will be granted. It said: “This is a standard extension request and Azure is not aware of any reason that the required FIRB approval will not be received.”

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 15% to $1.61. Investors have been selling the energy producer’s shares after it revealed a series of quality issues at its Waitsia joint venture project in the Perth Basin. Beach is now working to update the production schedule and cost estimates for Waitsia, advising that “the extent of additional quality issues is to a point where current guidance on schedule and cost needs to be updated.”

Elders Ltd (ASX: ELD)

The Elders share price is down 24% to $7.49. This agribusiness company’s shares have come under significant pressure today after it released a trading update. Elders notes that first half trading in FY 2024 has been significantly below expectations due to a number of drivers. This includes subdued client sentiment following an El Niño declaration by the Bureau of Meteorology. As a result, Elders expects EBIT to fall 18% to 30% in FY 2024 to between $120 million and $140 million.

The post Why APM, Azure Minerals, Beach Energy, and Elders shares are crashing today appeared first on The Motley Fool Australia.

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More reading

• APM shares collapse 30% as ‘disappointing’ bid lands in its lap
• Guess which ASX 200 energy share is imploding 18% today on cost blowouts
• Why is this ASX 200 share plunging 29% after a trading update?
• Here are the top 10 ASX 200 shares today
• APM share price freeze extended amid new takeover bid

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 recommended APM Human Services International and Elders. 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 owned S&P/ASX 200 Index (ASX: XJO) lithium stocks in 2021 and 2022, you likely enjoyed some outsized share price gains at the time.

That period saw a massive increase in lithium demand amid strong growth in global battery markets, particularly to power EVs.

With new supplies lagging that demand growth, lithium carbonite prices soared to all-time highs north of US$80,000 per tonne by November 2022.

Over the following year, as you’re likely aware, the price of the battery-critical metal fell off a cliff, tumbling more than 80% as demand growth slowed and new supplies flooded the market.

ASX 200 lithium stocks came under heavy selling pressure and continue to broadly underperform this year.

Here’s how these top producers have fared so far in 2024:

• Pilbara Minerals Ltd (ASX: PLS) shares down 4.7%
• Core Lithium Ltd (ASX: CXO) shares are down 43.7%
• IGO Ltd (ASX: IGO) shares are down 19.8%
• Liontown Resources Ltd (ASX: LTR) shares are down 29.5%

For some context, the ASX 200 is up 2.2% year to date.

But in potentially good news for ASX 200 lithium stocks, one leading fund manager believes the market is poised to rebound.

ASX 200 lithium stocks moving back towards balanced markets

As The Australian Financial Review reports, modelling by Ethical Partners indicates global lithium markets are heading “rapidly back” towards equilibrium. Contrary to more bearish forecasts from the likes of Goldman Sachs, the fund manager is even flagging the potential for demand to exceed supply again.

Part of the forecast stems from lower production targets among numerous lithium producers, who are looking to cut costs amid lower spot prices.

According to Sam Cox, an analyst at Ethical Partners, “Since November, we believe the lithium market has moved from an 8% surplus in 2024 to roughly in balance.”

In potentially good news for ASX 200 lithium stocks in the months ahead, Cox said, “While demand will still be a key driver of price direction from here, we see green shoots … The market has yet to identify this trend and is still looking backwards.”

Cox added:

From 2021 to 2023, lithium supply almost doubled. We estimate a quarter of this supply came from sources not producing in 2020.

But Ethical Partners already sees that trend reversing, with the lithium price rebounding around 10% so far in 2024.

Which ASX lithium producers are set to benefit?

While most ASX 200 lithium stocks should benefit from any rebound in the price of the battery-critical metal, Ethical Partners currently only owns IGO shares.

According to Cox (quoted by the AFR), that’s because IGO is the only miner that meets the fund manager’s cash flow requirements.

For its half-year results, IGO reported an underlying free cash flow of $434 million, up from $433 million in the prior corresponding half-year.

IGO held $267 million in cash with no debt at the end of the half-year.

The post The ASX 200 lithium stock this fundie is backing for the global lithium comeback appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
• When will Pilbara Minerals resume paying dividends?
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• Here are the top 10 ASX 200 shares today
• Why Imugene, Liontown, Pointsbet, and Regis Resources shares are storming higher

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

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The Fortescue Ltd (ASX: FMG) share price has lifted today after the mining giant announced the opening of its Gladstone green energy facility.

Fortescue may be best known as an ASX iron ore share, but it’s also working on various green energy initiatives. At the time of writing, Fortescue shares are up 1.21%, trading at $25.08.

Fortescue opens electrolyser facility

The new electrolyser manufacturing facility in Gladstone, Queensland, is one of the first globally to house an automated assembly line, according to Fortescue.

It’s a 15,000 sqm manufactured facility with the capacity to produce over 2GW of “proton exchange membrane (PEM) electrolyser stacks annually.”

Fortescue teams in Australia and the United States designed the facility’s electrolysers in-house, making Fortescue an original equipment manufacturer (OEM).

The miner noted that the Queensland government supported the development site, including the provision of an electrical substation, road network, communications and local scheme water connection, as well as the allocation of land. The Australian federal government also contributed $44 million from the Collaboration Stream of the Modern Manufacturing Initiative.

This facility is the first stage of a wider green energy manufacturing centre being developed by Fortescue on the 100-hectare Gladstone site. The centre includes a hydrogen system testing facility and Fortescue’s PEM50 green hydrogen project. The facility and wider centre will underpin more than 300 direct and indirect jobs.

And the bigger the green energy division becomes, the larger the influence on the Fortescue share price it could have.

Management commentary

Fortescue executive chair and founder Dr Andrew Forrest welcomed the milestone, saying:

We are grateful for the Queensland and Federal Government’s vision and early support to help get us started.

Together we have laid the cornerstone for what will be a massive new manufacturing industry in Australia creating the potential for thousands of new green energy jobs.

Fortescue Energy Division CEO Mark Hutchinson explained the company’s hydrogen plans:

The process of splitting hydrogen and oxygen isn’t new – but the innovative ways the world is looking to use green hydrogen to decarbonise are, and that means demand for green hydrogen and for the electrolysers to produce it is growing rapidly.

This facility positions Fortescue and Gladstone as a large-scale producer of what will be an increasingly sought-after commodity in the global shift to green energy.

We’re strategically focussed on building out our Energy business. Not only are we developing a pipeline of green energy projects, we’re also now designing and manufacturing the specialised equipment and technology that will underpin our green hydrogen projects and that of others.

Hutchinson also said it would keep investing in new electrolyser technologies to give Fortescue the “best possible competitive position”.

Fortescue share price snapshot

The Fortescue share price has fallen 15% since the start of 2024, but it has increased 12% in the last 12 months.

The post Fortescue shares climb amid Australian first for clean energy appeared first on The Motley Fool Australia.

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More reading

• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• Invest $6,000 in Fortescue shares and get $502 in passive income
• How this unexpected development in China could boost ASX 200 mining stocks
• Are your big ASX 200 mining dividends in for a chop?
• Here is the profit forecast to 2026 for Fortescue shares

Motley Fool contributor Tristan Harrison has positions in Fortescue. 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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