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The latest commodity price forecast revisions from Commonwealth Bank of Australia (ASX: CBA) could impact ASX dividend investors eyeing long-term payouts from the likes of Fortescue Metals Group Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP).

Both of the iron ore giants showered investors with record dividend payouts over the past year on the back of all-time high prices for the industrial metal. But CBA is forecasting iron ore prices are due for a significant retrace.

What’s been happening with iron ore?

Iron ore reached nearly US$220 per tonne in July last year before sliding to US$92 per tonne in November and then rebounding once more. It’s currently trading for just under US$135 per tonne.

With the miners flush with cash, much of which was returned to shareholders, this sees BHP currently trading on a 11.0% trailing dividend yield and Fortescue paying a whopping 15.2% yield.

But if CBA’s commodities team has it right, the big miners may need to tighten their belts in the face of a 27% drop in iron ore prices by year’s end.

What is CBA forecasting?

CommBank’s director of mining and energy commodities research Vivek Dhar said CBA has “made significant revisions to our commodity price deck”.

According to Dhar (as reported by The Australian Financial Review):

Industrial metal and iron ore prices remain beholden to Chinese policy. We anticipate that China’s COVID‑19 lockdowns will ease enough by [the second half of] 2022 to enable policy support measures to boost China’s demand impulse. Base metal prices should lift from [the third quarter of] 2022 to [the fourth quarter of] 2022 as a result.

Our declining iron ore price profile indicates China’s plan to reduce steel output production this year. Steel production will likely need to be constrained later this year, echoing restrictions [imposed in 2021].

CBA forecasts iron ore prices will fall to US$120 per tonne by the end of September and finish 2022 trading for US$100 per tonne.

Gazing further ahead, CBA analysts see a further 20% slide the following year, with iron ore trading for US$80 per tonne at the end of 2023 and likely staying in that range into 2025.

The post Iron ore price to fall 27% by end of 2022: CBA appeared first on The Motley Fool Australia.

More reading

• Why the CBA share price is beating the market in May
• Why did the Fortescue share price lag the ASX 200 in May?
• Why this rich lister is buying ASX dividend shares that ‘pay you to wait’
• Leading brokers name 3 ASX shares to buy today
• Why I’d buy these 2 ASX 200 shares

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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Inflation.

Scary, huh?

Prices in the US are up by 8%.

9% in the UK.

Producer prices are up more than 12% in Germany.

Here?

5.1%. For now.

The last quarterly read was 2.1%.

If you annualise that… well, the US experience comes to mind.

And I have to say, there’s no guarantee that it doesn’t get worse from here.

I was talking to a mate on Saturday who has his own business.

He’s seeing prices going up all over the place, particularly imports.

He reckons there’ll be worse to come. I think he might be right.

If there’s a good time not to be a central banker, it’s right now.

It’s also the time we need their expertise most, of course.

But it won’t be easy.

We’re still emerging from a pandemic.

There’s war in Europe.

Shutdowns in China.

Ports are clogged and sclerotic.

We have the same amount of money, chasing fewer goods.

Is it any wonder prices are rising?

Don’t get me wrong, I’m still an eternal optimist.

Our best days – as a country and as a system of democratic capitalism – are ahead of us.

But it might be a bumpy ride on the way, particularly this year and maybe next.

Right now, share markets are scared.

You only have to look at the indiscriminate selling of the shares of ‘growth companies’ to see that.

Sure, some businesses may not survive as prices rise and new funding dries up.

But the rest?

They’re the babies being thrown out with the bathwater.

I was talking to another mate last week.

He mentioned a US company whose shares have fallen from 36 times revenue to 3 times, despite sales growth of almost 50% year over year.

Sure, that 36 might have been (almost certainly was!) a crazy multiple.

But 3 times?

The same business. The same growth trajectory. The same impressive outlook.

No, you shouldn’t buy shares just because they’re down – they can always go further (or, in a worst-case scenario, to zero).

But – and this is important – it’s not the time to sit on the sidelines, or worse, to sell.

If inflation continues at these sorts of rates, your purchasing power is being eroded, almost daily.

If some share prices are at panic levels, that opportunity isn’t going to be around for long.

Whether you’re looking for income from your shares, or for the next 10-bagger, this is precisely the time you should be paying most attention.

But guess what?

Most people aren’t. They’re waiting for the good times to return first.

Good times? Like when that company’s shares were at nosebleed levels and everyone was partying?

You can see the problem, can’t you?

Oh, I’d love to wait until the coast is clear, too.

Wait for someone to yell ‘Come on in, the water’s fine’.

But you know who tried that? The people who waited, in March and April, 2020, for COVID to be over before investing.

And since then?

The ASX is up more than 50%.

Plus dividends.

I’m not Harry Hindsight, by the way. I was banging the table at the time.

How much will our purchasing power be eroded by the time some people decide to invest?

How far will share prices have risen before some people decide the water is calm enough to dip their toes in?

You know Warren Buffett, right?

He famously said that we pay a ‘high price for a cheery consensus’ in the stock market.

In other words, by the time everyone is feeling good, prices have already risen.

The time to buy is when everyone else is scared.

That’s when prices are low(est).

Which is precisely how the most money is made.

Not in a day. Or in a week. Or even necessarily in a year.

Don’t you wish you’d invested (more) in March 2020?

$10,000 invested then would be worth north of $15,000 today. Plus dividends!

Not bad for 26 months’ (of no) work, huh?

And how far will retail prices have risen in the next 26 months?

What will that $1,000 buy you by then? Maybe something like 10 – 20% less?

Even if bank interest goes up a little bit, it’s very, very unlikely to even go close to keeping up with inflation.

Can I guarantee that share prices will?

Nope.

But I can tell you that, over more than a century, Australia’s share market has earned an average of 9 – 11% per annum.

Which beats cash in the bank. And, over time, should handily beat inflation, too.

It might be a bumpy ride.

It might fall further before it rises.

Those gains could take a while to come to fruition.

But I’m betting (literally; my entire retirement savings are invested in shares alone) that they’ll come.

And when they do, that they’ll beat inflation.

And I reckon history will show that a portfolio of quality businesses will have been a bargain in May and June 2022.

Some will do spectacularly well from here.

But you need to take action.

You know the overwhelming response I get from investors, in 2022, when we talk about March and April 2020?

“I wish I’d bought more”!

I’m not saying this is the bottom. If I did, I’d be guessing. So would everyone else (but they might be less honest about it).

What I am saying is that I think now is a great time to be buying (and/or holding) shares if you have a long term investing horizon.

I think there is an opportunity for the enterprising investor, if they’re prepared to grasp the nettle and (to mix my metaphors) ride the waves.

The choice is yours.

Fool on!

The post Interest rates have mugged shares… for now appeared first on The Motley Fool Australia.

More reading

• Here’s why the Kalium Lakes share price is rocketing 25% higher today
• 3 ASX mining shares billionaire John Hancock is buying for rising inflation and the energy transition
• Here’s why I’m going to invest in more Soul Pattinson shares in June
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• Buy these 2 impressive ASX 200 shares in June 2022: experts

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 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 Kalium Lakes Ltd (ASX: KLL) share price has been in sensational form on Tuesday.

In morning trade, the sulphate of potash (SOP) developer’s shares are up 25% to 11 cents.

Why is the Kalium Lakes share price racing higher?

Investors have been bidding the Kalium Lakes share price higher this morning after the company released an update on its Beyondie SOP Project.

According to the release, the company has validated the process design with production of approximately 400 tonnes of commercially saleable SOP.

In light of this, management appears confident that the Beyondie SOP Project will be operating at an approximate 80,000 tonnes per annum SOP production run rate by the first quarter of calendar year 2023.

After which, the company expects to reach its targeted 120,000 tonnes per annum run rate around 18 months later.

In addition, Kalium Lakes revealed that its SOP purification plant commissioning is proceeding as planned, with equipment testing well advanced and continuing in June and July.

Finally, management advised that discussions with debt providers and key offtake partner, K+S, are advancing in relation to funding initiatives and SOP deliveries, respectively.

Kalium Lakes’ Chief Executive Officer, Len Jubber, commented:

We are very pleased that through recent equipment testing and the production of SOP we have been able to validate the overall process chemistry and plant design. We are now focussed on systematically addressing the remaining bottlenecks in the plant and progressively increasing production.

Plant operations during 2022 will be variable taking into account our need to conduct further mechanical debottlenecking activities and build KTMS inventory. Kalium Lakes is the first SOP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SOP price environment. We believe the Company has an exciting future and we would like to thank all stakeholders, including shareholders, for their patience.

The post Here’s why the Kalium Lakes share price is rocketing 25% higher today appeared first on The Motley Fool Australia.

More reading

• Interest rates have mugged shares… for now
• 3 ASX mining shares billionaire John Hancock is buying for rising inflation and the energy transition
• Here’s why I’m going to invest in more Soul Pattinson shares in June
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• Buy these 2 impressive ASX 200 shares in June 2022: experts

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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ASX mining shares have, as a whole, well outpaced the benchmark index so far in 2022.

While the All Ordinaries Index (ASX: XAO) remains down by more than 5% for the calendar year, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has charged ahead, up 7.4%.

ASX mining shares, as you’re likely aware, have received some welcome tailwinds from soaring commodity prices.

That’s in part due to constricted supply chains amid rising demand as the world reopens from its lengthy COVID pause. It’s a situation that’s been exacerbated by Russia’s invasion of Ukraine.

But commodities aren’t the only area seeing big price increases.

The broader impact of rising inflation

While rising commodity prices are adding to the leap in inflation across most of the world, there are other factors at work sending inflation figures to their highest levels in decades. Like the bill coming due to years of historically low interest rates and unprecedented quantitative easing (QE) from global central banks.

And as well as benefiting from the price rises in the commodities they dig from the ground, ASX mining shares are likely beneficiaries of this fast-rising broader inflation.

As billionaire John Hancock, adviser to New York fund manager Lind Partners, pointed out (courtesy of The Australian Financial Review), “Commodities traditionally perform well in periods of inflation”.

3 ASX mining shares John Hancock is buying

Hancock named three specific ASX mining shares he believes are well positioned for not just higher inflation but also the ongoing global energy transition.

These are:

• Kuniko Ltd (ASX: KNI), a small-cap ASX mining share focused on nickel, copper, and cobalt exploration
• Vulcan Energy Resources Ltd (ASX: VUL), which is primarily focused on lithium supply solutions for the electric vehicle markets
• Aura Energy Limited (ASX: AEE), a uranium, vanadium, and gold explorer

“I’m focused on commodities, particularly those required for energy transition such as lithium, nickel, cobalt, and copper,” Hancock said.

He continued:

Commodities traditionally perform well in periods of inflation, but I’m more focused on the over-riding paradigm shift of energy transition, of which uranium has a role too. My investments in Vulcan Energy, Norway cobalt explorer Kuniko and Aura Energy, with its low cost Tiris project, reflect my views.

While these three ASX mining shares have all underperformed the benchmark in 2022, they have outperformed over the past 12 months.

The post 3 ASX mining shares billionaire John Hancock is buying for rising inflation and the energy transition appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vulcan share price is charging 6% higher
• Up 6%, why has the Vulcan share price surged higher today?
• Do Vulcan Energy shares pay dividends?
• Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago
• Why has the Vulcan share price tumbled 25% in a month?

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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I like to regularly invest in ASX shares, usually every month. In June, I’m planning on buying more shares in Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

While the investment house isn’t currently one of my biggest positions, I would like to grow my position in the company at the right price.

And I’m thinking that the current Soul Pattinson share price is the right price.

Below are the main reasons why I’m thinking about investing in more of its shares.

Soul Pattinson shares are cheaper

One of the most important parts of investing, in my opinion, is picking the right investment and buying it at a good price for the long term.

The Soul Pattinson share price has fallen by approximately 16% since the start of the 2022 calendar year. While its shares haven’t exactly crashed, I think this price is more attractive than it was when the year started.

Management has created a long-term reputation for value creation. I think the current Soul Pattinson share price now offers a good opportunity for me to increase my exposure.

Great diversification

In a volatile market like this, which has generally been trending downward, I think Soul Pattinson is a useful business with good diversification across a number of different industries.

The ASX share is invested in areas such as telecommunications, resources, agriculture, banking, financial services, swimming schools, and luxury retirement living. It’s also invested in areas like venture capital, property, structured credit, and cash.

Soul Pattinson says its portfolio of assets generates “reliable” cash flow through market cycles which can protect against the downside in market corrections.

I think Soul Pattinson is one of the easiest businesses to think long-term about because of its own investment strategy in investing long term with its holdings and possible future investments.

Investment universe

I really like that Soul Pattinson can choose to invest in any asset class that it wants to. This allows the business to diversify but also means the company can throw its investment net far and wide to try to find potential opportunities.

The company points out that a “flexible investment mandate allows WHSP to invest in and support companies from an early stage and grow with them over the long term”.

The flexibility of Soul Pattinson to invest in areas such as agriculture, retirement living, global shares, education, and so on gives it more sectors to look at for opportunities. In this period of market declines, there are plenty of potential opportunities for the company to look at.

Dividend

The Soul Pattinson dividend is one of the main reasons that I like this ASX share.

While the grossed-up dividend yield is 3.5%, it has built a long-term record of dividend stability and growth.

It has grown its dividend every year since 2000, which is a useful streak of growing cash returns while the Soul Pattinson share price goes up and down with the ASX share market.

Foolish takeaway

At the current Soul Pattinson share price, I’m quite eager to buy some more shares. Even if it were to rise a little, I’d still want to buy a parcel of shares because of how good I think the business is as an ultra-long-term investment.

The post Here’s why I’m going to invest in more Soul Pattinson shares in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy as a new investor
• Could now be a great time to start investing in ASX shares?
• This is the top ASX 200 share I wish I’d bought when starting out
• 2 ASX dividend shares I’d buy for passive income
• Is it reasonable to expect share price growth AND reliable dividends from ASX shares?

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company 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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Fund manager Wilson Asset Management (WAM) has recently identified two promising S&P/ASX 200 Index (ASX: XJO) shares it owns in one of its portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.

WAM says WAM Active invests in “market mispricing opportunities” in the Australian market.

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses, and taxes) of 10.9% per annum since its inception in January 2008, compared to the Bloomberg AusBond Bank Bill Index return per annum of 2.8%.

These are the two ASX shares that WAM outlined in its most recent monthly update:

AMP Limited (ASX: AMP)

Wilson Asset Management describes AMP as a retail wealth management and banking business operating in Australia and New Zealand with more than 4,000 employees servicing approximately 1.5 million customers.

The fund manager noted that in April, AMP announced it had agreed to sell its funds management arm Collimate Capital’s real estate and domestic infrastructure equity business to DEXUS Property Group (ASX: DXS) and its international infrastructure equity business to DigitalBridge Investment Holdco.

WAM points out that the transactions value Collimate Capital’s business at up to $2 billion, significantly strengthening AMP’s capital position, with plans to use the proceeds to pay down its corporate debt and return capital to shareholders.

WAM believes the sales will allow AMP to focus on driving its ‘core’ banking and retail wealth businesses which can help improve its competitiveness.

In early May, AMP announced that the ASX share’s banking arm’s total loan book increased by $500 in the first quarter of the 2022 calendar year. WAM thinks this shows positive signs of growth.

The fund manager anticipates that the core AMP business will continue to perform “well” and unlock future growth as it completes these transactions.

Breville Group Ltd (ASX: BRG)

Breville describes itself as a leading small electrical appliances provider in the consumer products industry.

In April, the Breville share price declined, which was in line with the broad market exposed to consumer spending as risks of a pending recession intensified with inflation data worsening. WAM thinks this points to a weaker consumer environment.

However, the fund manager is positive on the Breville share price thanks to the company’s ability to continue expanding its addressable market and its long-term expansion plans to go into new geographies.

Breville said in an update in early May, that it was sticking with its FY22 earnings guidance and it’s on track to meet market expectations, with earnings before interest and tax (EBIT) of approximately $156 million for FY22.

WAM continues to believe that the company operates a high-quality business and remains optimistic about the opportunities it can unlock through its global rollout strategy.

The post Why these 2 ASX 200 shares are undervalued opportunities: WAM appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy in troubled times: expert panel
• 5 things to watch on the ASX 200 on Tuesday
• 2 top growth shares experts are tipping as buys in June
• Here are the top 10 ASX shares today
• Why this rich lister is buying ASX dividend shares that ‘pay you to wait’

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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We’re coming into the final month of the Australian tax year. June 2022 could be a good month to invest in some of the S&P/ASX 200 Index (ASX: XJO) shares that experts have picked out as opportunities.

Different brokers have different opinions on various ASX 200 shares. However, when several brokers all think a business is a buy then it could be worth paying attention to that optimism. Or they could all simultaneously be wrong!

After all of the recent volatility of the ASX share market, the below two picks are highly recommended right now.

BlueScope Steel Limited (ASX: BSL)

BlueScope is a large steel business with operations in Australia and the US.

It’s currently rated as a buy by at least five brokers, including Citi. The broker has a price target of $22.50 on the business. That implies a possible rise of the BlueScope Steel share price of more than 20% over the next year. Other brokers have even more optimistic price targets.

Citi points to strong steel prices in the US which means things are looking good for potential profit generation by North Star and the North American coated business.

The Australian steel division is also benefiting from strong steel prices and better than expected contributions from the downstream businesses. However, it has seen softer than expected domestic despatch levels, due to a range of supply chain disruptions including the flooding on the east coast, rail outages, and COVID-19 impacts.

However, the ASX 200 share expects ongoing strength in raw material prices, combined with supply chain disruptions.

It now expects underlying earnings before interest and tax (EBIT) for the second half of FY22 to be in the range of $1.375 billion and $1.475 billion, which was an upgrade from the previous range of $1.2 billion to $1.35 billion.

In early trading on Tuesday, the BlueScope Steel share price is down 2% to $18.14.

CSL Limited (ASX: CSL)

CSL is one of the largest companies on the ASX. The healthcare giant provides various products including protein-based therapies and vaccines.

It’s currently rated as a buy by at least five brokers, including Citi. The broker has a price target on the business of $335, implying a potential upside of more than 20% on the current CSL share price of $274.05.

The broker points to positives that could boost the CSL share price including the acquisition of Vifor Pharma and strong demand for its products. Earlier in May, the company told investors that the regulatory approval process will take “a few more months”.

Management is still confident of completing the acquisition. It’s looking forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise.

Based on the current earnings estimates for CSL, Citi thinks the CSL share price is valued at 39x FY22’s estimated earnings and 31x FY23’s estimated earnings.

This ASX 200 share is expecting to generate net profit after tax (NPAT) in FY22 of between US$2.15 billion and $2.25 billion in constant currency terms.

The post Buy these 2 impressive ASX 200 shares in June 2022: experts appeared first on The Motley Fool Australia.

More reading

• Why is the CSL share price losing ground on Friday?
• Why I think these 3 ASX shares are top-quality buying at today’s prices
• After being stuck in the mud for 3 years, are CSL shares a buy today?
• The best 2 ASX shares money can buy right now: expert
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Barring a disastrous session on Tuesday, the Commonwealth Bank of Australia (ASX: CBA) share price looks set to beat the market in May with a modest gain.

With the CBA share price currently fetching $106.29, Australia’s largest bank’s shares are up 0.5% this month.

This compares favourably to a month-to-date decline of 3% by the ASX 200 index.

Why is CBA share price faring better than most this month?

The CBA share price was given a boost in the middle of the month when the bank’s third-quarter update impressed the market.

In case you missed it, for the three months ended 31 March, compared to the quarterly average during the first half, CBA reported a 1% decline in operating income to $6,103 million and flat cash earnings of $2,400 million.

While this may not look overly impressive on paper, it certainly was in comparison to the market’s expectations.

For example, a note out of Citi reveals that CBA’s cash earnings were 6% ahead of its expectations and 9% ahead of the analyst consensus estimate.

Upbeat commentary

Also giving the CBA share price a boost was management’s upbeat commentary with its update.

CBA’s chief executive officer, Matt Comyn, commented:

The March quarter underlined the disciplined execution of the Group’s strategy, focused on our core banking franchises, which delivered continued volume growth, sound portfolio credit quality and ongoing support for our customers and communities. [..] Looking ahead, we are well positioned to support business investment to build Australia’s future economy. Through disciplined execution of our strategic agenda, we will continue to deliver for our customers, communities and shareholders as we build tomorrow’s bank today.

Shareholders will no doubt be hoping that the CBA share price can continue outperforming during June. Time will tell if that is the case.

The post Why the CBA share price is beating the market in May appeared first on The Motley Fool Australia.

More reading

• The ANZ share price is ‘trading at its largest discount to its peers in 15 years’: Is this justified?
• What’s the outlook for ASX 200 dividend shares in the second half of 2022?
• Own Westpac shares? Here’s why the bank’s $45b super business is hitting headlines
• What’s the outlook for the CBA dividend in 2022 and 2023?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?

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 last 30 days have been bright for the Immutep Ltd (ASX: IMM) share price.

The biotechnology company’s surge followed two announcements regarding its lead product candidate, efti.

At the time of writing, the Immutep share price is 41 cents. That’s 24% higher than it was this time last month.

For context, the All Ordinaries Index (ASX: XAO) has slipped 1.3% in that time. Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) has lifted 1%.

Let’s take a closer look at what’s been driving the Immutep share price higher lately.

Immutep outperforms in May

The Immutep share price took off earlier this month when the company released biomarker and exploratory analysis findings from a study involving efti.

The company’s Phase IIb AIPAC trial evaluated efti in combination with paclitaxel chemotherapy in patients with HER2-negative or HR positive metastatic breast cancer. The results showed an increase in pharmacodynamic markers, which is linked to improved overall survival.

Immutep’s CSO and CMO Dr Frederic Triebel commented on the findings, saying:

The biomarker analysis is highly valuable for two key reasons. Firstly, the statistically significant difference in the immune response between the efti and placebo patients confirms efti is activating the immune system and helping patients live longer … Secondly, the early rise in absolute lymphocyte count in patients treated with efti provides clinicians with a potential predictor of improved survival, helping them to determine early on if continued treatment with efti is potentially beneficial.

The Immutep share price lifted 9% on the back of the release.

The second announcement from the company over the last 30 days dropped on Friday.

Then, Immutep told the market new interim data from Part A of its Phase II TACTI-002 trial had been published.

The news saw the company’s stock gain 2.5% and brokers at Wilsons retain their 91 cent price target and overweight rating on Immutep.

Immutep share price snapshot

Sadly, the Immutep share price’s strong month’s performance hasn’t been enough to boost it back into the year-to-date green.

The stock has tumbled 19.6% since the start of 2022. It’s also 41.4% lower than it was this time last year.

The post Why has the Immutep share price rocketed 24% in a month? appeared first on The Motley Fool Australia.

More reading

• 10-baggers? Expert names 2 super-cheap biotech ASX shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Oil, gas and energy prices will remain elevated in the medium term, making some ASX shares attractive for picking up now.

That’s according to a memo from the team at Wilsons, which noted energy markets were tight even before the war in Ukraine due to a lack of capital expenditure.

“Post-Ukraine, the market has become even tighter, and some of this lost production now looks as though it will be permanently removed from the global energy market,” read the Wilsons note.

“A stronger-for-longer outlook for oil and gas paints a bullish picture for energy stocks on the ASX.”

The team also likes that the energy sector has historically acted as a hedge against inflation.

Australian energy shares have also underperformed compared to their overseas peers, giving the sector further upside.

“We think this discount to global peers could be unwound over the next 12 months as companies’ and investors’ objectives become more aligned.”

So which is the stock that Wilsons analysts are the most bullish on?

‘Still one of the cheapest’ energy ASX shares

According to the memo, Santos Ltd (ASX: STO) is Wilsons’ pick if they were to choose one energy investment right now.

“Our most preferred Australian energy exposure is Santos,” read the note.

“We expect a re-rate from various catalysts over the next 12 months.”

These stock price catalysts include:

• A final investment decision on the Dorado field in Western Australia
• Potential sell-off of 15% to 51% of its asset in Alaska, USA
• Potential sell-off of about 10% of its asset in Papua New Guinea

“The sell-downs allow STO to deleverage and implement its new capital management strategy,” read the memo.

“This should substantially increase the capacity for further capital management over the next 12 months.”

The Santos share price is already up 24% so far this year, while also paying out a 2.38% dividend yield.

Despite the recent gains, Wilsons analysts are convinced there is “significant upside” if oil prices remain high.

“Santos is still one of the cheapest large cap energy stocks on the ASX – Santos is trading with the lowest implied oil price at US$63/bbl.”

The post Want to invest in energy? This is ‘our most preferred’ ASX share: Wilsons appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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