Tag: Motley Fool

  • Here’s why the AVZ Minerals share price caused such a stir in May

    A young woman lifts her glasses with one hand as if to take a closer look at something as she has a look of surprised interest on her face with her mouth in an O shape.

    A young woman lifts her glasses with one hand as if to take a closer look at something as she has a look of surprised interest on her face with her mouth in an O shape.

    AVZ Minerals Ltd (ASX: AVZ) has been among the headlines frequently in May.

    That’s despite the AVZ share price spending most of the month either in a trading halt or suspension.

    What’s going on with the AVZ share price this month?

    At the start of the month, the AVZ share price was paused pending the release of an announcement.

    That announcement came and revealed to much delight that the Democratic Republic of the Congo’s Minister of Mines has signed the ministerial decree to award the mining licence for the Manono Lithium and Tin Project.

    However, at the bottom of this milestone announcement was a bombshell which rocked the AVZ share price and has resulted in its suspension.

    What was the bombshell?

    The aforementioned mining licence has been awarded, as expected, to Dathcom Mining. This is a joint venture of which AVZ is currently the majority owner with a 75% interest.

    The key word there is currently. There are concerns that the company could soon go from being the majority owner to just a minor owner of the project.

    This follows news that AVZ has been hit with arbitration proceedings by Jin Cheng Mining Company in the International Chamber of Commerce in Paris (ICC). It is seeking to be recognised as a shareholder of Dathcom Mining SA.

    This would have obvious consequences for the valuation of the AVZ share price, hence why it is suspended currently.

    What ownership outcomes exist?

    At best, AVZ will end up owning a 66% stake in the project. This would be the result of its agreement to sell 24% to Suzhou CATH Energy Technologies for a US$240 million investment and acquiring 15% from La Congolaise D’Exploitation Miniere SA (Cominiere), which it believes it is entitled to.

    At worst, AVZ will own only 36% of the project. This would reflect the sale to Suzhou CATH Energy Technologies, the potential failure to acquire 15% from Cominiere, and the potential loss of 15% to Jin Cheng.

    The AVZ share price is scheduled to return to trade on 1 June. However, given how long legal challenges can last, I wouldn’t be surprised to see its suspension extended further.

    The post Here’s why the AVZ Minerals share price caused such a stir in May appeared first on The Motley Fool Australia.

    Should you invest $1,000 in AVZ right now?

    Before you consider AVZ, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/J0UW1eO

  • 2 ASX shares experts think have sold off too much

    A man in a business suit wearing boxing gloves slumps in the corner of a boxing ring representing the beaten-up Zip share price in recent timesA man in a business suit wearing boxing gloves slumps in the corner of a boxing ring representing the beaten-up Zip share price in recent times

    It’s shocking enough the S&P/ASX 200 Index (ASX: XJO) has sunk 5.8% so far this year.

    But with mining and financial shares dragging the index up, there are hundreds of ASX shares that have fallen far more than that.

    Some former market darlings, especially ASX growth stocks, have seen their valuations halve, if not worse.

    But are we now at a point where some of those businesses have been punished too much? Perhaps the stock price has lost all sense of the company’s outlook?  

    A couple of experts recently each picked out an ASX share they think are in that position and are ripe to buy right now:

    ‘Unjustly’ sold off

    To Montgomery Investment Management portfolio manager Gary Rollo, Symbio Holdings Ltd (ASX: SYM) looks way too cheap at the moment.

    The software maker has seen its share price plunge 38.7% this calendar year.

    “It’s been sold off so hard because the comparators, the overseas players that do what it does, they’re at a different stage in their life cycle than the Symbio is,” Rollo told a Livewire video.

    “So this business has had its valuation regime adjusted, I think unjustly, without reflecting on the fundamentals.”

    Rollo doesn’t detect any change to the business or its outlook compared to before the stock price fall.

    “It’s a $350 million market cap. It’s got $50 million of cash on the balance sheet, so we don’t have a capital structure question,” he said.

    “It’s on 8.5 to 9 times EBITDA [earnings before interest, tax, depreciation, and amortisation]… so it doesn’t have a valuation question.”

    Symbio’s hot growth opportunity is in Asia and that hasn’t diminished.

    “But you’re not paying for it and so we like the look of that and that’s our tip for now.” 

    ‘Capital-light, high growth’ business

    QVG Capital portfolio manager Josh Clark picked Johns Lyng Group Ltd (ASX: JLG) as a current bargain.

    Johns Lyng shares have fallen a shocking 37.5% just this month.

    “Yeah, absolutely it’s been sold off, [from] the $9 range into the mid-$5s or thereabouts, so the valuation’s actually starting to look much more compelling.”

    As a service provider to insurance companies, Johns Lyng was recognised by the market as a star in recent years.

    Clark admits that did make the ASX share expensive before May started.

    “But they haven’t seen a change to their earnings. They’re still going to hit their earnings guidance,” he said.

    “I think part of the sell-off is the market’s having a bit of a hissy fit that there’s no upgrade near term… Also management has sold some stock.”

    Clark urged investors to look past the recent share price movements.

    “If you focus too much on that, you’re missing the forest for the trees,” he said.

    “It’s still a really capital-light, high growth services business. I’ve said this a lot, but owner, founder-led, which is really important and these guys have just got more irons in the fire than you can count.”

    The post 2 ASX shares experts think have sold off too much appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Tony Yoo has positions in Johns Lyng Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group Limited and Symbio Holdings Limited. The Motley Fool Australia has positions in and has recommended Symbio Holdings Limited. The Motley Fool Australia has recommended Johns Lyng Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    from The Motley Fool Australia https://ift.tt/lg0Bw8F

  • Here are 2 top ASX dividend shares to buy according to analysts

    A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend

    A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend

    If you’re wanting to add some ASX dividend shares to your portfolio, then it could be worth considering the two listed below.

    Here’s why analysts think they could be top options for income investors:

    National Australia Bank Ltd (ASX: NAB)

    The first ASX dividend share to look at is banking giant, NAB.

    Analysts at Goldman Sachs are very positive on the bank and have named it their top big four pick. This is due partly to NAB’s balance sheet mix, which Goldman feels provides the best exposure to the domestic system growth. The broker also highlights that NAB’s franchise is performing strongly and growing at or above system growth in most segments.

    It is expecting this to underpin attractive dividends in the coming years. Goldman is forecasting fully franked dividends of $1.50 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current NAB share price of $31.68, this implies yields of 4.7% and 5.1%, respectively.

    Goldman has a conviction buy rating and $34.17 price target on the bank’s shares.

    Transurban Group (ASX: TCL)

    Another ASX dividend share to look at is Transurban. It is a leading toll road operator with a portfolio of important roads across Australia and North America. The company also has a number of projects under development that look set to support its long term growth.

    Analysts at Morgans are positive on Transurban due to its exposure to regional population and employment growth and urbanisation. The broker also believes that with traffic volumes recovering nicely from the pandemic, its dividends will make a quick recovery.

    As a result, its analysts are forecasting dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price of $14.39, this implies yields of 2.6% and 4.2%, respectively.

    Morgans has an add rating and $14.42 price target on its shares at present.

    The post Here are 2 top ASX dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/TFG3Msn

  • 5 things to watch on the ASX 200 on Monday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Friday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher. The benchmark index rose 1.1% to 7,182.7 points.

    Will the market be able to build on this on Monday? Here are five things to watch:

    ASX 200 expected to jump

    The Australian share market looks set to start the week with a strong gain following a very positive night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 83 points or 1.15% higher this morning. On Wall Street, the Dow Jones was up 1.75%, the S&P 500 climbed 2.5%, and the Nasdaq stormed 3.3%. Slowing US inflation boosted investor sentiment.

    Oil prices rise

    Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a positive start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1% to US$115.07 a barrel and the Brent crude oil price climbed 1.7% to US$119.43 a barrel. A potential outright ban on Russian oil boosted prices.

    AGL demerger on the rocks?

    The AGL Energy Limited (ASX: AGL) share price will be on watch this morning amid speculation that the energy giant’s demerger could be scrapped. It is believed that this could also see AGL announce the exit of its chief executive officer, Graeme Hunt, this morning.

    Gold price rises

    Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price traded edged higher on Friday night. According to CNBC, the spot gold price is up 0.2% to US$1,857.3 an ounce. A softer US dollar supported the precious metal, taking it to its second successive weekly gain.

    Tech shares on watch

    It looks set to be a great day of trade for the local tech sector after the tech-focused Nasdaq index surged 3.3% higher on Friday night. Investors were scrambling to buy tech shares after data showed that US inflation is slowing. This bodes well for tech favourites such as Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) this morning.

    The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/8ptuBHK

  • Top brokers name 3 ASX shares to buy next week

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Codan Limited (ASX: CDA)

    According to a note out of Macquarie, its analysts have retained their outperform rating and $11.60 price target on this metal detector focused technology company’s shares. This follows the release of a trading update which revealed that it expects to report a record profit of $100 million in FY 2022. This was in line with the broker’s forecasts. Outside this, Macquarie feels that solid results from recently acquired businesses could boost confidence in future M&A optionality. The Codan share price ended the week at $7.87.

    Endeavour Group Ltd (ASX: EDV)

    A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $8.10 price target on this drinks giant’s shares. This follows an investor day update which revealed the company’s growth plans. This includes an increase in its growth capex to fund store expansions, hotel acquisitions, and its digital business. Goldman was pleased with its plans and is comfortable that the company’s balance sheet can fund this increased capex obligation. The Endeavour share price was fetching $7.25 at Friday’s close.

    Pilbara Minerals Ltd (ASX: PLS)

    Another note out of Macquarie reveals that its analysts have retained their outperform rating and $4.00 price target on this lithium miner’s shares. This follows the results of Pilbara Minerals’ fifth BMX auction. Macquarie notes that the auction received a winning bid of US$5,955 per dry metric tonne, which was well-ahead of its forecasts. In addition, Macquarie highlights that current lithium prices are significantly higher than its forecasts, which could mean major revisions to its earnings estimates if they don’t retreat. The Pilbara Minerals share price was trading at $2.91 at the end of the week.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/d5gOLVa

  • Analysts name 2 ASX dividend shares to buy with 5% yields

    Couple counting out money

    Couple counting out money

    If you’re looking to boost your income portfolio with some new dividend shares next week, then the two listed below could be worth considering.

    Here’s why analysts are positive on these dividend shares right now:

    Centuria Industrial Reit (ASX: CIP)

    The first buy-rated ASX dividend share to look at is Centuria Industrial.

    Thanks to strong demand for industrial property, Centuria Industrial has been growing its rental income and funds from operations (FFO) strongly in recent years. Pleasingly, this continued during the first half of FY 2022, with the company reporting further strong growth.

    Macquarie is positive on the company’s outlook thanks to ongoing demand for these properties. It currently has an outperform rating and $4.27 price target on the company’s shares.

    As for dividends, Macquarie is forecasting dividends per share of 17.3 cents in FY 2022 and then 17.8 cents in FY 2023. Based on the current Centuria Industrial REIT share price of $3.38, this will mean yields of 5.1% and 5.3%, respectively.

    Charter Hall Social Infrastructure REIT (ASX: CQE)

    Another first ASX dividend share that could be in the buy zone is the Charter Hall Social Infrastructure REIT.

    It is a real estate investment trust that invests in social infrastructure properties. These include properties such as bus depots, police and justice services facilities, and childcare centres.

    Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT, highlighting its solid like for like rental growth and 100% occupancy rate during the first half. Another positive is its lengthy leases, with the REIT boasting a weighted average lease expiry of 14.6 years. This provides good visibility on its future earnings and dividends.

    The broker currently has a conviction buy rating and $4.20 price target on its shares and is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.57, this implies yields of 4.8% and 5.1%, respectively.

    The post Analysts name 2 ASX dividend shares to buy with 5% yields appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

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

  • 2 ASX shares I think are great long-term buys

    Dollar sign made from grass growing from ground as one person drips water on it and another holds coin

    Dollar sign made from grass growing from ground as one person drips water on it and another holds coin

    There are a handful of ASX shares that I think would make excellent buys to hold for the long term.

    Companies with long-term growth plans and large potential markets can generally produce good compound returns over the coming years, in my opinion.

    I believe those elements together with recent share price volatility make the two ASX shares below even more attractive. Let’s take a closer look.

    Volpara Health Technologies Ltd (ASX: VHT)

    Volpara is an ASX healthcare share that has seen a hefty decline since the beginning of the year, but its FY22 result showed a lot of progress.

    The company points out that breast cancer screening presents a “significant opportunity” for the business. There are 92 million women screened globally each year, with 39 million in the United States. Volpara has reached a market share of 35.5% of US women having a Volpara product used on their images and data, compared to 32% in FY21.

    There are plenty of other metrics that make this company a great long-term investment, in my opinion. Its average revenue per user (ARPU) continues to climb. ARPU was US$1.40 in FY21 and grew to US$1.51 in FY22. Growth here can be achieved by selling more modules to more clients.

    Volpara’s subscription revenue rose by 37% year on year to NZ$24.8 million over the year. It came with a gross profit margin of 91%, which allows the business to invest that growth profit into growth areas of the business growth such as marketing and research and development.

    One focus for the ASX share in FY23 is to expand its total addressable market, which could help lengthen the company’s long-term growth runway.

    Bailador Technology Investments Ltd (ASX: BTI)

    Bailador describes itself as a growth capital fund that is focused on the IT sector, actively managed by “an experienced team with demonstrated sector experience.”

    It aims to provide exposure to a portfolio of IT companies that have global addressable markets. Bailador invests in private technology companies at the expansion stage.

    Some of its investments include Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), InstantScripts, Nosto and Mosh.

    Typically, it’s looking for businesses that are run by the founders, have been in operation for two to six years, have a proven business model with attractive unit economics, international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

    Some of the types of areas the ASX share likes to look at include subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telecommunication appliances and services.

    I think it could be a good opportunity because of the long-term investment approach it takes with its holdings, which themselves are attractive long-term businesses.

    At the end of April 2022, it had net tangible assets (NTA) per share (pre-tax) of $1.99. The current Bailador share price of $1.36 at Friday’s close is at an attractive discount to that NTA level.

    These factors are why I think the underlying portfolio is likely to continue to perform well over the coming years, particularly starting at this lower valuation of the Bailador share price.

    The post 2 ASX shares I think are great long-term buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Bailador Technology Investments Limited and VOLPARA FPO NZ. The Motley Fool Australia has positions in and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    from The Motley Fool Australia https://ift.tt/q7dMQNW

  • Why we’re still buying ASX 200 shares that are ‘high emitters’: fundie

    A Santos oil and gas company employee stands in a field looking at an ipad with an oil rig in the background and grey skies above representing carbon in the atmosphere

    A Santos oil and gas company employee stands in a field looking at an ipad with an oil rig in the background and grey skies above representing carbon in the atmosphere

    S&P/ASX 200 Index (ASX: XJO) shares are under increasing pressure to reduce their emissions to help mitigate global warming.

    ASX 200 shares that are seen to be high emitters tend to be left off the investment lists of environmental, social, and corporate governance (ESG) focused retail investors and funds.

    But this year Russia’s invasion of Ukraine, and the resulting boycotts of Russian oil, gas and coal, have demonstrated how reliant the world still is on fossil fuels.

    While European nations have led the global charge in championing renewable energy, many are finding it could take several years to wean themselves off Russia’s fossil fuels.

    Meanwhile, here in Australia, the newly elected Labor government has more ambitious emissions reduction targets than the outgoing Coalition, putting additional pressure on ASX 200 shares to do more on the environmental front.

    A big opportunity for ASX 200 shares

    Addressing the Labor government’s more ambitious 2030 emissions targets, David Gilmour, portfolio analyst & ESG specialist at Yarra Capital Management, said that this presents “the largest opportunity on our pathway to net zero emissions: making dirty cleaner”.

    “For too long, sustainability investment has centred on future facing industries, like renewables, and blatantly ignored the dirtiest industries,” he said. “The focus has been on the cure to emissions, with no consideration to prevention. Divestment has been the weapon of choice.”

    With the electricity sector in the United States only accounting for about a third of emissions, Goldman Sachs believes the biggest cuts by 2030 will be delivered by oil and gas producers, diversified metals and mining, and aluminium, where you’ll find few ESG investors holding shares.

    According to Gilmour:

    Domestically it’s a similar story. Like the US, Australia’s electricity sector only accounts for around 30% of total emissions. Labor’s new target for a 43% reduction on emissions to 2030 (based on 2005 levels) will require substantive efforts from industry and transport.

    He added that “the electricity sector is already stretched to its limit with a forecast 49% reduction by 2030 from today’s levels.”

    Without additional cuts from the electricity sector, Labor will need to achieve a 22% reduction in emissions from other sources to achieve its target. That compares to the Coalition’s former forecast for a 1% increase.

    The case for investing in these ‘dirty’ shares

    Which brings us to 3 ‘dirty’ ASX 200 shares Yarra holds positions in.

    Noting that Yarra supports Labor’s proposal to strengthen the existing Safeguard Mechanism, Gilmour said, “Investors must also play an important role. We believe strongly in company engagement over exclusion; the former can lead to outperformance, while the latter shifts ownership to parts of the market with less oversight and deprives companies of capital when they need it most.”

    He said this was the reason Yarra was invested in ASX 200 shares unlikely to top the list of ESG investors, like Alumina Limited (ASX: AWC) and Worley Ltd (ASX: WOR).

    According to Gilmour:

    That’s why we are shareholders in high emitters such as Alumina, a company with a harder pathway to net zero but has the capability to benefit from the transition. AWC is already among the lowest emitters among major alumina producers, is pursuing early-stage technologies and is a clear beneficiary of green capex given the expected growth in demand for aluminium (39% demand growth to 2030).

    We are also overweight on Worley, which is well positioned to capture higher structural demand from energy transition work over and above its traditional work for the oil & gas industry.

    The recently rebranded ASX 200 energy share, Woodside Energy Group Ltd (ASX: WDS), also makes the cut.

    “Early this year we established a position in Woodside Petroleum (WPL), a company which predominantly produces gas and has a new strategy to invest $US5bn in new energy opportunities by 2030,” Gilmour said.

    “Our focus remains on working with management to strengthen its 2030 interim target and lower its reliance on offsets,” he added.

    Some food for thought for ESG investors running their slide rules across potential ASX 200 shares.

    The post Why we’re still buying ASX 200 shares that are ‘high emitters’: fundie appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/2yrYBv0

  • Why I think these two ASX shares could turn $5,000 into $100,000

    A woman uses her mobile phone to make a purchase.A woman uses her mobile phone to make a purchase.

    I’m a big believer in investing in emerging ASX growth shares for the medium term.

    For example, if you had picked up Vulcan Energy Resources Ltd (ASX: VUL) shares two years ago, you’d be up more than 2,500%. That means an initial $5,000 investment would have given you a total return of more than $133,000.

    Show me a property or term deposit that can give you a return of 20x in just two short years.

    Of course, companies like Vulcan Energy only come around so often. However, the idea is to monitor the share market news and look into ASX shares that present strong growth potential.

    If you can identify the right emerging ASX growth share, it could possibly be worth a fortune down the track.

    Below, I’ve chosen two ASX shares that I think investing $5,000 now can turn into $100,000 within the next five years. Big call. Let’s take a look.

    Argosy Minerals Ltd (ASX: AGY)

    Argosy is a mining and exploration company with a 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina. The flagship mine is situated within the ‘lithium triangle’ – the world’s dominant lithium production source.

    The company also wholly owns and operates the Tonopah Lithium Project in Nevada, United States.

    Argosy has been creating tailwinds over the past few months as construction at the Rincon Project nears completion.

    With its first production of lithium carbonate product expected in the next quarter, this will be sold to domestic customers in Argentina.

    The hype around the lithium space has continued to surge with investors taking notice of the incredible gains made so far.

    Argosy is progressing towards the next stage of ramping up its modular 2,000 tonne per annum (tpa) operation to 12,000tpa.

    The company’s shares are up almost 400% over the past 12 months after finishing 3.57% higher to 43.5 cents yesterday.

    The promising lithium mining company has a market capitalisation of just $541.90 million.

    In comparison, investor favourite Pilbara Minerals Ltd (ASX: PLS) has a market capitalisation of $8.25 billion.

    If Argosy can reach those levels, then shareholders could be expecting returns of around 15x from where it trades today.

    BrainChip Holdings Ltd (ASX: BRN)

    BrainChip develops software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications. The company’s primary focus is its Akida neuromorphic processor unit hardware product.

    In layman’s terms, the Akida chip thinks like a human brain and can be used globally in a variety of purposes.

    I think BrainChip has huge potential to materially grow in the future, particularly given its partnership with NASA. This is due to its advanced Akida chip which could offer huge advantages for NASA’s future space missions.

    Cutting-edge technology mixed with insatiable demand is an investor’s dream, in my opinion.

    Valued at $1.97 billion, BrainChip is still a relatively emerging company that is looking to dominate the AI market.

    While the BrainChip share price has been volatile, it’s up 90% since this time last year.

    In January, the company’s shares soared to an all-time high of $2.34 before profit-takers swooped in.

    Should BrainChip be able to deliver on its potential, I think its share price is extremely attractive at the price of $1.06 apiece.

    Remember Foolish readers, investing requires immense discipline and patience.

    The post Why I think these two ASX shares could turn $5,000 into $100,000 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in ASX growth shares right now?

    Before you consider ASX growth shares, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ASX growth shares wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

    from The Motley Fool Australia https://ift.tt/PunUfg0

  • 3 fantastic ETFs for ASX investors to buy next week

    ETF written in blue with a man and woman sitting on their laptops.

    ETF written in blue with a man and woman sitting on their laptops.

    There are a lot of exchange traded funds (ETFs) funds out there for investors to choose from.

    Three quality ETFs that you may want to look deeper into are listed below. Here’s what you need to know about them:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The BetaShares Asia Technology Tigers ETF has come under significant pressure this year due to weakness in the tech sector and concerns about extended lockdowns in China. And while it is unclear if it has reached a bottom yet, the risk-reward on offer for long-term investors appears very attractive at the current level. Particularly given the quality of the companies in the ETF. This includes the leaders of the Asian technological revolution, such as Alibaba, Baidu, JD.com, Pinduoduo, and Tencent.

    BetaShares Crypto Innovators ETF (ASX: CRYP)

    Another quality ETF to look at is the BetaShares Crypto Innovators ETF. It has also come under pressure this year due to weakness in the tech sector and crypto market. And once again, while it’s impossible to know if the selloff is over, investors with a long-term focus may do very well from this high risk ETF. Especially if you believe that cryptocurrencies are going to change the world. That’s because this ETF gives investors access to the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes the likes of Coinbase, Silvergate, and Riot Blockchain.

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    At the other end of the risk scale is the Vanguard MSCI Index International Shares ETF. It could be a top option for investors looking for a low risk way to diversify their portfolio. That’s because this popular ETF provides investors with exposure to a massive ~1,500 of the world’s largest listed companies. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

    The post 3 fantastic ETFs for ASX investors to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Betashares Crypto Innovators ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    from The Motley Fool Australia https://ift.tt/b5Gqwsc