Tag: Motley Fool

  • EMvision share price rockets 11% on $5 million pay day

    A smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the EMvision share price risingA smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the EMvision share price rising

    The EMvision Medical Devices Ltd (ASX: EMV) share price rocketed today following news that the Australian Government will give the ASX company a multi-million dollar manufacturing grant.

    Shares in the Australian medical device company finished the session at $1.82, up 5.2%. Earlier, the EMvision share price reached an intraday high of $1.92 — up 10.98%.

    By comparison, the All Ordinaries Index (ASX: XAO) also travelled higher today to 7,426 points — up 1.03%.

    EMvision receives Modern Manufacturing Initiative Grant

    ASX investors snapped up EMvision shares on news today that the company has been successful in its application for the grant.

    According to a market release, the Department of Industry, Science, Energy and Resources has awarded EMvision a Modern Manufacturing Initiative (MMI) grant.

    Under the MMI Manufacturing Translation Stream program, EMvision will receive $5 million of non-dilutive cash funding.

    This program provides businesses with funds to support projects, adopt new technologies, and improve manufacturing processes. EMvision stated that the grant is a matched funding program and remains subject to agreeing documentation and terms.

    EMvision has not provided any details on how the company will use the funds. Management said it will advise the details in due course.

    The company is developing a portable brain scanner to diagnose and monitor strokes in patients.

    The department will contact EMvision to discuss the next steps.

    EMvision share price summary

    Although the EMvision share price accelerated today, it has been on a downhill trend. The shares have lost 37% over the past 12 months and are down 31% year to date.

    On valuation grounds, EMvision has a market capitalisation of roughly $133.95 million.

    The post EMvision share price rockets 11% on $5 million pay day appeared first on The Motley Fool Australia.

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

    Before you consider EMvision, 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 EMvision 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

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

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  • Why did the Dubber share price push 18% higher today?

    Shares of Dubber Corp Ltd (ASX: DUB) have surged 18.28% at the close of trading on Wednesday and are now fetching $1.10 apiece.

    The gain brings Dubber’s gain over the past five days of trade to 20.8% after shares bounced off a 52-week closing low of 91 cents apiece.

    What’s up with the Dubber share price?

    There’s been no price-sensitive news from Dubber since the cloud-based software as a service (SaaS) provider released its quarterly activities report in April, so let’s look at the bigger picture.

    Dubber shares have been sold off heavily since the beginning of the year with those still holding the stock realising a 60% loss in that time.

    However, the downward trend had been in situ for some time, as the share price had tumbled from a 52-week closing high of $4.26, bringing the total drawdown now to 74% from that point.

    Needless to say, Dubber’s downturn has been consistent with the moves in the wider tech sector, as the S&P/ASX All Technology index (ASX: XTX) has also crumbled 29% lower in 2022.

    Dubber appears to track the tech index closely, with only a minimal divergence seen in March thus far in 2022, as seen on the chart below.

    TradingView Chart

    It wouldn’t come as much surprise, therefore, to see Dubber’s share price begin to lift alongside the tech index’s 8% gain since 12 May.

    As the sector continues strengthening so too has Dubber’s share price. Although, that’s not to suggest the correlation is the only cause of Dubber’s spike.

    Meanwhile, investors continue bidding up shares in the company on a volume of 168% that of its 4-week average.

    Zooming out, and the Dubber share price has slipped 61% into the red over the last 12 months of trade.

    The post Why did the Dubber share price push 18% higher today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Dubber Corporation right now?

    Before you consider Dubber Corporation, 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 Dubber Corporation 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

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

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  • Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022?

    A man raises his reading glasses in a look of surprise.A man raises his reading glasses in a look of surprise.

    The Bank of Queensland Limited (ASX: BOQ) share price has had a rough start to 2022.

    It’s currently 9.6% lower than it was at the start of the year. As of Wednesday’s close, the Bank of Queensland share price is $7.52.

    For comparison, the S&P/ASX 200 Index (ASX: XJO) has slumped 5.4% year to date while the S&P/ASX 200 Financials Index (ASX: XFJ) is down just 0.8%.

    But one broker is predicting big things to come for the bank’s stock. Let’s take a look.

    Could the Bank of Queensland share price reach $11?

    The future is bright for the Bank of Queensland’s stock, according to one Aussie broker.

    That’s right, Morgans believes the Bank of Queensland share price could have a 45% upside, as The Motley Fool Australia’s James Mickleboro reported last week.

    The broker believes the stock is a good entry point for would-be ASX bank investors due to the company’s recent acquisition of ME Bank.

    In fact, it noted the cost synergies born from the acquisition are coming to fruition faster than expected. It’s also impressed by the company’s ongoing transformation.

    On the back of its positive sentiment, Morgans has slapped Bank of Queensland’s stock with a price target of $11, reports Mickleboro. That suggests a 46% upside on the stock’s current value.

    On top of that, the broker expects the bank will pay out 49 cents in dividends in financial year 2022.

    That would see the Bank of Queensland trading with a 6.5% dividend yield at its current share price.

    However, if the broker’s share price prediction proves accurate, 49 cents of dividends over 12 months would leave it with an entirely decent 4.45% dividend yield.

    The bank has already agreed to provide a 22-cent dividend for the first half of this financial year.

    Morgans also expects the bank’s dividends to increase to 54 cents in financial year 2023.

    The post Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bank of Queensland right now?

    Before you consider Bank of Queensland, 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 Bank of Queensland 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

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    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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  • Do Vulcan Energy shares pay dividends?

    A boy in a green shirt holds up his hands in front of a screen full of question marks.

    A boy in a green shirt holds up his hands in front of a screen full of question marks.

    Of all of the ASX lithium stocks on our share market, Vulcan Energy Resources Ltd (ASX: VUL) has certainly become one of the most popular. That tends to be what happens when a company goes from 20 cents a share (in 2020) to a high of $16.65 (September 2021), giving investors a return of over 8,000% in the process.

    Today, Vulcan Energy shares have fallen away from the stupendous highs we saw last year. The company closed at $7.47 a share today.

    But now that the company has stopped breaking new all-time highs, it might be a good time to ask some questions of this ASX lithium stock. So let’s go with ‘Do Vulcan Energy shares pay dividends?’.

    Do Vulcan Energy shares pay out dividends?

    Many ASX mining and resources companies on our share market pay dividends. Heck, some, like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG), are famous for it. But that reputation does not extend to ASX lithium stocks. As we covered earlier this week, there aren’t too many ASX lithium stocks that even pay dividends. So is Vulcan Energy one of the lucky few?

    Well, sadly no. Vulcan Energy shares do not currently pay a dividend. And nor have they ever.

    What’s more, a quick look at the company’s books indicates that a dividend probably won’t happen anytime soon either. Its recently released quarterly cash flow report covering the three months to 31 March 2022 shows that Vulcan Energy’s net cash from operating activities was a loss of just over three million euros. For a company to be able to fund a dividend, it usually needs to be comfortably profitable and cash flow positive first.

    So it looks as though income investors will have to wait at least a little longer to see a dividend come out of Vulcan Energy Resources shares.

    The post Do Vulcan Energy shares pay dividends? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vulcan Energy right now?

    Before you consider Vulcan Energy, 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 Vulcan Energy 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

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    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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  • Why did this ASX nickel share surge 23% today?

    Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.

    The ASX nickel share Nico Resources Ltd (ASX: NC1) share price has spiked into the green today, peaking 23.68% higher in afternoon trade. Nico shares closed trading on Wednesday 15.79% higher at $1.10.

    While there’s been no news from the $86.4 million company by market value today, its share price has surged 452% this year. Nico Resources first listed in mid-January.

    A quick refresher on ASX nickel share Nico Resources

    Nico is a mineral exploration and development company. It aims to grow and create value through development of mineral resource projects throughout Western Australia and South Australia.

    Earlier in the year, Nico completed the purchase of a nickel asset portfolio. This was pursuant to a share sale and subscription agreement with Metals X Limited (ASX: MLX).

    The acquisition gave the company a 100% legal and beneficial interest in the Wingellina and Claude Hills nickel projects located in WA and SA respectively.

    Nico Resources is also 15% owned by Blackstone Resources Ltd (ASX: BSX).

    Nickel still top-heavy

    The price of nickel turned sharply in mid-March and has been softening ever since. It’s currently down more than 20% in the last month.

    However, the nickel price still remains up 46% for the last 12 months. The surge comes amid tensions in Europe and a lumpy outlook for steel production out of China.

    Moreover, the enormous spike in nickel – where prices thrust past US$48,000 per tonne – occurred after a short squeeze on the industrial metal, not unlike that seen in the Gamestop saga.

    The spike was due to fears of a supply shock from Russia, one of the world’s top nickel producers. However, fears were soon calmed once traders regained control of the market and with the intervention of the London Metals Exchange (LME). It now trades at US$26,328 per tonne.

    Nevertheless, prices remain top-heavy, especially considering supply woes haven’t been completely squashed. That’s amid weaker than expected economic data from China this week which has hurt the outlook for steel production. Nickel is a key ingredient in the production of stainless steel.

    With that outlook, nickel players like Nico Resources are in a good position to benefit from the longer-term trend in the underlying market.

    Nico Resources share price summary

    Shares in Nico shot to fame early on, first exhibiting a gradual climb northward. The ASX nickel share spiked hard in March and then again in April.

    On the latter occasion, the company released an investor presentation outlining its value proposition and upcoming projections.

    The market for nickel remained strong in April, and investors no doubt were responsive to the company’s investor presentation given the reaction.

    Shares shot to a high of $1.72 before turning sharply to eventually find a bottom at the 89.5 cent mark on Monday.

    They’ve since rallied hard again and are now trading 23% higher to current levels.

    The post Why did this ASX nickel share surge 23% today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Nico Resources right now?

    Before you consider Nico Resources, 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 Nico Resources 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 Zach Bristow 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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  • 2 beaten down ASX tech shares analysts say have major upside potential

    A hand hovers over a laptopn sparkling with tech symbols, indicating ASX technology shares

    A hand hovers over a laptopn sparkling with tech symbols, indicating ASX technology sharesAre you interested in adding some ASX tech shares to your portfolio after the market selloff?

    Two ASX tech shares that could be worth considering are listed below. Here’s why analysts are positive on them:

    Life360 Inc (ASX: 360)

    The first ASX tech share to look at is Life360. This growing technology company is responsible for the Life360 mobile app, which is a market leading app for families.

    It has been growing at a rapid rate in recent years and has continued this positive trend in FY 2022. During the first quarter, the company revealed that its global monthly active users reached 38.3 million at the end of March. This was up 36% year on year and underpinned a 73% increase in annualised monthly revenue to US$166.1 million.

    And while it continues to operate at a loss, analysts at Bell Potter believe investors should look beyond this. Particularly given its hefty cash balance and plans to be cash flow positive in 2023.

    It is for this reason that the broker believes the Life360 share price has been oversold.

    The broker said: “[Life360] remains a key pick and we believe has been oversold as, despite currently being loss making, has ample cash to fund it through to cash flow breakeven or positive in 2023 or 2024 while maintaining strong top line revenue growth and realising the synergy benefits from the recent Tile acquisition.”

    Bell Potter has a buy rating and $7.50 price target on its shares. This implies potential upside of over 100%.

    Xero Limited (ASX: XRO)

    Another ASX tech share that has been sold off is Xero. The leading cloud-based business and accounting software provider’s shares are down 40% since the start of the year due to weakness in the tech sector.

    While this is disappointing, analysts at Goldman Sachs believe this could be a buying opportunity for long term focused investors. Particularly given its view that Xero is a “compelling global growth story” with potential for multi-decade strong growth.

    Goldman Sachs recently reiterated its buy rating on its shares with a $118.00 price target. This suggest potential upside of 34% for investors over the next 12 months.

    The post 2 beaten down ASX tech shares analysts say have major upside potential 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

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    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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  • Why is the Medibank share price struggling to gain ground in May?

    retirement investing represented by older investor looking concerned at computer screenretirement investing represented by older investor looking concerned at computer screen

    The Medibank Private Ltd (ASX: MPL) share price has failed to make a move in the past three weeks.

    Despite the company delivering a positive update at the Macquarie Australia Conference earlier this month, Medibank shares are travelling sideways.

    For the recent period, Medibank shares are fetching just one cent more than they did at market close on 29 April.

    Today, the private health insurance company’s shares closed at $3.21, down 0.93% for the day.

    What’s happened to the Medibank share price in May?

    Amid recent broader market weakness, the Medibank share price has been weighed down regardless of the company reaffirming its FY22 outlook.

    Management noted in its latest presentation that private health insurance participation growth remains strong. This is due to more people continuing to prioritise their health and wellbeing, the company said.

    Notably, Medibank Private has recorded six consecutive quarters of industry policyholder growth.

    New-to-industry and younger groups are becoming major contributors to growth which are positive signs for industry sustainability.

    Medibank stated it’s on track to achieve 3.1% to 3.3% of policyholder growth in FY22.

    Furthermore, the underlying average net claims expense per policy unit is forecast to be around 2.3% among resident policyholders.

    The company advised it will deliver $15 million in productivity savings. In total, management expenses are predicted to come in at roughly $530 million for the full year.

    Is this a buying opportunity?

    One broker weighed in on the Medibank share price at the start of this month.

    The team at Macquarie cut its 12-month price target by 1.5 % to $3.20 for Medibank shares.

    It appears analysts have a similar view to investors’ perceived value of the company’s shares.

    Looking further back, Citi has the most bullish outlook for the private health insurer’s shares, upgrading them to a buy.

    The broker also raised its rating by 4.3% to $3.65 per share following the company’s half year results.

    Based on today’s price, this implies a potential upside of around 13.7%.

    The post Why is the Medibank share price struggling to gain ground in May? appeared first on The Motley Fool Australia.

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

    Before you consider Medibank, 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 Medibank 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 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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  • Why I think the EML share price is a long-term buy

    A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.

    A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.

    After a heavy fall in the EML Payments Ltd (ASX: EML) share price, I think it’s looking like good value for the long term.

    Since the start of 2022, EML shares have fallen by around 55%. Since the end of April 2021, EML has fallen by more than 70%.

    Neverthless, I think the business looks compelling for the long term at its current valuation.

    What’s going on with the EML share price?

    There may have been (at least) three different factors that have led to the decline of the EML share price.

    A while ago, there was a major concern that the Central Bank of Ireland (CBI) was going to significantly limit the growth potential of EML in Europe amid anti-money laundering and counter-terrorism financing concerns.

    Next, there has been intense market focus on the rise of global inflation, leading to worries about how strongly central banks around the world will have to respond to bring it under control. This has triggered plenty of volatility for investors to contend with.

    The final thing is what investors may have seen as a negative, that is, the company’s recent update for the period to 31 March 2022.

    EML said that while revenue was up 21% to $59.8 million, profitability didn’t do as well.

    Quarterly gross profit only went up 17% to $42.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 14% to $13.6 million and underlying net profit after tax (NPATA) dropped 22% to $8.1 million.

    This meant that in the FY22 year to date, operating profit was now lower than the prior corresponding period (pcp). Underlying EBITDA fell 8% to $40.3 million and underlying NPATA declined 7% to $21.2 million.

    So, there have been reasons for some investors to be negative in recent times.

    But I think the long-term positives can really outweigh the negatives on the EML share price.

    Why I like the business

    EML shares are now at around the same level as the bottom of the COVID-19 crash in 2020 when there were major questions about how ‘normal life’ would proceed and what this meant for a business that earned a lot from shopping centre physical gift cards.

    I also believe that the Central Bank of Ireland issue isn’t anywhere near as detrimental to growth as it could have been.

    Higher interest rates could be quite helpful for EML’s profitability, and the EML share price, as it increases earnings from the cash that it holds. It could earn in the tens of millions in the next few years from higher rates, depending on how high interest rates go. Even if EML’s core earnings aren’t as profitable as before (in percentage terms), the higher interest earnings could be a real boost to the bottom line.

    The longer-term outlook for the growth of digital payments looks good to me. As well, shopping centre volumes could grow as COVID-19 impacts subside.

    I also like the move by EML Payments to enter the European employee benefits market with Up Spain. EML could also grow in other countries where other parts of the Up Group operate. Globally, the employee benefits market is worth over $88 billion and is expected to grow by $20 billion between 2021 to 2025, with Europe representing 35% of the market.

    The larger scale should help the operating leverage and profitability of EML.

    Finally, I think EML could be a takeover target at this price. If the EML share price doesn’t recover in the near term, then private equity groups like Bain Capital could put in an offer that’s high enough, compared to today’s price, to be accepted by shareholders.

    EML recently confirmed that it had been in talks with Bain Capital but those discussions have ceased. However, this shows EML is seemingly happy to talk to interested parties.

    The post Why I think the EML share price is a long-term buy appeared first on The Motley Fool Australia.

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

    Before you consider EML, 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 EML 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

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    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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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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  • What’s dragging on ASX 200 energy shares like Santos today?

    A barrel of oil suspended in the air is pouring oil while a man in a suit stands with a droopy head watching the oil drop out.A barrel of oil suspended in the air is pouring oil while a man in a suit stands with a droopy head watching the oil drop out.

    ASX energy shares like Santos Ltd (ASX: STO) are struggling to make gains today even as the S&P/ASX 200 Index (ASX: XJO) rallied to a near three-week high.

    There could be a few reasons for the underperformance of the sector, and the federal election may be one of them.

    Australia will find out who will be running the country by next week and that can spell trouble.

    How the federal election is weighing on ASX 200 energy shares

    This is particularly so if we get a minority government or hung parliament as the major parties might be forced to adopt more radical climate policies that could hurt ASX 200 energy shares.

    Santos chief executive Kevin Gallaher is one ringing the warning bells. He is warning the major parties against “knee-jerk reactions“, reported The Australian.

    Given how tight the polls are looking three days out from the election, the risks cannot be quickly dismissed. There could even be a temptation for minor parties or the independents to demand Australia follow the lead of the US.

    Industry’s warning against knee-jerk populist reaction

    Gallagher told the APPEA energy conference today:

    My request is no knee-jerk reactions and there‘s no big Biden style policy announcements on day one closing things down because I think that would be very disruptive.

    That would not help with the energy transition.

    US President Joe Biden introduced a ban on new oil and gas leases after coming to office. There is also a push to hike oil and gas royalties in the country to compensate for higher climate costs.

    Both the Coalition and Labor have committed to net zero by 2050. But the Greens and many independent candidates are demanding even more aggressive action on climate change.

    Oil price slide impacting Santos and other ASX 200 energy shares

    But it isn’t only political risks that are rattling ASX 200 energy shares. The drop in the oil price following the previous day’s big rally is also putting a cloud over the sector.

    The Brent crude benchmark fell 1.2% to US$112.55 a barrel, while the West Texas Intermediate (WTI) lost 0.2% to US$113.66 a barrel.

    Against this backdrop, the Woodside Petroleum Limited (ASX: WPL) share price slipped 1.2% to $30.73 and the Beach Energy Ltd (ASX: BPT) surrendered 2% to $1.70 at the time of writing.

    The Santos share price is faring a little better as it dipped 0.1% to $8.24. But it’s still being left behind as the ASX 200 index jumped 0.8%.

    Outlook for ASX 200 energy shares

    Shareholders shouldn’t feel too dismayed though. Most analysts are expecting the oil price to stay firm this year due to geopolitical factors.

    Also, the Woodside and Beach Energy share prices have jumped around 30% each over the past year, while Santos is up 15%.

    In contrast, the top 200 benchmark is barely in the black over the same period.

    The post What’s dragging on ASX 200 energy shares like Santos today? 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

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    Motley Fool contributor Brendon Lau has positions in Santos 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.

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  • Aurora Energy Metals share price rockets 35% on ASX debut

    a man sits on a rocket propelled office chair and flies high above a citya man sits on a rocket propelled office chair and flies high above a city

    The Aurora Energy Metals Ltd (ASX: 1AE) is enjoying a strong debut on the ASX today.

    The explorer’s share price is swapping hands at 25.56 cents, up 27.5%, nearing the close on its first day of trading. Earlier, the company’s share price surged 35% higher. In comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.81%.

    Let’s take a look at this ASX lithium share in more detail.

    Uranium and lithium explorer

    Aurora is an Australian company exploring uranium and lithium at the Aurora Energy Metals Project in Oregon, USA.

    The company raised $8 million in its initial public offering (IPO). A total of 40 million ordinary shares were issued at 20 cents per share.

    Aurora will use these funds for more exploration and development activities at the Oregon project. The company hopes to define the lithium resource and grow the uranium mineral resource.

    Commenting on the ASX debut, managing director Greg Cochran said:

    The Aurora Energy Metals Project offers investors two bites at the clean-energy pie.

    We will look to grow the well-defined, shallow uranium resource hosted in the basement and conduct techno-economic studies, whilst following up the significant lakebed sediment-hosted lithium mineralisation that surrounds and overlies it.

    We are excited by the strong response that we had to the capital raising from both retail and institutional investors.

    The project is located within an area home to two of the biggest lithium deposits in the United States that Jindalee Resources (ASX: JRL) and Lithium Americas (NYSE: LAC) are exploring nearby.

    Aurora has a market capitalisation of about $30.6 million based on the current share price.

    The post Aurora Energy Metals share price rockets 35% on ASX debut appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Aurora Energy Metals right now?

    Before you consider Aurora Energy Metals , 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 Aurora Energy Metals 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

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    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/AEjex0M