Tag: Motley Fool

Do you remember when you, or perhaps your son or daughter, were learning to drive?

When you ‘got your Ls’, suddenly you noticed all of the other learner drivers on the road, right?

Or when you or a partner was pregnant, you saw pregnant women everywhere?

Maybe when you bought a car, you suddenly realised how many others of the same model were on the road?

Of course, there wasn’t really a spate of new drivers, or newly pregnant women. There wasn’t a sudden surge in sales for the same model of car you now owned.

It’s just that our brains are wired to recognise similarities between us and others.

I’m no evolutionary biologist, but you can see why. Creating those connections strengthens bonds between people – an important building block in the creation of communities and societies that helped us advance as a species.

The same is true of investing.

Apparently, the world’s stock markets have lost $16 trillion in value (yes, with a T) since the most recent peak.

The falls have been rough on many of us.

It seems everywhere you look, there are stories of losses.

At least we’re in it together, I guess.

But that’s the other thing: those stories sell because humans respond viscerally to bad news.

‘If it bleeds, it leads’ is the newspaper maxim.

So not only is bad news likely to be more prominently reported, but we’re more likely to notice and to internalise that bad news when we can associate with it.

So you might not have noticed – or if you did, you almost certainly wouldn’t have given it the same weight – the stories about Warren Buffett, recently.

While the headlines are about bear markets in technology stocks, or crashing Bitcoin (CRYPTO: BTC) (that’s a whole other article), and the market is truly losing significant value, there are other stories, like Buffett’s.

Turns out, Buffett has been buying.

And not just buying, but BUYING.

He’s apparently invested $74 billion in the past couple of months.

Which is big.

And deserving of more headlines than it’s received.

Because Buffett knows what the rest of us need to remember – that when the news is full of ‘what just happened’, and when we are tempted to think in terms of extrapolation, rather than cycles – buying when others are fearful is usually a very smart option.

Let me put it in starker terms:

Right now, many people are selling in fear.

Some are holding onto cash, trying to avoid the pain of loss.

And the world’s greatest investor is buying.

Now, maybe, this time, after more than 55 years running Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B)…

Maybe, after countless headlines, over decades, wrongly wondered if Buffett was old hat…

Maybe, possibly, there’s a chance that he’s making a huge mistake.

But if Buffett is buying, while others are selling, or frozen in fear…

Isn’t there a chance we should spend less time contemplating our losses, and a little more time emulating the man who has spent decades demonstrating the value of long-term investing?

You think there might be a pretty bloody good chance?

Yep, me too.

I can’t offer to make the losses hurt less. I can’t stop the worry. I can’t make the market turn around, by force of will.

But I – like you – can hold my nose, and buy anyway with eyes set firmly on the horizon, and believe in the long-term potential of investing, just as Warren Buffett has… for decades.

Or, you can be like the ‘smart money’ and try to time the market, guess at macro forecasts, trade in and out, check your brokerage a dozen times a day and let the noise overwhelm you.

I don’t know about you, but I’m with Uncle Warren.

Join me?

Fool on!

The post $16 trillion ‘wiped off’ share markets. Buffett doesn’t care appeared first on The Motley Fool Australia.

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• The single greatest investing lesson I ever learned
• Thinking about selling all your stocks? Here are 2 big risks you’ll face
• Worried about inflation? Here’s what Warren Buffett says Berkshire Hathaway is doing
• 3 lessons from what Buffett didn’t say at Berkshire Hathaway’s shareholder meeting
• Warren Buffett talks cash and more at Berkshire Hathaway’s annual meeting

Motley Fool contributor Scott Phillips has positions in Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares) and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch on Wednesday.

This follows the release of an announcement this morning from the mining giant.

Why is the Fortescue share price on watch?

The Fortescue share price will be one to watch closely today after the company announced a raft of leadership changes.

According to the release, Fortescue is making these changes as part of its evolution into a global green renewables and resources company.

It expects the changes to help to deliver Fortescue’s global green energy business strategy – to lower global emissions, to decarbonise Fortescue, and to create significant additional value for shareholders, through sharing green fuels and technology with the world.

This follows two decades of Fortescue’s iron ore, trucks, and trains generating billions of tonnes of carbon emissions and polluting the Earth.

What are the changes?

The biggest change sees Dr Andrew “Twiggy” Forrest AO return to lead Fortescue as its Executive Chairman. He will be focused on overseeing the iron ore business for an interim period to help drive the company’s transition when its current CEO, Elizabeth Gaines, concludes her tenure in August.

Another change will see Dr Mark Hutchinson, former President and CEO of General Electric (GE) Europe, join Fortescue Future Industries (FFI) in early July. He will initially take the role of Director of Projects, before assuming the role of CEO of FFI by the end of 2022.

The current FFI CEO, Julie Shuttleworth, will continue in her role during the transition process and will then move to a senior executive leadership role.

Dr Forrest commented: “Bringing in someone with Mark’s global leadership experience and proven track record in managing large scale, complex global organisations and projects goes to the heart of our global vision for FFI. We are committed to sharply arresting climate change, creating massive economic growth, increasing jobs, and growing our business profitability for our shareholders.”

The Executive Chairman also dismissed concerns that FFI could destroy shareholder wealth and continues to believe it will be a profitable business.

“We will prove that going green has a fabulous and profitable future, providing significant additional value for shareholders by ramping up innovative and game changing green technologies, green operating know-how and sharing that and our future massive green fuel supply to the world,” he added.

Dr Forrest concluded with a warning to other mining companies that are ignoring the need to decarbonise.

“We are doing the hard work to genuinely decarbonise Fortescue, avoiding the temptation we see all around us to greenwash. I wish to specifically congratulate Rio Tinto and BHP for their efforts in their own inevitable decarbonisation journey. For those remaining in the private and public mining and energy sector who ignore the world’s need to change, you do so at your ignorance and peril.”

What else is changing?

Joining Dr Hutchinson at FFI will be the former CEO of AGL Energy Ltd (ASX: AGL), Andrew Vesey. He will be appointed as FFI’s Head of Energy Transition Projects.

The release notes that Mr Vessey has spent more than 40 years transforming and repositioning organisations by focusing on advanced technology and execution. His recognitions and awards include Business Leader of the Year’ (Climate Alliance); ‘CEO of The Year’ (S&P Platts Global Energy Awards) – One of Australia’s ‘Low Carbon Heroes.

Finally, another key appointment sees Christiaan Heyning join as Head of Decarbonisation. Mr Heyning joins FFI from McKinsey where he was a founding partner of the Perth business. He has a 20-year track record of strongly improving business outcomes in mining and industry internationally, with a very strong focus on sustainability.

The post Fortescue share price on watch after Twiggy returns to top job appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining share has the highest dividend yield in May?
• Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations
• Is the Fortescue share price cheap after dropping 10% in a month?
• Why are Fortescue and green hydrogen making news again on Friday?
• Is the Fortescue share price a buy for its 16% dividend yield?

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

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Looking for growth shares to buy in May? Well, here’s some good news! Listed below are two growth shares that have recently been named as buys with major upside potential.

Here’s what you need to know about them:

Allkem Limited (ASX: AKE)

The first ASX growth share to look at is Allkem. It is one of the world’s leading lithium miners with a collection of high-quality operations across different geographies and lithium type.

As Allkem is already shipping lithium in large quantities, it is allowing the company to benefit from the sky high lithium prices which are being driven by the clean energy transition and the rapid adoption of electric vehicles. This bodes well for its earnings growth in the coming years, especially with management aiming to increase its production three-fold by 2026.

Morgans is a big fan of Allkem and has an add rating and $16.98 price target on its shares.

Dicker Data Ltd (ASX: DDR)

Another growth share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor, which distributes a growing portfolio of products from the world’s leading technology vendors from its new state of the art distribution centre.

Dicker Data recently released its first-quarter update and revealed that its strong growth has continued in FY 2022. The company reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

This was driven by a combination of organic growth and a full quarter contribution from the Exeed acquisition.

One leading broker that appears confident this strong form can continue is Morgan Stanley. In response to its first-quarter update, the broker retained its overweight rating and $16.00 price target on its shares.

The post Analysts rate these ASX growth shares as buys this month appeared first on The Motley Fool Australia.

More reading

• What’s with the Dicker Data share price today?
• Why I think the Allkem share price is in the buy zone
• Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker
• Everything you need to know about the latest Dicker Data dividend
• Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Glenmore Asset Management portfolio manager Robert Gregory explains why he loves two particular ASX shares at the moment.

Biggest convictions

The Motley Fool: What are your two biggest holdings?

Rober Gregory: So the two biggest holdings now would be MA Financial Group Ltd (ASX: MAF) and Stanmore Resources Ltd (ASX: SMR). 

Firstly on Stanmore. That’s a company that I’ve followed for a long period of time. Funnily enough, the current management chairman of Bowen Coking Coal Ltd (ASX: BCB), Nick Jorss, actually used to be heavily involved with Stanmore.

Stanmore is a company I’ve known for a long time. Back in about October last year, they announced the transformational acquisition where they bought two coal assets off BHP Group Ltd (ASX: BHP). The two assets, South Walker Creek and Poitrel, they [are] both coking coal mines. BHP [were] going through a process of exiting certain coal assets and these two came up for sale. Stanmore acquired them at what I felt was a quite opportunistic price at around US$1.2 billion.

So what they did is to transform Stanmore into a small cap coal producer with assets of reasonable quality and suddenly vaulted them into a completely different investment proposition. 

South Walker Creek has a mine life of in excess of 25 years capacity of 6.3 million tons per annum. Poitrel, a bit smaller, 4.3 million tons per annum, [a] shorter mine life around 10 years, but still quite substantial.

The really positive part of these assets is actually where they sit on the cost curve. So South Walker Creek would be in the first quartile, Poitrel would be somewhere in the range between first and second. So what that means is that even obviously right now they’re benefiting greatly from favourable coal prices but, even in periods of much weaker coal prices, we still believe that those mines will make money.

That’s a really positive thing to think about for the future years. So post that deal, they will have debt of around $700 to $800 million, but we believe that will be amortised quite quickly over the six to 12 months, just coming from the very strong cash generation from those two mines.

It’s worth pointing out that even though the deal was actually announced back in November last year, it was quite a protracted settlement. So Stanmore actually only took ownership and gained access to the cash flows on the 3rd of May this year. So there’s been quite a period of months of waiting to see whether the coking coal price would stay robust once Stanmore took ownership but, increasingly, it has stayed at very healthy levels. So we’re now in a situation where Stanmore is generating very significant free cash flow.

I really would stress that you shouldn’t be looking at the valuation based on the current coal price because it’s extremely high and it’s not realistically going to stay at these levels. But for what it’s worth, at current coal prices, it’s trading on an [enterprise value] EV to [earnings before interest, tax, depreciation and amortisation] EBITDA of around 1.3 times.

At a long term hard coking coal price of around $150, $160 per ton, we have the EV to EBITDA around five times. So that the valuation stacks up, there’s going to be good amortisation over the next 12 months.

The other interesting thing with Stanmore is that now that it’s the new owner of Poitrel, is that there’s quite a bit of speculation that the next coal asset BHP will sell is Daunia. And if that does proceed, Stanmore is very well-placed to be the bidder that can bid the most for Daunia, on the basis that Daunia is adjacent to Poitrel. They certainly have the most scope for synergies versus other bidders.

So there’s probably going to be more. South32 Ltd (ASX: S32) [is] talking about selling some coal assets. There’s going to be some more coal assets to be sold, so that’s something to watch.

At the moment, for the assets Stanmore has, it’s quite an attractive price.

MF: And why do you like MA Financial?

RG: So that’s a financial services company. It has operations in funds management, corporate advisory equity, capital markets, and more recently it bought the business of Finsure off BNK Banking Corporation Ltd (ASX: BBC) for $145 million back in December last year.

It listed in early 2017 and, in fact, the Glenmore Fund’s actually been invested in the stock pretty much ever since [initial public offering] IPO and it’s really generated a really strong track record of delivering [earnings per share] EPS growth. I think management’s very good.

They started off mainly as a corporate advisory and corporate recovery-type business with a small asset management business, but they correctly identified that asset management is a high-quality earning stream. So they’ve expanded quite aggressively into that part of the business since that 2017 period. 

We’re now at the stage where the asset management business is by far the dominant earnings contributor at around 70% of group EBITDA. 

Whilst its asset management… it’s not really like a Magellan Financial Group Ltd (ASX: MFG) or Pinnacle Investment Management Group Ltd (ASX: PNI) funds management business. It’s more sort of niche products, such as real estate credit, hospitality funds, some venture capital, bit of private equity. It does have some equities, but a lot of the products it creates [are] quite niche products, designed specifically for high-net wealth investors.

And because they’re quite niche in nature… the fee pressure is not as fierce as it is for say, more mature types of categories, such as long-only Aussie equities, for example.

So the fee structure is quite favourable and they’ve now got assets under management of about $7 billion. And I think there’s a very significant performance fee capability from that $7 billion. I think even at this point, it’s probably undervalued by the market, that performance fee capability or potential.

At the recent AGM, they called out their credit funds as getting the majority of their recent inflows, just due the defensive nature of these products and also the current equity market volatility. But generally speaking, all the various products they have in the asset management business are performing well. 

Corporate advisory and equities, that’s doing well. That’s probably a bit lower growth than the asset management business, but still generates very good cash flow and it provides a lot of good ideas, I think for their asset management business, in terms of where they can spot opportunities to add value for the client base.

Just on Finsure: So that’s a business that they acquired last year for $145 million. It was founded in 2011 and provides a range of services to mortgage brokers based off its proprietary tech platform called Infinity. Infinity is essentially a platform that lets brokers select original process mortgages and other types of loans. Currently, [it] has about 12% market share, which has grown quite steadily over the last five years.

One favourable industry tailwind that Finsure has, is just that our mortgage brokers continue to win market share whilst the major big four banks are losing shares. So that should help their earnings. I think that the Infinity platform is very solid.

Lastly, MA Financial has its own lending division, including now owning a 100% of MKM, and I think some of the data and insights they get from owning Finsure are likely to be quite helpful in terms of tailoring certain products and for their own lending business. There’s synergies for the lending business medium-term. 

[It] recently affirmed guidance for CY22 of 10% to 20% EPS growth. The valuation is still quite attractive at [price to earnings ratio] P/E about 16, 17 times.

MF: Yes, I was going to say the share price has dropped a bit this year, so is it a reasonably attractive entry point at the moment?

RG: Yeah, I think it is. 

I think some of the stock price declines come from just a general de-rating, the market, some of it from sell-off in financial services stocks.

I think [with] the asset management business performing very well. I suspect some investors may have concerns around Finsure just being vulnerable to weaker mortgage, home loan activity. That’s a reasonable concern just given where the Australian home loan market is tracking right now with raising higher rates.

Realistically, that’s probably produced a slightly softer earnings outlook for Finsure over the next 12 to 18 months, but I don’t think it takes anything away from the medium-term opportunity from Finsure, which is still a very good business growing in a very big market, being the Aussie home loan market.

MF: What are the two best buys you’re seeing at the moment?

RG: Well, look, to be honest, they’re actually the two best buys.

The post 2 ASX shares I have supreme confidence in: fund manager appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price cheap compared to other ASX 200 shares?
• Broker names 3 reasons the South32 share price could be cheap
• My fund just went up 51%: This is how I did it
• How big is the BHP dividend yield going to be in 2022 and 2023?
• Which ASX 200 mining share has the highest dividend yield in May?

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

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 7,112.5points.

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

ASX 200 expected to storm higher

The Australian share market looks set for a very strong day on Wednesday following a stellar night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.95% higher this morning. On Wall Street, the Dow Jones rose 1.35%, the S&P 500 climbed 2%, and the Nasdaq stormed 2.75% higher.

Pendal rated as a buy

The Pendal Group Ltd (ASX: PDL) share price could be good value according to analysts at Bell Potter. According to a note, the broker has retained its buy rating with an improved price target of $6.90. The broker believes Pendal’s half-year result and its recent takeover approach demonstrate how “undervalued asset managers have become.”

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.9% to US$112.05 a barrel and the Brent crude oil price has fallen 2.5% to US$111.36 a barrel. Hopes that additional Venezuelan supply could hit the market soon has put pressure on prices.

Champion Iron acquisition

The Champion Iron Ltd (ASX: CIA) share price will be on watch today after the iron ore miner announced a new acquisition. The company has signed a deal to acquire the Pointe Noire Iron Ore Pelletizing Facility located in Sept-Iles, Québec. In addition, Champion is in talks with a major international steelmaker to complete a feasibility study to evaluate the re-commissioning of the Pellet Plant and produce Direct Reduction Grade Pellets.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,813.2 an ounce. Strong US retail sales boosted the US dollar and weighed on gold.

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

More reading

• Here are the top 10 ASX shares today
• 3 ASX shares you might be surprised to learn pay dividends
• Is the Telstra share price cheap compared to other ASX 200 shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 2 ASX 200 shares smashing multi-year highs today

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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If you’re looking for an easy way to diversify your portfolio, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs could be top options right now? Listed below are three excellent ETFs that could be worth considering as long term investments:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. It could be an ETF to consider if you believe the recent crypto selloff is a minor blip and nothing structural. This fund gives investors exposure to the crypto economy through a portfolio of companies that are at the forefront of the industry. This includes crypto trading platforms such as Coinbase and crypto mining and mining equipment firms such as Core Scientific and Riot Blockchain.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Another ETF to look at is the BetaShares Global Energy Companies ETF. Unlike the crypto market, the energy market is absolutely thriving in 2022. So, for investors that are wanting to gain exposure to rising oil prices, this ETF could be a great way to do. The BetaShares Global Energy Companies ETF allows investors to own a slice of some of the biggest energy companies in the world. This includes the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a whopping ~1,500 of the world’s largest listed companies. This could make it a top option for investors seeking to diversify their portfolio. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 3 top ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

More reading

• VGS: Were you better off buying the S&P 500 ETF?
• 2 high quality ETFs for ASX investors to buy after the market meltdown
• 3 fantastic ETFs for ASX investors to buy this week
• 3 high quality ETFs for ASX investors to buy this month
• These 2 ETFs could help to protect ASX investors against inflation

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 Global Energy Companies ETF – Currency Hedged, Betashares Crypto Innovators ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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.

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The Bubs Australia Ltd (ASX: BUB) share price was a strong performer on Tuesday.

The infant formula company’s shares ended the day 16% higher at 43 cents.

Why did the Bubs share price pop?

The Bubs share price raced higher on Tuesday despite there being no news out of the company. However, some industry news may have given its shares a boost.

Overnight the US Food and Drug Administration (FDA) announced important updates on its ongoing work to increase the supply and availability of infant formula in the country.

US FDA Commissioner, Robert M. Califf M.D., commented:

We recognize the hardships that parents and caregivers have faced in obtaining infant formula and the FDA is focused on boosting the availability of the country’s supply of these products, including new steps regarding importation. We are also taking a look at the supply of infant formulas developed by manufacturers across the country and around the world to determine if a reallocation of their distribution can be made to help get the right product to the right place, at the right time.

Investors may believe this bodes well for Bubs, which launched its Aussie Bubs brand formula range on a number of ecommerce platforms in the country late last year. This has since been boosted by a presence in a number of supermarkets.

With its third-quarter update, Bubs Founder and CEO, Kristy Carr, provided an update on its footprint in the US. She said:

Our USA bricks and mortar retail footprint continues to expand with secured ranging of Aussie Bubs Goat and Grass Fed Toddler Formula in 254 Smart & Final supermarkets in Southern California, and 130 Buy Buy Baby stores spread across 37 states. These new listings complement our existing retail presence in 177 Ralph’s supermarkets and online on Walmart.com, Amazon.com and Thrive.com.

Time will tell if Bubs benefits from these shortages but investors seem to be betting on it doing so.

The post Why did the Bubs share price jump 16% today? appeared first on The Motley Fool Australia.

More reading

• Which is the better beaten-up buy, Bubs or A2 Milk shares?
• Bubs share price sinks 29% in a month. Top broker tips 60% upside
• 2 great ASX growth shares to buy in May 2022: experts
• Bubs share price sinks 7% despite quarter of ‘exceptional growth’

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

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Today, the S&P/ASX 200 Index (ASX: XJO) captured its third consecutive day in the green despite Wall Street getting the cold shoulder from investors. At the end of the session, the benchmark index finished 0.27% higher at 7,112.5 points.

While whispers of a potential higher rate increase in June circulated the market, investors were unnerved as they fired their money into the more defensive sectors on Tuesday. Getting the most attention were energy companies, though, battery material miners fared favourably as well.

Unfortunately, market participants were less keen on healthcare, real estate, and tech today. These are the same sectors that we have previously watched weaken on news of higher rates.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Core Lithium Ltd (ASX: CXO) was the biggest gainer today. Shares in the lithium project developer surged 9.28% following an update on the company’s progress towards bringing the Finniss Lithium Project online. Find out more about Core Lithium here.

The next best performing ASX share across the market today was Lynas Rare Earths Ltd (ASX: LYC). The rare earths producer’s share price firmed by 6.56% today as demand for rare earth oxides continues to hold strong. Uncover the latest Lynas Rare Earths details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Core Lithium Ltd (ASX: CXO)	$1.295	9.28%
Lynas Rare Earths Ltd (ASX: LYC)	$9.42	6.56%
Beach Energy Ltd (ASX: BPT)	$1.735	6.12%
Whitehaven Coal Ltd (ASX: WHC)	$5.20	5.91%
Mineral Resources Ltd (ASX: MIN)	$58.16	5.71%
Allkem Ltd (ASX: AKE)	$12.06	5.51%
Coronado Global Resources Inc (ASX: CRN)	$2.29	5.05%
Pilbara Minerals Ltd (ASX: PLS)	$2.73	5.00%
Sandfire Resources Ltd (ASX: SFR)	$5.15	4.04%
New Hope Corporation Ltd (ASX: NHC)	$3.88	4.02%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares you might be surprised to learn pay dividends
• Lighting up the market: ASX lithium stocks surge again on Tuesday
• Is the Telstra share price cheap compared to other ASX 200 shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 2 ASX 200 shares smashing multi-year highs today

Motley Fool contributor Mitchell Lawler has positions in Lynas Corporation 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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The S&P/ASX 200 Materials Index (ASX: XMJ) has climbed 0.25% year to date, but three ASX mining shares are surging higher.

Let’s take a look at which three ASX companies — all involved in developing minerals used in the manufacture of electric vehicles — are having a good year.

Arafura Resources Limited (ARU)

Arafura Resources shares have soared 67% year to date. The company is developing rare earths at the Nolans project in the Northern Territory. One major piece of news that drove the ASX mining share higher in March was a $30 million grant from the Federal Government. The grant will help fund a $90.8 million separation plant at the Nolans project.

Commenting on the news, managing director Gavin Lockyer said:

This grant is an exciting milestone for Arafura, recognising the strategic significance of the Nolans Project and its place in the future of critical minerals processing in Australia.

The company is hoping to supply about 5% of the world’s NeodymiumPraseodymium (NdPr) demand from the Nolans project. Rare earths are a crucial component in the manufacture of electric vehicles (EV).

In more positive news for the company, Arafura was listed on the  All Ordinaries Index (ASX: XAO) in early March.

Green Technology Metals Ltd (GT1)

The Green Technology Metals share price has rocketed 58% year to date. The company is working on lithium projects at Root Lake, Seymour Lake, and Wisa Lake.

In major news for the ASX mining share in late April, Green Technology Metals announced major US lithium player Lithium Americas Corp (NYSE: LAC) will invest US$10 million in the company.

Drilling results in early April may have also helped the company’s share price. Drilling at the Seymour lithium project in Ontario, Canada intercepted thick, high-grade lithium oxide.

Group 6 Metals Ltd (G6M)

The Group 6 Metals share price has surged 83% year to date. The company is redeveloping the Dolphin tungsten mine in Tasmania to explore tungsten. This is another rare metal that can be used in lithium-ion batteries.

This ASX mining share has recently received attention from the United States. Chairman Johann Jacobs has been in conversations with the US embassy lately about the mine. China has a global dominance in the tungsten market, but Group 6 provides a potentially new supply chain.

Commenting on the meetings with the US embassy, Jacobs said:

At this stage, they don’t have any financial interest, but they certainly are very keen to see us progress and develop the mine because it’s another supply chain… from a friendly nation.

In February, Group 6 reiterated its commitment to developing the Dolphin mine, describing it as the “highest-grade tungsten deposit of significant size in the Western World”.

The post Battery-powered! 3 ASX mining shares up more than 50% in 2022 appeared first on The Motley Fool Australia.

More reading

• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)
• This ASX battery metals share rocketed 20% today. What’s going on?
• Arafura Resources share price extends gains on Friday, up 100% since March
• Green Technology Metals share price lifts on Lithium Americas investment
• Why is the Green Technology Metals share price on ice today?

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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Shares of Insurance Australia Group Ltd (ASX: IAG) have spiked over 10% this year and finished trading at $4.68 apiece on Tuesday.

IAG’s share price chart over the past 6 months resembles a mountainous range with high peaks and low valleys, more than one of a stock price.

Investors have pushed the IAG share price around as if it were a pinball between two planks of wood during that time, with prices ranging as low as $4.24 to as high as $4.92 apiece.

Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) has held onto a 1.24% gain this year to date, despite a recent consolidation.

How does the IAG share price stack up?

According to data provided from Bloomberg, there are a number of analysts providing ratings on IAG shares.

From this list, 58% of analyst urge their clients to buy IAG shares right now, whereas 25% are suggesting to hold.

The remaining 16% – just two analysts – urge their clients to sell or close out their positions if holding IAG shares.

With the IAG share price currently resting at $4.68, it appears as if the consensus has plenty more upside yet to be baked in, assigning a 12 month average price target of $5.14 per share, Bloomberg says.

A bit more on IAG’s analyst ratings

This price target has actually crept down over the last two years, despite the number of buy calls increasing in the same time.

It has wiggled down from around $6.40 per share in May 2020, the consensus price target on IAG shares. However, it has hovered above the market price consistently in that time.

In terms of those that are above consensus estimates, each of Credit Suisse, JP Morgan, Jarden, Barrenjoey Markets and Citi reckon IAG could spike above the $5.14 mark.

Meanwhile, Macquarie, Barclay Pearce and Morgan Stanley value IAG below consensus, with analysts at Morgan Stanley slapping a sell rating on the stock in doing so.

Net-net, if going by consensus data, then it might appear that IAG is undervalued trading around 10% below the average price target from analysts covering the stock.

However, with any number of determinants of fair value not discussed in this report, that is ultimately for the market to decide.

In the last 12 months, the IAG share price has clipped a 3% loss despite its outsized return this year to date.

The post How does the IAG share price stack up against analyst ratings? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• What is the dividend yield on IAG shares in May?
• The IAG share price has gained 6% in a month. Is this just the beginning?
• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
• Does IAG have a dividend reinvestment plan?

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 positions in and has recommended Insurance Australia Group 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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