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Shares of Iluka Resources Limited (ASX: ILU) are tracking south today following the release of the company’s quarterly activities and cash flow update.

At the time of writing, the Iluka share price is trading at $10.26 after sliding just over 1% into the red from the open.

Iluka share price slides as spot prices soar

Key highlights from Iluka’s quarter include:

• Zircon/Rutile/Synthetic Rutile (Z/R/SR) production of 180kt, up 44% on Q1 2021
• Strong Z/R/SR sales of 189kt, in line with Q4 2021
• Zircon sand prices increased US$100/tonne, effective 1 April 2022
• Spot prices for rutile and synthetic rutile are both at ten year highs
• Phase 1 complete of Eneabba development

What else happened for Iluka this year?

The company says that Australian operations performed in line with its expectations. For instance, its Cataby site in Western Australia produced 117,000 tonnes of heavy mineral concentrate (HMC), “in line with the mine plan”.

Whereas the Narngulu mineral separation plant in WA produced 76,000 tonnes of zircon, and its Synthetic Rutile Kiln 2 produced 54,000 tonnes of synthetic rutile.

Elsewhere, the company’s Sierra Rutile project in Sierra Leone produced 98,000 tonnes of HMC, a 14% gain from Q4 2021.

Earlier in the month, Iluka had advised of its plans to demerge its Sierra Rutile asset, pending shareholder approval. If successful, Sierra Rutile will then list on the ASX, Iluka says, as a ” West African focused mineral sands company”.

“[The project] will have the primary objective of maximising value from Sierra Rutile’s remaining deposits at Area 1 and developing the globally significant Sembehun project,” Iluka noted.

Finally, exploration and evaluation expenditure was $2.2 million for the quarter, slightly lower than $2.4 million in Q1 2021.

What’s next for Iluka?

Iluka says that it has increased the price of zircon sand by US$100 per tonne, effective from 1 April 2022.

“The company’s Q2 2022 zircon sales are fully contracted, reflecting tight supply despite a number of challenges facing the market,” it noted.

Not only that, but it announced the final investment decision for the Eneabba Phase 3 asset. Iluka says this is a “fully integrated refinery for the production of separated rare earth oxides” and is located at Eneabba, WA.

“This [investment] decision was taken following the agreement of a risk sharing arrangement with the Australian Government, including a $1.25 billion non-recourse loan under the $2 billion Critical Minerals Facility administered by Export Finance Australia,” Iluka said.

Phase 3 will produce the high value rare earth oxides neodymium, praseodymium, dysprosium and
terbium. These are critical inputs across a range of industries and technologies including electric
vehicles, sustainable energy, advanced electronics, medical and defence applications. The refinery will have a total rare earth oxide capacity of 17.5 thousand tonnes per annum. Construction is scheduled to commence in H2 2022, with first production in 2025.

Iluka Resources share price snapshot

In the last 12 months, the Iluka share price has climbed more than 37% into the green and is up 1.5% this year to date.

However, in the past week, it has scaled back and is down 16% in that time.

The post Iluka Resources share price crumbles as quarterly results in line with ‘expectations’ appeared first on The Motley Fool Australia.

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• 3 ASX 300 shares smashing new multi-year highs on Wednesday

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 Bruce Jackson.

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The Firefinch Ltd (ASX: FFX) share price is tumbling in early trade, down 5.8%.

Shares in the ASX gold miner and lithium developer closed yesterday at $1.03 and are currently trading for 97 cents.

In fact, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is also well into the red this morning, down 1.4%.

Below we take a look at the highlights from the quarter just past, reported this morning by ASX share Firefinch.

What were the highlights from the past quarter?

The Firefinch share price is sliding after the company updated the market on its activities for the three months ending 31 March.

For context, the miner’s two projects are located in Mali. The company holds an 80% interest in the Morila Gold Mine and a 100% interest in the Goulamina Lithium Project.

At Morila, Firefinch reported continuing high-grade gold results from its drilling campaign at the Morila Super Pit. Additionally, the miner said significant results from one of the drill holes “may represent a new zone of mineralisation”.

The company reported substantial increases in its mineral resources at several deposits within Morila. According to Firefinch, the total mineral resources for the Morila Gold Project has reached 2.5 million ounces of gold.

Gold production for the quarter (Q1) met guidance, coming in at 10,874 ounces.

Firefinch reported production guidance for Q2 in the range of 17,000 to 20,000 ounces of gold. The miner maintained its full-year 2022 production guidance of 100,000 ounces of gold. It expects annualised production rates for the second half of the year to surpass 140,000 ounces of gold.

The company also provided updates on its Goulamina Lithium Project. Goulamina is among the largest undeveloped high-quality spodumene deposits in the world.

Partnering in a 50/50 joint venture with lithium battery materials supplier Ganfeng, Firefinch aims to bring that project into production.

Firefinch said all the required conditions have been met for Ganfeng’s investment in the project. During the quarter, Ganfeng contributed US$130 million in cash to the joint venture company.

The demerger of Goulamina into Leo Lithium Limited is reportedly proceeding on schedule.

Firefinch held cash and cash equivalents of $102 million as at 31 March.

Firefinch share price snapshot

Despite weakness over the last week, the past 12 months have seen the Firefinch share price rocket 193%.

By comparison, the All Ordinaries Index (ASX: XAO) has gained 3.5% over the past full year.

The post Firefinch share price tumbles 6% despite meeting gold production guidance appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Twitter (NYSE: TWTR) surprised Wall Street this week when it announced it had entered into an agreement to be acquired by billionaire Elon Musk, a move that would make the company private. With the acquisition price about 8% higher than where the stock is trading Tuesday morning, some investors may be tempted to try to profit from this delta. But investors should think twice before they play this game.

This deal comes with some serious risks and a good case can be made for selling Twitter stock today.

Important details you should know

Twitter announced Monday that Musk would buy the social media company for $54.20 per share in cash, valuing the company at about $44 billion. The move would take the company private, meaning shareholders would be paid cash at the time the deal is closed and Twitter shares would no longer be traded on the New York Stock Exchange.

The company seems excited about the deal. “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Twitter Chairman Bret Taylor in a press release. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”

As Twitter notes, the purchase price represents 38% upside over the stock’s closing price on April 1 — the day before Musk’s 9% stake in the company was disclosed.

But don’t forget to acknowledge the risks to this transaction. The biggest thing investors who currently own Twitter stock (or those considering buying it) should know is that there’s never a guarantee that an acquisition will be completed, even when the company being acquired has already entered into a “definitive agreement” with the acquirer.

Twitter, of course, was sure to disclose the risks to this transaction, noting that it is “subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.”

What could happen if the deal falls through

There’s significant risk to holding. If the deal does not work out, Twitter shares could plummet. After all, the stock’s recent gain is almost entirely due to the likelihood of Musk buying the company at a price of $54.20 per share. Without this possible deal, and without the promise of Musk’s leadership, the stock could spiral downward as investors contemplate what a failed deal could mean for the company’s future.

It’s worth noting that all we know about the deal’s timing is that it is expected to close sometime this year. There are eight months left in the year. Would the risk of holding during that period really be worth just an 8% premium to today’s price? Probably not.

It’s also worth noting that since this isn’t a company buying Twitter, there may be a lower risk of any potential antitrust issues. Further, the financials behind the deal may be simpler — and the parties easier to deal with — than if this were a merger between two companies as opposed to a buyout buy a billionaire. Nevertheless, such a large deal from a single person is uncharted territory and could pose unforeseen risks. So investors should tread carefully when considering the probability of this deal closing.

All of this to say, a strong case can be made for selling Twitter stock today. And to those thinking of buying Twitter stock today, there’s good reason to stay on the sidelines. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Elon Musk is buying Twitter. Is it time to sell? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Twitter. 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 Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The CSL Limited (ASX: CSL) dividend has remained unchanged following the company’s mixed financial performance in the first half of FY22.

Despite navigating a challenging environment dominated by the COVID-19 pandemic, the company’s results were in line with expectations.

The global biotech’s CSL Behring revenue stood the same compared to the prior corresponding period. However, its Seqirus business delivered robust results, achieving a 17% increase in revenue over H1 FY21.

Overall, CSL recorded a 2.8% drop in net profit after tax (NPAT) to US$1,760 million.

Nonetheless, the board opted to return the company’s profits to shareholders, reflecting a consistent dividend policy.

But let’s see how the CSL dividend stacks up against its rivals.

How does the CSL dividend stack up?

CSL paid an unfranked interim dividend of US$1.04 (A$1.42) per share to eligible investors last month.

When combined with its previous dividend of US$1.18 (A$1.58) apiece, this brings the total dividends over the last 12 months to US$2.22 (A$3.00). It’s worth noting that the final dividend paid in FY21 was the highest in the company’s history.

Based on the current CSL share price of $265.83, this gives a trailing dividend yield of 97%.

What about its competitors?

CSL’s largest direct competitors are internationals, namely the Spanish company Grifols and Japanese-owned Takeda Pharmaceutical Company. However, as neither are listed here in Australia, let’s compare the CSL dividend against ASX-listed Sonic Healthcare Ltd (ASX: SHL) and Ramsay Health Care Ltd (ASX: RHC).

Sonic Healthcare rewarded its shareholders with a fully franked interim dividend of 40 cents per share on 23 March. Including the prior final dividend of 55 cents equates to 95 cents per share over the 12 months.

The Sonic Healthcare share price is currently trading at $36.54, which gives it a dividend yield of 2.60%.

Ramsay Health Care distributed an interim dividend of 48.5 cents per share to shareholders late March. The company’s prior final dividend for FY21 came to $1.03 a pop, translating to a 12-month dividend of $1.515.

The Ramsay Health Care share price is trading at $82.05 at the time of writing, offering a dividend yield of 1.85%.

While comparing a dividend yield against sector peers is one point to consider when investing, it is also important to examine the total shareholder return for the past 12 months.

CSL shares have remained flat for the period, while Sonic Healthcare and Ramsay Health Care shares have climbed 1% and 22%, respectively.

CSL commands a market capitalisation of roughly $129.74 billion, making it the third largest company on the ASX.

The post How does the CSL dividend compare to its competitors? appeared first on The Motley Fool Australia.

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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. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Exchange-traded funds (ETFs) can be an effective way to invest in shares and also get diversification.

There are some ETFs that are based on an index, like the S&P/ASX 300 Index (ASX: XKO), which is tracked by the Vanguard Australian Shares Index ETF (ASX: VAS).

However, there are other ETFs that have portfolios selected through a series of rules based on quality, ethical, or other factors.

The following two ETFs have been rated as buys on a recent Livewire episode of ‘buy hold sell’:

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

The ETHI ETF has been rated as a buy by both Felicity Thomas from Shaw and Partners and Ben Nash from Pivot Wealth.

Thomas said that it is one of her favourite ETFs, partly thanks to the positive carbon screening.

Nash also likes the positive screening, noting sustainable investing is getting “more and more attention” with more fund inflows. The companies involved can benefit from the decrease in the cost of capital and this could help them perform better over the long term.

BetaShares explains that companies are selected from global ‘developed’ markets and they must meet market capitalisation and liquidity requirements. Next, companies must be in the top one-third of performers in terms of their carbon efficiency or engaged in activities that can help reduce carbon use by other industries.

Finally, a number of exclusions are then applied to the remaining businesses. For example, no fossil fuel producers; no companies significantly engaged in services like gambling, alcohol, or junk food; no companies with human rights or supply chain issues; and so on.

Some of the 200 businesses in the portfolio include Nvidia, Visa, Home Depot, Mastercard, Toyota, ASML, Cisco Systems, UnitedHealth, and Adobe.

There are four sectors that have a weighting of more than 10%: IT (with a 40.5% weighting), healthcare (17.2%), financials (15.4%,) and consumer discretionary (13.1%).

VanEck MSCI International Quality ETF (ASX: QUAL)

This is an ETF that is provided by VanEck, which has a focus on quality international businesses. It’s rated as a buy by Felicity Thomas because of its exposure to quality companies with “high revenue growth and a solid balance sheet”.

VanEck says this ETF is about accessing the world’s highest quality companies based on key fundamentals including a high return on equity, earnings stability, and low financial leverage.

The ETF provider also points to its “outperformance potential”. It noted that “investments focused on companies with quality characteristics have delivered outperformance over the long term relative to global equity benchmarks”.

It was invested in around 300 names at the end of March 2022. Its biggest positions at the end of the last month were: Apple, Microsoft, Nvidia, Meta Platforms, Johnson & Johnson, Alphabet, UnitedHealth, Visa, and ASML.

The QUAL ETF has outperformed the MSCI World ex Australia Index by an average of more than 3% per annum over the past five years, though past performance is not a reliable indicator of future performance. It has an annual management fee of 0.40%.

The post 2 top ETFs rated as buys for May appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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. owns and has recommended Adobe Inc., Alphabet (A shares), Apple, Cisco Systems, Mastercard, Meta Platforms, Inc., Microsoft, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Johnson & Johnson and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Apple, Mastercard, Meta Platforms, Inc., and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vanguard Australian Shares High Yield ETF (ASX: VHY) has been outperforming the broader market in 2022.

It’s gained around 3.3% year to date while the S&P/ASX 200 Index (ASX: XJO) has slipped 3.5%.

The exchange-traded fund (ETF) aims to invest in high-quality dividend paying stocks, housing many of the ASX’s biggest names.

Right now, the ETF is trading at a share price of $68.29.

Currently, the $2.33 billion ETF is invested in 64 ASX shares. Let’s take a look at which stocks it’s holding.

Vanguard Australian Shares High Yield ETF‘s holding

The Vanguard Australian Shares High Yield ETF boasts an equity yield of 5.75% as of 31 March, with 40% of its holdings housed in one sector.

That is, the financial sector. The ASX 200’s ‘big four’ banks and Macquarie Group Ltd (ASX: MQG) make up 5 of the ETF’s top 10 holdings.

Though, its largest holding is in BHP Group Ltd (ASX: BHP). The mining giant’s stock makes up around 10.75% of the ETF’s holdings.

Its holding in Commonwealth Bank of Australia (ASX: CBA) only just trails that figure. It comes in at 10.3% of the ETF.

Its top 10 investments are rounded out by retail conglomerate, Wesfarmers Ltd (ASX: WES); telco, Telstra Corporation Ltd (ASX: TLS); miner, Rio Tinto Limited (ASX: RIO); and toll road operator, Transurban Group (ASX: TCL).

Another 3 ASX dividend shares each makeup more than 2% of the fund – they are iron ore producer, Fortescue Metals Group Limited (ASX: FMG); oil and gas icon, Woodside Petroleum Limited (ASX: WPL), and supermarket giant, Coles Group Ltd (ASX: COL).

Finally, 2 more stocks make up more than 1% of the fund – gas pipeline operator, APA Group (ASX: APA) and miner, South32 Ltd (ASX: S32).

Sadly, while the Vanguard Australian Shares High Yield ETF has gained more than 3% this year, its ‘sibling’, the Vanguard Australian Shares Index ETF (ASX: VAS), has slumped 4.25%.

The post Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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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 owns and has recommended APA Group, COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. 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 Bruce Jackson.

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The CSR Ltd (ASX: CSR) share price has travelled in circles over the past 12 months amid a challenging environment.

Overall, the building products company’s shares have remained steady over the past 12 months. The volatility can be attributed to the COVID-19 pandemic which previously caused disruptions to CSR’s operations.

Nonetheless, management has steered the business to perform financially following good manufacturing performance and ongoing cost discipline.

With the company’s full-year results around the corner, is now the time to pick up CSR shares?

What to expect for the upcoming FY22 result?

In November 2021, CSR noted that building activity grew in line with expectations going into the new calendar year.

While there are fewer trading days in the second half, management expects elevated activity due to the traditional seasonality of the building industry.

The diversified nature of its building products business is well-positioned for the current trading period and beyond. This is supported by the company’s continued focus on maximising market opportunity, executing strategy, and maintaining cost and operational discipline.

In its property portfolio, EBIT for the year ending March 2022 (YEM22) is expected to be around $34 million. This reflects a massive increase when compared to the $6.6 million achieved in H1 FY22.

In its aluminium business, EBIT for YEM22 is expected to be in the range of $35 to $41 million. However, this is assuming all other revenue and cost areas (including coal costs) are unchanged.

Broker opinions on the CSR share price

A number of analysts believe that the CSR share price offers an attractive investment opportunity.

The team at Jarden initiated an outlook on the company’s shares to “overweight”, with a price target of $6.70. This implies a potential upside of almost 10% based on the current CSR share price.

In addition, Citi slashed its rating by 5.7% to $6.63 which also represents a similar upside for investors.

The most bullish broker, Macquarie, lifted its price target by 5.4% to $6.80 on the company’s shares.

It seems the above brokers believe the CSR share price still has room to grow in the near-term future.

CSR share price snapshot

When looking year to date, the CSR share price has nudged up almost 3% in value.

The company has a price-to-earnings (P/E) ratio of 12.20 and commands a market capitalisation of roughly $2.93 billion.

The post Is the CSR share price fully valued in April 2022? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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 Bruce Jackson.

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The Whispir Ltd (ASX: WSP) share price is pushing higher on Wednesday.

This follows the release of a strong quarterly update by the communications workflow platform provider, which has helped its shares avoid the tech selloff.

At the time of writing, the Whispir share price is up 2% to $1.54.

Whispir share price higher on strong quarterly growth

• Annualised Recurring Revenue (ARR) up 24.1% year on year to $62.4 million
• Quarterly cash receipts up 81.6% over the prior corresponding period to $19.8 million
• Free cash outflows for the quarter of $5.6 million
• Cash on hand of $31.2 million

What happened during the quarter?

For the three months ended 31 March, Whispir reported an 81.6% increase in quarterly cash receipts to $19.8 million. And while this was down 22% on the previous quarter, it was in line with management’s expectations. It notes that the previous quarter benefited from COVID vaccine rollout programs.

Despite this, the company’s ARR grew both quarter on quarter and year on year. Whispir ended the period with ARR of $62.4 million, up 4% from the end of December and 24.1% from a year earlier. This was supported by the addition of 82 new customers during the period.

Another positive was that Whispir’s cash outflows reduced as cost efficiencies and savings were realised. The company reported free cash outflows for the quarter of $5.6 million, which was in line with expectations. This was driven largely by a 47% reduction in administration and corporate costs to $2.2 million.

Whispir’s Founder and CEO, Jeromy Wells, commented: “We have had an exceptional three quarters, and I fully expect our sales momentum to continue into the last quarter, which is traditionally the strongest quarter of the year for Whispir. Our sales momentum, combined with savings delivered from operational efficiencies, provide line of sight to sustainable profitable operations.”

Outlook

Also supporting the Whispir share price today was the company’s outlook statement.

Management revealed that the company continues to be on track to meet its FY 2022 guidance, with revenue trending towards the upper end of the guidance range to $68 million.

The post Whispir share price avoids tech selloff and pushes higher amid strong quarterly update appeared first on The Motley Fool Australia.

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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. owns and has recommended Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

At long last, it’s official: Barring a shareholder revolt or a veto by regulators, Tesla (NASDAQ: TSLA) CEO Elon Musk will be buying Twitter (NYSE: TWTR) in a deal valued at $44 billion.

Investors in the electric-car superstar are apparently upset, and as of 10:12 a.m. ET on Tuesday, shares of Tesla were down 7%.

So what

Why the price drop? After all, as investment bank Wedbush sighed in relief today, Musk’s successful bid for Twitter should put an end to this “soap opera.” Wedbush doesn’t think there will be any regulatory objections, in which case Musk and Tesla should be able to get back to building electric cars and growing their profits. 

But Reuters this morning reminded Tesla investors of one potential “Chinese headache” that could arise from Musk’s Twitter deal. To wit, one quarter of Tesla’s sales come from China, and the company produces half of its cars at its Shanghai Gigafactory (with many of those cars currently being exported). China’s Global Times accentuated the point, noting how important the Chinese market is to Tesla’s growth ambitions, producing 53% sales growth in the first quarter.

If the same CEO who controls Tesla also comes to control Twitter, and someone on Twitter says something that the Chinese government doesn’t like, China might now be tempted to punish Tesla in order to gain leverage over what Musk allows (or doesn’t allow) to be said on Twitter.

Now what

That’s the headache that Reuters predicts, and it’s already producing pain for Tesla stock. But how worried should Tesla investors be about this possibility?

Perhaps not as worried as they are, I suspect. It’s not really a question of if China decides to pressure Tesla for views it disapproves of. It has already pressured the company many times before, generally to promote its own domestic automakers at Tesla’s expense.

Yet Musk and Tesla have navigated these obstacles with aplomb to date. After all, China might need Tesla as much as Tesla needs China, limiting the pressure it can bring. The $13.4 billion in revenue Tesla produced in the country last year generates tax revenue for the Chinese government. The Shanghai Gigafactory is also ramping up toward providing a total of 19,000 jobs.    

Plus, although Tesla’s revenue grew 53% in China last year, its revenue grew 80.5% worldwide. As time goes on, I think China is going to be less significant to Tesla’s growth trajectory, rather than more, and worries about China’s political power over Tesla will dwindle as well. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock just crashed 7% appeared first on The Motley Fool Australia.

More reading

• Why Dogecoin is rising today
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. 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 Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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There have been some very painful sell-offs for some ASX shares in the last few months.

Sometimes a decline can mean that the company is now an opportunity and is in the ‘buy zone’.

However, just because a business has fallen heavily doesn’t mean it’s going to rebound rapidly.

With that in mind, these are two ASX shares that brokers think are opportunities.

City Chic Collective Ltd (ASX: CCX)

Since the start of 2022, City Chic shares have fallen by more than 50%.

The business sells plus-size clothes, footwear and accessories to women in multiple regions.

City Chic operates under a number of different brands in different countries. In the United States it has its Avenue business, in the United Kingdom is Evans, and in the European Union it has its Navabi brand. City Chic products are sold in its store network locally, and through partnerships and online in the northern hemisphere.

City Chic has been reporting revenue growth. In the first half of FY22, sales increased by 49.8% to $178.3 million. However, one-off COVID impacts meant that underlying net profit after tax (NPAT) was roughly flat at $14 million.

The company said that it has continued to grow sales in the first eight weeks of the second half of FY22. US growth continues, while the UK and EU are showing signs of a recovery. The ASX share is developing new ranges with existing partners and onboarding new partnerships in the second half and into FY23.

It’s currently rated as a buy by several brokers, including Citi, which has a price target of $3.70 on the business. That implies a possible upside of around 40% over the next year. It acknowledges short-term growth may be slowing, but it sees attractive long-term growth for the business.

At the current City Chic share price, it’s valued at 18x FY23’s estimated earnings, according to Citi. It could also start paying a dividend in FY23.

BWX Ltd (ASX: BWX)

Since the start of 2022, the BWX share price has fallen by around 55%.

It has a number of natural beauty brands and businesses. Its beauty brands include Sukin, Mineral Fusion, Andalou Naturals, Nourished Life and Go-To Skincare. And it has two e-commerce platforms, Nourished Life and Flora & Fauna.

The business is growing. In the FY22 half-year result, it generated revenue growth of 26.5% to $106.9 million and underlying NPAT increased 22.1% to $4.7 million.

One of the ways that BWX is laying the foundation for growth is by increasing its global points of distribution. In HY22, this increased by 21% year on year to 1.6 million. It’s aiming to reach 2 million by the end of FY22.

It also wants to increase its direct-to-consumer sales – total online sales contributed 41% of total revenue for HY22.

BWX expects “strong” underlying revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) growth in FY22. The ASX share said this outlook was supported by sales momentum in the second quarter of FY22, which has continued into the third quarter of FY22.

Its new facility in Clayton will also be a “significant” enabler of greater efficiency across its operations and financial management. It said it will keep reinvesting this leverage back into its brands to support longer-term value creation.

The BWX share price is rated as a buy by Citi, with a price target of $4.90. That implies a potential increase of more than 150%.

The post Brokers: 2 beaten-up ASX shares to buy next month appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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