Tag: Motley Fool

The Syrah Resources Ltd (ASX: SYR) share price is surging this morning and is now up 18.95% at $1.868 apiece.

Investors are reacting to a company announcement from Syrah today advising the market it has been offered a conditional loan from the US Department of Energy (DOE).

What did Syrah announce today?

The Syrah Resources share price is skyrocketing after the company said it has finalised a non-binding term sheet for a conditional US$107 million loan from the DOE.

Syrah notes the loan will be used “to fund the initial expansion of its Vidalia active anode material facility in Louisiana to 11.25ktpa AAM production capacity”.

The facility will be open to the group’s subsidiary, Syrah Technologies. The proposed loan is to be made under DOE’s Advanced Technology Vehicles Manufacturing (ATVM) loan program in support of US President Joe Biden’s critical minerals strategy.

The loan’s term sheet states it is for a maximum of US$107 million with “a term of up to approximately 10 years from financial close”.

“[The] DOE has US$17.7 billion in uncommitted loan authority under the ATVM program to support the manufacture of eligible advanced technology vehicles including electric vehicles (EVs), and qualifying components and materials, in the USA,” it said.

“If finalised, the loan to Syrah Technologies would be the first from the ATVM loan program since 2011 and the first ever from the ATVM loan program to a materials processing facility,” it added.

“Other recipients of funding from the ATVM loan program include Ford, Nissan, and Tesla.”

To fund the remaining $165 million of the Vidalia project, Syrah says it will use proceeds obtained from the equity raising completed earlier this year.

Speaking on the announcement fuelling the Syrah Resources share price, managing director and CEO Shaun Verner said:

The finalisation of a term sheet and offer of a Conditional Commitment from DOE for a loan under the ATVM program highlights Vidalia’s strategic position in the USA and provides strong validation of Syrah, Vidalia and the Vidalia Initial Expansion. Importantly, the loan will allow Syrah to accelerate its growth strategy in its downstream business and support the rapidly growing EV and battery supply chain in the USA.

In the last 12 months, the Syrah Resources share price has spiked 78% after some wide-reaching volatility. This year to date, however, it has slipped 3%.

The post Syrah Resources share price booms 19% amid show of US support appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX travel shares of 2022 so far
• Here’s why the DGL share price is soaring 9% on Tuesday
• What’s happening to the Boral share price today?
• Down 20% in 2022, is the Wesfarmers share price a clear opportunity?
• Why Bitcoin, Ethereum, Dogecoin, and Shiba Inu dropped today

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.

from The Motley Fool Australia https://ift.tt/nHTqgl1

Many Australians have finally retaken to the skies in 2022 — and these ASX travel shares are lapping up the nation’s enthusiasm.

Australia’s international borders fully reopened in February, with the country welcoming back international tourists for the first time since March 2020.

And, during the Easter break, airports Australia-wide reportedly saw their highest levels of demand from holidaymakers in two years.

So, which ASX travel shares are taking advantage of 2022’s positive momentum? Let’s take a look.

This year’s top-performing ASX travel shares

A quick note: This list only considers ASX travel stocks with market capitalisations of more than $50 million.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has bested its ASX travel peers over 2022 so far, gaining 21% year to date.

That’s despite the only news from the company in that time – its half-year earnings – sending its share price 10% lower.

Additionally, short-sellers are likely irritated by recent gains in Flight Centre’s stock.

The company remains one of the ASX’s most shorted shares, with an 18.01% short interest as of The Motley Fool Australia’s latest short-selling update.

At the time of writing, the Flight Centre share price is $21.39, 0.99% higher than its previous close.

Webjet Limited (ASX: WEB)

Again, much to the disappointment of short-sellers, another of the ASX’s most shorted shares has come in as one of the top-performing travel stocks of 2022 so far.

The Webjet share price has gained around 13.93% this year, despite having a short interest of 8.8% at last count.

It’s currently trading at $5.87, 0.34% higher than its previous close.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price is also performing well in 2022. It’s come in as the third-best ASX travel stock of this year so far.

The company’s stock has gained 13.73% year to date, having been boosted 7.5% higher on its half-year results.

Additionally, the company completed a major acquisition earlier this month.

It’s now home to what was previously Helloworld Travel Ltd (ASX: HLO)’s corporate and entertainment travel businesses.

Right now, Corporate Travel Management’s stock is trading at $24.89, 0.12% higher than it was at the end of Thursday’s session.

Helloworld Travel (ASX: HLO)

The Helloworld Travel share price has lifted 7.97% since the start of 2022.

In that time, the company has released its half-year results, handed over its corporate and entertainment travel legs, and welcomed the planned return of international cruising.

In a recent presentation, the company noted it expects the reintroduction of international cruising, which made up more than a third of its pre-pandemic business, and the return to more normal travel patterns will help boost its bottom line.

The Helloworld share price is currently trading 1.11% higher at $2.73.

Qantas Airways Limited (ASX: QAN)

Finally, the iconic kangaroo has come in as the fifth best performing ASX travel share of 2022 so far.

The Qantas share price has gained 7.78% this year despite plenty of hiccups.

The airline pushed through COVID-19 outbreaks that saw it cut capacity in January, before its stock nose-dived 5% on its half-year earnings.

Right now, Qantas’ shares are trading for $5.41 apiece, 0.73% lower than its previous close.

The post Here are the 5 best performing ASX travel shares of 2022 so far appeared first on The Motley Fool Australia.

More reading

• The Webjet share price has dropped 9% in six months. Is now the time to pounce?
• These are the 10 most shorted ASX shares
• These were the best performing ASX 200 shares last week
• ASX 200 travel shares had a super day. What’s happening?
• Here are the top 10 ASX shares today

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. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/gX7ez8V

The DGL Group Ltd (ASX: DGL) share price is racing higher on Monday morning. This comes after the company announced an update on its full year earnings guidance for FY22.

During early morning trade, the chemical company’s shares are swapping hands at $3.82, up 9.14%.

DGL eyes strong growth for FY22

Investors are driving up DGL shares following the release of an upgraded earnings guidance by the company.

In its statement, DGL advised that favourable trading conditions have continued to run into the new financial year.

As a result, the company upgraded its earnings guidance for the period ending 30 June 2022. It expects its full year EBITDA (before deducting acquisition costs) of roughly $65 million on sales revenue of $354 million.

Previously, DGL had forecasted FY22 EBITDA to be around $54 million (before acquisition costs) on revenue of $343 million.

Management stated that revenue growth and margin expansion have been recorded for the current financial year. This is expected to continue throughout FY22 with results exceeding expectations across the group.

Whilst all three operating segments are performing well, the company’s manufacturing business has been the star performer. DGL noted that demand for products and services remains high and assets are well utilised.

DGL CEO, Simon Henry touched on the company’s improved earnings guidance, saying:

DGL’s performance so far in the financial year 2022 continues to exceed expectations. All three operating segments are performing strongly with increased activity due to market and seasonal factors.

DGL continues to successfully execute our strategy to sustainably grow through organic growth and acquiring strategically positioned businesses.

DGL share price summary

Over the past 12 months, the DGL share price has soared, representing a 279% gain for shareholders.

Throughout the year, the company’s shares have continued on an upwards trajectory, up 20%.

It’s worth noting that the DGL share price touched a record high of $3.99 today before slightly retracing.

Based on today’s price, DGL commands a market capitalisation of roughly $1.06 billion, with approximately 279.12 million shares outstanding.

The post Here’s why the DGL share price is soaring 9% on Tuesday appeared first on The Motley Fool Australia.

More reading

• 2 small-cap ASX shares to rule them all this year: experts

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 DGL Group Limited. The Motley Fool Australia has recommended DGL Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/kq6Pxn0

The Boral Limited (ASX: BLD) share price has slipped into the red today amid reports the company’s CFO and chief strategy officer will leave his position in 2022. The departure adds to a list of executive changes at the company since it was acquired by Seven Group Holdings Ltd (ASX: SVW) last year.

Boral confirmed the departure in an update provided earlier this morning.

While the announcement isn’t price sensitive in any way, it is another notch in the growth narrative of the Boral share price.

Shares in the international building and construction materials group have slipped 0.57% from the open today to currently trade at $3.47 apiece.

What did Boral announce today?

The company advised that its chief finance and strategy officer, Tino La Spina, has “ceased” in his role, with the board intending to provide notice of termination on 1 July 2022.

Boral says its current executive general manager, group finance and property, Jared Gashel, will slide in as acting CFO until new appointments are made.

Newly appointed chairman, Ryan Stokes, said Boral had been taking a long hard look at what its business “should look like” after the takeover.

Stokes commented:

We are committed to the ongoing transformation and operational improvement of Boral. With its focus now in Australia, the Board has been working with management on what the business should look like, given its reduced operational footprint and size.

In a tough external operating environment, we have decided to accelerate transformational change.

After the company released an enormous dividend earlier this year, the Boral share price has been trading sideways and is down 43% this year to date. However, it is up almost 2% over the past month.

It’s rated as a buy from analysts at Macquarie and Barrenjoey, while the consensus price target is $3.69 per share, according to Bloomberg data.

Meanwhile, analysts at Credit Suisse, Morgan Stanley, Jefferies, and JP Morgan rate it as a hold right now. Only one firm, Barclay Pearce, urges its clients to sell off Boral shares.

The post What’s happening to the Boral share price today? appeared first on The Motley Fool Australia.

More reading

• Top broker warns this ASX 200 share may be next to issue a profit warning
• Is Boral an ASX dividend share?
• Why did the Boral share price have such a lousy month in March?
• These were the worst performing ASX 200 shares during the first quarter
• Why did the Boral (ASX:BLD) share price have such a positive day?

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.

from The Motley Fool Australia https://ift.tt/624eXx5

The Wesfarmers Ltd (ASX: WES) share price has dropped by almost 20% since the start of the year. It begs the question: could the ASX blue chip share now be a buying opportunity?

A business isn’t necessarily a buy just because it drops in value, but it can help improve the margin of safety. In the investment world, that’s the concept of how much cheaper an investment is compared to what an investor believes the intrinsic/underlying value is. The idea is that a larger margin of safety can reduce the likelihood of a loss with the investment.

Analysts weren’t exactly excited by the company’s FY22 half-year result, which wasn’t as pleasing as expected.

For example, UBS noted that COVID-19 hurt the company with elevated costs and multiple store closures. The supply chain was also severely disrupted and this continues.

What did it report in February?

Excluding “significant items”, Wesfarmers reported that revenue fell 0.1% to $17.76 billion, earnings before interest and tax (EBIT) dropped 12.3% to $1.9 billion, and the net profit after tax (NPAT) declined 14.2% to $1.2 billion. Some investors use profit as the metric to value the Wesfarmers share price.

The first half was “the most disrupted period” of COVID-19 for Wesfarmers.

The company continued to provide paid pandemic leave to team members, including all permanent and many casual employee through periods of prolonged lockdown. This was even when there was no meaningful work for them and when they were required to isolate. This totalled $37 million in the half.

The company said that sales momentum improved as lockdowns and other restrictions were eased, though the Omicron COVID-19 variant then had a negative impact on foot traffic.

Wesfarmers also pointed out that ongoing constraints in global supply chains led to delays and additional costs, including higher container shipping expenses during the half. Domestic supply chains were also impacted.

There was a mixed performance in terms of the underlying earnings before tax (EBT) within different divisions. Bunnings EBT was almost flat, down 1.2% to $1.26 billion. Kmart Group (which includes Kmart, Target and Catch) saw EBT sink 63.4% to $178 million, Officeworks EBT fell 18% to $82 million, Wesfarmers chemicals, energy and fertilisers (WesCEF) EBT jumped 36.3% to $218 million, and the industrial and safety EBT rose 10.8% to $41 million.

Is the Wesfarmers share price an opportunity?

Wesfarmers thinks the overall economic conditions in Australia remain favourable, supported by “strong” employment and high levels of accumulated household savings. It’s actively managing increasing inflation pressures and says it will “leverage its scale to mitigate the impact of rising costs”. It’s also going to focus on price leadership for customers.

The company said that retail trading conditions were subdued in January but trading momentum improved in February.

Wesfarmers recently completed the acquisition of Australian Pharmaceutical Industries. This will be the foundation of a new health division, which will also look at the wellbeing and beauty sectors.

The broker Morgans thinks that the Wesfarmers share price is an opportunity, rating it as a buy with a price target of $58.50. Both the broker and management think the company will do well once COVID-19 impacts subside.

On Morgans’ numbers, Wesfarmers shares are valued at 22x FY23’s estimated earnings with a projected FY23 grossed-up dividend yield of 5.3%.

The post Down 20% in 2022, is the Wesfarmers share price a clear opportunity? appeared first on The Motley Fool Australia.

More reading

• Why has the Woolworths share price outperformed Wesfarmers so far in 2022?
• Here are the ASX retail share winners and losers of the last quarter
• Should you buy the dip in the Wesfarmers share price?
• Here are 2 excellent ASX 200 shares analysts rate as buys
• Can Wesfarmers shares deliver an attractive dividend yield AND 20% upside in 2022?

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

from The Motley Fool Australia https://ift.tt/gSvJKn3

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 

Cryptocurrency investors woke up to a down market on Monday, which just happens to also be tax day in the U.S. In a volatile market like crypto, it seems like every day is either up or down big and today the sellers are winning. 

Bitcoin (CRYPTO: BTC) had fallen as much as 4.1% as of noon ET, while Ethereum (CRYPTO: ETH) dropped up to 5.8%, Dogecoin (CRYPTO: DOGE) fell 6.9%, and Shiba Inu (CRYPTO: SHIB) fell up to 8%. The selling was widespread so there’s no reason to be especially worried about any particular cryptocurrency. 

So what 

It’s hard to ignore that today is tax day in the U.S. Crypto traders may be selling in order to pay taxes due, which can be surprising if this is your first time paying taxes on large trading gains. 

Over the weekend there was also news of a $182 million hack of the Beanstalk protocol, a stablecoin credit protocol built on Ethereum. This continues a series of hacks of cryptocurrencies across the industry, which undermines investor confidence in the ecosystem. This is an industry wide problem and it doesn’t seem that there’s a great solution right now.

The stock market overall is down today as well and that has generally meant that more volatile cryptocurrencies will magnify those losses. 

Now what 

Volatility is the name of the game in cryptocurrency and that doesn’t seem to be changing anytime soon. Search the internet and you can find analysts and investors who are afraid of inflation, or regulation, or hacking, while others are bullish for reasons that range from innovation to crypto being an inflation hedge. 

For today, I don’t see anything to be worried about in any of these cryptocurrencies. Given the trends of the industry, I think Ethereum is the best bet given the real utility that can be built in the ecosystem and the projects being built there already. Bitcoin, Dogecoin, and Shiba Inu simply can’t claim the same kind of digital ecosystem. 

If today’s selling is indeed due to tax season or the down stock market this could be a good buying opportunity for investors. Nothing has fundamentally changed about crypto today and we’re seeing the industry build more and more applications every day. We are also likely to get some regulatory updates in the U.S. and Europe this year, which could be a boost to the industry’s development long-term. 

When I see moves like this today I tend to brush them off because nothing about cryptocurrencies is fundamentally different than a day ago. It’s just that current portfolios are a little lower for the time being. 

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

The post Why Bitcoin, Ethereum, Dogecoin, and Shiba Inu dropped today appeared first on The Motley Fool Australia.

More reading

• 3 reasons Robinhood’s addition of Shiba Inu doesn’t matter
• Why Bitcoin and Ethereum were rising on Wednesday
• How Bitcoin will hit $100,000 by the end of the year: expert
• Why crypto investors are watching this key Bitcoin price level
• Why Shiba Inu is soaring today

Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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.

from The Motley Fool Australia https://ift.tt/dDIWk32

ASX growth shares could be interesting opportunities after such heavy declines in the ASX share market.

Businesses that are now much cheaper but growing strongly could still be worth looking at.

While revenue growth isn’t the only important thing, it can help with aspects such as operating leverage and re-investment for more growth.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price has fallen by 27% since the start of 2022.

This ASX growth share describes itself as a financial technology services company. It’s a superannuation fund trustee and an administration business. It provides superannuation products, investor-directed portfolio services, managed accounts, and managed funds.

Despite all of the market volatility and disruption, the company continues to experience growth.

In the quarter for the three months to 31 March 2022, its funds under administration (FUA) reached $57.6 billion, a 37.6% increase year on year. During the quarter, it experienced net inflows of $2.6 billion, an increase of 16%.

It also had $13.8 billion of funds under management (FUM) at 31 March 2022. The last quarter saw FUM net inflows of $0.5 billion.

The company boasts of leading the industry for FUA net inflows. It saw the largest FUA net inflows of $13 billion for the 12-month rolling period to 31 December 2021.

Netwealth said its market share increased to 5.5% at 31 December 2021, “up 1.1%” over the 12 months.

In terms of the outlook, the company says its pipeline and win rate for new business remains “very strong” across all market segments. In the fourth quarter, which is between April to June, it said it would launch its new non-custodial administration service, further enhancing its capabilities.

Netwealth still believes its FUA net inflows for FY22 will be more than $13.5 billion.

The ASX growth share says it’s highly profitable, generates “exceptional” cash flow, has very high levels of recurring revenue, very low capital expenditure, is debt-free, and has “significant” cash reserves.

Cettire Ltd (ASX: CTT)

Cettire describes itself as a global online retailer, which sells a large selection of personal luxury goods. It has a catalogue of more than 1,700 luxury brands with more than 200,000 products of clothing, shoes, bags, and accessories.

The Cettire share price has fallen by 74% since the start of the calendar year.

In the first half of FY22, the company grew sales revenue by 181% to $113.7 million and the ‘delivered margin’ increased by 118% to $24.7 million. Operating cash flow rose 43% to $12.3 million.

Its growth continued into the second half of the year, with January 2022 gross revenue growing by 242%.

The company points to several areas of further growth potential. Its mobile apps “provide scope to improve and optimise the transaction flow and support improved conversion rates over time”.

It’s expanding into the beauty and children product categories. The ASX growth share is entering the mainland Chinese market and has gone into a partnership with the huge online retailer JD.com.

The post Are these 2 compelling ASX growth shares buys? appeared first on The Motley Fool Australia.

More reading

• Netwealth share price falls after third quarter update disappoints
• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of the quarter
• Here’s a look at the laggards from ASX tech shares last quarter
• These were the worst 3 ASX All Ordinaries shares to hold during the March quarter

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

from The Motley Fool Australia https://ift.tt/PFshk1w

Many investors are keen to hunt for ASX dividend shares on the Australian Stock Exchange.

As always, some businesses are thriving while others are experiencing share price declines.

However, a share price and a dividend can behave differently. Businesses can often have the capability of providing a fairly consistent payout to investors despite fluctuations in the share price.

With that in mind, here are two ASX dividend shares to think about:

Ansell Limited (ASX: ANN)

Ansell describes itself as a world leader in providing superior health and safety protection solutions. The company has two main business segments: industrial and healthcare. It claims to be the market leader with operations across the world and customers in more than 100 countries. One of its main products is protective gloves.

The company recently declared an interim dividend of US 24.25 cents per share, representing a dividend payout ratio of around 40%. This was consistent with the company’s dividend policy.

Ansell’s last two dividends amount to a dividend yield of 3.7%.

Since the start of 2022, the Ansell share price has fallen by 23%.

The company’s FY22 half-year result included some mixed numbers.

Sales increased by 7.6% to $1 billion, with the healthcare division seeing organic growth of 14.8%. Surgical and life sciences continued to see revenue growth, however, exam and single-use sales volumes dropped and pricing reduced.

The industrial unit saw organic sales decline by 2.9%. A “positive” performance from mechanical was more than offset by lower sales of chemical protective clothing due to a reversal of COVID-19 related benefits.

Ansell’s earnings before interest and tax (EBIT) fell 24.3% in the half-year. It was impacted by factors including having to sell high-cost examination and single-use inventory from outsourced suppliers at lower prices, COVID-related manufacturing disruptions, and higher freight costs.

The ASX dividend share is expecting some improvement in the second half, with outsourced supplier costs expected to reduce. It’s also expecting COVID manufacturing impacts to be less in the second half of FY22 compared to the first half.

In the longer term, the company is expecting volume growth as end-user and distributor inventories normalise. It also said “longer-term margins should benefit with greater contribution from in-house differentiated manufacturing”.

Ansell also said that it expects continued favourable demand conditions for the surgical and life science businesses and success with strategic growth initiatives for the industrial segment.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT). It owns a diversified portfolio across different sectors including cattle, almonds, macadamias, vineyards, and cropping (cotton and sugar).

The business has a key goal of growing its distribution to investors by at least 4% per annum. It has been successful with this goal each year since it listed several years ago.

One of the drivers of increasing distributions from the ASX dividend share is its organic rental increases that are built into the contracts. Some contracts have fixed rental increases, while others are linked to CPI inflation. Some of these contracts have periodic market reviews.

Another way that Rural Funds can grow its distribution is through investing in productivity improvements at the farms. Examples of that include increased water access, improved irrigation, orchard development, and grazing areas.

In FY22, it’s expecting to pay a distribution of 11.73 cents per unit. That translates into a distribution yield of 3.8% for FY22.

The post 2 top ASX dividend shares to think about appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with great yields to beat inflation
• 2 ASX dividend shares with attractive yields
• 5 ASX shares that could be primed for takeovers in 2022: Wilsons
• 2 defensive ASX dividend shares offering reliable income
• Here are 2 ASX dividend shares with attractive yields

Motley Fool contributor Tristan Harrison owns RURALFUNDS STAPLED. 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 RURALFUNDS STAPLED. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The fund managers at Wilson Asset Management (WAM) have told investors about two compelling ASX shares that are in the portfolio.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

The WAM Capital portfolio has delivered an investment return of 15.8% per annum since its inception in August 1999, before fees, expenses and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAO) return of 8.7% per annum over the same time frame.

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

ALS Ltd (ASX: ALQ)

ALS is described by WAM as a business that provides laboratory testing, inspection, certification, and verification solutions and services across multiple industries in more than 65 countries.

The fund manager noted that last month ALS revealed an upgrade to its guidance for FY22. The underlying net profit after tax (NPAT) guidance is now for a range between $260 million and $265 million.

WAM noted that the midpoint of this net profit guidance represents a 6.3% increase on the previous guidance. The cause of the increased guidance was “strong” geochemistry sample volume growth and price improvements within the ALS minerals division. There was also additional volume growth above pre-pandemic level volumes in the ALS life sciences division.

Wilson Asset Management’s outlook for the company remains “strong,” and it believes the ASX share will continue to benefit from increased demand for mineral exploration services over the medium-term.

Brickworks Limited (ASX: BKW)

Brickworks was the other business named by WAM. It makes a diverse range of building products in Australia and North America.

In March 2022, Brickworks announced its FY22 half-year result which included a record half-year statutory NPAT of $581 million. This was a 720% increase from the prior year and was reportedly better than what the market had been expecting.

WAM also noted that the ASX share’s building material manufacturing division in Australia saw earnings before interest and tax (EBIT) jump by 66% to $27 million. The fund manager pointed out this was due to increasing sales momentum after COVID-19 lockdowns.

The fund manager believes that the industrial trust that Brickworks owns half of with Goodman Group (ASX: GMG) continues to be undervalued by the market even though there has been sustained growth which has been fuelled by the stronger tailwind for e-commerce.

Wilson Asset Management is positive on Brickworks, particularly because further sales of land into the property trust will lead to a large rise in rental income, helping grow earnings by double-digits for this division.

The post 2 ASX shares rated ‘buy’ by this top fund manager appeared first on The Motley Fool Australia.

More reading

• Bricks and steel: expert reveals 2 ASX shares ready to skyrocket
• Is it time to buy these 2 quality ASX shares?
• Why is the Brickworks share price sliding on Monday?
• 5 things to watch on the ASX 200 on Monday
• Here’s a look at some ASX shares with ex-dividend dates coming up in April

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

from The Motley Fool Australia https://ift.tt/5PfBdt2

With finance and mining dominating the S&P/ASX 200 Index (ASX: XJO), agriculture and related sectors hardly get a look in from investors.

But UBS Group AG (SWX: UBSG) just named a couple of such ASX shares among its “best ideas”.

Market Matters portfolio manager James Gerrish agree with UBS’ picks, so let’s take a look at why he rates them as buys at the moment:

You must be nuts to ignore this stock

Falling almond prices have punished the Select Harvests Limited (ASX: SHV) share price, to the tune of a 33% drop since September 2021.

The shares went into the Easter long weekend at $5.96.

Gerrish likes the risk-reward balance for the stock if you can pick it up for less than $6.

“As we know, agriculture is a very cyclical game, and low prices tend to work themselves out,” he said in his newsletter.

“Major almond growing regions in California are now in the grips of a tough drought, and while global supply chains remain an issue, improvement here would be a positive catalyst.”

UBS and Gerrish aren’t the only ones bullish on the almond grower.

According to CMC Markets, all four analysts surveyed rated Select Harvests shares as a “strong buy”.

You must be drunk to ignore this stock

What a crazy couple of years Treasury Wine Estates Ltd (ASX: TWE) has had.

Just as the share price was recovering from the March 2020 COVID-19 market crash, it was hit by a negative force beyond its control.

Australia challenged China to allow an independent study on the pandemic’s origins, and China retaliated with punitive trade tariffs.

It brought local businesses that export to the biggest market in the world to their knees.

Gerrish remembers it well.

“Treasury Wines has had its challenges over the past few years, largely a result of its reliance on the Chinese market that saw the company caught up in a diplomatic spat that quickly whipped ~60% off its share price.”

The company has since sought to diversify its geography, and the latest reporting season showed this was successful.

“In February, they reported improved trends, particularly in America — while their high margin, premium brand business did particularly well,” said Gerrish.

“Since then, the market has lost some interest. However, we think Treasury Wines will emerge from a difficult period with a stronger business overall that will enjoy better returns as the world gradually gets back to normal.”

The Treasury share price is now just 13% down from its pre-China crisis high.

It went into the Easter weekend at $11.10.

Gerrish likes it as a buy at around the $11 mark.

“While it doesn’t ‘scream value’ on an estimated P/E of 24x, earnings have been depressed and [year-on-year] growth from this new base of 20% is very achievable.”

The post 2 ASX shares ripe to buy at current prices: expert appeared first on The Motley Fool Australia.

More reading

• Top broker tips Treasury Wine share price to rise almost 25%
• Leading brokers name 3 ASX shares to buy today
• Why Boss Energy, GrainCorp, Pro Medicus, and Select Harvests are pushing higher
• Can the Treasury Wine share price have a better month in April?
• 3 more of the ‘best’ ASX 200 shares to buy this month: Morgans

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/MfYsx8q