Tag: Motley Fool

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.

Shopify (NYSE: SHOP) just joined Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), and Tesla (NASDAQ: TSLA) in announcing stock splits. Shares of the e-commerce software company will undergo a 10-for-1 split, and a “founder’s share” for co-founder and CEO Tobi Lütke is also being proposed (which would give Lütke 40% of total Shopify voting power).

Companies split their stocks for good reasons, like to better manage stock-based compensation to employees or share buybacks. However, a stock split by itself doesn’t change a company’s fundamental value, so business health should be assessed rather than stock price when contemplating a buy. With that in mind, here’s why each of these stock split companies is a worthwhile long-term buy-and-hold right now. 

1. Shopify: A 100-year mission still early in its development

I’ll start with Shopify, because this is my favorite company among the stock split candidates discussed here. I believe this stock also has some of the biggest upside potential in the next decade and beyond. 

Shopify is on a “100 year mission to make commerce better for everyone.” Since its IPO in 2015, shares are up over 2,300%, and that’s despite the recent 60%-plus sell-off from all-time highs. Suffice to say the journey has been highly profitable so far. Shopify’s software suite helps aspiring entrepreneurs, small businesses, and fast-growing retail brands manage their sales online and via traditional in-person channels. Services include everything from website management to social media marketing to digital payment acceptance. 

Shopify’s focus over the next couple of years will be scaling its Fulfillment Network, local warehouses from which Shopify users can manage inventory and quickly ship orders to customers. In an era of fast fulfillment, giving small merchants similar shipping options as bigger retailers will be a big challenge for Shopify — but one that could be highly profitable if it can pull it off. 

Given the expectation for continued double-digit percentage growth, Shopify stock appears cheap at just 27 times trailing 12-month earnings. It isn’t, especially considering Shopify Fulfillment Network is going to cost about $1 billion to build over the next few years. Nevertheless, this company has proven its worth in the retail world, and it has a mission that aligns with the benefit of its large and expanding user base. Shopify looks like a fantastic buy right now ahead of its proposed stock split.

2. Alphabet: The internet is a secular growth megatrend

In July, Google parent company Alphabet will undergo a 20-for-1 stock split. The last time the internet search leader underwent such activity was in 2014. Since then, Alphabet shares have risen over 350%.

There are plenty of reasons to believe Alphabet will continue to provide steady growth for many years to come. For one thing, its bread-and-butter business selling digital ads is still steadily gobbling up global market share of the overall advertising industry (on pace to reach $1 trillion a year in global spending). Digital ads have a lot of benefits for marketers, and they’re highly profitable for Google. 

Alphabet is using those profits from its core Google business (“Google Services” generated an operating profit margin of 37% in 2021) to fuel lots of other projects. Google Cloud is chief among them. Organizations are migrating their IT workloads to data centers and adopting cloud-based services, providing Google with a second secular growth megatrend beyond just digital ads. Add in Google Payments, YouTube, various subscription services, self-driving cars, and more, and Google has no shortage of directions to take its business. 

Plus this is one of the deepest-pocketed organizations around. Alphabet had $140 billion in cash and short-term investments on hand at the end of 2021, offset by debt of only $14.8 billion. Trading for just 26 times trailing 12-month free cash flow, Alphabet stock looks like one of the best long-term values out there right now.

3. Tesla: Still massive upside for the EV market

Tesla had its last 5-for-1 stock split over the summer of 2020, and shares have doubled in value since then. In recent regulatory filings, the company has indicated it will put another stock split on the table for shareholders to vote on.

The real reason to invest in Tesla right now, though, is the massive consumer migration from traditional internal combustion engine vehicles to electric vehicles. Of the nearly-67 million vehicles sold worldwide in 2021, only about 6.5 million were electric vehicles (EVs). Tesla delivered just over 936,000 vehicles in 2021.

As legacy automakers and other EV start-ups fire up their assembly lines for next-gen cars, it isn’t reasonable to expect Tesla to continue commanding such a large slice of the EV market share. However, management thinks it can continue growing sales at roughly the same rate as the EV space overall, about 50% per year, for the next few years. For an automaker that just cranked out over $45 billion worth of vehicle sales in 2021 (less environmental regulatory credits sold to other automakers), that’s an ambitious growth rate.

A few catalysts could help Tesla supercharge its way to $100 billion in annual sales and beyond. Its new Gigafactories in Berlin and Austin, Texas, are now live. Though temporarily shuttered due to a coronavirus outbreak, the Gigafactory in Shanghai will handle production in Asia. More factories are likely on the way, as are new models like the Cybertruck. At 71 times one-year forward expected earnings, fantastic execution of its expansion plans is already priced into this stock. But if you think the move to EVs will continue at a rapid pace for the next decade, there’s a lot to like about Tesla even at these sky-high prices.

4. Amazon: A fantastic allocator of capital goes on a spending spree

For in-the-know investors, Amazon’s mind-boggling run higher isn’t simply a story of e-commerce expansion. It’s true, Amazon used its early lead in selling online to its advantage, but that’s not really what has made the stock move nearly 155,000% higher since its IPO in 1997. Rather, it’s been the company’s success in allocating capital to highly profitable new projects adjacent to its e-commerce empire that has been the key ingredient to its success. 

Amazon Web Services (AWS), the cloud computing segment that started simply by “renting out” extra data center capacity from the e-commerce segment, generated only 13% of all revenue last year. However, AWS operating profit accounted for 75% of Amazon’s grand total. Other services like advertising on its merchant platform accounted for much of the rest of operating income. 

Amazon spent an incredible $65 billion on capital expenditures (property, plant, and equipment) to support its long-term growth last year. With infrastructure costs only increasing thanks to inflation, that pace of spending isn’t likely to abate anytime soon. For reference, Amazon’s capital expenditures were $20 billion in 2020. The explosion in spending in support of steady expansion has put pressure on the e-commerce giant’s bottom line. Shares currently trade for 47 times trailing 12-month earnings, and 240 times trailing 12-month free cash flow.

However, if you believe Amazon will continue to be an excellent allocator of capital to the right projects at the right time, there’s a lot to like about that explosion in capital investment. Amazon is also undergoing a 20-for-1 stock split in May, but there is a multitude of longer-term reasons to buy and hold beyond this one-time stock split event. 

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

The post Shopify, Alphabet, Amazon, and Tesla stocks are splitting — which ones are the best buys? appeared first on The Motley Fool Australia.

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Nicholas Rossolillo and his clients own Alphabet (C shares), Shopify, and Tesla. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Shopify, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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 National Australia Bank Ltd (ASX: NAB) share price reached a high of $33.09 earlier today, despite experiencing some share price wobbles through the session so far.

That puts the big bank at levels not seen since late April 2017, almost five years ago. It also sees the NAB share price up 23.3% since this time last year.

And that doesn’t include dividends, mind you.

At the current price, the bank pays a trailing dividend yield of 3.8%, fully franked. Investors who bought at a lower NAB share price will be enjoying an even higher yield.

Why is the NAB share price outperforming?

Over the past month, NAB shares have gained 8.7%. That’s roughly twice the 4.4% gains posted by the S&P/ASX 200 Index (ASX: XJO) during that same period.

One of the drivers helping support all of the banks is the outlook for rising interest rates. While higher rates may cause some headwinds for their mortgage books, analysts broadly agree this will be more than offset by the higher margins banks will enjoy with rate hikes.

What happened over the past month?

Among the highlights of the month gone by, the bank completed its $2.5 billion on-market share buyback and reported it would undertake an additional on-market buyback of up to $2.5 billion.

While that didn’t boost the NAB share price on the day, it certainly drew plenty of investor attention.

Commenting on the buyback on the day, NAB CEO Ross McEwan said, “The further $2.5 billion on-market buyback announced today supports our ambition to reduce the share count and increase sustainable ROE [return on equity] benefits for our shareholders.”

National Australia Bank also received some positive broker coverage following the buyback announcement.

Bell Potter retained its buy rating and lifted its target for the NAB share price to $34.50. That’s 4.6% above the current price and would represent more than 5-year highs.

The bank also pays a 3.9% trailing dividend yield, fully franked.

The post NAB share price lifts again to hit new 4-year high 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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It might be the end of the road for Buddy Technologies Ltd (ASX: BUD) shares, at least on their ASX path. This company’s last traded share price was just 0.6 cents, recorded yesterday afternoon. But Buddy Technologies isn’t trading today. And it might not be trading for a while, or perhaps ever again.

This ASX internet of things (IoT) share released an ASX notice this morning. It announced that Buddy Technologies shares will be suspended from ASX quotation “until further announcements in this regard”.

Shortly afterwards, the company put out another release. This one confirmed that “Christopher Hill and David McGrath of FTI Consulting were appointed joint and several Receivers and Managers… of Buddy Technologies… pursuant to security held by Partners for Growth VI, L.P (‘PFG’)”.

Here’s more of what the release said:

The effect of the appointment is that the Receivers are now in control of the Company’s assets, shares in its subsidiaries, undertaking and operations…

In addition, PFG has provided BUD with a limited funding facility to allow the Group to continue to trade in the short term during the receivership period. It is the Receivers’ intention to draw down against this facility as and when required and to provide those funds to the Subsidiaries so that day-to-day obligations can be met at that level.

In light of the PFG facility it is the Receivers’ expectation that the Subsidiaries will continue to operate on a business-as-usual basis for the immediate future.

Buddy Technologies shares suspended from ASX as receivers appointed

So this news isn’t good for shareholders. It implies the company is under financial stress, with obvious cash flow issues. Going forward, the path is unclear for Buddy Technologies. But here’s what the company said would happen next:

The Receivers will shortly commence a process seeking offers for a sale or recapitalisation of the Group… It is anticipated that indicative offers will be sought from interested parties by the week commencing 2 May 2022.

So with that in mind, it looks as though Buddy Technologies will be sold, or at least put out to market. Perhaps a buyer will swoop in and take control of the company. Perhaps an investor will prop it up and the shares will be relisted. Or perhaps it will be broken up. We don’t know any more at this stage. But what we do know is that Buddy Technologies shares don’t look likely to rejoin the ASX boards anytime soon.

At the company’s last traded share price, Buddy Technologies shares have a market capitalisation of $21.07 million. Buddy Technologies is now down 57% in 2022 so far and 85% over the past 12 months.

The post Buddy Technologies shares unfriended from ASX as receivers move in appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating and $335.00 price target on this biotherapeutics giant’s shares. This follows a review of the healthcare sector. Citi highlights that the company’s shares are underperforming the market this year but appears optimistic this will change as plasma collections begin to recover and the acquisition of Vifor Pharma closes. The CSL share price is trading at $262.52 on Wednesday afternoon.

IDP Education Ltd (ASX: IEL)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this student placement and language testing company’s shares to $35.50. The broker highlights that new student visa data for February and March published by the ABS supports its thesis that second half student placement volumes will grow strongly. Outside this, the broker believes IDP is well-placed to benefit from compelling long-term structural growth in international student volumes and IELTS testing demand. The IDP share price is fetching $27.53 today.

Webjet Limited (ASX: WEB)

Analysts at Citi have upgraded this online travel agent’s shares to a buy rating with an improved price target of $6.50. With a user pay business model largely exposed to volumes and low fixed costs, Citi thinks Webjet should be a relative leader in re-opening stock earnings. It also believes the company’s B2B business will bounce back strongly, especially with its American growth opportunity. The Webjet share price is trading at $5.47 this afternoon.

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

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 CSL Ltd., Goldman Sachs, and Idp Education Pty Ltd. The Motley Fool Australia has recommended Webjet 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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Today is a good day for the OncoSil Medical Ltd (ASX: OSL) share price after the company released news of its pancreatic cancer treatment.

The treatment – which comes in the form of a device – has surpassed a major milestone. It has been used to treat a commercial patient in Europe for the first time.

At the time of writing, the OncoSil Medical share price is 7 cents, 66.67% higher than its previous close.

Though earlier today, it surged to an intraday high of 7.5 cents, representing a 78.6% gain.

Let’s take a closer look at today’s news from the medical device company.

What’s driving OncoSil’s stock higher?

The OncoSil Medical share price is launching higher on the news a European commercial patient has been treated with the company’s pancreatic cancer treatment device for the first time.

The OncoSil device is a targeted radioactive isotope. It works by being implanted into a pancreatic tumour via an endoscopic ultrasound.

The first European commercial procedure of its kind was performed at Madrid’s Hospital Universitario de Fuenlabrada.

Previously, COVID-19 had hampered the company’s ability to train hospitals on the device’s implantation. However, now restrictions have begun to ease, the company has trained 10 hospital sites in Spain.

The hospitals can now negotiate a budget for a certain number of treatments each year. To get their hands on the devices, hospitals must complete a formal tender process.

OncoSil Medical’s sales team is working with other trained hospitals through the tender process to allow better access to the treatment in various regions.

OncoSil Medical CEO and managing director Nigel Lange commented on today’s news:

We look forward to the OncoSil device becoming more accessible to patients throughout Spain and subsequently other European countries, to maximise the benefit from this novel treatment.

Overall, following our recent success in Germany, we expect the momentum of OncoSil device sales to continue improving over the course of the current year.

OncoSil Medical share price snapshot

This year has so far been good for the OncoSil Medical share price.

It has gained 40% since the start of 2022. However, it is 30% lower than it was this time last year.

The post The OncoSil Medical share price is booming 66%. Here’s why 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 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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Analysts at US investment bank Merrill Lynch have redefined the FAANG basket of stocks.

Formerly – and currently – the group was made up of Facebook, Apple, Amazon, Netflix and Google – the tech darlings of the NYSE and Nasdaq.

This group has provided investors with unparalleled returns over the past decade, positioning themselves as the biggest companies to ever walk the global stock markets.

FAANG 2.0? What’s it look like?

Up until now, the group has been the major floatation device for the US (and quite arguably, global) stock exchange(s).

Some quick analysis enables us to easily see just how much this is so. The performance of the S&P 500 from 2013–2022 has seen it climb to record heights, even through a pandemic, and flash crash of 2018.

However, stripping out the FAANG group sees incredibly different results, Ed Yardeni of Yardeni Research explains.

Yardeni show’s us a chart displaying the market cap of the S&P 500 – with and without the FAANG basket included – to highlight the index wouldn’t have performed nearly as well if it weren’t for these 5 tech juggernauts.

Plus, with a shifting macroeconomic narrative, that’s sending a blitzkrieg of geopolitical, inflationary and rates-based missiles at global markets, tech shares have taken an absolute beating in 2022.

The S&P/ASX All Technology Index (ASX: XTX) is down 19% this year to date and is the worst performing Aussie sector.

Perhaps that’s why Merrill are shifting their posture; in order to dance in tune with the emerging trends in commodities, energy and food production.

“The original FAANG acronym was made up of company-specific tech leaders that enjoyed sustained growth over the last decade as the economy increasingly digitalised—and then thrived—over the pandemic (and added $3.2 trillion in market cap),” it wrote in a recent note.

“[O]ur version of FAANG 2.0 reflects a new world of geopolitical risks and resource/hard asset intensity.”

Instead, Merrill lists its own pockets of the market where it “find[s] future value given the defining market rotations [it] expect[s].”

That consists of Fuels, Aerospace & defence, Agriculture, Nuclear/renewables and Gold/metals/minerals, to produce FAANG 2.0.

So what ASX shares have conformed to this latest definition? Considering the current macro trends, there’s been plenty.

Shares in agriculture player Graincorp Ltd (ASX: GNC) are up 18% this year to date, bringing an 81% gain for the last 12 months. Meanwhile, hydrocarbons giant Woodside Petroleum Limited (ASX: WPL) shares are up 47% this year to date to cover off fuels.

Gold shares have spiked hard in 2022 as well, with Bellevue Gold Ltd (ASX: BGL) spiking 14% since January for instance, whilst small-cap player Droneshield Ltd (ASX: DRO) has spiked 28% in the aerospace field.

The post Could these ASX shares be the new FAANG stocks on the block? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Zach Bristow owns Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Apple, DroneShield Ltd, Meta Platforms, Inc., and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) 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 Alphabet (A shares), Alphabet (C shares), Amazon, Apple, DroneShield Ltd, Meta Platforms, Inc., and Netflix. 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 Zip Co Ltd (ASX: Z1P) share price has certainly plummeted. It’s down 70% in 2022. The last 12 months show an 87% decline for the Zip share price. But could the buy now, pay later ASX share ever go to zero?

There have been a few high-profile corporate downfalls in Australia over the years.

ABC Learning was a childcare operator that was worth $2.6 billion but collapsed after taking on far too much debt through acquisitions.

The shareholders of Virgin Australia didn’t get anything as the company entered administration as a casualty of the COVID-19 pandemic. An independent expert concluded that the equity of Virgin Australia had nil value.

What happens to a business that can’t operate anymore?

Businesses that go broke often have a large pile of debt that the company can no longer afford. It’s true that businesses go broke all the time. But ASX shares going broke can be particularly high profile. Shareholders are often at the bottom of the list of who will get money when businesses close. Creditors usually get paid first, with secured creditors at the front of the queue.

Companies don’t necessarily get wound up straight away. There is an insolvency process. If there are creditors, an independent registered liquidator/administrator takes control of the company. The company’s leadership investigates if a plan to save the company can be created.

If there’s no plan to save the business, the administrator will try to find the best option to repay creditors. This can come in many forms, such as selling assets or selling the whole business. After going through the process with creditors, the company can still go into liquidation.

Put simply, if there’s no money left after repaying creditors and everyone who is entitled to payment before investors, then shareholders will get nothing.

Could the Zip share price go to zero?

It is theoretically possible for any business to go to zero.

Fool writer Mike King wrote many years ago about how a sizeable portion of businesses on the ASX faced financial uncertainty.

There have been some significant financial bankruptcies globally in the past.

Despite the huge decline, the Zip market capitalisation is still $890 million and it continues to go for growth.

In February 2022, the buy now, pay later business announced a deal to merge with Sezzle Inc (ASX: SZL) and also announced ongoing growth, with revenue up 89%.

On 31 December 2021, the company said that it had “significant undrawn funding across the group’s debt facilities” and that it had available cash and liquidity of $212.5 million on 31 December 2021.

It is also possible the company could raise capital again.

Zip has been investing for growth to expand its presence internationally.

Growth and company plans

Zip said with its FY22 half-year result that Australia remains a “robust and sustainable model” which delivered the 14^th consecutive quarter of positive cash flow. The company also said that the US is on a path to positive cash flow and continues to scale “at pace” with strong growth.

However, the cash transaction margin sank from 3.7% in the prior year to 2.1% in the first half, reflecting rising bad debt costs reflective of credit headwinds as well as an increased weighting to the rest of the world. It’s taking action to address this performance. The cash transaction margin is expected to be between 2.5% to 3% in the medium term.

Analyst thoughts on the Zip share price

Brokers are somewhat mixed on the business.

The broker Ord Minnett rates the Zip share price as a buy, with a price target of $4. That implies a potential rise of more than 200% over the next year. Ord Minnett thinks that Zip has enough funding on its balance sheet to get to cash earnings breakeven status in the next few years.

Morgans is another broker with a high price target – it’s $3.94, suggesting a potential upside of around 200%. It can see the positives of the deal with Sezzle.

Citi is ‘neutral’ on Zip. But the buy now, pay later business has fallen so much that the price target of $2.15 implies a rise of over 60%.

Macquarie’s last rating was ‘underperform’ on Zip, though the price target of $1.85 now implies a potential upside of more than 40%. It noted the increased spending and bad debts at the company.

UBS currently rates Zip as a ‘sell’ with a price target of just $1. It doesn’t think the ASX share can be as profitable in the future as previously expected and notes the increasing uncertainty.

The post Could the Zip share price ever actually go to zero? appeared first on The Motley Fool Australia.

More reading

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• Why A2 Milk, G8 Education, Nearmap, and Zip shares are dropping
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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. owns and has recommended ZIPCOLTD FPO. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.15% to 7,465.8 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price is up 5% to $1.08. This follows the release of an update on the Manono Lithium and Tin Project in the Democratic Republic of the Congo. AVZ revealed that it has now received a positive technical opinion from the Department of Mines. This was the fourth and final requirement for a mining licence. As a result, the company appears confident that it will soon be awarded a mining licence for its flagship project.

EML Payments Ltd (ASX: EML)

The EML Payments share price has jumped 10% to $2.93. This morning the payments company confirmed that it has been in takeover talks. EML advised that earlier this year it held change of control talks with private equity firm Bain Capital that ultimately amounted to nothing. With 9.5% of its shares held short, this news appears to have spooked short sellers.

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up 2% to $12.66. Investors have been buying this mineral sands and rare earths producer’s shares after it announced demerger plans. Iluka believes that demerging its Sierra Rutile West African mineral sands operation will allow the company to focus on its core activities and growth opportunities in Australia. If all goes to plan, Sierra Rutile will have a separate ASX listing.

Webjet Limited (ASX: WEB)

The Webjet share price is up 2.5% to $5.45. This appears to have been driven by a bullish broker note out of Citi this morning. According to the note, the broker has upgraded the online travel agent’s shares to a buy rating with a $6.50 price target.

The post Why AVZ, EML, Iluka, and Webjet shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Webjet share price takes off following broker upgrade
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• 3 ASX 300 shares smashing new multi-year highs on Wednesday
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• Iluka Resources share price marching higher on demerger news

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 EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Webjet 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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The Northern Star Resources Ltd (ASX: NST) share price is edging higher during mid-afternoon trade.

This comes after the company announced a number of non-core asset sales to align with its five-year strategic plan.

At the time of writing, the Australian gold miner’s shares are swapping hands for $10.96, up 1.29%.

Northern Star divest Paulsens and Western Tanami gold assets

Investors are reacting to the company’s latest news today, sending Northern Star shares higher.

According to its release, Northern Star advised it has entered into a binding agreement with fellow gold miner, Black Cat Syndicate Ltd (ASX: BC8).

The sale price of Northern Star’s non-core assets is listed for $44.5 million in cash. This includes the following:

• $14.5 million cash consideration to be paid at sale completion
• The issue to Northern Star of 8.34 million fully paid ordinary shares in Black Cat at a deemed issue price of 60 cents per share
• $15 million cash consideration to be paid on 30 June 2023 (deferred consideration)
• $10 million cash in a series of contingent payments linked to future production post-sale completion

The sale of Paulsens and Western Tanami is expected to be completed in June 2022.

However, this is subject to a number of conditions being met. This includes Black Cat raising $25 million by 15 June 2022 and receiving its shareholders’ approval for the issue of Black Cat shares to Northern Star as part of the transaction.

Northern Star managing director, Stuart Tonkin commented:

The sale of Paulsens, our foundation asset, and the Western Tanami Gold Project align with Northern Star’s five- year strategic plan to generate superior shareholder returns through active and disciplined portfolio management.

We are delighted that Black Cat, which has a proven track record as a responsible operator and successful explorer, intends to undertake extensive exploration at each operation to provide a potential future redevelopment path for the benefit of all stakeholders.

Northern Star share price summary

Since the beginning of the year, Northern Star shares have taken off to post a gain of around 16%. Investor sentiment has strengthened across the sector amid the Russian/Ukrainian war, rising inflation and the recent COVID-19 outbreak in China.

Based on today’s price, Northern Star commands a market capitalisation of approximately $12.72 billion.

The post Here’s why the Northern Star share price is climbing today appeared first on The Motley Fool Australia.

More reading

• ‘Thriving’ ASX gold shares to see more growth in 2022: expert
• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Why is the Northern Star share price having such a positive end to the week?

Motley Fool contributor Aaron Teboneras owns Northern Star Resources 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 Bruce Jackson.

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ASX uranium shares are soaring today amid a positive outlook for the uranium price.

Among ASX uranium shares surging today are Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN). Close on their tails are Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

So why are ASX uranium shares surging?

Uranium price lifts ASX uranium shares

Peninsula shares are surging 14% today, while Bannerman shares are rocketing 16%. Meanwhile, the Deep Yellow share price is rising 9%, Boss Energy is jumping 8%, and Paladin is up 7%, at the time of writing.

ASX uranium shares are lifting amid a rise in the price of the metal. Uranium is used in nuclear power plants.

Bank of America raised the price target of uranium all the way up to 2027, the Australian Financial Review reported.

An analyst at the bank lifted price predictions by 13.5% to US$60.70 a pound in 2022. Meanwhile, the price could hit US$66.90 a pound in 2023, a 38% increase. In 2027, the analyst tips the price to be US$50.

The Ukraine and Russia war is not disrupting shipments but sparking future concerns, the analyst noted. Bank of America analyst Lawson Winder commented on the uranium outlook:

To the best of our understanding, the war has not yet contributed to a direct disruption of shipments of Russia uranium products to the rest of the world.

Rather, the price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.

Uranium futures jumped 0.32% to US$63.70 pounds in global markets overnight. This was the highest level since the Fukushima disaster of 2011, Trading Economics reported. The uranium price has surged nearly 112% in a year. In recent days, news out of the United Kingdom may have lifted the price of uranium. The UK is planning to build eight new nuclear reactors by 2030.

The post Why have ASX uranium shares bolted out of the gate today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How did ASX uranium shares perform last quarter?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• These were the best performers on the ASX 200 last week
• Here are the top 10 ASX shares 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 Bruce Jackson.

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