Tag: Motley Fool

  • Surging again: Why has the Sayona (ASX:SYA) share price rallied 46% in a month?

    A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath

    A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath

    The Sayona Mining Ltd (ASX: SYA) share price has continued its impressive run on Monday.

    In afternoon trade, the lithium developer’s shares are up 6% to 17.5 cents.

    This means the Sayona share price is now up 46% in the space of a month.

    Why is the Sayona share price surging higher?

    Investors have been bidding the Sayona share price higher this month following a very positive announcement relating to the company’s North American Lithium (NAL) and Authier projects.

    According to the release, the two projects now have a combined measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide.

    This upgrade represents the doubling of its mineral resource from management’s previous estimates. In light of this, Sayona can stake the claim as having the largest spodumene resource in Canada.

    Management was delighted with the news, particularly given how high lithium prices are right now.

    Sayona’s Managing Director, Brett Lynch, commented: “This expansion is a major achievement for Sayona as we further enlarge our leading lithium resource base in North America. Since the start of 2020, we have now grown our Québec resource base nearly six times and with further increases expected soon from Moblan.”

    “With lithium prices surging on the back of an increasing structural supply deficit, our upcoming definitive feasibility study for an integrated NAL‐Authier operation, expected in coming weeks, is set to show significantly enhanced profitability for the benefit of shareholders,” he added.

    The post Surging again: Why has the Sayona (ASX:SYA) share price rallied 46% in a month? appeared first on The Motley Fool Australia.

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

    Before you consider Sayona, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sayona wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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

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  • Own South32 (ASX:S32) shares? Boss says ‘future-facing metals’ now 85% of revenue

    a woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.a woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.

    The South32 Ltd (ASX: S32) share price is outperforming after the company’s CEO painted a bullish outlook and a top broker forecasted “material upside to shareholder returns”.

    Shares in the diversified mining group jumped 2.7% to a two-week high of $4.95 during lunchtime trade.

    In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.06% at the time of writing. The BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price are also lagging, with gains of 0.72% and 0.05% respectively.

    South32 share price powers up for the future

    South32’s chief executive Graham Kerr credits the group’s repositioning as a supplier of future-facing metals for the market interest, reported The Australian.

    “We had a very large exposure on a revenue basis to a lot of the bulks: the energy coal, the met coal, the manganese,” he said.

    “If you look at the transactions we have done over the last couple of years and if you normalise met coal price, our exposure to forward-facing metals such as copper, aluminium, zinc now makes up roughly 85 per cent of our revenue stream.”

    Getting the mix right

    South32 has come a long way since it was spun out of BHP in 2015. Back then, many called it “Crap Co” as BHP dumped commodities it didn’t want into the separately listed entity.

    But under the stewardship of Kerr, the miner acquired a number of mines to gain increased exposure to copper, nickel and other metals.

    “We have developed the pre-feasibility study on Taylor, which is a zinc deposit in Arizona,” explained Kerr.

    “We bought Sierra Gorda in Chile to get copper exposure, we’ve increased what we have in nickel in Columbia and we have Ambler Nickels going on at the moment in Alaska.”

    “That transformation, not only in commodity but also country risk has helped us push forward.”

    Bullish outlook for the South32 share price

    Thanks to the COVID-19 pandemic, war in Ukraine, the electric vehicle (EV) revolution, and the transition to a low carbon world, South32’s earnings have surged. The miner posted a record first-half net profit of over $1.4 billion last month.

    What is also helping sentiment towards the South32 share price is a bullish note by Macquarie Group.

    The broker noted that South32 shares have outperformed their iron-ore dominated peers since the start of January.

    This is due to South32’s favourable mix of metals that has caught the imagination of ASX investors.

    What are South32 shares worth?

    “Our base-case forecast sees S32 return a free cash flow yield of 11% in FY22E, increasing to 25% in FY23E, the highest amongst large-cap peers,” said the broker.

    “Using a [free cash flow] payout ratio of 90%, total shareholder return could amount to ~US$800m, 45% higher than our base-case forecast.”

    Macquarie is recommending the South32 share price as “outperform”. The bank’s 12-month price target on the shares is $7.

    The post Own South32 (ASX:S32) shares? Boss says ‘future-facing metals’ now 85% of revenue appeared first on The Motley Fool Australia.

    Should you invest $1,000 in South32 right now?

    Before you consider South32, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and South32 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Brendon Lau owns BHP Billiton Limited, Rio Tinto Ltd., and South32 Ltd. 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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  • Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?

    A person is weighed down by a huge stack of coins, they have received a big dividend payout.

    A person is weighed down by a huge stack of coins, they have received a big dividend payout.S&P/ASX 200 Index (ASX: XJO) dividend shares are in sharp focus in 2022 following a surge in payouts last year.

    And ASX 200 mining shares led the dividend charge.

    Some big special dividend payouts saw BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) all rank among the top 10 dividend-paying stocks in the world in 2021.

    Indeed, the biggest of the ASX 200 mining shares, BHP, came in as the number 1 dividend payer on the globe last year. (That’s in terms of total payout, mind you, not dividend yield.)

    According to a report from Janus Henderson, all told, Aussie dividends came in at $63.3 billion in 2021, aided by exchange rates. That’s the third largest total dividend payout in the world last year.

    If you’re wondering, shares in the United States market came in first, followed by shares in the United Kingdom.

    What can investors expect in 2022?

    With multi-year or even record highs amongst commodity prices in 2021, the mining sector delivered more than 25% of the increase in dividend payouts.

    But what can investors expect from the ASX 200 mining shares in 2022?

    Janus Henderson forecasts that “global dividends will reach a new record of $1.52 trillion, up 3.1% on a headline basis, or 5.7% in underlying terms.”

    As for ASX 200 mining shares, the global asset manager cautions, “The mining sector may not be able to repeat the record level of payments witnessed in 2021, given the moves in some commodity prices.”

    According to the report:

    The big unknown for 2022 is what will happen in the mining sector. Iron ore prices are a significant driver and, despite recovering some lost ground recently, are lower at present than during most of 2021…

    Given the reliance of profits and therefore dividends on commodity prices, there is a significant degree of uncertainty about the level of mining payouts. It is reasonable to assume they will fall from the record levels of 2021, at least in the reduction or elimination of one-off special payments.

    How have these ASX 200 mining shares been tracking?

    Aside from delivering outsized dividend payouts, 2 of the ASX 200 mining shares have also handily outpaced the benchmark this year.

    While the ASX 200 is down 3.9% this year, the BHP share price has gained 10%, while Rio Tinto shares are up 11.1%.

    The Fortescue share price has gone the other way, down 4.7% in the new year.

    The post Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    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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  • 25% upside and healthy yield: Why this broker is bullish on the Westpac share price

    a man in a business suit sits at his laptop computer at his desk and smiles broadly in an office setting, giving an air of optimism and confidence.a man in a business suit sits at his laptop computer at his desk and smiles broadly in an office setting, giving an air of optimism and confidence.

    One broker is optimistic the Westpac Banking Corp (ASX: WBC) share price has the potential to surge significantly.

    Westpac shares are currently swapping hands at $23.59, down 0.3%. The S&P/ASX 200 Financials Index (ASX: XFJ) is also in the red 0.23% at the time of writing.

    So why do analysts think the Westpac share price can climb?

    What is the outlook for the Westpac share price?

    The team at Morgans says Westpac is a buy with a $29.50 price target. The broker is optimistic on the bank’s margin outlook and predicts it can achieve its cost-cutting targets.

    Morgans has also made a prediction on dividends. The broker predicts Westpac will offer a fully-franked dividend of $1.19 per share in FY 2022. By 2023, Morgans predicts a dividend of $1.60.

    Commenting on the outlook for Westpac, Morgans described the bank as “our preferred major bank”. It said:

    We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. 

    On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.

    Westpac reported an unaudited statutory net profit of $1.82 billion in 1Q 22, up 80% on the quarterly average for 2H21. Cash earnings also grew 74% to $1.58 billion. The bank announced it would bring forward simplification plans and changes to its operating structure.

    In other news from the bank, Westpac recently appointed a new executive Yianna Papanikolaou. As the chief transformation officer, Papanikolaou is responsible for major change, investment programs, and customer outcomes.

    Westpac share price summary

    The Westpac share price has dropped nearly 4% in the last year but has surged nearly 11% year to date.

    For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned almost 9% over the past year.

    The company has a market capitalisation of about $82.6 billion.

    The post 25% upside and healthy yield: Why this broker is bullish on the Westpac share price appeared first on The Motley Fool Australia.

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

    Before you consider Westpac, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Westpac wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 Westpac Banking Corporation. 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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  • Leading brokers name 3 ASX shares to buy today

    ASX shares Business man marking buy on board and underlining it

    ASX shares Business man marking buy on board and underlining itWith so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

    City Chic Collective Ltd (ASX: CCX)

    According to a note out of Citi, its analysts have retained their buy rating and $4.00 price target on this plus sized retailer’s shares. This follows the recent release of the results of one of its main rivals in the United States, Torrid. The broker believes this update points to City Chic’s US operations outperforming its rival. Though, it does note that Torrid will be increasing its marketing spend, which could increase competition. Nevertheless, it remains positive on the company and continues to forecast solid profit growth in the coming years. The City Chic share price is trading at $3.41 today.

    South32 Ltd (ASX: S32)

    A note out of Macquarie reveals that its analysts have retained their outperform rating and $7.00 price target on this mining giant’s shares. Macquarie highlights that South32 is generating significant free cash flow. The broker expects this to continue and is forecasting huge free cash flow yields in the near term, which it expects to underpin big returns to shareholders. The South32 share price is fetching $4.94 on Monday.

    Westpac Banking Corp (ASX: WBC)

    Another note out of Citi reveals that its analysts have retained their buy rating and $27.00 price target on this banking giant’s shares. Citi has been looking at the banking sector, which has been booming despite global peers tumbling this year. And while its suspects that the recent sector outperformance may be hard to sustain given how revenue growth is difficult to find right now, it still sees a lot of value in the Westpac share price. In fact, Australia’s oldest bank remains its top pick among the majors. The Westpac share price is trading at $23.58 today.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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  • Is the Telstra share price a buying opportunity after sliding 7% in 2022?

    a woman holds an old fashioned telephone ear piece to her ear while looking unhappy sitting at a desk with her glasses crooked on her nose and a deflated expression on her face.

    a woman holds an old fashioned telephone ear piece to her ear while looking unhappy sitting at a desk with her glasses crooked on her nose and a deflated expression on her face.

    The Telstra Corporation Ltd (ASX: TLS) share price is down 0.4% as we head into lunchtime.

    That puts shares in the ASX 200 telco giant down 6.8% so far in 2022, compared to a 3.5% year-to-date loss posted by the S&P/ASX 200 Index (ASX: XJO).

    At the current Telstra share price, the company pays a trailing dividend yield of 2.8%, fully franked.

    So, is Telstra a good buy in 2022?

    What the brokers are saying

    Telstra has been in focus as the company has been monetising its assets, cutting costs and working to improve customer satisfaction and retention. As part of its next steps under the T25 strategy, Telstra will also expand its 5G coverage.

    Goldman Sachs said that, “Combined with its greater infrastructure assets, Telstra is our preferred integrated telecom.”

    Goldman has a neutral rating on the telco, with a 12-month price target of $4.30. That’s 9% higher than the current Telstra share price.

    Goldman noted:

    The most significant development was the announced mobile networking sharing agreement between Telstra and TPG Telecom Ltd (ASX: TPG), whereby TPG is paying for access to a significant portion of TLS regional coverage. This is driving incremental wholesale earnings for TLS, improving the quality/speed of its metro and regional networks.

    Goldman is forecasting 7% underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 7% for FY21-FY23.

    Morgans is even more positive on Telstra.

    The broker believes ASX 200 investors are undervaluing Telstra based on the sum of its parts. Morgans has an add rating on Telstra shares with a price target of $4.55, 15% higher than the current price.

    Morgans forecasts the telco will pay dividends of 16 cents per share, fully franked, in FY22 and FY23.

    Telstra share price snapshot

    Though it’s slipped in 2022, the Telstra share price remains up an impressive 21.1% over the past 12 months. By comparison, the ASX 200 is up 8.3% during that same time.

    The post Is the Telstra share price a buying opportunity after sliding 7% in 2022? appeared first on The Motley Fool Australia.

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

    Before you consider Telstra, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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 ASX quarterly rebalance takes effect today. Here’s what you need to know

    a hand of a man in a suit points a finger towards old fashioned brass scales that are not balanced in the foreground of the picture.

    a hand of a man in a suit points a finger towards old fashioned brass scales that are not balanced in the foreground of the picture.

    Today is a big day for the S&P/ASX 200 Index (ASX: XJO), the All Ordinaries Index (ASX: XAO), and any other ASX-based index for that matter. That’s because this Monday is the day that Australian share market indexes are rebalanced.

    Why is this a big deal? Well, the ASXC 200, the All Ords, and any other index covering ASX shares are ever-changing. Companies grow and shrink and this needs to be taken into account by the indexes that cover them. See, most indexes, including the ASX 200 and the All Ords, are decided using market capitalisation, or company size. Since a company’s market cap is determined by the share price, this is constantly changing.

    The ASX’s 43rd-largest company, for example, might be one ASX share one day and another the next. To compensate for the fluctuations of the market, the company that runs most indexes here in Australia – S&P Global – takes stock of the current standing of the market every 3 months, and rebalances its indexes accordingly.

    So, today, the effects of the most recent rebalancing go into effect. These are always rather important changes. The myriad of index funds that track the ASX 200, or other indexes, have to mirror whatever changes are made to the indexes they track.

    Thus, a rebalancing always sees a large amount of capital shuffled around on the ASX in the weeks leading up to it. Also, some fund managers have mandates which dictate they can only invest in, say, All Ords shares. This has consequences for the markets and many investors too.

    All Ords and ASX 200 rebalancing comes into effect

    So what changes have just gone into effect today?

    Well, it varies. For example, the S&P/ASX 50 Index only has one change. It has swapped out Aurizon Holdings Ltd (ASX: AZJ) for BlueScope Steel Limited (ASX: BSL).

    But the All Ordinaries has dozens and dozens of holdings removed today. These have been replaced with dozens and dozens of new shares.

    Let’s just quickly run through the changes to the ASX 200 though. So the ASX 200 Index had had 4 ASX shares removed today, replaced with 4 new ones. The companies departing the ASX 200 are Mesoblast Limited (ASX: MSB), Skycity Entertainment Group Limited (ASX: SKC), Spark New Zealand Ltd (ASX: SPK), and Unibail-Rodamco-Westfield (ASX: URW).

    In their place, the ASX 200 is welcoming AVZ Minerals Ltd (ASX: AVZ), City Chic Collective Ltd (ASX: CCX), De Grey Mining Limited (ASX: DEG), and Home Consortium Ltd (ASX: HMC).

    So that’s what the ‘new’ ASX 200 Index looks like. In reality, these shares are going to be at the bottom of the ASX 200. Thus, they are not going to have meaningful weightings in the new index (likely under 0.05%). But still, these changes do have a meaningful impact on how investing is done on the ASX for the reasons mentioned above.

    At the time of writing, the ASX 200 is up by 0.22% so far today, and is sitting at just over 7,310 points.

    The post The ASX quarterly rebalance takes effect today. Here’s what you need to know appeared first on The Motley Fool Australia.

    Should you invest $1,000 in AVZ Minerals right now?

    Before you consider AVZ Minerals, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon Holdings 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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  • Here’s why the Carnarvon (ASX:CVN) share price is halted today

    A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading haltA man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt

    The Carnarvon Energy Ltd (ASX: CVN) share price won’t be going anywhere on Monday. This comes as the company requested that its shares be placed in a trading halt.

    At the time of writing, the energy producer’s shares are frozen at 32 cents apiece.

    Why is the Carnarvon share price halted?

    Prior to the market opening, the company requested the Carnarvon share price be halted while it prepares an announcement.

    According to the release, the company is planning to make an announcement in relation to the Pavo-1 well result.

    Carnarvon has requested that the trading halt remains in place until Wednesday 23 March or following the release of the announcement, whichever comes first.

    More on Pavo-1 well

    Located around 160 kilometres north-east of Port Hedland in Western Australia, the offshore platform made news in recent times.

    After spudding in early February, operations were halted due to cyclone activity in the region.

    At the time, the Pavo-1 well drilled around 3,282 metres of measured depth (MD) before suspending works.

    However, just over a week ago, the rig returned to full-manning levels with drilling and logging operations set to re-commence.

    The Pavo-1 well is targeting a resource of 82 million barrels of liquid hydrocarbons in the Caley Formation sands.

    Santos Ltd (ASX: STO) holds a 70% stake in Pavo-1, while Carnarvon retains the remaining 30%.

    Carnarvon share price summary

    Over the past 12 months, the Carnarvon share price has moved in circles ranging from 21.3 cents to 36 cents.

    Particularly, since the start of the year, its shares have recorded wild swings of more than 50% in either direction.

    The company’s shares are down 5% in 2022.

    Based on valuation grounds, Carnarvon has a market capitalisation of roughly $500.92 million, with approximately 1.57 billion shares outstanding.

    The post Here’s why the Carnarvon (ASX:CVN) share price is halted today appeared first on The Motley Fool Australia.

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

    Before you consider Carnarvon, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Carnarvon wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

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  • Nickel backing: Here’s why this ASX mining share has surged 40% in 2 days

    a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.

    The Ardea Resources Ltd (ASX: ARL) share price is booming amid a promising update on a nickel project.

    Ardea Resources shares have surged 40% in the past two trading days and are currently swapping hands at $1.28 each. At the time of writing, the company’s shares are up more than 25% on the day.

    So what is boosting the Ardea Resources share price lately?

    Major project status

    The Ardea Resources share price has been booming since Friday when the company informed the market it had received major project status for the Kalgoorlie Nickel project in Western Australia.

    The company describes the venture as Australia’s largest nickel-cobalt critical minerals project.

    Commenting on the news, managing director Andrew Penkenthman said:

    With the award of Major Project Status, Ardea is well placed to provide a significant sustainable and ethical supply chain for the lithium-ion battery sector, from the best resources operating jurisdiction in the world, being Western Australia.

    Today, Ardea further updated the market on federal government recognition of the project. The company provided a link to a media release from Prime Minister Scott Morrison.

    Morrison said the major project status declaration would bring the operation to life sooner. He said:

    With 1,500 jobs each year for the three-year construction and 500 jobs a year for the 25-year operation, this project is a major project and will get every support possible from my Government.

    The release also quoted Energy Minister Angus Taylor, Resources Minister Keith Pitt and federal member for O’Connor Rick Wilson MP. Wilson added:

    Providing support to this project will help boost Australia’s position in the global critical minerals processing industry and add to regional WA’s reputation as a major contributor to the nation’s booming resource sector.

    Ardea said the major project status consolidates the company’s interactions with all tiers of government in Australia.

    Ardea Resources share price snapshot

    The Ardea Resources share price has surged 174% in the past 12 months, while it is up 187% this year to date.

    In the past month, Ardea Resources shares have soared 63%, thanks largely to a 58% rise in just the past week.

    Ardea Resources has a market capitalisation of about $223 million based on the current share price.

    The post Nickel backing: Here’s why this ASX mining share has surged 40% in 2 days appeared first on The Motley Fool Australia.

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

    Before you consider Ardea Resources , you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ardea Resources wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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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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  • Broker tips A2 Milk (ASX:A2M) share price to rise 30% from here

    Man drawing an upward line on a bar graph symbolising a rising share price.

    Man drawing an upward line on a bar graph symbolising a rising share price.The A2 Milk Company Ltd (ASX: A2M) share price is pushing higher on Monday.

    In early afternoon trade, the struggling infant formula company’s shares are up 1.5% to $5.47.

    Why is the A2 Milk share price pushing higher?

    Today’s gain by the A2 Milk share price may have been driven by a broker note out of Bell Potter this morning.

    According to the note, the broker has retained its buy rating, albeit with a trimmed price target of $7.15.

    Based on the current A2 Milk share price, this implies potential upside of 30% for investors over the next 12 months.

    What did the broker say?

    Bell Potter has been looking at monthly activity points and appears pleased with what it saw.

    The broker highlights that Australia-China exports, which is a daigou proxy, were up 33% year on year in January. It was a similar story for Christchurch exports to China, which rose 20% year on year in January. Bell Potter notes that “historically there has been a high correlation between the value of exports to China ex-Christchurch (CHC) and A2M reported PRC revenues.”

    One slight negative, though, is that the broker has raised its costs of goods sold assumptions in FY 2023 to reflect higher ingredient costs and the likelihood that there will be no price increases to offset this. This results in a 4% downgrade to its earnings for FY 2023 and FY 2024, which led to the 7.1% price target reduction.

    Nevertheless, the broker doesn’t believe this will stop the company doubling its earnings per share by FY 2026. Hence why it remains very positive on the A2 Milk share price.

    It commented: “There is no change to our Buy rating. We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while regaining 50% of the lost sales (from FY20-21) in English label IMF. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

    The post Broker tips A2 Milk (ASX:A2M) share price to rise 30% from here appeared first on The Motley Fool Australia.

    Should you invest $1,000 in A2 Milk right now?

    Before you consider A2 Milk, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and A2 Milk wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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/qehmQ02