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The S&P/ASX 200 Index (ASX: XJO) isn’t having the best day so far this Tuesday. At the time of writing, the ASX 200 is down by 0.71% at just under 7,100 points. But even though the ASX 200 isn’t having the best time of it today, the same can’t be said of the Commonwealth Bank of Australia (ASX: CBA) share price.

CBA shares are seemingly oblivious to the woes of the broader market today. The ASX’s largest bank share is currently up a very healthy 1.72% so far today at $103.74 a share. It’s not just CBA either. The other three major ASX banks are all in the green as well. Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are also up by more than 1%. Indeed, the ASX financials sector is currently the top-performer on the markets today.

Today’s move means that CBA shares are now up just over 8.5% in the past week. So what’s going on here?

Well, it’s not entirely clear. There hasn’t been any major ASX news out of CBA over the past week, or indeed out of the ASX bank sector, that might convincingly explain this sharp rise.

What’s behind the strong CBA share price today?

But there have still been some developments. Yesterday, the bank announced that it had appointed two new general managers in its Major Client Group. The Major Client Group was established in 2020 to provide “dedicated lending and banking solutions to large and complex businesses nationally across a diverse range of industries”.

Craig McQuillen is the new general manager in this capacity for Victoria, while Jon Coombes will represent Queensland.

In some other minor news today, CBA has also announced that it has become the first Australian bank to be recognised under the International Sustainability and Carbon Certification (ISCC) scheme. The ISCC is reportedly a “voluntary sustainability certification scheme that facilitates sustainable practices in primary production industries, such as agriculture”.

It aims to provide supply chains with certified proof that agricultural commodities are being sustainably produced. As well as in a manner that “meets community expectations for environmentally, socially, and economically sustainable production”.

So it’s unclear whether either of these announcements is helping push up the CBA share price this week. Perhaps they are. Or perhaps CBA is just rising alongside the other ASX banks. But whatever the underlying cause, it certainly has been a strong day, and week, for this ASX bank.

At the current CBA share price, the ASX 200 banking giant has a market capitalisation of $174.05 billion, with a dividend yield of 3.62%.

The post The CBA share price has soared 8% in a week. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 bank shares are storming higher today
• The CBA (ASX:CBA) share price has gone nowhere in 10 months… time to buy?
• Top brokers name 3 ASX shares to sell next week
• Why has the CBA (ASX:CBA) share price climbed 7% so far this month?
• Own CBA (ASX:CBA) shares? Here’s why the bank’s boss is ‘very optimistic’ for 2022

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 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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ASX copper shares have been struggling lately as fast-rising copper prices have come off the boil.

The red metal hit multi-year highs of US$10,674 (AU$14,765) per tonne on 4 March. It’s been mostly downhill since then.

Overnight, spot copper prices dropped another 2.4% to US$9,935 per tonne. That’s down 7% in less than 2 weeks, according to data from Bloomberg.

And ASX copper shares are feeling the pressure.

The Oz Minerals Ltd (ASX: OZL) share price, for example, is down 3.61% at the time of writing and down 12% since the opening bell on 7 March, the first trading day since copper prices spiked to multi-year records.

Meanwhile, Sandfire Resources Ltd (ASX: SFR) is down 6.23% so far today and down 11.2% since 7 March.

Why are copper prices sliding?

It’s not just copper prices falling. Almost every industrial and precious metal gave up some ground overnight.

While different forces are impacting the range of tradeable metals, copper could be coming under additional pressure with news of the fast-spreading Omicron variant in China.

As China is maintaining its zero-COVID policies, this is seeing major new lockdowns imposed within the Middle Kingdom. Amongst the latest restrictions, the city of Shenzhen and the province of Jilin have been placed under lockdown.

With copper widely used across a range of industrial activities, any significant slowdown from the world’s number 2 economy and most populous nation could impact its midterm demand and place downward pressure on prices.

How have these 2 ASX copper shares been tracking?

Both ASX copper shares have fallen over the past month.

The Oz Minerals share price is down 5.4% since 15 February.

Sandfire shares have fared considerably worse.

Off the back of recently released half year results that came in below expectations, the ASX copper share is down 29% since this time last month.

For some context, the S&P/ASX 200 Index (ASX: XJO) is down 1.5% over that same period while the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 4.4%.

The post Why have ASX copper shares been struggling lately? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• These ASX 200 shares trade ex-dividend tomorrow. Here’s what you need to know
• 3 under-the-radar commodity prices soaring since the Ukraine crisis
• Why has the Oz Minerals (ASX:OZL) share price surged 11% in 4 days?
• Why Dubber, Evolution, Sandfire, and Zip shares are dropping

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

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The Magellan Financial Group Ltd (ASX: MFG) share price is having a very difficult time in 2022.

Since the start of the year, the struggling fund manager’s shares are down by over a third.

This left the Magellan share price trading at a multi-year low of $13.41 earlier today.

Is the Magellan share price in the buy zone?

The team at Morgans has been looking over the fund manager’s most recent funds under management (FUM) update and has given its verdict on the Magellan share price.

The broker notes that Magellan’s outflows have continued, with a further $5 billion redeemed over the last two and a half weeks.

Combined with market movements, this has left its FUM at $69.1 billion, which is down 10.5% during the period. This comprises global equities FUM of $39.2 billion, infrastructure FUM of $20.4 billion, and finally Australian equities FUM of $9.5 billion.

Unfortunately after bleeding funds in recent months, Morgans isn’t convinced that the trend will be stopping any time soon.

It commented: “Stabilisation of the Retail FUM base will be key for the business (A$1.4bn of outflows in CY22 to-date). We expect ongoing outflows, however note there is risk of acceleration given persistent relative underperformance in the Global fund.”

And while the broker does see some value in the Magellan share price, the risk/reward on offer is not sufficient enough for it to be more positive.

Morgans explained: “Further meaningful outflows look inevitable, and until the more severe downside risks ease and there is increased certainty in the FUM base, we continue to see the risk/reward as unfavourable.”

In light of this, the broker has retained its hold rating and cut its price target by a sizeable 28% to $15.78.

The post Top broker gives its verdict on the Magellan (ASX:MFG) share price appeared first on The Motley Fool Australia.

More reading

• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• Magellan (ASX:MFG) share price hits multi-year low after fund outflows accelerate
• Here’s why the Magellan (ASX:MFG) share price fell 7% today and could keep falling
• Leading brokers name 3 ASX shares to sell today

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

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The Fortescue Metals Group Ltd (ASX: FMG) share price is well in the red on the ASX today.

The company’s shares are currently swapping hands at $17.125, a 5.07% fall. In comparison, the  S&P/ASX 200 Index (ASX: XJO) is down 0.56% at the time of writing.

Let’s take a look at what could be impacting the Fortescue share price.

Iron ore prices

Iron ore prices appear to be impacting the Fortescue share price today. Fortescue exported more than 93.1 million tonnes of iron ore in H1 FY22.

However, global iron ore prices have plunged recently amid resurgent COVID-19 lockdowns in China, according to a report on NAB trade. A climb in infections is raising concerns about China’s projected economic growth, the report stated.

Iron ore’s top traded May contract on the Dalian Commodity Exchange dropped 7% to 759.50 yuan (AU$166.43) a tonne, the Australian Financial Review reported. The iron ore April contract on the Singapore Exchange also fell 8.8% to $US143.80 per tonne. This is a two week low.

At the same time, the share price of fellow ASX miner Rio Tinto Ltd (ASX: RIO) is down more than 4% at the time of writing, currently trading at $106.66. BHP Group Ltd (ASX: BHP) shares are also down more than 4%.

In other news, Fortescue founder Andrew ‘Twiggy’ Forrest met with Egypt’s Prime Minister on Monday. As my Foolish colleague Tristan reported, the meeting explored potential green hydrogen opportunities.

Fortescue on the ASX recap

The Fortescue share price has lost 16% in the past year. It’s fallen 24% in the past month alone, shedding 10.6% year to date.

Meanwhile, the benchmark ASX index has returned nearly 5% over the past 12 months.

Fortescue has a market capitalisation of about $53 billion based on its current share price.

The post Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today? appeared first on The Motley Fool Australia.

More reading

• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• What’s going on with Fortescue (ASX:FMG), green hydrogen and the Egyptian prime minister?
• Top brokers name 3 ASX shares to sell next week
• Guess which 3 ASX 200 shares are among the top 10 dividend payers in the world
• Own Fortescue (ASX:FMG) shares? Here’s why the miner has just hired the RBA’s deputy governor

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

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

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

One way to identify potentially winning stocks is to look for companies that are growing their revenue and earnings fast. If you invest at the right time, this strategy could generate handsome returns in the long run. Here are five such growth stocks.

Tesla

Tesla (NASDAQ: TSLA) revolutionized the auto sector with its electric cars. The company made electric vehicles mainstream and forced major automakers to shift toward electrification.

Quality electric cars that can go long distances on a single recharge, along with a sufficient network of charging stations, have helped to relieve buyers’ concerns of getting stuck with no place to charge a dead battery.

These factors, coupled with a reasonable pricing structure, drove the demand for Tesla’s cars higher. In five years, Tesla grew its revenue at an average rate of more than 50%.

TSLA Revenue (Annual YoY Growth) data by YCharts

Moreover, analysts expect Tesla to grow its per-share earnings at an average rate of nearly 50% over the next three to five years. Tesla also guides for 50% average annual growth in vehicle deliveries in the coming years. The company expects to start vehicle deliveries from its new factories in Berlin and Texas soon.

In addition to its existing models, Tesla’s planned vehicles — the Cybertruck and Semi — are already receiving strong interest from potential buyers. The timetable for the launch of these two vehicles is less certain, though, as their respective launch dates have been pushed back several times.

Enphase Energy

Solar technology company Enphase Energy (NASDAQ: ENPH) continues to enjoy robust demand for its products. The company grew its annual sales at an average rate of 40% over the last five years. In 2021, Enphase’s revenue grew by 78%.

The company’s microinverters clearly look to be the preferred choice among homeowners. That’s because, in addition to converting direct current to alternating current at the module level, Enphase’s easy-to-use platform integrates solar generation, storage, and energy management on a single system.

Analysts expect Enphase Energy’s per-share earnings to grow at an average rate of 40% in the next three to five years. Innovative offerings, good control on costs, and a long growth runway are some factors that will drive Enphase’s long-term growth.

Amazon

In five years, Amazon.com Inc (NASDAQ: AMZN) grew its revenue at an average rate of 28%. That’s also the average rate at which analysts expect per-share earnings of the e-commerce giant to grow in the coming three to five years. Though Amazon is famous for its online retail business, it is the company’s cloud computing business that’s boosting its bottom-line growth lately.

In 2021, Amazon’s cloud computing business, Amazon Web Services (AWS), contributed 74% of the company’s operating income. Interestingly, this business accounted for just 13% of the company’s sales. What’s more, AWS revenue grew 37% in 2021.

Solid e-commerce operations combined with growing high-margin cloud computing business bodes well for Amazon’s long-term growth. In short, Amazon is a no-brainer growth stock to add to your portfolio. The stock split and $10 billion buyback program are just icing on the cake.

Nvidia

Nvidia Corporation (NASDAQ: NVDA) grew its annual revenue at an average rate of 34% in five years. In 2021, the company’s revenue grew a whopping 61% to nearly $27 billion. Analysts expect Nvidia’s per-share earnings growth rate to be around 24% over the next three to five years.

Nvidia’s high-performance graphics cards are in huge demand in the gaming markets. Further, the company’s graphic processing units (GPUs), coupled with its software and services, find applications in artificial intelligence, robotics, augmented and virtual reality, autonomous vehicles, and the metaverse. Given that each of these areas continues to see heightened growth, demand for Nvidia’s products should remain strong.

Nvidia partners with major computer makers, including Cisco, Dell, HP, and Lenovo, and cloud service providers, such as Alicloud, AWS, Baidu Cloud, Google Cloud, IBM Cloud, and Microsoft Azure. Nvidia’s leadership position in the GPU market means that the company may remain on its hypergrowth trajectory for many more years.

Netflix

In five years, Netflix Inc (NASDAQ: NFLX) grew its annual revenue at an average rate of 28%. Netflix’s high revenue growth showed signs of slowing down in the last couple of years. In 2021, Netflix’s revenue grew by 19%, which was lower than its five-year average rate.

Netflix’s slowing growth concerned investors and the stock has fallen around 48% off its 52-week high price, offering an attractive entry point for long-term investors. That’s because Netflix’s continued growth, albeit at a slightly lower rate, indicates the exceptional demand for its services. The company has a strong content catalog, and it is also exploring other growth avenues such as gaming, which could potentially be a significant growth driver.

Analysts expect the company to grow its per-share earnings at an average rate of 30% over the next three to five years. In short, Netflix is one beaten-down stock that you should consider buying right now.

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

The post 5 of the fastest-growing stocks on the planet appeared first on The Motley Fool Australia.

More reading

• 2 Buffett stocks to buy for the long haul
• Amazon’s putting a bigger focus on grocery this year
• Alphabet and Amazon stock splits: 3 high-flying stocks that could split next
• Should you buy Amazon stock now or wait until after the stock split?
• Are Netflix bears looking at the wrong numbers?

Rekha Khandelwal has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon, Baidu, Cisco Systems, Dell Technologies Inc., Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool Australia has recommended Amazon, Netflix, and Nvidia. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is giving back some of yesterday’s gains. At the time of writing, the benchmark index is down 0.6% to 7,105.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 5% to $20.21. Investors have been buying the biopharmaceutical company’s shares following the release of preliminary results relating to a pilot study evaluating afamelanotide in six adult patients with arterial ischaemic stroke (AIS) who were ineligible to receive standard treatment. At an early stage, the study has shown that afamelanotide was well tolerated and delivered promising improvements.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up a further 4.5% to $14.42. Investors have been buying this IT distributor’s shares this week following the release of a broker note out of Morgan Stanley. Its analysts have initiated coverage on Dicker Data with an overweight rating and $16.00 price target. The broker believes Dicker Data is well-placed for growth over the medium term thanks to industry tailwinds and its leadership position within it.

Healius Ltd (ASX: HLS)

The Healius share price is up 3.5% to $4.46. Investors have responded positively to this healthcare company announcing a $100 million share buyback. Healius notes that the buyback will be managed within the ‘10/12 limit’ permitted by the Corporations Act. As a result, it does not require shareholder approval.

Uniti Group Ltd (ASX: UWL)

The Uniti share price was up 17% to $3.68 before being placed into a trading halt. Investors were bidding this telco’s shares higher amid speculation that it could be in exclusive takeover talks. Uniti has neither confirmed nor denied the speculation. It intends to release an announcement relating to the speculation tomorrow morning.

The post Why Clinuvel, Dicker Data, Healius, and Uniti shares are rising today appeared first on The Motley Fool Australia.

More reading

• Why is the Clinuvel (ASX:CUV) share price zooming 6% higher today?
• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble
• Why the Uniti (ASX:UWL) share price jumped 17% before being halted
• Top ASX dividend shares to buy in March
• These 2 compelling ASX shares are a buy: fund manager

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

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The Pure Hydrogen Corporation CDI (ASX: PH2) share price is steaming ahead this week despite being down today.

Pure Hydrogen shares have gained 5% since market close on Friday. Yesterday, the company’s shares surged 8%.

Pure Hydrogen is a clean energy company based on Australia’s east coast. The company is developing five hydrogen projects and three gas projects.

Let’s take a look at what is happening at the company.

Turquoise hydrogen plans

On Monday, Pure Hydrogen informed the market it will go ahead with plans to make turquoise hydrogen. The Pure Hydrogen share price surged by 10% in early morning trade yesterday on the back of this announcement.

The company has signed a binding collaboration and licence term sheet with French technology company Plenesys to commercialise a process known as HyPlasma. This involves breaking down methane molecules in an oxygen-free reaction chamber.

The companies will work together on a pilot plant to be built in Brisbane in the next 12 months.

Pure Hydrogen has been looking into turquoise hydrogen for the past two years and hopes to use the HyPlasma process to prove commercial manufacture of clean energy products including hydrogen and graphene.

As part of the deal, Pure Hydrogen will gain exclusive rights to commercialise the HyPlasma process in Australia and some key countries in South-East Asia and Southern Africa for an initial 10 years.

Commenting on the company’s plans, Pure Hydrogen managing director Scott Brown said:

Our initial programme is focussed on demonstrating and refining the process, before commencing commercial scale operations. It is no doubt there is significant upside for the technology globally.

Turquoise Hydrogen is a cleaner use of natural gas (methane), and graphene has many emerging applications in electronics and high strength, light-weight materials, which is particularly important in the production of batteries, electronic equipment, fabrication and building materials.

As my Foolish colleague Mitch reported, Pure Hydrogen was one of the best performing ASX hydrogen shares in 2021, posting a 511% gain.

Half-year accounts

In late afternoon trade yesterday, Pure Hydrogen released its half-year results (H1 FY22). Pure Hydrogen recorded a loss of $807,571. This was 1.63% greater than the $794,606 loss in the prior corresponding period.

During the half, Pure Hydrogen entered an agreement to purchase a 24% interest in H2X Global limited in return for 8.6 million shares in Pure Hydrogen.

The company increased its net cash balance by $2 million to $12 million. No dividends were declared.

The Pure Hydrogen share price has been unable to repeat its gains of yesterday so far today. It is currently down 2.41% at 40.5 cents.

Pure Hydrogen share price snapshot

The Pure Hydrogen share price is up 8% in the past 12 months but has plummeted 27% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained 5% in a year.

Pure Hydrogen has a market capitalisation of $138 million based on the current share price.

The post Why is the Pure Hydrogen (ASX:PH2) share price leaping 5% this week? appeared first on The Motley Fool Australia.

More reading

• De Grey (ASX:DEG) share price slides despite ‘impressive’ drill results
• 2 Buffett stocks to buy for the long haul
• Why is the crude oil price tumbling and which ASX 200 shares are being impacted?
• Why is the Clinuvel (ASX:CUV) share price zooming 6% higher today?
• Why is the Woodside (ASX:WPL) share price plunging 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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The De Grey Mining Ltd (ASX: DEG) share price is backtracking today despite announcing ‘impressive’ infill drilling results at Brolga.

At the time of writing, the gold and mineral exploration company’s shares are fetching for $1.35, down 2.88%.

What were the results?

Investors are dumping De Grey shares regardless of the positive results obtained from its RC drilling campaign.

According to its release, De Grey advised it has identified new resource definition results. These include:

• 193 metres @ 1.7 grams per tonne (g/t) of gold (Au) from 40 metres in HEDD218
• 123 metres @ 1.9g/t Au from 33 metres in HMRC054
• 140.2 metres @ 1.3g/t Au from 35.7 metres in HEDD302
• 136 metres @ 1.2 g/t Au from 38 metres in HMRC055
• 128 metres @ 1.2g/t Au from 94 metres in HMRC065
• 90 metres @ 1.1g/t Au from 106 metres in HMRC138

De Grey stated that the drilling is being conducted as part of the prefeasibility study (PFS) of its Mallina Gold Project in the Pilbara region of Western Australia.

Conducting resource definition drilling allows more of the Brolga resource to be classified as JORC indicated mineralisation.

In turn, this increases the potential production target and ore reserve for the PFS and provides increased confidence in the project’s projected cash flow.

Furthermore, De Grey highlighted other higher-grade resource definition results at Brolga, which are as follows:

• 54 metres @ 2.6g/t Au from 45 metres in HEDD300
• 20 metres @ 5.1g/t Au from 212 metres in HMRC131
• 19 metres @ 3.7g/t Au from 36 metres in HMRC139
• 19.3 metres @ 2.5g/t Au from 35.7 metres in HEDD302
• 24.5 metres @ 2.5g/t Au from 91 metres HEDD302

Management commentary

De Grey general manager of exploration Phil Tornatora commented:

These new resource definition drilling results at Brolga, including 193m @ 1.7g/t Au in diamond drill hole HEDD218, successfully demonstrate the continuity of mineralisation within the proposed Brolga Stage 1 starter pit and reduce project risk associated with early production.

Resource extension drilling to the southwest of the proposed Brolga starter pit is in progress.

Exploration drilling continues across both Greater Hemi and Regional areas. Resource definition drilling is nearing completion and rigs will then be targeting further resource extensional and discovery drilling within the Greater Hemi region.

About the De Grey share price

The De Grey share price has accelerated by 37% since this time last year following gold’s meteoric price rise on commodity markets.

In particular, the company’s shares have shot up around 13% in the past month alone.

On valuation grounds, De Grey commands a market capitalisation of about $1.88 billion, with more than 1.4 billion shares on hand.

The post De Grey (ASX:DEG) share price slides despite ‘impressive’ drill results appeared first on The Motley Fool Australia.

More reading

• Why Argosy Minerals, De Grey, Whitehaven, and Woodside shares are racing higher
• Why the De Grey Mining (ASX:DEG) share price is shooting 12% higher today
• Why these 2 ASX mining shares are in the spotlight today
• These ASX 200 shares are being dumped out of the index and replaced with…

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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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.

Warren Buffett has said that when he evaluates companies for investing, he stays within a circle of competence — meaning he evaluates companies in areas that he fully understands. That’s why before becoming an investor in the company hosting the largest e-commerce platform in the world, he originally missed out. A similar story is behind his investment in the company which stands — at 43.7% — as the largest holding in Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio. 

These companies are two of the largest in the world by market cap and are led by innovative visionaries developing devices and platforms that are likely to expand and continue to grow profits based on business models that generate recurring revenue that should keep investors happy for the long haul. 

1. A golden, delicious Apple

To truly understand the magnitude of Apple‘s (NASDAQ: AAPL) innovations and the gains it has brought investors, it’s important to understand from the beginning of the climb to where we are now. Steve Jobs was the CEO of Apple from 1997 to 2011. During that time, the company developed the Apple Store, iMac, iPad, iPod, and iPhone. The stock was at a split-adjusted $0.19 in August 1997 before climbing 7,132% to $13.74 by August 2011, just prior to Tim Cook taking over the helm for his friend and colleague.

Since Cook has taken over, the company has continued on its visionary path, rewarding investors along the way with over 1,000% stock price growth. The company has provided consumers with upgrades on the devices Jobs oversaw, while also developing new products and services, including AirPods, Apple Watch, Apple Music, and Apple TV+. And dare I say, in the next few years we may see an Apple Car.

One of the biggest investors being rewarded is Warren Buffett. Some might say Buffett was a bit late to the game since Berkshire didn’t start gobbling up shares of Apple until 2016. But be that as it may, the stock price has grown by 500% since then, and Apple stands far above the rest of his Berkshire portfolio holdings at nearly 44% of the total value, followed by Bank of America at 13%, and Coca-Cola — which Buffett claims he will never sell a share — at 7% of the portfolio. 

Cook has said that the company is run for the long term and identifies Buffett as the ultimate long-term investor. That longevity certainly seems to be paying off for Buffett, not only in terms of share price but also in reaping the rewards of dividends. In 2021 Buffett soaked in over $3 billion in dividends alone, led by each of his three top holdings, which average a 1.9% dividend yield, topping the 1.27% yield of the S&P 500 as of Dec. 31 and above the long-term average for the S&P 500 yield of 1.86%.

Perhaps one takeaway from Buffett’s late foray into Apple is that the best is yet to come for investors, which we are already seeing hints of. Quarterly services revenue is growing at record pace; a new mid-tier 5G iPhone is coming; Apple is cranking out its own M1 chips, with performance improvements being developed to go along with its new Mac Studio desktop; and Apple TV+ is bringing on live sports events. With all of these developments to go along with an iPhone ecosystem that Buffett refers to as sticky, it seems that it’s never too late to invest in Apple. 

2. Amazon just gave investors 20 more reasons to buy

A topic repeatedly talked about but rarely acted on, is a stock split for Amazon (NASDAQ: AMZN). Now, investors are rejoicing at the news of a pending 20:1 split. But before we go there, let’s take a look at why Amazon was already a Buffett holding for the long haul.

Berkshire Hathaway invested in Amazon in two waves during 2019, but it wasn’t Buffett who made the purchase, it was one of his Berkshire partners. So if you took a pass on Amazon earlier on, don’t feel too bad. It happens to literally the best.

Since the time Berkshire jumped in on Amazon in 2019, the stock has grown roughly 52%. To look at in dollars, a $10,000 investment would be worth $15,000 today — less than three years later.

Amazon grew net sales in 2021 by 22% year over year, resulting in a net income increase of 55% driven by a growing and successful pipeline. The company’s products include virtual assistant technology, home security, a leading e-commerce platform with recurring Prime subscriptions, video streaming, grocery, healthcare, and web services, which has grown exceptionally well at 40% year over year.

As we end the first quarter amid a broader market decline, Amazon appears focused on its stock price and expanding its pipeline. The company announced that it is buying back $10 billion of its stock, which can signify that the company believes its stock is at a discount to its true value. It can also boost investors’ confidence, resulting in a quick spike in the stock price. 

Another action that causes a quick spike is a stock split. In fact, the day after announcing the buyback and a 20:1 split — its first split since 1999 — the stock price jumped by 5.5% overnight.

Now the company is moving forward with new entertainment, including movies, series, and an 11-year contract to stream a full slate of the NFL’s Thursday Night Football, which is expected to bring in hundreds of millions of dollars from new Prime subscriptions, subsequent member purchases, and ad revenue.

It also puts Amazon in a position to take over the full Sunday NFL ticket as more and more cable and satellite TV subscribers switch over to streaming services.

Buffett may not have been the one to pull the trigger on purchasing shares of Amazon for Berkshire, but he does know a great company when he sees one. Even after a recent pop in stock price to $2,936 per share, investors still have an opportunity to buy shares in this revolutionary company at a 43% discount to analysts’ average 12-month price target. Better late than never. 

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

The post 2 Buffett stocks to buy for the long haul appeared first on The Motley Fool Australia.

More reading

• Amazon’s putting a bigger focus on grocery this year
• Should you buy Amazon stock now or wait until after the stock split?
• Is Amazon stock a buy now before the 20-for-1 stock split?
• Amazon makes its case to join the Dow
• Amazon (NASDAQ:AMZN) announces US$10b share buyback and 20-for-1 split

Jeff Little owns Amazon and Apple. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Berkshire Hathaway (B shares). 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 S&P/ASX 200 Index (ASX: XJO) is giving back some of yesterday’s gains. The benchmark index is currently down 0.6%.

With crude oil prices down sharply overnight, ASX 200 shares in the energy sector are seeing even greater selling pressure today.

The Woodside Petroleum Limited (ASX: WPL) share price, for example, is down 3.79% in afternoon trading. Meanwhile, Santos Ltd (ASX: STO) shares are down 4.77% while the Beach Energy Ltd (ASX: BPT) share price has dropped 3.89% today.

All told the S&P/ASX 200 Energy Index (ASX: XEJ) is down 3.45% at the time of writing. That’s more than five times the loss being experienced by the ASX 200.

Why are crude oil prices falling?

Brent crude oil dropped 3.9% overnight to US$103 per barrel, according to data from Bloomberg.

That’s a big 24-hour fall. And Brent crude is now down almost 20% from the US$128 per barrel it was fetching this time last week.

That’s seen ASX 200 shares in the energy sector fall 7.2% over the past week, even as the ASX 200 gained 1.3%.

So, what’s causing the latest retrace in crude oil prices?

Firstly, news that Ukraine and Russia were engaged in a new round of ceasefire discussions looks to offer a glimmer of hope that the war may end sooner than later.

Oil-rich Russia’s invasion of neighbouring Ukraine caused crude oil prices to rocket, reaching 14-year highs earlier this month. Should negotiations prove successful, energy prices are likely to trend lower.

Adding to the pressure on crude oil prices is a resurgent outbreak of COVID-19 in China.

China is the world’s biggest importer of crude oil. It is also among the few nations still actively pursuing a zero-virus policy.

With numerous new COVID cases appearing, driven by the Omicron variant, China has locked down the city of Shenzhen and the province of Jilin. Should those lockdowns persist, or spread, it could have a major impact on energy demand and see further downward pressure on crude oil prices.

How have these 3 ASX 200 shares been performing?

Despite the big fall in crude oil prices over the past week, the three ASX 200 shares named above remain well up so far in 2022.

The Santos share price trails the pack with an 8.4% year-to-date gain. Beach Energy shares have gained 17% in that same time while the Woodside share price leads the pack, up 35% since the opening bell on 4 January.

For some context, the ASX 200 is down 6.5% in 2022.

The post Why is the crude oil price tumbling and which ASX 200 shares are being impacted? appeared first on The Motley Fool Australia.

More reading

• Why is the Woodside (ASX:WPL) share price plunging today?
• 5 things to watch on the ASX 200 on Tuesday
• Woodside (ASX:WPL) share price slips but CEO says Ukraine puts ‘spotlight’ on natural gas
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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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