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The S&P/ASX 200 Index (ASX: XJO) travel shares are having a day of strong gains.

There has been a lot of volatility amid the Russian invasion of Ukraine, with the impacts of the conflict being felt far and wide. One of the impacts has been an oil price which has charged higher. ASX 200 travel shares have seen difficulties with investor sentiment over the last few weeks.

But today, many ASX 200 travel shares are reversing some of those declines.

Let’s look at those movements.

ASX 200 travel share gains

The Qantas Airways Limited (ASX: QAN) share price is up by 6.4% at the time of writing. That means since the start of the year, the airline’s shares are only down by 3.7%.

Next is the Webjet Limited (ASX: WEB) share price which is currently up by 6.8%. The digital travel agency business has now seen its shares rise by close to 5% this calendar year.

The Corporate Travel Management Ltd (ASX: CTD) share price has gone up by 5.6%. It is now only down by 2.6% in 2022.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has also soared higher – it has flown higher by 8.4%. It’s now up just over 3% for the 2022 year.

What is driving these gains?

It has been widely reported that oil prices have sunk. Oil prices were down as much as 17% earlier.

The United Arab Emirates (UAE) stated that it supports increasing production. This is in response to the much higher oil price because of supply disruptions caused by the Russian invasion. Russia is responsible for supplying 7% of global oil. The USA and Canada have banned Russian oil imports, whilst the UK will phase it out over this year.

UAE ambassador Yousuf Al Otaiba said:

We favour production increases and will be encouraging OPEC to consider higher production levels.

The UAE has been a reliable and responsible supplier of energy to global markets for more than 50 years and believes that stability in energy markets is critical to the global economy.

What next for ASX 200 travel shares?

The ASX 200 travel industry continues to face some disruption from COVID-19 impacts, though travel volumes are returning according to some of the ASX shares like Corporate Travel Management and Webjet.

Whilst oil prices have fallen, it is still substantially higher than before the Russian invasion of Ukraine. Time will tell what happens next – commodity prices are not known to be predictable.

The post Here’s why ASX 200 travel shares are having another stellar day appeared first on The Motley Fool Australia.

More reading

• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• Why the Qantas (ASX:QAN) share price is leaping 5% today
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Why did the Flight Centre (ASX:FLT) share price have such a volatile time in 2022?
• ASX travel shares rebound despite rising oil prices

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in PSC Insurance Group Ltd (ASX: PSI) are currently halted amid a company requested trading pause.

PSC Insurance shares have posted gains so far in 2022, and are up more than 40% in the previous 12 months of trading.

The $1.6 billion company by market cap is also trading at its highest levels in over 5-years and recently touched its 52-week closing high back in February.

Why is the PSC share price frozen?

The ASX granted the halt for PSC following a company request today. Before being placed on ice, PSC shares were up 2% on the day at $4.84, slightly off the intraday high of $4.99.

PSC made the request pending a market sensitive announcement, as is typically the case for a trading halt.

“The trading halt is requested to facilitate an orderly market in PSI’s securities pending PSI making an announcement to the ASX in connection with a proposed capital raising”, it said today.

“PSI requests that the trading halt remain in place until the earlier of PSI making the announcement to the market concerning the capital raising or the commencement of trading on Friday 11 March 2022”.

Prior to the halt, PSC finished the month on a high after announcing its FY22 half year results. In its report, the company printed revenue growth of 28% and underlying net profit was up 21% to $16.6 million.

This resulted in a 46% year on year jump to 8.6 cents in earnings per share (EPS) and allowed the board to declare an interim dividend of 4.5 cents per share.

The bulk of earnings and cash flow growth was seen in the UK and Hong Kong markets, both of which also grew in contribution to overall revenue.

PSC share price summary

In the past 12 months, the PSC share price has climbed more than 40% and is up 2% this year to date. Over the past month, shares have walked another 4% into the green.

In fact, the company’s share price is up across all major time frames and is thus leading the broader market this year to date.

The post Why is the PSC Insurance (ASX:PSI) share price on ice today? appeared first on The Motley Fool Australia.

More reading

• Nickel Mines (ASX:NIC) share price tumbles again, down 25% this week
• Here’s why ASX 200 travel shares are having another stellar day
• Why Goldman says to buy these ASX coal shares right now
• Own Telstra shares? Here’s why the telco faces new legal action
• These 3 ASX 200 shares are topping the volume charts on Thursday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended PSC Insurance Group. 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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With coal prices rising strongly this year, investors may be wondering how they can gain exposure to this booming commodity.

The good news is that Goldman Sachs has been looking at the industry and sees plenty of opportunities for investors with thermal and metallurgical coal.

Thermal coal

As its name implies, thermal coal is used predominantly for heating/electricity generation. It tends to be burned to create the steam that runs the turbines that ultimately generate electricity. Demand for non-Russian thermal coal looks set to underpin strong prices in 2022, according to the broker.

Goldman notes: “Our channel checks with industry participants (coal companies, traders, market assessors) suggest that some European & JKT utilities are already seeking to cut ties with Russian coal companies and tendering for South African, Colombian, Australian and Indonesian coal as a replacement, while Chinese traders remain cautious to import coal from Russia due to potential risks around letters of credit and deliverability.”

And while the broker believes Indonesia has the potential to boost its supplies materially, it would require a government policy reversal on export quotas. Furthermore, its coal has a lower energy content and is unlikely to satisfy demand for higher calorific value coal.

In light of this and reflecting a potential increase in Chinese domestic production, Goldman has upgraded its price forecasts for benchmark thermal coal to US$250 a tonne in the first quarter and US$208 a tonne in 2022.

Metallurgical coal

Metallurgical coal is the type used in steel production. Goldman anticipates further tightening in the market if European steel mills look for alternatives to Russian production.

It explained: “We would expect markets to tighten further if European steel mills turn to US and Aus coal. If this were to occur it would coincide with rebounding Chinese steel production in 2Q. Furthermore, there are ongoing supply issues in Canada, the US, Mongolia, and Australia mostly due to a slow recovery from ongoing weather events.”

As a result, it has upgraded its benchmark metallurgical coal price forecasts to US$440 a tonne for the first quarter and US$360 a tonne for the full year.

Which coal shares are in the buy zone?

Following its coal price forecast upgrades, Goldman has made changes to the valuations of some ASX mining shares.

It has retained its buy rating and lifted its price target on Coronado Global Resources Inc (ASX: CRN) shares by 33% to $2.80.

For South32 Ltd (ASX: S32) shares, the broker retains its conviction buy rating and lifts its price target by 5% to $5.90.

And for Whitehaven Coal Ltd (ASX: WHC) shares, Goldman has retained its buy rating and lifted its price target by 21% to $4.70.

The post Why Goldman says to buy these ASX coal shares right now appeared first on The Motley Fool Australia.

More reading

• Here’s why the South32 (ASX:S32) share price is sliding today
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Want the dividends from these 5 ASX shares? You’d better be quick!
• These 3 ASX 200 shares are topping the volume charts on Tuesday

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 Telstra Corporation Ltd (ASX: TLS) share price could be under pressure in the coming months as it fights new legal action brought on by a former employee.

Former staffer Jodi Wruck, according to The Australian, has filed a case in the Federal Court against the telecommunications giant for its COVID-19 vaccination mandate.

Wruck was fired in December after she refused to be vaccinated, according to court documents.

A Telstra spokesperson declined to comment on specific cases but did confirm to The Motley Fool that staff with regular public contact were required to be inoculated against coronavirus.

“Under Telstra’s COVID vaccination policy, around 8,300 roles in Australia require a COVID vaccination given the increased risk of infection due to the type of work and regular contact with others while on the job,” the spokesperson said.

“This includes those who regularly interact with customers and other members of the public, those who work with vulnerable people and communities, and those who need to be onsite, such as our E000 contact centres.”

The spokesperson added that state and territory public health orders also required those performing essential telco work to be vaccinated.

Telstra shares dipped 0.77% to trade at $3.89 on Thursday afternoon.

Denied consultation on vaccinations?

Wruck is claiming that “at least seven” staff members have signed on as plaintiffs, reaching the legal minimum to be classified as a class action. 

The group is claiming that Telstra employees were not consulted and denied a chance to discuss with their doctors as to whether they should receive any COVID-19 vaccine.

The company spokesperson refuted that there was no discussion.

“We undertook extensive consultation before we introduced our vaccination policy, including extending the period for consultation and making changes to our policy approach based on constructive feedback from our employees and unions,” said the spokesperson.

“Since introducing our vaccination policy in September 2021 we’ve had a very small number of people who have decided not to get vaccinated.”

The legal action is seeking orders to stop Telstra from enforcing its COVID-19 vaccine mandate and for the plaintiffs to receive damages.

Wruck’s case claims her former employer also violated anti-discrimination laws because her advocacy for “freedom of choice” about “what to put in her body” was a “political belief”.

Telstra maintains that “the vast majority” of staffers have been supportive of the vaccination rules.

“We’ve so far given away the equivalent of $5m worth of incentives to over 20,000 employees who are fully vaccinated,” said the telco’s spokesperson.

“We remain confident the right approach has been taken to protect our employees and customers, and is consistent with recent legal decisions regarding vaccination.”

The post Own Telstra shares? Here’s why the telco faces new legal action appeared first on The Motley Fool Australia.

More reading

• Broker sees 19% upside for Telstra (ASX:TLS) share price and 4% dividend yield
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Analysts name 2 ASX 200 dividend giants to buy in March
• These 3 ASX 200 shares are topping the volume charts on Friday
• The Telstra (ASX:TLS) share price has tumbled 9% in 6 weeks. What’s happening?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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 S&P/ASX 200 Index (ASX: XJO) is enjoying another happy day of gains so far on Thursday after yesterday’s change in sentiment. At the time of writing, the ASX 200 is up by a pleasing 1.29% at just under 7,150 points.

But let’s dig a little deeper and check out the ASX 200 shares that are currently at the top of the market’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Incitec Pivot Ltd (ASX: IPL)

Chemicals and fertilizer manufacturer Incitec Pivot is our first ASX 200 share to check out today. So far, a notable 24.18 million Incitec shares have been traded on the share markets as it currently stands. There’s been no news out of the company itself recently. However, the Incitec share price has also risen strongly and is currently up 1.7% at $3.62 a share. It seems this rise is what is likely behind this elevated trading volume we see, perhaps helped along by a new broker recommendation.

Paladin Energy Ltd (ASX: PDN)

It seems ASX 200 uranium miner Paladin is never far from the headlines these days, and this Thursday is no different. Presently, a substantial 42.8 million Paladin shares have flown around the ASX. Again, we have a combination of a new broker rec for Paladin, along with a (in this case) massive share price jump. Paladin is currently up by close to 15% at 88 cents a share. 

Nickel Mines Ltd (ASX: NIC)

Our final and most traded ASX 200 share today is Nickel Mines, and by a mile too. This Thursday has seen a whopping 80.94 million Nickel Mines shares bought and sold. Unfortunately for investors, it seems this has resulted from the opposite situation to Paladin. Nickel Mines shares are currently down a nasty 14.23% at $1.20 a share. This, once again, appears to have been sparked by a broker recommendation.  

The post These 3 ASX 200 shares are topping the volume charts on Thursday appeared first on The Motley Fool Australia.

More reading

• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Why are ASX uranium shares having such a stellar day?
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Warning: Only 4 ASX shares just added to ASX 300 are profitable

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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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

Inghams Group Ltd (ASX: ING)

According to a note out of Goldman Sachs, its analysts have downgraded this poultry producer’s shares to a sell rating and trimmed their price target down to $3.25. The broker made the move largely on valuation grounds but also on concerns over rising feed costs. Goldman fears that this emerging headwind could present a risk to Ingham’s medium term earnings. The Ingham’s share price is trading below this price target at $3.07 today.

Insurance Australia Group Ltd (ASX: IAG)

A note out of UBS reveals that its analysts have retained their sell rating and $4.20 price target on this insurance giant’s shares. This follows the release of an update on claims from the East Coast flooding. Overall, the broker believes the market is too optimistic on IAG’s earnings and expects the company to fall short of consensus estimates in FY 2022 and FY 2023. The IAG share price is fetching $4.33 on Thursday.

Reject Shop Ltd (ASX: TRS)

Another note out of Goldman Sachs reveals that its analysts have downgraded this discount retailer’s shares to a sell rating and cut their price target on them by 26% to $6.27. The broker has concerns about near term headwinds from lower foot traffic and higher input costs. Overall, it is expecting this to lead to Reject Shop also delivering earnings short of consensus estimates in FY 2022 and FY 2023. The Reject Shop share price is trading at $6.06 on Thursday afternoon.

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

More reading

• ‘Widespread flooding’ update: IAG (ASX:IAG) share price backtracks
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• The IAG (ASX:IAG) share price managed to gain 8% in February. Here’s how
• Top brokers name 3 ASX shares to sell next week
• ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week?

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 owns and has recommended Insurance Australia 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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It’s a tough day for S&P/ASX 200 Index (ASX: XJO) oil shares today.

At time of writing, the ASX 200 is up 1.4% while the S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.1%.

Big name players like Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL) and Beach Energy Ltd (ASX: BPT) aren’t helping out.

Of these 3 ASX 200 oil shares, only Santos is outperforming the Energy Index, with Santos shares down 1.7% at the time of writing.

Meanwhile the Woodside share price is down 4.5%, and Beach Energy shares have tumbled 6.2%.

So, what’s going on?

ASX 200 oil shares slide alongside crude prices

At this time yesterday, Brent crude oil was trading for US$130 per barrel, the highest level since 2008.

Energy prices skyrocketed during Russia’s initial deployment of forces along the Ukraine border and eventual full-scale invasion of its neighbour.

But overnight some early signs emerged that the conflict might end sooner than many fear. That could avert further humanitarian tragedies alongside quelling investors’ angst over limited energy supplies just as the world moves to fully reopen from COVID-19.

At time of writing, Brent crude oil is worth US$111 per barrel, down more than 15% in just over 24 hours, clearly putting pressure on ASX 200 oil shares.

While that’s still very pricey by historical standards, investors had been bidding up energy shares over the past month and look to be taking some profits off the table.

Despite today’s retrace the Woodside share price, for example, remains up 19.2% since 11 February.

Rival ASX 200 oil share Santos is up 2.7% over the month while Beach Energy shares are still up 5.4%.

What else is putting downward pressure on oil prices?

Word that OPEC might open up the taps wider also hit the markets yesterday.

Yousef al-Otaiba, the UAE’s ambassador to the United States said (quoted by Bloomberg), “We favour production increases and will be encouraging OPEC to consider higher production levels.”

A number of other OPEC nations were quick to pour cold water on the idea of ramping up output beyond the cartel’s current agreement. But the rift within OPEC looks to have helped send crude prices, and ASX 200 oil shares lower.

And yesterday in the United States, Energy Secretary Jennifer Granholm encouraged US producers to up their own production.

“We are on a war footing,” she said.

Granholm continued:

We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and to minimize harm to American families… Right now, we need oil and gas production to rise to meet current demand.

If producers outside of Russia do manage to make up for banned Russian oil exports, it could keep a lid on rocketing crude price.

Even so, at today’s US$111 per barrel, ASX 200 oil shares are enjoying some comfortable margins.

The post Why are ASX 200 oil shares taking such a beating today? appeared first on The Motley Fool Australia.

More reading

• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’
• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery
• Beach (ASX:BPT) share price up: Oil prices predicted to stay higher for longer

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 boss of Macquarie Group Ltd (ASX: MQG) has said that the United States is going to be the region that makes the most profit for the business in 2022.

Macquarie is one of the biggest businesses on the ASX. The global investment bank already generates two-thirds of its earnings from overseas.

It has a number of segments including banking and financial services, investment banking (Macquarie Capital), commodities and global markets, and asset management.

Macquarie is increasingly global

The Macquarie CEO, Shemara Wikramanayake, explained the situation at the Australian Financial Review Business Summit.

Ms Wikramanayake said:

With Macquarie businesses, we’re getting to the point where even though the Australian business is growing, we’re probably going to be now earning each year more income from Europe and North America. And certainly the US this year will be our biggest earning region.

What’s driving the strength of the US economy?

Macquarie’s leader explained that the US economy is performing strongly. Before COVID-19, it had reached full employment and wages were starting to rise.

The terrible impacts of COVID-19 led to lockdowns, which did impact some sectors and individuals, but the re-opening is helping. The US has also seen a much larger amount of stimulus – bigger than Australia’s. US stimulus amounted to US$5.4 trillion, which was 25% of GDP, compared to 15% in Australia, according to Ms Wikramanayake.

Wages growth could also start flowing through the national economy as well because the demand for workers is six times the labour market creation. So, Macquarie is expecting wages to grow strongly in the US.

Interest rate considerations

She also pointed out that the US Federal Reserve is entering this inflation environment with very low interest rates. The US Fed was expected to start rising in March by 0.50%, but now it seems the first rise will be a 0.25% increase amid the Russian invasion of Ukraine.

The supply chain impacts are still there, increasing inflation. But the flow-on impacts of the conflict and sanctions on Russia could lead to inflation increasing even faster.

However, the Macquarie boss suggested that the US Fed will want to strike a balance with the rate hikes so that the economy isn’t sent into recession by increasing the interest rate too quickly.

She also said:

And so if you had the slightest supply shocks in that environment, you exacerbate price as well. We’re going through really high energy prices and it could sustain if Russia-Ukraine plays out badly or if we’re doing the transition too fast.

Is the Macquarie share price a buy?

In the most recent update for the three months to December 2021, it said that there were improved market conditions. That month was a record quarter thanks to profit being substantially up with higher principal income in Macquarie Capital including “exceptionally strong” investment realisations in the infrastructure (including green energy), business services and technology sectors.

Citi currently rates the global investment bank as a buy, with a price target of $226.

The post Why Macquarie (ASX:MQG) says US will become bank’s ‘biggest earning region’ in 2022 appeared first on The Motley Fool Australia.

More reading

• Broker tips Macquarie (ASX:MQG) share price to rise 13%
• Why the Pilbara (ASX:PLS) share price is a buy right now: expert
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?
• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Australian markets have taken a backward step in 2022 as the reality of geopolitical conflict, rising inflation and interest rates, plus the potential for a slowdown in global growth sets in.

That’s a mouthful, but the reality nonetheless. Markets across the board are seeing red and correlations are all turning positive, meaning most asset classes are heading one way – south.

But that’s broadly speaking. At the extremes, there are plenty of shares that are outstripping their peers both here in Australian exchanges and on global terms.

Strong analysis and due diligence will generally trump those styles that involve simply jumping aboard the gravy train and betting on hope. Many experts argue that, over the past two years, there’s been a dislocation in fundamentals and the ‘hype’ of certain themes or trends.

That’s why, even as the S&P/ASX 200 Index (ASX: XJO) has slipped more than 4% this year to date, if we look a little deeper, we see there are still various pockets of green among ASX shares.

Don’t overlook microcaps, this fundie says

Whilst Australian large caps have suffered losses this year, Marcus Burns, portfolio manager at Spheria Asset Management, is bullish on the smaller end of town.

Micro caps – those ASX shares with a market capitalisation of below $300 million and that sit outside of the S&P/ASX 300 Index (ASX: XKO) – tend to be more volatile and carry more risks than your average passive index fund.

In fact, many large Australian fund managers are mandated to invest in ASX 200 companies for that very reason, in order to preserve client capital during times of volatility.

But not all fundies are bound by the same mandate, however, and active managers such as Spheria are able to explore the more underexploited areas of the market, away from the crowded large-cap space.

Speaking to Livewire recently, Burns noted that small-cap and micro-cap stocks are often “simpler than large companies”, and that one can often dig deeper and “get granular” when reading accounts.

As with all prudent investing, however, it’s essential to keep a cool head, focus on the fundamentals, and try to avoid the short-term hysteria. Again, the market seems to have been rewarding unsavvy behaviour of late, Burns said.

In micro caps people seem to have lost their way. They’re chasing stories and forgetting about valuation being important. We think valuation is important. Cash flow is central to valuation, and also works as a screening tool for us. All those things tie together to work as being central to our process.

Which ASX share is this expert bullish on?

Burns is constructive on NZME Ltd (ASX: NZM), the “old school media business in New Zealand”. This ASX share has its foothold on the radio network in NZ and is also the owner of the New Zealand Herald.

Not only that, but it also owns an online property portal called OneRoof, Burns says, and that’s sure to fold in more revenue at the top for the company in years to come.

Moreover, the fundie likes NZME’s pivot and transformation into digital media, something which he says the company has executed well to date.

“They’re going to get more out of digital advertising. That’s coming through strongly in the numbers. Also, the radio is starting to digitise, with some of the digital streaming services you can get on the radio,” he said.

The company is also in talks with media giants Google and Meta, nee Facebook, Burns says, and this might come through to earnings in a big way.

The graph above shows how the NMZE share price has been outperforming both the ASX 200 and the S&P/ASX Small Ordinaries Index (ASX: XSO).

NZME shares are currently down 2.59% for the day at $1.315 apiece. They are also slightly in the red this year to date. However, in the last 12 months, this ASX share has climbed more than 71% and is now up around 10% for the month.

The post Why this old-school ASX share is under-appreciated: fundie appeared first on The Motley Fool Australia.

More reading

• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Why are ASX uranium shares having such a stellar day?
• Why is the Block (ASX:SQ2) share price soaring 8% today?
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher

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

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The Zip Co Ltd (ASX: Z1P) share price is taking flight on Thursday despite there being no announcements from the buy now, pay later (BNPL) company.

In afternoon trade, shares in the instalment payment provider are up 8.3% to $1.765. So far today, more than 11 million Zip shares have changed hands.

Is a profitable future on the table?

The Zip share price, and the whole BNPL sector for that matter, have long been under pressure for their lack of profitability.

Once upon a time, this was not considered an issue by investors, as BNPL companies touted their blistering rates of growth. However, as the market becomes more mature and saturated, and the pressure of potentially higher interest rates loom, analysts have been less forgiving.

For reference, Zip’s trailing twelve-month (TTM) net loss at the end of December 2021 was $419.3 million. This showed an improvement upon the TTM net loss at the end of June 2021, which came in at $658.8 million.

Yet, some analysts were still disappointed by Zip’s latest results published on the ASX. Quoting the first-half loss of $214.2 million, the team over at UBS downgraded its outlook on the Zip share price.

However, an announcement from Sezzle Inc (ASX: SZL) today might have investors think that there still could be a path to profitability.

The BNPL company, which is set to be acquired by Zip, revealed it would be reducing its workforce by 20%. This reduction is expected to save Sezzle $10 million in costs per year.

Additionally, Sezzle CEO Charlie Youakim said, “Sezzle has experienced significant growth in its history and is now at an important juncture, as we look to take decisive steps toward profitability and free cash flow.”

Experts’ stance on the Zip share price

Aside from today, sentiment towards the Zip share price has been rather cold. As my colleague Monica recently covered, fund manager Abrdn Australian recently ditched Zip shares for a position in Pro Medicus Limited (ASX: PME).

Likewise, UBS analysts have a sell rating on the BNPL company. At present, the broker thinks the Zip share price is worth $1 — which would suggest a nearly 43% downside from here.

Finally, Zip shares are down roughly 79% over the past year.

The post Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Is the Zip (ASX:Z1P) share price heading on a one-way street to $1?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Glitch! Why are ASX tech shares getting hammered on Monday?
• Why we just sold Zip and bought Pro Medicus (ASX:PME) shares: fundie

Motley Fool contributor Mitchell Lawler 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 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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