Tag: Motley Fool

  • Here’s why the Core Lithium (ASX:CXO) share price is shooting 9% higher today

    A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding

    A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surroundingA brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding

    The Core Lithium Ltd (ASX: CXO) share price has continued its positive run on Wednesday and is charging higher.

    In morning trade, the lithium developer’s shares are up 9% to 96 cents.

    This means the Core Lithium share price is now up over 50% since the start of the year.

    Why is the Core Lithium share price shooting higher?

    The catalyst for the rise in the Core Lithium share price on Wednesday has been the release of an update on the company’s Finniss Lithium Project near Darwin.

    According to the release, Core Lithium now has the results of a series of nine deep diamond drill holes which were completed at the Carlton deposit. These holes were drilled along strike to the south and down dip to test for the continuity of the pegmatite and mineralisation at depth.

    The good news for shareholders is that eight of the nine holes intersected spodumene bearing pegmatite mineralisation. Management notes that these intersections support the current interpretation that the grade, consistency, and width of pegmatite intervals of the Carlton lithium mineralisation is improving with depth.

    Based on this, it is expecting an increase in the mineral resource estimate for Carlton from the current estimate of 3.02Mt. Further drill assay results are expected in the coming weeks, with a resource update planned during the second quarter of calendar year 2022.

    Core Lithium’s Managing Director, Stephen Biggins, commented: “We are very pleased to see our targeted diamond drilling at Carlton bearing the positive outcomes that we anticipated. The Carlton deposit is a key component of the under-construction Finniss Project, and we look forward to delivering an updated Mineral Resource estimate in the coming months. This, in combination with the recommencement of exploration and resource drilling, is in line with our stated strategy of further expand the mine life of the Finniss Project.”

    The post Here’s why the Core Lithium (ASX:CXO) share price is shooting 9% higher today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Core Lithium right now?

    Before you consider Core Lithium, 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 Core Lithium 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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  • The Coles (ASX:COL) dividend beats Woolworths. Does that make it a better income share?

    Woman thinking in a supermarket.

    Woman thinking in a supermarket.Woman thinking in a supermarket.

    Investors might be breathing a sigh of relief so far this Wednesday. The markets have actually opened in the green, and are giving investors some positive returns. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up around 0.7% so far this morning. But that goodwill is not extending to the Coles Group Ltd (ASX: COL) share price so far. Coles shares are currently lower today, losing 0.4% so far at $17.43 a share.

    Woolworths Group Ltd (ASX: WOW) shares are faring a little better. They are currently up 0.17% at $35.80. But for income investors, those metrics don’t matter nearly as much as the dividend yields these two ASX stalwarts currently have on the table.

    Coles is the clear winner here. On current pricing, Coles shares offer a dividend yield of 3.5%, which grosses-up to 5% if we include the value of Coles’ full franking credits. In contrast, Woolworths shares are currently offering a dividend yield of 2.63% (or 3.76% grossed-up).

    Consider this too. During earnings season last month, Coles managed to keep its interim dividend steady at 33 cents per share. Woolworths, on the other hand, gave its investors a dividend pay cut. It reduced its interim dividend to 39 cents per share, down 26.4% from last year’s interim payment of 53 cents per share.

    So those statistics alone certainly paint Coles in a better light than Woolies from an income perspective. But let’s see if Coles is really the better dividend share to own.

    Coles vs Woolworths dividend: Does size really matter?

    To do so, let’s first examine both companies’ payout ratios. That’s the proportion of earnings that the company is paying out in dividends. A higher payout ratio means higher dividends, but also less cash to reinvest into the business for future growth. Future growth also tends to mean higher dividends over time. So if a company is sacrificing future growth for dividend payments now, it could actually result in lower dividends over time for investors.

    So over the first half of FY2022, Woolworths delivered earnings per share (EPS) of 64.3 cents. Since Woolies paid out 39 of those cents as dividends, it puts its payout ratio at 60.65%.

    Coles earned 41.2 in EPS over the same period. Since the company’s interim dividend was 33 cents per share, that puts Coles’ payout ratio at a far-higher 80.1%.

    So that means Coles is doling out a far higher proportion of its earnings as dividends than Woolworths. That partially explains why its current dividend yield is so much higher. But as we discussed before, that doesn’t necessarily mean that Coles is the better income share to own from now until Judgement Day. If the extra money that Woolies is reinvesting into its business is well spent, it could mean better results for shareholders down the road.

    But it also proves that simply looking at metrics like dividend yields isn’t where an astute investor should stop in their analysis.

    At the current Coles share price, the ASX 200 grocery giant has a market capitalisation of $23.2 billion.

    The post The Coles (ASX:COL) dividend beats Woolworths. Does that make it a better income share? appeared first on The Motley Fool Australia.

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

    Before you consider Coles, 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 Coles 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 owns and has recommended COLESGROUP DEF SET. 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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  • Why the ASX 200 could outperform the US market for the next 10 years: expert

    woman in an office with their fists up after winningwoman in an office with their fists up after winningwoman in an office with their fists up after winning

    A big part of investing is deciding where your capital is likely to make the greatest return over a given time period. In the past, the S&P/ASX 200 Index (ASX: XJO) has not been the best option for investors when compared to index options in the United States.

    However, one fund manager is expecting that the Aussie share market will have its moment in the sun. This belief was shared by Regal Investment Management chief investment officer Phil King during the fund’s webinar last Thursday.

    So, let’s take a look at the thinking behind King’s bullish outlook for the Aussie index.

    How the ASX 200 might beat out the NASDAQ

    For a long time, investors have been attracted to the outlandish growth displayed by US-based tech companies. The proliferation of the internet, app-driven economies, and efficiencies of scale propelled companies in the tech industry to unbelievable heights — making many wealthy shareholders in the process.

    Meanwhile, mining companies experienced a less prosperous period. In fact, many ASX-listed resource giants traded below their 2008 highs until only recently.

    For some context, here’s a look at the share price performances of various tech and mining companies between 2008 and today.

    Due to the ASX 200’s heavy weighting towards resource companies, the local sharemarket underperformed the US during this time period, as shown in the chart below.

    TradingView Chart

    However, King points out that the weighting towards resources in the ASX 200 could be beneficial over the coming years.

    King believes reserve depletion, lacking supply, decarbonisation, and high inflation will lead to a decade-long boom in the resource industry.

    Less inflated tech in ASX 200

    Furthermore, the fund manager suggests the tech-heavy NASDAQ could still be overvalued. King goes as far as to say that the current ‘bubble’ is more pronounced than the 2000 tech bubble.

    The information technology is still one of the smallest sectors within the ASX 200. As such, the underweighting might also insulate the Australian market from further corrections in tech valuations.

    The post Why the ASX 200 could outperform the US market for the next 10 years: expert 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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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares) and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Up 250% in a year, why the Argosy Minerals (ASX:AGY) share price is charging higher today

    A woman charges up a steep hill in the mountain ranges.A woman charges up a steep hill in the mountain ranges.A woman charges up a steep hill in the mountain ranges.

    The Argosy Minerals Limited (ASX: AGY) share price is up 3.2% in early trade.

    Argosy shares closed yesterday at 32 cents and are currently trading for 33 cents.

    Below we look at the ASX lithium share’s latest progress update at its Rincon project.

    What progress was reported at the Rincon Lithium Project?

    The Argosy Minerals share price is gaining after the company reported plant and equipment manufacturing, procurement and delivery works were all progressing at its Rincon Lithium Project in Argentina.

    On completion, the project will be able to produce 2,000 tonnes per annum (tpa) of lithium carbonate.

    Among the newly-delivered gear were dryer/evaporator and vibrator equipment, all manufactured in Germany.

    Argosy reported it has also received its first batch of process tanks and reactors at the site, while the required chillers and coolers have been delivered and installed.

    The company is still awaiting delivery of some core components, including press and belt filters. These are coming from Asia and are expected to arrive on site in April, subject to potential shipping delays.

    Laboratory equipment, filters, valves and instrumentation are also scheduled for delivery next month.

    Argosy managing director Jerko Zuvela commented on the progress:

    Each phase of completed works gets us closer to becoming only the second ASX-listed battery quality lithium carbonate producer and cashflow generator during a period of record-high lithium prices, whilst also progressing toward the next stage 12,000tpa scale operations and beyond.

    We look forward to achieving our upcoming targets and commencing production operations this year at our Rincon Lithium Project.

    Argosy Minerals share price snapshot

    The Argosy Minerals share price has gained a whopping 250% over the past 12 months, dwarfing the 4% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

    So far 2022 has been choppier for Argosy, with shares down 1.5% year to date. Though that’s still well ahead of the All Ords’ 8.6% losses.

    The post Up 250% in a year, why the Argosy Minerals (ASX:AGY) share price is charging higher today appeared first on The Motley Fool Australia.

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

    Before you consider Argosy 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 Argosy 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

    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 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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  • Paladin Energy (ASX:PDN) share price jumps 9% on broker upgrade

    A man takes his dividend and leaps for joy.

    A man takes his dividend and leaps for joy.A man takes his dividend and leaps for joy.

    The Paladin Energy Ltd (ASX: PDN) share price has been a strong performer on Wednesday.

    In morning trade, the uranium producer’s shares are up 9% to 76.5 cents.

    Why is the Paladin Energy share price shooting higher?

    Investors have been bidding the Paladin Energy share price higher today after it was the subject of a broker note out of Bell Potter.

    According to the note, the broker has upgraded the company’s shares to a speculative buy rating with a 96 cents price target.

    Even after today’s strong gain by the Paladin Energy share price, this price target implies potential upside of 25% for investors over the next 12 months.

    Why did Bell Potter upgrade its shares?

    Bell Potter made the move in response to a recent pullback in the Paladin Energy share price, which it believes was “an over-reaction.” It also sees value in its shares given the ongoing recovery in uranium prices from cyclical lows.

    The broker explained: “We have upgraded our recommendation for PDN to Speculative Buy (from Speculative Hold), maintaining our NPV-based valuation of A$0.96/sh. The Uranium price continues to recover from cyclical lows, as limited near-term supply spurs the spot market, whilst the global path to decarbonisation re-shapes the role of nuclear energy over the longer-term.”

    Its analysts also highlight that Paladin Energy remains one of the best ways to gain exposure to uranium on the Australian share market and see further upside potential from upcoming events.

    Its analysts added: “PDN represents the largest and most liquid exposure to uranium on the ASX, with the pending restart decision at their flagship LHM. In our opinion, further upside may come from expansion of the resource base, extending the LHM mine life and/or materially higher uranium pricing.”

    The post Paladin Energy (ASX:PDN) share price jumps 9% on broker upgrade appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Paladin Energy right now?

    Before you consider Paladin Energy, 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 Paladin Energy 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 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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  • 52% of Aussies will never put money in this investment

    An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks as he reads about the Crown share price and anticipated AUSTRAC fines on his laptopAn older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks as he reads about the Crown share price and anticipated AUSTRAC fines on his laptopAn older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks as he reads about the Crown share price and anticipated AUSTRAC fines on his laptop

    Australians have been shown to be a sceptical bunch, according to the results of a recent international study.

    According to a global survey conducted by consumer research firm Toluna, the majority of Australians (52%) have declared they would never invest in cryptocurrencies.

    This compares to an average of just 10% in other countries.

    And to double down, 34% of Aussies think crypto is “just hype” and would “crash soon”.

    Rat poison squared?

    Perhaps Australians have much in common with famous US investor Warren Buffett, who once called Bitcoin (CRYPTO: BTC) “probably rat poison squared”.

    Neither he nor his longtime right-hand man Charlie Munger can understand how an asset with no intrinsic value can appreciate so rapidly.

    Cryptocurrencies like Bitcoin and Ethereum (CRYPTO: ETH) are only worth something because there is a demand for them.  

    However, digital currency proponents argue that the value of fiat currencies are also artificially created by demand.

    Sovereign currencies like the US dollar, UK pound or the Australian dollar are not representative of any good. They simply hold value through social agreement.

    Although some countries hold gold reserves, they are not linked to the amount of money in circulation.

    Is crypto the solution for developing economies?

    Continuing the sceptical streak, the majority of Australians (51%) also thought cryptocurrency is a project with no guarantee of success.

    The biggest reasons why Aussies avoided investing in crypto were:

    • Fear of risk, felt by 44% of Australians
    • Lack of understanding of cryptocurrency, felt by 34% of Australians

    Toluna’s international survey also showed people in developing countries were far more open to the idea of cryptocurrencies than investors in wealthier nations.

    “The most receptive countries to cryptocurrency were Vietnam, the Philippines, Thailand, and India,” stated Toluna.

    “62% of respondents in Latin America believed cryptocurrency was a long-term upward trend, compared to 15% in North America.”

    This can be attributed to the lower level of trust in financial institutions and governmental organisations in poorer countries. Significant parts of the population in such regions don’t have a bank account.

    While El Salvador is the only nation to count cryptocurrency as legal tender after it legalised Bitcoin last year, experts have predicted more developing economies would follow.

    The post 52% of Aussies will never put money in this investment 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 Tony Yoo owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why is the Accent (ASX:AX1) share price further sliding today?

    Close-up of man looking at trainer/sneaker and grimacingClose-up of man looking at trainer/sneaker and grimacingClose-up of man looking at trainer/sneaker and grimacing

    The Accent Group Ltd (ASX: AX1) share price is heading south during early morning trade on Wednesday. This comes despite the fashion shoe retailer not releasing any market-sensitive news today.

    At the time of writing, Accent shares are down 0.90% to $1.66 apiece.

    Why are Accent shares falling today?

    While the company posted a disappointing first-half result, investors are selling Accent shares as they go ex-dividend today.

    This means that investors who bought the company’s shares on Monday will be eligible for the upcoming dividend. Anyone who purchases the shares today will miss out as the previous seller has secured the dividend.

    Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out.

    When can Accent shareholders expect payment?

    For those eligible for Accent’s interim dividend, shareholders will receive a payment of 2.5 cents per share on 17 March. The dividend is fully franked which means that investors will receive tax credits to put towards their tax bill.

    The board reduced the latest dividend by 69% from the 8 cents declared in the prior comparable period.

    On an annualised basis, Accent has a trailing dividend yield of 6.72%.

    Are Accent shares a buy now?

    Following the company’s H1 FY22 results, a number of brokers weighed in on the Accent share price.

    The team at Morgans as well as Wilsons, both slashed their 12-month price target by 4.2% to $2.30 apiece. Based on the current share price, this implies an upside of roughly 37% according to the brokers.

    However, UBS analysts had a different view, reducing its outlook on Accent shares by 9.1% to $2.50. This represents an upside of almost 50% from where the company’s shares are trading today.

    Accent share price summary

    Over the past 12 months, the Accent share price has declined by around 28%. It’s worth noting that these losses have come from year to date, which Accent is down 31%.

    Based on valuation grounds, Accent commands a market capitalisation of around $907.63 million and has approximately 541.87 million shares outstanding.

    The post Why is the Accent (ASX:AX1) share price further sliding today? appeared first on The Motley Fool Australia.

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

    Before you consider Accent, 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 Accent 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 recommended Accent 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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  • Origin (ASX:ORG) share price higher on $250m buyback and refreshed strategy

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

    The Origin Energy Ltd (ASX: ORG) share price is on the move on Wednesday morning.

    At the time of writing, the energy company’s shares are up 2% to $5.91.

    This means the Origin share price is now up 10% since the start of the year.

    Why is the Origin share price charging higher today?

    The catalyst for the rise in the Origin share price on Wednesday has been the release of a positive announcement this morning.

    According to the release, Origin has decided to return funds to shareholders through an on-market $250 million share buyback which will commence in April.

    Origin’s CEO, Frank Calabria, said: “Origin is in a strong financial position, with a robust outlook for the business and a capital structure comfortably within our target range. This means we are now in a position to increase shareholder distributions with a share buyback of $250 million. Going forward, we will continue to balance expected increased cash flow available for shareholder distributions with growth investments.”

    The company also revealed that further capital management initiatives may be considered over time. This will be subject to operating conditions and capital allocation alternatives.

    Origin’s refreshed strategy

    In a separate announcement, Origin has provided an update on its refreshed strategy.

    Management advised that its ambition with this strategy is to lead the transition to net zero through cleaner energy and customer solutions.

    It wants to achieve this while at the same time cutting its costs. Origin is aiming to be the lowest cost retailer and is targeting a $200 million to $250 million cash cost reduction by FY 2024 based on FY 2018 costs. This will be supported by its scalable Kraken platform which aims to deliver a superior customer experience at lowest cost.

    Origin also revealed that it aims to have 5,000 electric vehicles under management by FY 2026 with its full end-to-end EV fleet management solution.

    Judging by the Origin share price performance today, investors appear pleased with what it heard.

    The post Origin (ASX:ORG) share price higher on $250m buyback and refreshed strategy appeared first on The Motley Fool Australia.

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

    Before you consider Origin, 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 Origin 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 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 Tyro share price (ASX:TYR) has crashed 45% in 2022. Here’s why this fundie says ‘the future could look quite different’

    A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.

    A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.

    The Tyro Payments Ltd (ASX: TYR) share price has sunk 46% since the start of 2022.

    From the 2 November 2021, the payments business has actually sunk by 61%.

    Fund manager Chris Prunty from QVG Capital outlined to Livewire why Tyro Payments could actually be a promising idea.

    What does it do?

    Tyro may not be a household name (yet?), but the company is used by thousands of small businesses around the country. It provides payment terminals for businesses like cafes and retailers.

    What has happened to the Tyro share price?

    Many analysts judged that the company didn’t perform to expectations in the first half of FY22.

    Half-year transaction value grew by 30.6% to $15.8 billion, revenue rose 29.9% to $149.2 million and payments gross profit (before the Bendigo and Adelaide Bank Ltd (ASX: BEN) profit share) grew 25.4% to $68.1 million. However, statutory gross profit only increased 16.3%. The ‘normalised’ earnings before interest and tax (EBIT) sank 322.2% to a loss of $10.9 million and the statutory loss before tax worsened by 430% to $18.1 million.

    Ord Minnett and Morgans both rate the business as a buy, but noted that margins and costs were worse than expected. Brokers are expecting growth from the business.

    Why is the Tyro share price an opportunity?

    Speaking to Livewire, Mr Prunty believes that Tyro is going to be profitable next year and also start generating free cash flow. This may mean that more investors start looking at the business, particularly the ones that exclude unprofitable businesses from their watchlist.

    He said that to some investors it looks “untouchable”, but when it does get to profitability, then “that future could look quite different”.

    How is the company’s most recent trading activity going?

    Whilst margins aren’t what some investors were expecting in the first half, Tyro does continue to grow.

    In January, the business saw its transaction value increase by 35% year on year to $2.7 billion. E-commerce transactions are growing quickly from a small base, growing 836% to $36.5 million. The payments business saw a gross profit of $11.1 million, up 24%. In its banking business, loan originations in the first seven weeks of 2022 were $5.8 million – up 1,099%.

    The February growth was even faster. Transaction value up to 18 February was up 50% on the same period last year to $1.8 billion.

    Tyro share price snapshot

    Over the last year, Tyro shares have fallen by 51%.

    The post The Tyro share price (ASX:TYR) has crashed 45% in 2022. Here’s why this fundie says ‘the future could look quite different’ appeared first on The Motley Fool Australia.

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

    Before you consider Tyro , 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 Tyro 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 Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tyro Payments. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Tyro Payments. 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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  • You can’t pick the bottom, but here are 4 ASX shares already bargains

    A group of four people plays hook-a-duck at the fairground.A group of four people plays hook-a-duck at the fairground.A group of four people plays hook-a-duck at the fairground.

    Inflation and war have killed morale in the share market this year.

    Despite a mini-revival in February, the S&P/ASX 200 Index (ASX: XJO) is still more than 7% down for the year.

    And no one knows when the carnage will stop.

    Tribeca portfolio manager Jun Bei Liu reminded investors of the old axiom that trying to guess when the market has hit a trough is a fool’s game.

    But if you already have an idea that ASX shares are pretty cheap, you need to strike.

    “It’s hard to pick the very bottom,” she told Switzer TV Investing.

    “But you know it’s coming. Maximum uncertainty is the time when you should start at least accumulating your positions.”

    The idea is that if you can buy shares in quality companies at a roughly reasonable price then you will win in the long run, regardless of whether you bought exactly at the bottom.

    So with that in mind, here are some ASX shares that Liu would buy at the moment:

    Great reporting season, but all these ASX shares are down

    Job classifieds site Seek Limited (ASX: SEK) has seen its shares plunge more than 20% this year.

    This just makes Liu more hungry to add more of the stock to her portfolio.

    “One of the best results out of reporting season was Seek,” she said.

    “And look at the share price. It led to a double-digit earnings upgrade and the share price is lower than what it [was] before.”

    Ord Minnett senior investment adviser Tony Paterno last week agreed that Seek is a stock to buy after an impressive updated guidance.

    “We expect Seek to continue extracting value during the next 12 to 18 months.”

    Liu is also bullish on ASX healthcare shares, especially those “blue chips” that have established track records.

    “If you look at healthcare names, they have underperformed. Not because of the war, but they’ve underperformed because they were expensive companies, relative to other sectors.”

    She specifically named CSL Limited (ASX: CSL), Resmed CDI (ASX: RMD) and Cochlear Limited (ASX: COH) as ones to target right now.

    “All of them have reported pretty good numbers… And since then the share prices have come off again,” Liu said.

    “All of that together makes these companies absolute standouts. When there’s a rebound it is these companies that will be the first ones to move [upwards].”

    The benefit of betting on market leaders is that when interest rates inevitably move up, they will be ready for combat.

    “They have pricing power. They can apply faster price increases so that their earnings growth is not going to be impacted,” she said.

    “These companies will continue to grow.”

    The post You can’t pick the bottom, but here are 4 ASX shares already bargains appeared first on The Motley Fool Australia.

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    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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    Motley Fool contributor Tony Yoo owns CSL Ltd., Cochlear Ltd., and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Cochlear Ltd., ResMed Inc., and SEEK 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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