Tag: Motley Fool

If you own ASX shares you’ll almost certainly be facing the twin concepts of risk and uncertainty today.

With news out that Russian forces have entered Ukraine’s separatist Donbas region, ASX shares are, broadly, taking a beating.

At time of writing, the All Ordinaries Index (ASX: XAO) is down 2.9% for the day.

That’s part of the inherent short-term risk that comes with investing in the stock market.

But as George Wong, a senior financial advisor at Kauri Asset Management, explains, we shouldn’t conflate risk with uncertainty.

A tolerance for uncertainty when investing in ASX shares

According to Wong, courtesy of Live Wire:

One of the common misconceptions in the market is that uncertainty and risk are the same thing. While they may be interconnected, given uncertain events tend to be risky in nature, there is an important distinction that often goes without observation.

First, risk is a probability of an undesirable outcome, which in the market would typically be a permanent loss of capital.

However, a decision mired in uncertainty may be beneficial to achieve a desirable outcome, provided you have done your due diligence in order to mitigate your risk.

Investors opting for for the potentially higher returns from ASX shares over a bank deposit can generally tolerate some uncertainty.

“This is why people invest in the stock market instead of putting money in the bank, as most have a tolerance for the uncertainty that may be required in order to generate what are typically higher returns compared with cash,” Wong said.

But that tolerance for uncertainty is likely to vary with age. For good reason.

Take younger investors seeking to build their long-term wealth and beat inflation, for example.

“The certainty of a fixed-rate of return associated with investing in cash is unlikely to help a young investor achieve a desirable outcome,” Wong said. “On the other hand, someone nearing retirement would be well served by more certainty and stability in their investment environment.”

Embrace uncertainty

Understanding the difference between risk and uncertainty when investing in equities like ASX shares “is at the heart of being able to identify investment opportunities, even during a volatile period as we are witnessing right now,” Wong said.

“This is because uncertainty often presents itself as a risk to investors, prompting losses across the market to snowball,” he added. “When this momentum leads to mispriced outcomes, uncertainty provides investment opportunities for those with conviction to buy. This is why we should embrace uncertainty.”

The post Own ASX shares? Expert reveals why uncertainty and risk are not the same appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost
• Top broker says it’s time to buy Rio Tinto (ASX:RIO) shares
• Bad ATM? The ANZ share price was hammered more than any other ASX 200 bank today
• EML Payments (ASX:EML) share price just hit a 52-week low, is it a buy?

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.

from The Motley Fool Australia https://ift.tt/gi2FLMQ

The Brainchip Holdings Ltd (ASX: BRN) share price is suffering a headache on Thursday following the release of the company’s annual report last night.

In afternoon trade, the artificial intelligence (AI) technology company’s shares are down 7.2% to $1.16. In light of the fall, ASX-listed Brainchip is now down 50% from its 52-week high.

Brainchip share price weakens on another year of losses

• Revenue from operations up 1,215% on prior corresponding period to $1.59 million
• Operating losses deepen to $19.52 million from $11.17 million
• Losses from continuing operations after tax improve 22% to $20.98 million
• Diluted loss per share of 1.22 cents per share, improving from 1.76 cents per share

What else happened during the year?

The Brainchip share price underwent an eventful year during the 12 months ended 31 December 2021. As pointed out in the annual report, it was a year of evolution for the chip developer. Crossing the barrier between research and development company, over to a supplier of AI technology.

Notably, Brainchip forged forth with its Akida neuromorphic AI architecture throughout 2021. In the process, shipping its first production chips in partnership with Socionext America and Taiwan Semiconductor Manufacturing Company (NYSE: TSM). Since then, preparations to manufacture at volume have commenced.

Importantly, the company has continued to work on protecting its intellectual property surrounding the Akida technology. In 2021, ten new international patents were filed and four previously filed patents were granted.

Additionally, Brainchip highlighted that it expects to significantly increase its patent portfolio throughout 2022. However, it seems the Brainchip share price is not benefitting from the ambitions.

What did management say?

Commenting on management changes in the year that has passed, Brainchip chair Emmanuel Hernandez wrote:

Mr Louis DiNardo stepped down as CEO in March, and Mr Sean Hehir was appointed as CEO in November, allowing interim CEO Peter van der Made to focus his attention on the ongoing technical development of Akida. Mr van der Made deserves our deepest gratitude for stepping up to manage the business while the Company secured the right candidate to guide BrainChip to full commercialisation of the Akida device IP.

Brainchip share price snapshot

The performance of the Brainchip share price has been nothing short of astonishing over the last year. Rising by more than 125%, the chip developer has far exceeded the returns of most companies on the ASX — making Brainchip a winner for shareholders.

A flurry of patents at the beginning of this year has also helped the Brainchip share price continue its streak in 2022. On a year-to-date basis, shares are up 48.7%, while the S&P/ASX 200 Index (ASX: XJO) is down 7.6%.

The post Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost appeared first on The Motley Fool Australia.

More reading

• Why is the Brainchip (ASX:BRN) share price tumbling 6% on Monday?
• Why Aussie Broadband, BrainChip, Talga, and Telstra shares are pushing higher
• What’s driving the BrainChip (ASX:BRN) share price 14% higher today?
• Own BrainChip (ASX:BRN) shares? Here’s some of the institutional investors which have also bought up big
• Why is the BrainChip (ASX:BRN) share price storming 12% higher?

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 Taiwan Semiconductor Manufacturing. 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.

from The Motley Fool Australia https://ift.tt/lyMPTSs

The Rio Tinto Limited (ASX: RIO) share price tumbled with the rest of the market on Thursday.

The mining giant’s shares fell almost 4% to end the day at $115.35.

Is this a buying opportunity?

One leading broker that sees the weakness in the Rio Tinto share price as a buying opportunity is Goldman Sachs.

According to a note, this morning the broker retained its buy rating and lifted its price target on the miner’s shares to $131.50. Based on the current Rio Tinto share price, this implies potential upside of 14% over the next 12 months.

But Rio Tinto is of course a big dividend payer, so the returns don’t stop there. Goldman has pencilled in a US$9.30 per share (~A$12.90 per share) fully franked dividend in FY 2022.

So, with the Rio Tinto share price fetching $115.35 at present, this equates to a massive yield of 11.2%, bringing the total return to over 25%.

What did Goldman say about the Rio Tinto share price?

Goldman commented: “Our 2022/2023/2024 EPS up 2%/4%/6% on incorporating our commodity team’s recent aluminium price upgrades, which has more than offset increases to our unit cost assumptions across most divisions due to our expectations of ongoing industry cost inflation.”

“Despite ongoing operational issues and concerns over future growth (Pilbara heritage and replacement mines, Simandou, Oyu Tolgoi, Resolution) and uncertainty over decarbonisation capex, we rate RIO a Buy.”.

The broker then highlighted five key reasons for its bullish view on the Rio Tinto share price.

These are its attractive valuation (1x NAV and 4x FY22 EBITDA), strong free cash flow and dividend yield, positive near term iron ore outlook, a return to production growth in FY 2022, and its compelling low emission aluminium exposure.

All in all, the broker sees Rio Tinto as a top option in the resources sector right now.

The post Top broker says it’s time to buy Rio Tinto (ASX:RIO) shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
• Rio Tinto (ASX:RIO) share price in focus today following record-breaking results
• 5 things to watch on the ASX 200 on Thursday
• The iron ore price outlook could be darkening amid China’s latest plans
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/NVXprh0

Let’s get this out of the way first. The S&P/ASX 200 Index (ASX: XJO), well, it had a shocker today. At the closing bell, the ASX 200 was down by a very depressing 2.99%. That’s the largest one-day fall we have seen in quite a while. That’s never a good sign for the ASX bank shares.

The big four ASX banks make up four of the six largest companies on the ASX 200 Index by market capitalisation. Between them, they account for almost 20% of the entire ASX 200’s weighting. So the ASX 200 isn’t going to go down by a whopping near-3% without dragging the banks down with it.

The largest of the big four, Commonwealth Bank of Australia (ASX: CBA), ended the day down by 2.05%.

National Australia Bank Ltd (ASX: NAB)? It lost 2.49%. Westpac Banking Corp (ASX: WBC) was down a meaty 2.36%.

But it’s the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price that has copped it the worst today. ANZ shares fell by a very horrible 3.44% and at the close were going for $26.68 a share.

ANZ share price singled out for punishment today. But why?

ANZ shares have arguably not been on the right side of ASX investors for a while now.

NAB and CBA shares have both given investors returns exceeding 15% over the past 12 months. Yet ANZ is up just 0.1% over the same period. And the bank was even technically kicked out of the ‘big four’, albeit briefly, back in November last year. That was when the market cap of Macquarie Group Ltd (ASX: MQG) exceeded ANZ’s, making it the fifth-largest ASX bank for a time.

Earlier this week, my Fool colleague Tony looked at some of the reasons why ANZ hasn’t seemed to be the pick of the ASX bank share bunch for a few years now. The bank’s falling share of the owner-occupied housing market may be to blame. That’s due perhaps to processing issues it has recently had with writing mortgages.

But investors don’t seem to be in a forgiving mood today.

This ASX 200 big four bank has a market capitalisation of $74.97 billion, with a dividend yield of 5.33%.

The post Bad ATM? The ANZ share price was hammered more than any other ASX 200 bank today appeared first on The Motley Fool Australia.

More reading

• Should you be buying ASX 200 bank shares in February?
• Why ANZ (ASX:ANZ) shares have been punished, but experts are now bullish
• 2 big-cap ASX shares that even this small-cap expert recommends
• Is the ANZ (ASX:ANZ) share price a buy for the 7.3% dividend yield?
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/wHu8fbX

The EML Payments Ltd (ASX: EML) share price has dropped heavily. Could it be an opportunity?

EML is down 7% today, amid market volatility in relation to Russia invading Ukraine. There have been a lot of declines in recent times for EML. The last month shows an 15% drop of the EML Payments share price and the past six months shows a 42% decline.

The EML share price has fallen so far that it is now below the level that it collapsed to after the news of the Central Bank of Ireland (CBI) investigation.

What’s happening to the EML share price?

You’d need to ask the sellers of today, and the last few months, why they decided to sell for a lower price than before, and what encouraged them to sell.

Investors can decide to react to different pieces of news with varying responses.

Analysts were concerned that EML’s European growth would be significantly limited if the CBI decided to impose major growth limitations based on concerns surrounding anti-money laundering and counter-terrorism financing (AML/CTF).

But there was a CBI update in November 2021. CBI said that it would permit EML’s European subsidiary (PCSIL) to sign new customers and launch new programs whilst staying within the material growth restrictions. PCSIL is confident that it can meet these obligations.

CBI also said that it’s satisfied to continue to continue to engage with PCSIL with a view to agreeing appropriate limits under its risk management and controls framework.

But, the CBI did say it intends to implement material growth limitation on total payment volumes for 12 months, or earlier if a remediation plan has been effectively implemented. PCSCIL has been removing higher volume, lower-yielding programs to enable it to comply with a material growth restriction.

Reaction after its FY22 half-year result

The EML share price, and share prices of many businesses, often react to a business’ result.

Looking at the EML report, gross debit volume (GDV) jumped 209% to $31.6 billion thanks to organic growth in all segments as well as the acquisition of Sentenial. Revenue grew by 20%. The gross profit margin was impacted by lower net interest and lack of European set up fees.

Interest revenue is expected to improve in the second half of FY22 as announced central bank interest rate increases improve yields.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 4% to $26.9 million. The underlying net profit after tax (NPATA) rose 6% to $13.1 million.

The EML share price had fallen by 15% between reporting day and yesterday (before the Russian invasion).

Analyst ratings on the EML share price

Brokers think there is significant upside for EML shares.

UBS has a buy rating on the business with a price target of $4.55. That’s more than 90% higher than today. The broker thinks the market was being too focused on the cons and not enough of the pros of the business. Higher interest rates will help earnings in the coming financial years. On UBS numbers, the EML share price is valued at 20x FY23’s estimated earnings.

Ord Minnett also rates the EML Payments share price as a buy, with a price target of $4.03. It recognises the ongoing growth of the business, though costs were higher in HY22. It thinks that FY23 looks promising.

The post EML Payments (ASX:EML) share price just hit a 52-week low, is it a buy? appeared first on The Motley Fool Australia.

More reading

• Why EML (ASX:EML) shares could be set for a rebound, but not for the reason you might think
• These were the worst performers on the ASX 200 last week
• Don’t fear the rise! One ASX share that’s ready for an interest rate hike
• EML (ASX:EML) share price sinks 9% despite record-breaking product demand
• Is the EML (ASX:EML) share price the most undervalued growth opportunity?

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

from The Motley Fool Australia https://ift.tt/rHMjJkf

Right now, I’m sitting at my desk, a little numb.

My Twitter feed is full of real-time reports of the Russian invasion of Ukraine.

True, it’s half a world away, but I can’t help but think “There but for the grace of whatever god there may be, go I”.

The invasion is, of course, unconscionable. Despicable.

Ukrainians are pondering a scary and uncertain future, not sure what happens next. Hoping, I’m sure, for the best, but perhaps expecting the worst.

For a world used to relative peace (with exceptions) in modern times, this is a sobering slice of ugly reality.

I’m a finance guy, of course. The Motley Fool is an investment advisory business.

Markets are down today. By a decent margin.

I’ll get to that, but it’s hard to prioritise a relatively small percentage point loss, against what the people of Ukraine have awoken to this morning, their time.

I just did a finance segment on Radio 2GB in Sydney. Yes, the market is ugly, I said. But it’s hard to make that the first thing we talk about, given the impact on lives in Europe.

And yet, as I said, I’m a finance guy, working for an investment company. So, knowing that people would be worried, and in keeping with my area of expertise, I did what I thought was important: I explained what’s going on, finance-wise, and I put it in the context of the long term journey of wealth creation and preservation.

And, of course, it’s possible to walk and chew gum at the same time: to fully acknowledge the horror of an invasion of Ukraine and at the same time consider the investment response.

So, I’ll do that, here, too, for our members and readers.

Because it’s at times like these that I think our advice can be most useful.

It’s when the world is feeling like it’s spinning out of control that it’s most important to keep a cool head.

And, frankly, it’s times like these that I hope the value of having a little reassurance comes to the fore.

So, here’s what I want you to know:

I want you to know that no-one knows what the short-term will bring. Just as geopolitics is unpredictable, so is the share market.

Why? For the same reasons: the fundamentals are one thing… but in the short term it’s people who influence things most. Sentiment. Mood. Emotion. Panic. Fear. Greed. They’ll all govern how share prices move in the next few days and weeks.

And the problem is that we can’t know how that’ll change. Maybe investors and traders go into a long, drawn-out funk. Or maybe bargain hunters start buying first thing in the morning, and the ASX closes higher tomorrow.

I don’t know, and you don’t know. And we need to make our peace with that short-term uncertainty.

I want you to know that, with a few exceptions, ASX-listed companies won’t be doing anything different tomorrow, next week, next month or next year, no matter what happens in Ukraine.

Which means that any share price falls are completely disconnected from business fundamentals in many, frankly most, cases. Woolworths Group Ltd (ASX: WOW) keeps selling groceries. Cochlear Limited (ASX: COH) keeps restoring hearing. Commonwealth Bank of Australia (ASX: CBA) keeps processing transactions.

I want you to know that we’ve been here before. Dozens of times.

We’ve lived and invested through wars, terror attacks, financial crises and health crises. We’ve lived and invested through currency crises, inflation crises, political crises and geopolitical crises.

None of it was fun. Almost all of it was volatile, and stomach-churning.

But, as you know by now, none of it stopped the market’s relentless, if two-steps-forward-one-step-back inexorable long term rise.

And I want you to know what I’m doing: investing.

Right now, I have $43.84 in my investing account. Everything else is in the market.

Which means… Well, it means today hurts.

But it is entirely keeping with my investing approach.

I’m (almost) always fully invested.

Why? Because, over time, the market has always set new highs.

Not in the absence of tough days like today.

But despite these sorts of days.

And if the market is likely (in my view) to trend higher over time, the longer I wait to invest my savings, the more likely it is to cost me money.

No, not on days like today.

But on all of those other days when the market rises: slowly, often imperceptibly, but meaningfully.

I’ll tell you what else I’m doing: I’m waiting with baited breath for my pay to hit my account in the next couple of days.

I’ll be investing it almost immediately (Motley Fool trading rules notwithstanding).

Again, not because I know the market is poised to go higher immediately… but because I think it will go much higher over the long term, and I want as much exposure to those gains as I can get.

My investment horizon is measured in decades.

I expect the ASX (and the US market, among others) to be much, much, much higher in 20 or 30 years.

I want my share of that value creation.

The price?

There are two prices to be paid:

First, I have to give up current consumption, and put money away for ‘future Scott’.

Second, I have to accept that the journey will be bumpy, even if the destination makes all of those lumps and bumps worthwhile.

That might be cold comfort on days like today.

But that’s exactly when we need to hear it.

If you measure your investment goals in seconds, minutes, hours, days, weeks or months, I can’t help you.

I doubt anyone can.

But if your investment horizon is measured in years, I have good news.

Over decades, the ASX has created massive amounts of wealth. Through the best and the worst that the 20th and 21st centuries have been able to throw at it.

True, there’s no guarantee that the future will be the same as the past.

But it would be a brave person to throw out 120 years of history.

It’s time to hunker down and commit to staying the course.

Maybe it gets worse before it gets better. Maybe this is as bad as it gets.

Either way, my money – literally, shares are my only investment – says there are many and much brighter days ahead for investors.

I also hope the same is true for Ukraine.

Fool on!

The post Share prices are tanking. Please read this appeared first on The Motley Fool Australia.

More reading

• Perpetual (ASX:PPT) share price withstands worst of sell-off after profit doubles
• Did Putin just hammer the Bitcoin price?
• Top brokers name 3 ASX shares to sell today
• This ASX 200 mining share is combatting the carnage to rise 13% today. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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

from The Motley Fool Australia https://ift.tt/R3HWPct

The Perpetual Limited (ASX: PPT) share price was in the green by 2% this morning after the company released its half-year results. The share price hit an intraday high of $36.66 within the first hour of trading.

However, Perpetual couldn’t escape this afternoon’s broader market sell-off as tensions between Russia and Ukraine escalated.

Perpetual shares finished the session at $35.52 apiece, down 1.2%. By comparison, the S&P/ASX 200 Index (ASX: XJO) took a greater hit, finishing 3% down at 6,990 points.

Let’s take a look at what the wealth management company reported today.

Perpetual share price responds to NPAT doubling

Highlights of the company’s half-year (H1 FY22) results include:

• Net profit after tax (NPAT) of $59.3 million, a 113% improvement on the prior corresponding period (pcp)
• Fully franked dividend of $1.12 per share, a 33% boost on pcp
• Underlying profit after tax up 54% on pcp to $79.1 million
• Underlying profit before tax up 56% on pcp to $109.6 million
• Operating revenue up 37% on pcp to $384.9 million.

What else happened in the half?

Strong earnings growth across all four of the company’s divisions underpinned its profit boost and revenue gains.

Perpetual Asset Management International achieved a 205% surge in underlying profit before tax (UPBT) on the pcp. Assets under management surged 16% on H1 FY21 to $77.2 billion. The Trillium and Barrow Hanley acquisitions contributed to this growth.

Meanwhile, UPBT in Perpetual’s Australian asset management division surged 42% on H1 FY21, underpinned by “strong relative investment performance, positive net flows, higher average equity markets and lower variable remuneration”. Assets under management in this division jumped from $22.7 billion to $25.6 billion.

Further, the Perpetual Corporate Trust Division achieved a 19% higher UPBT, driven by continued growth across its three business units. Funds under administration surged 6% on the pcp to $990.4 billion. Perpetual acquired Laminar Capital and incorporated it into a new digital division.

Meanwhile, Perpetual Private UPBT surged 56% on the pcp due to positive net flows, strong investment performance, and higher market and non-market revenue. Perpetual also completed its acquisition of Jacaranda Financial Planning during the half.

Perpetual has offices in Australia, the United States, the United Kingdom, the Netherlands, and Singapore, as well as a presence in Hong Kong.

Management commentary

Commenting on the results, CEO and managing director Rob Adams said:

We are delivering solid earnings growth across our business, with all four of our operating divisions demonstrating positive momentum.

Our diversified business model has gone from strength to strength, generating both reliable and growing returns while also providing Perpetual with a clear point of differentiation in the market.

What’s next for Perpetual?

Perpetual confirmed its FY22 operating expense growth guidance of 18% to 22%. The company is seeing positive momentum in all of its divisions going into the second half and is confident of continuing to scale globally.

The company believes it is in a good position to deliver organic growth due to its sound balance sheet and headway on its global distribution strategy.

Speaking on the outlook, Adams added:

Current and expected market conditions appear likely to suit the value style investment approaches of Perpetual’s Australian Equities team and the teams at Barrow Hanley, both having delivered strong results for investors over many decades.

Our positioning in ESG investment is delivering results and investor interest is high, as evidenced by Trillium’s strong growth. PCT goes from strength to strength across all its business lines, and PP’s long run of positive net flows is set to continue.

Perpetual will pay an interim dividend of $1.12 per share on 1 April.

Perpetual share price summary

The Perpetual share price has soared by about 12% in the past 12 months. For perspective, the benchmark ASX 200 has returned about 2% over the past year.

Perpetual has a market capitalisation of about $2 billion.

The post Perpetual (ASX:PPT) share price withstands worst of sell-off after profit doubles appeared first on The Motley Fool Australia.

More reading

• Did Putin just hammer the Bitcoin price?
• Top brokers name 3 ASX shares to sell today
• This ASX 200 mining share is combatting the carnage to rise 13% today. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Appen, City Chic, Flight Centre, and Life360 shares are sinking

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.

from The Motley Fool Australia https://ift.tt/Nsq4LtZ

The Bitcoin (CRYTPO: BTC) price is down more than 6% over the past 24 hours, currently trading at US$35,475 (AU$49,192).

It’s no secret why.

Russian-Ukrainian tensions nearing the boiling point

The geopolitical situation in Eastern Europe has turned sharply towards the negative today.

In the latest move roiling crypto and share markets alike, Russian President Vladimir Putin authorised special operations of Russian forces in Ukraine’s separatist Donbas region.

Many Western analysts are warning of the potential of an all-out war, though Putin told Russian TV that his nation has no intentions to occupy Ukraine.

But that’s done little to placate investors.

Alongside a tanking Bitcoin price, the S&P/ASX 200 Index (ASX: XJO) is down a gut-churning 3.1% in afternoon trading.

Risk assets, like many tech shares, are taking the brunt of the beating, witnessed by the 5.4% intraday crash of the S&P/ASX All Technology Index (ASX: XTX).

Bitcoin price tumbles as investors de-risk

Addressing the headwinds hammering the Bitcoin price of late, Josh Gilbert, crypto analyst at multi-asset investment platform eToro, told the Motley Fool:

Investors will generally rotate out of perceived risky assets when uncertainty arises. That’s why we’ve seen assets such as bitcoin and some tech stocks come under pressure over the last week.

Indeed, the Bitcoin price is now down 19% since this time last week.

And Gilbert believes there could be more short-term pain ahead:

In my opinion, it seems that investors are positioning themselves for further downside in cryptoassets. Investors are now leaning towards safe havens such as gold to overcome this short-term uncertainty.

Investors certainly appear to be on the hunt for havens, like gold.

While the ASX 200 is crumbling today, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 3.7%. (You can find more on today’s ASX gold share moves here.)

“For those investors worried about the potential impacts that the political tension between Russia and Ukraine may cause, it’s important they reflect on their own risk tolerance and investment strategy,” Gilbert continued.

However, he told us he doesn’t believe this will have a long-term impact on the Bitcoin price and wider crypto markets:

If they’re investing in crypto as a long-term investment, this short-term blip doesn’t affect its long-term goal of changing the financial industry and essentially being the future of payments.

Historically, most geopolitical crises have had minimal long-term global market repercussions, and the threat is usually more significant than the event itself.

And Gilbert touted the vital role cryptos can play during heightened global volatility.

“Even if banks are closed and local currencies fall in value during times of instability, citizens will still have access to capital through crypto,” he said.

Though with the Bitcoin price down 25% so far in 2022, they may find less capital then they were hoping for.

The post Did Putin just hammer the Bitcoin price? appeared first on The Motley Fool Australia.

More reading

• Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today
• Down 14% in a week, where to next for the Bitcoin price?
• Have Bitcoin price falls cemented gold as the best safe-haven asset?
• Why Bitcoin, Ethereum and Dogecoin plunged this weekend
• The Bitcoin price just fell 8%. What’s going on?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Vvsei9m

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:

Nanosonics Ltd (ASX: NAN)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this infection prevention company’s shares to $3.40. Goldman Sachs has concerns over the company’s transition away from GE Healthcare to a new direct sales model. It suspects the GE de-stocking cycle could extend into FY 2023, has concerns that not all GE customers will transition in a timely manner, and sees potential for cost lumpiness. The Nanosonics share price is trading at $3.99 today.

Woolworths Group Ltd (ASX: WOW)

A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on the retail giant’s shares to $34.00. This follows the release of half year results that were largely in line with expectations. However, the broker feels that the market may be expecting too much from Woolies in the future and thus doesn’t see value in its shares at the current level. The Woolworths share price is fetching $35.69 on Thursday.

Worley Ltd (ASX: WOR)

Analysts at Credit Suisse have downgraded this engineering company’s shares to an underperform rating with an improved price target of $10.60. According to the note, the broker felt that Worley’s half year results were a bit of a mixed bag. In light of this, it doesn’t believe the company is well-placed to achieve full year expectations and justify its current valuation. The Worley share price is trading at $11.81 today.

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

More reading

• Woolworths (ASX:WOW) share price defies selloff and pushes higher on broker upgrade
• These are some of the only ASX shares in the green today. Here’s why
• Woolworths (ASX:WOW) faces fresh probe as wage scandal balloons to $500m
• 3 ASX All Ordinaries shares hitting 52-week highs today
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss

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

from The Motley Fool Australia https://ift.tt/9t7pSUW

It’s a disastrous day for plenty of ASX shares, with both major indexes tumbling more than 2%. But not all stocks are suffering – the Perseus Mining Limited (ASX: PRU) share price has surged a whopping 13.21% to trade at $1.80.

That’s despite no news having been released by the gold producer, developer, and explorer.

And while it’s surging higher, the S&P/ASX 200 Index (ASX: XJO) is tumbling 3.29% and the All Ordinaries Index (ASX: XAO) is plunging 3.21%.

So, what’s sending the Perseus Mining share price into the clouds today? Let’s take a look.

Why is this ASX gold miner’s share price launching 15%?

The Perseus Mining share price has had an eventful few days.

Just yesterday, the ASX 200 constituent’s share price tumbled 2.4% on the release of its earnings for the first half of financial year 2022.

Within its results, the company announced its revenue had increased 90% – reaching $545.7 million – and its earnings before interest, tax, depreciation, and amortisation (EBITDA) had surged 101% – hitting $252.4 million – compared to the first half of financial year 2021.

On top of that, the company announced it has hit its targeted production rate of 500,000 ounces of gold per annum for the first time in financial year 2022.

While the market wasn’t initially impressed yesterday, today’s gains might be a delayed reaction to its earnings for the half.

Or, it could be due to seemingly strong sentiment surrounding gold producers.

As The Motley Fool Australia’s Bernd Struben reported earlier, other ASX 200 gold miners such as Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST), and Evolution Mining Ltd (ASX: EVN) are booming today.

Their share prices have gained 3.2%, 4.9%, and 3.9% respectively, placing them among the index’s top performers.

Meanwhile, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has surged 3.6%. That could assume it’s not just the big golden players winning on Thursday.

Perhaps unsurprisingly, the price of the golden metal is also in the green today. April gold futures have gained 1.05% to trade at US$1930.60 per ounce, according to data from CNBC.

The post This ASX 200 mining share is combatting the carnage to rise 13% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Expert names 3 commodities set to boom from a Russian invasion
• These are some of the only ASX shares in the green today. Here’s why
• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
• Will 2022 be the year of the cash or the crash for ASX shares?

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

from The Motley Fool Australia https://ift.tt/BeW2H7F