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The fund manager Wilson Asset Management (WAM) has recently identified two top small cap ASX shares that it owns in its portfolio that could be ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 22.2% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 9.5%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Austin Engineering Ltd. (ASX: ANG)

Austin Engineering manufactures and supplies specialised mining products that improve efficiency and assist decarbonisation efforts for clients globally.

At the moment, Austin Engineering is undergoing a ‘three-phase’ optimisation plan under the guidance of its newly appointed CEO and Managing Director, David Singleton.

In December 2021, the small cap ASX share reported a five-year contract renewal with Rio Tinto Limited (ASX: RIO).

WAM pointed out that in January 2022, the company announced updated guidance relating to the FY22 first-half earnings before interest, tax, depreciation and amortisation (EBITDA) to $11.5 million and indicated an increase in EBITDA margins across the group, signalling that the company’s turnaround strategy is delivering.

Wilson Asset Management is positive that the company will see revenue and EBITDA grow across the Asia-Pacific, North America and South America sites with the execution of its three-phase plan.

Generation Development Group Ltd (ASX: GDG)

Generation Development is the owner of Generation Life. It specialises in investment bond products which provides tax-effective investment solutions.

In January, Generation Development released its December quarter update. It showed its highest-ever sales inflow for the quarter and a 44% increase in funds under management, compared to the previous corresponding period.

Generation Life achieved a 52% market share of annual sales inflows in the three months to September 2021, growing from 40% in the prior corresponding period.

WAM remains positive on the small cap ASX share ahead of its upcoming launch of the investment-linked lifetime annuity, subject to regulatory approval, and the next instalment of investment bonds that the fund manager believes will further bolster the company’s customer value proposition.

The post 2 compelling small cap ASX shares rated as buys appeared first on The Motley Fool Australia.

More reading

• Dividends down, Fortescue (ASX:FMG) Future Industries spending up. Here’s the miner’s justification
• This is how long the average investor holds onto their shares
• When to sell your losing ASX shares
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison owns WAM MICRO FPO. 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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It hasn’t been a fun week for Fortescue Metals Group Ltd (ASX: FMG) shareholders. The Fortescue share price has fallen 10% and the FY22 half-year dividend was cut. So why is spending growing at Fortescue Future Industries (FFI)?

For readers that don’t know, FFI is aiming to take a global leadership position in green energy and green technology, leading the effort to decarbonise hard-to-abate sectors.

FFI is investing to create a global portfolio of green energy projects to create 15 million tonnes per year of renewable green hydrogen by 2030.

Fortescue has committed to setting aside 10% of its net profit after tax (NPAT) to put towards Fortescue Future Industries each year.

Dividend cut, yet FFI spending is up?

Earlier this week, Fortescue released its result for the six months to 31 December 2021.

Whilst it was one of the strongest halves in the company’s history, it did show a decline year on year.

There was a 16% decline of average revenue per dry metric tonne of iron ore. Revenue fell 13%. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 28% to US$4.76 billion and net profit after tax declined 32% to US$2.78 billion. Operating cash flow fell 52% to US$2.1 billion.

The dividend was cut 41% to US$0.86 per share. The dividend payout ratio was reduced from 80% to 70%.

But the spending on Fortescue Future Industries is ramping up. FFI’s FY22 anticipated expenditure is US$400 million to US$600 million, including US$100 million to US$200 million of capital expenditure and US$300 million to US$400 million of operating expenditure.

As at 31 December, the unutilised funding commitment (of 10% of net profit) was US$651 million, after the first half operating and capital expenditure of US$242 million.

Fortescue’s justification

The Australian Financial Review recently ran an article discussing how some Fortescue investors are not convinced by the green focus shift of the business. Why redirect 10% of net profit each year to FFI when that money could be coming to shareholders as profits?

An argument is that Fortescue chair Dr Forrest could have funded FFI himself privately by increasing Fortescue’s dividend payout ratio.

But Fortescue’s answer is that it’s a useful diversification play away from being dependent on Chinese demand for iron, though the company is also looking for other commodities like copper in some of its tenements.

The AFR quoted Elizabeth Gaines, the current CEO, who said that FFI adds a lot of potential financial gains to Fortescue:

Our view is that the market is recognising that there is genuine value that’s being created by FFI and the ambitions that we have.

We’re seeing interest, certainly from our offshore investors, in the activities of FFI, the strategy that we will deliver on by 2030, and the efforts to decarbonise Fortescue.

A lot of analysts are putting in the capital for decarbonising iron ore operations. They’re doing that for us and our competitors. They’re putting in the costs, but they’re not actually modelling the benefits.

The benefits will be lower energy costs, better ESG outcomes and lower emissions. We won’t have to rely on expensive offsets. There are genuine benefits, and I think there is still a disconnect between the cost versus the value that’s created.

Fortescue share price snapshot

Whilst Fortescue shares have dipped this week, the share price has still gone up by around 40% over the last four months.

The post Dividends down, Fortescue (ASX:FMG) Future Industries spending up. Here’s the miner’s justification appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Broker warns that Fortescue (ASX:FMG) share price could fall 30%
• Is BHP (ASX:BHP) the best ASX dividend share?
• Why BHP, Fortescue, Netwealth, and Santos shares are falling
• Why has the Fortescue (ASX:FMG) dividend tumbled 40%?

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 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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“Buy and hold” is the stock strategy most favoured at The Motley Fool — to allow quality companies to grow over the long term regardless of short-term market movements.

But it seems long-term investing is starting to fall out of favour.

Whether it’s because of a change in investor mindset or the advancement of technology, it seems we’re becoming more impatient with our shares.

According to Visual Capitalist, the average holding period of shares on the NYSE was just 5.5 months as of June 2020.

In the 1950s, the average holding time of a stock was eight years.

Why are we selling our shares so fast?

Cynics and market veterans would immediately blame the rise of meme stocks on this quest for a quick buck.

The internet and social media allow fervour for a particular business to whip up particularly quickly, regardless of its fundamentals.

A crowd of buyers pushes the share price up, then a small minority sell out for fast profits.

“Long-term investing has much less to offer in terms of excitement,” said Visual Capitalist writer Marcus Lu. 

“The recent r/wallstreetbets saga is an example of how the stock market can become sensational and fad-driven.”

But it’s not just very modern phenomena causing investors to become impatient.

Visual Capitalist pointed out a number of structural technology changes have been happening over many decades, enabling faster buying and selling.

“For example, in 1966, the NYSE switched to a fully automated trading system,” said Lu. 

“This greatly increased the number of trades that could be processed each day and lowered the cost of transactions.”

Indeed, in 1982 there was a daily average trading volume of 100 million, but by 2020 that had increased tenfold.

Automated exchanges also enable high-frequency trading (HFT). This is when computer algorithms buy and sell shares at rapid pace.

“HFT represents 50% of trading volume in US equity markets, making it a significant contributor to the decline in holding periods.”

Information is free and readily available

Democratisation of information is also a contributor to more active stock trading.

It was only in the 1990s when one had to pay a fee to receive hard copies of financial statements, days or weeks after the results were announced.

Now data on publicly listed companies is readily available free online. And investors can immediately act on the information through internet brokers.

Visual Capitalist also indicated that the lifespans of companies themselves have shortened.

“In 1970, companies that were included in the S&P 500 Index (SP: .INX) had an average tenure of 35 years,” said Lu.

“By 2018, average tenure was down to 20 years, and by 2030, it’s expected to fall below 15 years.”

The shorter life expectancy leads to two outcomes.

One is that it’s a greater incentive for investors to chase short-term returns, as they don’t know when it will all come to an end.

The other result is that there is a greater turnover of members that make up indices, contributing to shorter holding periods.

The post This is how long the average investor holds onto their shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• 2 ASX dividend shares with BIG yields
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• 2 ASX dividend shares that could provide steady passive income

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 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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In the internet age, there is no shortage of information out there about which ASX shares to buy.

However, there is a dearth of advice on when to sell.

Fairmont Equities managing director Michael Gable argues that this is absurd.

“I would go as far as to say that the split in terms of importance is not 50-50,” he told SwitzerDaily. 

“I would say the most important skill is knowing when to sell.”

An investor can pick the most brilliant winners to buy but that all comes to nothing if they sell out of it too early or if they have another stock that’s plunged to zero.

“I have heard plenty of stories where clients picked Afterpay or CSL Limited (ASX: CSL) very early on but took a quick profit instead of achieving life-changing profits,” said Gable.

“Yet these same people often have a couple of stocks in the portfolio that have shed most of their value.”

The issue with holding onto losers, hoping they would come back to break-even, is that it will ensure your portfolio bleeds money.

“If we are happy to take profits at 5% or 10% but hold onto a ‘good business’ if it falls 20% to 40%, then you will never make progress,” said Gable.

“I see this strategy too often, and it is a losing strategy.”

And don’t forget, the bigger the losses, the harder it is to recover the deficit. 

Selling an ASX share that’s lost you 10% means you only need to buy a replacement investment that nabs 11% to make that money back. But not selling until a stock has lost 50% means the next investment needs to double!

It’s human nature to hold onto losers — but it makes no rational sense, according to Gable.

“My experience with investors is that the more a stock loses, the more reluctant they are to sell it. I hear things like ‘keep it in the bottom drawer’, or ‘it’s too late now’, and ‘I’m happy to hold it long term’ to justify what has been a bad investment,” he said. 

“And we all make bad investments, by the way. It is part of the territory.”

Share prices don’t correlate perfectly to company’s earnings

The trouble is, stock prices don’t move just according to company performance.

Emotions, or what finance professionals euphemistically call “sentiment”, have an impact. So do factors outside of the business’ control, like interest rates, government handouts and quantitative easing.

Gable said once an investor realises the market is not efficient but unpredictable, you stop having “conviction” about a stock but shift to a risk management mindset.  

“You can spend your whole life trying to understand the market to only come to the conclusion that you still know nothing,” he said.

“When you realise this, you start to think in terms of probabilities, not absolutes.”

To demonstrate how bad even the professional analysts are at judging the fortunes of an ASX share, Gable took Appen Ltd (ASX: APX) as an example.

In August 2020, after its half-yearly results, Appen shares fell 20% in one day. Analysts were climbing over themselves to tell investors this was a golden buying opportunity.

A year later, the stock fell a further 70%. Analyst target prices had also fallen by then, but they were still above the price at the time, indicating they still thought it was a buy.

“If the experts on the business get it wrong in such a spectacular fashion, then what chance does the average person have?” said Gable.

“We all get some wrong. It is inevitable. But we have to accept this and stop the bleeding at some point so it doesn’t hurt the rest of our portfolio. This is why risk management is important.”

So how and when do we sell a losing stock?

Without a firm selling strategy, retail investors won’t act fast enough to stem the bleeding. 

“By the time something has changed and the average person on the street becomes aware of it, the stock price has already been destroyed,” said Gable.

“The average investor can benefit from having a strategy in selling stocks that goes beyond waiting for an analyst to tell them that the ‘fundamentals’ have changed.”

Gable suggested a couple of selling strategies that retail investors can easily follow. 

The first is to see how the share price moves in reaction to good news. 

According to Gable, if the share price can’t rally upwards after positive news about the business, it is “a classic sell signal”. 

“You may have been too shell-shocked to sell Appen when it dropped 20% in one day,” he said.

“But if all the analysts release their reports in the next few days saying how wonderful the business is and are encouraging their clients to buy it, but the share price cannot recover, then that is a massive ‘tell’ on what is really going to happen.”

The moral of the story is that there is a major problem if the share price doesn’t do what it “should” be doing, especially when the rest of the market is fine.

“If the stock cannot rally on good news, then it is only going to go backwards. This is therefore a sell signal.”

The second strategy is to set a trailing stop.

This is to sell a stock when it falls beyond a certain amount from the current price.

“We only want to hold stocks that are in an uptrend. When this uptrend is over, it is time to sell. We are not concerned if the uptrend lasts 10 days or 10 years. We also don’t care if a stock is cheap or expensive,” said Gable.

“If it is going up, it is making you money. When it is going down, you are losing money.”

If a stock is doing well, this exit point will move up with the current price, ensuring you don’t cut a winner. But if the sentiment turns, then the trailing stop can “catch” you.

“Having some rules like this is one way to help those who are time-poor and/or not professional investors manage downside risk.”

The post When to sell your losing ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• 2 exciting ASX growth shares analysts are tipping for big things
• Why Shopify’s latest update could raise red flags for e-commerce shares like Kogan (ASX:KGN)
• Return to the office: Did this decision help boost ASX 200 property shares today?

Motley Fool contributor Tony Yoo owns Appen Ltd and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd and CSL Ltd. The Motley Fool Australia owns and has recommended Appen 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard to grind out a small gain. The benchmark index rose 0.15% to 7,296.2 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

Unfortunately, the Australian share market looks set to end the week in the red after Russian-Ukraine tensions weighed on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.4%, the S&P 500 is down 1.6%, and the Nasdaq is down 2.2%.

QBE full year results

The QBE Australia Group Ltd (ASX: QBE) share price will be one to watch on Friday. This morning the insurance giant is due to release its full year results. According to a note out of Morgans, it expects QBE to deliver a below consensus net profit after tax of US$836 million. This compares to the market consensus of US$870 million.

Oil prices lower

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a poor day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 2.5% to US$91.30 a barrel and the Brent crude oil price is down 2.4% to US$92.52 a barrel. Oil prices dropped after US-Iran sanction talks progressed.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price stormed higher. According to CNBC, the spot gold price is up 1% to US$1,902.50 an ounce. Russia-Ukraine tensions gave the safe haven asset a boost.

Inghams half year results

The Inghams Group Ltd (ASX: ING) share price will be in focus when it hands in its half year results. The poultry company is widely expected to report weak numbers for the half due to the impact of lockdowns on some channels. Morgans commented: “In light of COVID challenges we expect ING to report a weak 1H22 result. With lockdowns in 1Q22 more widespread than the pcp, ING’s higher margin channels were more materially affected, which would have impacted its margins.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 2 ASX dividend shares with BIG yields
• 3 ASX 200 shares hitting 52-week highs today
• ASX 200 energy shares to become ‘cash machines’: broker
• Newcrest (ASX:NCM) share price lifts despite 46% profit drop

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Today, the S&P/ASX 200 Index (ASX: XJO) managed to eke out another green day after swinging violently to the downside following reports of action on the Ukraine-Russia border. At the end of the session, the benchmark index finished 0.16% higher at 7,296.2 points.

While the Aussie index might have ended higher, there were a few sectors hit hard today. The worst impact landed on the doorstep of the consumer discretionary sector, running 3.4% into the red. Wesfarmers Ltd (ASX: WES) was the anchor holding the sector down, revealing the first half being the most disrupted by COVID-19 since the beginning of the pandemic.

Fortunately, the healthcare was the stitching holding the market together on Thursday. Another big performance from CSL Limited (ASX: CSL) bolstered the index.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Challenger Ltd (ASX: CGF) was the biggest gainer today. Shares in the financial services company rallied 6.65% after reporting a 21% increase in normalised net profit before tax to $238 million in its half-year result. Find out more about Challenger here.

The next biggest gaining ASX share today was Judo Capital Holdings Ltd (ASX: JDO). The specialised small and medium business lender received a 5.69% boost in its share price despite there being no announcements released today. Uncover the latest Imugene details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Challenger Ltd (ASX: CGF)	$6.74	6.65%
Judo Capital Holdings Ltd (ASX: JDO)	$1.95	5.69%
CSL Limited (ASX: CSL)	$277.00	5.05%
Orora Ltd (ASX: ORA)	$3.73	4.78%
Northern Star Resources Ltd (ASX: NST)	$9.44	4.43%
Cleanaway Waste Management Ltd (ASX: CWY)	$2.99	4.18%
Woodside Petroleum Ltd (ASX: WPL)	$27.72	4.09%
Tabcorp Holdings Ltd (ASX: TAH)	$5.36	4.08%
EBOS Group Ltd (ASX: EBO)	$38.30	4.08%
Endeavour Group Ltd (ASX: EDV)	$6.59	3.62%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with BIG yields
• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• 2 ASX dividend shares that could provide steady passive income
• Is BHP (ASX:BHP) the best ASX dividend share?

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 CSL Ltd. and Judo Capital Holdings Limited. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Challenger 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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Looking for growth shares to buy? Well, here’s some good news! Listed below are two growth shares that have recently been named as buys.

Here’s what you need to know about them:

Nitro Software Ltd (ASX: NTO)

The first ASX growth share to look at is Nitro Software. It is a global document productivity software as a service company.

Thanks to its Nitro Productivity Suite, Nitro is a global player in the eSign and workflow productivity market. It allows organisations to drive better business outcomes through 100% digital document processes and fast, efficient workflows.

At the last count, Nitro had over 3 million licensed users and 13,000+ business customers across 157 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.

Goldman Sachs is very positive on the company and recently initiated coverage on its shares with a buy rating and $2.95 price target. It believes Nitro’s revenues could explode over the coming years as its market share growth.

It said: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Pro Medicus Limited (ASX: PME)

Another ASX growth share that is highly rated is Pro Medicus. It provides industry-leading software that facilitates the clinical assessment of medical images.

Pro Medicus has been growing at a very strong rate in recent years thanks to the rapidly increasing demand for solutions that can process, transfer and store this type of data efficiently. This is particularly the case given that speed and accuracy is fundamentally linked to both treatment success and commercial incentives.

The company’s strong form has continued in FY 2022. This week it released its half year results and reported a 40.3% increase in revenue to $44.3 million and a 52.7% jump in net profit after tax to $20.7 million.

The team at Bell Potter was pleased with this result and appears confident this strong growth can continue. This morning the broker retained its buy rating and $55.00 price target on the company’s shares. Its analysts are forecasting full year revenue growth of 36% in FY 2022, 19% in FY 2023, and then 33% in FY 2024.

The post 2 exciting ASX growth shares analysts are tipping for big things appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Pro Medicus (ASX:PME) share price surges 8% on historic results
• 2 unstoppable ASX shares growing rapidly
• Are ASX growth shares still worth holding in 2022?
• 2 ASX tech shares we’re backing through the turmoil: analysts

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 Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Nitro Software 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 Kogan.com Ltd (ASX: KGN) share price finished in the red today. Shares in the Australian e-commerce company slipped 1.4% to $6.17.

For three weeks now, the Kogan share price has been roughly bouncing between $6.00 and $6.50. The initial breakdown below $7.00 per share followed the release of its first-half trading update last month.

Disappointingly, active customer growth had slowed to 10% year-on-year (YoY). Likewise, gross sales were up 9% YoY to $698 million. For reference, these metrics are down from 77% and 96%, respectively, in the previous year.

ASX investors might take heed of warnings disclosed by Shopify Inc (NYSE: SHOP) last night. If the situation for the US-based e-commerce company is anything to go by, the Kogan share price might be in for more challenging times.

Let’s take a closer look at what was disclosed in Shopify’s full-year results.

Pandemic-fuelled growth expected to fade in year ahead

Much like ASX-listed Kogan, Shopify posted growth for the latest period across many of its headline figures. These included:

• Revenue up 41% to US$1,380 million in the fourth quarter
• Gross merchandise volume (GMV) growing by 31% to US$54.1 billion
• Monthly recurring revenue increasing 25% to $102 million

However, the forward outlook from the company created some concerns for shareholders. Due to the absence of government stimulus and inflation, Shopify is forecasting some tapering in growth ahead.

The e-commerce giant is now forecasting FY22 revenue growth to be lower than the 57% increase witnessed in FY21. Investors were clearly displeased with the outlook as the Shopify share price tumbled 16% on the news.

On the earnings call, Shopify chief financial officer Amy Shapero said:

For 2022, we expect year-over-year revenue growth to be lowest in the first quarter of 2022 and highest in the fourth quarter of 2022 due to three factors. First, we do not expect the COVID-triggered acceleration of e-commerce in the first half of 2021 from lockdowns and government stimulus to repeat in the first half of 2022.

The other two reasons given by Shapero were more specific to the company’s platform headwinds.

For Kogan shareholders, the uninspiring forecast lands only eight days out from its own earnings call. The local e-commerce company plans to announce its results for the first half of FY22 on Friday, 25 February. At that time, shareholders will find out what ASX-listed Kogan is expecting for its own future.

How has Kogan performed on the ASX?

Unlike Shopify, Kogan has the added strain of managing physical inventory. The challenging environment created by COVID-19 contributed to the company being strapped with excess inventory. This led to higher warehousing costs for the Aussie e-commerce company.

As demand dwindled, while supply was high, investors hammered the sell button on the Kogan share price. In turn, the company’s shares have sunk 62% in the past year. Meanwhile, the Shopify share price is down 47.6% over the same time period.

The post Why Shopify’s latest update could raise red flags for e-commerce shares like Kogan (ASX:KGN) appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• Are these 2 ASX tech shares good buys in February?
• How will ASX shares perform this earnings season? Experts explain what to look for

Motley Fool contributor Mitchell Lawler owns shares in Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd and Shopify. The Motley Fool Australia owns and has recommended Kogan.com 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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ASX 200 property shares climbed today amid NSW lifting a recommendation to work from home. Victoria also flagged a removal of a mask mandate for office workers could be imminent.

Three ASX 200 property shares with strong office portfolios include the Dexus Property Group (ASX: DXS), Mirvac Group (ASX: MGR), and Abacus Property Group (ASX: ABP).

The Dexus share price gained 1.23% today, Mirvac climbed 1.16%, while Abacus leapt 0.86%.

Let’s take a look at what could be impacting these companies today.

Work-from-home recommendation lifted

In a boost to ASX 200 property shares, the NSW Government announced an easing of COVID-19 restrictions today. The recommendation to work from home will be removed from Friday and it will now be up to the employer to decide where people work. Masks will also no longer be required at the office.

Commenting on the changes, NSW Premier Dominic Perrottet said:

As we continue to move forward out of the pandemic we are ensuring that we keep people safe and people in jobs so life can return to normal as quickly and safely as possible.

In Victoria, health authorities are set to reconsider requiring workers at the office to wear masks, The Age reported. Victorian Premier Daniel Andrews said:

We’re confident that we’ll be able to get to a situation next Friday where masks are off in the office and the advice changes — people will then be free and, in fact, we’ll be encouraging them to go back to the office.

Dexus has an office portfolio of $24.9 billion. This includes 52 properties across the major CBDs including Sydney and Melbourne. Despite a difficult operating environment, Dexus reported a 95% occupancy in its office portfolio in its H1 FY22 results on Tuesday.

The Mirvac Group has $8.1 billion of office assets, with 85% of these in Sydney and Melbourne. Mirvac also has a $3.2 billion retail portfolio, which may benefit from more foot traffic in cities. In its H1 FY22 results last week, this ASX 200 property share said its CBD retail assets remain a major drag on performance but “remain will positioned for resumption of immigration, tourism and return to office”.

Finally, Abacus Property Group reported its half-yearly financial results today. The company has a commercial office portfolio worth $1.7 billion, or 36% of its total assets. Its retail portfolio of $485 million represents 11% of its assets.

The company said 96% of office rents were collected during H1 FY22.

ASX 200 property shares recap

The Dexus share price has shed 3.6% year to date, while Mirvac has dived 10.31%. Meanwhile, the Abacus share price has dropped 6.6%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has fallen 2% year to date.

Dexus has a market capitalisation of $11.5 billion. Mirvac has a $10.3 billion market cap and Abacus is worth $2.9 billion.

The post Return to the office: Did this decision help boost ASX 200 property shares today? appeared first on The Motley Fool Australia.

More reading

• Why Dexus, JB Hi-Fi, Seek, and Sims shares are climbing today
• Profit up 82%: Dexus (ASX:DXS) share price steady on active half year results
• Brokers name 3 ASX shares to buy today
• Mirvac (ASX:MGR) share price higher after overcoming Omicron to deliver solid earnings growth
• Here are the latest broker updates from Macquarie. It’s not all pretty for ASX shares.

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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There are a lot of exchange traded funds (ETFs) funds out there for investors to choose from.

Three top ETFs that you may want to look deeper into are listed below. Here’s what you need to know about them:

BetaShares Cloud Computing ETF (ASX: CLDD)

The first ETF to look at is the BetaShares Cloud Computing ETF. This ETF aims to track the performance of the Indxx Global Cloud Computing Index, which includes leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you’ll be buying a slice of companies that look well-placed to benefit from the ongoing shift to the cloud. This includes the likes of Dropbox, Netflix, Shopify, and Zoom.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another exchange traded fund which could be worth looking at is the BetaShares NASDAQ 100 ETF. As you might have guessed from its name, this exchange traded fund gives investors exposure to the 100 largest businesses on Wall Street’s technology-focused NASDAQ index. This includes tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia. It is worth noting that there are also non-tech shares including Starbucks and PepsiCo.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This popular ETF provides investors with exposure to the world’s largest listed companies. This means that rather than just investing in the Australian economy, investors can take part in the long term growth potential of international economies. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 excellent ETFs that you need to know about appeared first on The Motley Fool Australia.

More reading

• What’s going so wrong for ASX ETFs in 2022 so far?
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 3 exciting ETFs for ASX investors next week
• 3 excellent ETFs you need to know about
• 2 excellent ETFs for potential long-term returns

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 BETANASDAQ ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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