Tag: Motley Fool

As I type this, two blokes are trying to fix my home air conditioning.

Now, thankfully, it’s a pretty wet summer, and the temperatures at my place have been mild this year.

So there’s that.

But for the past week or so, we’ve been without cooling or heating.

Yes, definitely a first world problem, so no complaints.

And I’m less temperature-sensitive than many, perhaps most.

Still, it’s better when the aircon works, and not just because the family is happier.

I don’t yet know the full extent of the problem, but – and call me a genius if you want – I did notice that part of the problem was that one of the ducts had a gaping hole in it.

I know… Sherlock Holmes eat your heart out.

And yet, when I got the blokes out to fix it, I also asked them to check the system over closely, because I’m not convinced that it was working properly, even when the ducting was okay.

I’d offer to update you when I know more… but I’m going to guess that few of you are actually interested.

Fair enough.

In fact, I don’t much care, either… as long as it works.

But I’m going to suggest that such a hands-off approach probably isn’t great.

Waiting until your car engine seizes before getting a service is an expensive automotive habit.

Waiting for the heart attack before getting a little exercise and improving your diet is, well, suboptimal.

And if you’re one of those people who waits for the ‘low fuel’ light to come on before looking for a servo… Well, I hope that habit doesn’t get you in trouble if you’re out of the city at the time!

An ounce of prevention, as they say, is worth a pound of cure. (Or, in metric terms, a gram and a kilogram, respectively… but imperial just does it better, for some reason.)

Which reminds me – as most things tend to, eventually – of investing.

To be clear, I generally prefer the ‘set and forget’ style of investing.

Too much attention and activity will, for most people, most of the time, cause more problems than it solves.

If you can’t leave well enough alone, how do you expect compounding to help you?

Sure you ‘can’t go broke taking a profit’… but – as a budding vegetable gardener – you wouldn’t pull the tomato plant out after the first fruit ripens, either.

Which isn’t to say that you should just ignore your portfolio, though.

Or the rest of your financial life.

How long since you really reviewed your portfolio, to make sure you were happy with the companies you owned?

No, not whether the share price had gone up recently.

No, not whether other people agreed with you.

But whether your expectations for the company’s future were still intact.

How long has it been since you reviewed how much you were saving and spending?

When did you last check to see if you could #getabetterrate on your mortgage?

Your mobile phone? Internet?

When did you last compare insurance providers for your car? Home? Contents?

They are the financial equivalent of getting the car serviced.

Sure, you can get away with it, for a while.

And sure, your finances might not come to a shuddering, permanent, halt without regular attention.

But isn’t it likely that you’ll be in a better place if you give them a little care and attention?

Maybe you can save a few bucks on your internet. Perhaps you’ll get 0.1% or 0.2% off your mortgage rate. And you might find that a little attention on where you spend your money will help you save a little more, too.

Add that up, then invest it well, and you’ll be surprised what you might be able to amass over a decent amount of time. Invest it well, and that result could be multiples of what you save.

Turns out, in the time I’ve taken to write this, we have a verdict on my aircon.

4 pressure switches and the printed circuit board need replacing. And the drain is blocked.

Hopefully, that’ll give me a better outcome, temperature-wise, and probably save me a few bob in electricity and gas as a result.

How’s your aircon?

But, more importantly, how efficiently is your financial life running?

Why not take 15 minutes to see if you could get things running more smoothly.

After all, the improvements in my aircon will be welcome.

But they won’t get better and better, over time.

Your financial position, however – if you invest the savings – could well get better and better, over time, thanks to the wonders of compounding.

Tomorrow will be better, if I can get the aircon fixed.

But the benefits of fine-tuning my financial life will be felt for years and decades to come.

I dare say the same will be true for you. And isn’t that worth a little effort?

I think so.

Fool on!

The post Are you sure you’re on the right financial track? appeared first on The Motley Fool Australia.

More reading

• How a war in Ukraine could send the Bitcoin price skyrocketing
• BHP (ASX:BHP) share price on watch after earnings beat and record dividend
• Is the APA (ASX:APA) share price an attractive buy for reliability?
• 2 ASX shares loved by expert who averages 30% return per year
• Analysts tip these ASX shares to offer huge fully franked dividend yields

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. 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 possibility of a Russian invasion of Ukraine has triggered anxious shivers into share markets and bond yields.

The presence of more than 100,000 military personnel along the border has sent a signal to the US and its allies that Vladimir Putin is not mucking about. 

Financial markets are worried obviously because war itself would be damaging, but heavy economic sanctions against Russia could also cause major upheaval.

However, one expert reckons the flagship cryptocurrency, Bitcoin (CRYPTO: BTC), will flourish if fighting breaks out in eastern Europe.

Money that can’t be confiscated

According to DeVere Group chief executive Nigel Green, “serious geopolitical risks” are bringing to light the real-life usefulness of cryptocurrencies.

“Research shows that Bitcoin donations are flooding into Ukrainian non-governmental organisations and volunteer groups,” he said. 

“The crowdfunding activities are, say experts, being used to equip the Ukrainian army with military and medical supplies.”

Cryptocurrencies like Bitcoin are hosted on the blockchain, which removes centralised administration and provides anonymity.

So funds sent that way are less likely to be confiscated by unfriendly authorities.

“Meanwhile, Ukraine’s adversary, Russia, is planning to regulate cryptocurrencies, with crypto legislation, including tax standards, expected as soon as next week,” said Green.

“Both these rivals know that Bitcoin and cryptocurrencies can circumnavigate traditional financial institutions that might block transactions — as in crypto there’s no central authority that can block payments.”

An example of the advantages of decentralisation was demonstrated on the other side of the world last week.

Canada, like in Australia, saw a ‘Freedom Convoy’ protest against COVID-19 vaccination requirements.

A crowdfunding page to support the trucker protests was pulled down by the host site GoFundMe, citing lack of accountability in how the funds would be used.

“But, in response, crypto enthusiasts set up a crowdfunding campaign on the platform Tallycoin as an alternative way to raise money for the protestors.”

So why has the Bitcoin price crashed?

Despite these bullish tailwinds, the value of Bitcoin has plunged more than 10% this year, and about 35% since November.

“This was triggered by a wider risk-off sentiment that also impacted many areas of global stock markets,” said Green.

“Stock markets, like the crypto market, never move in a straight line, there are always peaks and troughs. Yet history teaches us that the long-term trajectories are predictable for both: they go up.”

Green has previously espoused Bitcoin as an excellent store of value due to its programmatically enforced limited circulation of 21 million.

He added that the tense Ukraine situation has now highlighted to mainstream investors another of crypto’s best attributes.

“Geopolitical issues this week have tested its other core values of being a viable decentralised, tamper-proof, ‘unconfiscatable’ monetary system,” said Green.

“These real life use cases will further increase Bitcoin’s mass adoption and lead to higher prices this year.”

The post How a war in Ukraine could send the Bitcoin price skyrocketing appeared first on The Motley Fool Australia.

More reading

• Here’s why these deep-pocketed investors are eyeing green Bitcoin
• Is this ‘impediment’ holding back the Bitcoin price?
• Could Bitcoin (CRYPTO:BTC) be eyeing off a $150,000 future?
• Bitcoin price rally fizzles. Here’s what the experts are watching for next
• The best cryptocurrency exchanges for Australians

Motley Fool contributor Tony Yoo owns Bitcoin. 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.

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The BHP Group Ltd (ASX: BHP) share price will be one to watch this morning.

This follows the release of the mining giant’s eagerly anticipated half year results.

BHP share price on watch after beating expectations

• Revenue from continuing operations up 27% to US$30,527 million
• Total revenue up 32% to US$33,784 million
• Underlying EBITDA up 46% to US$21,381 million
• Underlying EBITDA from continuing operations up 33% to US$18,463 million
• Underlying profit from continuing operations up 57% to US$9,715 million
• Free cash flow from continuing operations of US$8.5 billion
• Record fully franked interim dividend of US$1.50 per share

What happened during the first half?

BHP was on form during the first half and delivered a 27% increase in revenue US$30,527 million and a 57% jump in underlying profit to US$9,715 million. Management advised that this reflects higher sales prices across its major commodities, near record production at WAIO and higher concentrate sales at Spence, and favourable exchange rate movements.

This was partially offset by the impacts from planned maintenance across a number of assets, the expected copper grade decline at Escondida, significant wet weather at Queensland Coal, and inflationary pressures. The latter includes higher fuel, energy and consumable prices.

BHP’s performance was impacted by COVID-19 once again. In fact, management estimates that it took a US$223 million pre-tax hit from COVID. This comprises US$69 million associated with lower volumes and US$154 million from direct costs.

This couldn’t stop BHP from generating significant free cash flow during the first half, which has allowed the board to declare a record fully franked US$1.50 per share interim dividend. At current exchange rates and the latest BHP share price, this dividend alone equates to a 4.4% yield. This also represents total dividends of US$7.6 billion and a 78% payout ratio.

How does this compare to expectations?

Management commentary

BHP’s Chief Executive Officer, Mike Henry, was pleased with the half.

He commented: “BHP had a strong first half. We achieved our third consecutive fatality free calendar year. We mitigated the impacts of COVID-19 and significant adverse weather events to turn in a solid operational performance, particularly from our flagship Western Australian Iron Ore business.”

“We have announced an interim dividend of US$1.50 per share, bringing total shareholder returns to more than US$22 billion over the past 18 months. Our record interim dividend was supported by our reliable operating performance and continued strong markets for a number of our products.”

“We have made strong progress on the execution of our strategy. We unified the BHP corporate structure with strong support from shareholders, we announced and advanced the proposed merger of our petroleum business with Woodside, we progressed our divestments of certain coal assets and we announced the final investment decision for our Jansen Stage 1 potash project. We have also secured further growth options in future facing commodities. BHP is well positioned for the future. We are building on our strong foundations and capital discipline to reshape our business and grow long-term value for shareholders and other stakeholders,” he concluded.

Outlook

BHP has warned about industry wide inflationary pressures that are steepening operating cost curves.

Management explained: “Many commodity-linked uncontrollable costs have moved noticeably higher, in some cases to record highs. Labour costs have increased materially due to localised shortages of both general and skilled workers. This partly reflects regulatory constraints on movement across international and state borders.”

“We expect cost headwinds due to supply bottlenecks to remain challenging in the 2022 calendar year, with only tentative signs of easing by the end of the period. As the actual recognition of costs tends to lag developments in prompt pricing, these pressures are expected to continue to impact on our cost base in the following calendar year.”

Nevertheless, full year unit cost guidance for WAIO and Escondida remains unchanged. Whereas unit cost guidance for Queensland Coal has been increased, reflecting lower expected volumes for the full year as previously announced.

The post BHP (ASX:BHP) share price on watch after earnings beating and record dividend appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022
• At today’s share price, is BHP (ASX:BHP) going to be a dividend juggernaut in 2022?
• Could opening WA borders expose ASX 200 mining shares to production risks?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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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Could the APA Group (ASX: APA) share price offer investors defensive earnings and reliability?

With a market capitalisation of $11.7 billion, APA is one of the larger businesses in the S&P/ASX 200 Index (ASX: XJO).

What does APA do?

It is the operator of 15,000km of natural gas pipelines that connect sources of supply and markets across mainland Australia. APA operates and maintains networks connecting 1.4 million Australian homes and businesses. It supplies half of Australia’s natural gas usage.

But it owns more than just gas pipelines. It owns, or has interests in, gas storage facilities, gas-fired power stations and renewable energy generation. Those renewable energy sources are wind and solar farms.

Does it generate reliable cash flow?

If a business’ cash flow is consistent then it may be able to offer lower volatility with the APA share price and also reliable distributions.

Not only can APA claim to have stable cash flow, but it can also point to growing cash flow. In a recent presentation, APA said that it has “stable business operations, solid cashflow with positive leverage to increasing inflation.”

APA’s policy when it comes to the distribution is to have a payout ratio of between 60% to 70% of free cash flow, whilst fully funding maintenance capital expenditure. This also supports the appropriate level of funding for organic growth capital expenditure.

But APA isn’t just waiting on its existing assets to deliver growth. It’s regularly investing in new projects, which can help grow the cash flow and distribution.

Growth projects

APA says that it has a growing organic pipeline of $1.3 billion over the next three years, which could be a boost for the APA share price.

For example, on the gas side of things, it’s investing up to $270 million on the East Coast grid expansion, increasing the winter peak capacity by up to 25% through a two-staged expansion. Another investment is the Northern Goldfields Interconnect, costing up to $460 million, which is a new 580km pipeline that increases capacity to the Goldfields region.

But it’s also investing in the energy transition. For example, it’s working on the Mica Creek Solar Farm in Mount Isa. The investment is around $150 million. Stage two of the project comprises 44MW of additional solar power generation, for a cost of around $70 million.

APA also recently acquired an interest in the Basslink debt. Basslink is the business that operates the 370km high voltage electricity connector between Victoria and Tasmania. It’s the only one connecting Tasmania and mainland Australia. It provides two-way access to 500MW of electricity. It’s “critical” for the export of Tasmania renewable energy to the Australian mainland.

The business is looking across Australia and the US for opportunities to invest in electricity generation and transmission opportunities.

Another thing that could impact the APA share price in the coming years is if APA is able to convert some of its pipelines to carrying hydrogen. The Parmelia hydrogen project is exploring the viability of the pipeline to transport hydrogen.

APA distribution

APA is planning to pay a distribution of $0.53 per unit in FY22, translating into a yield of 5.3% at the current APA share price.

The post Is the APA (ASX:APA) share price an attractive buy for reliability? appeared first on The Motley Fool Australia.

More reading

• 2 compelling ASX 200 shares that keep growing their dividends
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• The APA (ASX:APA) dividend has grown every year for 18 years. What’s next?
• Dividend investors should put these 2 top ASX shares on the watchlist
• What kinds of dividends will APA Group (ASX:APA) pay out in 2022?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended APA 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Capital H Management founder and chief executive Harley Grosser reveals a pair of small-cap ASX shares his funds are loving at the moment.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Harley Grosser: Capital H is a small- and micro-cap specialist. We have two funds at Capital H, both of which are small-cap focused. 

Inception Fund is our flagship fund. The focus is on investing in undervalued quality growing companies with good quality management teams. And we take high-conviction positions in that fund and generated comfortably north of 30% per annum after fees now for the almost 4 years it’s been running.

The active fund is our second fund. We started that in March of last year and the strategy there is to focus on finding companies that we can add value to i.e. being active in. So there’s various ways we can do that, but generally, it’s in a friendly activist style. That’s our fund that we allocate any investment positions that we think we can be active in the company to add value for shareholders.

Biggest convictions

MF: What are your two biggest holdings?

HG: I thought I’d give you one of each — largest holding in each fund.

So Inception Fund’s largest holding is Environmental Group Ltd (ASX: EGL). It’s actually been listed on the ASX since the 1970s, so it’s been around for a long time. 

We just think that its time has come. A bit of a cliche, but we think that’s true.

So EGL’s portfolio businesses are involved in, basically, protection of the environment — things like improving air quality, reducing carbon emissions and removing waste. So of those core businesses, we think they’ll do around $4 million of EBIT this year, which we think is positive. 

It is a growing cash flow positive business, but what’s most exciting for EGL is their PFAS removal technology. 

We actually got out to visit their plant in Melbourne earlier this year. They released their first order of trial results late last year in December, which the market viewed as very positive. And on the site visit, I think we were most impressed just by the simplicity of the technology, which we think improves their odds of successful commercialisation.

Then most importantly, the management team is A grade. They’ve done it before at Tox Free — a lot of the institutional fund managers know of [chief executive] Jason [Dixon] and his team, and the stock looks good value to us. So we’d expect it to do well this year.

MF: It was listed in the 1970s?

HG: It actually listed in 1977. It was founded, I think, in the 1920s.

It’s funny how often that happens in micro caps though. Companies list a long time ago, then they reinvent themselves. They go nowhere then it’s sort of their time. 

For a company that focuses on improving the quality of the environment in a number of different ways, it’s pretty easy to see that now is kind of their time.

MF: And the biggest holding in the active fund?

HG: So the biggest position in the active fund is a company called ARC Funds Ltd (ASX: ARC). For this one, I do need to disclose I’m the managing director. We sit on the board.

So ARC Funds are a listed multi-affiliate boutique funds management group. So think like Pinnacle Investment Management Group Ltd (ASX: PNI), but a smaller version. 

We take equity stakes in emerging funds management talent, and then we provide them with the infrastructure, the services and the distribution that they need to succeed to build these successful growing profitable funds management businesses. 

We actually released on the ASX this morning an update that Magnum Funds, which our fixed income manager had secured $35 million of commitments for, it’s soon to be launched [as an] active ETF. 

And our other manager, Merewether, launched their fund in November last year. [It] has raised about $5 million of funds and has performed very strongly over the last few months, which was a pretty rough few months for equity investors. 

We’ve got an exciting pipeline there of new managers and products — and we think it should be, if we do our job right, it should be a good year.

The post 2 ASX shares loved by expert who averages 30% return per year appeared first on The Motley Fool Australia.

More reading

• Analysts tip these ASX shares to offer huge fully franked dividend yields
• 5 things to watch on the ASX 200 on Tuesday
• 2 quality ASX tech shares for investors after the selloff
• Why are ASX 200 bank shares getting so much love today?
• What to expect when Cochlear (ASX:COH) releases its half year results

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. owns and has recommended PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. 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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Although the outlook for interest rates is becoming increasingly positive, it is still likely to be some time until rates are at a sufficient level for income investors.

In light of this, ASX dividend shares could be the best option for them for a little while to come. But which dividend shares could be top options?

Two to consider are listed below. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this furniture and homewares retailer. Its shares are trading far closer to their 52-week low than high right now after a disappointing first half trading update.

However, it is worth noting that this was driven by COVID lockdowns, which led to Adairs losing almost a third of its trading days during the half. On a like for like basis and adjusted for closures, its sales were up 2.7% year on year.

The team at Morgans don’t believe now is the time to throw in the towel. The broker believes the sell down of Adairs shares was overdone and has created a buying opportunity. So much so, it has put an add rating and $3.70 price target on its shares.

As for dividends, it is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $3.11, this will mean yields of 6.1% and 8.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is this mining giant. It has been tipped to generate strong free cash flow and reward shareholders handsomely in the coming years.

This is being underpinned by its exposure to a number of in-demand commodities such as aluminium and the recent acquisition of a stake in the Sierra Gorda copper mine in Chile.

Analysts at Goldman Sachs expect this to allow South32 to pay fully franked dividends that equate to yields of greater than 10% over the next five years.

The broker also sees decent upside for the South32 share price. It has a conviction buy rating and $5.00 price target on the miner’s shares. This compares to the current South32 share price of $4.53.

The post Analysts tip these ASX shares to offer huge fully franked dividend yields appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX dividend shares to buy next week
• Here are the 3 most heavily traded ASX 200 shares this Friday
• Why Motley Fool analyst Drew Flowers thinks now is a great time to furnish your portfolio with Adairs (ASX:ADH) shares
• These 3 ASX energy shares just hit 52-week highs
• Why is the South32 (ASX:S32) share price surging to all-time highs today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) overcame a tough start to record a decent gain. The benchmark index rose 0.4% to 7,243.9 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 futures pointing lower

The Australian share market is expected to open the day sharply lower this morning following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 105 points or 1.5% lower. In late trade on Wall Street, the Dow Jones is down 1.2%, the S&P 500 is down 1.1%, and the Nasdaq has fallen 0.8%.

BHP half year results

The BHP Group Ltd (ASX: BHP) share price will be in focus on Tuesday when it releases its half year results. According to a note out of Morgans, its analysts are forecasting underlying EBITDA of US$17,371 million and a US$1.26 cents per share interim dividend. Elsewhere, according to CommSec, the market consensus is for a net profit after tax of US$9.8 billion.

Oil prices rise again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 2.45% to US$95.38 a barrel and the Brent crude oil price has risen 2% to US$96.37 a barrel. Ukraine-Russia tensions are supporting the oil price.

Gold price higher

Those tensions are also supporting the gold price, which bodes well for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, the spot gold price is up 1.7% to US$1,873.40 an ounce. This means the precious metal is trading near three-month highs.

SEEK half year results

The SEEK Limited (ASX: SEK) share price will also be on watch today when it releases its half year results. According to a note out of Morgans, its analysts are expecting the job listings giant to report revenue of $534 million and EBITDA of $260 million. This is 10% and 13%, respectively, ahead of the market consensus estimate.

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

More reading

• Why are ASX 200 bank shares getting so much love today?
• Here are the top 10 ASX shares today
• These are some of the top performing ASX 200 value shares of the past year
• The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News
• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022

Motley Fool contributor James Mickleboro owns SEEK 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 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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If you’re looking to take advantage of recent weakness in the tech sector, then it could be worth taking a look at the two shares listed below.

Here’s what you need to know about these tech shares:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the popular Altium Designer and cloud-based Altium 365 platforms.

PCBs are found inside almost all electronic devices. So, with the Internet of Things and artificial intelligence markets underpinning an explosion in electronic devices globally (an estimated 127 devices hook up to the internet for the first time every second), demand for Altium’s best in class platform looks set to increase strongly in the future.

Management appears confident this will be the case. In fact, it is aiming to more than double its revenue to US$500 million by 2025.

The team at Bell Potter is positive on Altium’s outlook. This led to the broker upgrading the company’s shares to a buy rating with a $40.00 price target last week.

Its analysts “forecast continued strong revenue growth in the high teen percentages in FY23 and FY24 and >20% EBITDA growth in each of these periods on the back of anticipated further margin expansion.”

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another tech option to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.

The fund manager highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. And when it says popular, it means popular. VanEck estimates that there are 2.7 billion active gamers in the world. This is more than Netflix subscriptions and active Apple devices.

Among the ETF’s major holdings are graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Roblox.

The post 2 quality ASX tech shares for investors after the selloff appeared first on The Motley Fool Australia.

More reading

• What are brokers expecting for ASX tech shares this earnings season?
• 3 buy-rated ASX 200 shares with plenty of upside potential
• Why this broker just upgraded Altium (ASX:ALU) shares to a buy rating
• 2 ASX 200 shares that could be top buys for growth
• 2 fantastic ASX growth shares to buy now

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 Altium. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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ASX 200 bank shares forged ahead today. The National Australia Bank Ltd (ASX: NAB) share price hiked 1.98% while Macquarie Group Ltd (ASX: MQG) climbed 0.49%.

Meanwhile, Bank of Queensland Ltd (ASX: BOQ) shares gained 1.95% and Australia and New Zealand Banking Group Ltd (ASX: ANZ) closed up 1.37%.

Let’s take a look at why ASX 200 bank shares had such a good Valentines Day?

ASX 200 bank shares rise

While all ASX 200 bank shares finished ahead today, there were two standout performers.

The Westpac Banking Corp (ASX: WBC) share price jumped 4.83% and Bendigo and Adelaide Bank Ltd (ASX: BEN) leapt 4.43%.

Westpac’s share price stormed ahead on news it had bought back 167.5 million of its shares, worth $3.5 billion. A share buyback can improve shareholder returns because the company’s profits are spread across fewer shares.

Meanwhile, the Bendigo and Adelaide Bank share price lifted after it reported a nearly 32% jump in statutory net profit in its half-year results.

For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) also finished higher today, up 1.54% at market close.

What’s behind the bank share surge today?

Helping ASX 200 bank shares could be news of the major banks raising their home loan rates. ANZ, NAB, and Westpac all upped their fixed home loan rates in the past week, personal finance website savings.com.au reported. Meanwhile, Bank of Queensland has reportedly bumped up its variable rates.

Continuing speculation about measures to curtail rising inflation also could be helping ASX 200 bank shares. As my Foolish colleague Bernd reported last week, central banks, including the US Federal Reserve, are looking to raise rates to keep inflation in check. Analysts also expect the Reserve Bank of Australia could lift its official cash rate.

Rising interest rates tend to help the ASX 200 banks due to larger lending margins. However, on the flip side, higher rates can also depress new lending in mortgage markets.

Investors may also be turning to value shares such as banks, energy, and the utilities sector amid the tech sell-off. As Motley Fool Australia reported last week, ASX value shares have been outperforming growth shares, including technology shares, this year amid potential interest rate hikes.

The post Why are ASX 200 bank shares getting so much love today? appeared first on The Motley Fool Australia.

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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 Bendigo and Adelaide Bank Limited. 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.

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The Cochlear Limited (ASX: COH) share price will be one to watch next week.

On 22 February, the hearing solutions company is scheduled to release its half year results.

Ahead of the release, let’s take a look to see what the market is expecting from Cochlear.

What should you expect from Cochlear?

The market is expecting a mildly positive half year result from Cochlear next week. According to a note out of Citi, the market consensus estimate is for a net profit of $127.6 million.

This is up marginally on the prior corresponding period when the company reported a net profit of $125.3 million.

However, Citi is expecting Cochlear to outperform the market’s expectations. It is forecasting a first half net profit of $140.9 million, representing growth of 12.5% over the prior corresponding period.

If Cochlear were to achieve Citi’s estimate, it would mean it is on course to deliver on its guidance in FY 2022. At its annual general meeting, management reaffirmed its FY 2022 guidance for underlying net profit growth of between 12% and 20%.

Management advised that this is expected to be underpinned by market growth, with a continuing recovery in surgery rates across many countries more affected by COVID.

What are others saying?

While it hasn’t provided a first half estimate, the team at Goldman Sachs expects a full year result in August ahead of guidance.

It commented: “We forecast $288m NPAT (17.7% margin) in FY22, which remains above COH guidance of $265-285m.”

Though, the broker has warned that while COVID headwinds are easing, “it is possible there is some persistent hesitancy amongst a proportion of its target market in DMs (aged 70+).” Therefore, investors may want to listen out for any commentary on that front.

All in all, the result could be one of the more interesting ones this season.

The post What to expect when Cochlear (ASX:COH) releases its half year results appeared first on The Motley Fool Australia.

More reading

• 2 medical tech ASX shares for turbulent times
• Can the Cochlear (ASX:COH) share price live up to analyst expectations?
• Do this now to be filthy rich later: expert
• 3 buy-rated ASX shares that just hit 52-week lows
• Why is the Cochlear (ASX:COH) share price tumbling 5% on Thursday?

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 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.

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