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There are a handful of S&P/ASX 200 Index (ASX: XJO) shares that are predicted to pay big dividends over the next couple of years.

Not every business that pays a dividend offers a large yield. It’s influenced by a few different factors including the dividend payout ratio and the valuation of a business.

Companies with relatively low price/earnings ratios (p/e ratios) have the potential to pay particularly high dividend yields.

However, an ASX 200 dividend share isn’t necessarily a buy just because of the yield. The investment case also has to make sense. The experts currently like these two businesses which are expected to make it rain dividends in the next few years:

BHP Group Ltd (ASX: BHP)

BHP is one of the largest resource businesses in the world.

It has a diversified portfolio of different commodities. After the planned divestment of its petroleum business to Woodside Petroleum Limited (ASX: WPL), the commodities that BHP will have exposure to will be iron ore, copper, nickel, potash and coal. However, the resources giant has said it’s focused on future-facing commodities, so time will tell what happens with the coal division.

Iron ore is typically the biggest profit generator for the business. The iron ore price went through a large drop near the end of 2021, but it has since come storming back. CommSec pointed out today that the iron ore price rose another 0.4% to US$146.60 per tonne on Friday, due to “shrinking supply from Brazil and hopes for a boost in infrastructure spending in China.”

BHP is currently rated as a buy by the broker Morgans, with a price target of $48.60. The broker reckons that the ASX 200 dividend share is going to pay a grossed-up yield of 10.2% in FY22 and 8% in FY23.

The company continues to work on extending its list of projects. The potash Jansen project in Canada is expected to have a multi-decade lifespan and be able to earn high margins.

Bank of Queensland Limited (ASX: BOQ)

BOQ is one of the largest challengers to the other big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

There are now three main brands within the BOQ business: BOQ, ME Bank and Virgin Money Australia.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $10. The broker thinks the bank is going pay a grossed-up dividend yield of 8.25% in FY22 and 9% in FY23.

In the first quarter of FY22, the ASX 200 dividend share reported strong application volumes across both the housing and business lending portfolios. Management said that growth was disciplined and high-quality with low levels of lending with a loan-to-value ratio of more than 90%.

BOQ said its net interest margin (NIM) was going to be slightly lower than previously guided because of tougher trading conditions, including yield curve volatility, intense price competition, increased fixed rate lending and higher liquid asset balances.

But, FY22 expenses are expected to be around 1% lower than FY21. The ME Bank integration program is on track, with approximately $23 million of full year synergies delivered in the first quarter of FY22 thanks to things like operating model changes and early supply chain benefits.

The post 2 ASX 200 shares that could make it rain dividends: experts appeared first on The Motley Fool Australia.

More reading

• Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates?
• These are the 10 most shorted ASX shares
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• The Bank of Queensland (ASX:BOQ) share price has underperformed the ASX 200 by 10% over the last 6 months. Here’s why
• Top broker picks 6 ASX 200 shares with earnings surprise potential

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Insurance Australia Group Ltd (ASX: IAG) hasn’t exactly shot the lights out over the past 12 months.

IAG shares are down 11% since this time last year. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 2% over the 12 months.

But things could be looking up for the insurance giant.

Why IAG shares are looking compelling

Deputy portfolio manager at Yarra Capital Management Edward Waller admits insurance isn’t perceived as a sexy industry.

Writing in Live Wire, he labels insurance as “complex, technical and mundane”.

That aside, he adds, “For the first time in close to a decade we believe insurance is now compelling.”

What’s changing for the insurance sector?

Rising inflation and the near certainty of rising interest rates ahead could buoy the insurance sector and IAG shares in the year ahead.

According to Waller, “The sector is one amongst a handful that benefits from higher interest rates, with a 1% increase in rates equating to 10-20% earnings upside.”

And insurance companies can match or top any broader increases in prices. Waller points out that home and car insurance premiums are rising by 5% or more per year with commercial insurance up 10% plus per annum.

Then there’s the recent spate of natural hazards that have seen the insurance companies have to shell out big payments.

According to Waller, “After a surge in natural hazards, it ‘probably can’t get much worse’; the July to October 2021 period saw natural hazard costs at 8-times normal levels.”

This, he said, has 2022 financial year earnings estimates for IAG coming in 20­-30% below FY2019 earnings. But, “[u]nlike other sectors,” Waller said, “we expect there will be no post-COVID earnings slump”.

Why else are IAG shares appealing?

Atop currently low expectations and sentiment towards the insurance sector, Waller said the insurance companies’ balance sheets look strong. “The sector raised billions in business interruption reserves, much of which of which we expect is surplus to requirements and will be returned to investors,” he said.

IAG shares are also “attractively valued and trade in line with long run historic multiples”. He said that’s an “exception in the current market where 75% of Industrials are trading above long run average multiples”.

Waller added (as quoted by Live Wire):

IAG, meanwhile, has been de-rated after experiencing 8-times normal losses in the first 4 months of FY22 – which we view as a genuine one off – and its $1.15bn in largely unnecessary business interruption provisions speaks to capital flexibility.

The post Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• Top broker picks 6 ASX 200 shares with earnings surprise potential
• 2 ASX shares to guide you through a torrid 2022
• This strategy for investing in ASX shares has an 82% success rate
• 5 things to watch on the ASX 200 on Monday

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

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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• BHP Group Ltd (ASX: BHP) has become the most shorted ASX share after its short interest jumped to 17.1%. However, it is worth noting that there is a 7-day lag with the data. As traders were shorting BHP’s shares in order to profit from the unwinding of its dual listing, this short interest is likely to reduce sharply now the unification is complete.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 15.1%. Short sellers don’t appear to believe the travel market recovery will be as smooth sailing as the market is pricing in.
• Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat at 11.1%. This ecommerce company’s shares have come under significant pressure due to inventory issues, slowing sales, and higher costs.
• Zip Co Ltd (ASX: Z1P) has seen its short interest fall week on week to 10%. This buy now pay later provider’s shares have fallen heavily over the last 12 months amid increasing competition and costs.
• Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is flat week on week. A series of poor trial results, significant cash burn, and the loss of a major deal with Novartis continue to weigh on sentiment.
• Webjet Limited (ASX: WEB) has short interest of 9.1%, which is down week on week. This online travel agent’s shares are being targeted due to concerns over ongoing COVID disruptions.
• Polynovo Ltd (ASX: PNV) has seen its short interest fall to 8.4%. This medical device company’s inconsistent performance and the high multiples its shares trade on have been attracting short sellers.
• Regis Resources Limited (ASX: RRL) has entered the top ten with short interest of 7.8%. Operational issues at Duketon and delayed progress at McPhillamys have been weighing on sentiment.
• Betmakers Technology Group Ltd (ASX: BET) is back in the top ten with 7.3% of its shares held short. This betting technology company’s shares trade on particularly high multiples at a time when rates are rising, which could explain its elevated short interest.
• Redbubble Ltd (ASX: RBL) has short interest of 7.3%, which is down week on week again. Short sellers may believe this ecommerce company’s shares are close to bottoming after a falling 73% over the last 12 months.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• BNPL ASX shares in for a ‘tough time’: expert
• Some BNPL shares finished a horror week on a high. Why?
• Is now the time to buy shares of ASX 200 iron ore giants? Expert weighs in
• Here’s why the Webjet (ASX:WEB) share price is up 10% in a week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betmakers Technology Group Ltd, Kogan.com ltd, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Many people went into 2022 thinking the stock market was headed for a full-fledged crash. And so far, that hasn’t happened.

But it has been a volatile number of weeks for stocks, with the market dipping into correction territory. And at this point, it’s hard to predict when things will settle down.

While some of the recent volatility we’ve seen can be attributed to earnings-related disappointment and unemployment news (in a somewhat surprising turn of events, stocks tumbled in the wake of positive job growth), the reality is that stocks have been due for a correction for quite some time. And also, corrections are actually pretty common, and many seasoned investors know not to get rattled by them.

If you’re a newer investor, though, or a naturally skittish one, then the events of the past few weeks may have you shaken to your core. And you may be worried about future volatility as well. But while it’s difficult to predict when stock values will decline, it’s easy to take one key step to protect yourself in the face of market corrections.

Set yourself up to ride out those waves

The one thing it’s important to tell yourself during a stock market correction is that you won’t lose money unless you actually sell off assets at a price that’s lower than what you paid for them. To, to put it a different way, if you just leave your stocks alone during volatile periods, you may not lose so much as a dime.

But to put yourself in a position where you’re able to that, you’ll need to make sure you have plenty of cash at the ready. That way, if unplanned expenses come your way, or if you lose your job, you won’t have to rush to cash out investments to come up with the money you need.

That’s why, as a general rule, it’s a good idea to sock away three to six months’ worth of bills in a savings account. While you won’t earn interest much on that money (especially not these days), you’ll secure your principal so it’s there when you need it. And while you could technically keep that cash in your brokerage account uninvested, you’re better off stashing it in savings so you’re not tempted to buy stocks with it when market conditions turn favorable.

And to be clear, a stock market correction is actually a great time to add investments to your portfolio — but you shouldn’t use your emergency cash to do so. Rather, you should always maintain that cushion because it can not only help you avoid debt, but also avoid capital losses.

Will stocks settle down soon?

It’s hard to say. We’re still in the midst of a pandemic, and that alone could lead to prolonged volatility. And so the best way to alleviate your personal stress load in the near term is to keep your emergency fund well-stocked. That way, if the market continues to swing wildly, you’ll be able to sleep at night knowing you’re covered and won’t have to tap your portfolio at the worst possible time. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The most important thing you need to get through a stock market correction appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• James Hardie (ASX:JHX) share price up as company cements trading gains
• Rocketing returns trump souring outlook: Argo Investments (ASX:ARG) share price lifts on results
• Why Bitcoin, Ethereum, Polkadot, and Solana jumped this weekend

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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Key points

• The new year has seen a major sell-off for ASX tech shares
• But one expert thinks the ASX has withstood the worst of the sell-off
• She says the tech sector’s struggles might have placed some quality stocks in the bargain bin

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2022 heralded a major sell-off in ASX tech shares with some S&P/ASX 200 Index (ASX: XJO) technology giants seeing more than 30% slashed from their share price in just over a month.

However, some experts are optimistic about the sector, noting its plummet has placed some quality ASX tech shares in the bargain bin.

Let’s take a look at which embattled stocks these industry professionals are most excited about.

Which ASX tech shares have experts feeling optimistic?

The S&P/ASX 200 Info Tech Index (ASX: XIJ) has slumped 21% year to date. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has plunged 17%.

The biggest fallers include ASX 200 giant Megaport Ltd (ASX: MP1). Its share price has tumbled 31% since the start of 2022.

The tech sector’s plunge was likely driven by rising inflation and anticipation of interest rate increases. It was also helped along by a similar performance overseas – the tech-heavy Nasdaq Index has slumped 10.9% year to date.

However, the drop has also created “plenty of bargains” among ASX tech shares, according to Tribeca Investment Partners portfolio manager Jun Bei Liu.

She told The Australian that Xero Limited (ASX: XRO) was her pick of the bunch, with its 22% year to date tumble making it a “pretty good buying opportunity”.

Additionally, Liu reportedly said WiseTech Global Ltd (ASX: WTC) is also on her radar after the sell-off.

However, Forager Funds chief investment officer Steve Johnson told the publication he believes WiseTech is still overvalued. Yet, he reportedly agrees with the assessment of Megaport’s stock, despite its notable drop.

In the small-cap space, Johnson is optimistic about Bigtincan Holdings Ltd (ASX: BTH). Shares in the sales enablement platform have slipped 16% so far in 2022.

Whether ASX tech shares will continue to fall is, as always, anyone’s guess.

But Liu reportedly believes the worst is now over.

The post ‘Plenty of bargains’ following ASX tech shares sell-off: expert appeared first on The Motley Fool Australia.

More reading

• Top broker picks 6 ASX 200 shares with earnings surprise potential
• 2 ASX shares to guide you through a torrid 2022
• This strategy for investing in ASX shares has an 82% success rate
• 5 things to watch on the ASX 200 on Monday
• 2 ASX 200 shares that could be top buys for growth

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. owns and has recommended BIGTINCAN FPO, MEGAPORT FPO, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended BIGTINCAN FPO and MEGAPORT 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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The James Hardie Industries plc (ASX: JHX) share price is in positive territory on Monday morning. This comes after the company released its third-quarter results for FY22 before the market open.

The building products company’s shares were 6.15% higher at $50.57 in early trading but have since retreated to $49.03, up 3% at the time of writing

Let’s take a closer look to see how James Hardie performed for the three months ending 31 December 2021.

Growth across key metrics

The James Hardie share price is moving forward following the company’s robust results for the third quarter. Here are some of the key highlights:

• Global net sales of US$900 million, up 22% on the prior corresponding period (Q3 FY21 US$738.6 million)
• Adjusted earnings before interest and tax (EBIT) of US$204.1 million, up 22% (Q3 FY21 US$167.9 million)
• Adjusted net income of US$154.1 million, up 25% (Q3 FY21 US$123.3 million)

What happened in Q3 FY22 for James Hardie?

Investors are buying up the James Hardie share price as the company announced it continued to “deliver growth above market and strong returns”.

James Hardie achieved double-digit growth across the value product mix in all three regions.

In today’s report, the company advised that its North American Fiber Cement business partnered closely with customers to focus on creating demand by marketing directly to the homeowner. Also, the additional capacity provided by the company’s on-time ramp up of its Prattville facility helped generate success. Net sales surged by 25%.

In the Europe Building Products segment, the team’s execution on high value product mix strategy resulted in a strong price/mix. Although, momentum in margin expansion during the quarter was significantly impacted by hyperinflation on key energy prices. Net sales rose 14% driven by a lift in fibre cement and fibre gypsum net sales of 22% and 13%, respectively.

And lastly, the Asia Pacific Fiber Cement division experienced strong sales numbers through its high-value products strategy, up 20%.

What did management say?

James Hardie interim CEO Harold Wiens welcomed the result, saying:

I am pleased to report the James Hardie team has continued to execute well on our stated global strategy. This is reflected in strong price/mix growth in all three regions, including North America price/mix growth of +12%, Europe price/mix growth of +13% and Asia Pacific price/mix growth of +11%.

The team’s success in delivering high value products, which underpins price/mix, is the result of (1) enabling our customers to make more money by selling more James Hardie products and, (2) marketing directly to the homeowners to create demand of our high value products through our customers.

What’s the outlook for James Hardie for the remainder of FY22?

Looking ahead, James Hardie advised it has upgraded its FY22 guidance based on the robust performance across the regions.

As such, management lifted the FY22 adjusted net income guidance range to US$620 million and US$630 million. The previous guidance range stood from US$605 million and US$625 million.

Furthermore, management also announced a FY23 adjusted net income guidance range of US$740 million and US$820 million. However, this is based on the assumption there are no unforeseen impacts on the business from COVID-19.

James Hardie share price snapshot

The James Hardie share price has gained 28.71% over the past 12 months. However, year to date, the company shares have fallen 8.55%.

Based on today’s price, James Hardie has a market capitalisation of around $21.52 billion.

The post James Hardie (ASX:JHX) share price up as company cements trading gains appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• Why the CSR (ASX:CSR) share price is on this broker’s top 2022 buy list
• Why ARB, Inghams, James Hardie, and SDI shares are sinking
• James Hardie (ASX:JHX) share price slips amid Jack Truong battle heating up
• James Hardie (ASX:JHX) management shakeup continues. Here’s what you should know

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Argo Investments Limited (ASX: ARG) share price is edging higher in early trade as the benchmark index retreats.

Argo Investments closed on Friday trading at $9.90 per share and is currently trading for $9.94 per share, up 0.4%.

Below we take a look at the highlights of the listed investment company’s (LIC) half-year results for the six months ending 31 December.

Argo Investments share price gains on profit leap

• Interim profit increased 91.5% on H1 2020 to $129 million
• Earnings per share (EPS) of 8 cents, up 91.4% from 9.3 cents in the prior corresponding half
• Cash as at 31 December of $84 million, down from $190 million in H1 2020
• Interim dividend per share (fully franked) of 16 cents, up 14.3% from H1 2020

What else happened during the half?

Atop the results highlighted above, the LIC reported net tangible assets (NTA) per share increased by 18.9% in H1 2021 to $9.52. NTA in the first half of 2020 came in at $8.01.

Using the NTA return after all costs and tax as a measuring stick, Argo’s investment performance during the half year saw it return 7.3%. That compares to a 3.8% return from the S&P/ASX 200 Accumulation Index during that same time.

The Argo Investments share price did well too, gaining 15.7% during the half. Additionally, Argo reported that its shares gained 25.5% for calendar year 2021, which works out to a total shareholder return of 27%, including franking credits.

In H1 2021 the company purchased $301 million of investments and received $191 million from portfolio sales and takeovers. The total number of shares in Argo Investments’ portfolio was unchanged.

Some major purchases during the half included:

• EML Payments (ASX: EML)
• Aurizon Holdings (ASX: AZJ)
• Lendlease Group (ASX: LLC)
• CSL Limited (ASX: CSL)
• Macquarie Group (ASX: MQG)
• RAM Essential Services Property Fund (ASX: REP)

Major sales included:

• Washington H. Soul Pattinson (ASX: SOL)
• Boral (ASX: BLD)
• Crown Resorts (ASX: CWN)
• AGL Energy (ASX: AGL)

What did the company say?

In analysing the big leap in profits, Argo stated:

The rebound in first half profit was driven by increased investment income, with most companies in Argo’s portfolio raising or returning to paying dividends as the economy recovered from the initial impacts of the COVID-19 pandemic. In particular, a number of our larger holdings increased dividends by more than 100 per cent, including Macquarie Group, BHP Group, Rio Tinto and National Australia Bank.

What’s next?

While the half year just past was strong, Argo Investments sounded some cautionary notes about the months ahead.

Management pointed to surging Omicron cases hitting the labour market and supply chains amid worsening economic conditions.

In the short term, the company expects challenging conditions as investors come to grips with the reality that inflation is on the rise and interest rate rises are coming. However, “We believe this environment favours Argo’s long-term investment approach which concentrates on identifying high quality companies with solid fundamentals,” management said.

Noting the company’s strong balance sheet and lack of debt, management stated, “We are well positioned to capitalise on opportunities generated by any market volatility in the short term.”

Argo Investments share price snapshot

Alongside the wider market, the Argo Investments share price has retraced in 2022.

Year to date Argo shares are down 2.36%. That compares to a loss of 5.35% on the S&P/ASX 200 Index (ASX: XJO).

The post Rocketing returns trump souring outlook: Argo Investments (ASX:ARG) share price lifts on results appeared first on The Motley Fool Australia.

More reading

• James Hardie (ASX:JHX) share price up as company cements trading gains
• Why Bitcoin, Ethereum, Polkadot, and Solana jumped this weekend
• Watch out! These 4 ASX shares have been tipped to disappoint during earnings season
• Playside Studios (ASX:PLY) share price soars 21% amid NFT gold mine
• The Bank of Queensland (ASX:BOQ) share price has underperformed the ASX 200 by 10% over the last 6 months. Here’s why

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd., EML Payments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended EML Payments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Aurizon Holdings Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

The cryptocurrency market continued its volatility this week, but for the time being it has been working for investors. The value of many cryptocurrencies jumped double-digits this week as investors bought riskier assets across the market. 

Bitcoin (CRYPTO: BTC) made a big move this week, climbing 9.7%, and is up 2.7% over the last 24 hours. Ethereum (CRYPTO: ETH) was up as much as 3.7% in the last 24 hours as of 3:00 p.m. ET and is up 16.4% over the past week. Polkadot (CRYPTO: DOT) made an even bigger move, jumping as much as 10.6% in the last day and currently trading 5.9% higher than yesterday, while Solana (CRYPTO: SOL) rose as much as 7.2% in the last 24 hours and is currently up 2.6%. 

So what 

The rise in growth stocks and the market overall has certainly helped cryptocurrency values this week, but there’s something more meaningful happening in Washington D.C. 

A bipartisan group of representatives introduced the Virtual Currency Tax Fairness Act in Congress, which would exempt cryptocurrency transactions under $200 from taxes. This would simplify the tax code for small transactions, which are a growing part of the cryptocurrency ecosystem. 

Ethereum, Polkadot, and Solana are particularly interested in the tax code for cryptocurrency transactions because they’re where most of the market’s non-fungible tokens (NFTs), decentralized finance, and payment innovations are taking place. If buying coffee with cryptocurrencies, like Solana, were a taxable event it could be a burden on everyone in the U.S. 

Interestingly enough, a filing this week showed that Senator Ted Cruz even bought Bitcoin recently. Members of Congress are increasingly getting bullish on cryptocurrencies as usage grows and that could help push positive policy forward. 

We also got relatively strong jobs data this week, which likely means people will have more money to put into cryptocurrencies. Growing utility in the crypto ecosystem and an increasing number of users should push valuations higher long-term. 

Now what 

The battle over tax and regulatory policy has been ongoing for years but given the multi-trillion-dollar valuation of the cryptocurrency market lawmakers are taking more attention. What they’ll have to balance is putting reasonable rules in place without ending some of the innovation that’s taking place in the cryptocurrency market. Blockchains like Solana could upend the payments market with fast, low-cost transactions, which is the kind of innovation lawmakers will want to happen in the U.S. 

Long-term, I’m bullish on the value cryptocurrencies will add to the market but there’s a lot to shake out in the meantime. And the policy battle is just beginning. I think that means we will see more volatility and it’s unclear whether that means values are going up and down short-term. This is an exciting market to watch but a risky one to invest in, no doubt. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, Polkadot, and Solana jumped this weekend appeared first on The Motley Fool Australia.

More reading

• Battle of the crypto assets: Bitcoin versus Bitcoin Cash
• Is Bitcoin a good way to diversify an ASX share portfolio?
• Cryptocurrency crash fails to put a dampener on cash-raising fiesta
• Is Bitcoin using lots of energy actually a good thing?
• Bitcoin price slides again. Here’s what crypto investors are watching

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Earlier today we looked at some ASX shares that Goldman Sachs believes could surprise to the upside during this month’s earnings season.

But as readers know all too well from previous seasons, there are almost always a few companies that put out results that fall short of expectations. This is part and parcel of investing unfortunately.

With this in mind, Goldman has picked out four ASX shares that it believes could negatively surprise this month. They are as follows:

Commonwealth Bank of Australia (ASX: CBA)

This banking giant could surprise to the downside during earnings season according to Goldman. It notes that Australia’s largest bank’s first quarter update reveals that it is “not immune from the profitability pressures that the sector currently faces, particularly evident in mortgages.”

Goldman commented: “We currently forecast a 1H22E NIM decline of 16 bp to 1.88% (from 2.04% in 2H21) vs VA consensus of a 13bp decline to 1.91% but see downside risk to these numbers given a further increase in funding costs (shift higher in swap rates) which came through, starting in Oct-21.”

Mineral Resources Limited (ASX: MIN)

Goldman appears to believe the market is expecting too much from this mining and mining services company and is predicting profits well-below consensus estimates. This is due partly to margin pressures in the mining services business.

It explained: “GSe -5%/-16% below VA consensus 1H FY22 EBITDA/NPAT respectively, likely on higher expected CFR costs across Commodities operations and margin/cost pressure in Mining Services, as a result of labour and resourcing tightness, potential supply chain constraints, and broad cost inflation being experienced by the mining industry (diesel, steel).”

Monadelphous Group Limited (ASX: MND)

The broker feels this mining services company could disappoint due to labour pressures. Goldman notes that Monadelphous’ November annual general meeting update highlighted that “border restrictions in its key Western Australia market are resulting in challenges in accessing skilled labour as well as impacting operational productivity levels.”

Its analysts added: “Given that majority of MND’s E&C orderbook (c.80%) is on fixed price contracts and sizeable proportion (c.50% in normal operating conditions) of its workforce is fly-in and fly-out, we believe that the street is underestimating the impact on MND’s margin in the near term.”

Temple & Webster Group Ltd (ASX: TPW)

Finally, this online furniture retailer has been tipped to disappoint this month. Goldman’s research indicates that Temple & Webster’s growth slowed during the second quarter to a level that will fall short of half year expectations. In addition, it feels the challenging digital marketing environment could weigh on its margins.

Overall, it suspects that this “could result in a lower return on marketing investment vs. market expectations over the near term.”

The post Watch out! These 4 ASX shares have been tipped to disappoint during earnings season appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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The Playside Studios Ltd (ASX: PLY) share price is soaring this morning on its latest update to the market.

In early morning trade, shares in the independent game developer are gaining stream at $1.23, up 21.18%. The company’s share price is now flirting with its 52-week high of $1.32.

This update comes after Playside Studios entered a trading halt on Friday as it prepared to provide an announcement regarding its BEANS web 3.0 non-fungible token (NFT) launch.

Playside Studios share price rides NFT launch success

Shares in the growing Aussie game developer are trading again today, with the lift of its halt. However, it’s news on the launch of the company’s first foray into its web 3.0 and metaverse strategy that’s making waves today.

According to Playside’s announcement, the company’s NFT project ‘BEANS’ by Dumb Ways to Die achieved $8.38 million in net revenue on its day of launch. The sale involved 10,000 unique 2D art assets which will be tied to a three-dimensional avatar in-game.

Playside notes the net revenue proceeds recorded on 4 February included the sale of 7,000 NFTs. Additionally, a portion of the revenue is comprised of a royalty-based fee on secondary market transactions. This success is being reflected in the Playside Studios share price today.

Moreover, the project has since gone on to sell out according to the project’s Twitter page. This means all 10,000 BEANS have been minted.

Get your BEANS on @opensea here: https://t.co/PsvVNyjA3U

BEANS will be revealed in 3 DAYS pic.twitter.com/LzKTI9njeo

— BEANS NFTs by Dumb Ways to Die (@BEANS_nfts) February 5, 2022

https://platform.twitter.com/widgets.js

What did management say?

On the success of Playside’s first NFT project, CEO Gerry Sakkas said:

Developing BEANS and bringing the DWTD universe to life was the beginning of an exciting project that demonstrates PlaySide’s ability to stay at the forefront of developing technology trends. We are extremely pleased with the outcome of our first Web 3.0 project launch which has been very well received and strongly supported by the community.

The company’s CEO went on to describe the immense popularity and positive feedback received for the brand. Notably, a strong uptake in the community on the BEANS Discord group, a digital distribution and communication platform.

Since launching on 6 January 2022, the BEANS discord community has grown to more than 80,000 members.

What’s next?

ASX-listed Playside Studios discussed its plans for the future regarding its BEANS project. At this stage, the company plans to build on top of this initial NFT launch.

Firstly, the next planned step is to create and launch ‘BEAN Pets’. These 3D NFT-based characters are planned to launch in the fourth quarter of FY22.

Secondly, Playside is working on developing a playable world for its BEANS. Code-named “Bean Land”, the metaverse will make it possible for owners of BEANS NFTs to make use of them in the digital world. This digital environment is planned to launch on PC and mobile in the second half of FY23.

Finally, the company will create the 3D avatar counterparts to their 2D NFT tokens. In turn, this will enable the community to play as their 3D BEANS.

The Playside Studios’ share price is up 254% in the last 12 months.

The post Playside Studios (ASX:PLY) share price soars 21% amid NFT gold mine appeared first on The Motley Fool Australia.

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• Why is the PlaySide Studios (ASX:PLY) share price on pause today?
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• Playside Studios (ASX:PLY) share price rockets 18%. What’s going on?
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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. 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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