Tag: Motley Fool

Key points

• Some of the leading ASX blue chip shares are rated as buys and could be opportunities
• Telstra has revealed its T25 strategy that involves lower costs, more profit, extended 5G coverage and the intention for higher dividends
• Aristocrat Leisure is a pokies machine and mobile game provider. It’s recovering from COVID impacts and also making an acquisition play for UK company Playtech

---

Analysts are always on the lookout for opportunities. Some of the leading blue chip ASX shares are currently rated as a buy by brokers.

What is a blue chip? It’s usually a business that is described as a leader in its industry, or it’s dependable during most phases of an economic cycle.

Blue chips may be able to provide reliable dividends and/or fairly consistent growth over the long-term.

With that in mind, these two ASX blue chips could be options:

Telstra Corporation Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business. It’s rated as a buy by several brokers including Ord Minnett.

There are several things that the broker likes about Telstra. The company recently released its T25 strategy.

The telco is expecting higher profits in the years to FY25. Growing profit could be one of the main factors that drive the Telstra share price higher. It’s aiming for compound annual growth of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teens growth for underlying earnings per share (EPS).

Part of that rising profit will come from a reduction of net fixed costs by another $500 million.

The broker also thinks there is further potential for the blue chip ASX share to turn some of its assets into money for shareholders.

When it comes to the dividend, Telstra said it’s looking to keep paying an annual dividend of $0.16 per share, whilst also seeking to grow the dividend over time as earnings rise and the company franking account balance increases.

On Ord Minnett’s FY23 estimates, the Telstra share price is valued at 21x FY23’s estimated earnings with a grossed-up dividend yield of 5.8%.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure describes itself as a leading global gaming content and technology company. It offers several products and services including electronic gaming machines (that you’d find in a casino), casino management systems and free-to-play mobile games.

It’s currently rated as a buy by several brokers including UBS. This broker has a price target on the business of $53.60. That suggests a potential upside of more than 30% at the current level. One of the things noted is that Aristocrat Leisure is gaining market share.

FY21 saw a substantial increase in profitability for the business. Whilst revenue rose 14.4% to $4.74 billion, the EBITDA jumped 43% to $1.54 billion and net profit after tax (NPAT) increased 114.4% to $765.6 million.

It’s also looking to buy the UK business Playtech, which is a leading global online gambling software and content supplier for an enterprise value of A$5 billion. It’s expected to add to profit in the first year of ownership and will accelerate the blue chip ASX share’s growth strategy over the medium-term and deliver “sustainable shareholder value”.

Using UBS estimates for FY23, the Aristocrat Leisure share price is valued at 21x estimated earnings.

The post 2 strong blue chip ASX shares rated as buys appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Why the Aristocrat Leisure (ASX:ALL) share price is one to watch today
• Why this leading broker just downgraded Telstra (ASX:TLS) shares
• 5 things to watch on the ASX 200 on Monday
• 2 buy-rated ASX 200 dividend shares with great yields

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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3AvlMm2

If you’re wanting to add some diversification to your portfolio, then you might want to look at exchange traded funds (ETFs). This is because ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs which are popular with investors. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF is one for investors to look closely at in February. This ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.

The fund includes a number of cybersecurity giants and emerging players. This includes the likes of Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

Given the increasing threat of cyber attacks on governments and businesses, demand for cybersecurity has been growing quickly and is expected to continue doing so in the future. This could make it a growth sector for at least the next decade. And with the cybersecurity sector being heavily under-represented on the ASX, this ETF could be a great way to gain exposure to the theme.

iShares S&P 500 ETF (ASX: IVV)

Another ETF to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the illustrious S&P 500 Index, before fees and expenses. This famous index has been designed to measure the performance of the largest US equities.

Blackrock, the manager of the fund, notes that this ETF gives investors easy access to the top 500 U.S. stocks through a single investment. This can be used to diversify internationally and seek long-term growth opportunities for a portfolio.

Among the ETF’s largest holdings are giants such as Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

The post 2 excellent ETFs for ASX investors in February appeared first on The Motley Fool Australia.

More reading

• 2 strong ETFs for potential growth
• 2 popular ETFs for ASX investors in 2022
• 2 excellent ETFs for ASX investors to buy this month
• Here are 2 ASX tech ETFs to buy after recent weakness
• Here are the 5 best performing ASX ETFs of 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iShares Trust – iShares Core S&P 500 ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3rTjw42

While the Reserve Bank has been tipped to lift rates sooner than previously expected, it is still expected to be some time before rates reach 2% and above again.

In light of this, dividend shares could be one of the best ways to earn a passive income for a while yet.

But which dividend shares should you buy? Two that are rated as buys and tipped to pay big dividends are listed below:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP.  This mining giant could be a top option for income investors thanks to the diversity of its world class operations and the strong free cash flow they generate. The latter bodes well for dividend payments in the coming years.

Morgans is positive on the company. And while the broker acknowledges that its shares have rebounded strongly in recent months, it still sees enough value in them to maintain its positive view.

The broker commented: “BHP’s investment appeal has ebbed lower as its share price has rebounded off its October lows (when we upgraded our rating to Add), but despite this shrinking discount our confidence in the continuing upcycle for commodities has maintained our positive view on BHP.”

Morgans has an add rating and $48.60 price target on its shares. As for dividends, it is forecasting fully franked dividends of $3.34 per share in FY 2022 and $2.62 in FY 2023. Based on the current BHP share price of $45.03, this will mean yields of 7.4% and 5.8%, respectively.

Harvey Norman Holdings Limited (ASX: HVN)

This retail giant could be another ASX dividend share to buy. This is due to its strong market position domestically and growing international operations.

Goldman Sachs is a fan of the retailer. It currently has a buy rating and $6.00 price target on its shares.

When the broker upgraded its shares late last year, it said: “We upgrade HVN to Buy based on our renewed confidence in its short- to medium-term outlook on an ex-COVID basis. Additionally, HVN also trades favorably on an ex-property valuation basis and offers strong dividend yields and low balance sheet risks.”

Goldman is forecasting fully franked dividends per share of 36 cents per share for the next three financial years. Based on the current Harvey Norman share price of $4.75, this will mean yields of 7.6% for investors.

The post 2 ASX dividend shares with fully franked 7% yields appeared first on The Motley Fool Australia.

More reading

• Why Westpac (ASX:WBC) and these other ASX shares are trading at 52-week lows
• Two top ASX 200 mining shares to watch in 2022: Saxo Markets
• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant?

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 owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3AwBZY6

Happy Australia Day!

Now, we’re not blind to the reality that the date of Australia Day is contentious.

We know that January 26 is a painful day for many Indigenous Australians. And while a day of celebration for many, we know it’s a day of mourning for others.

And we’re glad that there’s a debate about the right date for Australia Day.

But while that debate happens, January 26 is the nominated day, so we’re taking the opportunity to recognise and celebrate all that’s great about Australia.

Not because we don’t have problems, including the ongoing disagreement about our national day.

But precisely because, despite those problems, we’re bloody lucky.

And because if we can celebrate the positive, while simultaneously addressing the problems, we’ll become even better as a nation.

So below, lightly edited, is something I wrote a couple of years ago, that I hope captures a little of what I think we can be proud of… and aspire to.

No, not in a jingoistic way, and not arrogantly — you don’t have to believe everything is perfect to believe that Australia is a great place to live, work and, yes, invest.

Here are some of the wonderful things about the country we’ve been lucky enough to be born in, or have decided to make our home:

We have democratic rule of law.

We have a functioning system of redistributive capitalism that rewards effort, but also looks after the vulnerable and the unlucky.

We have a largely stable, functioning political system. Yes, we’ve had more Prime Ministers in recent years than the men’s cricket team has had batsmen, but those changes haven’t required coups or led to violent recrimination.

We have the ability to speak and be heard, largely free of censorship or legal restriction. Here at The Motley Fool, we’ve been vocally critical of both major parties, knowing that, while they might not like it, it’s physically and commercially safe for us to do so.

We have a sometimes harsh, sometimes generous, but always beautiful, landscape and climate. Yes, we have droughts, flooding rains and more, but that also brings out the best of us — our emergency services, volunteers, fundraisers and community spirit.

We have well-functioning institutions. And when those institutions don’t get it completely right, we have the opportunity for Royal Commissions, in public, to fix the problems.

We have a stock market that is largely free of corruption, insider trading and functions well, allowing free access to information and cheap access to trading.

---

Speaking of our stock market, our Director of Research, Kevin Gandiya, recorded an Australia Day message which, I think, will help with some of the volatility we’ve been experiencing lately!

---

We have a globally very high level of economic prosperity for most people. Even given the relative inequality between the richest and poorest, most of us have enough, and the proportion of us living in poverty is much lower than at almost any time in our history.

We have one of the most successful multicultural societies in the world.

We have the right to vote. To protest. To imagine a better way. To stand for election.

We have a largely stable geology that means we avoid the worst of the tsunamis, earthquakes, cyclones and hurricanes. And functioning emergency services and recovery infrastructure when the occasional natural disaster hits.

We have, in Aboriginal culture, one of the oldest continuous cultures in the world, and one from which many of us could and should learn.

We are generous. Honest. Funny. We’ll call a spade a bloody shovel. And we’ll have a drink with anyone who does the same.

We want the best for our kids. Our friends. Our country. We know that things aren’t perfect, but that doesn’t mean they’re not great.

Here’s my hope for our country: that we continue to challenge ourselves to be better, but in a spirit of optimism, rather than despair. That we see ourselves as people who are ‘for’ things, not ‘against’ things.

I hope we don’t fall victim to cynicism and negativity. I hope, instead, we celebrate the best, and we aim to be better.

A pipe dream? I don’t think so. Some of the most successful, and happiest, Australians I know are those people.

After all, how many entrepreneurs would succeed if they were pessimists? How many scientists would bother with research? How many politicians would stand for election?

How many of us would invest, if we didn’t believe the future is bright? It would defy logic to be negative about the future, but then put our nest eggs into investments that — by their very nature — require growth to give us a return?

Yes, America is home to some of the greatest businesses of our time, but we do a pretty bloody good job of pulling our weight – and maybe punching above it.

Think about our world-beating mining companies.

Medical marvels like CSL, Cochlear, ResMed and Nanosonics.

The stability of our banks is the envy of the world. And investment bank, Macquarie, is a standout on the global stage.

And when you raise a glass later today, it might well be one of the global suite of products that’s part of Treasury Wine Estates’ (I own shares) local and international portfolio. If you pick up a paper, watch a movie or flick on the business news, there’s a decent chance you’re engaging with the News Corp empire, born from a single newspaper in Adelaide.

And, even despite some recent share price wobbles, we have some wonderful tech innovators. Think WiseTech, Altium, Atlassian and Xero (technically a Kiwi company, but it’s listed here, so we’ll claim it alongside Phar Lap and pavlova).

Australian ingenuity and drive continues.

We don’t need to get into a debate about whether Australia is the best country in the world.

Sure, we’d like to think we might be, but so would plenty of other nations.

Instead, how about we focus on being the best we can be. And let’s celebrate success.

And recommit ourselves to becoming an even better nation. Prouder. Freer. More tolerant. More generous. More supportive. More egalitarian. Let’s bring back more of the Fair Go. Let’s see mateship in action.

(Want a tangible way to help other Australians? As long as it’s COVID safe, take a road trip. Spend a few bucks on the coast or in the Outback, both still reeling from the COVID crunch, and bushfires before, and floods more recently. Our family will be doing both, again, this year.)

From all of us here at The Motley Fool, Happy Australia Day.

Here’s to us — to where we’ve come from, who we are, and where we’re going. Let’s embrace our strengths, address our problems, and become the best we can be.

The post Happy Australia Day! appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares brokers have named as buys
• Another 2.5% fall. Here’s what we’re thinking
• 2 ASX 200 shares with major upside potential
• What happened to ASX tech shares today?
• 3 exciting small cap ASX shares to watch

Motley Fool contributor Scott Phillips owns Treasury Wine Estates Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Atlassian, CSL Ltd., Cochlear Ltd., Nanosonics Limited, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Nanosonics Limited, WiseTech Global, and Xero. The Motley Fool Australia has recommended Cochlear Ltd., Macquarie Group Limited, ResMed Inc., and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3rOe6Y7

If you have room in your portfolio for some new additions, then you may want to take a closer look at the ASX shares listed below.

All three have recently been tipped as buys by brokers. Here’s what analysts are saying about them right now:

Altium Limited (ASX: ALU)

Altium is an electronic design software provider. It is best-known for its Altium Designer and Altium 365 platforms. These platforms are regarded as the best in the industry and are used by many of the world’s largest companies such as BAE Systems, Microsoft, and Tesla. Altium appears well-placed for growth over the next decade thanks to the internet of things and artificial intelligence booms. These are driving strong demand for electronic design software.

Jefferies is a big fan of Altium and has a buy rating and $48.83 price target on its shares. This is notably higher than the current Altium share price of $37.07.

REA Group Limited (ASX: REA)

REA Group is the dominant player in real estate listings in the Australian market. It looks well-placed for growth in the coming years thanks to the improving housing market, new revenue streams, acquisitions, price increases, and its international operations.

Goldman Sachs is very bullish on REA Group. Its analysts currently have a buy rating and $193.00 price target on its shares. This compares to the latest REA Group share price of $147.07.

ResMed Inc. (ASX: RMD)

ResMed is a sleep treatment-focused medical device company. Thanks to its industry-leading products, growing software business, and the increasing awareness of sleep disorders, it has been growing at a strong rate for a good number of years. Pleasingly, it still has a significant market opportunity to grow into and also looks well-placed to benefit from the shift to home healthcare.

Morgans is positive on ResMed’s outlook. The broker currently has an add rating and $40.80 price target on the company’s shares. The ResMed share price last traded at $32.66.

The post 3 ASX shares brokers have named as buys appeared first on The Motley Fool Australia.

More reading

• What happened to ASX tech shares today?
• 2 ASX tech shares to buy after the market meltdown
• 2 excellent blue chip ASX 200 shares to buy this month
• Why is the Altium Limited (ASX:ALU) share price sinking 16% this year?
• Top brokers name 3 ASX shares to buy next 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 Altium. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FUAV1q

As I write this, the ASX has just closed.

The All Ordinaries is down another 2.3%.

But, some context.

The All Ords is now at a level last seen in… May, last year.

Yes, going nowhere in 8 months isn’t great… but it’s hardly a disaster, right?

It’s also still up 3% over the last 12 months, plus dividends, making the total return probably around 7 – 7.5%.

Not ideal, but not terrible.

The headlines will focus on the daily movements. The last week. Maybe 2022-to-date.

Those numbers will be accurate. And real.

But they won’t tell the full story.

Which is not to ignore the very real feelings of nervousness and fear that many people have, right now.

We humans are funny. We take the gains in our stride, but panic falls of precisely the same size,

If your $100 invested 12 months ago was worth $107.50 today, and you knew nothing else, you might wish the result was closer to the historical 9 – 11% average, but I doubt you’d give it a second thought.

Isn’t that how we should approach investing, though?

I think so.

And doubly so when you consider we lived through the Delta and Omicron strains of COVID during that time!

No, I don’t expect you to be an unfeeling automaton.

And I can’t make the pain go away.

But I hope the perspective will help you keep your nerve, and stay in the game.

Speaking of which, below is an article written by our Director of Research, Kevin Gandiya, with his thoughts on the recent volatility.

I think you’ll find it useful.

---

Stay In The Game: How To Invest In Today’s Volatile Market

Sometimes it’s easy to be an investor, and other times….. It’s not!

Let’s not mince our words. The past few weeks and months have been brutal for growth-focussed investors.

Whilst the main indices have held up until now, that has been hiding the carnage beneath the surface.

With the ASX All Ordinaries Index down only 6% from it’s all time high, the ASX All Tech Index is down 20% from it’s all-time high (all figures as of 24 January 2022).

Some individual companies are down even more! Xero (ASX:XRO) is down 25%, while Block (Square) (NYSE:SQ) (ASX:SQ2) which acquired Afterpay is down 57%!

It’s been challenging and we all share in your pain. It’s hard seeing stocks that we own taking their knocks in the market. And because we don’t try to predict what zigs and zags that the market may take in the short-run, we don’t know if stocks are done yet with their southern detour.

But as hard as it may be to stay committed to your long-term game plan when times are tough, this is where the rubber meets the road. This is where investing mettle is formed and those who are willing to take advantage of new opportunities can really position themselves to win.

If you are going to be an investor for the rest of your life, if you are going to build wealth in the stock market; then you need to be prepared to go through market environments like the one we are currently in.

We know it’s not easy, but we’re here to help you.

So let’s take a look at what concrete actions you can take right now to stay focused, ride out the volatility, and set up your portfolio for long-term success.

Clear your mind up

Bear markets clear the decks and set the stage for the next bull market. The 2000 dot.com crash, the 2008 global financial crisis and the March 2020 pandemic crash were all scary to go through but they set the stage for a new bull market.

How many times do you hear investors wishing they had bought stocks during those lows? If you aren’t in the right frame of mind, it’s difficult to maintain perspective and be on the lookout for opportunities when everyone else is panicking.

Go for a walk or run, get some exercise, eat well, sleep well then come back focussed on finding new opportunities for the next uptrend.

Make sure that any money you need in the next three years is NOT invested in stocks

This is true not just when markets are volatile or falling, but in bull markets as well. If you’ve got money earmarked for near-term spending needs — whether that’s for living expenses in retirement, a down payment on a house, or anything else — that money should be in a safe, liquid investment. And that means cash or a cash equivalent.

Is cash an exciting and high-yielding investment? Absolutely not. But it’s the best place to ensure that assets you need in the next few years are totally safe.

Cash allows you to sleep well at night knowing that your immediate needs are covered. And when you know that you are not in danger of being unable to meet your near-term financial goals, it should be easier to maintain your long-term outlook with respect to your stocks.

If you’ve got cash sitting on the sidelines, now is the time to get it to work

It’s human nature to second-guess your investing decisions when your stocks are down, but we try to look at market declines as opportunities.

There are likely to be some solid businesses out there now trading at a discount. And history has shown us that it is usually more advantageous to get cash earmarked for investing to work in the market sooner rather than later, regardless of what may happen in the next few weeks or months.

And that’s important to understand because no one can predict with certainty when we’ll see the bottom. While some stocks have already declined a lot, that doesn’t mean it won’t get worse.

Our favoured approach in times like these is to dollar cost average into the market (i.e. consistently buying periodically (could be weekly) to take advantage of the lower prices).

Use this environment as an opportunity to revisit your risk tolerance and portfolio allocation

Market corrections certainly aren’t fun, but they do offer a unique chance to see how well your expected appetite for risk lines up with your actual appetite for risk.

It’s one thing to invest aggressively when stocks are up, but actually experiencing the downside is another matter. If you find that you’re a bit out of line with your true tolerance, you may want to consider making a few adjustments.

Reflect on your personal circumstances, your personal risk tolerance and make sure that you are investing accordingly.

Consider taking a step back if frequent market monitoring is causing you anxiety

While it’s understandable that you want to know how your investments are performing, obsessively tracking the daily gyrations of the market and your portfolio’s value can be enough to drive even the most iron-willed investor to the breaking point.

If you find yourself getting trapped in this cycle, you can always step away. If your portfolio is aligned with your long-term game plan, short-term volatility ultimately won’t have an impact.

We don’t want to make light of the frustration that so many investors are feeling right now. We’re feeling that same frustration.

But we’ve been through times like this before and we’ve emerged stronger, a bit wiser, and certainly more humbled. Fools, we look forward to investing alongside you today and decades from now, no matter what the market throws at us next.

We are on this journey together.

Yours sincerely,

Kevin Gandiya

Director of Research

The post Another 2.5% fall. Here’s what we’re thinking appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares with major upside potential
• What happened to ASX tech shares today?
• 3 exciting small cap ASX shares to watch
• West African Resources (ASX:WAF) share price falls 22% on quarterly earnings and coup concerns
• Mineral Resources (ASX:MIN) share price tumbles 7% on quarterly update

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

from The Motley Fool Australia https://ift.tt/3fUQSKp

Due to the recent market volatility, there are a number of ASX 200 shares trading notably lower than recent highs and at what could prove to be very attractive levels in the future.

Two such ASX 200 shares are listed below. Here’s why they could be in the buy zone:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 share to look at is quick service restaurant operator Collins Foods. It is one of the largest operators of KFC restaurants in Australia and has a growing presence in the European market as well. It also has a smaller but growing number of Taco Bell restaurants across Australia.

Late last year it released its half year result and revealed a 9.5% increase in revenue to $534.2 million and a 31.6% jump in underlying net profit after tax to $28.9 million. The KFC Europe business was a key driver of this strong half.

The good news is that management still sees plenty of room for growth in both the Australian and European markets. It highlighted that it has a significant organic growth pipeline and attractive opportunities to reach scale in KFC Netherlands and Taco Bell Australia, while adding to its core KFC Australia footprint.

Macquarie was pleased with the result and remains positive on its growth outlook. In response to the result, the broker put an outperform rating and $14.80 price target on its shares. This compares to the latest Collins Foods share price of $11.45.

IDP Education Ltd (ASX: IEL)

Another ASX 200 share to look at is IDP Education. It is a provider of international student placement and English language testing services. The company is also co-owner of the high stakes language test, IELTS. It has been operating for almost 50 years and has offices in over 30 countries.

Given how the international student market has been struggling over the last couple of years because of the pandemic, IDP Education’s performance was impact significantly. However, the company has bounced back strongly in recent quarters and also put its strong balance sheet to use by making a key acquisition in the India market. All in all, this appears to have left IDP Education well-placed for growth in 2022 and beyond.

Analysts at UBS are fans of the company. It was pleased with its strong performance during the first quarter and remains optimistic on the future once COVID passes. Its analysts currently have a buy rating and $36.40 price target on its shares. This compares to the latest IDP Education share price of $29.85.

The post 2 ASX 200 shares with major upside potential appeared first on The Motley Fool Australia.

More reading

• Are these 2 beaten-up quality ASX shares now buys?
• Here are 4 ASX shares insiders are putting their money behind
• 2 ASX shares rated as strong buys by brokers
• 3 exciting ASX growth shares with major upside potential in 2022
• Insiders have been buying these ASX shares

Motley Fool contributor James Mickleboro owns Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3IATBoy

Key points

• The S&P/ASX All Technology Index (ASX: XTX) dropped 2.86% today
• Brainchip, Appen, Block, Altium, Megaport, Technology One and NextDC all plummeted
• US Nasdaq technology shares fell in morning trade yesterday before staging a major recovery.

---

ASX technology shares slumped overall today, failing to replicate the recovery of Nasdaq US tech stocks overnight.

The S&P/ASX All Technology Index (ASX: XTX) dived 2.86% to close at 2,522 points.

Let’s take a look at the performance of some key ASX tech shares today.

How did ASX tech shares perform?

ASX tech shares nosedived today. The Appen Ltd (ASX: APX) share price descended 7.37% while Brainchip Holdings Ltd (ASX: BRN) shares plummeted a massive 13.60% despite no news from the company.

Meanwhile, the Block Inc CDI (ASX: SQ2) share price dropped 4.21% today and Altium Limited (ASX: ALU) shares fell 1.78%

Xero Limited (ASX: XRO) slipped 3.49%, Computershare Limited (ASX: CPU) stumbled 2.64%, and NextDC Ltd (ASX: NXT) sunk 2.15%.

Additionally, TechnologyOne Ltd (ASX: TNE) descended 2.34%, Megaport Ltd (ASX: MP1) tumbled 1.99%, and Wisetech Global Ltd (ASX: WTC) plunged 6.59%.

What happened in the US?

ASX tech shares often follow the movement of the tech-heavy Nasdaq Index, as my Foolish colleague Brooke noted yesterday.

But while the US Nasdaq may have staged a tech sell-off in morning trade yesterday, afternoon trade saw investors buying up. The dramatic turnaround came after the US Treasury auctioned two-year notes, VOA News reported.

The Nasdaq-100 Technology Sector (NASDAQ: NDXT) finished 1.65% in the green. However, between market close on 21 January in the United States and 12.30pm yesterday, the index fell 4.71%. It then staged a massive recovery of 6.76% in afternoon trade.

Amazon.com Inc (NASDAQ: AMZN) gained 1.33% after falling 4.46% between market close on 21 January and 12.30pm.

Meanwhile Microsoft Corporation (NASDAQ: MSFT) also climbed 0.11% overall after falling 5.37% in the same time frame. Apple Inc (NASDAQ: AAPL) finished just 0.49% in the red after falling 4.18% up to 12.30pm.

While ASX tech shares stabilised this afternoon, most did not stage the comeback of their US counterparts.

However, Megaport certainly showed some recovery. Despite falling 4.4% on the previous close to a low of $14.43 at 12.19pm, it regained 2.56% of this loss in afternoon trade to finish at $14.80.

The post What happened to ASX tech shares today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares Goldman Sachs rates as buys
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• There’s a new kid on the Block (ASX:SQ2), but how does it make money?
• 2 ASX tech shares to buy after the market meltdown
• These are the 10 most shorted ASX shares

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., MEGAPORT FPO, Microsoft, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon, Apple, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3nRWSbe

Are you looking to add a small cap share or two to your portfolio in the near future? If you are, then you might want to consider one of the ASX shares listed below.

Here’s what you need to know about these exciting small cap shares:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is this healthcare informatics solutions company. Alcidion provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. One of its solutions is Patientrack. It helps clinicians know a patient’s status in real-time. This means that doctors can intervene and prevent patient deterioration faster than ever before. Patientrack uses predictive algorithms to support time-critical care.

Bell Potter currently has a buy rating and 45 cents price target on its shares.

Nitro Software Ltd (ASX: NTO)

Nitro Software is another small cap ASX share to watch. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. Nitro counts businesses of all shapes and sizes as customers. This includes a number of the largest companies in the world.

Bell Potter is also a fan of Nitro. It currently has a buy rating and $1.98 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap ASX share to watch is Volpara. It is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Volpara has been growing its top line at a rapid rate in recent years thanks to market share gains and its expanding average revenue per user (ARPU) metric. Pleasingly, thanks to acquisitions over the last couple of years and its growing product portfolio, the company’s ARPU metric is expected to rise significantly in the coming years. This could be supportive of further strong growth over the 2020s

Morgans is bullish on Volpara. It currently has an add rating and $1.94 price target on its shares.

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• 2 small cap ASX shares with a lot of potential: experts
• 2 buy-rated ASX tech shares with 100% upside in 2022
• 2 exciting small cap ASX shares named as buys
• 2 beaten down ASX tech shares tipped as buys
• 2 exciting small cap shares named as buys

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 Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3nRWLMQ

Key points

• The West African Resources share price has tumbled 22% since it released its quarterly earnings on Monday
• Its stock might have also been impacted by news of a coup in its operating nation
• The company reached its full year guidance during the previous quarter and underwent 2 notable acquisitions

---

The West African Resources Ltd (ASX: WAF) share price has tumbled 22% this week after the company released its activities and cash flow report for the quarter ended 31 December on Monday.

Additionally, the gold miner’s stock has likely been weighed down by news of a coup in Burkina Faso, the West African nation where the company’s operations are based, as reported by SBS.

The company issued an announcement today stating its staff and contractors are safe and work is continuing as normal at its Sanbrado Gold Operations.

As of Tuesday’s close, the West African Resources share price is $1.06. That’s 16.86% lower than it was at the end of Monday’s session and 22% lower than it was at Friday’s close.

Let’s take a look at what the company announced on Monday.

West African Resources share price tumbles after quarter 4 update

• Quarterly gold production increased 7% to 87,324 ounces
• An all-in sustaining cost (AISC) averaged at US$721 per ounce over the period
• Generated $139 million of operating cash flow
• Cash balance at the end of the quarter was $183 million – up from $130 million

During the December quarter, West African Resources produced 87,324 ounces of gold, bringing its annual production to a record 288,719 ounces – exceeding its previous guidance of between 250,000 ounces and 280,000 ounces.

Its AISC also increased by 4.4% to US$721 per ounce. That brought its full-year AISC to US$796 per ounce – at the higher end of its guidance of US$720 to US$800 per ounce.

The company’s combined open-pit and underground mined ounces for the quarter came to 94,659 ounces – 2% less than the prior quarter’s production.

It also saw 86,516 ounces of unhedged gold sales at an average price of US$1,812 per ounce last quarter, bringing its full-year average price to US$1,808 per ounce.

During the quarter, the company repaid US$109.5 million to its Taurus debt facility, thereby extinguishing the facility.

The company also acquired the Kiaka Gold Project and the Toega Gold Project. It paid $53 million for the projects.

What else happened in the December quarter?

During the quarter just been, the company underwent a placement and share purchase plan to raise $136 million before costs.

As part of the capital raise, it offered West African Resource shares for an issue price of $1.25 apiece.

The company also implemented COVID-19 management measures at its operations last quarter. The pandemic remained stable in Burkina Faso during the period.

What did management say?

West African chair and CEO Richard Hyde commented on the company’s results for the fourth quarter of 2021 and looked to the future, saying:

Sanbrado had another outstanding quarter, producing a record 87,320 ounces at an all-in sustaining cost of US$721 per ounce in quarter 4 and reaching full year 2021 production guidance…

With our acquisition of the advanced Kiaka Gold Project [West African Resources] aims to be a +400,000 ounce per year producer by 2025.

With the repayment of Taurus, [West African Resources] has no senior debt and ended the quarter with a positive net cash position of US$137 million.

What’s next?

During the current quarter, West African Resources will progress the Kiaka Project’s feasibility study and environmental and social impact assessment updates, as well as kickstart the mobilisation of site early works.

It plans to publish the Toega Project’s feasibility study in the current quarter, while that of the Kiaka Project isn’t expected to be released until the second quarter of 2022.

The company’s share price closed 3.7% lower on Monday.

Less than 24 hours later, the company issued another announcement today, stating it will continue to monitor the political situation in Burkina Faso and provide updates when appropriate.

However, it seems investors were not convinced, dumping West African Resources shares that were trading as high as $1.22 this morning before news of the coup broke.

West African Resources share price snapshot

The West African Resources share price has had a rough trot lately.

It has fallen 19% over the last month although it has gained almost 9% since this time last year.

The post West African Resources (ASX:WAF) share price falls 22% on quarterly earnings and coup concerns appeared first on The Motley Fool Australia.

More reading

• Mineral Resources (ASX:MIN) share price tumbles 7% on quarterly update
• Here are the top 10 ASX shares today
• Own IAG (ASX:IAG) shares? Here’s what you’re really invested in
• 2 top international ETFs for ASX investors
• 2 ASX growth shares Goldman Sachs rates as buys

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

from The Motley Fool Australia https://ift.tt/33OQGKb