Tag: Motley Fool

Wow, 2022, huh?

This time last year, we were hoping that the turning of the calendar page would herald the end to a tough year, and brighter times ahead.

That wasn’t, unfortunately, to be the case.

This time around, we weren’t so keen.

Not only were many of us reconsidering New Year’s Eve plans, as cases surged around the country, but we weren’t so naive as to assume a new digit at the end of the year would mean the end of our troubles.

Now, as you likely know, I’m an optimist. And – cross your fingers as I tempt fate – I do hope and expect we’ll finish the year in a better state than we started it.

So the fact that we’re about to tick over into a third year of dealing with the pandemic is cause for disappointment, but not the abandonment of hope.

I’m disappointed with facets of the various governments’ handling of the pandemic, to be sure, and I hope they do better in future. But while we should expect accountability for past mistakes, we should always continue to look forward, too.

We’ve been through tougher times before, and come out stronger. We will, again.

At the same time, we’re almost a week through the new year. Time enough for some people to be making real traction on New Year’s resolutions, while others may have already faltered.

To be honest, I’m not really a resolutions kinda guy.

But I do like the fact that for many people, a new year is a mental and emotional opportunity to leave the old behind, and focus on the new.

No, there’s nothing magical about an arbitrary point in a solar calendar. We can ‘start again’ or ‘start from scratch’ at any time. But we know from behavioural psychology that external prompts or social ‘norms’ can give us a running start.

So that’s good. And if that’s you, I want to ask you to consider making some New Year’s resolutions for your finances, to get 2022 (and the rest of your life) off to a cracking start.

And if, like me, you kinda shun the whole idea, perhaps you’ll consider what follows as what it is – just a common sense set of concepts that I reckon, put together, will improve your finances.

So, here’s to 2022.

And to 2023.

And to 2030… and many, many more years into the future, at which point I hope you’ll look back on 2022 as the year in which some decisions made, and habits formed, set you up for a bright financial future.

No, they’re not new. There’s little in investing that truly is. Instead, financial success is far more likely to come from doing the simple things, repeatedly. So, without further ado…

Here are 13 New Year’s Resolutions that I hope will be a touchstone to help you on that journey.

13 Foolish New Year’s Resolutions

To help you become smarter, happier and richer

1. I will live below my means — spending less than I earn.

2. I will save money into a rainy-day fund so I’m ready for what life might bring.

3. I will pay off my credit card debt, and then only spend what I can pay off within the interest free period each month.

4. I will regularly add to my investment account.

5. I will invest money I don’t need for at least 3-5 years to build my nest egg.

6. I will learn more about investing, taking control of my financial future.

7. I will invest in quality businesses, buying a slice of the company, not just a code on a screen.

8. I will buy shares in a company with the intention of holding them for the long term.

9. I will sell when my investment thesis fails, the company is overvalued or I have a better idea.

10. I will avoid anchoring my decisions to the price I paid for my shares.

11. I will remember that the market can be moody and over-react, both on the upside and the downside.

12. I will expect volatility, and I won’t let it spook me into selling. Indeed, volatility can offer me great opportunities!

13. I will let the market offer me prices (be my servant), not dictate my mood or actions (be my master).

(Want a printable version? I’m glad you asked. Here it is!)

Fool on!

The post Resolutions for a better financial future appeared first on The Motley Fool Australia.

More reading

• Why did the Beach Energy (ASX:BPT) share price nosedive 30% in 2021?
• Why analysts slapped buy ratings on these ASX shares
• Here’s why the QBE (ASX:QBE) share price surged 30% in 2021
• Ramsay (ASX:RHC) share price falls 6% amid reports of COVID battle plan
• Here are the 3 most heavily traded ASX 200 shares this Thursday

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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/3eVcwOd

The Beach Energy Ltd (ASX: BPT) share price had a shocker of a year in 2021, suffering more lows than highs.

Shares in the oil and gas company fell from $1.81 to $1.26 during the year, a 30% decrease.

Let’s take a look at what weighed on investors’ minds.

A tough year

Beach Energy’s shares had a rollercoaster year characterised by a few bumps and one devastating fall in late April.

In mid-January, the share price fell 15% on the back of falling oil prices and broker downgrades. Between 13 January and 1 February, the company’s share price dropped 15%.

Investors also reacted to the company’s quarterly report released on 27 January, showing a 35% decline in sales revenue to $344 million. Shares then recovered 12% between 1 February and 9 February as oil prices continued to rise.

But the largest fall for the Beach Energy share price took place on one day in late April. Shares dropped 24% from $1.68 at market close on 29 April to $1.275 on 30 April.

Shares in the energy producer crashed following the release of the company’s third-quarter results. Investors reacted negatively to its production dropping 5% against the previous quarter and 15% lower than the third quarter of FY20.

September, however, brought far more joy to Beach’s shareholders. From 20 September to 30 September, shares exploded an incredible 43%. The company entered into an agreement with energy giant BP relating to its share of liquefied natural gas from the Waitsia gas project stage 2.

A well-received investor update from the company also helped the Beach Energy share price. Beach revealed it was aiming for production of 28 MMboe by FY 2024.

Continuing rising oil prices likely weighed on investors’ minds. Oil producers were struggling to provide enough of the liquid due to supply worries.

However, shares fell again in October and November, dropping nearly 21% in just those two months. Managing director and chief executive officer Matt Kay also resigned on 2 November. In addition, the company’s quarterly report didn’t help. As my Foolish colleague James reported, the results showed Beach’s production was down 4% to 5.7MMboe. Sales revenue also declined to $388 million.

Finally, December saw brighter days for Beach Energy, with the company’s shares gaining nearly 6% during the month. Rob Jager ONZM was appointed as an independent non-executive director on December 14. The share price also lifted slightly on news of progress on its joint venture with Mitsui & Co.

Looking ahead, ASX energy shares have had a positive start to the year thanks to rising oil prices.

Beach Energy share price snapshot

The Beach Energy share price performed 43% worse than the broader S&P/ASX 200 Index (ASX: XJO) in 2021.

It closed today down 3.8% at $1.265. However, it is up around 8% over the past month.

Beach Energy has a market capitalisation of nearly $2.9 billion based on its current share price.

The post Why did the Beach Energy (ASX:BPT) share price nosedive 30% in 2021? appeared first on The Motley Fool Australia.

More reading

• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Wednesday

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/3G0lVQB

If you’re on the lookout for some new additions to your portfolio, then you may want to hear what analysts are saying about the ASX shares listed below.

Here’s what you need to know:

Bega Cheese Ltd (ASX: BGA)

The team at Bell Potter believe this diversified food company’s shares are in the buy zone at the current level. That’s despite a recent rally after it emerged that Andrew Forrest’s investment business has been loading up on shares.

The broker likes Bega Cheese largely due to its game-changing acquisition of the Lion Dairy & Drinks business for $528 million last year.

It commented: “The acquisition of Lion Dairy & Drinks (LDD) and targeted synergy base is expected to drive a material step change in returns for BGA over the next three years. In addition, we see BGA benefiting from recent upward moves in both commodity price drivers (SMP returns up +32% since Jun’21) and price increases on private label milk for only the second time in 20 years (+10¢/l by both Woolworths and Coles).”

Bell Potter has a buy rating and $6.45 price target on its shares. This compares to the latest Bega Cheese share price of $5.31.

Transurban Group (ASX: TCL)

Another ASX share that analysts rate highly right now is Transurban. The team at Morgans, for example, appear to believe it could be a good option for investors looking for income. This is due to its forecasts for a rapid dividend recovery post-pandemic as traffic volumes recover.

Morgans commented: “We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects. Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects.”

The broker has an add rating and $14.57 price target on its shares. This compares to the latest Transurban share price of $13.49.

The post Why analysts slapped buy ratings on these ASX shares appeared first on The Motley Fool Australia.

More reading

• Would you like cheese with that? A look at some of Twiggy’s highest profile ASX investments of 2021
• Morgans names 2 ASX 200 dividend shares to buy
• These were the best performing ASX 200 shares last week
• ASX 200 falls on Friday but records 13% gain in 2021
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again

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

from The Motley Fool Australia https://ift.tt/3EZ7N8R

Last year was an eventful one for the QBE Insurance Group Ltd (ASX: QBE) share price as it rebounded from a disappointing 2020 to finish up 33%.

In late trading today, the QBE share price is down 0.25% at $11.97.

Let’s take a look at the year that was for the insurer…

2021 off to a rocky start

After falling around 34% in 2020, the QBE share price got off to a rocky start in January 2021, before finding its stride in February.

The lower share price coincided with QBE announcing the renewal of its 2021 reinsurance program — arming itself with the help of other insurers in the protection of larger claims made.

The company increased its main retention to $3.4 billion — up by $1 million from its 2020 plan.

Its North America plan was cut in half, down to $200 million, due to COVID-19.

The QBE share price shifted slightly in mid-February after the insurer released its FY 2020 results.

In the presentation, the company reported a net cash loss (after tax) of US$863 million. This compared to an adjusted net profit (after tax) totalling US$733 million the year before.

QBE also did not declare a dividend for FY 2020.

QBE share price overcoming internal struggle

From 27 April to 6 May, shares in the insurer jumped by 17%. However, the company was expected to endure a pushback from shareholders at its AGM on 5 May.

The memo on the shareholders’ agenda? QBE’s remuneration report and its overall financial performance.

QBE chair Michael Wilkins AO cited COVID-19 and “heightened catastrophe activity” as reasons for the losses, though acknowledged the “unacceptable level of prior year reserve deterioration”.

However, Wilkins remained firm that QBE would make a comeback — and in the days following the AGM, QBE became one of the best performing ASX 200 shares.

The QBE share price continued to rise through August, before hitting its 52-week-high mid-month.

Strong prices to end the year

In the remainder of the year, the insurer’s shares dropped by 10% to end the year trading for $11.35 apiece.

The QBE share price saw a small rise after Melbourne’s 5.9 magnitude earthquake on 22 September.

It also saw a small drop following a Federal Court decision that businesses could not be compensated for losses due to government lockdowns.

So what’s on the 2022 agenda for the Australian insurer? Well, we spoke to a number of advisors who have their own predictions — you can read it here.

The company has a market capitalisation of more than $17.7 billion and almost 1.5 billion shares issued.

The post Here’s why the QBE (ASX:QBE) share price surged 30% in 2021 appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 ASX 200 shares to buy
• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• Where are QBE (ASX:QBE) shares headed in 2022?
• 3 ASX shares to buy before Xmas (hint: one predicted to rise 41%)
• 3 ASX finance shares to buy right now (hint: no big banks)

Motley Fool contributor Alice de Bruin 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/3EXi1Gz

The Ramsay Health Care Limited (ASX: RHC) share price is suffering today amid a broader market sell off.

Meanwhile, reports have emerged the private hospital operator has its sights set on a hiring spree, bringing in graduate nurses to fight against a COVID-19-exacerbated shortage.

At the time of writing, the Ramsay Health Care share price is $67.58, 5.76% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 2.78% today, while the All Ordinaries Index (ASX: XAO) is down 2.83%.

Let’s take a closer look at Ramsey’s apparent plan to staff its hospitals through yet another COVID-19 outbreak.

Ramsay share price slides amid planned hiring spree

According to reporting by The Australian, Ramsay is planning to onboard its highest intake of graduate nurses to battle a shortage of staff made worse by the pandemic.

It expects to employee 550 new graduates – 25% more than it did during 2021.

Previous research by the federal government – conducted in 2014 – forecasts a shortfall of 85,000 nurses by 2025 and 123,000 by 2030.

On top of that, CEO of Ramsay’s Australian operations Carmel Monaghan was quoted as saying the pandemic has worsened the shortage:

Like all industries, we see the workforce as our most significant challenge for the next few years. Supply has been constrained with borders closed and staff furloughed due to COVID.

Monaghan also stated some nurses refused to be vaccinated against COVID-19, further exacerbating the shortage.

The Australian noted a shortage of nurses may block the company’s hospitals from bouncing back to their full elective surgery capacity.

Elective surgeries are a major income source for Ramsay’s private hospitals. In its results for financial year 2021, Ramsay reported a 90-day restriction on elective surgeries in Victoria had a $70 million impact on the company’s earnings before interest and tax.

Similar restrictions were put in place in New South Wales over the first half of financial year 2022 and were one reason behind a 39.5% fall in the company’s unaudited net profit after tax for the first quarter of financial year 2022.

Thus, it likely goes without saying the market will be watching the Ramsay Health Care share price when it releases its results for the first half of financial year 2022.

Monaghan reportedly told The Australian the company has already received expressions of interest from 500 graduate nurses.

The post Ramsay (ASX:RHC) share price falls 6% amid reports of COVID battle plan appeared first on The Motley Fool Australia.

More reading

• These ASX healthcare shares could be excellent buy and hold options
• Why Audinate, Firefinch, IAG, and Ramsay shares are falling
• Leading brokers name 3 ASX shares to buy today
• What’s the outlook for ASX healthcare shares in 2022?
• Ramsay (ASX:RHC) share price lower after announcing $1.4bn Elysium acquisition

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 recommended Ramsay Health Care 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/34rDECw

The S&P/ASX 200 Index (ASX: XJO) is having a pretty awful trading day so far on Thursday, sorry to say. At the time of writing, the ASX 200 is down a nasty 2.72% at 7,360 points and has been falling steadily all day.

But rather than letting that drag us down, let’s instead dig into the ASX 200 shares topping the ASX 200’s share volume numbers, according to investing.com.

3 most traded ASX 200 shares by volume on Thursday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco share Telstra is our first company to check out today. This blue chip has had a notable 7.78 million of its shares bought and sold thus far this Thursday.

With no new developments out of Telstra today, this volume is likely the result of the share price fall Telstra has gone though so far. This telco has given up 1.2% so far today and is asking $4.14 a share at the time of writing. This is probably responsible for so many shares trading today.

Zip Co Ltd (ASX: Z1P)

ASX 200 buy now, pay later (BNPL) share Zip is our next share to check out. Zip Co has had a sizeable 9.56 million of its share find a new home thus far today.

With no fresh news or announcements out of Zip, we can probably put this elevated trading volume down to the nasty share price fall this company has endured so far this Thursday. Zip shares are presently down a depressing 6% or so after hitting a new 52-week low of $3.80 earlier in today’s session. This is the likely culprit for Zip’s high volume.

Pilbara Minerals Ltd (ASX: PLS)

And today’s final and most traded ASX 200 share so far is none other than lithium producer Pilbara Minerals. A hefty 20.04 million Pilbara shares have flown around the markets thus far today. Again, there isn’t much in the way of developments out of this company today.

So as such, we can speculate that this high volume is the result of the sizeable share price slump Pilbara has suffered through. This lithium share is currently down by 4.05% at $3.44 a share after dropping as low as $3.41 earlier in the trading day.

The post Here are the 3 most heavily traded ASX 200 shares this Thursday appeared first on The Motley Fool Australia.

More reading

• What is JP Morgan saying about ASX lithium shares?
• 6 ASX shares involved with green metals
• Own Zip (ASX:Z1P) shares? Top broker forecasts earnings for next 3 years
• These 3 ASX tech shares just hit 52-week lows. What’s going on?
• Is the party over for ASX BNPL shares?

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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/3eSvTYc

Shares in ASX uranium players are gaining support to start the year in 2022 and are outpacing their benchmarks.

Whereas the S&P/ASX 200 index (ASX: XJO) has slipped just under 2% in the red to 7,423 points today, several ASX uranium shares are surging and are well ahead of the broad index.

For instance, both Paladin Energy Ltd (ASX: PDN) and Bannerman Energy Ltd (ASX: BMN) are in the green and have climbed 3% and 5% on the day respectively.

Not to mention Lotus Resources Ltd (ASX: LOT) and Deep Yellow Ltd (ASX: DYL) share prices’ that are 3% and 5% higher on the day as well.

What’s got ASX uranium shares charging higher today?

Deadly protests stemming from the world’s largest producer of uranium, Kazakhstan, are leading to a jump in prices for the radioactive metal.

Kazakhstan produces more than 40% of the world’s uranium, and right now is facing unrest amid the greatest challenge to the country’s leadership in years according to reporting from Bloomberg.

Prices of the radioactive metal have surged this year and are now 48% higher on the year trading at US$45.40 per pound.

For producers, any increase in spot prices is likely to be a net positive to margins and revenue, given the higher prices fetched for the metal.

For others without the pricing power, there may be hidden challenges. However, uranium surged nearly 8% on Wednesday, as “the potential for this to create a shortage is what people are now trading on” said Jonathan Hinze, president of UxC LLC to Bloomberg.

From August to September alone spot and futures for uranium shot up more than 65% to a high of US$50.80/lbs, amid a reshuffling of energy investments from state giants in Canada and the EU.

Specially, the EU has recently moved ahead with plans to accept some nuclear projects as sustainable, as an incentive to drive investment into the space.

With these supply/demand mechanics in place, price takers listed on the ASX are seeing the price hikes reflected positively in their share prices today.

What to expect next?

Given the world’s exposure to uranium from Kazakhstan, the civil unrest is causing jitters amongst market participants overnight.

Any shutoff of supply chains out of Kazakhstan would result in severe shortages of the metal if it were a prolonged period.

Alas the market is pricing the new risk to uranium supply in curious ways this week. On some foreign exchanges, shares in uranium players have taken a hit, whereas the segment is outperforming on the Australian markets today.

With respect to Kazakhstan, Russia said it will send “peacekeeping forces” alongside its allies in the Collective Security Treaty Organization after the Kazakh President appealed for assistance.

Only time will tell as to how traders will evaluate how to play the situation coming out of Kazakhstan, although the threat of an “expected” shortage looms.

The price of uranium is down more than 1% for the month but is on track for a fast rebound at the current pace of recovery.

The post Why are ASX uranium shares charging higher today? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Here’s what the year ahead might look like for ASX uranium shares

The author has no positions 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/34kqkzH

The ResMed CDI (ASX: RMD) share price has been caught up in today’s market selloff.

In afternoon trade, the medical device company’s shares are down 4% to $33.58.

Is this a buying opportunity?

While today’s weakness in the ResMed share price is disappointing for shareholders, it could be a buying opportunity for the rest of us.

According to a recent note out of Morgans, its analysts have put an add rating and $40.80 price target on its shares.

Based on the current ResMed share price, this implies potential upside of 21% over the next 12 months.

Why is the broker bullish on the ResMed share price?

Morgans was pleased with the company’s performance during the first quarter and believes it will benefit in the short term from the recall of the rival Phillips device.

In respect to the recall, the broker previously commented: “We estimate the recall gain is c40% of Philips’ sleep device revenue (cUS$780m), or c13% of its market share (assuming it holds 33% share of a US$2.3bn market).”

However, it is the medium to long term that makes Morgans most positive on the ResMed share price. Its analysts are particularly positive on its connected-care digital platform and see major growth opportunities.

The broker explained: “While we believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

All in all, the broker appears to believe this could make it worth considering the sleep treatment focused medical device company’s shares as a buy and hold option.

The post Broker tips ResMed (ASX:RMD) share price to rise over 20% appeared first on The Motley Fool Australia.

More reading

• In the green: Here are the 5 best ASX healthcare shares of 2021
• 3 top ASX growth shares to buy in January
• Top brokers name 3 ASX shares to buy
• 2 excellent ASX growth shares offering big potential returns in 2022
• Why analysts love these ASX 200 blue chip shares

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 recommended 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/3EYDlM2

Lithium spot and futures contracts reached another record high by the end of December, marking a 486% leap in 2021.

Demand for lithium remains sky-high amid tightening supply, as the COVID-19 pandemic continues to play havoc on global supply chains and as suppliers race to build stockpiles of the battery metal and lock in better prices into the future.

JP Morgan updated its forecasts on the direction of the ASX lithium sector in December. The investment bank notes lithium prices outperformed internal expectations prompting it to upgrade baseline forecasts by 30-70% over 2022-23.

“Looking forward” JP Morgan says, “the demand outlook remains compelling, and it is hard to see a catalyst for prices to correct”.

The Australian lithium sector was a significant outperformer in 2021 with several names swooping returns in the triple digits.

As such, going forward JP Morgan is overweight on IGO Ltd (ASX: IGO) and Allkem Ltd (ASX: AKE), whilst remaining neutral on Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN).

Why is JP Morgan bullish on ASX lithium shares?

Analysts at the firm note that there is no change to its view of the lithium market “remaining in perpetual deficit”, and subsequently forecast a compound annual growth rate (CAGR) of 24% through until 2030.

Moreover, the broker says that EV sales momentum is driving ongoing positive sentiment across the sector, and ever-tightening markets appear to still be short of supply.

In the note from December last year, JP Morgan forecasts Lithium Carbonate and hydroxide seaborne contracts to gain 47% by the end of 2022, whereas it expects spodumene to rise by 71% per tonne by the same time.

This bullish momentum is likely to bode in well for ASX lithium shares, the broker says.

Out of its coverage, IGO is JP Morgan’s “key pick”, seeing as it screens “well from a valuation perspective” and offers attractive dividend forecasted yields circa 4%–6% in FY23–FY24.

The firm also says IGO recently added quality lithium assets to its portfolio via key investments in the Greenbushes spodumene mine and Kwinana hydroxide plant. This makes IGO a “one-stop stock for EV raw materials”.

While it likes fellow lithium player Allkem for its discount to valuation, the firm notes its near-term earnings multiples are relatively expensive “as it builds out its project pipeline with production to quadruple from FY21 levels over the decade”.

Not only that, but Allkem’s recently completed merger gives the newly formed entity access to more spodumene and brines.

This, alongside other growth levers, sees JP Morgan bake in a substantial dividend growth and return of assets (ROA) of 20% for the company in FY23/24.

What names is JP Morgan weary of?

Meanwhile, the firm isn’t as rosy on the Mineral Resources share price, and holds a neutral stance on the stock with a $46 per share price target.

However, it acknowledges that the company has crushing contracts with “some of the world’s largest mining companies in iron ore, gold and lithium operations, as well as its own operating assets”.

While the crushing business (CSI) has been the “long-term core business, [the company] has unlocked significant value in its lithium assets” it says.

Mineral Resources is also “ramping up production at its iron ore assets” according to the broker’s analysis. It remains neutral on the company on the grounds of valuation only.

Finally, Pilbara Minerals offers the greatest leverage to spodumene, the broker says, and also trades the cheapest on earnings multiples. It recently raised its Pilbara Minerals price target by 26% to $2.90, however, remained neutral on the shares, citing terms of valuation.

Lithium pricing by all accounts looks set to remain top heavy for the foreseeable future. This bodes in well for players within the industry alongside adjacent markets like battery technology, according to the broker.

The post What is JP Morgan saying about ASX lithium shares? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares involved with green metals
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• The 5 best ASX lithium stocks of 2021
• How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021

The author has no positions 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/3n2NL7k

The Imugene Limited (ASX: IMU) share price is sliding in negative territory today despite a positive company update.

At the time of writing, the immuno-oncology company’s shares are down 7.18% trading at 36 cents. It’s worth noting that Imugene shares have extended its losses to around 25% in the past month.

Imugene secures patent protection

Investors are selling off the Imugene share price amid the broader market slump in the S&P/ASX 200 Index (ASX: XJO) today. The benchmark index is currently down 1.87% to 7,424.1 points, erasing all of this week’s gains.

Nonetheless, Imugene provided the ASX with an upbeat announcement this morning, advising it had secured a patent in South Korea.

Approved by the South Korean Intellectual Property Office, the HER-Vaxx Immunotherapy patent will seek to further protect Imugene’s intellectual property.

HER-Vaxx immunotherapy is B-cell activating immunotherapy designed to treat tumours that over-express the HER-2/neu receptor. Currently in development, the company is designing HER-Vaxx immunotherapy to treat gastric, breast, ovarian, lung and pancreatic cancers.

South Korea has one of the highest incidence rates of gastric cancer across the globe, according to Imugene. Approximately one in five cases are considered to be HER2 positive. This makes the country a very attractive market for gastric cancer medications.

The patent protects the method of composition and method of use of Imugene’s HER-Vaxx immunotherapy for the next 15 years.

Notably, South Korea has been selected to conduct the next HERIZON Phase 2 clinical trial in 2022. The study will use HER-Vaxx in combination with chemotherapy or pembrolizumab in patients who have been diagnosed with gastric cancer.

Imugene managing director and CEO, Leslie Chong commented:

Attaining the key South Korean patent, on top of gaining protection in Japan and China in 2021, is a very important milestone. This will protect HER-Vaxx in the world’s largest HER-2 positive gastric cancer markets until 2036.

Imugene share price snapshot

Despite today’s fall, it has been a solid 12 months for the company’s investors, with the Imugene share price lifting 280%. Its shares reached an all-time high of 62.5 cents in November, before moving on a downhill trend.

Based on today’s price, Imugene has a market capitalisation of roughly $2.19 billion and approximately 5.77 billion shares on issue.

The post Imugene (ASX:IMU) share price backtracks 7% despite milestone update appeared first on The Motley Fool Australia.

More reading

• These are the 5 best performing ASX shares of 2021
• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?
• Why is the Imugene (ASX:IMU) share price up 8% today?
• Here are the 5 best performing ASX biotech shares of 2021
• Here are the 3 most heavily traded ASX 200 shares this Tuesday

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.

from The Motley Fool Australia https://ift.tt/3n2sxpX