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The Vulcan Energy Resources Ltd (ASX: VUL) share price has started 2022 in fine form.

In morning trade, the lithium developer’s shares are up 6% to $11.05.

Why is the Vulcan share price charging higher?

Investors have been bidding the Vulcan share price higher today after it revealed that it has been granted five new exploration licenses for geothermal energy and lithium in the Upper Rhine Valley, Germany.

According to the release, the licenses cover an area 325km squared which is considered by Vulcan to be prospective for deep geothermal and lithium brine. It increases the company’s granted license area by nearly 50% to over 1,000km squared.

Vulcan’s Managing Director, Dr. Francis Wedin, commented: “Our core mission is to build shareholder value by having a materially decarbonising effect on the lithium supply chain for battery electric vehicles, and on energy production in Europe. To do this, we aim to further grow our Zero Carbon Lithium Project.”

Dr Wedin also spoke about the future and what shareholders should be expecting from the company in the next five to six years.

He said: “Following the signing of binding lithium offtake agreements with Volkswagen Group, Stellantis, Renault Group and Umicore, as well as a binding term sheet with LG Energy Solution, Vulcan’s current plans for lithium production are now fully booked for the first five to six years of planned operation, a unique achievement which is testament to our team and the uncompromising environmental credentials of the Zero Carbon Lithium Project.”

“We have increasing demand from our customers for further supply. These new exploration licenses give us significant potential to further scale up our project as the market continues to grow, whilst also meeting the increasing demand for renewable heat and power,” Dr Wedin concluded.

The post Here’s why the Vulcan (ASX:VUL) share price is charging 6% higher today appeared first on The Motley Fool Australia.

More reading

• Broker tips Vulcan (ASX:VUL) share price to double in 2022
• The Vulcan Energy (ASX:VUL) share price is down 12% this week. What’s happening?
• Vulcan (ASX:VUL) share price storms higher after receiving short seller apology
• Why Blackmores, Mesoblast, Vulcan, and Zip shares are sinking
• Why the Vulcan (ASX:VUL) share price is jumping again on Friday

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

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Last year was a wild ride for ASX technology shares.

Sure, the S&P/ASX All Technology Index (ASX: XTX) was up a gentle 3.72% for 2021. But along the way it was also 15% down (in May) and more than 12% up (in November).

Aside from teaching us to hold our shares through the ups and downs, this showed the jitters the markets had about rising inflation and interest rates.

The theory is that rising interest rates impact tech stocks more than other sectors, because many of these companies rely on future earnings to justify their valuations.

But some ASX tech shares managed to ride out the volatility and put broad smiles on the faces of their investors.

Here are the 5 best performers of 2021 out of the constituents of the ASX All Tech index:

Company	2021 share price gain
Novonix Ltd (ASX: NVX)	659.5%
Life360 Inc (ASX: 360)	157.25%
Praemium Ltd (ASX: PPS)	122.73%
WiseTech Global Ltd (ASX: WTC)	90.5%
Readytech Holdings Ltd (ASX: RDY)	86.6%

This ASX tech share is up 660% despite no profit, not much revenue

Battery materials and technology provider Novonix Ltd (ASX: NVX) sure did attract a lot of speculators last year.

Its shares rocketed up a phenomenal 660% over 2021, as investors piled on to take advantage of the electrification of the car industry. It was by far the biggest gainer among the ASX All Tech members.

This is despite Novonix not even making much revenue, let alone profit.

The business has much potential, but the team at Marcus Today wrote last week that they wouldn’t buy in at this stage.

“The near-term picture doesn’t offer that much of a compelling reason to get involved,” the team stated.

“Demand for its products are expected to gain momentum but until there are more cash flows, it is hard to value.”

These shares are still cheap, despite 157% gain in 2021

Family tracking software maker Life360 Inc (ASX: 360) started off 2021 with a bang, announcing in January that early Meta Platforms Inc (NASDAQ: FB) staffer and sister to the chief executive, Randi Zuckerberg, had joined the board.

Wilson Asset Management portfolio manager Tobias Yao bought in at that time, when the shares were around $3.80.

“Given her profile, and the amount of opportunities that would come across her desk, we thought it was a huge vote of confidence that she decided to choose Life360.” 

The stock closed 2021 at $9.71 after starting the year at $3.77, which is an impressive 157% gain.

Yao told a Wilson video that Life360 shares are still good value.

“The valuation is actually undemanding relative to many of its international peers,” he said.

“We think the share price still has material upside driven by continued top-line growth — as well as multiple expansion on the back of people getting more comfortable with the growth story.”

Boom ASX share set for more gains if interest rates rise

Financial planning software maker Praemium Ltd (ASX: PPS) was the only other stock in the ASX All Tech index that more than doubled its value over 2021.

The stock closed the year at $1.47, which ended up being a 123% return for 2021.

Shaw and Partners portfolio manager James Gerrish said last month that he would be happy to buy into Praemium in the $1.30s.

“To me, the independent platform businesses have got such tailwinds around how investors are holding their assets,” he said in a Market Matters video.

“And the huge uplift in the value of investable assets over time.”

Investor software is seen as an inflation beneficiary, as they hold balances of uninvested funds from their users, which they can lend out to banks for the cash rate.

The post 5 best ASX 200 tech shares of 2021 appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX 200 shares in 2021
• 3 fantastic ASX shares to buy this month
• Analysts name 2 exciting ASX growth shares to buy in 2022
• Novonix (ASX:NVX) shares rocketed 600% this year. Now what?
• Top ASX shares to buy in 2022

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc., Meta Platforms, Inc., Praemium Limited, Readytech Holdings Ltd, and WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended Meta Platforms, Inc., Praemium Limited, and Readytech Holdings 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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It was a stunning 12 months for the S&P/ASX 200 Index (ASX: XJO) in 2021. Over the period, the benchmark index climbed 13% higher.

Unfortunately, not all ASX 200 shares climbed with the market. Here’s why these were the worst performers over the period:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the worst performer on the ASX 200 in 2021 with a disappointing 60.5% decline. Investors were selling the medical device company’s shares after its sales fell well short of expectations in FY 2021. In addition, the surprise resignation of its Managing Director, Paul Brennan, weighed on sentiment. Mr Brennan’s interactions with senior staff and his management style led to increasing differences between him and the Board. PolyNovo also lost its Chief Operating Officer, Dr. Anthony Kaye, to CSL Limited (ASX: CSL) during the year.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn’t far behind with a decline of just over 60% during the 12 months. This fund manager’s shares came under pressure last year amid concerns over the underperformance of its flagship fund. This is expected to weigh on performance fees in the near term and could impact fund inflows. In addition, late in the year the company’s shares were sold off after it announced the termination of the St James’s Place mandate. Magellan advised that the mandate represents approximately 12% of its current annual revenues.

Appen Ltd (ASX: APX)

The Appen share price was out of form and dropped 55% over the 12 months. A good portion of this decline came after the release of its half year results in August. Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. In addition to this, concerns over structural changes in the artificial intelligence/machine learning data labelling industry have been weighing on sentiment. There are fears that major tech companies will bypass Appen by taking things in-house.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price was unsurprisingly among the worst performers on the ASX 200 in 2021 with a decline of 52.3%. Investors were selling down this struggling infant formula company’s shares after a disastrous performance in FY 2021. This was driven by a significant reduction in demand for its products in China and the daigou channel and poor inventory management. And while the company provided an investor update which outlined its recovery plans, it wasn’t enough to stop its shares from falling. A2 Milk guided to significantly lower margins compared to pre-COVID levels and a sales target of NZ$2 billion over the next ~5 years. The latter compares to FY 2020’s pre-COVID sales of NZ$1.73 billion.

AGL Energy Limited (ASX: AGL)

The AGL share price continued its multi-year decline in 2021 and dropped 48.6% over the period. Investors were selling off this energy company’s shares amid weak wholesale prices and its bleak outlook. Not even the release of its demerger plans has been able to give its shares a boost. Those plans will see the company split into two. AGL Energy is planning to become Accel Energy, an electricity generation business focused on the accelerating energy transition. It will then demerge a new entity, AGL Australia, which will be a multi-product energy-led retailing and flexible energy trading, storage and supply business.

The post These were the 5 worst performing ASX 200 shares in 2021 appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX 200 shares in 2021
• Analysts tip A2 Milk (ASX:A2M) and this share as buys
• 5 things to watch on the ASX 200 on Tuesday
• These were the best performing ASX 200 shares in December
• These were the worst performing ASX 200 shares in December

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 Appen Ltd and POLYNOVO FPO. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended A2 Milk. 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

Shares of China’s troubled property company Evergrande Group (OTC: EGRN.F) were suspended from trading on Monday due to the announcement of an order to demolish 39 buildings under construction in China. According to local reports, the building permits were illegally obtained, and authorities had consequently ordered their destruction.

So what

It’s the last thing equity investors, bondholders, and Evergrande property investors wanted to hear. The company is engaged in an ongoing struggle for survival that involves selling assets and shares to pay suppliers and meet bond coupon payments. The news that it will have to destroy buildings under construction will not be well received.

Both Evergrande and another large China property group, Kaisa, have missed bond payments, and rating agency Fitch has already cut their debt ratings to restricted default. Moreover, Fitch’s analysis assumes both companies will be liquidated in bankruptcy. For a flavor of how bad things are in the sector, consider that Fitch estimates the value of Kaisa’s investment properties is just 17% of the book value given by the company at the end of the first half of 2021. 

Now what

It’s no secret that Evergrande and Kaisa are in liquidity trouble, but the critical question is whether there will be contagion in China’s credit markets. The answer to that probably comes from potential government action to limit the fallout in the sector by helping Evergrande with a restructuring plan. Until that happens, investors have cause to be very cautious about the sector in general. 

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

The post Why Evergrande shares were suspended today appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 2 top ASX shares are buys in January 2022
• These were the 5 best performing ASX 200 shares in 2021
• 2 ASX dividend shares that could be buys with yields above 4%
• Analysts tip A2 Milk (ASX:A2M) and this share as buys
• 5 things to watch on the ASX 200 on Tuesday

Lee Samaha 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.

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

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This month could be a great time for investors to look at ASX shares that have been rated as buys by leading brokers.

The share prices of businesses on the ASX are changing all the time, so opportunities can open up quite quickly.

Brokers are always on the lookout for opportunities. These stocks are currently rated as buys by top analysts:

Insignia Financial Ltd (ASX: IFL)

Insignia Financial, which used to be called IOOF, is a business which aims to create financial wellbeing for Aussies. This company owns a number of financial brands, including MLC.

It’s currently rated as a buy by Citi, with a price target of $5.20. That suggests a possible increase of the share price of more than 40% over the next several months.

On Citi’s numbers, the Insignia share price is valued at 11x FY22’s estimated earnings with a projected grossed-up dividend yield of 10.25%.

In the first quarter, Insignia noted that it continued to see growth in funds under management and administration (FUMA). At 30 September 2021, the group FUMA increased by $2.4 billion to $321.1 billion. Funds under administration rose $1.8 billion and funds under management increased $0.6 billion. Market growth more than made up for the net outflows suffered by each division.

Management boasted of strong early momentum since the acquisition of MLC with the progression of its transformation program. The ASX share said that its synergy goals of $218 million per year by the end of FY24 and a run-rate of between $80 million to $100 million in FY22 are on track.

The company is evaluating the potential of accelerating synergies, though this would come with extra costs. It will tell the market about this analysis by the time of its FY22 half-year result.

Austal Limited (ASX: ASB)

This business designs, constructs and supports advanced defence and commercial vessels for the world’s leading operators.

It’s currently rated as a buy by a few different brokers including Credit Suisse. This broker has a price target on the Austal share price of $2.50 – that’s almost 30% higher than where it is right now.

An important win for Austal could be taking on a lease in the San Diego docks in the US.

Austal said its USA division will use the 15-acre site to focus on ship repair for the US Navy, Military Sealift Command and Coast Guard ships. The site is immediately adjacent to the US Naval Base San Diego, which will include a newly-built dry dock designed specifically to handle small surface combatants and other small to medium size ships.

The ASX share will establish a full service ship repair capability providing maintenance and modernisation for small surface combatants, autonomous vehicles and other vessels. Services will include technical and material support, topside work and dry docking availabilities.

This lease has a duration of 27 years and the cost of this deal is estimated to be around A$112.5 million.

Recently, the company announced it had been awarded a A$100.4 million contract by the US Navy to perform maintenance on Littoral Combat Ships deployed to the Western Pacific and the Indian Ocean. This contract could increase to around A$299 million if options for further periods are exercised.

According to Credit Suisse, Austal is valued at under 10x FY22’s estimated earnings with an estimated FY22 dividend yield of 5.25%.

The post Brokers rate these 2 top ASX shares are buys in January 2022 appeared first on The Motley Fool Australia.

More reading

• Fees for no service? ASIC lawsuit against Insignia (ASX:IFL) for potential misconduct

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. owns and has recommended Austal Limited. 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 S&P/ASX 200 Index (ASX: XJO) was in fine form in 2021. The benchmark index delivered investors an impressive 13% return over the 12 months.

While that was strong, some ASX 200 shares managed to generate even better returns. Here’s why these were the best performers on the index in 2021:

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price was the best performer on the ASX 200 in 2021 with a massive 268% gain. Investors were fighting to get hold of this lithium miner’s shares amid an increasingly positive outlook for the battery making ingredient due to its use in electric vehicles and renewable energy. Interestingly, despite its strong gain in 2021, the team at Macquarie still see scope for Pilbara Minerals’ shares to rise further. In December the broker put an outperform rating and $3.70 price target on its shares.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was a strong performer over the 12 months with a gain of 156%. This rare earths producer’s shares were in demand with investors following a strong increase in its neodymium and praseodymium (NdPr) production and an even stronger increase in its average realised price. This led to a big jump in its sales and profits in FY 2021.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price almost doubled in value in 2021 with its 97% gain. Investors were buying this integrated grain and edible oils company’s shares after it returned to form in FY 2021. For the 12 months ended 30 June, GrainCorp reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $331 million. This was more than triple the $108 million it recorded a year earlier. Things were equally impressive on the bottom line with GrainCorp swinging from a $16 million loss in FY 2020 to a profit of $139 million in FY 2021.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price wasn’t far behind with a gain of 90.5% in 2021. The main driver of this gain was the release of a stronger than expected full year result for FY 2021. The logistics solutions company reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. This was in line with its revenue guidance of $470 million to $510 million and well ahead of its EBITDA guidance of $165 million to $190 million. More of the same is expected in FY 2022, with management guiding to EBITDA growth of 26% to 38%.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price was a strong performer and charged 83% higher last year. This was driven by a series of large contract wins and the release of an impressive full year result from the health imaging technology company. In respect to the latter, Pro Medicus reported a 19.5% increase in revenue to $67.9 million and a 33.7% jump in net profit after tax to $30.9 million. Strong demand for its technology from major healthcare institutions drove its growth.

The post These were the 5 best performing ASX 200 shares in 2021 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• These were the best performing ASX 200 shares in December
• These were the worst performing ASX 200 shares in December
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last 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 Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX dividend shares that have yields of more than 4% could be attractive options for income.

It is tricky to find higher yields at the moment because of how low central bank interest rates are.

However, some compelling businesses might be an option to boost investment income:

Inghams Group Ltd (ASX: ING)

Inghams is a large business in the poultry sector. Readers may know the company’s products from seeing them at the supermarket.

It has been suffering from some headwinds, which may have sent the Inghams share price down by more than 10% over the last three months. Lockdowns and COVID-19 could have caused an impact to the business in the first half of FY22. There is also a question about inflation and costs, such as grain.

The business has a dividend policy target of between 60% to 80% of underlying net profit after tax. In FY21 it increased its dividend by 17.9%, paying 16.5 cents per share – this represented a dividend payout ratio of 71% of underlying net profit.

Inghams is currently rated as a buy by the broker Citi with a price target of $4.55. That’s a potential increase of around 30% over the next year.

The ASX dividend share is working on a number of initiatives to be more profitable including driving lower costs, enhancing yield and reducing waste. It’s also working on improving its branded and private label products, as well as launching plant-based products.

In FY22 and FY23, Inghams is expecting to pay a grossed-up dividend yield of 7.3% and 8.4% respectively.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a global multi-boutique asset manager that invests in other asset managers that are looking to grow over the long-term.

It has stakes in 15 investment outfits across US, Europe, Asia and Australia. Some of the names in the portfolio include GQG Partners Inc (ASX: GQG), Carlisle Management, Proterra Investment Partners, Aether, Victory Park Capital and Astarte Capital Partners.

This business continues to see its total funds under management (FUM) grow. In FY21, FUM increased 52% to A$142.3 billion. At 30 September 2021 it had reached A$150.1 billion. Excluding GQG, aggregate FUM increased 9% year on year in FY21 and another 7% in the three months to September 2021.

The rising FUM is helping increase the management fee profitability (excluding performance fees). In FY21, management fee profitability increased by 25% compared to FY20.

It’s expecting continued improvement in corporate and boutique prospects in FY22, as well as access to a new credit line and/or dedicated external pools of capital in FY22. Management have provided guidance of higher revenue and profit in FY22 even without new investments or being able to recognise a full year of earnings from GQG after it recently listed.

Pacific is currently rated as a buy by Ord Minnett, with a price target of $10.30. It thinks that the ASX dividend share will pay a grossed-up dividend yield of 7.3% in FY22 and 8.2% in FY23.

The post 2 ASX dividend shares that could be buys with yields above 4% appeared first on The Motley Fool Australia.

More reading

• Do these two unloved ASX shares offer tasty returns?
• Two inflation resilient ASX 200 shares revealed: fund manager

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 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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Looking for investment ideas in January? Listed below are a couple of shares that are rated highly by analysts right now.

Here’s what you need to know about them:

A2 Milk Company Ltd (ASX: A2M)

The team at Bell Potter believe the A2 Milk share price is in the buy zone after a horrific time in 2021. The broker believes the infant formula company has the potential to deliver very strong earnings growth in the coming years as it recovers from the pandemic.

Bell Potter has a buy rating and $7.70 price target on A2 Milk’s shares. This compares very favourably to the current A2 Milk share price of $5.46.

The broker said: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

Treasury Wine Estates Ltd (ASX: TWE)

This wine company is rated highly by the team at Morgans. Its analysts currently have an add rating and $14.06 price target on its shares.

The broker believes its shares are trading at an attractive level and was pleased with its recent acquisition of Frank Family Vineyards. It suspects the latter could lead to its margin expanding quicker than expected.

Morgans said: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 onwards. Organic growth will be supplemented by M&A. On this front, we view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important. This high margin business should see TWE achieve its US margin target two years earlier than planned. We see recent share price weakness as a great buying opportunity in this high quality company. The stock is currently trading at a material discount to its long term PE range.”

The post Analysts tip A2 Milk (ASX:A2M) and this share as buys appeared first on The Motley Fool Australia.

More reading

• How did the Treasury Wine (ASX:TWE) share price perform in 2021?
• Morgans names 2 blue chip ASX 200 shares to buy
• Down 50%: Broker tips A2 Milk (ASX:A2M) and this ASX share to rebound in 2022
• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• Leading brokers name 3 ASX shares to buy

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 A2 Milk 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.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the year in a disappointing fashion. The benchmark index fell 0.9% to 7,444.6 points.

Will the market be able to bounce back from this on Tuesday and start the year on a positive note? Here are five things to watch:

ASX 200 futures pointing lower but…

The Australian share market is set to return to trade this morning in a disappointing fashion. According to the latest SPI futures from New Year’s Eve, the ASX 200 is expected to open the day 1% or 88 points lower. Though, that could all change once the strong start to the year on Wall Street is taken into account. In late trade, the Dow Jones up 0.5%, the S&P 500 is up 0.45%, and the Nasdaq is trading 0.95% higher.

Apple becomes a US$3 trillion company

Following a strong night of trade on the tech-focused Nasdaq index, tech behemoth Apple has seen its shares rise to a level that gives it a US$3 trillion company. The iPhone maker is the first company to achieve this milestone.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.75% to US$75.79 a barrel and the Brent crude oil price has risen 1.15% to US$78.66 a barrel. This appears to have been driven by news that Libyan output will drop 200,000 barrels per day for one week due to pipeline maintenance.

Gold price sinks

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price dropped. According to CNBC, the spot gold price is down 1.5% to US$1,801 an ounce. The gold price slipped amid the strength in equities.

Iron ore price rises

It could be a good day for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares on Tuesday following a rise in the iron ore price. According to Metal Bulletin, the spot benchmark iron ore price has risen 1.3% to US$122.26 a tonne.

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

More reading

• These were the best performing ASX 200 shares in December
• These were the worst performing ASX 200 shares in December
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• ASX 200 falls on Friday but records 13% gain in 2021

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

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Looking for some small cap shares to add to your watchlist? Then have a look at the three listed below.

Here’s why they could be worth getting better acquainted with:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. ELMO has been a strong performer in recent years and looks well-placed in the future. This is due to acquisitions and favourable industry tailwinds. Morgan Stanley has an outperform rating and lofty $7.80 price target on its shares.

Serko Ltd (ASX: SKO)

Serko could be a small cap share to watch. It is an online travel booking and expense management provider with a number of quality solutions which have significant market opportunities. Another positive is that it recently signed a deal with travel booking giant Booking.com. This has the potential to be a game-changer over the coming years. Ord Minnett recently put a buy rating and $8.10 price target on Serko’s shares.

The post 3 small cap ASX shares to watch in January 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 Elmo Software and Serko Ltd. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Serko 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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