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A secret $4.5 million fight over the fate of Afterpay Ltd (ASX: APT) options has reportedly been settled out of court.

According to The Australian, the dispute involved some of the biggest names in political lobbying: David Gazard, who is a close advisor and friend to prime minister Scott Morrison, and Jonathan Epstein.

The two men, along with former treasurer and now Nine Entertainment Co Holdings Ltd (ASX: NEC) chair Peter Costello, 10 years ago started a lobbying firm ECG Advisory.

After Costello left the partnership 3 years later, Gazard and Epstein gained Afterpay as a client.

One of the perks of that deal was reportedly share options in the buy now, pay later provider.

Was there an agreement or was there no deal?

The problem was that the 60,000 shares were due to be handed out within the framework of an employee incentive plan. This meant that they could not be issued to ECG, but had to be in the name of an individual.

There was allegedly an agreement that they would be issued under Gazard’s name to be held on behalf of ECG, The Australian reported.

Epstein left the firm in late 2019, but has accused Gazard of pocketing the $4.5 million proceeds from selling the options in October 2020. 

“The acknowledgement and agreement of Epstein, Gazard and ECG was partly in writing, partly oral and partly to be inferred,” read the statement of claim from Gazard’s lawyers.

In his defence, Gazard claimed there was never an agreement that he would hold options on trust for ECG.

He also claimed that the options were issued after Epstein departed and that he provided services to Afterpay through another business named DPG Advisory Solutions.

The details of the dispute had been confidential until now.

“Avoiding a potentially embarrassing and awkward court case that would have thrown open the inner workings of one of Australia’s most connected and influential lobby firms, Mr Gazard and Mr Epstein settled out of court recently through mediation,” reported The Australian.

Both Gazard and Epstein declined to comment to the newspaper.

The post $4.5 million brawl over Afterpay (ASX:APT) options settled appeared first on The Motley Fool Australia.

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• Invested in Afterpay (ASX:APT) shares? Here’s what to watch in 2022
• Why Afterpay, Humm, Namoi Cotton, and Pilbara Minerals shares are falling
• Why is the Zip (ASX:Z1P) share price outperforming Afterpay today?
• ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks
• These were the worst performers on the ASX 200 last week

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price is falling this morning amid news the company plans to fork out US$825 million – $1.15 billion – on an Argentinian lithium mine.

The Rincon lithium project is a large brine project with the potential to be one of the lowest carbon operations in the industry. And it could soon be Rio Tinto’s.

In early morning trade, the Rio Tinto share price is $100.73, 0.66% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.04%.

Let’s take a closer look at today’s non-price sensitive news from the mining giant.

Rio Tinto share price slips amid acquisition news

The Rio Tinto share price is in the red amid an agreed-upon acquisition in South America’s ‘lithium triangle’.

The Rincon project can produce battery-grade lithium carbonate. The company said the acquisition highlights its commitment to battery materials and its portfolio for the global energy transition.

Rio Tinto CEO Jakob Stausholm commented on the acquisition, saying:

The Rincon project holds the potential to deliver a significant new supply of battery grade lithium carbonate, to capture the opportunity offered by the rising demand driven by the global energy transition. It is expected to be a long life, low-cost asset that will continue to build the strength of our Battery Materials portfolio, with our combined lithium assets spanning the US, Europe, and South America.

A pilot plant is already running at the project. However, it needs more work to optimise its recoveries.

Rio Tinto plans to complete studies on the Rincon project to confirm its resource and define resource statements.

Additionally, the company has proposed to use direct extraction technology that has the potential to significantly increase lithium recoveries when compared to traditional solar evaporation ponds.

According to the company, demand for lithium is expected to grow by up to 35% annually over the next decade. On top of that, lithium demand may begin to exceed supply from 2025.

The acquisition is subject to Australia’s Foreign Investment Review Board’s approval. If it receives the green light, the purchase should be completed in the first half of 2022.

Currently, Rincon Mining owns the Rincon project. Rincon Mining is, in turn, owned by Sentient Equity Partners.

Sadly, 2021 hasn’t been a great year on the ASX for the Rio Tinto share price.

It has fallen 11% year to date. Though, it has gained 12% over the last 30 days.

The post Rio Tinto (ASX:RIO) share price slumps amid $1.15b lithium acquisition appeared first on The Motley Fool Australia.

More reading

• Reshuffle: Why is the Rio Tinto (ASX:RIO) share price sliding today?
• Analysts say these ASX shares are buys
• Rio Tinto (ASX:RIO) share price lifts despite lithium project plans suspended following protests
• Rio Tinto (ASX:RIO) share price climbs amid $3.2 billion Mongolia ‘reset’
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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.

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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

One of the best-performing cryptocurrencies in recent weeks, Avalanche (CRYPTO: AVAX) has once again exploded higher today. As of 9:45 a.m. ET, Avalanche has soared 13.6% higher over the past 24 hours. Over the past week, this token has gained more than 45% on an impressive rally that has taken Avalanche into the top 10 in terms of market capitalization.

Broadly, stock and crypto markets have recovered today following news that President Joe Biden’s Build Back Better plan may not be completely dead in the water. Sen. Joe Manchin reportedly spoke with Biden yesterday evening, stoking bets that this stimulative deal may still have legs.

However, token-specific catalysts that have provided momentum for Avalanche over the past week also seem to be buoying this token. Specifically, investors appear to be focusing on on a key BofA analyst note from last week singling out Avalanche as a credible alternative to Ethereum due to this platform’s “faster time-to finality (settlement) and lower costs than alternative blockchains.”

So what

Importantly, today’s increase brings Avalanche within 20% of its all-time high set approximately one month ago. Like many of the fastest-growing tokens in the market, Avalanche has entered into bear market territory as investors appear to be in de-risking mode. However, today’s macro news seems to have investors in risk-on mode once again.

For tokens like Avalanche with incredible momentum built atop some strong catalysts, today certainly looks like a perfect storm. Any token that’s put in the same discussion as Ethereum is worth considering.

Much of the attention Avalanche has received of late is due to the blockchain’s accelerated adoption by developers and users, particularly in the decentralized finance (DeFi) space, as well as the non-fungible token (NFT) and gaming segments. One of the key measures investors look at with respect to growth in the DeFi world is total value locked (TVL) — Avalanche has reportedly surged past other scaling platforms such as Solana and Polygon in terms of TVL. Currently, total value locked on the Avalanche network sits around $12 billion, which is quickly approaching 10% of the roughly $150 billion in TVL held on the Ethereum network.

Now what

Given Avalanche’s relatively low fees and fast transaction speeds, experts have singled out Avalanche as a network with serious growth potential relative to the field. Looking at the numbers behind this analysis, this thesis certainly appears to have legs.

Of course, Ethereum is battling other high-profile “Ethereum-killers” for market share in the growing DeFi world. Picking a specific token that will ultimately be a DeFi market share leader isn’t as easy as one might think. Avalanche is certainly highly scalable and has impressive metrics right now. However, the slowing of other low-cost, high-speed networks (such as Solana) could foreshadow a not-so-linear growth path for Avalanche over the medium term.

That said, it’s clear that expectations are starting to build for Avalanche as a true Ethereum competitor. Now that Avalanche is a top-10 token by market capitalization, it’s also likely that Avalanche will receive more attention moving forward.

Where this token goes from here will certainly be intriguing to watch. This is a token I’ve got on my watch list right now. 

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

The post Avalanche crypto soars into top 10 — Could this token be the next Ethereum? appeared first on The Motley Fool Australia.

More reading

• Macquarie names the best ASX lithium shares to buy in 2022
• $4.5 million brawl over Afterpay (ASX:APT) options settled
• Rio Tinto (ASX:RIO) share price slumps amid $1.15b lithium acquisition
• Aussie Broadband (ASX:ABB) share price higher despite guidance downgrade
• Here’s why Bell Potter is tipping 52% upside for the Boss Energy (ASX:BOE) share price

Chris MacDonald owns Ethereum and Solana. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Ethereum. 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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The Aussie Broadband Ltd (ASX: ABB) share price is pushing higher on Wednesday morning after investors overlooked a guidance downgrade.

At the time of writing, the telco’s shares are up 2% to $4.67.

What did Aussie Broadband announce?

Investors have been bidding up the Aussie Broadband share price this morning despite the release of a disappointing update.

In October, Aussie Broadband provided a trading update which included guidance of 53,000 to 60,000 broadband net additions in the second quarter of FY 2022. This comprised 33,000 to 40,000 organic broadband net additions and the migration of 20,000 white label services.

Unfortunately, the company now expects to fall short of this guidance following teething issues with its white label migration.

What is expected in Q2?

According to the release, Aussie Broadband’s sales have remained strong and organic net additions for the second quarter are expected to be at the top end of the guidance range of 33,000 to 40,000 subscribers.

However, taking the shine off this strong performance were those aforementioned teething issues in the early stages of the white label migration. This led to just 8,715 services being migrated in the quarter, well short of the 20,000 target.

Positively, those issues have now been resolved. However, due to the Christmas break, migrations have now concluded for the year and will recommence in mid-January 2022.

Management expects the shortfall to now be migrated in the third quarter of FY 2022. Combined with the originally planned third quarter migrations, it now expects approximately 22,700 migrations to be completed in during the quarter, subject to churn.

End of half expectations

In light of the above, Aussie Broadband expects there to be 492,495 to 494,495 broadband services on its network at the end of the first half.

This is up 10% to 10.9% since the end of the first quarter when the company reported 445,780 active broadband services.

The Aussie Broadband share price is now up 130% in 2021.

The post Aussie Broadband (ASX:ABB) share price higher despite guidance downgrade 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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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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Shares in Boss Energy Ltd (ASX: BOE) have been riding on a sawtooth these past few months and fallen from a high of $2.92 in late November.

Prices are now down more than 25% for the month. Despite the recent pullback, the uranium specialist’s shares are still more than 178% in the green this year to date alongside many of the company’s ASX energy peers.

The recent volatility could present a few near-term opportunities according to some, especially those at Bell Potter. Let’s take a closer look.

What’s Bell Potter saying about Boss Energy shares?

Bell Potter is bullish on the ASX energy sector, noting that global energy demand rebounded strongly during 2H 2021.

Conditions were improved with the easing of lockdown restrictions and a recovery in industrial activity coinciding with low inventory levels and a constrained supply-side response, BP says.

According to the broker, these factors have led to market deficits across the energy complex and led to multi-year supercycles in Brent crude, Newcastle thermal coal, LNG futures, and uranium.

Moving forward, the firm reckons that “growing regulatory and financing pressures for replacement projects in energy markets should support commodity prices and sector free cash flow generation in the medium term” for incumbent producers.

These factors could bode well for Boss Energy, especially as global uranium markets are recovering from a cyclical low. Bell Potter says this means limited new supply in the near term and demand increasingly driven by decarbonisation efforts.

The recent listing of physically-backed investment vehicles has “further highlighted the uranium market’s tight supply-demand balance” in BP’s opinion. This could be another positive factor in Boss’s investment case.

BP also notes that Boss Energy’s Honeymoon uranium project in South Australia is fully permitted and on care and maintenance. BP analysts say entering uranium supply agreements to support a final investment decision for a restart at Honeymoon over the next twelve months is “the key value catalyst for Boss Energy”.

It also notes that Boss has “exploration upside across tenements adjacent to the Honeymoon project”.

With these points in mind, the broker is bullish on the direction of Boss Energy and rates the company as a speculative buy on a $3.47 valuation. At the time of writing, this implies an upside potential of 52%.

Boss Energy share price summary

In the past 12 months, the Boss Energy share price has soared more than 249% after rallying more than 178% this year to date.

Over the last month, it has reversed course, however, continuing a month-long trend into the red and is down 25% in that time.

At the time of writing, the Boss Energy share price is $2.27, up 4.13% in early morning trade.

The post Here’s why Bell Potter is tipping 52% upside for the Boss Energy (ASX:BOE) share price appeared first on The Motley Fool Australia.

More reading

• Here’s why the Boss Energy (ASX:BOE) share price is busting 4% higher today
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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.

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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.

A lot of investors have warmed up to cryptocurrencies this year, and Ethereum (CRYPTO: ETH) has been a popular choice. It pioneered smart contracts, and its evolving blockchain tech is just getting started.

Are you new to Ethereum and see it as a way to diversify your stock-heavy portfolio? Are you a seasoned vet of the crypto market, battle tested by the volatility, who accepts the ups and downs in the pursuit of market-thumping returns?

No matter where you’re coming from, let’s go over some of the figures that make Ethereum so promising.

560%

Ethereum is up 560% over the past year as of Tuesday morning. Past performance is naturally no indication of how the future will play out, but I may as well start with the jaw-dropping return that Ethereum has delivered to its longtime investors over the last 12 months.

The price swings have been substantial along the way, so investors and traders need to know that this isn’t a straight line moving higher. It’s still a glitzy number to get your attention. Let’s dig deeper.

$476 billion

Ethereum commands a market cap of $476 billion as of Tuesday morning. It’s the second-most-valuable cryptocurrency, and there’s a lot of elbow room for the silver medalist among digital currencies.

The top dog is at $924 billion, so Ethereum would have to nearly double from here to get there. Far away in the rearview mirror, the next most valuable token is at $56 billion. 

2,979

One thing that sets Ethereum apart from other crypto denominations is that it’s the most popular platform used by developers creating decentralized apps (dApps). More than 3,000 apps have been put out that are fueled by Ethereum’s blockchain. The 2,979 figure is the number of Ethereum-powered apps listed by apps tracker DappRadar.com. 

We’re talking about exchanges, marketplaces, games, collectibles, and other decentralized finance applications. These aren’t all obscure fringe apps. In fact, each of the top five apps have served more than 100,000 users over the past month.

The top dog is Uniswap (CRYPTO: UNI), a decentralized finance app that lets users trade their crypto without an intermediary. It had more than 346,000 users over the past 30 days with total balances of nearly $10.9 billion.

2022

This has been a good year for Ethereum despite its recent weakness. Next year should be even better. Ethereum is ready to migrate to a proof of stake model that will shift production from miners to validators. The Ethereum 2.0 makeover will make it faster and cheaper to use.

The migration could happen as early as the first quarter of next year. The blockchain leader is about to put the pedal to the metal, and we’re now just 11 days away from the first quarter of 2022.

100,000

Ethereum can currently process dozens of transactions per second. There are plenty of cryptocurrencies that can go through thousands — if not tens of thousands — of transactions per second. Ethereum should take the lead when its migration is complete, promising the ability to go through as many as 100,000 transactions per second at a much lower cost to end users than they have to pay now. 

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

The post Ethereum in 5 figures: Is it a buy? appeared first on The Motley Fool Australia.

More reading

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• Gas fees could be Ethereum’s kryptonite
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Rick Munarriz owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Ethereum. 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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There are some ASX shares that are rated as buys by multiple different brokers.

Share prices are changing all the time, so different companies can become opportunities at different times.

When many analysts think that a business is a buy, it could mean that the company is an opportunity. That’s the case with these two:

Baby Bunting Group Ltd (ASX BBN)

Baby Bunting is the leading retailer of baby and toddler products in Australia. It’s currently rated as a buy by at least five different brokers including Citi.

The broker thinks that sales were going to improve over the rest of the first half of FY22 after a slow start in the first couple of months.

It was the annual general meeting (AGM) that also revealed a couple of other positive trends that Citi liked the look of.

The ASX share revealed that in FY22 to the beginning of October 2021, its gross profit margin had increased by 120 basis points to 38.7%. That company attributed this improvement to private label and exclusive products, product mix and supply chain efficiencies.

Private label and exclusive products in the year to date (at the time) made up 44.3% of sales. It was 38% in the prior corresponding period. Baby Bunting has a long-term goal for private label and exclusive products making up half of sales.

On Citi’s numbers, Baby Bunting is valued at around 20x FY23’s estimated earnings.

Seven West Media Ltd (ASX: SWM)

Seven West is one of the leading media businesses in Australia, with the key channel 7 channels.

It’s currently rated as a buy by four brokers including UBS which has a price target on the business of $0.95. That’s around 50% higher than where it is today.

The broker has already seen a strong start to FY22 from Seven West.

Seven West is looking to grow digital earnings before interest, tax, depreciation and amortisation (EBITDA) by 100% from $60 million to $120 million in FY22.

Management said that the ASX share is well positioned to achieve its targeted share of 40% in the first half of FY22.

The delivery of its recurring savings target of between $15 million to $20 million is progressing to expectations.

Seven West said at its annual general meeting (AGM) that it was expecting to exceed analyst consensus EBITDA of $260 million by between 7% to 10%.

The company is also in the process of buying all the business and related assets of Prime Media Group Limited (ASX: PRT) which management said would significantly add to earnings, both before and after synergies. A key part of the attraction of the deal was that it would unlock the potential of a combined metro and regional audience base across broadcast and digital platforms. The ACCC said it would not oppose this deal.

According to UBS, the Seven West share price is valued at 5x FY23’s estimated earnings.

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

More reading

• Why Alcidion, Magellan, Redbubble, and Seven West shares are dropping
• Seven West Media (ASX:SWM) share price dips despite ACCC green light on Prime Media deal
• 2 buy-rated ASX shares with big growth plans
• Raiz (ASX:RZI) share price climbs 8% as Seven West Media makes strategic investment

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

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Insurance giant QBE Insurance Group Ltd (ASX: QBE) has been disappointing for buy-and-hold investors the past few years.

The share price has lost almost 10% over the last 5 years and more than 67% since its peak 14 years ago, just before the global financial crisis.

However, 2021 proved to be something of a comeback year for QBE shares.

Heading into the last 10 days of the year, the stock is up by around 32%.

So is it one to add to your portfolio for 2022?

‘Pricing tailwinds’ are coming for QBE shares

Morgans investment advisor Jabin Hallihan is one expert who’s bullish on QBE shares.

“Our forecast price target is $13.70 amid a dividend yield of 4.2%,” he told TheBull last week.

“The stock is relatively inexpensive as it was recently trading on a forecast price-earnings multiple of 12.8 times for fiscal year 2022.”

The QBE share price closed Tuesday at $11.29, implying an upside of more than 20% by Morgans’ projections.

Hallihan said “pricing tailwinds are evident”.

“QBE has increased insurance rates over the past year, which is likely to increase margins and underlying profit into 2022.”

QBE is ‘major beneficiary’ of rising interest rates

Another professional who likes QBE shares as we see off 2021 is Fat Prophets chief executive Angus Geddes.

He said that the insurer has made “substantial improvements” to its operations the last few years, and that’s about to bear fruit.

“Narrowing its focus has simplified the business and led to improving underwriting outcomes.”

Geddes agrees with Hallihan that pricing is an ace up QBE’s sleeve in the coming year.

“The insurance pricing market has become more rational, and QBE’s premiums have firmed considerably, which should continue, in our view,” he said.

“The business should be a major beneficiary ahead of a steepening yield curve.”

‘Strong buy’, say 6 of 8 analysts

Hallihan and Geddes are far from alone in their optimism for the QBE share price.

According to CMC Markets, 6 out of 8 analysts are currently rating the stock as a “strong buy”. The 2 dissenters are rating it as a “hold”.

QBE is now helmed by a fresh chief executive, Andrew Horton, who only started in September.

He said last month that his biggest challenge is to reform the culture of the company’s 11,500-strong workforce.

“It sounds very easy, but if it’s not natural to everybody, it’s going to be quite hard,” he told Insurance Business. 

“That’s why I need to start with the executive group, being supportive of each other and thinking towards the enterprise, and then cascade that down to the organisation.”

The post Where are QBE (ASX:QBE) shares headed in 2022? appeared first on The Motley Fool Australia.

More reading

• 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)
• Own QBE (ASX:QBE) shares? New CEO reveals insurer’s biggest challenges
• Why a leading broker is bullish on these 3 ASX shares
• Could it be time to consider buying QBE (ASX:QBE) shares in November?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Are you looking for some dividend shares to buy? If you are, then you might want to look at the ones listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is the leading homewares and furniture retailer behind a number of brands including Adairs, Mocka, and, shortly, Focus on Furniture. The company has just signed an agreement to acquire the latter, boosting its exposure to the $8.3 billion bulky furniture category.

Morgans was pleased with the acquisition. In response, the broker retained its add rating and lifted its price target to $4.80. This compares to favourably to the latest Adairs share price of $3.85.

The broker also expects generous dividends in the near term. It is forecasting fully franked dividends per share of 23 cents in FY 2022 and then 29 cents in FY 2023. This equates to yields of 6% and 7.5%, respectively.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Another ASX dividend share that could be a buy is ANZ. It could be a top option for income investors that don’t already have exposure to the banking sector. Particularly given its strong position in business banking, which is experiencing much more favourable trading conditions than retail banking.

It was partly thanks to this side of the business that ANZ recently delivered an impressive full year result. For the 12 months ended 30 September, the bank reported a 72% jump in statutory profit after tax to $6,162 million and a 65% increase in cash earnings from continuing operations to $6,198 million.

The team at Bell Potter is feeling positive about ANZ. Last week it reiterated its buy rating and $30.00 price target.

As for dividends, the broker is expecting fully franked dividends per share of 144 cents in FY 2022 and 151 cents in FY 2023. Based on the current ANZ share price of $27.32, this will mean yields of 5.3% and 5.5%, respectively.

The post Analysts name 2 high yield ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?
• Where are Macquarie (ASX:MQG) shares headed in 2022?
• Own ANZ (ASX:ANZ) shares? Here’s why the bank admits ‘we got it wrong’
• 2 great ASX dividend shares rated as buys for 2022: experts
• Why ASX 200 shares could add ~$70bn during the Santa Rally

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

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It’s fair to say there’s been a lot of speculation in share markets since the March 2020 COVID-19 crash.

Of course, the stock market’s spectacular recovery out of that trough has made decent money for many people — including first-time investors. 

But nothing probably represents that speculative fervour better than the enthusiasm for a particular US company.

Saxo Markets this week revealed that the 4th-most traded stock among Australians last month was Rivian Automotive Inc (NASDAQ: RIVN).

The electric truck maker made its debut on the NASDAQ on 12 November, Australian time, and quickly captured the imagination of investors.

The stock was listed at US$78 per share but within a week, it hit a high of US$179.47.

And it seems Australians were definitely part of the craziness.

The trouble is, Rivian has so far only made a handful of cars, mostly driven by employees and a select few outside the business. The company has not recorded any revenue yet.

Even at the current stock price of around US$90, the market capitalisation is US$76 billion. That’s pretty much the same as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM), which rake in annual revenues in the hundreds of billions.

What is going on?

Why investors are going mad for Rivian

Australians are going nuts for Rivian because they want to experience the same windfall that Tesla Inc (NASDAQ: TSLA) shareholders have.

Those lucky souls have seen their money multiply 10 times over the past 2 years as the world awoke to the realisation that electric vehicles would eventually dominate.

And who wouldn’t want to emulate that?

“Traders are excited to back the next reportedly big electric vehicles startup, with Rivian Automotive Inc seemingly being that meteor to grab onto,” stated Saxo in its Australia’s 10 Most Popular Stocks in November report.

Rivian supporters point out that e-commerce giant Amazon.com Inc (NASDAQ: AMZN) owns a reported 20% of the business and has an order for 100,000 delivery vans to be fulfilled by 2030.

Why investors should be wary of Rivian

But the trouble is, backing a zero-revenue business — let alone one that’s not making a profit — carries a big risk.

The Saxo report pointed out that even if Rivian reached its estimated revenue of US$9.4 billion, the money left over after expenses would not amount to much.

“Based on Rivian reaching Tesla’s operating margin of 9.6% and a 25% cash tax rate, this would equate to a net operating income of US$677 million after taxes.”

For Saxo Bank head of equity strategy Peter Garnry, the possible financials just do not justify the current valuation.

“Assuming the cost of capital of 10% — primarily equity financed with a high beta and early-start risk premium — and we play with the thought that this revenue/orders were a perpetuity and it could pass on inflation of 3% in the future, then this cash flow is worth [a market cap of] US$10 billion today.”

The Motley Fool US’ Jason Hall, in a video recorded just before Rivian’s listing, could not quite reconcile the numbers either.

“I just can’t wrap my head around buying what’s essentially still a start-up,” he said.

“This is still a start-up, they’re still basically pre-revenue. Start manufacturing 100,000 cars a quarter, and then we can have a conversation about whether I think it’s an investable company.”

The post Why are Aussies going mad for this $0 revenue company? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. 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 Amazon. 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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