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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

So… those who haven’t checked their crypto portfolios yet, might want to.

Crypto markets are in turmoil right now. Most major cryptocurrencies are bleeding, driven by outsized moves at the top of the value chain. 

This market turmoil started late-Friday evening and continued into early Saturday morning. However, by end of day Saturday, much of the market mayhem has died down, to some degree.

As of 11:45pm ET, Cardano (CRYPTO: ADA) and Ripple (CRYPTO: XRP) were two of the bigger losers among large cap cryptocurrencies. Cardano was down 8.4%, while Ripple saw declines of 7.4% over the past 24 hours.

However, Solana (CRYPTO: SOL), a top-5 cryptocurrency by market capitalization, recovered most of its gains from the earlier crypto crash, down only 1.8% since the mayhem began. And Terra (CRYPTO: LUNA) was the big winner-up 20.8% over the past 24 hours.

So what

Starting with the good news-Terra has been a big winner among mega-cap cryptocurrencies of late. This network provides crucial stable coin infrastructure, and appears to increasingly be viewed as a more stable (no kidding) hedge to the volatility that’s been reeking havoc in the crypto markets.

Solana’s positioning as a smart contract/decentralized finance (DeFi) network able to compete with Ethereum has enticed many investors to consider this top token. Accordingly, it appears the market is taking a buy-the-dip approach with this top token.

Ripple and Cardano are two cryptocurrencies with their own set of token-specific headwinds of late. Various regulatory and delisting concerns have plagued the two cryptocurrencies, leading to headwinds which appear to be hindering these tokens’ recovery today.

Now what

Looking at the price action of these four cryptocurrencies, investors can take away two things.

First, the crypto market is a fast-moving space with very unique blockchains, each with individual catalysts and headwinds. Investors looking at picking tokens ought to consider a variety of factors before jumping in. It’s a risky business, picking individual tokens.

Second, market-specific forces can, and will, continue to drive momentum across the sector. However, there’s always room for divergence from market-specific catalysts. In this case, Terra Luna’s upside momentum has overshadowed this weekend’s turmoil. And it appears Solana’s making a break for it to the upside.

Perhaps Ripple and Cardano will catch up to their peers. However, it seems investors are being more selective with the tokens they’re choosing to buy the dip with today. 

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

The post Crypto market crash: The latest on Solana, Cardano, Ripple, and Terra appeared first on The Motley Fool Australia.

More reading

• This crypto could be the Moderna of 2022
• Why Solana is up today amid a sea of red for major cryptos
• Australia’s first direct Bitcoin and Ethereum ETFs are launching
• 3 reasons why Solana could just be getting started
• Here’s why Cardano’s token is jumping today

Chris MacDonald owns shares of Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.4% to 7,213.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 4.5% to $6.49. Investors have been selling this auto parts retailer’s shares after it revealed that its CEO will now exit immediately instead of in February. Bapcor advised that since announcing the retirement of Darryl Abotomey as its CEO, there has been a marked deterioration in the relationship between him and the Board. As a result, “Mr Abotomey’s position as MD and CEO has become untenable.”

Kogan.com Ltd (ASX: KGN)

The Kogan share price has fallen 5.5% to $7.28. Investors have been selling the ecommerce company’s shares for a couple of reasons. One is the broad weakness in the tech sector following a poor night of trade on the tech-focused Nasdaq index on Friday. The other is Kogan being dumped from the ASX 200 index at the next quarterly rebalance.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma share price is down almost 7% to 49 cents. This follows the release of a trading update from the pharmacy chain operator. According to the release, Sigma expects its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to drop by 10% in FY 2022. This compares to previous guidance for 5% growth in FY 2022 and was driven largely by operational issues resulting from the roll-out of its Enterprise Resource Planning.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down over 9% to $4.38. This appears to have been driven by broad weakness in the tech sector and particularly in the BNPL industry. A number of BNPL shares are recording larger than average declines today following a tough night on the Nasdaq index on Friday. The Zip share price fell to a 52-week low today.

The post Why Bapcor, Kogan, Sigma, and Zip shares are dropping today appeared first on The Motley Fool Australia.

More reading

• Sigma (ASX:SIG) share price slides 7% to yearly low on guidance update
• Why the Zip (ASX:Z1P) share price is sinking 9% to a 52-week low
• ASX 200 (ASX:XJO) midday update: Metcash jumps, Kogan and Zip sink
• Here’s why the Kogan (ASX:KGN) share price just hit another 52-week low
• Bapcor (ASX:BAP) share price sinks again after CEO is kicked out

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 shares of and has recommended Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Bapcor. 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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In the modern investing lexicon, there are many different ‘types’ of investing strategies that investors like to identify themselves with. There’s growth investing, dividend investing, and growth-at-a-reasonable-price investing. Different investors often choose which strategy suits their goals, temperament and interests and go from there. It’s important to say that different investors have proven successful in pursuing all of the different strategies above. Or even a combination. But for Charlie Munger, value investing is the only choice.

Charlie Munger is one of the most famous investors in the world. He has for decades played right-hand man to the great Warren Buffett in managing the investment portfolio of Berkshire Halthaway Inc (NYSE: BRK.A) (NYSE: BRK.B). And even though Mr Munger is less than a month out from his 98th birthday, he is still happy to share his wisdom.

Most recently, this came at the Sohn Hearts & Minds Investment Conference held last week. Mr Munger tuned in to the conference and gave his views on a number of issues. These included cryptocurrencies (“I’m never going to buy a cryptocurrency. I wish they’d never been invented. I think the Chinese made the correct decision, which is to simply ban them.”). As well as the current state of the markets (“Overall, I consider this era even crazier than the dot-com era.”).

Charlie Munger is sticking with value investing

But perhaps his most pertinent remarks came on the topic of investing itself. According to reporting in the Australian Financial Review (AFR), Munger said the following on the value investing strategies he has honed for many decades:

I think all successful investment is value investing in the sense that you’re trying to get better prospects than you’re paying for…

There’s no great company that can’t be turned into a bad investment, just by raising the price. Part of intelligent business is knowing the business that you don’t want and keeping it out. I’m still looking for more value than I pay for.

But Munger did acknowledge that his and Buffett’s style of investing was facing challenges in the current investing climate:

It’s getting very difficult because we have a vast increase in the intellectual horsepower that’s trying to get rich by owning securities… They’ve bid the good businesses up and up and up and up. In America, at least, almost every great business is selling 35 times earnings or more.

That might explain why Berkshire Hathaway is currently sitting in the largest pile of cash it has ever had. Buffett and Munger have previously relished deploying Berkshire’s enormous funds into new investments during share market crashes, so perhaps Munger and Buffett know something we don’t.

Either way, history has shown it is well worth keeping an eye on what Messrs Munger and Buffett are saying and doing at Berkshire Hathaway.

The post ‘All successful investment is value investing’: Charlie Munger appeared first on The Motley Fool Australia.

More reading

• How many stock pickers does it take to change a share portfolio?
• Bear signal? Warren Buffett’s Berkshire Hathaway has been selling shares

Motley Fool contributor Sebastian Bowen 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 Berkshire Hathaway (B shares). 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 Sigma Healthcare Ltd (ASX: SIG) share price is plunging today after the company predicted its earnings will fall this financial year.

The Sigma share price is currently down by 6.67%, trading hands at 49 cents a piece. This is a 52-week low for the company.

Sigma is a pharmacy chain operator and distributor with a network of more than 1,200 pharmacies including well-known brands Chemist King, Amcal and Discount Drug Stores.

What did Sigma announce?

In today’s release, Sigma predicted its earnings before interest, taxes, depreciation, and amortisation (EBITDA) would drop by 10% in FY22.

The company downgraded its earnings forecast because of impacted sales and operating costs due to a major software update and COVID-19 restrictions. The company implemented a new enterprise resource planning system during the height of pandemic restrictions.

Sigma expects one-off and non-operating costs to be up $25 to $30 million, also proportionally impacting debt.

But while the prediction for FY22 is negative, the company reported 5% growth in September.

And the company also has a positive outlook on future growth overall.

Chairman Ray Gunston said:

Not withstanding this set-back, we remain confident in the future growth profile for Sigma, which was further underlined with the Sigma board recently approving the extension to our new Victorian Distribution Centre in Truganina.

We remain focused on growing our core business, whilst continuing to build on business expansion opportunities across areas such as hospital services, contract logistics and medical devices and consumables…

Sigma expects to announce its FY22 results on 29 March.

Sigma share price snapshot

Over the past 12 months, Sigma shares have dropped almost 17%. The Sigma share price is down 21% year to date. It reached a yearly high of 73 cents on 8 February. At 49 cents apiece, today’s price at the time of writing is a yearly low for the company.

Based on today’s share price, Sigma has a market capitalisation of roughly $514 million.

The post Sigma (ASX:SIG) share price slides 7% to yearly low on guidance update appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price a value trap or a bargain buy?
• 3 cryptocurrencies that crushed Shiba Inu in November
• Oil Search (ASX:OSH) share price edges higher on merger update
• Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks
• This crypto could be the Moderna of 2022

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The Westpac Banking Corp (ASX: WBC) share price has been one of the worst performing ASX 200 shares over the last few weeks.

Since this time in late October, the banking giant’s shares have lost 21% of their value.

Does this make the Westpac share price great value or a value trap?

Given the significant decline by the Westpac share price recently, investors may be wondering if its shares are great value or a value trap.

The team at Morgans has given its opinion on the matter this morning and appear convinced that the bank’s shares are not a value trap.

Morgans has reiterated its add rating and $30.50 price target. Based on the current Westpac share price of $20.74, this implies potential upside of 47% for investors over the next 12 months.

What did Morgans say?

Morgans notes that the Westpac share price is trading at a level that would indicate that the market thinks it is a value trap, but it doesn’t believe this is the case.

It commented: “WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not.”

The broker explained that it does not feel the challenges facing the bank are anywhere near as severe as the market may think.

Morgans said: “We believe the challenges facing WBC are not severe enough for WBC to be thought of as a value trap. The two key sources of investor consternation in relation to WBC appear to be: net interest margin (NIM) contraction; and risks to achieving the $8bn cost target by FY24F.”

“On the NIM front, we believe the challenge facing WBC is not too different to the NIM challenge facing CBA. […] However, what has made the NIM of WBC and CBA look particularly bad is the stable NIM (excluding Markets & Treasury) reported by NAB,” it explained.

The good news is that the broker believes these factors of underperformance are addressable.

What about its costs target?

As for its costs, the broker believes the current Westpac share price indicates that the market believes the bank will only be able to cut its costs down from $10.2 billion to $9.5 billion by FY 2024. However, Morgans stated that “we expect WBC to do notably better than this and we consequently believe that the extent of pessimism being reflected in WBC’s current share price is overdone.”

All in all, the broker believes this has created a buying opportunity for investors, with Westpac remaining its top pick of the majors.

The post Is the Westpac (ASX:WBC) share price a value trap or a bargain buy? appeared first on The Motley Fool Australia.

More reading

• Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks
• Here are 6 of the worst performing ASX shares of November
• The Westpac (ASX:WBC) share price sank 20% in November: Time to buy?
• Morgans names 2 of the best ASX share ideas for December
• ASX shares to buy for the Omicron COVID outbreak

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

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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.

Throughout much of 2021, cryptocurrencies have proved unstoppable. The world’s largest digital currency, Bitcoin, has nearly doubled in value from where it began the year. Further, the aggregate value of all cryptocurrencies has more than tripled to $2.62 trillion, as of Dec. 1.

Though there are more than 15,000 cryptocurrencies now listed by CoinMarketCap.com, it’s dog-themed meme coin Shiba Inu (CRYPTO: SHIB) that’s captured the attention of investors.

After going to the moon, Shiba Inu is now plummeting

When the year began, a SHIB token could be purchased for a microscopic $0.000000000073. But by Oct. 27, Shiba Inu had hit an all-time high of $0.00008841. In going from 10 zeroes down to four, it delivered a peak year-to-date gain of more than 121,000,000%. This means investors who put $1 to work in SHIB at midnight on Jan. 1 would have been millionaires on Oct. 27.

However, there’s been a shift in the tide over the past five weeks. In November, SHIB slid from $0.00006697 to $0.00004744. That works out a decline of 29% in a month.

Why the sudden pessimism? To begin with, look to history as a guide. With the exception of Bitcoin, nearly every payment coin that’s delivered a short-term gain ranging between 20,000% and 500,000% has been met with an equally brutal reversion of 93% to 99%. Even though the Shiba Inu community has plastered message boards with hype for months, the urge to lock in gains after a run-up of 50,000,000%-plus is simply too great for many to ignore.

Shiba Inu also lacks the utility and differentiation you’d want to see in a cryptocurrency that’s been hovering just outside the top 10, in terms of markets cap. Fewer than 375 merchants worldwide accept SHIB as payment. It’s also nothing more than an ERC-20 token built on the Ethereum (CRYPTO: ETH) blockchain, meaning it’s tied to the same high transaction fees and processing slowdowns that are known to hit the popular Ethereum network.

This crypto trio ran circles around SHIB in November

While Shiba Inu lost 29% of its value in November, most popular cryptocurrencies outperformed it. This includes Ethereum, which ended the month higher by 8%, and Bitcoin, which comparatively only lost 7%.

But within the crypto universe there are three digital currencies that absolutely crushed SHIB in November.

Avalanche: Up 87% in November

First up is Avalanche (CRYPTO: AVAX), which, true to its name, buried Shiba Inu with an 87% gain last month. This increase that propelled Avalanche past Shiba Inu in market cap looks to be the direct result of excitement surrounding its high-performance blockchain, as well as the real-world utility it can offer.

Avalanche is one of the fastest layer-1 blockchain projects in existence.  According to the development team, it operates thousands of nodes and can process north of 4,500 transactions per second (TPS), with a transactional finality of less than two seconds.  In English, this just means the sending of money, files, or data is completed in less than two seconds. Comparatively, the highly popular Ethereum network can only handle about 13 TPS, with a transactional finality of closer to six minutes.

In addition to being fast, Avalanche’s smart contract-powered network offers compatibility that should have no problem luring decentralized finance (DeFi) and decentralized application (dApp) developers. Since the Ethereum Virtual Machine is already running on Avalanche, it seems like a no-brainer that Ethereum-based DeFi and dApp developers will consider migrating to take advantage of Avalanche’s superior transaction speeds and low fees. 

But perhaps the most tangible reason AVAX soared in November was the mid-month strategic alliance that was formed between Ava Labs, which created the Avalanche platform, and Deloitte. The newly created “Close As You Go” cloud-based platform is designed to help state and local officials streamline eligibility and reimbursement applications following a disaster. 

The real-world application of Avalanche’s platform compared to Shiba Inu’s almost nonexistent real-world appeal is night and day.

The Sandbox: Up 332% in November

Another cryptocurrency that completely ran circles around Shiba Inu in November is The Sandbox (CRYPTO: SAND). It might have a playful name, but it wasn’t playing around last month. SAND tokens, which are the primary token of the platform, more than quadrupled.

The primary reason SAND gained 332% in November can be traced to investors’ insatiable appetite for anything having to do with the metaverse. The metaverse describes the next iteration of the internet that allows people to interact in a 3-D virtual environment. The Sandbox is a gaming platform focused on the metaverse that intends to reward gamers for creating virtual worlds. In essence, it’s a play-to-earn platform.

The buzz surrounding SAND spiked last month following Meta Platforms‘ (NASDAQ: FB) announced name change on Oct. 28.  Meta is likely best known for its social media subsidiary Facebook and its CEO, Mark Zuckerberg. Zuckerberg has been crystal clear that Meta will step up investments in the metaverse over the coming year and well beyond. This effectively puts The Sandbox at the heart of one of the buzziest and potentially fastest-growing global trends.

What’s more, unlike traditional gaming platforms, The Sandbox allows virtual creators to own their assets in the form of non-fungible tokens (NFTs). These NFTs can be used within a game or even monetized on The Sandbox’s marketplace.

It’s tough to say if the hype surrounding the metaverse will pay off anytime soon, but it certainly looks to be a more intriguing project than what Shiba Inu offers.

Crypto.com Coin: Up 227% in November

A third cryptocurrency that completely crushed Shiba Inu in November is Crypto.com Coin (CRYPTO: CRO), the protocol token of Crypto.com Chain (a decentralized blockchain developed by the Crypto.com company). After nearly hitting $1 per CRO, it pulled back to finish last month higher by “only” 227%.

There look to be a trio of reasons to explain Crypto.com Coin’s stellar November. Without question, the biggest catalyst was the mid-month announcement that Crypto.com would pay $700 million for the naming rights of the Staples Center over the next 20 years. Beginning later this month, the home of the Los Angeles Lakers (NBA), Los Angeles Clippers (NBA), Los Angeles Kings (NHL), and Los Angeles Sparks (WNBA), will now be known as the Crypto.com Arena. Owning the naming rights of an incredibly popular sports venue should help Crypto.com’s mission of increasing digital currency usage. 

Second, Crypto.com launched a television advertising campaign featuring actor Matt Damon on Oct. 28. Similar to landing the naming rights of the Staples Center, Matt Damon adds identifiable star power that could coerce additional users to join Crypto.com’s financially focused platform. The company’s cryptocurrency app and Visa card currently serve about 10 million customers. 

Lastly, Crypto.com Coin hodlers can probably thank inflation for their big gains. Users have the ability to stake their Crypto.com Coin to earn up to 12% annual interest.  Considering that October’s U.S. inflation rate of 6.2% hit a 31-year high, the ability to earn a real return, far above the rate of inflation, could be viewed as highly attractive right now. 

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

The post 3 cryptocurrencies that crushed Shiba Inu in November appeared first on The Motley Fool Australia.

More reading

• You could’ve made $1 million investing less than $1,500 in these 3 cryptocurrencies
• Shiba Inu soars and crashes, but it’s still holding up this week
• Here’s how these 4 top traded cryptos performed in November
• 2 reasons why Shiba Inu surged more than 30% today
• Why Shiba Inu Coin sank 7% today

Sean Williams owns shares of Meta Platforms, Inc. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Meta Platforms, Inc, Bitcoin and Ethereum. The Motley Fool Australia has recommended Meta Platforms, Inc. 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 Oil Search Ltd (ASX: OSH) share price is pushing upwards today following a positive update by the energy producer.

At the time of writing, Oil Search shares are up 0.76% to $3.97 apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.28% to 7,220.7 points.

What did Oil Search announce?

In today’s statement, Oil Search advised that it has received approval from the Papua New Guinea Securities Commission regarding its merger with Santos Ltd (ASX: STO).

This is just one of the conditions of the merger implementation deed that needed to be satisfied.

However, there are still a few hurdles to overcome. This includes clearance from the Independent Consumer and Competition Commission of Papua New Guinea as well as approval by Oil Search shareholders at the scheme meeting to be held tomorrow.

The Oil Search board unanimously recommends that its shareholders vote in favour of the scheme in the absence of a superior proposal.

In addition, other court approvals and the satisfaction or waivers of certain other customary conditions is required.

Both Oil Search and Santos are hoping to create the largest oil and gas company listed on the ASX. In essence, this would give the super-company a diversified portfolio of long-life and low-cost assets with significant growth options.

The offer consists of Oil Search shareholders receiving 0.6275 new Santos shares for each Oil Search share held. Upon completion, this would give Oil Search shareholders a 38.5% stake in the newly merged entity. Santos shareholders will retain the remaining 61.5% interest.

Oil Search share price summary

Since this time last year, Oil Search shares have gained more than 5%, with year-to-date growth hovering just under 7%. The company’s share price has moved sideways for most of 2021, amid uncertainty in the global economic recovery.

Based on today’s price, Oil Search commands a market capitalisation of roughly $8.2 billion, and has 2 billion shares outstanding.

The post Oil Search (ASX:OSH) share price edges higher on merger update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Own Santos (ASX:STO) shares? Here’s why the company could be in for some good news this week
• Could this make an Oil Search (ASX:OSH) merger even better value for Santos?
• ASX energy shares on watch after Omicron sparks oil price crash
• Santos (ASX:STO) share price dips despite progress on $21 billion merger

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

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is on track to exit 2021 on a positive note. But investors will be left wondering if its shares could be soaring higher if the bank wasn’t losing the mortgage war.

ANZ Bank is the only one of the big four ASX banks to lose share of the mortgage market in October, reported the Australian Financial Review.

ANZ Bank losing mortgage market share

The data from the Reserve Bank of Australia and the Australian Prudential Regulation Authority (APRA) showed that ANZ Bank’s market share dropped another 8 basis points to 13.09% in October.

Westpac Banking Corp (ASX: WBC) also underperformed on this front in October, but it still managed to grow its loan book.

There are a few possible reasons to explain ANZ Bank’s poor performance in winning new mortgagees.

ANZ Bank share price is a silver-lining

To be sure, this isn’t a new issue for the bank either. This is why supporters can still hold their head high as the ANZ Bank share price is up over 18% since January 2021.

In contrast, the S&P/ASX 200 Index’s (Index:^AXJO) gain for the year is half that of the bank.

Further, ANZ Bank isn’t the worst performing big ASX bank share. The wooden spoon goes to the Westpac share price as it’s only 7% above breakeven.

The increase in the ANZ Bank share price also matches that of the Commonwealth Bank of Australia (ASX: CBA) share price. CBA is widely regarded as the premium ASX bank share, so matching its share price performance is still a notable feat.

Why ANZ is losing the mortgage battle

But investors can only ponder how much higher the ANZ Bank share price could be trading if wasn’t losing out on the mortgage market.

The bank’s long lead-time in processing mortgages is one big reason for this, according to the AFR. ANZ Bank takes 51 days (median) to process third-party applications.

Mortgage brokers would rather put their client loans through another bank with National Australia Bank Ltd. (ASX: NAB) and CBA only taking around 10 to 11 days.

What’s more, ANZ Bank has an overreliance on mortgage brokers to generate new business. This not only explains the market share erosion, but the bank’s poorer net interest margin (NIM) and return on equity (ROE).

Outlook for the ANZ Bank share price

Both the NIM and ROE are key valuation measures investors use to price ASX bank shares. This helps explain why the CBA share price trades at such a hefty premium to its cohort.

What gives CBA this edge is its investment in technology to lift productivity. The other ASX banks are playing catch up on this front, but it appears that ANZ Bank’s investment on IT isn’t paying off.

ANZ Bank shareholders will be hoping for better news in 2022.

The post Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Moderna has been one of this year’s stock market stars. The biotech company has been on everyone’s radar screen as it commercialized its coronavirus vaccine and generated billions of dollars in revenue and profit. It’s a story of a small player reaching the major leagues.

And in 2022, there’s a cryptocurrency that may follow a similar path. It may progress from being a new hopeful to a crypto that’s proven itself. I’m talking about Solana (CRYPTO: SOL). The platform launched in the spring of 2020 and has been gaining ground ever since.

Starting small, finishing big

Of course, Solana’s price increase this year already has topped that of Moderna and just about every other stock. It’s soared 13,600%. But in my comparison, I’m focusing on the idea of starting small and finishing the year as a major, established player. Moderna has done that. And if Solana can do it too, the crypto may extend 2021’s increase.

So… why Solana? The blockchain stands out for a few reasons. The first one is speed. Solana uses a proof of history method for validating transactions on the platform. This involves marking each block of data with a timestamp of sorts. The process makes it easier and quicker for validators to do their job. In the end, Solana processes about 50,000 transactions per second. And the way Solana was designed means the platform eventually may process more than 700,000 transactions per second. That by far surpasses the speed potential of market leader Ethereum. That platform aims to process as many as 100,000 transactions per second after an upgrade set for next year.

Now speaking of other players, the cool thing about Solana is it’s working with them. Here’s what I mean: Solana developed a bridge that allows the transfer of assets across networks. This bridge — called Wormhole — works with Ethereum, Polygon, Terra, and Binance Smart Chain. This clearly will boost use of Solana because it means users don’t have to choose between Solana and other players. Instead, they can use them all.

Making progress in decentralized applications

Another point to note about Solana is the progress it’s made in the development of decentralized applications. The platform hosts more than 350 projects from non-fungible tokens to finance to games. This variety of applications running on Solana shows the real-world utility of the platform. Ethereum still remains ahead of Solana when it comes to number of projects. And that blockchain has the first-to-market advantage. But there is room for more than one player in this field. So, it’s possible for Solana and Ethereum both to be key actors on this stage in the future.

Solana has had a tremendous year when it comes to price performance. But next year could be even more important. Because Solana will prepare the terrain for the long term. Like Moderna, it could progress from risky, newish player to one that shows it has what it takes to lead in its field well into the future — and progressively find its way into more and more investment portfolios. 

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

The post This crypto could be the Moderna of 2022 appeared first on The Motley Fool Australia.

More reading

• Why Solana is up today amid a sea of red for major cryptos
• Australia’s first direct Bitcoin and Ethereum ETFs are launching
• 3 reasons why Solana could just be getting started
• My first crypto buy: Solana
• Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?

Adria Cimino owns shares of Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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 Nearmap Ltd (ASX: NEA) share price has declined by around 35% over the last month.

Tech shares are taking a bit of a beating right now. At the time of writing, the Afterpay Ltd (ASX: APT) share price is down 4.6%, the Zip Co Ltd (ASX: Z1P) share price is down 5.8% and the Xero Limited (ASX: XRO) share price is down around 2%.

Whilst Nearmap is currently down 4.2%, it just adds to the rest of the decline that the aerial imaging business has experienced.

The heavy decline started around the time that the company gave an update about FY22.

FY22 performance

Nearmap gave its update at the annual general meeting (AGM).

At the AGM, the company provided guidance that its annual contract value (ACV) was expected to end FY22 at between $150 million to $160 million on a constant currency basis.

Management said that the business had continued to deploy capital-raised funds in line with its FY22 guidance to increase investment in the business and use approximately $30 million of net cash in FY22.

Those funds are being allocated towards previously identified growth initiatives as it scales the business for growth.

Nearmap revealed that after a number of successfully completed tests of custom designed components in aerial flight, the company remains on track to manufacture and commence the roll-out of its next iteration of aerial camera systems, HyperCamera3 in FY22.

Outlook

Sometimes share prices, like the Nearmap share price, can be affected by what the company says about its future.

Nearmap said that it will continue to target ACV growth of between 20% to 40% in the medium-term to long-term and to maintain its underlying retention above 90%.

The company also said:

The combination of a healthy balance sheet and strong FY21 incremental ACV growth means Nearmap remains fully funded for the foreseeable future.

Optimistic expectations for the Nearmap share price

Two of the latest broker notes on Nearmap have price targets that are significantly higher than where it is today.

Citi has a price target of $2.20 on the business. At the time of the note release, it was ‘neutral’ on the business with thoughts that a legal battle in the US with Eagleview (part of the competition) could cost millions of dollars in legal fees.

Morgan Stanley rates the business as a buy with a price target of $3.20. That’s more than double where Nearmap is trading at right now. The broker thinks Nearmap will deliver at least to expectations.

The post The Nearmap (ASX:NEA) share price has dived 35% in a month. What now? appeared first on The Motley Fool Australia.

More reading

• Why these 3 ASX tech shares could plunge this week
• 5 things to watch on the ASX 200 on Monday
• Here are 6 of the worst performing ASX shares of November
• These were the 5 worst performing ASX 200 shares in November
• Why Best & Less, BHP, Mesoblast, and Nearmap shares are falling

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 shares of and has recommended AFTERPAY T FPO, Nearmap Ltd., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Nearmap Ltd., and Xero. 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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