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Shares in Atomos Ltd (ASX: AMS) haven’t found solid ground today and are sliding 8% in the red at the time of writing.

At last check, Atomos shares were changing hands at $1.18 apiece, after trading as low as $1.04 just before the afternoon session.

Atomos started the day behind as investors responded poorly to a set of market updates.

The tech company that specialises in products for the content creation market first provided an update on a US$2 million investment in a cloud development agreement. Shortly afterwards, it confirmed its FY22 guidance.

Let’s take a closer look.

What did Atomos announce?

Atomos advised it has entered into a cloud development agreement with Cinemacraft Inc to fund the completion of its Videogram platform.

The release notes that Cinemacraft’s CEO and founder Sandeep Casi developed Videogram as a “cloud-based platform with a vision to automate video workflows to deliver unique opportunities for video creatives”.

Atomos will invest up to US$2 million to complete the development of the Videogram platform, including US$800,000 for patents and oversight.

Cinemacraft has a string of flashy investors on its books ranging from venture capital firm 500Startups to a Japanese actor. According to Atomos, the investment builds on its depth in video and multi-camera capture to expand into cloud-based services.

The agreement also has an embedded option that allows Atomos to acquire all shares in Cinemacraft. Atomos may exercise its option based on the financial performance of Videogram over two 12-month periods ending September 30, 2023.

Regarding the agreement, Atomos Chief Executive Officer Estelle McGechie said:

We are delighted to partner with Cinemacraft; they have developed unique cloud solutions that will underpin an exciting new chapter for Atomos. When you combine Sandeep’s experience developing technology at Fuji Film and ILM for Lucas Films, with his passion for using machine learning to simplify a creator’s journey, you can see Videogram is poised to reinvent the way online video is discovered, consumed, shared and monetised. I look forward to working closely with Sandeep and his team to help realise the potential of Videogram.

What about Atomos’ FY22 guidance?

Further to the cloud agreement, Atomos also advised on its FY22 full-year guidance today. The company expects revenue to be in excess of $95 million, an increase of at least 21% over FY21 revenue.

First half revenue is anticipated to be in excess of $40 million, up 22% year on year despite being “impacted by supply chain challenges”.

Earnings before interest, tax, depreciation and amortisation (EBITDA) margins are expected to be upward of 12%, up from 10.4% in FY21. Also factored into this EBITDA margin guidance is some upward pressure on variable costs, most notably freight, according to the release.

The forecast EBITDA margin relates to the underlying Atomos business and excludes approximately $1m of operational costs resulting from the investment in Videogram.

Commenting on Atomos’ guidance, McGechie said:

In effectively managing our supply chain to ensure sufficient stock to meet our sales targets, we have in inventory during the first half and as a result will experience a cash outflow.

The Atomos share price has gained almost 24% in the past 12 months, after rallying 22% this year to date.

However, in the past month, it is down by more than 20% and has fallen 9% in the past week.

The post Here’s why the Atomos (ASX:AMS) share price is sinking 8% today appeared first on The Motley Fool Australia.

More reading

• European Lithium (ASX:EUR) share price sinks after listing in US
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• BHP (ASX:BHP) share price jumps 4% on ‘global energy company’ deal
• Why is the Australian Ethical Investment (ASX:AEF) share price surging 7% today?
• The AGL (ASX:AGL) share price has lost 8% so far this month. What’s next?

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos 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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The S&P/ASX 200 Index (ASX: XJO) has shaken off yesterday’s woes and is currently in the green thus far this Tuesday. At the time of writing, the ASX 200 is up by 0.8% at 7,412 points.

So let’s dive a little deeper and check out the ASX 200 shares that are currently topping the ASX trading volume charts so far today, according to investing.com.

3 most active ASX 200 shares by volume on Tuesday

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 share experiencing elevated trading volume today is the blue-chip telco Telstra. A hefty 10.95 million TLS shares have swapped hands so far this Tuesday. There isn’t much in the way of news or announcements out of Telstra today.

However, the Telstra share price has enjoyed a very pleasing day of trading so far. It’s up 0.49% and is sitting at $4.08 a share after hitting a new 52-week high of $4.09 earlier this morning. It’s these new highs that are probably responsible for this trading volume, perhaps in conjunction with Telstra’s ongoing share buybacks.

Fortescue Metals Group Limited (ASX: FMG)

Here we have another ASX 200 blue chip in the giant iron ore miner Fortescue. A sizeable 14.77 million Fortescue shares have found new owners so far today. Again, there is no major news out of the company to speak of.

However, as my Fool colleague Bernd covered this afternoon, Fortescue shares are exploding higher today, likely on the back of rising iron ore prices. Fortescue is currently up a pleasing 9.75% so far to $17.34 a share. This huge surge is almost certainly behind this elevated trading volume.

Pilbara Minerals Ltd (ASX: PLS)

Our final and most traded ASX 200 share thus far today is none other than lithium producer Pilbara Minerals. There have been a tremendous 22.01 million Pilbara shares bought and sold. This can likely be placed at the feet of the announcement Pilbara made this morning.

This covered an agreement Pilbara has inked with its lenders to secure an increase in its debt facilities. Perhaps in response, the Pilbara share price is up 4.84% so far today at $2.60 a share, a new all-time high for this ASX 200 lithium share. It’s this combination that is probably behind so many Pilbara shares flying around the markets today.

The post Here are the 3 heaviest traded ASX 200 shares this Tuesday so far appeared first on The Motley Fool Australia.

More reading

• What’s causing the Fortescue (ASX:FMG) share price to leap 9% today?
• 2 high-yielding ASX 200 dividend shares
• Leading brokers name 3 ASX shares to sell today
• Here’s why the Pilbara Minerals (ASX:PLS) share price hit a record high today
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls

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

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Shares in resources giant BHP Group Ltd (ASX: BHP) are climbing in afternoon trade and are now swapping hands 4.41% higher at $38.195.

The BHP share price has been lifting today following a company announcement after the close on Monday.

As covered by The Motley Fool earlier today, both BHP and Woodside Petroleum Limited (ASX: WPL) provided an update on their plans to create a global energy company.

BHP also followed up with another announcement on the Scarborough upstream project in Western Australia.

Why are BHP shares crawling higher?

Investors are responding positively to a set of updates provided by BHP on Monday. The first advised that BHP and Woodside will merge their respective oil and gas portfolios.

Further to this announcement, BHP came out with a separate note, advising it had approved US$1.5 billion in capital for phase 1 of the development of the Scarborough project. Final investment decisions have also been made by Woodside and the Scarborough joint venture.

The approved capital expenditure represents BHP’s 26.5% participating interest in Phase 1 of the upstream development. Woodside holds the remaining 73.5% interest and is the operator of the project.

According to BHP, Phase 1 of the project was approved after “a thorough evaluation of its risk and return metrics, including the economics and technical assessment of the integrated project”.

Speaking on the announcement, BHP’s CEO Mike Henry said:

Scarborough will be amongst the lowest carbon incremental sources of LNG to world markets. Scarborough will provide a reliable source of LNG for global customers and secure gas supply for the domestic market, as well as ongoing employment in Western Australia. Scarborough will provide important cash flows and value for shareholders of the enlarged Woodside.

In addition to this development, BHP also holds an option to sell its interests in Scarborough, plus the Thebe and Jupiter projects, to Woodside if the Scarborough merger does not complete.

What else did BHP announce?

Aside from this, as covered by The Motley Fool today, BHP and Woodside confirmed each had signed a binding share sale agreement for the merger of BHP’s oil and gas portfolio with Woodside.

Woodside will acquire the entire share capital of BHP Petroleum International Pty Ltd in exchange for new Woodside shares.

BHP Petroleum will transfer to Woodside on a cash and debt-free basis, based on the balance sheet at the time, including BHP’s legacy assets and liabilities.

When finalised, the merger will result in a global top 10 independent energy company by production and the largest energy company listed on the ASX, according to the announcement.

The combined company will have a high margin oil portfolio, long-life LNG assets, and the financial resilience to help supply and meet energy demand. BHP reckons the deal will deliver substantial value creation for both sets of shareholders from across a range of areas.

Some of these areas include greater scale and diversity of geographies, products, and end markets. The company also foresees estimated synergies of more than US$400 million (100 per cent basis, pre-tax) per annum.

Curiously, the board considered an alternative option to the merger. It considered spinning off its BHP Petroleum asset via distributing shares in a newly-listed entity.

However, while a demerger would result in a financially viable entity, “the board determined that the merger was the best alternative for shareholders given that it would capture the additional value”.

On completion of the merger, Woodside will issue new shares expected to comprise approximately 48% of all its shares, according to the announcement.

BHP says completion is targeted for the second quarter of the 2022 calendar year. Prior to completion, both parties will carry on their respective businesses and try to ensure a smooth transition at the time.

The BHP share price has had a choppy year, up just 3% in the past 12 months. Year to date, it has posted a loss of almost 10% since January 1.

The post BHP (ASX:BHP) share price jumps 4% on ‘global energy company’ deal appeared first on The Motley Fool Australia.

More reading

• Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider
• Woodside (ASX:WPL) share price climbing as megadeals signed off
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• Analysts name 2 ASX 200 blue chip shares to buy now
• BHP (ASX:BHP) and Woodside (ASX:WPL) shares on watch amid petroleum merger update

The author Zach Bristow 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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The S&P/ASX 200 Index (ASX: XJO) is enjoying a reasonably breezy day on the ASX boards so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 0.73% at 7,406 points. But one ASX 200 share is putting those numbers to shame. That would be the Australian Ethical Investment Limited (ASX: AEF) share price.

Australian Ethical shares are currently up 6.87% at $14.62 a share after closing at $13.65 yesterday afternoon and opening at a flat $14 this morning. The price went as high as $14.80 this morning, up nearly 8%.

So with this explosive move higher, you must be wondering what’s going on with Australian Ethical today. Is there a new announcement or update from this managed fund and super provider? A fresh dividend announcement? Perhaps a director has picked up a truckload of shares?

What’s happening with the Australian Ethical share price?

Well, unfortunately for anyone who wants a solid answer, there isn’t one to give. It’s unclear why this company is jumping so decisively higher today.

Yes, there has been no news or announcements out of Australian Ethical this Tuesday. In fact, the last update the company gave was last Thursday. And that was just some routine ASX paperwork. There have been no public director or major shareholder transactions this week either. Or any announcements related to this company’s dividend.

One of the last major updates this company gave was its quarterly funds under management (FUM) update last month. As we covered at the time, the company announced a record quarterly inflow of $160 million, resulting in a record $6.54 billion in total FUM. But that was a while ago now, and investors have had plenty of time to digest those numbers.

And ASX fund managers or even financials shares are certainly not enjoying a sector-wide banquet today. As an example, Australian Ethical’s fellow fund managers such as Magellan Financial Group Ltd (ASX: MFG) and Platinum Asset Management Ltd (ASX: PTM) are both in the red so far today. The major ASX financials shares (ie, the ASX banks) are having a decent day today. But all four are up between 1 and 2% so far, nothing compared to Australian Ethical.

It’s what we think we know that just ain’t so…

So what conclusions can we draw? Well, only that we don’t know for sure why Australian Ethical is enjoying such a strong day today,

It’s possible a large and/or institutional investor noticed Australian Ethical shares fell close to 7% over last week and decided to load the boat. Perhaps an exchange-traded fund (ETF) needed to rebalance its holdings and picked up a large tranche of shares to do so.

Whatever the reason, there will be more than a few shareholders pleased with what today has given them. Not that this is anything out of the ordinary for this company. Remember, Australian Ethical is now up an eye-watering 199% in 2021 alone.

At the current Australian Ethical share price, this company has a market capitalisation of $1.65 billion, with a price-to-earnings (P/E) ratio of 148 and a dividend yield of 0.48%.

The post Why is the Australian Ethical Investment (ASX:AEF) share price surging 7% today? appeared first on The Motley Fool Australia.

More reading

• 2 great ASX shares to think about
• Top ASX shares to buy in November 2021
• The Australian Ethical (ASX:AEF) share price just hit a new all-time high

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. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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The AGL Energy Limited (ASX: AGL) share price has been struggling in November despite no news having been released by the company for more than 3 months.

In fact, the company’s stock hit a record low of $5.10 in intraday trade yesterday.

At the time of writing, the AGL share price has recovered to trade at $5.28, 0.86% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.73% today.

Let’s take a look at what the future might hold for AGL and its shares.

Could this be the future of the AGL share price?

The share price of AGL – Australia’s largest carbon emitter – has been suffering amid the release of the final consensus from more than 190 countries engaged with the COP26 UN Climate Conference.

The agreement was described by United Kingdom Prime Minister Boris Johnson as sounding the “death knell for coal power”.

That may have renewed pressure on AGL to back away from its coal-fired power stations.

According to reporting by The Age, on Monday, AGL chief operating officer Markus Brokhof told a conference he agrees COP26 outlined the world’s determination to ditch coal power. The Age quoted him as saying:

In general, it’s a clear sign [that] the energy industry, in particular the carbon-heavy industry, has to go.

The company already plans to shut down its NSW Liddell coal-fired power station in 2023. However, it’s not expecting to close its Loy Yang power station in Victoria until 2048.

That’s despite the majority of AGL shareholders voting in favour of the company providing new emissions reduction targets in line with the Paris Agreement at its annual general meeting (AGM). This occurred despite the company urging them not to. The AGL share price gained 2.9% on the day of its AGM.

So, what is AGL doing to sate investors’ demands for emission reductions?

Well, as most investors will be aware, one initiative is the company’s plan to split AGL in two.

One of the resulting halves, Accel Energy will walk away with AGL’s coal-fired assets.

The other, AGL Australia, will take its retail businesses. AGL Australia is expected to boast net-zero scope 1 and 2 emissions.

The company is also targeting net-zero operational emissions by 2050.

Whether that will be enough to ease the pressure on AGL is yet to be seen.

The AGL share price has fallen 13% in the past month. It is also 56% lower than it was at the start of 2021.

The post The AGL (ASX:AGL) share price has lost 8% so far this month. What’s next? appeared first on The Motley Fool Australia.

More reading

• The AGL (ASX:AGL) share price is at all-time lows. Here’s why this fundie still thinks it’s poor value
• Own AGL (ASX:AGL) shares? Is Australia’s biggest emitter taking climate change seriously enough?
• These ASX 200 shares could be set to face fresh pressure over climate action
• What is the current AGL (ASX:AGL) dividend payout ratio?
• What’s going wrong for the AGL (ASX:AGL) share price in November?

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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The Fortescue Metals Group Ltd (ASX: FMG) share price is climbing higher today, up 9.2% to $17.26 per share.

That’s well ahead of the 0.7% gain posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

So, what’s going on with the iron ore giant?

ASX 200 iron ore miners are in the green today

The answer to that question likely is revealed in the way I phrased it.

With no price-sensitive news from the company today, Fortescue shares look to be getting a healthy boost from a sharp increase in iron ore prices. Iron ore gained 4.3% overnight to trade at $US95.63 (AU$131) per tonne.

While Fortescue is leading the charge, fellow ASX 200 iron ore miners are also well into the green today.

The BHP Group Ltd (ASX: BHP) share price, for example, is up 4.5%. And shares in Rio Tinto Ltd (ASX: RIO) are up 4.4% at the time of writing.

Now, with today’s big leap, what can investors expect next for Fortescue?

That depends on who you ask.

As my Foolish colleague, James Mickleboro, wrote earlier today, “The team at Bell Potter continue to see a lot of value in the Fortescue share price. A recent note reveals that its analysts have a buy rating and $19.75 price target [over the next 12 months] on its shares.”

That’s some 14% above the current share price.

Goldman Sachs, on the other hand, has a decidedly different view, with a sell rating and $11.00 target on the Fortescue share price.

Fortescue share price snapshot

The Fortescue share price was performing strongly into July this year when iron ore was fetching record prices of some US$220 per tonne. Shares are down 34% since 29 July.

More recently, Fortescue shares have gained around 18% in the last month, even as the ASX 200 has slipped 0.5%.

The post What’s causing the Fortescue (ASX:FMG) share price to leap 9% today? appeared first on The Motley Fool Australia.

More reading

• 2 high-yielding ASX 200 dividend shares
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• Is the Fortescue (ASX:FMG) share price dirt cheap or overvalued?
• Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them

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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Plenty of S&P/ASX 200 Index (ASX: XJO) shares have the potential to pay investors attractive dividend yields over the next 12 months. This article is about two high-yielding ASX 200 dividend shares.

Analysts have had a guess at what the business is going to pay in dividends over the coming 12 months.

Investors for income may be interested to know about the below two high-yielding ASX 200 dividend shares:

Centuria Industrial REIT (ASX: CIP)

This is the Australia’s largest pure play industrial property real estate investment trust (REIT).

The business is currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG), which has a price target of $4.16 on the business. That suggests the analysts believe there’s still potential for a double digit capital increase over the next 12 months.

On Macquarie’s numbers, the ASX 200 dividend share is going to pay a distribution of 17.3 cents per unit in FY22 and 18.7 cents per unit in FY23. That translates into distribution yields of 4.6% and 5% respectively.

The aim of Centuria is to have a portfolio of high-quality industrial assets in key metro locations, underpinned by a quality and diverse tenant base.

It now has a portfolio of close to 80 properties worth more than $3.5 billion.

The fund manager, Jesse Curtis, said:

Centuria Industrial REIT continues to benefit from macro trends that increase demand for last mile industrial space within close proximity to large population catchments. Centuria Industrial REIT’s industrial portfolio is skewed towards these infill markets where increased tenant demand and limited supply opportunities is driving upward pressure on market rents.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is a large iron ore miners with multiple hubs in Western Australia, producing many millions of tonnes of iron ore.

In the first quarter of FY22, its iron ore shipments amounted to 45.6 million tonnes, which was up 3% year on year.

The broker Macquarie currently rates Fortescue as a buy, with a price target of $21. That’s a potential upside of over 20% over the next 12 months, if the broker is right.

Macquarie thinks that Fortescue could pay a dividend of $1.97 in FY22 and a dividend of $1.42 per share in FY23, which translates into grossed-up dividend yields of 16.5% and 11.9% respectively. The broker thought the quarterly update from the business was strong, aside from the lower iron ore price.

I’ve already mentioned the shipments from the quarterly update. Fortescue achieved a C1 cost of US$15.25 per wet metric (wmt), which was in line with the previous quarter. The business had net debt of US$175 million at 30 September 2021, which was after the US$4.7 billion payment of the FY21 final dividend and capital expenditure of US$744 million in the quarter.

Macquarie also notes the continuing development of Fortescue’s green credentials. Recent announcements includes a target to achieve net zero scope 3 emissions by 2040. Fortescue Future Industries has recently announced the development of a green energy and green hydrogen manufacturing industry in Gladstone, Queensland.

Based on Macquarie’s numbers, the Fortescue share price is valued at less than 10x FY23’s estimated earnings.

The post 2 high-yielding ASX 200 dividend shares appeared first on The Motley Fool Australia.

More reading

• Why ASX shares are still good value: fund manager
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• Is the Fortescue (ASX:FMG) share price dirt cheap or overvalued?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. 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 Macquarie Group 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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By now, most ASX investors would be pretty used to rising markets and higher ASX shares. The S&P/ASX 200 Index (ASX: XJO) has been trending sideways for several months. Even so, it’s still up a healthy 10.6% year to date so far. And an even healthier 12.7% over the past 12 months. And since the lows of last year’s COVID crash, the ASX 200 has climbed by more than 50%.

But today, COVID-era economic stimulus is slowly being dialled back. There is the prospect of higher interest rates in the medium term. And the ongoing waves of global COVID infections are still sadly rolling on. As such, many an investor might be wondering “where to next?” for ASX shares and the Australian (and global) share market.

Well, one fund manager has a few ideas.

Paul Xiradis, chief investment officer and executive chair at fund manager Ausbil, gave us some insights into where he sees the share market going next.

Fundie predicts strong FY22 and FY23 for ASX shares

Xiradis points out that 25 of the 32 sectors on the ASX “are expected to deliver positive EPS [earnings per share] growth in FY22, representing 80% of the market cap for the S&P/ASX 200″.

He went on to say the following:

We do not believe Australian equities are too expensive on average when you consider them in relative terms against where long-term interest rates are sitting, and their forward earnings growth outlook…

We look at the future earnings growth profile for equities when assessing if sectors are cheap or expensive. On a forward EPS growth view, we believe resources (specifically battery materials, electrification metals and some bulk commodities), banks, general insurance, structural growth leaders and some of the post-lockdown beneficiaries are offering strong potential EPS growth for FY22 relative to value…

Fundamentally, we believe the current economic environment is favourable for equities, and will be for the next year or so.

But FY22 only takes us to next July, which is less than 8 months away now. Luckily for investors, Xiradis is also bullish on FY23:

Our view is that FY23 earnings expectations will also be positive, with growth driven by a very strong post-Delta variant bounce-back, which will be evident in the final months of this calendar year, and will have duration into FY23.

Given the rapid progress on vaccines, we believe earnings growth is likely to surprise again.

At the end of the day, none of us can predict the future. And certainly not the future of the share market. However, many investors will no doubt be pleased with the predictions Xiradis has made and will be keeping their fingers crossed they come to pass.

The post Why ASX shares are still good value: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 high-yielding ASX 200 dividend shares
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Monday

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 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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With decarbonisation on many minds following the end of the United Nations’ COP 26, shares in the ASX battery metals and electrification sector are looking promising.

At least that’s what Ausbil chair, chief investment officer, and head of equities Paul Xiradis believes.

He states the sector is housing some compelling opportunities for strong financial year 2022 earnings among copper, nickel, lithium, and cobalt producing stocks.

Here are 5 battery materials shares he thinks look pretty good right now.

5 battery metal shares that could outperform

BHP Group Ltd (ASX: BHP)

According to Xiradis, Ausbil likes BHP for its exposure to the electrification sector.

While BHP is predominantly an iron ore, copper, and coal miner, the company also has a nickel branch.

The company recently signed an agreement with Prime Planet Energy & Solutions and Toyota Tsusho Corporation to supply nickel for lithium-ion batteries.

The BHP share price is trading at $38.08 at the time of writing, up 4.1%.

OZ Minerals Limited (ASX: OZL)

Another battery metal share Xiradis expects to perform well in financial year 2022 is copper producer, Oz Minerals.

Oz Minerals recently announced it’s in line to meet its full-year copper production guidance of between 120,000 and 145,000 tonnes.

Right now, a holding in Oz Minerals will cost an investor $26.24 per share.

Orocobre Limited (ASX: ORE)

Xiradis also notes that lithium producer Orocobre appears to be a battery metals share gearing up to post strong earnings for financial year 2022.

The company recently merged with formerly ASX-listed lithium producer Galaxy Resources Ltd.

Its stock is swapping hands for $9.82.

IGO Ltd (ASX: IGO)

All-rounder battery metals producer IGO is also set to outperform this financial year, according to Xiradis.

IGO owns and operates the Nova nickel-copper-cobalt operation and is invested in a lithium-focused joint venture.

Shares in the company are currently going for $10.33 each.

Lynas Rare Earths Ltd (ASX: LYC)

The final battery metals share Xiradis is expecting to post good returns for financial year 2022 is Lynas Rare Earths.

The company is the only large-scale rare earths producer outside of China, operating a deposit in Western Australia.

The company’s share price is $8.68 right now.

The post Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• Analysts name 2 ASX 200 blue chip shares to buy now
• BHP (ASX:BHP) and Woodside (ASX:WPL) shares on watch amid petroleum merger update
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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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Fintech Beforepay Group Limited (ASX: B4P) has released its prospectus, marking the start of its much-anticipated initial public offer (IPO).

At $3.41 per share, the IPO will open for applications at the end of the month and the shares will commence standard trading on the ASX on 17 January.

The business name draws obvious comparisons to market darling Afterpay Ltd (ASX: APT), which is due to disappear from the ASX by March. 

After a spectacular publicly listed life that saw the shares multiply more than 100 times since IPO, the buy now, pay later provider will be absorbed into US giant Square Inc (NYSE: SQ).

In contrast, Beforepay is effectively a payday lender, allowing users to access money before their actual pay packet lands.

As The Motley Fool previously reported, the business makes money from a 5% transaction fee and users can pay off the debt from the next paycheque or over 4 weeks.

Former Westpac Banking Corp (ASX: WBC) chief and Beforepay chair Brian Hartzer said the company offers a great alternative for Australians needing credit.

“Beforepay’s business model creates a strong value proposition for customers looking to take control of their finances without turning to credit cards or other forms of revolving debt.”

Burning cash for growth

The startup only started taking customers in August 2020, but already boasts 125,500 active users.

“Loss rates and costs continue to decrease and growth is increasing in both the acquisition and retention of a well-diversified customer base of working Australians,” Hartzer said.

“This demonstrates the broad appeal of the product and a sizable market opportunity.”

Make no mistake, Beforepay is currently burning cash in an early growth stage. It raked in $4.5 million of revenue for the 2021 financial year, while copping a $19.6 million net loss after tax.

The ASX listing will raise $35 million while giving the company a market capitalisation of $158.4 million.

The company was founded by former chief executive Tarek Ayoub, who in May handed over the reins to another former Westpac staffer, Jamie Twiss.

Ayoub will still hold 5.5 million shares after the IPO, representing an 11.8% or $18.8 million stake.

“The IPO will enable us to support more customers and to accelerate our growth, both in Australia and potentially overseas,” said Twiss. 

“I’m proud of the scale we’ve achieved in just over 12 months. I believe that we’ve only just scratched the surface in terms of growth and have the right team to execute on our strategy going forward.”

The post Beforepay (ASX:B4P) just launched its IPO appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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