Tag: Motley Fool

  • 5 things to watch on the ASX 200 on Friday

    Investor sitting in front of multiple screens watching share prices

    On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and charged notably higher. The benchmark index rose 1% to 7,370.2 points.

    Will the market be able to build on this on Friday? Here are five things to watch:

    ASX 200 expected to rise

    The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning. This follows a very strong night on Wall Street, which saw the Dow Jones jump 1.5%, the S&P 500 rise 1.2%, and the Nasdaq storm 1%.

    Premier Investments rated as a sell

    The Premier Investments Limited (ASX: PMV) share price could be overvalued according to analysts at Goldman Sachs. The retail conglomerate’s results fell short of Goldman’s estimates for sales, earnings, and dividends. In addition to this, the broker has concerns over its valuation. The broker has a sell rating and $23.40 price target on its shares.

    Oil prices jump

    Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.4% to US$73.21 a barrel and the Brent crude oil price is up 1.35% to US$77.21 a barrel. Traders were buying oil after growing fuel demand and a draw in U.S. crude inventories led to tight supplies.

    Dividends being paid

    A number of popular shares will be paying their latest dividends today. Among the shares paying dividends are Blackmores Limited (ASX: BKL), IRESS Ltd (ASX: IRE), QBE Insurance Group Ltd (ASX: QBE), Perpetual Limited (ASX: PPT), and Woodside Petroleum Limited (ASX: WPL).

    Gold price sinks

    Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult day after the gold price dropped. According to CNBC, the spot gold price is down 1.8% to US$1,746.50 an ounce. Concerns that the US Fed could increase rates sooner than expected is weighing on gold.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

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  • 2 ASX shares that could be buys for both growth and dividends

    Stack of coins rising

    Some ASX shares are known for being growth-focused whilst others are picked because of their dividend yields.

    The combined return of dividends and the capital growth is called the total return. A few companies may be able to generate good returns on both fronts of dividends and growth.

    These two ASX shares are ones that may be able to deliver:

    Bapcor Ltd (ASX: BAP)

    Bapcor is a leading car parts business that operates under a number of different brands and businesses including Burson, Autobarn, Autopro, Truckline and Midas.

    Current conditions have helped drive profit higher. The lack of international travel has led to more vehicle holidays, increasing the demand for Bapcor products because of higher wear and tear on vehicles. There has also been a strong market for second hand cars, which may mean a higher demand for replacement products. Retail conditions were also strong in FY21.

    The strong demand led to revenue growth of 20.4% to $1.76 billion, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 28.8% to $279.5 million and pro forma net profit after tax (NPAT) went up 46.5% $130.1 million.

    It added a net 31 new company locations throughout its network over FY21. Combined with the 25% investment in Tye Soon (which added 60 locations), it now has around 1,100 locations throughout Australia, New Zealand and Asia.

    The ASX share is investing to drive the long-term success of the ASX share. The new distribution warehouse at Tullamarine in Victoria has been completed with retail having successfully transferred into the facility and a new distribution centre for Queensland has been approved. It’s also investing in its ‘digital transformation’, including its new Autobarn e-commerce platform and business to business platforms in Australia, Thailand and New Zealand.

    Bapcor’s dividend was increased by 14.3% to 20 cents per share in FY21. That equates to a grossed-up dividend yield of 3.8%.

    Brickworks Limited (ASX: BKW)

    Brickworks is an ASX share that has a few different segments.

    It has a variety of building products including bricks, paving, masonry, roofing, precast and so on in Australia. The company also has brickmaking operations in the US after making a few acquisitions.

    Brickworks has a 50% market share of an industrial property trust alongside Goodman Group (ASX: GMG) which is steadily building an impressive portfolio of buildings like distribution centres.

    Finally, Brickworks owns a large shareholding of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Brickworks has owned these Soul Patts shares for decades.

    Brickworks has maintained or increased its dividend every year since 1976.

    The ASX share just reported its FY21 result, which included a final dividend of 40 cents per share, an increase of 3%. That brought the full year dividend to 59 cents per share, an increase of 3%.

    In that FY21 result, whilst total revenue fell 6% to $890 million, underlying earnings before interest and tax (EBIT) increased 86% to $383 million and underlying net profit after tax (NPAT) jumped 95% to $285 million.

    A key part of the profit growth came from the property trust value rising by another $184 million, helped by strong structural tailwinds. This included a $149 million of revaluation gains. After including debt, Brickworks’ share of the net assets was $911 million. The rapid growth in online shopping has increased the importance of well-located distribution hubs and “sophisticated supply chain solutions”.

    The ASX share says that it’s in a strong position, with conservative gearing and a diversified portfolio of attractive assets.

    At the current Brickworks share price, it has a grossed-up dividend yield of 3.4%.

    The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bapcor right now?

    Before you consider Bapcor, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bapcor wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company 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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  • 3 fantastic ASX shares for buy and hold investors

    close up of pink alarm clock against blue background

    If you’re on the lookout for buy and hold options, then the three ASX shares listed below could be worth a closer look.

    All three shares have long runways for growth over the next decade, which could make them good candidates for long term investments.

    Here’s what you need to know about them:

    Altium Limited (ASX: ALU)

    Altium is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platform. The company also has a number of complementary businesses such as the NEXUS workflow solution and the Octopart search engine. Over the last few years, Altium has carved out a leading position in this growing market. It is now aiming to dominate it. Management expects this to lead to the doubling of its revenue between now and FY 2026.

    Kogan.com Ltd (ASX: KGN)

    Kogan is Australia’s leading ecommerce company. While FY 2021 was a very disappointing year due to inventory issues, lessons have been learned and it is now time to look to the future. And that future appears very positive for Kogan. This is due to the company’s strong market position, growing private label offering, recent acquisitions, and the structural shift to online shopping.

    PointsBet Holdings Ltd (ASX: PBH)

    PointsBet is a sports betting company that has been growing at a rapid rate over the last couple of years thanks to the increasing popularity of mobile sports betting and its US expansion. For example, in FY 2021, the company delivered a 228% increase in turnover to $3,781.4 million. This was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321. The good news is that it still has a massive market opportunity in the US to grow into over the next decade.

    The post 3 fantastic ASX shares for buy and hold investors appeared first on The Motley Fool Australia.

    Should you invest $1,000 in PointsBet right now?

    Before you consider PointsBet, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PointsBet wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 Altium, Kogan.com ltd, and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why the Santana (ASX:SMI) share price rocketed 40% today

    share price rising

    The Santana Minerals Ltd (ASX: SMI) share price ended the day at a 4 month high following strong drilling results.

    At Thursday’s closing bell, Santana finished up 40.91% to 15.5 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) settled 1.15% higher to 7,681.3 points.

    What were the results?

    In its latest release to the ASX, Santana reported significant assay results from the 100% owned Bendigo-Ophir Project.

    The company has been conducting its drilling program since November 2020 at four Rise and Shine Shear Zone (RSSZ) deposits. It hopes to upgrade the mine’s category to Inferred Gold Resources. This states that the mineral content can be estimated with a low level of confidence.

    Santana’s drill hole (MDD014) intersected 21.7 metres at 5.7 grams per tonne of gold from 174.3 metres at the northern extent of the Rise and Shine (RAS) deposit. This included:

    • 5.7 metres at 11.19 grams per tonne of gold from 174.3 metres; and
    • 4 metres at 12.60 grams per tonne of gold from 187.0 metres.

    The drilling confirmed high-grade mineralisation, extending at least 100 metres further down from the previously reported high-grade mineralisation in MDD007.

    Assays from drill holes MDD011, MDD012, MDD013 and MDD014 are still waiting to be received.

    The company advised that diamond drilling is continuing northwards to further fast-track additional gold resources with a focus on down-plunge extensions.

    Santana executive director, Dick Keevers commented on the positive results:

    This high-grade gold intersection in diamond drill hole MDD014 at the top of the mineralisation over 21.7 meters of partial assays urgently completed, has demonstrated that high-grade gold zones are common at RAS, where further drilling in progress will determine their geological continuity.

    Santana share price summary

    Despite today’s massive gain, Santana shares have lost around 30% over the past 12 months. Although when looking at year-to-date, its shares are slightly better, just below 20%.

    Santana commands a small market capitalisation of roughly $12.54 million and has approximately 114 million shares on its books.

    The post Why the Santana (ASX:SMI) share price rocketed 40% today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Santana right now?

    Before you consider Santana, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santana wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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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  • Eastern Iron (ASX:EFE) share price leaps 20% today and 50% in a week

    Man flies flat above city skyline with rocket strapped to back

    The Eastern Iron Limited (ASX: EFE) share price soared into the green during afternoon trade to finish the session at 4.7 cents.

    That’s a 20.5% jump on the opening price and well ahead of the S&P/ASX 200 index (ASX: XJO) which climbed 1%.

    Eastern Iron shares are on the move despite no market-sensitive news from the company today.

    Let’s take a closer look at what’s up.

    What’s pushing the Eastern Iron share price lately?

    The Eastern Iron share price has been rising since the company announced a strategic placement and equity raising last week.

    The placement of $1.05 million was made to Ya Hua International Investment and Development Co Ltd. As a result, it will become a substantial shareholder of Eastern Iron.

    In addition to this placement, another tranche of $2.52 million will be placed to sophisticated and institutional investors, according to the release.

    As such, Eastern Iron is seeking to raise an additional $3.57 million before costs. Funds raised from both offerings will provide the company with financing to expedite existing projects.

    It also positions the company well to develop further lithium projects with Ya Hua and provides a financial commitment to the pair’s strategic relationship.

    Investors have bought enthusiastically on the news and driven the Eastern Iron share price 51% higher over the week.

    A bit more on Eastern Iron

    Eastern Iron is in the iron ore exploration business. The company focus is developing resources at its flagship project, the Nowa Nowa Iron project in Victoria.

    Eastern Iron was incorporated in 2007 and it was listed on the ASX in 2012 at 11.3 cents.

    Even though it is an iron ore specialist, it appears to be making a pivot away from the now-struggling commodity.

    The Eastern Iron share price took off on 6 September when the company announced another venture with Ya Hua to acquire and develop lithium projects.

    The Eastern Iron share price has ballooned by 370% in just a month.

    The post Eastern Iron (ASX:EFE) share price leaps 20% today and 50% in a week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Eastern Iron right now?

    Before you consider Eastern Iron , you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Eastern Iron wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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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  • Top broker sees 14% upside in the TechnologyOne (ASX:TNE) share price

    smiling man holding phone technology

    It was a good day for the TechnologyOne Ltd (ASX: TNE) share price on Thursday.

    The enterprise software company’s shares ended the session over 2% higher at $11.87.

    This latest gain means the TechnologyOne share price is now up over 40% in 2021.

    Why did the TechnologyOne share price push higher today?

    Investors were bidding the TechnologyOne share price higher today in response to the release of a positive broker note out of Bell Potter.

    According to the note, the broker has retained its buy rating and lifted its price target on the company’s shares to by 8% to $13.50.

    Based on the current TechnologyOne share price, this suggests there’s still 14% upside over the next 12 months.

    What did the broker say?

    The broker has updated its forecasts to reflect the recent acquisition of Scientia. While there are no changes to its FY 2021 estimates, it has upgraded its earnings estimates in FY 2022 and FY 2023 modestly.

    Combined with market movements and time creep, this led to the increase in Bell Potter’s price target for the TechnologyOne share price.

    Why is Bell Potter bullish?

    The note reveals that Bell Potter is expecting a strong full year result from TechnologyOne in November.

    It commented: “Technology One has a September year end so will report its FY21 result in late November. The full year result tends to be a catalyst for the share price – and we expect no different this year – as the second half result tends to be stronger both in terms of earnings and cash flow.”

    “We forecast a result slightly above the middle of the guidance range but do not rule out a result closer to the top end given the good 1HFY21 result and positive outlook for 2HFY21. We also see the potential for strong SaaS ARR growth above the 35% target provided by the company at the 1HFY21 result,” it added.

    Bell Potter has pencilled in a net profit after tax of $73.8 million for FY 2021, up 17.3% year on year.

    Positively, it expects this strong form to continue and is forecasting further growth in the years that follow. Its analysts are expecting a net profit of $85.3 million in FY 2022 and then $99 million in FY 2023.

    All in all, the broker appears to believe this and its positive longer term growth outlook makes the TechnologyOne share price good value at the current level.

    The post Top broker sees 14% upside in the TechnologyOne (ASX:TNE) share price appeared first on The Motley Fool Australia.

    Should you invest $1,000 in TechnologyOne right now?

    Before you consider TechnologyOne, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and TechnologyOne wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

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

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  • ASIC enquiry costs Mosaic Brands (ASX:MOZ) $2.7 million

    sad, dejected person looking at document with laptop and cup of tea nearby

    Australia’s corporate watchdog has revealed that its enquiries prompted Mosaic Brands Ltd (ASX: MOZ) to provision an extra $2.7 million in its books for the 2021 financial year.

    Investors apparently didn’t mind too much on Thursday, with Mosaic shares shooting up 8.4% to trade at 58 cents mid-afternoon.

    The fashion retail conglomerate, which owns brands such as Katies, Millers, Rockmans, Noni B and Rivers, put aside $5.6 million in the 2020 financial year as a ‘lease make good’ provision.

    A lease make good provision is money set aside to restore a rented property back to a certain condition at the end of the lease.

    According to the Australian Securities and Investments Commission (ASIC), it raised concerns to Mosaic that the $5.6 million was not enough.

    “The adequacy of provisions to meet obligations is important in providing useful and meaningful information to investors and other users of financial reports.”

    $2.7 million added to Mosaic’s provisions

    ASIC took credit for Mosaic increasing the provision to $8.3 million in the just-reported 2021 financial year results.

    The Motley Fool has contacted Mosaic Brands for comment.

    The commission reminded the market that the directors of a company were primarily responsible for the financial report.

    “Companies must have appropriate processes, records and analysis to support information in the financial report,” stated ASIC.

    “Companies should also apply appropriate experience and expertise, particularly in more difficult and complex areas of accounting policies and estimates.”

    This is not the first time Mosaic Brands has been in trouble with the authorities this year.

    In May, the company paid a $630,000 penalty after confessing to making misleading claims about its hand sanitiser and face mask products.

    According to the Australian Competition and Consumer Commission (ACCC), those offences happened at the peak of the first wave of COVID-19 between March and June last year.

    NoniB’s sanitiser claimed it contained 70% alcohol, Millers’ sanitiser claimed 75% and a third product sold online claimed it was “WHO-approved”. 

    All of those claims were found to be false.

    “Independent testing of the hand sanitisers commissioned by the ACCC found that one of the sanitisers tested contained an alcohol content of 17% and another had an alcohol content of 58%,” ACCC deputy chair Delia Rickard said at the time.

    The post ASIC enquiry costs Mosaic Brands (ASX:MOZ) $2.7 million appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

    More reading

    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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  • Megaport (ASX:MP1) share price charges higher on bullish broker note

    A man is connected via his laptop or smart phone using cloud tech, indicating share price movement for ASX tech shares and asx tech shares

    The Megaport Ltd (ASX: MP1) share price was a positive performer again on Thursday.

    The elasticity connectivity and network services interconnection provider’s shares finished the day almost 1% higher at $17.71.

    This means the Megaport’s are up nearly 4% over the last three trading sessions.

    Why is the Megaport share price rising this week?

    The catalyst for the rise in the Megaport share price this week has been a broker note out of Citi.

    According to the note, the broker has initiated coverage on the company’s shares with a buy rating and $20.00 price target.

    Based on the current Megaport share price, this implies potential upside of 13% even after its gains this week.

    What did the broker say?

    Citi is feeling bullish on the Megaport share price due to its belief that the company is well-positioned to deliver very strong revenue growth in the coming years.

    And while it acknowledges that its shares are not cheap, it believes its growth profile justifies the premium.

    Citi explained: “We see Megaport as a play on multiple trends, specifically increasing multi-cloud adoption, and infrastructure and computing getting more distributed as well as increasing digitisation. The recent introduction of Megaport Virtual Edge (MVE) expands Megaport’s addressable market, which along with push to leverage channel partners to go to market is expected to deliver strong growth over the medium-term.”

    “At 23x FY22e revenue (CitiE), we acknowledge that a lot of the growth is priced in, however with a forecast 3 year revenue CAGR of 40%+ and operating leverage expected to deliver software like margins (CitiE: long term EBITDA margins of 50%), we still see upside to current levels. One risk to consider is that MVE could take longer to gain traction given a more complex sale and dependency on SD-WAN partners,” it added.

    Overall, the Megaport share price may be up 25% in 2021, but this broker doesn’t believe it is too late to invest.

    The post Megaport (ASX:MP1) share price charges higher on bullish broker note appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Megaport right now?

    Before you consider Megaport, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Megaport wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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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  • Iron ore price surges 17% as Evergrande fears ease further

    investor wearing a hard hat looking excitedly at a mobile phone representing rising iron ore price

    The iron ore price and the S&P/ASX 200 Index (ASX: XJO) are flying today after fears of an impending collapse of the Chinese property developer, China Evergrande Group subsided in the market.

    Overnight, the material required for steel manufacturing rocketed 16.8% to US$108.70 per tonne. The ASX 200 also had a rip-roaring day and was trading up 1.18% just before the market close this afternoon.

    Let’s take a closer look at today’s news.

    Evergrande staves off collapse … for now

    The big boost in the iron ore price was likely spurred by news that Evergrande would make good on the interest payment it owes bondholders today. Many analysts had been forecasting a possible default, putting pressure on iron ore prices.

    As reported on Tuesday, Evergrande is due to pay roughly US$83.5 million (AU$116 million) of interest on its 5-year dollar bond today. Since then, the company has pledged to make a bond payment this week but did not specify how much interest would be paid on it.

    This has allayed fears that the company could collapse and cause widespread damage to the global economy.

    As my Motley Fool colleague Bernd has already reported today, AMP Capital Chief Economist, Shane Oliver doesn’t expect Evergrande is about to go through its own “Lehman moment” (referring to the collapse of Lehman Brothers in the US during the GFC in 2008). He says Chinese authorities are unlikely to let that happen.

    At the moment, they want to send a message to property developers not to take on too much debt, he believes.

    Oliver says:

    At the end of the day, they will support their economy. Not with a bailout for China Evergrande, but some sort of restructuring … which minimises the fallout.

    Iron ore price snapshot

    Despite the rally in iron ore prices overnight, the commodity hasn’t had it good in recent times. Since the beginning of the year, the price of iron ore has fallen 35%.

    In fact, since peaking at over US$220 per tonne, the iron ore price has more than halved.

    The BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX:FMG) share price have all suffered heavy falls that roughly correspond with the falling iron ore price.

    BHP shares are 14% lower in just a month. Rio Tinto shares are down 8% and FMG shares are down 21%.

    The post Iron ore price surges 17% as Evergrande fears ease further appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

    More reading

    Motley Fool contributor Marc Sidarous 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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  • Why Zip (ASX:Z1P) and these growth shares could be buys

    a happy investor with a wide smile points to a graph that shows an upward trending share price

    With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

    To narrow things down, I have picked out three options that are highly rated to consider:

    Pushpay Holdings Group Ltd (ASX: PPH)

    The first growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Thanks to the digitisation of the church, the shift to a cashless society, and its industry-leading technology, Pushpay has been growing at a rapid rate in recent years. For example, in FY 2021 the company reported a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million. Looking ahead, management is forecasting further growth in FY 2022 and is planning to expand into a new market. It also just announced the acquisition of Resi Media for US$150 million. This will allow Pushpay to offer digital streaming options to its customers.

    Jarden currently has a buy rating and NZ$2.10 (A$2.00) price target on its shares.

    Temple & Webster Group Ltd (ASX: TPW)

    Another growth share to consider is Temple & Webster. Australia’s leading online furniture and homewares retailer has also been growing at a strong rate over the last few years. This has been driven by the shift to online shopping and its strong market position. And while Temple & Webster’s growth may moderate now that COVID tailwinds are easing, management remains very confident in its long term growth prospects. This is due to its strong position in a category which is only really beginning to see sales shift online.

    Morgan Stanley is positive on the company’s outlook. It currently has an overweight rating and $16.00 price target on its shares.

    Zip Co Ltd (ASX: Z1P)

    A final ASX growth share to look at is Zip. This buy now pay later (BNPL) provider is another company that has been growing at a strong rate. This has been underpinned by its international expansion, the increasing popularity of the payment method, the shift online, and declining credit card use. The good news is that there’s still a massive global market opportunity for Zip to grow into. This could include the Indian market. This week the company made a strategic investment in India via ZestMoney. Management notes that the India market is forecast to have US$300 billion+ in BNPL payment volume by FY 2026.

    Analysts at Citi currently have a buy rating and $7.95 price target on its shares.

    The post Why Zip (ASX:Z1P) and these growth shares could be buys 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 shares of and has recommended PUSHPAY FPO NZX, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group 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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