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The Dubber Corp Ltd (ASX: DUB) share price is off to a strong start, up 3% in early morning trade.

Below, we take a look at the cloud platform service provider’s acquisition announcement that looks to be driving this morning’s action.

What acquisition did Dubber announce?

Dubber’s share price is rising after the company reported it has acquired technology group Notiv.

Notiv, based in Brisbane, develops “cloud-native AI-based products” able to do transcripts of meetings, as well as provide summaries, signals and actions.

Dubber acquired Notiv from United States company Pinch Labs Inc for a total price of $6.6 million. The company will pay $5.15 million in cash once the deal is complete. The remaining $1.15 million will be paid via the issue of 386,277 Dubber shares at an issue price of $3.75.

According to the announcement, Notiv’s key management and employees will stay on following the transaction. This includes the company’s 2 co-founders, Chris Raethke and Iain McCowan.

Commenting on the acquisition, Dubber’s CEO Steve McGovern said:

One of our fundamental beliefs is that artificial intelligence has a part to play as a standard feature of every call and conversation… With Notiv, Dubber will now have the ability to automatically take notes and create action items on every call. We are confident that our telecommunications carrier and service provider partners will see enormous potential for revenue-generating value-added services for their customers at scale…

The integration of the Notiv business is accretive for both parties in that Dubber can expose the fantastic capability of the Notiv offering to a global customer base and the Notiv team can develop a continuous stream of revenue-generating services for Dubber’s addressable market.

Dubber share price snapshot

The Dubber share price has been a standout performer in 2021, up 150% year-to-date. That compares to a gain of 10% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, Dubber shares have gained 16%.

The post Why the Dubber (ASX:DUB) share price is leaping higher today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation. The Motley Fool Australia owns shares of and has recommended Dubber 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.

At first glance, it doesn’t even seem to be a contest. Shares of e-commerce giant Amazon (NASDAQ: AMZN) have not only outperformed those of brick-and-mortar rival Walmart (NYSE: WMT) in recent years, but as of last month — according to numbers crunched by The New York Times — people now spend more at Amazon than at the more traditional retailer. The pandemic’s clearly been a boon for the online “everything store.”

However, if you think it’s just another clear sign that nothing can stand in the way of the Amazon juggernaut, you may be a bit premature in making that conclusion. Walmart has made a small dent in Amazon Prime’s reach by showing respectable growth of its own comparable subscription-based program, Walmart+.

The service may be steering some of Amazon’s current and prospective customers toward the store-centered company. And more of the same could be coming.

32 million and counting

Take the following reported number with at least a small grain of salt, as Walmart has neither confirmed nor denied it. But Deutsche Bank‘s recent estimate that there are 32 million U.S. households subscribed to Walmart+ is probably in the right ballpark. For perspective, Amazon Prime boasts more than 200 million Prime subscribers, although that’s a worldwide figure.

It’s a solid start for Walmart’s subscription service that only launched a year ago, and it doesn’t even include access to a large library of digital entertainment content as Amazon Prime does. Rather, the key selling feature of Walmart+ is unlimited free deliveries of online orders fulfilled by nearby stores — sometimes the very same day — at a Prime-like price of $12.95 per month or $98 per year. It seems to be enough for some consumers, particularly with the offer sweetened by fuel discounts.

The appeal of Walmart+ in a market where Amazon Prime is also available is obvious: speed and convenience, with greater access to perishable foods. Amazon is able to make same-day deliveries in certain markets. But it can’t offer same-day or next-day deliveries of as many high-demand goods that Walmart can thanks to Walmart’s network of more than 5,000 U.S. stores as a means of fulfilling online orders.

A study commissioned by ACI Worldwide and PYMNTS.com quantifies the idea, indicating that ease and convenience are the top concerns for 76% of online grocery shoppers right now, topping risks related to COVID-19. COVID-19 was only a concern for 59% of the 2,342 adults surveyed. Notably, 94% of respondents said they will shop in-store at least some of the time. That’s a detail that gives Walmart a serious leg up on Amazon, which is not a major retailer of groceries or other consumer goods.

Tiptoeing onto Amazon’s turf

There are a couple of additional details buried deeper in Deutsche Bank’s survey results that cast a doubt on just how well Amazon will be able to attract and retain Prime subscribers, who are known to spend at least twice as much on the site as non-Prime consumers do.

One of these nuances is, 86% of Walmart+ subscribers say they’re also Prime members.

That makes sense on the surface. Serious online shoppers likely find paying for both similar services still ultimately pays for itself. Both retailers offer a lot of items, but neither offers everything a consumer may need. If money gets tight, though, consumers may narrow such services down to one. Given the swell of cheap on-demand/streaming services now available, Prime’s content library has never been easier or more affordable to give up.

The other noteworthy nuance of the survey’s results is the type of customers Walmart+ is attracting. These consumers tend to be at the upper end of the income range. Deutsche Bank says 33% of current Walmart+ members live in households earning in excess of $100,000 per year. Only 28% of Prime’s subscribers can say the same.

Simply put, Walmart is making inroads with a crowd that to date has almost exclusively been Amazon’s. Another nicety like access to on-demand content could accelerate this penetration.

Location, location, location

Last month The Wall Street Journal reported that Amazon is mulling the development of its own full-sized store network capable of selling goods like clothing, household goods, and consumer electronics. The company itself has neither confirmed nor denied the Journal‘s suggestion, which was based on comments from unnamed “people familiar with the matter.” But given the early apparent success of Walmart+, a larger store network that looks a bit like Walmart’s might be more of a must-do for Amazon than a want-to.

As it stands now, Amazon manages a few dozen convenience-type and grocery stores, several conventional bookstores, and even more so-called “4-star” stores that feature some of the website’s best-selling items. Don’t forget that Amazon is also now parent to Whole Foods Market, which is a chain of more than 500 North American conventional grocery stores.

That’s still nowhere near Walmart’s geographic reach, however. The big brick-and-mortar retailer’s got more than 5,000 stores doubling as mini-warehouses that it’s leveraging to meet consumers’ desire for a combination of speed, convenience, and local in-store shopping.

Moral of the story: Walmart won’t destroy Amazon, but it could certainly create a brisk headwind for the company.

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

The post Here’s why Amazon needs retail stores right now appeared first on The Motley Fool Australia.

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James Brumley has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Ausnet Services Ltd (ASX: AST) share price has soared into the green on Monday after the electricity distributor made a key announcement earlier.

Ausnet stated that Brookfield Asset Management has made a non-binding offer to acquire all of its issued shares at $2.50 per share.

The Ausnet share price opened 20% higher at $2.38 this morning.

Let’s investigate further.

What was in Ausnet’s announcement?

Ausnet advised that it received an “unsolicited, indicative, non-binding and conditional proposal” from Brookfield to acquire all of its issued shares, by way of a scheme agreement.

Brookfield put the offer forward at $2.50 per share, which signifies a 26% premium to Ausnet’s closing price of $1.98 on Friday, and a 35% premium to its 30-day weighted average share price, as per the release.

The revised proposal was made on behalf of an infrastructure fund that Brookfield manages and follows two previous conditional proposals from Brookfield. The first was on 30 August for $2.35/share, and the subsequent offer was $2.45/share.

So it appears Brookfield is hungry for Ausnet’s $11 billion of 100% owned and operated assets – which would likely slot into its diversified infrastructure portfolio, a behemoth with $95 billion in assets under management (AUM).

The indicative proposal is subject to several conditions, including due diligence, regulatory approval and unanimous support from Ausnet’s board.

Ausnet said in the announcement:

Following careful consideration and consultation with advisers, the board of Ausnet considers that it is in the best interest’s of Ausnet’s shareholders to engage further with Brookfield on the indicative proposal.

Accordingly, Ausnet has decided to provide Brookfield with the opportunity to conduct due diligence on an exclusive basis to enable it to put forward a binding offer.

If Brookfield makes the offer binding at $2.50 per share, the current intention of Ausnet’s board is to “unanimously recommend that shareholders vote in favour of the proposal”.

The company said a “superior proposal” was not out of the question should another party become interested in Ausnet’s assets.

Considering Brookfield’s size – it has US$626 billion in AUM – and aggressive deal-making style, it could be an interesting race if that were to happen.

Investors appear to have bought on the news today, pushing the Ausnet share price higher.

Ausnet shares are now exchanging hands at $2.34 apiece, up 18% from the market open.

Ausnet share price snapshot

The Ausnet share price has had a challenging year to date, posting a return of 13% since January 1.

It has faced headwinds over the past 12 months too, having climbed just 6.5% over this time.

These returns have lagged the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% over the past year.

The post Ausnet (ASX:AST) share price rockets 20% on fresh takeover bid appeared first on The Motley Fool Australia.

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• The AGL (AGL) share price hit multi-decade lows last week. What’s next?
• Why the Lake Resources (ASX:LKE) share price is frozen
• Sydney Airport (ASX:SYD) board recommends revised takeover proposal. What could this mean for shareholders?
• What’s going wrong for ASX cannabis shares lately?
• Top broker gives its verdict on the Orocobre (ASX:ORE) share price

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 AGL Energy Limited (ASX: AGL) share price is continuing to be hit by investors dumping their shares. The company’s shares sunk to new multi-decade lows last week. This comes after Australia’s largest electricity provider released its full-year results for the 2021 financial year.

At the time of writing, AGL shares are adding to their losses, down another 1.09% to $5.46.

What’s weighing down the AGL share price?

AGL previously noted it has been struggling with current conditions of the national electricity market along with unstable electricity prices.

A sharp decline in wholesale prices for electricity and renewable energy certificates weighed down the company’s 2021 financial performance. The company regarded last year as one of the toughest energy markets on record.

The result ended in AGL reporting a 33.5% drop in profits to $537 million on the prior corresponding period. This is a stark contrast from when it registered a bottom-line figure of $1,040 million in FY19.

That’s a mammoth fall of around 48% in underlying net profit in just 2 short years, before the emergence of COVID-19.

Furthermore, the soon-to-close Liddell coal-fired power station has put a financial strain on the company. AGL plans to transform the site with a hydro and solar energy facility after Liddell’s shutdown in 2023.

The Australian Shareholders Association (ASA) announced its intention to vote in favour of the company introducing emissions targets. Currently, AGL does not have any decarbonisation targets in line with the Paris Agreement, however, the ASA hopes to change this.

AGL has recommended shareholders vote against the resolution which is being put to its annual general meeting on Wednesday.

What’s next for the company?

AGL is planning to split into two separate energy businesses in the fourth quarter of FY22.

AGL Energy will become Accel Energy and demerge AGL as a separately listed entity via a capital reduction.

Accel Energy is set to become Australia’s largest electricity generator, focused on supplying 20% of the national electricity market. In addition, the spin-off will redevelop its sites as low-carbon industrial energy hubs.

On the other hand, AGL will be Australia’s largest multi-product retailer, providing flexible electricity generation and storage needs.

Year-to-date, the AGL share price has plummeted in value, losing more than 53%. When factoring in the past 12 months, its losses are more than 61%.

The post The AGL (AGL) share price hit multi-decade lows last week. What’s next? appeared first on The Motley Fool Australia.

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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 Lake Resources N.L. (ASX: LKE) share price won’t be going anywhere on Monday after the company requested a trading halt.

What’s the trading halt for?

The trading halt was requested in relation to the negotiation of a material agreement with the company’s technology partner, Lilac Solutions Inc.

The company advised that its shares will remain halted until Wednesday, 22 September or upon the release of the announcement.

The Lake Resources share price was flat last Friday, closing the session at 51.5 cents.

About Lilac Solutions

Lake Resources believes the company is positioned to deliver the “world’s cleanest lithium”, with higher purity, cleaner technology and a pathway to large, scalable production.

Lake Resources has partnered up with California-based Lilac Solutions to fast-track its lithium production process.

The company explains that the conventional lithium extraction for brine involves pumping salt-rich waters to the surface into large ponds, where solar evaporation reduces the liquid content. This process can take up to anywhere between nine months to two years, with lithium recoveries below 50%.

Lilac has proven a high-purity extraction method that produce lithium brines “in under three hours” and with “minimal environmental impact”.

Without the need for traditional evaporation ponds, Lake Resources believes this “addresses the increasing interest from EV makers and battery makers to demonstrate they have access to a sustainable scalable supply chain for raw materials”.

The company believes Lilac’s proprietary extraction process could put “Lake ahead of rival projects in terms of consistent, battery quality production …”.

Lake Resources share price snapshot

The Lake Resources share price has surged 543% year-to-date thanks to the recent boom in lithium prices.

The company is busy on multiple fronts, from drilling at its flagship Kachi Project to discussions with potential offtake partners.

A number of near-term milestones are on the horizon according to the company’s July investor presentation. This includes the anticipated completion of its definitive feasibility study in Q2 2022 and final investment decision on construction finance in mid-2022.

The post Why the Lake Resources (ASX:LKE) share price is frozen appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are having a bumper start to the week

Motley Fool contributor Kerry Sun 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 Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has accelerated by over 40% since the company received its initial takeover offer.

The company’s shares were hovering around the $5.80 mark following a turbulent 12 months for Sydney Airport. However, its shares roared to a 52-week high of $8.41 last Monday before ending the week at $8.30 apiece.

Recap on the takeover offer

In early July, Sydney Airport advised that a consortium of infrastructure investors proposed a $22.6 billion all-cash transaction to buy Australia’s largest airport.

The deal offered $8.25 per share, which represented a 42% premium on the company’s shares at the time.

However, the Sydney Airport board knocked back the proposal just two weeks after. It stated that the offer undervalues the company and is not in the best interest of shareholders.

A revised conditional and non-binding proposal soon followed a month later (16 August), sweetening the deal. The consortium of infrastructure investors tabled an improved $8.45 per share offer. Yet again, the board declined, noting that the current COVID-19 environment does not reflect Sydney Airport’s long-term value.

Another offer arrived last Monday, upping the ante to $8.75 per share to acquire 100% of Sydney Airport shares. As such, the board appeared satisfied and said that it intends to grant the consortium due diligence on a non-exclusive basis.

This allows the buyer to put forward a binding proposal. The due diligence will take around 4 weeks to complete.

What does this mean for shareholders?

The process will proceed to the next step once the binding proposal is received and due diligence is complete.

The Sydney Airport board would make a unanimous recommendation to shareholders voting on the transaction. If this is approved, Sydney Airport and the consortium will enter into a mutually acceptable scheme implementation deed. Although, this would be subject to several conditions, including court and regulatory approvals.

For now, Sydney Airport shareholders will need to wait until due diligence is complete around mid-October.

Based on the current Sydney Airport share price, the latest offer represents an upswing of 5.4%.

Sydney Airport share price snapshot

Over the past 12 months, Sydney Airport shares were mostly tracking sideways until the takeover proposal announcement. Since then, the company’s shares have skyrocketed to near pre-COVID highs.

Sydney Airport presides a market capitalisation of roughly $22.4 billion and has approximately 2.7 billion shares on its books.

The post Sydney Airport (ASX:SYD) board recommends revised takeover proposal. What could this mean for shareholders? appeared first on The Motley Fool Australia.

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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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ASX cannabis shares have been smashed in the past week or so. Leading names like Little Green Pharma Ltd (ASX: LGP) and Creso Pharma Ltd (ASX: CPH) finished last week firmly in the red.

So, what’s going wrong for ASX cannabis shares lately and how have they performed?

What’s going wrong for ASX cannabis shares lately?

Interestingly, it’s not as though shares in these Aussie companies are performing poorly over the longer term. Little Green Pharma shares are up 157% in the past 12 months while the Creso Pharma share price has climbed 200% higher in the same period.

However, the past week or so has seen a correction of sorts. Mixed financial results in the August reporting season may be one factor weighing on ASX cannabis shares right now.

For instance, Little Green Pharma reported a 218% surge in revenue to $7 million in FY21 alongside some key strategic moves. The Aussie cannabis group successfully imported its first shipment of THC 16 cannabis flower medicine from Denmark to Australia, sparking a share price surge at the time.

With no major regulatory news in recent weeks, it appears that the recent earnings season has sparked a pullback from investors. The Incannex Healthcare Ltd (ASX: IHL) share price has rocketed 166.7% higher in 2021 but still edged 1.2% lower in the last 5 days.

That could indicate investors in ASX cannabis shares are cashing in some of their recent gains rather than any fundamental correction in value.

Some shares, like MGC Pharmaceuticals Ltd (ASX: MXC), have been boosted by recent announcements. MGC Pharma received approval for the UK import and prescription of its CannEpil+ product last week which sparked a share price surge.

One factor could be the risk of increased competition in the sector. Cronos Australia (ASX: CAU) and Queensland-based CDA Health entered into an $85 million merger announcement last week as it looks to increase the size and scale of its operations.

Foolish takeaway

It’s been a busy little period for ASX cannabis shares. Given the fledgling nature of the industry and the size of these Aussie companies, investors will be keeping a close eye on them in the final quarter of the year.

The post What’s going wrong for ASX cannabis shares lately? appeared first on The Motley Fool Australia.

More reading

• Why the Little Green Pharma (ASX:LGP) share price has lost 20% since July
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Motley Fool contributor Ken Hall 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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It certainly has been a fantastic year for the Orocobre Limited (ASX: ORE) share price.

So far in 2021, the lithium miner’s shares are up an impressive 105%. This compares to an 11% gain by the ASX 200.

Can the Orocobre share price keep rising?

Unfortunately, one leading broker is calling time on the Orocobre share price rise.

A note out of Bell Potter this morning reveals that its analysts have resumed coverage on the company with a hold rating and $9.30 price target.

This is broadly in line with the current Orocobre share price of $9.35.

What did the broker say?

Bell Potter appears to be a fan of Orocobre. Particularly following its merger with Galaxy Resources, which it notes makes it a top give global lithium producer.

Bell Potter commented: “The ORE-GXY merger has formed one of the largest ASX-listed pure-play lithium producers. ORE now has projects spanning Australia and the Americas producing spodumene concentrate from hard rock and lithium carbonate from brine assets. ORE will soon also have downstream processing capacity in Japan to convert lithium carbonate into battery grade lithium hydroxide.”

The broker also sees the company, which will soon be rebranded as Allkem, as the go-to investment for the decarbonisation theme.

It explained: “ORE is the go-to investment for multi-project exposure to lithium markets and the decarbonisation theme in general. A tight supply outlook has resulted in lithium prices lifting to several-year highs; as a current producer, ORE’s cash flows should benefit before any potential supply-driven correction.”

“We expect government policy, company strategy and media momentum will continue focus on decarbonising technologies which are favourable for lithium demand and pricing sentiment. ORE’s rebranding to Allkem has already signalled a strong ESG focus and culture,” the broker added.

However, Bell Potter feels that the Orocobre share price is fully valued after its strong run.

As a result, it feel investors should keep their powder dry for the time being and has put a hold rating on its shares.

The post Top broker gives its verdict on the Orocobre (ASX:ORE) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Orocobre 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 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 Kogan.com Ltd (ASX: KGN) share price has dropped by around 24% over the last month. What’s going to happen next?

When did the Kogan share price start declining?

Kogan reported its result on 24 August 2021.

On 23 August 2021, Kogan shares ended the day at $13.13. A day later, it finished at $11.06 – 16% lower. Almost a month later, it has dropped another 10% from $11.06. That’s at today’s pre-open price.

FY21 was a mixed year for the e-commerce ASX share.

Sales, gross profit and customers rose strongly. Over the financial year, gross sales increased 52.7% to $1.18 billion, gross profit grew 61% to $203.7 million and Kogan.com’s active customers rose 46.9% to 3.2 million. It also had 764,000 active customers.

However, it was a different story for the profitability of the business. Kogan was able to show that adjusted earnings per share (EPS) – which removes non-cash and one-off items – increased by 27.2% to $0.41 per share. However, actual EPS sank 88.3% to $0.03.

Excess inventory in the second half of FY21 significantly increased storage costs, which more than doubled its variable costs to $44.9 million (up from $20.1 million in FY20). It also had to spend on promotional activity to rebalance its inventory levels.

Next, there were logistics detention charges of $7.7 million relating to warehousing and supply chain interruptions. This was resolved before the end of FY21.

Finally, there was $12 million for the provision of the likely payment of the third and fourth tranche payments for the purchase of Mighty Ape.

The trading update from Kogan may also have had an effect on the Kogan share price.

Trading update

After telling investors about what had happened in the last financial year, management also revealed how the e-commerce retailer had started in FY22.

It said in July 2021 it saw gross sales growth of 5.1% compared to July 2020. There was also gross profit margin improvement compared to June 2021, though below July 2020.

Kogan generated $2.1 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), reflecting high operating costs which are gradually reducing.

The first 18 days of August 2021 showed a further strengthening of growth compared to July 2021. Gross sales were 24.5% above July and gross profit was 25% above July.

What’s next for the Kogan share price?

You’d need a time machine to truly know what’s going to happen next.

However, the business did say what it plans to do:

During FY22, Kogan.com expects to deliver strong growth in Kogan First memberships, ongoing growth in exclusive brands, further enhancement and development of Kogan Marketplace, and the benefits from the full integration of the Mighty Ape team and operations flowing through.

To improve its capabilities, the company also anticipates potentially implementing logistics projects that would not require significant capital expenditure and can be supported by the company’s balance sheet.

Kogan is currently rated as a buy by Credit Suisse with a price target of $14.06. The broker thinks there are is an opportunity for the e-commerce ASX share to capitalise on the rise of e-commerce over time.

The broker puts the Kogan share price at 24x FY23’s estimated earnings with a projected grossed-up dividend yield for that financial year of 2.9%.

The post The Kogan (ASX:KGN) share price is down 24% in a month. What’s next? appeared first on The Motley Fool Australia.

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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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com 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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Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP) shares extended losses on Friday, both marking fresh year-to-date lows as iron ore prices crater under weak Chinese demand.

BHP shares tumbled 3.67% on Friday, trading at levels not seen since 2 December 2020. The selloff was on the back of heavy volume, with 18.86 million shares trading hands compared to its 10-day average of just 9 million.

Iron ore sent to the doghouse

Iron ore prices fell below US$100 a tonne for the first time in 14 months as Chinese demand struggles to pick up amid a recent focus on emissions targets and weak growth out of its key property and infrastructure sectors.

But perhaps what’s intriguing is that iron ore’s rapid deterioration is happening in isolation. Commodities, more broadly speaking, are holding up relatively well.

The Australian Financial Review (AFR) reported commentary from head of investment strategy at AMP Capital, Shane Oliver, who said “often we see commodities all move together, but at the moment, iron ore seems to be the exception which is making it a lot harder for companies that solely rely on it.”

“It makes sense to take positions in miners that have a more diversified exposure that will benefit from higher prices elsewhere including coal, gas and copper,” he added.

Making the switch from Rio to BHP shares

According to the AFR, SG Hiscock’s Australian equities fund reiterated this view, swapping Rio Tinto for BHP shares last month.

The fund pivoted into BHP for its “better leverage to soft commodities production through potash” and “future-facing commodities through its nickel business.”

Portfolio Manager at SG Hiscock Hamish Tadgell said:

While iron ore has done extremely well and is still very well positioned from a global perspective where supply-side constraints still exist, we see demand coming off a bit and we’re putting our money to work in areas we see better opportunities.

The post Why this fund manager is ditching Rio Tinto for BHP (ASX:BHP) shares appeared first on The Motley Fool Australia.

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• Use the sharp commodity sell-off to buy these ASX 200 mining shares
• Rio Tinto (ASX:RIO) share price breaks below $100 for the first time since November 2020
• BHP (ASX:BHP) shares are down 20% in a month. Here’s why it’s not all bad news for investors

Motley Fool contributor Kerry Sun 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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