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The S&P/ASX 200 Index (ASX: XJO) was flat today, ending at 7,394 points.

Here are some of the highlights from the ASX:

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price climbed over 10% today after releasing its quarterly update for the three months to 30 June 2021.

The rare earth miner said that it achieved quarterly sales revenue of $185.9 million, up from $110 million in the third quarter of FY21. Its cash receipts increased to $192 million, up from $133 million in the prior quarter.

In terms of production, total rare earth oxide (REO) production was 3,778 tonnes (up from 4,463 tonnes) in the third quarter and NdPr production was 1,393 tonnes (up from 1,359 tonnes). Management said this was an excellent result due to the continuing challenges being presented by the pandemic, particularly in Malaysia.

The ASX 200 miner ended FY21 with a cash balance of $680.8 million, up from $568.5 million at 31 March 2021.

Lynas’ CEO, Amanda Lacaze, made some comments about the company’s progress:

Progress continued on our Lynas 2025 projects including the rare earth processing facility in Kalgoorlie and the proposed integrated US rare earths processing facility. Detailed engineering and design work for the heavy rare earths facility was submitted to the US committed in line with US Department of Defense (DoD) phase 1 milestones. The DoD is now conducting a merit evaluation of the submission.

Preparation for the next mining campaign has commenced at Mt Weld and a number of improvement projects are underway, including the commissioning of the second stack cell in late June and the installation of a second concentrate dryer.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price has jumped today after announcing an acquisition and a trading update.

In the trading update it said that it saw FY21 sales of $258 million. That represented an increase of 32.9% year on year, with comparable sales growth of 31.6%. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $42 million to $42.5 million. This would be growth of 58% to 60% compared to FY20.

City Chic also said that its trading in FY22 has exceeded the budget so far. The US and the UK performance has outweighed the impact of temporary store closures because of lockdowns in Australia.

The acquisition is a €6 million deal to buy Navabi, which is an online marketplace which sells hundreds of third-party women’s plus-size brands as well as its own brands that it has developed.

The customer base is predominately from Germany. Its websites had 5.8 million customer visits in 2020, generating €10.4 million of sales revenue. Before the pandemic, Navabi had annual website traffic that exceeded 10 million visits. It has been profitable in 2021, but traffic and revenue have not recovered.

City Chic is expecting trading and profitability to improve from 2022 as it rebuilds its inventory over the next six months.

Bank of Queensland Limited (ASX: BOQ)

The BOQ share price fell 0.3% today after releasing its quarterly capital update for the three months to 31 May 2021.

BOQ’s board has set the common equity tier 1 (CET1) capital target range to be between 9% to 9.5% and the total capital target range to be between 11.75% and 13.5%.

At 31 May 2021, the ASX 200 bank’s CET1 capital ratio was 14.1%, up from 10% at 28 February 2021.

The total capital ratio was 18%, up from 13.8% at 28 February 2021.

BOQ said it raised $1.35 billion by issuing new shares in March 2021 and $250 million through the issue of subordinated debt in April 2021.

The post ASX 200 flat, Lynas soars, City Chic jumps appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX 200 shares flying around the share market today
• Why UBS just upgraded these 3 ASX shares to “buy”
• ASX 200 employee busted stealing $470,000: Watch it unfold
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• The City Chic (ASX:CCX) share price has jumped 6% today. Here’s why

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 was one of only a few winners amid the first COVID-19 lockdowns. But now, while half of Australia is locked inside the home perimeters, it’s flopping.

The online retailer’s shares have fallen 15.9% over the last month, despite people in Sydney, Victoria, and South Australia locking down to avoid the Delta strain. Right now, Kogan shares have closed at $10.79, down another 1.9% today.

Let’s take a look at how the Kogan share price moved last time Australia faced large numbers of COVID-19 cases.

Flashback to 2020

Last year, Kogan was spruiked as one of only a few ASX shares to benefit from the global pandemic.

The Kogan share price gained 279% between 20 March 2020 and 10 July 2020 – going from $4.56 to a whopping $17.29. And it didn’t stop there.

The online retailer’s shares reached their highest point ever in late 2020, when they hit $25.57 during intraday trade.

The gains were driven by record sales in March 2020 as many Australians worked, studied, socialised, and, of course, shopped online.

Kogan sales broke more records in April 2020 and it received 126,000 new active customers in May.

The multitude of positive news sent the Kogan share price soaring in 2020, but the same can’t be said for 2021.

What’s up with the Kogan share price now?

The Kogan share price is failing to gain the same traction it enjoyed during lockdowns in 2020.

This was highlighted last Wednesday, when Kogan released a business update.

Much of the update was positive, with Kogan reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $61.1 million for the 2021 financial year.

However, that figure is just 23.1% higher than Kogan’s EBITDA of the 2020 financial year. While it’s still a gain, it suggests Kogan’s growth is slowing.

Additionally, the company’s inventory issues dug into its profits during the second half of the financial year. Thankfully, the issues have now been solved

Finally, as the Australian Financial Review reported, Kogan is the ASX’s fourth most shorted stock. According to the publication, “most of the reasons investors are shorting were reinforced by Wednesday’s update”.

Kogan share price snapshot

All eyes were on the Kogan share price during 2020 but it now appears the market has lost interest.

Right now, the company’s shares are 44% lower than they were at the start of 2021. They have also fallen 36% since this time last year.

The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.

The post The Kogan (ASX:KGN) share price was a lockdown winner, so what’s going on now? appeared first on The Motley Fool Australia.

More reading

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• Redbubble (ASX:RBL) share price climbs 4% today
• Brokers name 3 ASX shares to buy today
• Why Kogan, Service Stream, Whispir, & Zip shares are sinking

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. 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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The Piedmont Lithium Inc (ASX: PLL) share price is having another terrible day on the market.

At market close on Monday, shares in the US-based lithium explorer are 68.5 cents each – down 8.05% on their previous closing price.

The catalyst for today’s sell-off seems to be the market reaction to the company’s presentation to residents and commissioners of Gaston County, North Carolina. According to The Charlotte Observer, many residents at the town hall expressed displeasure at the company and its plan to establish an open-pit lithium mine in their community.

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The Piedmont Lithium Inc (ASX: PLL) share price is having another terrible day on the market.

At market close on Monday, shares in the US-based lithium explorer are 68.5 cents each – down 8.05% on their previous closing price.

The catalyst for today’s sell-off seems to be the market reaction to the company’s presentation to residents and commissioners of Gaston County, North Carolina. According to The Charlotte Observer, many residents at the town hall expressed displeasure at the company and its plan to establish an open-pit lithium mine in their community.

Although the presentation was on Wednesday, Australian time, media reports of the meeting did not emerge until the weekend.

The company was forced to make the presentation when reports emerged the county board could reject Piedmont’s application for the mine. Its share price fell 20% on the day before a trading halt was called.

Let’s take a closer look.

“Putting the cart before the horse”

Piedmont Lithium CEO Keith Phillips went to the meeting in Gaston County to, as the company put it, “address misunderstandings in recent media reports regarding Piedmont’s development timeline, permit applications, and commitment to the environment”.

“I was advised a couple of years ago…we shouldn’t waste the commissioners’ time,” Mr Phillips said to the crowd.

County commissioners did not seem impressed.

“No company that I’ve ever dealt with has left, I think, such a bad taste in our citizens’ mouths,” one commissioner said.

“(This is) the biggest case in my 23 years sitting here of putting the cart before that horse,” said another.

According to the Observer, many residents wore red at the meeting in protest at the proposed mine.

“The few gains Piedmont Lithium is promising will not be worth the cost to our county’s quality of life,” one resident is quoted as saying at the meeting.

How important was this mine to the Piedmont Lithium share price?

Initially, the Piedmont Lithium share price partially rebounded on the news of the presentation to the county. However, the market seems to think the presentation was more a fizzer than a lifesaver for the project.

The proposed North Carolina mine is Piedmont’s only 100% owned project. It has minority interest in sites in Quebec, Canada, and Ghana. The company estimates it has the rights to approximately 39.2 million tonnes of lithium at the site.

At current market prices, that equates to an approximate value of US $538 billion. If the county were to reject the mine’s application, it would be an astronomical blow to the company’s revenue prospects.

Although the presentation was on Wednesday, Australian time, media reports of the meeting did not emerge until the weekend.

The company was forced to make the presentation when reports emerged the county board could reject Piedmont’s application for the mine. Its share price fell 20% on the day before a trading halt was called.

Let’s take a closer look.

“Putting the cart before the horse”

Piedmont Lithium CEO Keith Phillips went to the meeting in Gaston County to, as the company put it, “address misunderstandings in recent media reports regarding Piedmont’s development timeline, permit applications, and commitment to the environment”.

“I was advised a couple of years ago…we shouldn’t waste the commissioners’ time,” Mr Phillips said to the crowd.

County commissioners did not seem impressed.

“No company that I’ve ever dealt with has left, I think, such a bad taste in our citizens’ mouths,” one commissioner said.

“(This is) the biggest case in my 23 years sitting here of putting the cart before that horse,” said another.

According to the Observer, many residents wore red at the meeting in protest at the proposed mine.

“The few gains Piedmont Lithium is promising will not be worth the cost to our county’s quality of life,” one resident is quoted as saying at the meeting.

How important was this mine to the Piedmont Lithium share price?

Initially, the Piedmont Lithium share price partially rebounded on the news of the presentation to the county. However, the market seems to think the presentation was more a fizzer than a lifesaver for the project.

The proposed North Carolina mine is Piedmont’s only 100% owned project. It has minority interest in sites in Quebec, Canada, and Ghana. The company estimates it has the rights to approximately 39.2 million tonnes of lithium at the site.

At current market prices, that equates to an approximate value of US $538 billion. If the county were to reject the mine’s application, it would be an astronomical blow to the company’s revenue prospects.

Piedmont Lithium share price snapshot

Despite recent difficulties, the Piedmont Lithium share price is still 590% higher than this time last year.

Piedmont Lithium has a market capitalisation of $1.2 billion.

The post Why the Piedmont Lithium (ASX:PLL) share price is down another 8% appeared first on The Motley Fool Australia.

More reading

• Why BHP, Damstra, Galaxy, & Piedmont Lithium shares are racing higher
• Why the Piedmont Lithium (ASX:PLL) share price is rocketing 15% higher today
• Why Altium, Beach, Domino’s, & Piedmont Lithium are tumbling lower
• Piedmont Lithium (ASX:PLL) share price opens 20% down on Wednesday
• What these 2 best performing ASX shares have in common….and what to expect next

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Piedmont Lithium Inc. 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 Bitcoin (CRYTPO: BTC) price is rebounding strongly, up 12% over the past 24 hours.

That’s its largest single day gain in 6 weeks. And, sticking with the number 6, this represents 6 consecutive days of gains for Bitcoin, which has come under heavy pressure since hitting all time highs of US$64,829 on 16 April.

One Bitcoin is currently worth US$38,403 (AU$52,607).

With today’s strong rebound factored in, Bitcoin’s year-to-date returns now stand at 31%.

Certainly not bad if you bought on 1 January. Not so good if you bought around mid-April.

This crypto gained 242% more than Bitcoin

Overall, the past 24 hours has been a kind one to crypto investors.

Not only is Bitcoin up 12% but Ethereum (CRYTPO: ETH), the world’s second largest digital token by market cap, is up 8% as well.

In fact, according to data from CoinMarketCap, 96 out of the top 100 cryptos are at least fractionally in the green since this time yesterday.

Leading that pack, is Amp (CRYPTO: AMP).

Currently trading at 7 US cents, Amp has gained 41% over the past 24 hours. Or 242% more than the gain Bitcoin posted.

Although far from a household name, Amp now counts as the 33rd biggest cryptocurrency in virtual circulation, with a market cap of US$2.96 billion.

Launched in September 2020, Amp is a relative newcomer to the market, even by crypto standards. Back in September Amp was trading at just under 1 US cent.

So what the heck is Amp?

According to CoinMarketCap:

Amp is described as the new digital collateral token offering instant, verifiable assurances for any kind of value transfer. Using Amp, networks like Flexa can quickly and irreversibly secure transactions for a wide variety of asset-related use cases.

Foolish takeaway

Remember that Bitcoin and other cryptocurrency prices are notoriously volatile. And some investment veterans are forecasting Bitcoin will fall to or below US$15,000.

Amp is up 40% over the past 24 hours. And it’s up just over 600% since September. But it’s down 42% from the 12 US cents it was trading for just last month on 17 June.

Proceed with due caution.

The post Bitcoin’s 12% daily price gain dwarfed by this lesser-known token appeared first on The Motley Fool Australia.

More reading

• Why this investment guru forecasts Bitcoin crashing to US$15,000
• Bitcoin gains after Musk, Wood, and Dorsey spruik the crypto
• Bitcoin crashes below US$30,000 support level…now what?
• The Ethereum price is crashing as this little known token soars
• This top ASX fundie reckons Bitcoin is going to zero

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

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The S&P/ASX 200 Index (ASX: XJO) is having an interesting start to the trading week this Monday. At the time of writing, the ASX 200 is currently down 0.01% to 7,394 points after hitting a new record high of 7,417.6 points earlier this morning.

So let’s take a look at some of the ASX 200 shares that are being traded the most heavily today:

3 ASX 200 shares flying around the share market today

Lynas Rare Earths Ltd (ASX: LYC)

Rare earth producer Lynas is our first ASX 200 share to check out today. So far this Monday, a substantial 16.03 million shares have changed hands. This is almost certainly the result of the massive movement the Lynas share price has seen today. Lynas shares are currently up a whopping 10.22% to $7.08 a share today, after making a brand new 52-week high of $7.12 a share earlier in the day.

This move upwards was in response to a quarterly report the company put out this morning. This report revealed both bumper revenues and production metrics for Lynas, as well as a surge in cash on hand. Clearly, investors approve.

Silver Lake Resources Limited. (ASX: SLR)

ASX 200 gold miner Silver Lake is our second company to look at today, seeing as a hefty 19.16 million shares have swapped hands so far this Monday. Silver Lake is seeing a similar outcome from an opposite cause to Lynas. Today, Silver Lake shares are down a nasty 7.62% at the time of writing to $1.49 a share.

This appears to be a continuation of the reaction investors had last week to Silver Lake’s quarterly results, which were released on Friday. Not only did this report reveal a slump in gold sales, but the company was also rather pessimistic about its FY2022 guidance. Silver Lake is now down around 15% from where it ended the trading day last Thursday.

Alumina Limited (ASX: AWC)

Our final ASX 200 share today, and the most traded share on the markets, goes to aluminium producer Alumina. The 21.85 million Alumina shares that have traded hands today is probably the result of the Alumina share price itself. So far this Monday, Alumina shares are up an impressive 5.56% to $1.71 a share.

It’s not immediately obvious why this company is jumping so enthusiastically today. However, sentiment seems to be turning with Alumina after an initial dip following its quarterly earnings report on 16 July. Since 20 July, this company is now up more than 11%.

The post Here are 3 ASX 200 shares flying around the share market today appeared first on The Motley Fool Australia.

More reading

• Why UBS just upgraded these 3 ASX shares to “buy”
• ASX 200 employee busted stealing $470,000: Watch it unfold
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• Here’s why the Lynas (ASX:LYC) share price is on watch today

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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If you’re wanting to invest in the small side of the Australian share market, then the two small caps listed below could be worth a closer look.

Analysts believe they could have very bright futures and are tipping them as buys. Here’s why they could worth adding to your watchlist:

Booktopia Group Ltd (ASX: BKG)

The first small cap ASX share to look at is Booktopia. It is an online book retailer which was supposed to struggle when Amazon launched in Australia. Pleasingly for investors, that simply hasn’t been the case. For example, during the first half of FY 2021, the company shipped a total of 4.2 million units for the six months.

This was up 40% on the prior corresponding period and led to Booktopia reporting a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. It then followed this up with further strong growth in the third quarter, leaving it well-placed to deliver a very strong full year result next month.

Analysts at Morgans appear confident this positive form will continue. The broker is also expecting further market share gains and scale benefits. In light of this, it currently has an add rating and $3.54 price target on its shares.

Serko Ltd (ASX: SKO)

Another small cap ASX share to watch is Serko. It is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. The Zeno Travel platform provides corporate customers with AI-powered end-to-end travel itineraries, cost control and travel policy compliance. Whereas the Zeno Expense platform lets users automate and streamline their expense administration function, identify out-of-policy expense claims, and prevent fraud.

Given the impact that COVID-19 has had on travel markets, it will come as no surprise to learn that its performance has been impacted. However, demand has been improving and is expected to continue doing so as travel markets recover. This will be supported by its game-changing deal with travel giant Booking.com, which has the potential to be a significant boost to revenues in FY 2022.

Management commented: “The new Booking.com for Business platform is now being rolled out globally as additional languages and regional content are added. As previously announced, subject to the recovery in relevant markets, the partnership is expected to make a material contribution to revenues in the 2022 financial year.”

Macquarie is positive on the company due to its world class technology. It has an outperform rating and NZ$8.31 (A$7.87) price target on its shares.

The post 2 exciting and buy-rated small cap ASX shares 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 Serko Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Serko 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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Travel shares are sliding at the start of the week as Australian states struggle to contend with the COVID-19 resurgence. In particular, the Webjet Limited (ASX: WEB) share price is off by 1.7% today, at $4.84 apiece.

Since March, shares in the travel agent have been moving to the downside. As a result, the Webjet share price has lost 20% in approximately 4 months. The uncertainty that has been introduced by the Delta variant has suppressed investor sentiment.

Latest COVID-19 updates

New South Wales has started the week off with 145 new locally acquired cases overnight. Unfortunately, 51 of those cases were in the community during their entire infectious period.

NSW recorded 145 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night. pic.twitter.com/TUUIDvd6SP

— NSW Health (@NSWHealth) July 26, 2021

https://platform.twitter.com/widgets.js

Additionally, NSW Premier Gladys Berejiklian is expected to announce changes to restrictions soon, with a possible tightening in some instances. This follows protests in Sydney, which the state fears could end up being a ‘super spreader event’. With another protest planned for the coming weekend, NSW police commissioner Mick Fuller said:

We will be heavily policing that event. We will take the ground very early. You will be arrested. The community has spoken about that behaviour. The Premier has spoken about that behaviour and it won’t be tolerated again.

Despite having been in lockdown for a month now, Sydney has continued to post high daily cases of COVID-19.

The continued lockdowns have weighed on many industries, including travel. In fact, the estimated cost to the economy per week of the NSW lockdown is $1 billion, according to the Australian Financial Review. With millions of people across the country under some form of restriction or lockdown, the impact is taking its toll on the Webjet share price.

On a positive note, South Australia expects to be let out of lockdown at 12:01am on Wednesday. However, an additional week of restrictions will be imposed to remain vigilant. Meanwhile, Victoria has delayed its verdict on a lockdown lift until tomorrow.

Webjet share price recap

Despite the recent events, the Webjet share price is up 57.1% in the last 12 months. Comparatively, the S&P/ASX 200 Index (ASX: XJO) has rallied 22.4%.

Fortunately for Webjet shareholders, the company has raised plenty of capital to sustain itself throughout this tumultuous period. At the end of March, Webjet held $262 million. In addition to this, the company also raised a further $250 million through a convertible note offering in April.

The Webjet share price has fallen roughly 8% since announcing its convertible note offering.

The post Webjet (ASX:WEB) share price weakens as COVID cases continue appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 6 ASX shares to rocket when COVID Delta passes
• Webjet shares (ASX:WEB) are among the most shorted on the ASX
• Why the Webjet (ASX:WEB) share price has fallen 10% in a month
• What happened on the US stock market overnight and how could it impact ASX shares?

Motley Fool contributor Mitchell Lawler 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 owns shares of and has recommended Webjet 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 (Index:^AXJO) is clinging to its record high with a top broker upgrading these ASX shares to “buy” ahead of the August reporting season.

This shows that there’s still value to be found if you cared to look even as investors are sitting on their hands.

They want to see the profit reports before deciding if our market is worthy of being pushed further into record territory.

ASX shares upgraded to buy ahead of reporting season

But UBS isn’t waiting. It believes traditional ASX media shares represent good value and upgraded the Nine Entertainment Co Holdings Ltd (ASX: NEC) share price and News Corporation Class B Voting CDI (ASX: NWS) share price to “buy”.

The key thing about these shares is their low probability of delivering an unpleasant earnings surprise next month.

Further, the broker reckons there is upside potential to the sector’s earnings. This assumes economic growth remains favourable, notwithstanding the nearer-term headwinds from COVID-19 lockdowns.

Upside for these ASX media shares

“COVID-19’s impact in the pcp will drive material y/y ad revenue growth for traditional media names in the June half,” said UBS.

“Other themes include the impact of recent deals with Facebook/Google; cost control (with selected investment in growth areas); and with balance sheets broadly repaired, we see dividends returning or increasing in FY22 and the potential for corporate activity.”

The broker’s 12-month price target on the Nine Entertainment share price is $3.10 and the News Corporation share price is $39.50 a share.

Upgraded to “buy” on earnings cycle

Another that got upgraded by UBS is the Imdex Limited (ASX: IMD) share price. The broker lifted its rating on the drilling services small cap to “buy” from “neutral” with a price target of $2.40 a share.

“Imdex is well positioned to leverage the strong multi-year exploration cycle that is potentially emerging, supported by strength in gold and copper prices and improved access to capital,” said the broker.

“IMD’s Reflex units on hire are at record levels, driven by North America and Australia, where drill rig utilisation is approaching the peak.”

Still cheap after 50% rally

Imdex’s South American operations are lagging but at least conditions are returning to pre-COVID levels.

And don’t be put off by the Imdex share price’s circa 50% rally over the past year. That’s broadly consistent with its global peers and the rise in gold and copper prices.

The Imdex share price is still trading at around an 11% discount to the ASX small industrials. Further, it’s probably facing an upgrade cycle thanks to increasing exploration activity.

The post Why UBS just upgraded these 3 ASX shares to “buy” appeared first on The Motley Fool Australia.

More reading

• ASX 200 employee busted stealing $470,000: Watch it unfold
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Brendon Lau 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 S&P/ASX 200 Index (ASX: XJO) has given up its earlier gains and is currently right about where it ended on Friday.

This comes after the ASX 200 closed for a new all-time high on Friday. With the index currently wobbling between a small loss and a small gain, it could still set a new record close today.

The bigger question facing investors, though, is what to expect from the ASX 200 during the upcoming earnings season, when a company’s full year report can send its share price strongly higher…or lower.

Guidance will be critical for ASX 200 shares

The full 2021 financial year results of ASX 200 companies are set to deliver runs from 1 July 2020 through to 30 June 2021.

That means most of the impact from the recent surge in COVID-19 cases, and the resultant lockdowns across 3 states, won’t be baked into the financials yet.

For that reason, Saxo Market’s Australian market strategist, Eleanor Creagh notes that:

Forward guidance will trump those backward-looking results. And outlooks and guidance for those impacted will be tempered by the current lockdowns. This is where investors will be seeking clarity from management about what comes next.

Despite the new wave of lockdowns, Creagh said that “household balance sheets generally remain strong and income support measures are in place for those affected by local lockdowns, though to a lesser degree”.

With strong balance sheets, limited abilities to splurge on travel, and buoyed by strong housing prices, Creagh forecasts a positive outlook for consumption.

She adds that, “[M]any businesses are impacted both positively and negatively by lockdowns, but we have also seen the reopening can be just as impactful. This inconsistency is likely something that will continue until we see vaccine penetration rates picking up.”

The bar to beat expectations is low

Markets are said to be forward looking. Meaning that expected future performance is already factored into the price.

This also means when an ASX 200 company exceeds expectations it will generally see its share price rise. On the flip side, disappointing expectations to the downside usually sees shares fall lower.

Creagh says that analysts have largely been slow to upgrade their forecasts heading into earnings season. For that reason, “the bar to beat expectations is low”.

What does that mean for companies trading on the ASX 200?

According to Creagh:

As with prior reporting periods, companies should broadly exceed expectations with the final tally likely skewed to upside surprises. However, as the profit cycle has progressed the magnitude of earnings surprises will be less.

Given the current circumstances, she reminds us, the “focus will be on the guidance and outlooks as market participants look ahead”.

Dividends poised to rebound

Income investors didn’t have the best of years in 2020, as most ASX 200 dividend shares scaled back or even cut their dividend payments entirely. The big banks, classically a favourite play for income investors, cut their dividend payments more than 50% in 2020, year-on-year.

However, Saxo Markets sees an upside for dividends in the upcoming earnings season. “At an index level, dividends will be well on their way to recovery, maintaining a decent premium over 10-year government bond yields,” Creagh said.

Though Saxo forecasts the banks’ dividend payments won’t yet reach past payout ratios, Creagh said that, “dividends will significantly improve on the last payment period for the banks.”

Prior to the new wave of lockdowns, the cashed-up banks were widely forecast to return capital to shareholders.

According to Creagh, that’s still likely. Though there are risks to this consensus outlook:

Given current lockdowns there is a possibility that the banks take a more cautious approach to capital management relative to consensus expectations. Though this week, as restrictions have tightened, ANZ [Australia and New Zealand Banking Group Ltd (ASX: ANZ)] has already announced an on-market share buyback program of up to $1.5 billion beginning in August.

This strengthens our confidence in the potential for capital management.

Also in the dividend spotlight are ASX 200 mining heavyweights BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Creagh notes that:

The miners (BHP, RIO, FMG) will continue to pay high dividends in absolute terms. Iron ore prices have remained elevated throughout the financial year and other commodities have also seen prices appreciate. Stronger balance sheets, robust revenues and profits, along with elevated commodity prices mean miners are in a strong position to continue to return cash to shareholders.

As for ASX 200 travel shares?

Creagh says that, “Airlines, travel agencies, accommodation and entertainment companies remain under pressure and at the mercy of the current unpredictable circumstance with respect to domestic travel.”

Despite recovering strongly from the panic selling in February and March 2020, companies in the travel and leisure sector are still broadly trading well below their pre-pandemic levels. For this reason, Creagh says, “There remains a catch-up trade in play for those taking a longer-term view, particularly with vaccine penetration stepping up investors can look ahead more clearly to what lies on the other side of the pandemic.”

The post What to expect from the ASX 200 during earnings season appeared first on The Motley Fool Australia.

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• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• BHP (ASX:BHP) share price lifts amid news $7.5b project will proceed
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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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A former staffer of an S&P/ASX 200 Index (ASX: XJO) company has been convicted of his involvement in an illegal gambling scam.

A NSW local court heard that Star Entertainment Group Ltd (ASX: SGR) baccarat dealer Hieu Duc Lam stole $467,700 from his employer by allowing an accomplice to cheat.

Independent Liquor & Gaming Authority (ILGA) chair Philip Crawford said employees in the gambling industry held “special positions of responsibility”.

“A casino special employee is licensed to supervise and facilitate gaming activities,” he said. 

“Their role is to help safeguard the integrity of casino operations from criminal influence, serious misconduct or exploitation, and a special degree of trust is placed in them. This case demonstrates a clear breach of that trust.”

The court sentenced Lam to an aggregate of 2 years’ imprisonment, to be served as an intensive corrections order. He is due to be released in July next year.

Lam also must complete 250 hours of community service.

Star Entertainment shares lost 2.27% on Monday to trade at $3.45 in the afternoon. The ASX 200 stock has lost almost 6% in the past month, courtesy of a COVID-19 resurgence in Australia’s largest city.

How the employee cheated The Star casino

Closed-circuit television showed Lam conspiring with a colleague and a customer to cheat The Star casino in Sydney.

The video showed Lam peeking to memorise a batch of cards that were about to be used in a game of baccarat.

Lam then used a secure messaging app on his phone to tip off the order of the cards to his co-conspirator, who was a player in the upcoming game.

The ASX 200 company lost almost $500,000 in less than a month to the group, according to the ILGA.

Once the scam was uncovered, The Star sacked Lam and self-reported the conduct to the ILGA.

The court then found Lam guilty of 15 charges of dishonestly obtaining a financial advantage. The ILGA has also cancelled his gaming licence.

Lam’s sentencing comes on the back of another two staffers from The Star busted in March for trying to steal more than $30,000 in gaming chips.

The post ASX 200 employee busted stealing $470,000: Watch it unfold appeared first on The Motley Fool Australia.

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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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