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ASX copper shares have been enjoying some strong tailwinds since March 2020 as the price of the red metal has rocketed to near record highs.

At the time of writing, copper is trading for US$9,388 (AU$12,353) per tonne. While down from early May’s US$10,417 per tonne, that’s still almost double the US$4,790 per tonne copper was fetching on 20 March 2020.

And it’s not just ASX copper shares enjoying the higher price of the commodity they dig or grow from the dirt.

The global commodity sector has now gained for 5 quarters in a row. And more gains could be in the pipeline.

More tailwinds ahead for ASX copper shares

Saxo Market’s Ole Hansen, head of commodity strategy, forecasts continued growth for the commodity sector. Though not at the same blistering pace witnessed since the recovery from the pandemic led market meltdown last year.

In Saxo’s Q3 2021 Quarterly Outlook report, released this afternoon, Hansen writes:

Since the pandemic and global lockdown lows in March last year, the Bloomberg Commodity Spot index, which tracks the front-month futures performance of a basket of raw materials from energy to metals and agriculture, has surged higher by 75% to reach a ten-year high.

Hansen notes that many analysts are speculating that the world has entered a new commodity super-cycle. The commodity sector is prone to occasional super-cycles because, “Supply and demand imbalances take time to correct due to high start-up capex for new projects, along with the time needed to harness new supply.”

The copper sector offers a good example. Hansen says it can take 10 years from decision to production in the copper industry. He adds, “Such long periods often cause companies to postpone investment decisions while waiting for rising prices, at which point it is often too late to avoid further price gains.”

The most recent commodity super-cycle was driven by China’s rapid growth and subsequent massive new demand for raw materials, which “helped drive the Bloomberg Commodity Spot index up by almost 350%”. That super-cycle didn’t come to an end until the GFC crippled financial markets in 2008.

As for the demand for metals like copper?

Narrowing in on copper and other metals, Saxo’s outlook remains decidedly bullish for the upcoming quarter.

According to Hansen:

In metals, the combination of increased government spending on infrastructure and decarbonisation will continue to drive strong demand for metals including copper and iron ore – the key ingredient to make steel – as well as aluminium, zinc and even semi-industrial metals such as silver and platinum.

Also supporting commodity prices (and offering tailwinds to ASX copper shares) is Saxo’s forecast that inflation will rise faster than most central bankers are predicting. And that higher prices will be longer lasting rather than a flash in the pan.

Hansen says this will create “continued demand from investors as they will need real assets such as commodities to hedge their portfolios”.

2 leading ASX copper shares

There are a number of quality ASX copper shares investors can research.

For the purposes of this article, we’ll focus on 2 of the top copper producers.

First up, Oz Minerals Limited (ASX: OZL). Oz Minerals is part of the S&P/ASX 200 Index (ASX: XJO) and has a market cap of $7.44 billion. It also pays a dividend yield of 1.1%, fully franked.

The Oz Minerals share price has far outperformed the benchmark, with shares up 104% over the past 12 months and up 16% year-to-date.

Our second leading ASX copper share is Sandfire Resources Ltd (ASX: SFR), which has a market cap of $1.22 billion. Sandfire pays a dividend yield of 3.2%, fully franked.

The Sandfire share price has also outperformed, with particularly strong gains in 2021. Over the past 12 months, Sandfire shares are up 34%, with shares up 25% year-to-date.

The post How Saxo Market’s Q3 outlook is good news for ASX copper shares appeared first on The Motley Fool Australia.

More reading

• 5 outperforming ASX dividend shares unmasked
• ASX copper shares up and down as copper price bounces back
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• These were the worst-performing ASX 200 shares last week
• Why ASX copper shares are coming under pressure

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 Metcash Limited (ASX: MTS) share price was a strong performer on Tuesday.

The wholesale distributor’s shares jumped 6% to a multi-year high of $3.92 before closing the day at $3.90.

This means the Metcash share price is now up an impressive 43% over the last 12 months.

Why did the Metcash share price race higher?

Investors were bidding the Metcash share price higher today after brokers responded positively to yesterday’s full year results release.

In case you missed it, on Monday the company reported a 9.9% increase in revenue to $14.3 billion and a 27.1% jump in underlying profit after tax to $252.7 million. This allowed Metcash to increase its full year fully franked dividend by 40% to 17.5 cents per share and announce a $175 million share buyback.

What did brokers say?

A number of brokers have responded to the results release and have suggested that the Metcash share price is in the buy zone. One of those is Goldman Sachs, which retained its buy rating and lifted its price target to $3.97.

Commenting on the result, Goldman said: “MTS produced a strong performance in FY21 with Revenue growth of 10.1% (despite annualisation of customer losses in Food) and EBIT growth of 19.9%, reflecting the company’s exposure to COVID driven categories and solid execution.”

And while the broker notes that its Food business disappointed by failing to demonstrate operating leverage over the period, it highlights that the Metcash thesis remains a good one. This is thanks largely to its Hardware business.

The broker explained: “While we have pulled back expectations for Food earnings, Hardware has been revised up as Total Tools earnings annualise into FY22 and store rollout accelerates. Overall, we revise group EBIT forecasts by +1.9% and +1.8% respectively over FY22e and FY23e. Underlying NPAT is revised by +0.8%. We are forecasting a three year EBIT CAGR of 3.4% for MTS, with Hardware at 8.7%, driving ~90% of earnings growth out to FY24.”

What about the rest?

Elsewhere, analysts at Credit Suisse and Morgan Stanley are a touch more bullish than Goldman Sachs.

This morning Credit Suisse retained its outperform rating and lifted its price target to $4.16, whereas Morgan Stanley retained its overweight rating and increased its price target to $4.15.

This could mean that the Metcash share price still has a little further to run despite hitting a multi-year high today.

The post Bullish brokers drive Metcash (ASX:MTS) share price to multi-year high appeared first on The Motley Fool Australia.

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• Which ASX 200 shares are standing tall after today’s volatile session?
• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
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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. 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 clawed its way up from a -0.91% fall by lunchtime to a close of -0.08%.

Most sectors opened in red this morning, as new COVID-19 cases around Australia continued to pressure states into lockdown.

The S&P/ASX 200 Info Tech (INDEXASX: XIJ) index was the only sector in the green this morning, extending its gains to 0.66% by market close.

Pleasingly, sectors including healthcare, consumer staples, consumer discretionary and financials managed to finish Tuesday’s session in positive territory — but only barely.

With the market moving in a volatile fashion, let’s take a look at which ASX 200 shares managed to stand tall.

Top performing ASX 200 shares today

Metcash Limited (ASX: MTS) was the best performing ASX 200 share on Tuesday, up 5.69% to $3.90.

The wholesale distributor announced its full-year results on Monday. They highlighted a solid 9.9% increase in revenue to $14.3 billion and a $175 million off-market share buy-back.

The Lynas Rare Earths Ltd (ASX: LYC) share price was also pushing higher, up 3.47% to $5.67. Shares in the world’s second-largest rare earth producer have been chopping back and forth around the mid $5 level since the company’s quarterly results in April.

Aside from Metcash and Lynas, there was a strong tech theme among the top performing ASX 200 shares.

High profile players including WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX) and Xero Ltd (ASX: XRO) all managed to eke out gains between 0.90% and 1.43%.

The ASX 200 tech index has staged a resurgence in June, after sliding about 26.4% between 10 February and 13 May.

The post Which ASX 200 shares are standing tall after today’s volatile session? appeared first on The Motley Fool Australia.

More reading

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• Up 63% this month, Australian Strategic Materials (ASX:ASM) share price rockets higher
• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher

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. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Washington H. Soul Pattinson (ASX: SOL) share price set a record high today, reaching a top of $33.62 intraday, before dropping down to $33.50 at market close.

Today’s trading volume of 348,200 is also 60% more than the 20 day average of 316,580 shares changing hands.

With no specific news out today, let’s take a look at what the diversified investment house has been up to recently.

Recent news

On 22 June 2021, the company announced its merger with investment manager Milton Corporation Limited (ASX: MLT).

The proposed merger will see Milton shareholders given a combination of Soul Pattinson’s scrips and three fully franked dividends worth up to 45 cents per share.

Combined, the offered scrips and dividends are worth $6 per share. Together, the two companies will create an ~$10.8 billion investment company. 

The Soul Patts share price had a muted reaction on the day of the news, lifting by 0.83%, but the following day rocketed by a substantial 8.46%.

Soul Pattinson share price snapshot

Soul Patts shares have a 52-week trading range of $19.10–$33.62. The company’s 52-week low occurred on 29 June 2020.

At the time of writing, the Soul Patts share price has climbed 10.36% year-to-date, and has jumped 9.7% over the past 5 days.

These capital gains have outpaced the S&P/ASX 200 Index (ASX: XJO)’s year-to-date return of 9.2%.

With a share price of $33.50 at the time of writing, Soul Pattinson has a market capitalisation of $7.92 million, and a price-to-earnings-ratio (P/E) of 8.09.

The post Soul Patts (ASX: SOL) share price hits all-time high appeared first on The Motley Fool Australia.

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• ASX 200 jumps, Soul Patts rises, Openpay soars
• Soul Patts (ASX:SOL) share price climbs higher on Milton merger

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 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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We all know the ASX as a place to trade shares in some of Australia’s largest companies, but what about small-cap stocks?

The truth is that there are many small-cap shares you may not have even heard of before on the ASX. While these companies come with more risk to invest in than larger companies, often there’s greater opportunity for high growth.

These four ASX-listed small caps might not be as well known as their larger counterparts. However, their rapid sales growth in recent years is worth pointing out. Here they are…

4 ASX small-cap shares with high growth

Alicidion Group Ltd (ASX: ALC)

Alcidion is a small-cap company that offers a range of software products for use in the healthcare sector. Now boasting a market capitalisation of $440 million, the Melbourne-based company has undergone a period of significant growth over the past few years.

Over the past five years, Alcidion’s sales have grown an impressive 435% as it acquired complementary companies and expanded its product suite. More recently, contracted revenue to be recognised in FY21 was $24.7 million — exceeding the previous year by 33%.

This ASX small cap share is currently up 118% year-to-date (YTD).

Family Zone Cyber Safety Ltd (ASX: FZO)

Next on the list is Family Zone Cyber Safety. This small-cap company offers a range of products and services catering to the cybersecurity needs of families as well as schools — including cyberbullying protection for kids, parental monitoring software, as well as internet filtering solutions.

During the past five years, Family Zone’s revenue has increased from around $5,000 to more than $7 million. The company hopes to keep its high-growth engine running in the United States following the $5.8 million acquisition of Net Ref.

Family Zone is currently up 23.5% YTD with a market capitalisation value of $239 million at present time.

Calix Ltd (ASX: CXL)

Shifting gears, Calix has been developing patented solutions to address global sustainability challenges. These solutions range from wastewater treatment, CO2 mitigation, and renewable technologies.

In terms of its five-year growth trajectory, Calix’s revenue has increased 468% to $19.6 million during the 2020 calendar year. The underlying mission of the company is well-positioned if the environmental, social, and governance (ESG) trend continues.

For example, Adbri Ltd (ASX: ABC) entered into an agreement with Calix in March to co-develop a calciner for lime production with CO2 capture. A potential crackdown on emissions in the future would necessitate the kind of technology Calix works to develop.

This ASX small cap share is up 151% YTD with a market cap of $409 million.

Bigtincan Holdings Ltd (ASX: BTH)

That brings us to the last company on the list… Bigtincan. This small Australian company is a provider of sale enablement software. Its platform gives sales teams the toolset to increase performance and improve customer interactions.

In the last 5 years, Bigtincan’s revenue has grown roughly 409% to $35.7 million during the 2020 calendar year. This has been achieved via numerous acquisitions, each expanding the company’s product offering and client base.

Earlier this month Bigtincan announced the acquisition of augmented and virtual reality systems company, Vidinoti. At the same time, the software provider announced it had hit $53 million in annual recurring revenue (ARR).

Despite ARR growing 48% year-over-year, this ASX small cap share has only gained 5.5% YTD. At the time of writing, Bigtincan’s market cap is $462 million.

The post 4 fast-growing ASX small cap shares that you may have overlooked appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Alcidion Group Ltd and BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Alcidion 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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Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s share trading platform CommSec tells us the most popular US shares that its Australian user base has been buying and selling during the previous week.

Since CommSec is one of the most used ASX brokerage platforms in the country, its data can give us an interesting insight into the minds of Aussie investors. So here are the top 10 US shares that CommSec users were trading last week. This week’s data covers June 21-25.

Tesla back on top

1. Tesla Inc (NASDAQ: TSLA) – representing 4% of total trades with a 59%/41% buy-to-sell ratio.
2. GameStop Corp. (NYSE: GME) – representing 3.7% of total trades with a 93%/7% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.3% of total trades with a 56%/44% buy-to-sell ratio.
4. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.3% of total trades with a 65%/35% buy-to-sell ratio.
5. Nio Inc. (NYSE: NIO) – representing 1.3% of total trades with a 73%/27% buy-to-sell ratio.
6. Microsoft Corporation (NASDAQ: MSFT)
7. ContextLogic Inc (NASDAQ: WISH)
8. Alphabet Inc Class C (NASDAQ: GOOG)
9. Alibaba Group Holding Ltd (NYSE: BABA)
10. Amazon.com, Inc. (NASDAQ: AMZN)

What can we learn from these trades?

That electric vehicle and battery manufacturer Tesla has regained its most popular US share crown, for starters. For many, many months, it seemed nothing could knock Tesla shares off of their perch on top of the most traded US shares list.

But over the past month or so, we’ve seen ‘meme stocks’ like AMC and GameStop usurp Tesla at the top of the pile. No longer it seems. Tesla is back on top with 4% of total trades last week.

This might be a by-product of the Tesla share price’s recent performance. Tesla shares are up more than 10% over the past month and nearly 15% since 15 June.

Turning to other shares, it seems that meme stocks remain popular, even if they’re not at the top of the pile. We continue to see interest in GameStop, AMC, Nio and ContextLogic. That’s despite GameStop losing around 30% of its value since 9 June.

But AMC continues to rocket. It’s still up 35% since 10 June and 81% over the past month. Other than these ‘hot stocks’, we continue to see solid interest in the US blue-chip tech companies like Apple, Alphabet, Microsoft and Amazon.

The US-listed Chinese giant Alibaba also saw an uptick in popularity for Aussie investors last week.

The post Tesla back on top as the most popular US share for ASX investors appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares) and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, NIO Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. 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 a retiree, you might be looking for a way to generate an income after the interest rates on traditional interest-bearing investment products collapsed over the last few years.

One way you could potentially do this is by investing in dividend shares.

Luckily, the Australian share market is home to a large number of them. But which ones should you buy? Here are two that have been rated as buys recently:

Coles Group Ltd (ASX: COL)

The first high quality option for retirees to consider is Coles. It could be a top option for a retirement portfolio due to its defensive qualities, attractive dividend yield, and solid long term growth prospects.

In respect to the latter, Coles has been tipped for growth over the 2020s thanks to its long track record of delivering same store sales growth, strong market position, and its refreshed strategy. This strategy is embracing automation, cutting costs, expanding its online business, and supporting margin expansion.

A recent note out of Goldman Sachs reveals that its analysts are forecasting consistent dividend growth for the foreseeable future. The broker has pencilled in fully franked dividends per share of 62 cents, 67 cents, and then 73 cents over the next three financial years. Based on the latest Coles share price of $17.02, this will mean yields of 3.6%, 3.9%, and 4.3%, respectively.

Goldman Sachs has a buy rating and $19.40 price target on its shares.

Goodman Group (ASX: GMG)

Another quality option for retirees to consider is Goodman Group. It is a property company that owns, develops, and manages industrial real estate across several countries. This includes properties with exposure to markets with very favourable outlooks such as ecommerce thanks to deals with Amazon and DHL.

Given how these assets are predicted to be in demand for a long time to come, it bodes well for income and distribution growth in the future. As does it development pipeline, which is filled with a large number of very promising projects.

Citi is positive on Goodman and has a buy rating and $22.10 price target on its shares. The broker is forecasting dividends per share of 30 cents, 32 cents, and 35 cents over the next three years. This represents yields of 1.4%, 1.5%, and 1.7%, respectively.

The post 2 high quality ASX 200 shares for a retirement portfolio appeared first on The Motley Fool Australia.

More reading

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• Why the Coles (ASX:COL) share price is pushing higher today

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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Star Entertainment Group Ltd (ASX: SGR) endured a lacklustre day after an announcement by the company that it will be impacted by Queensland’s lockdown.

At the closing bell, the Star share price was down by 0.27% to $3.63.

Let’s take a look at the lockdown facing parts of Queensland and how it could affect Star Entertainment.

Home you go, Queensland

Queensland’s Premier Annastacia Palaszczuk announced at a press conference earlier today parts of the state will go into lockdown from 6pm tonight until 6pm on Friday.

Southeast Queensland, Townsville, Magnetic Island, and Palm Island will be entering a 3-day lockdown after a travelling hospital worker was found to have COVID-19.

The state’s stay-at-home order will take place while Greater Sydney is undergoing a 2-week lockdown.

The current lockdowns have already caused many ASX travel shares to drop, and investors will be weighing up the possible impact on Star Entertainment.

Star’s lockdown woes

Star Entertainment’s businesses are based in 3 of Australia’s east-coast cities, which are normally a blessing for the hotel and casino operator.

Unfortunately, given the current COVID-19 situation, those cities are Sydney, Brisbane, and the Gold Coast.

Yesterday, Star restated its Sydney casino and hotel, The Star Sydney, will be closed to the public until the end of Greater Sydney’s lockdown. However, it will continue to operate limited hotel facilities.

Sydney’s lockdown was initially for a 7-day period, but it has since been extended. It will now last for a fortnight and end on 9 July.

The company has committed to continuing to pay staff at its Sydney business for the 2-week period.

Today, Star announced it will be closing its remaining casinos at 6pm tonight. The Star Gold Coast and Brisbane’s Treasury Casino & Hotel are expected to reopen on Friday evening. However, there is no guarantee the lockdown will end then.

The company has also committed to keep paying its Queensland-based staff for the duration of the lockdown.

Star Entertainment share price snapshot

The Star Entertainment share price hasn’t been noticeably affected by news of lockdowns. However, its shares have slightly fallen each day since it acknowledged Sydney’s most recent lockdown after close on 25 June. Star shares are currently trading for 1.63% less than they were then.

The Star share price has dropped 2.9% since the start of 2021. However, it’s 33.8% higher than it was this time last year.

The company has a market capitalisation of around $3.4 billion, with approximately 946 million shares outstanding.  

The post Star (ASX:SGR) share price struggles following lockdown news appeared first on The Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty ho-hum kind of day today. At the time of writing, the ASX 200 is down 0.14% to 7,297 points. Let’s check out the 3 ASX 200 shares that are topping the list of trading volumes today:

3 ASX 200 shares making moves today

Telstra Corporation Ltd (ASX: TLS)

ASX telco Telstra is the first ASX 200 share with a high trading volume to note today. So far, a hefty 9.19 million TLS shares have changed hands on the share market. This could be a result of the movements of the Telstra share price today. Telstra opened at $23.59 this morning but quickly fell all the way to $3.55 soon after, only to rebound back to $3.59 where it currently stands. This volatility might be behind such a large volume of Telstra shares trading today.  My Fool colleague James looked at the kind of dividend investors can expect from Telstra right now this afternoon.

Boral Limited (ASX: BLD)

Construction company Boral is another ASX 200 share that is making its way around the ASX boards today. At the time of writing, a substantial 9.65 million Boral shares have swapped owners on the markets today. Like other shares in its sector, Boral has been caught up in the market’s malaise today and is currently down 0.14% to $7.34 a share after briefly dipping as low as $7.30 just after open this morning.

This may be related to Boral’s rejection yesterday of a revised takeover bid from Seven Group Holdings Ltd (ASX: SVW). Seven upped its offer from $6.50 a share to $7.40 yesterday. Like its former offer, this latest bid was also swatted away by Boral’s board, who still think Seven is undervaluing the company.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

Mortgage insurance provider Genworth takes the crown as the most traded ASX 200 share today, pipping the usual occupant Pilbara Minerals Ltd (ASX: PLS). A huge 14.63 million Genworth shares have been bought and sold today. This is almost certainly the result of what has happened to the Genworth share price itself. At the current time, Genworth shares a down a very nasty 13.58% to $2.20 a share.

What happened? Well, Commonwealth Bank of Australia (ASX: CBA) has come out today and said that it wants a new proposal from Genworth regarding the exclusive Lenders Mortage Insurance agreement that the two companies share before the current agreement expires on 31 December 2022. This has clearly spooked the markets and is probably the reason why Genworth shares are flying around the ASX today.

 

The post Here are 3 ASX 200 shares making market moves today appeared first on The Motley Fool Australia.

More reading

• Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking
• ASX construction shares like Brickworks (ASX:BKW) are falling today
• Should you buy Telstra (ASX:TLS) shares for its dividend yield?
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price has been an exceptionally poor performer in 2021.

Since the start of the year, the fresh milk and infant formula company’s shares have crashed 47% lower.

This follows the further deterioration in the company’s performance, which led to management downgrading its earnings guidance for a fourth time during the financial year.

Is the worst over for the a2 Milk share price?

One leading broker that appears to believe the worst is behind the a2 Milk share price now is Bell Potter.

According to a recent note, the broker has put a buy rating and $8.50 price target on the company’s shares. Based on the a2 Milk share price of $6.11, this implies potential upside of 39% over the next 12 months.

What did the broker say?

Bell Potter appears to believe that investors should look beyond the company’s short term headwinds and focus on its long term potential. Particularly given its opportunity to expand its offline footprint in the lucrative China market.

The broker explained: “At its core we see A2M as a business that, once MVM [Mataura Valley Milk] is consolidated, has baseline revenue of ~NZ$1.4-1.5Bn and EBITDA of ~NZ$300m, with a pathway to being a ~NZ$1.7Bn revenue business generating ~NZ$445m in EBITDA on its existing China offline distribution footprint (with a materially higher portion of direct China sales than in the past).”

“Expansion in China offline distribution points towards ~30k, could see A2M lift to a ~NZ$2bn top line business generating ~NZ$560m in EBITDA. As such we do not see FY21e revenue or earnings as reflective of where the business will operate once supply chains have stabilised and retain our Buy rating,” it added.

In light of this, the abject performance of the a2 Milk share price in 2021 could potentially be a buying opportunity for brave investors.

The post Is the a2 Milk (ASX:A2M) share price a bargain buy? 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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