Tag: Motley Fool

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 7,360.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Wednesday following a relatively positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points higher this morning. On Wall Street, the Dow Jones was flat, the S&P 500 rose 0.1% and the Nasdaq was flat.

Oil prices soften

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch following a soft night for prices. According to Bloomberg, the WTI crude oil price is down 0.1% to US$80.77 a barrel and the Brent crude oil price has fallen 0.1% to US$84.68 a barrel. Strong economic data out of China was offset by rate hike concerns.

Regis Resources named as a buy

The recent weakness in the Regis Resources Ltd (ASX: RRL) share price may have created a buying opportunity. That’s the view of analysts at Bell Potter, which have a buy rating and $2.77 price target on the gold miner’s shares. While disappointed with its quarterly update, the broker notes that “RRL is one of the largest ASX gold producers and we remain attracted to its all-Australian asset portfolio and organic growth options which are unique at this scale.”

Gold price higher

ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$2,017.2 an ounce. The precious metal rose after the US dollar and bond yields eased.

Soul Patts goes ex-dividend

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price is likely to trade lower on Wednesday. That’s because the investment house’s shares are due to trade ex-dividend this morning for its interim dividend of 36 cents per share. This will be paid to eligible shareholders next month on 12 May.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s the forecast for popular ASX 200 mining shares from UBS
• Why has the shine come off ASX gold shares this week?
• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today
• Macquarie says changes to this tax could be a red flag for Woodside shares
• 5 things to watch on the ASX 200 on Tuesday

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/RTt4Lvy

While a generous dividend yield is always welcome when you’re an income investor, a generous yield that can grow is even better.

The good news is that there are a couple of ASX dividend shares that are expected to increase their dividends in the near future.

Another positive that could sweeten the deal even further for investors is that analysts also believe their shares can rise meaningfully from current levels.

Which shares? I hear you ask. Well, let’s take a look:

Universal Store Holdings Ltd (ASX: UNI)

Morgans is a fan of this fashion retailer. This is due to its exposure to younger consumers that are less impacted by rising interest rates.

The broker currently has an add rating and $6.85 price target on its shares. Based on the latest Universal Store share price of $5.00, this suggests that its shares could rise 37% from current levels.

As for dividends, the broker is expecting the company to be in a position to increase its fully franked dividend to 30 cents in FY 2023 and then 35 cents in FY 2024. This implies yields of 6% and 7%, respectively, for investors over the next couple of years.

Westpac Banking Corp (ASX: WBC)

Over at Goldman Sachs, its analysts are feeling positive about Australia’s oldest bank. They believe it is well-placed in the current environment. This is thanks to its cost-cutting plans and potential net interest margin improvements.

The broker currently has the bank on its conviction list with a buy rating and $27.74 price target. Based on the current Westpac share price of $22.28, this implies potential upside of almost 25% for investors over the next 12 months.

In addition, the broker is expecting the banking giant to increase its fully franked dividend to 147 cents per share in FY 2023 and then to 156 cents per share in FY 2024. This will mean yields of 6.6% and 7%, respectively.

The post 2 ASX stocks with a dividend bump coming appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• I’d buy 12,000 Westpac shares for $150 in monthly passive income
• Harnessing the power of dividend investing: 2 high-yield ASX shares analysts say are buys
• Passive income alert! Buy these ASX 50 dividend shares now: analysts
• Here’s how I’d aim for $50 a week in passive income from ASX 200 shares
• Investor or depositor? Warren Buffett sounds off on banking crisis

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/P8IkYLW

The S&P/ASX 200 Materials Index (ASX: XMJ) climbed 0.19% today, but one ASX mining share ascended far higher.

The OD6 Metals Ltd (ASX: OD6) share price rocketed 61% in today’s trade from 29.5 cents to a high of 47.5 cents. But it then pulled back to close the day at 42 cents, a 42% gain.

Let’s take a look at why this rare earths explorer soared today.

What’s going on?

OD6 Metals is exploring the Splinter Rock and Grass Patch rare earth elements projects near Esperance in Western Australia.

In today’s news, the company announced it had discovered “bumper rare earth grades” and “extensive thicknesses” at the Splinter Rock project.

Assay results show higher grades and greater thickness than previously found in the initial drilling program.

Total Rare Earth Oxides at grades of up to 6,605 parts per million (ppm) were discovered, including clay thickness at high grades between 20 to 80 metres.

Results included:

• 69 metres at 1483ppm TREO (21.1% Magnet REO) at drill hole SRA0227
• 66 metres at 1516ppm TREO (20.2% Magnet REO) at SRA0226
• 55 metres at 1781 ppm TREO (23.2% Magnet REO) at SRACO218

Commenting on the news, managing director Brett Hazelden said:

These exceptional drill results represent some of the highest rare earth grades, over some of the thickest intersections seen in an Australian clay hosted rare earth project.

With thicknesses of 20m to 80m, grades in excess of 1,000ppm Total Rare Earths, and consistency across several kilometres of width, the Splinter Rock project has emerged as a globally significant discovery.

Overall, 74 of the 83 drill holes returned “significant grades” and thickness. A phase three 188-hole drill program will start in the second quarter of 2023.

Share price snapshot

The OD6 Metals share price has surged 110% in the last year. In the past month alone, the company’s share price has soared 127%.

This ASX mining share has a market capitalisation of more than $23 million based on the current share price.

The post Why did this ASX mining share explode 60% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here’s the forecast for popular ASX 200 mining shares from UBS
• A bull market is coming and I’m desperate to buy cheap ASX 200 stocks before they rocket
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why has the shine come off ASX gold shares this week?

Motley Fool contributor Monica O’Shea has positions in OD6 Metals. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/zeWw8Kn

Analysts at UBS have provided an update on their predictions for a number of ASX 200 mining shares.

These include BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG), Northern Star Resources Ltd (ASX: NST), IGO Ltd (ASX: IGO), Coronado Global Resources Inc (ASX: CRN), Gold Road Resources Ltd (ASX: GOR), and Pilbara Minerals Ltd (ASX: PLS)

Let’s take a look at the outlook for these ASX 200 mining shares.

What’s ahead?

ASX 200 mining shares BHP, Rio Tinto, and Fortescue now rate as sells by UBS analysts, The Australian reported.

The analysts, quoted by the publication, said:

Most commodities remain elevated versus cost and incentive prices, but physical markets are still balanced or tight.

UBS rates Coronado and Gold Road as buys, while it has cut Northern Star Resources to a sell. Analysts have placed a $2 price target on Coronado, implying a nearly 25% upside based on its current share price.

Meanwhile, data out of China shows the country’s economy lifted 4.5% in the first quarter, the highest rate of growth in a year, CNBC reported. China is the largest importer of iron ore in the world.

However, UBS is concerned about iron ore prices but believes gold, coal, and lithium are more likely to remain elevated in the medium to long term. Analysts said:

In our opinion, iron ore is structurally challenged while gold, lithium and high-quality coal will be higher for longer; base metals have attractive long-term fundamentals and leverage to China reopening in 2H23.

Pilbara Minerals has also been upgraded to a buy, while IGO also has a buy rating with UBS. The broker tips lithium demand to slip 5-15% in the short term but the lithium price to rise in the long term by 20%.

Morgans has also recently placed an add rating on Pilbara Minerals with a $5.30 price target, as my Foolish colleague James reported today. Further, Goldman Sachs has recently put a buy rating on IGO shares.

ASX 200 mining share price snapshot

The BHP share price has slipped 0.48% in a year, while Fortescue shares have risen 3.93% and Rio Tinto shares have edged 0.93% higher.

The Pilbara Minerals share price has soared 35% in a year, while IGO shares have dropped 0.64%.

Northern Star Resources shares have gained 22% in a year, while Gold Road Resources shares have climbed 5%.

Finally, Coronado Global Resources shares have lost 31% in the past year.

The post Here’s the forecast for popular ASX 200 mining shares from UBS appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why Core Lithium, Neuren, Norwest, and Pilbara Minerals shares are pushing higher
• BHP clears final hurdle to acquire all OZ Minerals shares. What’s next for investors?
• Morgans says the Pilbara Minerals share price can rise 40%
• Here are 3 ASX 200 lithium shares to buy now according to brokers

from The Motley Fool Australia https://ift.tt/lVdbEBc

The S&P/ASX 200 Index (ASX: XJO) has had a productive start to 2023, despite a notable slump amid turmoil in the banking space last month.

The index is up 5.8% year to date, trading at 7,346.4 points at the time of writing ­– less than 300 points off its all-time highest close of 7,628.9 points.

If history is anything to go by (and I think it is) the index will likely hit fresh heights when the next bull market occurs.

That’s why I’m keen to snap up cheap ASX 200 shares now and profit when the market next takes off.

I’m long-term bullish on the ASX

Economist Benjamin Graham is widely quoted as having said:

In the short run, the market is a voting machine but in the long run it is a weighing machine.

In other words, day-to-day, the market runs on popular sentiment. But in the long run, it will weigh a company largely on its earnings.

Right now, sentiment and (commonly) earnings are lower than they’ve been in recent memory amid high inflation and the resulting 10 consecutive rate hikes handed down by the Reserve Bank of Australia (RBA) in the lead-up to April.

And Australia is far from unique. Indeed, many experts are tipping us to dodge a recession likely to be felt by other economies around the globe.

Still, one common assumption is when the dust settles, inflation is tamed, and rates begin to fall, markets – including the ASX – will bounce back with newfound strength.

I don’t know if that’s what will happen, or when the next bull market might occur. However, I’m sure history will repeat itself and the ASX will soar into bull territory in the future.

Until then, I plan to snap up cheap ASX 200 shares now to cash in on the ASX’s eventual surge. Thankfully, there are heaps to choose from.

3 ASX 200 stocks that could be trading cheap right now

ASX 200 electronics retailer JB Hi-Fi Ltd (ASX: JBH) is on my radar at the moment. The stock has tumbled 11% over the last 12 months, potentially due to cost-of-living concerns. Broker Citi is among its proponents – tipping the JB Hi-Fi share price to lift around 22% to $55. I personally like the look of the retailer’s 10.5 price-to-earnings (P/E) ratio, courtesy of CommSec, and 7.7% dividend yield.

Also offering an attractive P/E ratio of around 9.6 and a dividend yield of approximately 6.3% are Stockland Corporation Ltd (ASX: SGP) shares. The company deals in real estate development and commercial property. I agree with Citi analysts, again. I think the market has likely been too tough on the stock amid rising rates. The broker forecasts the stock to rise 9.1% to $4.60.

Finally, I’ve got my eye on ASX 200 travel share Corporate Travel Management Ltd (ASX: CTD). The company understandably suffered through the COVID-19 pandemic. However, I think it used its time well, acquiring Travel & Transport and Helloworld Travel Ltd (ASX: HLO)’s Australian and New Zealand corporate and entertainment leg. It expects to recover fully in financial year 2024.

Of course, I have a good amount of due diligence to complete before I decide if these ASX 200 stocks make sense in my portfolio – just because a share appears cheap doesn’t mean it’s worth buying. As billionaire investor Warren Buffett says:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

But I think the trio all have the potential to record gains when the market takes off. Though, nothing in the investing world is guaranteed.

The post A bull market is coming and I’m desperate to buy cheap ASX 200 stocks before they rocket appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Leading brokers name 3 ASX shares to buy today
• These are the 10 most shorted ASX shares this week
• Here are 2 ASX 200 dividend shares to buy with 6%+ yield: analysts
• Brokers name 3 ASX shares to buy now
• 11 times your money? Yes, it’s possible (we did it)

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 positions in and has recommended Helloworld Travel. The Motley Fool Australia has positions in and has recommended Helloworld Travel. The Motley Fool Australia has recommended Corporate Travel Management and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NlKLOey

It’s been a disappointing day for S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. After the pleasing start to the trading week we saw yesterday, the ASX 200 has taken a turn for the worse this Tuesday. At the time of writing, the Index is currently nursing a hefty 0.48% loss. That drags the ASX 200 back below 7,350 points. 

But let’s not let that get us down. So instead, let’s turn to the shares that are making waves on the ASX 200’s share trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Pilbara Minerals Ltd (ASX: PLS)

First up today is a familiar face in ASX 200 lithium stock Pilbara Minerals. So far this session, a sizeable 36.56 million Pilbara shares have changed hands as it currently stands. There hasn’t been any news out of Pilbara itself today. But, as my Fool colleague James covered earlier, the company has still been the recipient of some love from an ASX broker.

UBS has upgraded Pilbara to a buy, with a share price target of $4.60. Pilbara shares have surged today, presently enjoying a 4.1% boost to $3.96 each. It’s probably a combination of these events that has resulted in so many shares flying around.

Core Lithium Ltd (ASX: CXO)

Next, we have another ASX 200 lithium stock in Core Lithium, with a notable 37.07 million shares finding a new home so far. We have had some big news from Core today that could explain this volume we see. As we covered this morning, Core has just revealed to investors that its flagship Finniss Lithium Operation has had its mineral resource estimate lifted by a pleasing 62% to 30.6 million tonnes of lithium oxide.

Investors appear delighted with this news, judging by the fact that Core shares have gained a whopping 7.24% to 99 cents each.

Sayona Mining Ltd (ASX: SYA)

Third and finally today, let’s discuss yet another ASX 200 lithium share in Sayona Mining. This Tuesday has had a chunky 39.12 million Sayona shares bought and sold on the share market thus far. Unlike the other two lithium stocks on this list, Sayona is having a rather awful day.

The Sayona share price is presently down by a nasty 6.05% at 20 cents. There has been no fresh news out of Sayona today, although the company did rocket by 10% yesterday. So maybe the market is doing a bit of ‘rubber-banding’ here. Either way, this large selloff is probably why Sayona is boasting such elevated trading volumes this session.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Core Lithium, Neuren, Norwest, and Pilbara Minerals shares are pushing higher
• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today
• Should I invest in the ASX 200 or the S&P 500?
• Up 80% in a month, Liontown share price smashes all-time high on Tuesday
• Core Lithium share price leaps 5% on ‘fantastic outcome for shareholders’

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/H9rczRO

After being on a glittering run in recent weeks, the shine has well and truly come off ASX gold shares this week.

For example, over the last two trading sessions, the S&P/ASX All Ords Gold index has lost 4% of its value.

What’s going on with ASX gold shares?

There have been a few catalysts for the weakness in the gold sector this week.

Firstly, it is worth acknowledging that ASX gold shares have been on fire this year. So much so, even after this week’s pullback, the S&P/ASX All Ords Gold index is up over 26% year to date. That’s many times greater than the return of the ASX 200 index.

In light of this, there’s potentially been a bit of profit taking going on recently, especially after the gold price pulled back in recent days amid concerns that interest rate hikes may not be over after all.

While rate hikes can cause economic instability, which is good for a safe haven asset like gold, they also boost the appeal of risk-free treasury yields. This can ultimately reduce the appeal of the precious metal.

What else?

In addition to the above, there has been some company-specific news this week that has led to a couple of ASX gold shares taking larger than average tumbles.

For example, St Barbara Ltd (ASX: SBM) shares have been sold off this week after returning from a suspension. Investors don’t appear to like its plan to sell its Leonora assets to Genesis Minerals Ltd (ASX: GMD). This is instead of merging their operations as previously planned.

Genesis believes the acquisition will position it as a gold industry leader with a dominant position in Western Australia’s world-class Leonora District. St Barbara will be left with its Atlantic and Simberi operations.

Elsewhere, the Regis Resources Ltd (ASX: RRL) share price crashed down to earth on Monday after the gold miner released its quarterly update.

Regis revealed that it delivered gold production of 103,728 ounces during the quarter, which was well short of expectations. This led to Regis Resources revising its full-year production guidance lower.

All in all, a tough start to the week for ASX gold shares. But I’m sure investors that have been holding them since the start of the year won’t be too disappointed!

The post Why has the shine come off ASX gold shares this week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today
• 5 things to watch on the ASX 200 on Tuesday
• Why AMA, New Hope, Regis Resources, and St Barbara shares are dropping
• ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why
• Here are the top 10 ASX 200 shares 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 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/khvnHmd

Finding an investment that ends up delivering a return of more than 100% in six months is remarkably rare. Yet, that’s exactly what has occurred with the Weebit Nano Ltd (ASX: WBT) stock price.

What is even more extraordinary is it would have been 246% if I was writing this 39 days ago. The resistive random-access memory (ReRAM) developer attracted strong buying throughout January and February, as shown below.

During this time, Weebit entered the S&P/ASX 300 Index (ASX: XKO) and drew closer to its commercialisation efforts. Notably, the company taped out its first 22-nanometre demo chip for manufacturing in January, inching closer to a viable product.

I knew of Weebit Nano six months ago, albeit not one I closely watched, but chose not to buy (or even add to my watchlist). Turns out the choice meant missing out on a 130% return in a small space of time.

Why I didn’t buy Weebit Nano stock

There will always be plenty of missed opportunities as an investor. I tend not to dwell on missing out, but it doesn’t mean there aren’t insights that we can gain by undertaking a little introspection.

Furthermore, the most important assessment to make is whether your decisions are congruent with your investment strategy. If passing on a stock that ends up returning 500% means sticking within the bounds of your overall risk tolerance, that’s a win in my books.

When I ask myself the question: Why didn’t I buy Weebit Nano stock six months ago? there are a couple of reasons that immediately spring to mind.

The most obvious reason why I didn’t give Weebit the time of day is its early product development stage. I commend the team for how far they have come so far. However, the company is still yet to prove the economic viability of its chips.

And, yes, I understand that it’s commonplace that these types of businesses typically work towards a buyout rather than operating commercially on their own.

Though, it doesn’t change the fact that I believe Weebit is still between the proof of concept and proof of market stage — situated too high along the risk curve, depicted below, for my liking.

Secondly, I’ll be the first to admit my knowledge of resistive RAM is sparse. In my opinion, the smaller you go in company market capitalisation, the deeper the knowledge needed in the relevant industry to have an edge.

Unfortunately, I’m not up with the latest in advanced memory technologies. It sits outside my area of competence. Yet another reason why the Weebit Nano stock didn’t make it onto my radar six months ago — let alone buy it.

What I would need to see

While I’m doubtful that Weebit Nano would ever make it into my portfolio due to my lack of expertise on the subject matter, there are conditions for potentially making an exception.

Firstly, the chip developer would need to fully commercialise its memory technology. That means drawing meaningful operational revenue from the licensing of its intellectual property or direct sales of its memory chips.

From there, I could at least analyse the unit economics of the technology to project whether it could scale to profitability. Until then, any investment in Weebit Nano stock is highly speculative in my opinion.

That’s fine if speculation is the aim. However, it’s not what I’m looking for in a long-term investing strategy.

The post I could have doubled my money in 6 months owning Weebit Nano stock. Why didn’t I? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ords shares going gangbusters on Tuesday
• Why Block, Mincor, Race Oncology, and Weebit Nano shares are sinking today
• Why is the Weebit Nano share price sinking 12% today?
• Why is the Weebit Nano share price frozen?

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 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/JMpOfQ5

It’s not too often an ASX exchange-traded fund (ETF) rises 21% in an entire year. But 21% over just one month? That is a rare occurrence indeed. 

Sure, April has been a great month for ASX shares and, by extension. many ASX ETFs as well. As it currently stands, the S&P/ASX 200 Index (ASX: XJO) is up a healthy 2.4% in April so far.

But let’s talk about the BetaShares Crypto Innovators ETF (ASX: CRYP).

Crypto Innovators units were going for $2.33 each at the start of April. But today, this ASX ETF is asking $2.83 per unit. That means that this ETF has gained a whopping 21.5% or so over the past two-and-a-half weeks. That’s a gain that exceeds the returns of the ASX 200 by almost ten-fold.

So what on earth is going on here that has allowed this ETF to give its investors such a lucrative return in such a short space of time, no less?

Well, to answer that, let’s dig into what this ETF invests in.

The BetaShares Crypto Innovators ETF is a fund that is designed to track a basket of global companies that are all involved in the cryptocurrency sector.

We’ve all heard of cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). But with the crypto market maturing, there are now a bevvy of companies that facilitate the creation, exchange and use of these digital assets.

According to BetaShares, this fund “provides ‘picks and shovels’ exposure to the companies building crypto mining equipment, crypto trading venues, and other key services that allow the crypto economy to thrive”.

Some of the companies that this ETF is invested in include Riot Blockchain, Microstrategy Inc, Galaxy Digital Holdings Ltd and Coinbase Global Inc.

Why has this ASX cryptocurrency ETF risen 21% in April?

Since most of these companies derive their earnings from the cryptocurrency markets, their fortunes rise and fall alongside the markets of cryptocurrencies like Bitcoin and Ethereum themselves.

And over the past few months, cryptocurrencies have seen a dramatic resurgence in value. Just take the flagship crypto Bitcoin. It was only back in late December that Bitcoin was going for just US$16,500 each.

But today, that same digital token will set an investor back US$29,500. Yes, Bitcoin is up a whopping 77.5% in 2023, including by 9.15% over the past month alone. It’s a similar story with Ethereum and many other cryptocurrencies.

So with gains like this, it’s no wonder that the companies that are in these assets’ orbit are also seeing their valuations shoot through the roof.

To illustrate, Riot Blockchain stock is up a whopping 283% in 2023, and by almost 30% in April so far. Coinbase shares have risen by more than 100% in 2023, as has Microstrategy stock.

So it’s not hard to see why this ASX ETF is adding so much value recently. As long as cryptocurrency prices continue to surge, we can probably expect this ASX ETF to keep climbing too.

But don’t get too starry-eyed. The BetaShares Crypto Innovators ETF, while on fire lately, still remains down by more than 44% over the past year,  and by close to 80% since the all-time highs of $12 a share that we saw in late 2021:

The post This ASX ETF is up 21% in April so far appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why has the shine come off ASX gold shares this week?
• I could have doubled my money in 6 months owning Weebit Nano stock. Why didn’t I?
• Are these ASX All Ords shares ready to buy at fundamentally fire sale prices?
• Why Core Lithium, Neuren, Norwest, and Pilbara Minerals shares are pushing higher
• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today

Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Coinbase Global, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betashares Crypto Innovators ETF, Bitcoin, Coinbase Global, and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vbyztHu

ASX All Ords Index (ASX: XAO) shares are in the red today, down 0.5% in afternoon trading.

There are 500 companies comprising the ASX All Ords shares index.

Of those, 110 are trading below their book value, and some of them are trading at fire sale prices.

Let us explain.

What is book value?

A company’s book value reflects how much it is worth, according to its financial statements. 

It’s calculated by subtracting the value of a company’s liabilities from the value of its assets.

The price-to-book (P/B) ratio is the share price today divided by the book value per share.

You determine the book value per share by dividing the book value by the number of shares on issue. 

Say you’ve got an ASX All Ords company trading at $13 per share and its book value is $10. You divide 13 by 10 to get a P/B ratio of 1.3.

A P/B ratio of 1 indicates the ASX All Ords share is trading at fair value. Anything above 1 indicates the share is expensive in relation to its intrinsic worth. Below 1 indicates the share is relatively cheap.

Of course, many other factors determine the individual value of ASX All Ords shares.

Some of them are quantifiable, such as growing profits. Others are intangible, such as investor sentiment.

If ASX investors feel hopeful about a share, they will bid up the price. And vice versa.

As investors, we need to consider a range of factors to help us decide what we are happy to pay for the ASX All Ords shares we are interested in.

This is called fundamental analysis, which involves looking at a wide range of financial metrics to get a good overall picture of a company’s health and its future prospects.  

But we all need a starting point for our research.

After all, among ASX All Ords shares, we’ve got 500 companies to choose from! So, we need to separate them out somehow to determine which ones deserve a detailed investigation.

How to identify ASX All Ords shares trading below book value

Screening programs are terrific tools for achieving this task. Using them is far less time-consuming than calculating the book value of scores of ASX All Ords shares manually.

They are available through most brokerage platforms, and are accessible for free on some investing websites, too.

You can enter a few data points into a screening program, like a P/B ratio under 1 to ensure you don’t overpay for a share, or a market capitalisation above $2 billion if you want to avoid small-cap shares.

The screening program will then create a list of ASX All Ords shares that meet those criteria.

You can also find the book value for a share on your existing share trading platform.

Go to the share’s information page and look for a tab or link to financial information. Some sites show historical data, so you can see how the book value of an ASX share has changed over time. Helpful!

A consistently rising book value is always a good sign.

Which ASX All Ords shares are trading at fire sale prices?

S&P Global Market Intelligence data shows there is a mixed bag of ASX All Ords shares trading below their book value today.

Dominating those 110 shares are real estate investment trusts (REITs) and other ASX property shares.

The absolute standout is Unibail-Rodamco-Westfield CDI (ASX: URW) with a P/B ratio of 0.374.

It’s a European multinational commercial real estate company that specialises in shopping centres.

Here are other examples of ASX All Ords shares with a P/B ratio below 1 (from lowest to highest):

• Cromwell Property Group (ASX: CMW) shares (with a P/B ratio of 0.595)
• Centuria Office REIT (ASX: COF) shares (0.606)
• Charter Hall Long WALE REIT (ASX: CLW) shares (0.693)
• GPT Group (ASX: GPT) shares (0.724)
• Centuria Industrial REIT (ASX: CIP) shares (0.744)
• Charter Hall Retail REIT (ASX: CQR) shares (0.758)
• HomeCo Daily Needs REIT (ASX: HDN) shares (0.779)
• Scentre Group (ASX: SCG) shares (0.786).

There are also several ASX financial shares, including ASX bank shares, trading below book value.

Examples include:

• Buy now, pay later share Humm Group Ltd (ASX: HUM) (0.353)
• Virgin Money UK CDI (ASX: VUK) shares (0.339)
• Bank of Queensland Ltd (ASX: BOQ) shares (0.614)
• Pepper Money Ltd (ASX: PPM) shares (0.727)
• Bendigo and Adelaide Bank Ltd (ASX: BEN) shares (0.734)
• AMP Ltd (ASX: AMP) shares (0.798).

What do the experts say about these ASX All Ords shares?

Let’s take a look at a few recent broker ratings on these ASX All Ords shares.

Ord Minnett upgraded its rating on AMP shares to ‘accumulate’ with a 12-month share price target of $1.35. The AMP share price is currently $1.10, implying a potential upside of 23%.

Citi has a buy rating and a $5 price target on the Charter Hall Long WALE REIT. The share is currently $4.25, so there’s no huge upside expected in terms of growth. However, for dividend-focused investors, this share looks attractive, with Citi tipping dividend yields of 6.6% in FY23 and 6.85% in FY24.

UBS has a sell rating on Bendigo Bank shares with an $8 price target. This implies a 10% downside with the Bendigo Bank share price currently trading at $8.80.

Morgans has downgraded Bank of Queensland shares from an add rating to a hold rating. The team slashed their 12-month share price target on Bank of Queensland stock from $11 to $6.75. Ouch.

ASX All Ords shares are up 5.9% in the year to date and down 4% over the past 12 months.

The post Are these ASX All Ords shares ready to buy at fundamentally fire sale prices? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ords shares going gangbusters on Tuesday
• Why has the AMP share price rocketed 11% in a month?
• Why this broker downgraded Bank of Queensland shares ahead of its results
• Here are the top 10 ASX 200 shares today
• Here’s why Bank of Queensland shares are making news again this week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Humm Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/DRX8MWp