Tag: Motley Fool

I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today. This time around I have picked out the three ASX shares that are listed below:

BWP Trust (ASX: BWP)

This commercial property company has been a market beater over the last decade. This has been thanks to its growing portfolio of warehouses which are predominantly leased to hardware giant Bunnings Warehouse. A combination of inorganic and organic growth through rental increases has supported consistent earnings and distribution growth since 2011. This has led to BWP’s shares providing investors with an average total return of 13% per annum. This means a $20,000 investment 10 years ago would have grown to be worth ~$68,000 today.

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel booker’s shares have been a fantastic place to invest over the last 10 years, even if they are trading almost 50% lower than their record high. Thanks to the company’s successful growth through acquisition strategy and its focus on technology, Corporate Travel Management’s sales and earnings and grown rapidly. For example, in FY 2011, the company generated revenue of $46.8 million for the 12 months. Whereas today, it recently reported third quarter revenue of $52.4 million. That’s 12% more revenue in just three months and despite COVID-19 headwinds still weighing heavily on its performance. During the last 10 years, its shares have generated a total return of 26.2% per annum for investors. This would have turned a $20,000 investment into $200,000.

NEXTDC Ltd (ASX: NXT)

Another company which has come a long way over the last decade is data centre operator NEXTDC. Thanks to the structural shift to the cloud, a significant increase in demand for data centre services, and the expansion of its network footprint, NEXTDC has delivered consistently solid operating earnings and revenue growth over the period. This has resulted in a sustained upward trajectory for the NEXTDC share price, underpinning market-beating returns for investors. Since 2011, its shares have provided an average total return of 21.4% per annum. This would have turned a $20,000 investment into ~$140,000 in 2021.

More reading

• These ASX dividend shares offer generous fully franked yields
• Little ASX software share to explode once everyone wakes up: fundie
• Why Zip (ASX:Z1P) and these ASX growth shares are rated as buys
• 2 fantastic ASX 50 shares that could be in the buy zone
• Is the NEXTDC (ASX:NXT) share price in the buy zone?

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How to turn $20k into $200,000 with ASX shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eKbyoK

Weakness in the tech sector weighed heavily on the S&P/ASX 200 Index (ASX: XJO) last week. This led to the benchmark index falling a disappointing 66.6 points or 0.9% to end the period at 7,014.2 points.

Fortunately, not all shares on the index tumbled lower. Here’s why these were the best performing ASX 200 shares last week:

Omni Bridgeway Ltd (ASX: OBL)

The Omni Bridgeway share price was the best performer on the ASX 200 last week with an 11.1% gain. This gain was driven by the litigation funding provider announcing the settlement of the Wivenhoe class action with the State of Queensland and Sunwater for an aggregate amount of $440 million. Omni Bridgeway will receive a distribution from the settlement of the project costs and the project management fee totalling approximately $30 million.

Crown Resorts Ltd (ASX: CWN)

The Crown Resorts share price was the next best performer with a 7.6% gain. The catalyst for this was news that rival Star Entertainment Group Ltd (ASX: SGR) has tabled a conditional, non-binding, indicative merger proposal. On a pro forma basis, Star’s offer implies a price in excess of $14.00 per Crown share. This was a 15.5% premium to its last close price at the time. Crown revealed that it is considering the offer, along with an improved bid from Blackstone.

Resolute Mining Limited (ASX: RSG)

The Resolute share price wasn’t far behind with a gain of 7.5% over the five days. While the gold miner announced the appointment of a new CEO at the end of the week, this wasn’t the reason for the gain. In fact, the Resolute share price fell almost 2% on Friday following the announcement. The gain may have been due to bargain hunters looking for undervalued options in the gold sector. After all, the Resolute share price is still down 31% year to date even after this gain.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was on form and charged 7.45% higher last week. All of this gain and more was made on Friday after the coal producer’s shares jumped 9%. This was driven by the release of two positive broker notes that morning. Both Macquarie and Credit Suisse upgraded its shares to an outperform rating on valuation grounds. Macquarie has a $1.70 price target and Credit Suisse has a $1.55 price target.

More reading

• ASX 200 rebounds, Treasury rises, Xero falls
• What drove the Commonwealth Bank (ASX:CBA) share price this week?
• Crown Resorts (ASX:CWN) share price lifts amid sell-off push
• Why is the Magellan (ASX:MFG) share price up 4% today?
• The Commonwealth Bank (ASX:CBA) share price hits new record high

Motley Fool contributor James Mickleboro 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.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33IGoHQ

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it thinks are buys.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE), whilst others go for smaller companies like WAM Research Limited (ASX: WAX) and WAM Microcap Limited (ASX: WMI).

WAM Microcap targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 25% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 11.6%.

These are two ASX shares that WAM outlined in its most recent monthly updates:

Dusk Group Ltd (ASX: DSK)

This is a pick by WAM Microcap.

Dusk is the leading Australian omni-channel specialty retailer that is focused on home fragrance products.

The ASX share recently gave a trading update for the third quarter of FY21 with sales of $27.7 million, up from $18.4 million in the prior year. Financial year to date sales were $118.7 million, up from $77 million in the prior corresponding period.

Wilson Asset Management also pointed out that full year sales guidance is for a range of between $147 million to $151 million. It’s delivering a lot of growth.

Dusk had a strong inventory position for Mother’s Day in May according to WAM. New stores will further add to growth, it has added 10 new stores over the last year.

The fund manager is positive on Dusk because the disciplined cost management provides the business with operating leverage as it rolls out new stores across the country.

Imdex Limited (ASX: IMD)

This is a pick by WAM Research.

What’s Imdex? The LIC explains that it’s a global provider of end to end technology solutions for mining exploration and development, developing drilling optimisation products and sensors to provide real-time data.

Imdex is truly a global business with operations in the mining regions in Asia Pacific, Europe, Africa and the Americas. It has a presence on 70% of minerals drilling projects globally and sales in more than 100 countries.

The ASX share has benefited from strong copper prices, which reached almost US$10,000 per tonne in April, which is the highest in 10 years.

WAM Research explained where it’s seeing opportunities. Clean energy and the battery mineral space continue to see significant investments. This help gives copper, nickel and lithium a strong outlook because of all of the demand.

Wilson Asset Management also thinks that the company will benefit from higher global exploration budgets after years of under-investment.

More reading

• Is there still upside to the JB Hi-Fi (ASX:JBH) share price?
• Why retailers are stepping up as top performing ASX shares this week
• Why the Dusk (ASX:DSK) share price is in focus

Motley Fool contributor Tristan Harrison 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.

The post 2 top ASX shares that WAM thinks are buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ok9gQ9

The SKY Metals Ltd (ASX: SKY) share price was up today after the company noted copper sulphides in its latest exploration update.

SKY Metals shares were trading 3.4% higher at 15 cents per share at the close of trade. 

Let’s see what’s spearheading a minor recovery in the SKY Metals share price today.

SKY Metals’ wide copper sulphides

SKY Metals reported exploration updates for three separate New South Wales drill projects today, all with ostensibly solid results.

The company has intersected wide zones of copper sulphides in its maiden reverse circulation drilling operations at its Iron Duke project. Iron Duke is a copper-gold project. 

The copper price is currently barnstorming near its all-time highs, so copper sulphides may have a positive impact on the SKY Metals share price. SKY Metals has submitted the samples from its Iron Duke project and is currently awaiting full assay results to discover whether its found any high-grade results.

The company clearly has faith in its Iron Duke project, however, as it’s already secured a diamond drilling rig from a contractor that’s due to start within two weeks.

The company also reported results from its Galwadgere project, another copper and gold mine.

SKY Metals currently has resource modelling underway for the Galwadgere deposit, but drill core re-sampling from its historic Galwadgere diamond drill holes has delivered “wide copper-gold results”.

The company reported  27.8 metres of 0.5% copper & 0.07g/t of gold from 175 metres deep.

Meanwhile, its Cullarin gold, lead and zinc mine has revealed “further strong zones of gold-lead-zinc” according to the company. SKY Metals is reporting nine metres of 0.57g/t gold, 0.31% copper, and 4.55% lead and zinc from 136 metres deep.

Sky Metals share price snapshot

The Sky Metals share price had barely nudged above four cents in the entire previous decade until 2020 when it tripled in four months between January and April last year.

It’s since fallen back off those highs and has been steady around the 15 cent mark in 2021. Overall, it’s down more than 50% in the past 12 months.

More reading

• Why is the SkyCity (ASX:SKC) share price falling today?
• 2 high quality ASX dividend shares rated as buys
• ASX 200 rebounds, Treasury rises, Xero falls
• Broker eyes these ASX 200 shares following Federal Budget
• Could it be time to give ASX gold shares another chance?

Motley Fool contributor Lucas Radbourne-Pugh 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.

The post SKY Metals (ASX:SKY) share price jumps on copper update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uQy598

The SKYCITY Entertainment Group Limited (ASX: SKC) share price lost ground today after the company revised the details around a $115 million bond offer made last month.

SkyCity shares were trading down 0.31% at $3.26 at the market close after the company revised upwards the margin range on its six-year bond offers.

The casino and hotel operator is still recovering from a huge share price fall early last year, so let’s find out how today’s report is affecting the SkyCity share price today.

SkyCity’s bond offers

In April, SkyCity announced it was offering up to NZ$125 million (AU$116 million) in 6-year, unsecured, unsubordinated, fixed-rate bonds. The bonds will mature on 21 May 2027.

Then on 10 May 2021, SkyCity announced an indicative issue margin range of 1.6% per annum and a 3% minimum interest rate for the bonds. Today, the company has revised the indicative issue margin range to 1.7% per annum, but it’s kept the 3% minimum interest rate.

The company said it upped the rate in response to “market changes”. It’s offering the bonds to institutional investors and New Zealand retail investors. SkyCity has also left open the option to increase bond sales by a further $50 million to $175 million total if the offer is oversubscribed.

The issue margin and interest rate for the bonds will be set following a bookbuild process, which started today but won’t close until 17 May. 

The company noted the purpose of the capital raising initiative in its indicative terms sheet, published today:

The offer forms part of SkyCity Group’s ongoing capital management strategy, enhancing diversity of sources of funding and lengthening the debt maturity profile. The net proceeds of the offer will be used to reduce the drawings on SkyCity’s bank facilities.

SkyCity share price snapshot

As recently as two months ago, the SkyCity share price had been one of the stronger performing ASX gaming shares. However, its 12-month gain through 2020 to March this year has more than halved since then and it’s now 5% down against the consumer cyclical sector in the past year.

This is despite slow and solid gains since March. The SkyCity share price has gained steadily since the company announced the bond offer at the end of last month.

More reading

• 7 ASX 200 shares with emission reduction strategies

Motley Fool contributor Lucas Radbourne-Pugh 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.

The post Why is the SkyCity (ASX:SKC) share price falling today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33I5PJM

This year has seen record-high iron prices as well as a record high for the S&P/ASX 200 Index (ASX: XJO), and one share is positively booming in the excitement.

The Champion Iron Ltd (ASX: CIA) share price has gained 45.6% since the start of 2021, making it one of the best performing ASX 200 shares of 2021 so far.

After hitting an intraday high of $7.31, the Champion Iron share price has since retreated and was trading at $7.02, up 0.29% at the market close today.

Its year-to-date performance has beaten ASX 200 iron ore peers including Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP). These iron ore giants have gained 8.73% and 15.12% respectively.

So, what’s been driving the Champion Iron share price to perform better than other ASX 200 iron miners?

A quick introduction

Champion Iron is an iron ore exploration and development company with a number of projects in Canada’s Québec region.

As well as gaining 45% since the start of this year, the Champion share price has lifted 220% over the last 12 months.

It has a market capitalisation of around $3.5 billion, with approximately 493 million shares outstanding.

ASX 200 Champion in more than name

The Champion share price got off to a great start for 2021 on the ASX.

In late January, it released its third-quarter results for the 2021 financial year. Within the results were record-high revenues, earnings before interest, tax, depreciation, and amortisation (EBITDA), net income, and net cash flow.

Despite the positive results, the Champion Iron share price closed the day 9% lower than the previous session.

On 22 March, Champion Iron officially entered the ASX 200.

Then, on 6 April, the Champion Iron share price gained 5% after the company announced it has completed its acquisition of the Kamistiatusset iron ore project (Kami Project).

In addition to the project, the acquisition saw the company secure another 8 million annual tonnes of port capacity in Sept-Isles, Que, where it was already sending iron concentrate from its Bloom Lake Project.  

Finally, it released its fourth-quarter activities report on 29 April. Within the update was plenty of good news, including the announcement of a new annual production record of 8,001,200 wet metric tonnes from Bloom Lake.

More reading

• Top brokers name 3 ASX dividend shares to buy today
• The ASX miners with the biggest valuation upside to record iron ore prices
• ASX 200 shares hit all-time high! How did we get here?
• All time high! Here’s how much ASX investors have made on BHP shares
• The ASX miners caught in the FOMO trade as copper smashed record highs

Motley Fool contributor Brooke Cooper 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.

The post Which ASX 200 iron ore share has gained 45% in 2021? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3hmMUft

With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

However, with so many dividend shares to choose from, it can be hard to decide which ones to buy. To help narrow things down, I’ve picked out two that are highly rated right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust that has a focus on social infrastructure properties.

Demand for its properties has been very strong, leading to the company recently reporting a sky high occupancy rate of 99.7%. Positively, these tenants won’t be leaving any time soon. Charter Hall Social Infrastructure REIT’s weighted average lease expiry (WALE) stood at a sizeable 14 years at the end of the first half. Another positive is that the number of leases on fixed rent reviews has increased to 63.3%, which bodes well for its future rental income growth.

In light of its strong form in FY 2021, the company intends to pay a 15.7 cents per unit distribution. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.8% yield.

One broker that is a fan is Goldman Sachs. This morning the broker retained its conviction buy rating and lifted its price target to $3.60. It commented: “We believe the current pricing provides an attractive investment opportunity. CQE is currently trading at an 8% premium to its NTA versus its historical average premium of 13% (since 2014). Moreover, it is trading at a 37% discount to its peer ARF versus its historical spread of a 12% discount.”

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands. Like the Charter Hall Social Infrastructure REIT, it has been a positive performer in FY 2021.

During the first half of FY 2021, it reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. It then followed this up with a trading update which recently revealed like-for-like sales growth of 28% for the first 44 weeks of FY 2021.

Goldman Sachs is also a fan of Super Retail. It currently has a buy rating and $15.00 price target on its shares. Goldman is forecasting an 84 cents per share fully franked dividend in FY 2021. Based on the current Super Retail share price of $11.97, this represents a 7% yield.

More reading

• 2 quality ASX dividend shares for income investors next week
• 2 buy-rated ASX dividend shares for income investors
• Top broker tips Super Retail (ASX:SUL) share price to smash the market
• ASX 200 rises, Flight Centre drops, Super Retail grows
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 high quality ASX dividend shares rated as buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RUF029

The S&P/ASX 200 Index (ASX: XJO) rose by 0.45% today to 7,014 points. 

Here are some of the highlights from the ASX:

AVITA Medical Inc (ASX: AVH)

The AVITA share price went around 3% today after the healthcare business gave its quarterly update.

For the three months to 31 March 2021, the business saw reported RECELL revenue of $8.8 million, a 126% increase over the same quarter last year.

Procedural volumes in the third quarter of 2021 was 492, up from 408 in the same period last year and 487 in the quarter ended 31 December 2020.

AVITA added six new burn centre accounts in the third quarter of 2021, for a total of 99 accounts. This brings its penetration rate to 73% of the 136 US burn centres.

Of the approximately 300 total US burn surgeons, 244 (81%) have been trained and certified with RECELL and 147 (almost 50%) used RECELL in the third quarter.

AVITA Medical CEO Dr Mike Perry said:

We made steady progress over the last quarter as we continued to drive RECELL usage in our established hospital burn centre base with an increasing focus on smaller burns, and we continued to expand our physician training and outreach programs. As pandemic headwinds abate, we plan to leverage our highly experienced burns sales force and strong relationships built to date with the burn practitioner community to increase hospital access and to penetrate deeper in our existing accounts, resulting in additional procedures and engaging more burn practitioners.

Our three pivotal clinical trials in vitiligo, trauma and pediatric burns are continuing on schedule and we expect to see expanded indications for RECELL coming online, allowing us to serve an ever-growing population of patients.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine was one of the best performers in the ASX 200 today. It went up more than 6%.

It has continued to rise after revealing its long-term financial and sustainability goals.

The winemaker said that it wants to deliver sustainable revenue growth and high-single digit average earnings growth over the long-term. Some of that will be down to increasing its investment in technology to improve efficiencies and lower costs. It also wants to increase its percentage of premium sales. There are divisional targets based on the operating profile and long-term strategic objectives of each brand.

TWE also said that it’s targeting a cash conversion rate of more than 90%. The company is targeting stable dividends with a dividend payout ratio of between 55% to 70% of net profit.

The winemaker also wants to take action on its part relating to climate change. It said it wants 100% of its product packaging to be made of 50% recycled content by 2025, with all the packaging to be recyclable, reusable or compostable by 2022.

Xero Limited (ASX: XRO)

The Xero share price fell more than 4% today, adding onto yesterday’s declines in reaction to its FY21 result.

As a reminder, the ASX 200 share reported that its operating revenue grew by 18% to NZ$848.8 million and total subscribers increased by 20% to 2.74 million.

Xero’s FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 39% to $137.7 million as it ramped up its advertising and other operating expenses in the second half of the year as COVID-19 concerns lessened.

The free cashflow generated went up 110% to almost NZ$60 million.

More reading

• What drove the Commonwealth Bank (ASX:CBA) share price this week?
• Why is the Magellan (ASX:MFG) share price up 4% today?
• Why De Grey, GrainCorp, Pilbara Minerals, & Xero shares are dropping
• Has COVID-19 killed the ASX WAAAX shares?
• The Commonwealth Bank (ASX:CBA) share price hits new record high

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Xero. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Avita Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 rebounds, Treasury rises, Xero falls appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bqcXyA

The 2021-22 Federal Budget features $1.2 billion in government spending over six years to drive Australia’s digital economy. Morgan Stanley believes these initiatives support its bullish view of the media sector. Here are some ASX 200 media shares the broker thinks could see upside. 

ASX 200 media shares on broker’s radar

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Morgan Stanley observes a relatively small benefit to commercial free-to-air broadcasters from reduced funding for public broadcasters ABC and SBS. The broker reiterated its overweight rating for Nine shares with a target price of $3.50.

The Nine share price has been surging into record territory in 2021 following bullish earnings and a greater commitment to its digital platforms. These include video subscription platform Stan, a majority investment in Domain Holdings Australia Ltd (ASX: DHG) and digital advertising. Nine shares closed at $2.82 on Friday. 

News Corporation (ASX: NWS)

News Corp was another company expected to benefit from changes in the Budget. Morgan Stanley says the extra funding allocated to the industry regulator, Australia Communications and Media Authority (ACMA), signals that the government is confident about the outcome of its digital licencing payments with Google and Facebook. 

The broker rates News Corp shares as overweight but its target price was not assessed. The News Corp share price closed the week trading at $31.80.

REA Group Ltd (ASX: REA) 

The budget includes some additional funding for first-home buyers and superannuation incentives to encourage those aged over 60 to downsize their home, potentially freeing up more housing stock for younger families. 

According to Morgan Stanley, this could add further churn to residential housing transaction volumes, which could, in turn, benefit REA Group.  

The broker retained its overweight rating and $175 target price. REA shares have cooled off in recent days following broader weakness in the tech sector. Its shares closed at $147.70 on Friday. 

Seek Limited (ASX: SEK) 

Morgan Stanley highlights the government’s range of policy measures to drive the jobs market. These include new apprenticeships and training places, infrastructure investment and record funding for schools, hospitals and aged care. The broker suggests that the extra churn in jobs volume is expected to be helpful for Seek, alongside a new push for job seekers to undertake more online searching.

The broker is overweight on Seek shares with a current consensus price across big brokers being $29.87. It’s been a volatile start to 2021 for Seek shares, which have delivered flat year-to-date returns. The company’s shares are, however, up by almost 70% over the past 12 months. The Seek share price was fetching $28.92 by Friday’s close. 

More reading

• Has COVID-19 killed the ASX WAAAX shares?
• Brokers name 3 ASX shares to buy now
• 2 buy-rated ASX 200 blue chip shares
• Why the Aerometrex (ASX:AMX) share price is soaring 18% today
• Why a2 Milk, Afterpay, Nearmap, & REA Group shares are sinking

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 recommends Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, REA Group Limited, and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Broker eyes these ASX 200 shares following Federal Budget appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33HoUMb

ASX 200 gold shares have struggled to outperform the market this year after an astonishing run in 2020.

Gold staged a rally into record territory between May 2019 and August 2020, where prices surged from US$1,300 to above US$2,050. 

More recently, it’s been a frustrating time to be bullish on gold with spot prices grinding back and forth below US$1,900. While ASX200 gold shares might be making production and operational headway, gold prices have kept valuations at bay. 

Morgans has undergone a review of ASX gold stocks under coverage, with a number of plays emerging as a buy. 

Regis Resources Limited (ASX: RRL)

Regis holds a dominant position in the Duketon Greenstone Belt in the North Eastern Goldfields of Western Australia, with a number of open pits and underground projects in the area. 

The company is also progressing its McPhillamys Gold Project in the Central Western region of New South Wales, a robust large-scale open-pit gold mine within a highly prospective land package. 

More recently, the company signed a conditional binding agreement with IGO Ltd (ASX: IGO) to acquire its 30% interest in the Tropicana Gold Project for A$903 million. Tropicana represents a low cost, high margin and top five producing Australian open-pit and underground gold mine opportunity to build on Regis’ existing production base. 

Morgans believes it may take time to realise the value of Tropicana but likes the company’s long-term outlook. The broker retains an add rating with an ambitious $4.08 target price. 

Like most ASX gold shares, the Regis share price has been pushed lower thanks to weak gold prices. Its shares are currently down 30% year-to-date to $2.56.

Ramelius Resources Limited (ASX: RMS)

Ramelius is a mid-tier gold producer, currently operating the Mt Magnet, Vivien, Edna May and Marda gold mines around Western Australia. The company has a strong track record of growing gold production with an average year-on-year increase of 21.5% since FY15. 

Morgans highlights a number of positive catalysts for the company, including near-term mine life extensions for its Edna May and Eridanus projects. An add rating was retained with a $2.24 target price. 

The production and cost management of Ramelius has helped its shares stay relatively buoyant compared to most ASX gold shares. Its shares edged only 3% lower year-to-date, current trading at $1.73. 

Red 5 Limited (ASX: RED) 

In 2017, Red 5 acquired the Darlot and King of the Hills gold projects in Western Australia. This marked the beginning of the company’s growth chapter, with production across the two operations ramping up to more than 100,000 ounces per annum. 

Morgans flags the company’s recent disappointing production out of Darlot but points to the King of the Hills project as a key value driver for the company. 

The broker believes there could be more challenges with near-term production but reiterates the long-term potential of the small-cap gold miner. An add rating was retained with a 31 cent target price. 

The production miss combined with weak gold prices has pushed the Red 5 share price to a one-year low of 19 cents.

More reading

• Why the Regis Resources (ASX:RRL) share price is in focus
• Struggling ASX gold shares just got upgraded by a top broker
• Top brokers name 3 ASX shares to sell next week
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher

Motley Fool contributor Kerry Sun 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.

The post Could it be time to give ASX gold shares another chance? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eMDAjo