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Are you wondering if you should pay off your mortgage before investing your spare cash in the ASX? You’ve come to the right place.

If you’re a homeowner, congratulations. You’re already a proactive investor. 

Many experts advise to diversify your investment portfolio as much as possible. Investing in shares may offer some protection if the residential property market reduces in value.

If you’ve already committed to your property investment and you’re comfortable not immediately paying off your mortgage, maybe the share market is your next mountain.

What ASX investment strategies might work best for people paying down a mortgage?

It’s incredibly important that you take a personal approach to investing. Your individual situation must be considered before taking action and this article only contains general advice.

With that in mind, here are 2 ASX investment strategies that could be attractive to those with a mortgage.

Rather than paying extra off of your mortgage, put that cash towards accumulating compound interest

This strategy can be a relatively safe bet for simple, low-maintenance investing. This approach works because of compounding interest rates. If you’re staring at your screen blankly, check out this breakdown of investing in shares versus paying down a mortgage.

Now, obviously, compound interest only works if the market is going up more often than it’s going down, and that’s never guaranteed. Compounding interest takes time and consistency. Although, if you’re already the holder of a mortgage, you’re probably well versed in the realities of long-term financial commitments.

Investing in dividend-paying shares

If you’re after a more immediate reward, perhaps dividend-paying shares could be your answer. Dividends are a portion of a company’s profits that shareholders are entitled to. Most companies pay their shareholders a dividend every 6 or 12 months, but they can pay more or less regularly. In fact, they don’t have to pay at all. Further, the amount that reaches your bank account from your dividend shares is likely to be unstable as it reflects a company’s profits and whims.

With that in mind, some investors might find dividends could be a good way to offset a proportion of their mortgage repayments. Or maybe to earn some spending money, especially if most of your disposable income currently goes towards house repayments.

Here’s what you need to know before investing in the ASX

Firstly, investing in shares is risky. Even the most stable company, with a perfect record of past performance, can see volatility in its share price for a number of reasons.

Don’t let that scare you though. As today’s low-interest rates and rising bond prices have made cash savings accounts and bonds less prosperous than they used to be, investing in the share market might be worth considering.

Secondly, make sure you’ve paid off any high-interest debt before investing in the share market. Compounding interest works the same in reverse — don’t let any success you may find on the ASX be depleted by debt.  

Finally, make sure you have a few months’ expenses left in the bank after you put your savings into any investment. You don’t want to find yourself in the position of not being able to support yourself if your income stream stalls.

More reading

• How I’d aim to generate a growing passive income from dividend shares
• The Core Lithium (ASX:CXO) share price is up 21% in just one week
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
• 2 quality ASX dividend shares to buy today
• 2 of the best ASX growth shares to buy immediately

The post 2 ASX investing strategies for those paying off a mortgage appeared first on The Motley Fool Australia.

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Generating a growing passive income from dividend shares is a realistic goal for most investors.

Buying companies that have affordable dividend payouts as a proportion of profit could indicate they have the scope to raise shareholder payments. Similarly, stocks with impressive profit forecasts may be able to raise their dividends at a relatively fast pace.

Through buying a diverse range of such companies, it could be possible to build a strong income portfolio in a low-interest-rate environment.

Buying shares with low payout ratios

A company’s dividend payout ratio can provide guidance on its passive income prospects. The ratio is calculated by dividing dividends paid in the most recent financial year by net profit from the same year. The result is a percentage figure. A figure below 100% shows that the company had headroom when making its most recent dividend payments out of net profit.

Clearly, company profitability can change – especially in the current economic environment. However, businesses with low payout ratios may find it easier to grow their dividends at a fast pace than those companies that have higher payout ratios. They may be less reliant on rising profits to fund dividend growth. As such, they could be a more promising means of obtaining a rising passive income in the coming years.

Earnings growth can catalyse a company’s passive income

Companies that have attractive earnings growth prospects may also offer a higher chance of providing a rising passive income. For example, two companies with the same payout ratios may have very different financial outlooks due to industry conditions and their strategies. The stock with a more upbeat operating outlook may find it easier to raise dividends without compromising the affordability of its shareholder payouts.

Of course, assessing the profit potential of any business is a known unknown. It’s especially difficult at the present time to judge whether a company has the scope to raise profitability. However, by focusing on the track record of profit growth for a specific stock versus its peers, it may be possible to deduce whether it has a competitive advantage. This may indicate that it is able to offer more resilient sales growth, higher margins and a rising passive income in the long run.

Buying dividend shares today

The uncertain economic outlook makes it more important than ever to diversify among a range of dividend shares when seeking to make a passive income. Otherwise, an investor may be too reliant on a small number of holdings for their income.

Even after the stock market’s rally since the 2020 stock market crash, a number of companies appear to be trading on low valuations given their long-term dividend prospects. As such, there seem to be opportunities to build a diverse income portfolio that can provide strong growth in a low-interest-rate environment.

More reading

• The Core Lithium (ASX:CXO) share price is up 21% in just one week
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
• 2 quality ASX dividend shares to buy today
• 2 of the best ASX growth shares to buy immediately
• 2 ASX 200 shares that keep growing the dividend every year

Motley Fool contributor Peter Stephens 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 Core Lithium Ltd (ASX: CXO) share price has been a very strong performer in recent trading sessions.

In fact, since this time last week, the lithium company’s shares have rallied an impressive 21%.

This means the Core Lithium share price is now up a remarkable 1,000% over the last 12 months.

Why is the Core Lithium share price racing higher this week?

Investors have been scrambling to buy Core Lithium shares this week following a rise in lithium prices to two-year highs and the release of a positive announcement.

In respect to the latter, on Monday the company revealed that its Finniss Lithium Project near Darwin has been awarded Major Project Status (MPS) by the Hon Karen Andrews MP.

According to the release, MPS is the Federal Government’s recognition of the strategic significance of a project to Australia. It provides companies with extra support from the Major Projects Facilitation Agency. This includes a single-entry point for Australian Government approvals, project support, and coordination with state and territory approvals.

Management believes the award of MPS, which carries a three-year period, represents yet another major milestone in its path towards bringing this world-class lithium project into production.

What’s next?

There are a number of potential catalysts on the horizon that could make or break the Core Lithium share price.

The main one is of course the updated Definitive Feasibility Study (DFS) on the Lithium Project, which is due in the first half of 2021. Once that is complete, the company will make its final investment decision on the project.

If all goes to plan, Core Lithium is on track to commence construction at the Finniss Project before the end of the year.

Core Lithium’s Managing Director, Stephen Biggins, commented: “The award of Major Project Status for our flagship Finniss Lithium Project is another major milestone for both the company and the Federal Government, as we strive to enter the construction phase in 2021, subject to a Final Investment Decision.”

“When in production, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia, with our proximity to Darwin Port – the country’s nearest port to Asia – serving as a direct route for our lithium to be processed and delivered to end users worldwide.”

“This opens up a pathway for a critical minerals hub to be established in Northern Australia, along with the potential for significant associated local modern manufacturing opportunities.”

Given the potential of the project, it isn’t at all surprising to see the Core Lithium share price flying high this week. Shareholders will no doubt be hoping for more of the same in the coming months as things progress.

More reading

• Core Lithium (ASX:CXO) share price climbs on government award
• The Core Lithium (ASX:CXO) share price slips today

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.

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Respected fund manager Wilson Asset Management (WAM) has recently identified two small cap ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which 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 24.7% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 10.5%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Atomos Ltd (ASX: AMS)

Atomos is a business that provides digital imaging creation tools for video professionals. WAM explained that Atomos now creates 4K and HD Apple ProRes monitor-recorders, using by video professionals for content creation with lower production costs.

The fund manager pointed to its strongest six months in history, with $32.8 million in sales and $3 million of earnings before interest, tax, depreciation and amortisation (EBITDA) – this was a 210% increase year on year.

WAM was also impressed by the significant cash flow improvement which was growth of 133% to $4.3 million.

The fund manager said that the small cap ASX share has benefited from the large increase in video usage and production during the COVID-19 pandemic across the world.

Atomos is well placed to scale with $23.3 million of cash on its balance sheet and access to an undrawn $5 million working capital facility, according to WAM Microcap.

Universal Store Holdings Ltd (ASX: UNI)

The fund manager also likes Universal store, which was only listed a few months ago.

Universal Store has 65 casual apparel stores across Australia and New Zealand. Its main target audience is the 16 to 35 year old age bracket.

WAM explained that Universal Store sells a selected range of third party branded products – this makes up around 70% of revenue, it also has a range of private label products.

Just like plenty of other businesses, particularly in the retail space, Universal Store reported a record six month result in its FY21 half-year report. It made $31.5 million of underlying earnings before interest and tax (EBIT) – this was growth of 69%. This beat the guidance that was given in January 2021 of a range of $30 million to $31 million.

A key part of that growth was the online sales, which grew by 128% and represented 12% of the overall total thanks to options like ‘ship from store’ and click and collect.

With the company making a record result, it decided to repay its jobkeeper payments of $3 million.

In the second half of FY21, the small cap ASX share is expecting to open three new stores. It’s looking to open more than 100 stores over time.

WAM Microcap is positive on the outlook for growth. It has a good net cash balance sheet of $22.5 million, with plans for expanding its private label brands and a disciplined pricing and promotional strategy.

More reading

• 3 small cap ASX shares to watch in 2021
• 4 exciting small cap ASX shares to watch
• 2 exciting small cap ASX shares to watch
• Why Flight Centre, Life360, Nanosonics, & Universal Store are racing higher
• Why the Universal Store (ASX:UNI) share price is up 6% to a record high

Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Wilson Asset Management thinks these 2 small cap ASX shares are a buy appeared first on The Motley Fool Australia.

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Are you looking to boost your income portfolio with some quality ASX dividend shares? Then you might want to consider the ones listed below.

Here’s what you need to know about these ASX dividend shares:

Accent Group Ltd (ASX: AX1)

The name Accent may not be familiar, but I bet readers will know many of this footwear retailer’s store brands. Accent is the company behind the likes of HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

Its stores and their online businesses have been booming over the last 12 months despite the pandemic. This culminated in Accent delivering a strong half year result last month. It revealed a 6.6% increase in total sales to $541.3 million and a massive 57.3% lift in net profit after tax to $52.8 million.

The good news is that the second half started strongly, putting Accent in a position to deliver a bumper full year profit result in August.

Analysts at Bell Potter are positive on the company and have a buy rating and $2.65 price target on its shares. The broker is also forecasting an 11.9 cents per share dividend in FY 2021. Based on the current Accent share price, this will mean a fully franked 5.1% yield.

Coles Group Ltd (ASX: COL)

Another company that has been performing very strongly over the last 12 months is Coles. The supermarket operator has benefited greatly from a shift in consumer behaviour caused by the pandemic. 

However, with the company now cycling the elevated sales period from a year earlier, its second half performance is not expected to be as strong as the first. In fact, management has even warned that sales could decline during the half. This has put pressure on the Coles share price, bringing it down to a level which many brokers believe is very attractive.

One of those is Goldman Sachs. Its analysts have a buy rating and $20.70 price target on its shares currently. The broker remains positive on its medium term outlook thanks to its strong market position, Refreshed Strategy, and focus on automation.

Goldman is forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a fully franked 4% yield.

More reading

• Why the Coles (ASX:COL) share price is still down 15% in 2021
• Got money to invest for dividends? Here are 2 ASX shares
• 2 ASX dividend shares to buy with yields above 4%
• ASX 200 Weekly Wrap: Calm restored to the ASX 200
• Leading brokers name 3 ASX dividend shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Accent Group. 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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Due to recent pullbacks in the share prices of a number of growth shares, now could be an opportune time to consider making some new additions to your portfolio.

But which ASX growth shares should you buy? Here are two which could be in the buy zone:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. It also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.

These businesses look well-positioned for growth over the long term thanks to the rapidly growing internet of things and artificial intelligence markets. These markets are underpinning an explosion in electronic devices globally, which is leading to increased demand for Altium’s offering.  

One broker that is positive on the company’s future is UBS. Last month the broker upgraded Altium’s shares to a buy rating with a $34.00 price target. This compares to the latest Altium share price of $26.72.

Xero Limited (ASX: XRO)

Another ASX growth share to consider is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.

Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. Particularly given recent acquisitions, which are strengthening its offering and positioning it for growth. One of those was the Planday acquisition that was announced earlier this month. Xero will pay up to $284.6 million for the workforce management platform.

In addition to this, the company looks well-placed for long term growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem.

The latter is something Goldman Sachs is particularly positive on. It believes that it could provide it with a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.

Goldman has a buy rating and $157.00 price target on its shares. This compares to the current Xero share price of $117.67.

More reading

• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• ASX 200 up 0.8%: Metcash update, tech shares rebound, PointsBet acquisition
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 down 0.1%: Afterpay sinks, Evolution announces acquisition
• The Altium (ASX:ALU) share price is nearing its 52-week low

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

The post 2 of the best ASX growth shares to buy immediately appeared first on The Motley Fool Australia.

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The two S&P/ASX 200 Index (ASX: XJO) shares in this article have been growing their dividends every year to shareholders for over a decade.

It’s quite rare to find an ASX 200 share that has a dividend growth record going back over a decade. The GFC ended a number of dividend growth records, including the one belonging to Ramsay Health Care Limited (ASX: RHC).

The business with the longest dividend growth record in the ASX 200 is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

But this article is about these two ASX 200 dividend growth shares:

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Domino’s actually has a dividend growth streak going back to the GFC. Since then the pizza business has become a global fast food powerhouse.

In the latest result, being the FY21 half-year report, it reported it made $1.84 billion of network sales (up 16.5%) and online sales grew by 25.4% to $1.42 billion.

At the end of the half, it had grown its store count to almost 2,800. Over the next decade or so it’s looking to grow that store count to around 5,550. Europe will account for around half of that total, with the Japanese store target goal being 1,500 and ANZ making up the rest.

The ASX 200 share is still forecasting solid medium-term growth. Over the next three to five years it thinks that the annual same store sales could grow by 3% to 6% per annum, with an outlook for annual organic new store additions of between 7% to 9% per annum.

Japan is a region that the company is “very confident of ongoing expansion”. In the FY21 half-year result it saw online sales growth of 56.6%, network sales growth of 42.6% and same store sales (SSS) growth of 36.4%.

Overall, Domino’s half-year net profit grew 32.8% and free cashflow went up 50.3%, funding a 32.5% increase to the dividend.

APA Group (ASX: APA)

APA’s distribution growth record actually extends back before the GFC. It’s one of the longest records on the ASX.

This ASX 200 share is a major Australian energy infrastructure business that owns and/or manages and operates a portfolio of assets worth around $22 billion. It has 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia. It connects 1.4 million Australian homes and businesses to natural gas, supplying around half of the nation’s usage.

The business also has investments in a number of other energy infrastructure assets such as wind farms, solar farms, gas storage, gas processing and gas power stations.

APA continues to look for new investments that can grow its operating cashflow, which is what funds the distribution to shareholders. It’s looking to expand into high growth infrastructure markets. It said it will invest in contracted and regulated energy infrastructure (gas, electricity and renewables) in Australia and North America.

The ASX 200 dividend share has also established its ‘pathfinder program’ to explore a range of new energy technologies.

It’s expecting to organically spend more than $1 billion over FY21 to FY23, including building the new $460 million Northern Goldfields Interconnect and $38 million Gruyere Hybrid Energy Microgrid.

APA continues to hunt for opportunities in the US, but factors like COVID-19 and the US federal election resulted in a number of opportunities being put on hold in 2020. More activity is expected in FY21.

In the FY21 half-year result APA grew the distribution by 4.3% to 24 cents per security, with guidance for the full year distribution to by 51 cents – a 2% total increase. This equates to a forward distribution yield of 5.2%.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Sneaky way ASX company can boost share price by 7%
• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• The RBA expects cheap money to remain. What does that mean for stocks?
• ASX 200 will end this year on a record high

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Ramsay Health Care 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged notably higher. The benchmark index surged 0.8% higher to end the day at 6,827.1 points.

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

ASX 200 expected to fall

The Australian share market looks set to drop lower today after a subdued night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is down 0.1%, and the Nasdaq is up slightly.

Oil prices fall again

It could be a tough day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday. According to Bloomberg, the WTI crude oil price is down 1.1% to US$64.69 a barrel and the Brent crude oil price has fallen 0.9% to US$68.29 a barrel. This was the third trading session in a row of declines for oil prices. Traders appear concerned that demand could soften as COVID-19 vaccine rollouts are halted in Europe.

Gold price flat

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a flat night for the gold price. According to CNBC, the spot gold price is steady at US$1,729.30 an ounce. A firmer US dollar held back the gold price.

Shares going ex-dividend

A couple of ASX 200 shares are going ex-dividend this morning and could trade lower. Shipbuilder Austal Limited (ASX: ASB) and poultry producer Inghams Group Ltd (ASX: ING) are trading without the rights to their upcoming 4 cents and 7.5 cents per share dividends, respectively. Eligible shareholders will be paid these dividends in April.

Webjet rated as a buy

The Webjet Limited (ASX: WEB) share price could be in the buy zone according to one leading broker. According to a note out of Goldman Sachs, its analysts have initiated coverage on the online travel agent with a buy rating and $7.36 price target. The broker expects its Webbeds business to be a long-term growth engine for the company.

More reading

• Sneaky way ASX company can boost share price by 7%
• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• The RBA expects cheap money to remain. What does that mean for stocks?
• ASX 200 will end this year on a record high
• Why the Coles (ASX:COL) share price is still down 15% in 2021

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

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QSuper and Sunsuper Pty Ltd are gearing up for a merger that will create a $200 billion superannuation fund servicing two million members. 

SunSuper announced that the merger – which will see the new entity become the second-largest superannuation fund in Australia – is scheduled for September 2021. 

SunSuper CEO to lead new superannuation fund

The release advised that Sunsuper CEO Bernard Reilly will lead the merged entity, a move welcomed by Sunsuper chair Andrew Fraser and QSuper chair Don Luke. They said in a joint statement:

Bernard brings a global perspective, with a proven track record in leading large-scale enterprises in Australia and internationally.

He is an exceptional candidate to lead the establishment of what will be a major, and enduring, Australian superannuation fund.

According to the release, QSuper CEO Michael Pennisi intended to leave in October 2020 following his 5-year tenure. However, he stayed the extra months to see the merger through.

QSuper’s side of the new business puts $120 billion on the table and brings 600,000 members to the deal. SunSuper brings $80 billion to the fund and 1.4 million members. 

QSuper and SunSuper move to finalise deal 

As the historic superannuation deal marches toward its September closing, both parties are ironing out the conditions.

According to a report in the Australian Financial Review, the Queensland Government supports the merger depending on conditions that are under negotiation. These include that the new entity maintains the same defined benefits and associated liabilities as the original funds. In addition, the new entity must have government representation and satisfy key stakeholders.

Commenting on the agreement, Mr Fraser and Mr Luke said:

Each of our boards believe that signing a Heads of Agreement is in their members’ best interests and we are each taking the next step to realise the potential of this merger.

Foolish Takeaway

The heads of agreement signed by SunSuper and QSuper is a non-binding agreement. If the merger is successful, one of the biggest financial powerhouses in Australia will take shape.

More reading

• The Peninsula Energy (ASX:PEN) share price lifted 14% today
• Temperature check: How is the CSL (ASX:CSL) share price faring today?
• Sneaky way ASX company can boost share price by 7%
• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• 3 beaten down ASX shares that could be great value

Motley Fool contributor Gretchen Kennedy 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 Peninsula Energy (ASX: PEN) share price closed more than 14% higher today, and with no new announcements from the company, the question is why.

At the time of writing, the Peninsula Energy share price is trading at 12 cents, which is the highest it’s been since February.

Let’s dig deeper into the Peninsula Energy share price

The uranium mining company’s share price has increased by more than 22% since it released its half-yearly report last Thursday.

The results for the half-year ending 31 December 2020 included a strong balance sheet, with generally slightly higher incomes and lower losses than the previous year’s report. While it housed no red flags, neither did it contain any potential gold mines.

One point of difference is the fact the half-yearly report is the first released since the company began trading in the OTCQB Venture Market in February.

Being listed in the OTCQB Venture Market is reserved for penny stocks and small foreign companies. It allows a company greater access to overseas investors.

Upon being approved to trade in the OTCQB Venture Market, Peninsula CEO Wayne Heili said:

US based investors have demonstrated a keen awareness of Peninsula and our flagship Lance Project located in the State of Wyoming but they have been limited to trading of shares during Australian market hours.

Share price snapshot 

The Peninsula Energy share price started of poorly this month, but its latest gain might be the beginning of a recovery. It is currently trading at 12 cents, up from yesterday’s closing price of 10.5 cents.

The Peninsula Energy share price is currently up 55.8% over the past 12 months and up 4% year to date.  

The company has a market capitalisation of $93.8 million with approximately 893 million shares outstanding.

More reading

• The Peninsula Energy (ASX: PEN) share price continues to fly

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.

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