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Rising inflation and interest rates, the possibility of a global recession, fears of more bank failures, falling company profits, and experts saying there’ll be little capital growth in ASX shares over the next decade.

Add share price volatility to this mix, with S&P/ASX 200 (ASX: XJO) shares up 7.6% in January, then down 2.9% in February, and now down 3.8% in March so far.

It’s understandable that investors might see the stock market as non-fertile ground right now!

Is it safe to invest in the stock market today?

‘Safe’ is a difficult word in relation to investing, because investing inherently involves some risk. Whether you’re buying ASX shares, bonds, mutual funds, or bricks-and-mortar real estate, things can go wrong.

Your choices are to leave your money in cash, or invest and mitigate the risks as much as possible.

Examples of good mitigation strategies include buying ASX 200 blue-chip shares only, and diversifying across the 11 market sectors. But the big one is time. Investing success requires time to allow your investments to deliver great returns that reliably grow your wealth for retirement.

Investing for most amateurs should involve long-term thinking. We’re not traders; we’re investors.

The classic way to go with ASX 200 shares investing is simply buying and holding. Buy high-quality ASX 200 shares and hold them through thick and thin — for decades.

Take your dividend payments as cash to supplement your income, or ideally, reinvest them automatically through dividend reinvestment plans (DRPs) and let compounding do its thing over time.

If you have that approach, then arguably, it’s pretty safe to invest at any time. But that’s only if you’re investing funds you don’t need.

That means you have to set up your emergency fund before you start investing with other spare cash.

1 reason to avoid the stock market

Not having an emergency fund in place first is a good reason to avoid ASX shares investing.

As explained in our ‘Investing for Beginners’ Education Hub, almost all of us will face periods of financial hardship, and it’s a great idea to have a nice amount of cash sitting in an account when you do.

The last thing you want to be dealing with when under financial pressure is having to sell your ASX shares to free up cash. You may end up having to sell at a loss, which will cause you even more stress.

Depending on your circumstances, three or six months’ worth of living costs is a good guide as to how much you should have in your emergency fund before starting to invest in ASX shares.

It’s a good idea to keep your emergency monies in a high-interest savings account or a home loan offset account. That way, your funds are doing something for you while sitting there waiting for an emergency.

3 great reasons to invest in ASX 200 shares today

Inflation, yield, and capital growth

Due to high inflation right now, leaving spare funds in cash is like guaranteeing yourself a negative return in real terms.

Annual inflation in Australia is currently running at about 7%. Over this past year, you might have received 2% to 3% interest. See the disparity? It’s a negative return.

Also, remember that cash has no prospect of capital growth. It’s a yield play only.

Let’s compare your interest received on cash last year to the returns of some top 10 ASX 200 shares.

In 2022, National Australia Bank Ltd (ASX: NAB) shares delivered 4.2% capital growth and paid a 5.4% fully franked dividend yield.

BHP Group Ltd (ASX: BHP) shares increased by 10% and paid a dividend yield of 9%.

Of course, each ASX 200 share will perform differently. But you get my drift.

If you choose high-quality and reliable dividend-paying ASX 200 shares, you’ll likely get a better yield than cash in the bank. At least for now, while inflation is very high.

And in the good years, you’ll likely pick up some capital gains, too.

ASX 200 share prices are down

The ASX 200 has lost about 6.2% since the start of 2022. That’s when people worldwide began worrying about rising inflation and interest rates.

Now, 6.2% doesn’t sound like much but remember that’s the average over 200 stocks. Some ASX shares have been hit harder by the macroeconomics, with some share prices down by 30%, 40%, 50%, or more.

The best time to buy ASX 200 shares is when they’re trading low. That means being brave and buying in uncertain times when the market is volatile. Psychologically, that’s hard. But you can potentially make it more palatable by only buying ASX large-cap shares.

These are long-established blue-chip companies that have made it through tough economic periods many times before. Even if market sentiment drags their share prices down now and then, these underlying businesses are very likely to remain strong and simply carry on.

Share price falls are only short-term paper losses if you’re holding your ASX shares for the long term. And you keep getting your dividends in the meantime.

The average 10-year return of the ASX 200, including dividends, is 8% per annum.

For advice on how to choose ASX shares, click here.

You won’t miss out on the next bull run

No market downturn can last forever. Economies and markets are cyclical, which means you’ll have challenging years like we’re in now, followed by good years, followed by challenging years.

The factor of time smoothes all this volatility out. Holding for the long term is very easy, and staying in the market during challenging years means you’ll be sitting pretty for the next bull run.

Click on the five-year button below to get a good look at the bull run that followed the COVID-19 market crash in 2020. Also click on the 10-year button to see the bull run that followed the downturn in 2018.

Starting your investment portfolio during a challenging market (i.e., today’s) can give you a head start on long-term investing success. But we don’t know how long current market conditions might continue, nor whether a global recession will eventuate this year.

If you’re starting your investment journey today, be mindful that it might be a rocky road for a while. You need to be able to grit your teeth and ride it out.

The post 1 reason to avoid the stock market, and 3 great reasons to invest today appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price on the move today?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Where I would go hunting for defensive ASX 200 shares with upside
• AMP share price dips despite $337m sale win

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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.

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The Woodside Energy Group Ltd (ASX: WDS) share price is in the green today.

At the time of writing, Woodside shares are up 1.95% to $31.60 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.24% so far today.

So what is lifting the Woodside share price on Tuesday?

What’s happening?

Woodside is not the only energy share on the rise today. Santos Ltd (ASX: STO) shares are currently 1.26% higher, in line with the benchmark index. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.97% at the time of writing.

Woodside shares are rebounding today following a tough couple of weeks. Since market close on 7 February, Woodside shares have sunk 16% amid falling oil prices.

However, today is a different story. As my Foolish colleague James reported this morning, the WTI crude oil price jumped 1.3% overnight to US$67.61 a barrel, while the Brent crude oil price rose 1.1% to US$73.79 a barrel.

In a research note this morning, ANZ senior economist Catherine Birch was optimistic about the outlook for oil demand. She said:

Crude oil price recovered as risk appetite improved following regulators’ moves to shore up confidence.

Commodity traders, including Citadel and Trafigura, believe the recent banking sector turmoil is likely to be limited in duration with only minimal damage to the wider economy.

This should see crude oil demand remain on an upward trajectory.

The oil price had fallen to its lowest level in 15 months in recent days amid the banking scare in the US and Europe. Commenting on this trend, Price Futures Group analyst Phil Flynn told Reuters there is a lot of “fear-based movement” in oil prices, adding:

We’re not moving at all on supply and demand fundamentals, we’re just moving on the banking concerns.

Despite lifting overnight, the WTI oil price is now down 0.35% to US$67.40 a barrel, while Brent crude is sliding 0.14% to US$73.69 a barrel. Natural gas is up 0.99% to US$2.25 per MMBtu, according to Bloomberg.

Woodside is due to dish out a US$1.44 per share dividend on 5 April after the company delivered a record underlying NPAT of US$5.23 billion in the 2022 calendar year.

Woodside share price snapshot

The Woodside share price has slid 0.06% in the last 12 months but nearly 11% in 2023 to date.

For perspective, the ASX 200 has dropped 4% in the past 12 months.

Woodside has a market capitalisation of about $60 billion based on the current share price.

The post Why is the Woodside share price on the move today? appeared first on The Motley Fool Australia.

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More reading

• Want to buy Woodside shares for dividends? You need to know this
• 5 things to watch on the ASX 200 on Tuesday
• Why did the Woodside share price slide today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• What Goldman Sachs new oil price forecast could mean for ASX 200 oil shares in 2023

Motley Fool contributor Monica O’Shea 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.

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As most of us would be aware, the last week or two on the share market has been a wild time for ASX shares. The S&P/ASX 200 Index (ASX: XJO) is in one of those moods where it seems to swing dramatically most days, either to the upside (or more commonly it seems), to the downside.

Today, thankfully, it’s the former scenario. But the fact remains that over the past two weeks, the ASX 200 has lost a meaningful 5.2%.

It’s never fun seeing the value of your investments move around like this. But I try and use volatility to my advantage, and accelerate my purchases of shares when the prices are moving around like this. So last week, I topped up my portfolio. Let’s discuss the two shares that I bought.

Well, they weren’t exactly ASX shares, although they represent an investment in ASX shares. I actually toped up two of my exchange-traded fund (ETF) positions last week.

I bought these two ASX shares last week

The first was the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF is the most popular on the ASX by far. It represents an investment in the largest 300 companies on the ASX.

That’s everything from Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG) to Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Limited (ASX: HVN).

This ETF is a cornerstone of my portfolio, so I was happy to nab some of its units at one of the cheapest prices we have seen in months last week. I like the diversity this fund brings, along with the exposure to some of the best-run businesses in Australia. This ETF also pays out quarterly dividend distributions, which come with franking credits too.

The Vanguard Australian Shares ETF has returned an average of 8.95% per annum since its inception in 2009. That’s a historical return I’m happy to hitch a wagon to.

The second ETF I bought last week is actually a very similar one to the first. It was the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). The Vanguard Australian Shares ETF is great, but it is a fund that is heavily exposed to the big four banks and large miners that dominate our share market.

But the Vanguard Small Companies ETF focuses on the smaller end of the ASX. As such, it has far more even exposure to other sectors like consumer discretionary and real estate.

Some of its current top holdings are names like Carsales.com Ltd (ASX: CAR), Lynas Rare Earths Ltd (ASX: LYC) and Cleanaway Waste Management Ltd (ASX: CWY).

Over the past three years, this ETF has averaged a return of 9.82% per annum. The fund also pays out hefty dividends every quarter. So for these reasons, I was also happy to top up my position in this ETF last week.

The post I bought these two ASX shares last week, here’s why appeared first on The Motley Fool Australia.

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More reading

• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF
• 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Does the Vanguard Australian Shares Index ETF (VAS) hold the ticket to building long-term wealth?
• Top ASX ETFs to buy in March 2023

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Vanguard Msci Australian Small Companies Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool Australia has recommended Carsales.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A little-known ASX lithium share is setting the bar high today.

While the All Ordinaries Index (ASX: XAO) is enjoying a strong rebound, up 1.1%, the ASX lithium company rocketed 9.3% on open to 29.5 cents per share.

The ASX lithium share is currently trading for 29 cents per share, up 7.4%.

Any guesses who?

If you said Azure Minerals Ltd (ASX: AZS), go to the front of the class.

What’s driving investor interest in the ASX lithium share?

Investors are bidding up the Azure Minerals share price after the company reported some strong lithium exploration results at its joint venture Andover Project, located in the West Pilbara region of Western Australia.

Azure holds a 60% interest in Andover while privately held resources company Creasy Group holds the other 40%.

According to the release, ongoing lithium-focused pegmatite sampling across the project is continuing to uncover very high grades of lithium in the outcrop.

The latest assay results returned samples grading above 1% Li2O. Thirteen samples from returned lithium grades were over 3.80%, with one sample grading as high as 4.67% Li2O.

Commenting on the results sending the ASX 200 lithium share higher today, Azure managing director Tony Rovira said:

The identification of abundant outcropping spodumene-rich pegmatites containing high grades of lithium at numerous prospects across Andover confirms the potential for this project to host substantial lithium resources.

Rovira added, “The company is very confident that the drilling we’re currently undertaking will identify and define substantial lithium mineralisation and potentially resources.”

Diamond drilling at Andover is continuing. Azure Minerals reported that it has visually identified spodumene-rich pegmatites in the first two completed drill holes.

Azure Minerals share price snapshot

As you can see in the chart below, the ASX lithium share has had a very strong run in 2023. With today’s intraday gains factored in, the Azure Minerals share price is up 26% since the closing bell on 30 December.

The post Guess which ASX lithium share just leapt 9% on ‘very high grade’ results appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs is bullish on the Telstra share price
• Ex-Tesla Australia boss sentenced 2.5 years for insider trading ASX lithium shares
• New Hope share price rockets 6% as half-year profits double
• This ASX 200 share is charging higher on $2.5bn asset sale news
• Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m

Motley Fool contributor Bernd Struben 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.

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The Telstra Group Ltd (ASX: TLS) share price could be great value at the current level.

That’s the view of analysts at Goldman Sachs, which remain very positive on the telco giant.

What is Goldman saying about Telstra?

Goldman Sachs notes that the Australian telco sector returned to positive top-line growth during the first half of FY 2023 following an extended period of declining revenue. Pleasingly, the broker expects this to continue thanks to mobile. It commented:

We remain bullish on near-term mobile revenues following 1H23 results and mgmt. meetings, underpinned by ongoing price rises, roaming and accelerating subscriber growth (albeit prepaid skewed). […] Industry feedback suggests that mobile rationality is set to continue, with the only potential risk (in our view) to further pricing increases, if TLS/Optus postpaid sub growth was to decline for an extended period.

And while the sector is expected to face inflationary pressures, the broker believes that Telstra is well-placed to manage the situation. It commented:

We expect the sector to continue facing inflationary pressures, impacted by mandated wage increases (TPG +4.5% CY23E growth incl. super, TLS +2.5%) alongside higher energy and equipment (opex/capex) costs.

To mitigate these headwinds, operators have a range of cost out programs in place. These include (1) Telstra’s $500mn net cost out program across FY22-25, with aspirations for a small reduction in FY23 opex. Although this is now more challenging vs. when the target was set in Sept-21, we believe that it is consistent with global peer programs (VZ/BT/VOD) with media reports recently suggesting TLS is looking to accelerate this program.

Where is the Telstra share price heading?

According to the note, Goldman has reiterated its buy rating and $4.60 price target on the telco giant’s shares.

Based on the current Telstra share price of $4.16, this implies potential upside of just over 10.5% for investors over the next 12 months.

And with Goldman expecting a 17 cents per share dividend in FY 2023, which equates to a 4.1% yield, the total potential return stretches to almost 15%.

The post Why Goldman Sachs is bullish on the Telstra share price appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Forget term deposits and buy these ASX 200 dividend shares: analysts
• These ETFs could be top options for buy and hold investors
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A former boss of Tesla Inc (NASDAQ: TSLA)’s Australian operations has been sentenced to 2.5 years of imprisonment for insider trading.

The Sydney district court handed down the sentence to Kurt Schlosser, who used to be Tesla Australia’s country director.

While holding that position, he was told of a confidential, in-principle agreement that Tesla’s US head office had struck with Piedmont Lithium Inc (ASX: PLL) to supply lithium to the car maker.

The court heard from the Australian Securities and Investments Commission that Schlosser bought 86,478 shares in Piedmont Lithium in two transactions before that deal was announced to the public.

“[He] also communicated that inside information to a friend in circumstances where it was likely that person would also acquire Piedmont Lithium Ltd shares,” ASIC stated. 

“Mr Schlosser, shortly after the announcement was made public, sold the shares for a realised profit of $28,883.53.”

‘Insider trading undermines investor confidence’

Back in November, Schlosser pleaded guilty to one count of trading while in possession of inside information and one count of communicating inside information to an associate.

ASIC deputy chair Sarah Court warned that her organisation would act against any behaviour that “damages the integrity of Australia’s financial markets”. 

“Insider trading undermines investor confidence and gives individuals an unfair advantage,” she said.

“This criminal outcome demonstrates the serious consequences for trading when in possession of inside information.”

In addition to the sentence, Schlosser is disqualified from managing corporations for five years.

The court also ordered him to give up the $28,883.53 profit he made from the illegal trades.

Schlosser was released from custody immediately upon recognizance.

The post Ex-Tesla Australia boss sentenced 2.5 years for insider trading ASX lithium shares appeared first on The Motley Fool Australia.

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More reading

• Piedmont Lithium shares: 150% upside or big short opportunity?
• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• Why Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping
• Piedmont Lithium share price sinks following short attack response
• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

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The New Hope Corporation Limited (ASX: NHC) share price is up 6.2% in late morning trade on Tuesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $4.90. Shares are currently trading for $5.21 apiece.

ASX 200 investors are bidding up New Hope shares following the release of the coal miner’s half-year results this morning for the six months ending 31 January.

And some results they were.

What’s spurring ASX 200 investor interest today?

The New Hope share price is rocketing after the miner reported a remarkable 103% increase in net profit after tax (NPAT) compared to the prior corresponding half year. NPAT for the six months came in at $669 million.

The massive profit boost was driven by a 54% year on year surge in revenue, which came in at $1.58 billion.

Income investors may also be snapping up shares today after the company declared fully franked, interim dividends of 40 cents per share (inclusive of a 10 cps special dividend). At the current New Hope share price that works out to an instant yield of 7.7% from the interim dividend alone.

Well, not quite instant.

New Hope stock trades ex-dividend on 17 April. Investors holding shares at market close on that day can expect the outsized dividend payout to hit their bank accounts on 3 May.

What’s next for the New Hope share price?

Looking ahead to what could impact the New Hope share price over the coming months, the miner said global thermal coal demand was outstripping supply, pointing to Southeast Asia as an expected growth market.

It noted that “All major coal suppliers face considerable constraints, placing increased value on already permitted, low cost operations.” 

The company added that the New South Wales government has granted its Bengalla Exploration Licence, which “should provide further long-term growth opportunity”.

What kind of growth?

New Hope said it has the “ability to almost double current production levels over the next three years through organic growth”.

New Hope share price snapshot

Though still down in calendar year 2023, the New Hope share price remains up an impressive 76% over the past 12 months.

The post New Hope share price rockets 6% as half-year profits double appeared first on The Motley Fool Australia.

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• Guess which ASX 200 coal share just posted a 100% profit jump
• Top brokers name 3 ASX shares to buy today
• Analysts warn of future earnings downgrades for ASX 200 coal shares
• 3 ASX 200 coal shares to buy for big gains and huge yields: Morgans
• Is the party well and truly over for ASX 200 coal shares?

Motley Fool contributor Bernd Struben 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.

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The Incitec Pivot Ltd (ASX: IPL) share price is having a strong session.

In morning trade, the ASX 200 industrial chemicals company’s shares were up almost 7% to $3.33.

The Incitec Pivot share price has since pulled back a touch but remains up over 3% currently.

Why is this ASX 200 share charging higher?

Investors have been buying the company’s shares on Tuesday in response to the release of an announcement after the market close yesterday.

According to the release, the company has reached an agreement with CF Industries for the sale of its ammonia manufacturing facility located in Waggaman, United States.

The two parties have agreed a deal with a total value of US$1.675 billion (A$2.50 billion). This includes a 25-year ammonia supply agreement with CF Industries for up to 200,000 short tonnes of ammonia per annum to support Incitec Pivot’s Dyno Nobel Americas (DNA) explosives business.

Management also highlights that the supply agreement secures ammonia at producer cost for the DNA business. The value allocated to the ammonia supply agreement is approximately US$425 million (A$634 million) which will be offset from the cash proceeds of the sale agreement for Waggaman.

All in all, after tax and the ammonia offtake agreement, the company expects to bank US$837 million (A$1,249 million) in net cash proceeds. These proceeds are intended to be allocated in line with the company’s previously disclosed capital allocation framework.

Though, the deal remains subject to US anti-trust regulatory clearance and the completion of other customary closing conditions.

Why is it selling Waggaman?

Management advised that it decided to sell the Waggaman operation in response to a strategic review.

Incitec Pivot’s managing director and CEO, Jeanne Johns, added:

Our announcement today represents a pivotal step in the execution of our strategy to enhance the focus of our businesses on the high value technical and service needs of our explosives customers. We are also delighted to be partnering with CF Industries, a world class producer of ammonia with an excellent manufacturing and safety track record. We are looking forward to this journey as we seek to deliver long-term sustainable value creation for our shareholders and stakeholders.

The post This ASX 200 share is charging higher on $2.5bn asset sale news appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday

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Fortescue Metals Group Limited (ASX: FMG) boss Andrew ‘Twiggy’ Forrest is out for nickel, posting a bid for All Ordinaries Index (ASX: XAO) miner Mincor Resources NL (ASX: MCR).

The Aussie billionaire’s privately-owned Wyloo Metals made a $760 million offer for the battery metals stock this morning.

The offer, if accepted, could see shareholders receiving $1.40 for each of their securities – a 35% premium on the Micor share price’s previous close. Though, the market appears to think the rich lister could go higher.

Stock in the ASX All Ords takeover target is surging 40.87% to trade at $1.465 apiece at the time of writing.

Let’s take a closer look at the offer on the table from the Fortescue icon.

Twiggy tables $760m bid for ASX All Ords nickel miner

Fortescue’s Twiggy Forrest has put forward an on-market takeover offer to buy all shares in ASX All Ords nickel producer Mincor.

The billionaire already boasts a 19.99% stake in the battery metals stock.

That stake was worth around $111 million when the Mincor share price closed Monday’s session at $1.04. At that price, the company boasted a market capitalisation of around $557 million according to the ASX.

Though, the $1.40 all-cash bid still represents a bargain compared to the stock’s recent highs. The Mincor share price peaked at $2.84 in April 2022.

Not to mention, the ASX All Ords company offered new shares for $1.39 apiece under a recent $55 million placement.

On announcing the bid, Wyloo Metals commented:

Wyloo believes that the offer represents attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.

Wyloo considers these risks may be weighing on Mincor’s valuation, as demonstrated by the 49% decline in its share price over the last 12 months.

The offer period in which Mincor shareholders can accept the Fortescue boss’ offer will open on 5 April. It will close on 8 May unless it’s extended.

Twiggy first bought into the ASX All Ords nickel share in 2019, snapping up a 6% stake.

The post Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m appeared first on The Motley Fool Australia.

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• Is the Fortescue share price a buy at $21?
• How to generate $10,000 of passive income from Fortescue shares
• Is it time to buy ASX 200 iron ore shares right now?
• Fortescue share price marching higher as green hydrogen plans heat up
• Are Fortescue shares back on the menu amid job cuts?

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

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Although the tech sector has been a pocket of strength on the Australian share market this year, it is still down materially over the last 12 months.

This means there could be some huge bargains out there for patient investors.

Goldman Sachs agrees with this view and has picked out a number of ASX tech shares that it believes investors should be buying before it’s too late.

The first two are Life360 Inc (ASX: 360) and Xero Limited (ASX: XRO), which it believes will benefit from a shift to profitable growth. This is due to the fact that “profitable tech continues to trade at a large premium to non-profitable.”

Goldman has a buy rating and $7.85 price target on Life360’s shares and a conviction buy rating and $116.00 price target on Xero’s shares.

What else is Goldman saying about ASX tech shares?

The broker also reiterates its bullish view on profitable ASX tech shares Data#3 Ltd (ASX: DTL), Macquarie Telecom Group Ltd (ASX: MAQ), and REA Group Ltd (ASX: REA).

It has price targets of $9.20, $73.30, and $158.00, respectively, on their shares.

Goldman summarises:

We believe investors will reward companies that demonstrate (1) resilient top-line momentum and/or pathways to revenue upgrades; (2) tight cost management or cost-out programs; and (3) reasonable valuations in light of the elevated rate environment. We refer to our updated Tech Resilience Screen as a framework to identify companies with strong balance sheets, high recurring revenue, defensive end markets, mission critical products and shorter time-to-value.

As such we reiterate our top picks and delineate our Buy calls into more “offensive” names that trade at low valuations and are moving to free cash flow profitability (Xero (on CL)/Life360) and “defensive” profitable names with resilient end-markets and visibility to consensus upgrades (REA (on CL), Data#3 and Macquarie Telecom).

The post Goldman Sachs names 5 of the best ASX tech shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy now
• Life360 share price higher on 100% revenue surge
• 7 ASX shares flying under the radar to buy now: Goldman Sachs

Motley Fool contributor James Mickleboro has positions in Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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