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S&P/ASX 200 Index (ASX: XJO) shares are taking a beating today, down 1.78% to 7,180.6 points at lunchtime.

The ASX 200 is falling after a poor trading session in the United States overnight. The Dow Jones Industrial Average Index (DJX: .DJI) fell by 1.66%, the S&P 500 Index (SP: .INX) dropped 1.85%, and the Nasdaq Composite Index (NASDAQ: .IXIC) was down by 2.05%.

However, the three ASX 200 shares below are also down today because they’re trading ex-dividend.

This means any investor who buys these ASX 200 shares today will not be entitled to the recently declared dividend.

Let’s take a look at the details.

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is down 4.7% to $3.08 at the time of writing.

The 1H FY23 report for this ASX 200 share revealed a $94.4 million underlying net profit after tax (NPAT). This was 17.1% down on the prior corresponding period (pcp).

Thus, there was a flow-on effect to dividends with an 11% cut pcp. Insignia Financial declared a 10.5 cent per share interim dividend with 50% franking payable on 3 April.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is slipping 1.07% to $63.82 at lunchtime on Friday.

WiseTech reported a 40% increase in underlying NPAT to $108.5 million for 1H FY23. Its free cash flow also increased by 53% to $137.8 million.

The company declared a massively boosted interim dividend of 6.6 cents, up 39% pcp, fully franked. The ASX 200 company will pay shareholders on 6 April.

Downer EDI Ltd (ASX: DOW)

This ASX 200 share is in the red, too, down 0.5% to $3.28 at the time of writing.

The engineering and construction business reported a 20% drop in profit for 1H FY23. The company said its revenue was higher, but costs also increased due to bad weather, labour shortages, and other things.

The interim dividend was consequently slashed by 58% pcp to 5 cents per share unfranked. Downer will pay its shareholders on 11 April.

Possibly also contributing to the Downer share price dip today is an update from the Fitch Ratings agency.

Fitch affirmed its BBB credit rating on Downer and maintains a negative outlook.

The post 3 ASX 200 shares trading ex-dividend today appeared first on The Motley Fool Australia.

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More reading

• Novonix shares will soon be booted out of the ASX 200. What might this mean for investors?
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Is the party well and truly over for ASX 200 coal shares?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 S&P/ASX 200 Index (ASX: XJO) is not a static index. At its core, it is supposed to represent the largest 200 companies on the ASX share market by market capitalisation. That sounds simple enough. But companies’ market caps change all the time – essentially alongside share prices. 

So that makes coming up with a list of the ASX’s largest 200 companies at any one time a little fraught.

To get around this reality, the company that administers the ASX 200 Index – S&P Global – conducts what is known as a rebalance every three months. During a rebalance, the index provider notes which companies have lost value and which have gained value. It then reorders the ASX 200 to reflect what are the largest 200 companies at that time.

Inevitably, this leads to some ASX shares joining the Index, taking the place of those that no longer qualify for entry.

It just so happens that the latest quarterly rebalance for the ASX 200 is about to take effect. And one of the unlucky companies that is about to lose its ASX 200 membership is ASX battery technology company Novonix Ltd (ASX: NVX).

As my Fool colleague covered earlier this week, the latest ASX 200 rebalancing is set to come into effect on 20 March later this month. But to prevent any market shenanigans, S&P Global announces the changes well in advance.

Novonix shares are about to get the ASX 200 flick

So we already know that Novonix is about to get the boot from the ASX 200. It will join other soon-to-be former ASX 200 shares which include Adbri Ltd (ASX: ABC), Ramelius Resources Ltd (ASX: RMS) and Smartgroup Corporation Ltd (ASX: SIQ).

In their place, the ASX 200 will welcome Life360 Inc (ASX: 360), NRW Holdings Limited (ASX: NWH), Polynovo Ltd (ASX: PNV), and Syrah Resources Ltd (ASX: SYR).

So what does the loss of ASX 200 membership mean for Novonix investors?

Well, it’s hard to put a finger on exactly. In terms of the company itself, nothing will change. ASX 200 inclusion has little impact on the day-to-day operations of a company. However, it could lead to some share price changes.

ASX 200 inclusion can give a company greater access to investment. Any ASX fund managers only have mandates to invest in ASX 200 shares. And the fact that Novonix is leaving the ASX 200 Index means that any index funds that track the ASX 200 (of which there are many) will have to sell out of their Novonix position.

This selling pressure could lead to a lower share price for Novonix as demand for its shares slackens. So if Novonx investors notice a change in the share price movements of this company over the next few weeks (or even months), this could well be why.

But Novonix shareholders shouldn’t be too worried. As we mentioned earlier, this will change nothing at the company itself. And Novonix can always be readmitted to the Index at some point in the future if the company becomes more prosperous.

But, at least for now, Novnonix will have to be content as an All Ordinaries Index (ASX: XAO) share, rather than an ASX 200 member. 

The post Novonix shares will soon be booted out of the ASX 200. What might this mean for investors? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend today
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Is the party well and truly over for ASX 200 coal shares?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and PolyNovo. The Motley Fool Australia has positions in and has recommended Smartgroup. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very disappointing note. At the time of writing, the benchmark index is down 1.7% to 7,184.3 points.

Four ASX shares that aren’t letting that stop them from climbing today are listed below. Here’s why they are pushing higher:

APM Human Services International Ltd (ASX: APM)

The APM share price is up almost 2% to $2.22. This morning, this human services company announced a new contract in North America worth $150 million. The new contract will see APM support phase two of the Ontario Employment Services Transformation.

Macquarie Telecom Group Ltd (ASX: MAQ)

The Macquarie Telecom share price is up almost 2% to $59.98. This is despite there being no news out of the telecommunication, cloud computing, cybersecurity and data centre services provider. However, it is worth noting that earlier this week, Goldman Sachs upgraded its shares to a buy rating with a $73.30 price target. It notes that the company is a “[p]ublic sector cloud & cybersecurity leader delivering robust, resilient growth.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 2.5% to $10.64. A number of ASX gold shares are rising on Friday, which has taken the S&P/ASX All Ordinaries Gold index 1.4% higher this afternoon. Investors may be switching to safe haven assets given the current market volatility.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price is up 2% to $8.32. With no news out of the company, this could also be down to investors looking to escape the volatility with safe haven assets. Impressively, this means that the Origin share price has defied the odds and hit a 52-week high today despite the market selloff.

The post Why APM, Macquarie Telecom, Northern Star, and Origin shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Uranium and gold: What are the best ASX shares to buy for these minerals?
• This ASX 300 director just loaded up on $2 million worth of her company’s shares
• 2 ASX 200 shares smashing new multi-year highs on Wednesday
• 5 things to watch on the ASX 200 on Wednesday
• 5 ASX 200 shares trading ex-dividend today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended APM Human Services International. 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 BHP Group Ltd (ASX: BHP) share price is on course for a four-day losing streak on Friday.

As we barrel towards midday, shares in the mining giant are getting the cold shoulder from investors. The company’s share price is down a frosty 2.1% to $45.62 apiece amid a lacklustre performance from mining shares broadly. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is similarly wincing in pain with its own 1.54% fall.

The only companies within the ASX materials sector dodging the red today are gold miners such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).

This begs the question: why is the BHP share price under pressure today?

Where is the worry coming from?

As usual, the first place to look is at the company’s own announcements. Today, BHP has announced the resignation of John-Paul Santamaria as a company secretary.

The resignation is effective immediately with two other company secretaries remaining — Stefanie Wilkinson and Prakash Kakkad. No additional information about the resignation was provided within the release.

While such resignations can impact the share price, it is likely that economic news is putting pressure on the BHP share price. Namely the release of inflation figures from China overnight which painted a softer-than-expected economic environment.

Hopes had been high for a powerful rebound in activity in China following the lifting of its zero-COVID policy. This was the case in January, as its consumer price index (CPI) lifted 2.1% year-on-year. However, the data for February was a much weaker 1% increase compared to a year ago.

The data could be casting doubt over the return of strong demand for base metals such as copper, nickel, and iron. This information douses fuel on the fire of concern following remarks shared by United States Federal Reserve chair Jerome Powell a couple of days ago.

The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.

More monetary tightening than previously expected would intentionally constrict economic growth — a headwind for commodities. Keep in mind, iron ore and copper prices are still off by 18% and 14% respectively from a year ago.

Is the BHP share price lagging behind the index this year?

From an outperformer to an underperformer. It hasn’t been the best start to the year for BHP shares.

Initially, the BHP share price was on fire — soaring more than 10% higher throughout January. However, the momentum reversed during February as commodity prices steadied.

Shares in the company are now only 0.8% above where they finished 2022, while the benchmark is still holding onto a 3.4% rise.

The post Why is the BHP share price taking a flogging on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here’s the BHP dividend forecast through to 2025
• Why 29Metals, BHP, Helia, and Rio Tinto shares are dropping today
• How can I hope to retire rich when the share market is falling?
• Why is the BHP share price sinking today?
• 5 things to watch on the ASX 200 on Thursday

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

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It’s no secret that Westpac Banking Corp (ASX: WBC) shares are a common choice for income investors seeking dividends on the ASX. As an ASX 200 big four bank share, Westpac has a long history of paying out large, and fully franked dividends to its investors.

But how much income are Westpac shares throwing off today? After all, this ASX bank share has had a bit of a rough time in recent years. Over the past 12 months, the Westpac share price is languishing, down just over 4% since March 2022. And over the past two years, the losses are even more severe at around 12%.

In fact, the Westpac share price has been something of a perennial loser, having lost more than 26% over the past five years:

So let’s hope Westpac’s dividends have been able to absorb at least some of this shareholder pain.

Well, they have. Over the past 12 months, Westpac has paid out two dividend cheques. As is the norm for an ASX 200 share. These consisted of the interim dividend of 61 cents per share investors received in June last year. As well as the final dividend of 64 cents per share that was paid out in December. Both dividends were fully franked, of course.

That gives the Westpac share price a healthy trailing dividend yield of 5.75% at today’s share price of $21.75 (at the time of writing), with an annual total of $1.25 in dividends per share.

So how much money would an investor have to have tied up in Westpac shares to get to an income of $150 per month?

Can we get $150 a month from Westpac shares?

Well, we can easily work that out. $150 a month would equate to a total of $1,800 per year.

At today’s dividend yield of 5.75%, an investor would need a total of approximately $31,300 invested in Westpac shares to get an annual dividend cheque worth $1,800 per year, or $150 per month. That’s assuming Westpac keeps its dividends at 2022’s levels in 2023, of course.

If Westpac ups its dividends this year, as it did last year, then that amount will fall. If Westpac trims its dividends, then we will need to have more cash in Westpac to get that same income.

Fortunately, we might well see the former scenario if one ASX broker is to be believed.

As my Fool colleague James covered earlier this week, ASX broker Morgans reckons Westpac will up its dividends over 2023, 2024 and 2025 and get to an annual total of $1.61 in dividends per share by FY2025.

No doubt, shareholders will be hoping that this prediction for Westpac’s dividends proves accurate.

The post Here’s how much I’d need to invest in Westpac shares to generate a $150 monthly income appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares like CBA being annihilated today?
• Morgans names 3 more of the best ASX shares to buy in March
• Forget high interest savings accounts and buy these ASX 200 dividend shares with huge yields: analysts
• Here’s how I’d invest $20,000 in ASX 200 shares for a supercharged second income
• Why Westpac shares are a smart buy for ASX bargain hunters

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. 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 volatility impacting the All Ordinaries Index (ASX: XAO) since the end of 2021 has been painful for some companies.

For investors, there can be a danger in trying to ‘catch a falling knife’. That’s the concept of investing in a business where the share price is falling, the investor buys in, and the share price keeps falling. A share price that falls from $100 to $20 can still halve again to $10.

However, finding businesses that are down heavily but are still expected to grow over the long term could be a good opportunistic strategy.

Here’s why the ASX All Ords shares in this article could be bargain buys after hitting 52-week lows.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty claims to be the leading online retailer of beauty products in Australia.

But, the Adore Beauty share price hasn’t seen a beautiful performance over the last 12 months. It’s down by around 60%.

It’s understandable that the ASX All Ords share has gone backwards a bit, considering interest rates have shot higher. That logic applies to most All Ords ASX shares that don’t actually benefit from higher interest rates, because higher interest rates act like gravity on valuations, pulling down asset prices.

But, the company is also suffering from the impact of reduced online shopping now that lockdowns are in the past and COVID impacts are fading.

For example, in the FY23 half-year result, the company reported that revenue dropped 17% to $93.6 million and active customers declined 9% to 801,000. The earnings before interest, tax, depreciation and amortisation (EBITDA) margin was just 0.4%, reflecting “lower operating leverage, inflationary pressures and phased investments in key initiatives”.

But, February 2023 sales were up 3.7%. I think the future is positive, with cost optimisation and margin improvement which could help profit in future years. The EBITDA margin is expected to improve, and I think more shoppers will buy online in the coming years.

FINEOS Corporation Holdings PLC (ASX: FCL)

FINEOS describes itself as a leading provider of core systems for life, accident and health insurance carriers globally. It works with seven of the 10 largest group life and health carriers in the United States as well as six of the 10 largest life and health carriers in Australia.

Over the past year, the FINEOS share price has dropped around 50%.

The ASX All Ord share’s FY23 half-year results also saw some financial numbers go backwards.

While subscription revenue went up 18.4% to €29.9 million, total revenue dropped 6% to €61.5 million, with North America representing 78.3% of total revenue. It made an EBITDA loss of €2.6 million, down from a profit of €6.5 million in the FY22 first half.

The statutory net loss was €14.6 million.

While the company advised that sales deal closing had been “slower” than it would like, it did say the pipeline is “very strong”. The business is investing in automation to achieve further efficiencies across the business.

Management believes that customers will invest in extending their use of the FINEOS platform to enhance their business operations by replacing legacy core systems. It expects to achieve positive free cash flow in the second half of FY24.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has dropped by more than 50% in the past six months, despite the infant formula business making progress on its global growth plans.

In the first half of FY23, gross revenue dropped 1%, though infant formula revenue jumped 44%.

Bubs said that its inventory provision balance was driven by “volatile trading conditions and slower-than-expected consumer offtake in key markets.”

The ASX All Ords share recorded an EBITDA statutory loss of $44.4 million.

Bubs claims to be the number one goat formula brand in both Australia and the US.

US and ‘other international’ sales increased 63% year over year, with the US contributing 31% of first-half group revenue.

China sales were reflected by lockdowns and channel disruption.

Bubs expects the growth rate in China to improve thanks to the easing of restrictions and borders reopening, with “momentum building in the fourth quarter.” It also sees the US as a key export market for the long term.

Management is confident it has sufficient capital to realise its growth ambitions. It had cash of $51.4 million on its balance sheet as at 31 December 2022.

The post Bargain buys? 3 ASX All Ords shares trading at 52-week lows right now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares on the move following results announcements
• Why is the Bubs share price on ice today?
• 3 ASX All Ord shares being hammered on earnings today
• Goldman Sachs says these ASX small cap shares are buy with major upside potential

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has recommended Adore Beauty Group, Bubs Australia, and FINEOS Corporation. 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 Xero Limited (ASX: XRO) share price is edging lower on Friday following a broad market selloff.

In late morning trade, the cloud accounting platform provider’s shares are down 0.5% to $86.62.

Though, the Xero share price is still up over 10% this week thanks to a strong gain on Thursday.

This has been driven by news that the company is looking to make significant cost savings by reducing its workforce.

Does this make Xero a stock to buy now?

The good news is that one leading broker doesn’t believe it is too late to jump on this new leaner, meaner Xero.

According to a note out of Goldman Sachs, its analysts have responded to the news by reiterating their conviction buy rating with an improved price target of $116.00.

Based on the current Xero share price, this implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Goldman continues to forecast strong revenue growth in the coming years thanks to structural tailwinds and its strong pricing power.

And thanks to these job cuts, the broker has boosted its earnings estimates meaningfully through to FY 2026. It explained:

We remain confident on the revenue outlook and forecast sustained growth (GSe +16% FY22-26E CAGR), given strong pricing power Xero has, the structural tailwinds driving cloud accounting adoption globally, and that Xero has somewhat protected its go-to-market functions in this restructure.

Although no trading update was provided, high frequency data suggest near-term subscriber trends remain solid. We lower our FY24-26 revenues by 1 to 3% on lower international sub growth (XRO vacancies are ANZ skewed currently at 80% of open roles vs. 56% staff). We upgrade FY24-26E EBITDA by +9-17% given the step change in opex, noting that we were +16 to +19% ahead of prior VA consensus.

Goldman ultimately expects this to lead to net profit after tax of:

• NZ$21.1 million in FY 2023
• NZ$78.4 million in FY 2024
• NZ$122.9 million in FY 2025
• NZ$179.7 million in FY 2026.

All in all, the broker continues to see Xero as the best tech stock to buy right now on the Australian share market. It concludes:

Overall we continue to see Xero as our top large cap technology pick, with the shift to profitability as a clear inflection point on several key debates: (1) priorities of new CEO in terms of scaling vs. profitable growth; (2) highlighting the scale and earnings potential of the business (masked since FY19 given breakeven FCF despite ARR > doubling); (3) supporting a multiple re-rate (noting the divergence in ASX profitable/unprofitable tech since 2021).

The post Is the new leaner, meaner Xero stock a buy right now? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Why is the Xero share price racing 11% higher today?
• Xero share price on watch amid major cost cutting plans
• Top ASX growth shares to buy in March 2023

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 banking sector is a sea of red on Friday morning.

At the time of writing, all of the big four banks are trading sharply lower along with the regional players.

Here’s a summary of what’s happening with ASX 200 bank shares today:

• The ANZ Group Holdings Ltd (ASX: ANZ) share price is down 3%
• The Bank of Queensland Ltd (ASX: BOQ) share price has dropped 2.2%
• The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is 2.8% lower
• The Commonwealth Bank of Australia (ASX: CBA) share price has fallen almost 3%
• The Macquarie Group Ltd (ASX: MQG) share price is down almost 3%
• The National Australia Bank Ltd (ASX: NAB) share price has dropped 2.5%
• The Westpac Banking Corp (ASX: WBC) share price has fallen 3%

Why are ASX 200 bank shares falling?

Investors have been hitting the sell button on Friday in response to a very poor night of trade for US bank stocks on Wall Street. In fact, things were so bad for bank stocks that the financial sector had its worst session since 2020, dropping a sizeable 4.1%.

According to CNBC, this was driven by concerns that higher interest rates could result in banks facing large loan losses.

This followed news that the SVB Financial share price had crashed 60% after it announced a plan to raise more than $2 billion in capital in a bid to offset losses from bond sales.

Is this a buying opportunity?

Given that Australian banks appeared to be in strong financial health when they last updated the market, this could potentially be a buying opportunity for investors. Especially with the Reserve Bank hinting that there may only be one more rate hike to come.

Two broker recommendations that could be worth thinking about involve ANZ and Westpac.

Citi has named ANZ as its top pick in the sector and has a buy rating and $29.20 price target on its shares.

Whereas Goldman Sachs has a conviction buy rating and $27.74 price target on Westpac’s shares. It has named Australia’s oldest bank as its top pick in the sector.

The post Why are ASX 200 bank shares like CBA being annihilated today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Piedmont Lithium Inc (ASX: PLL) share price has returned from its trading halt and dropped into the red.

At the time of writing, the lithium developer’s shares are down 4% to 84 cents.

Why is the Piedmont Lithium share price under pressure?

Investors have been selling down this lithium share on Friday in response to a short seller report from Blue Orca. This report was covered in greater detail here yesterday.

Blue Orca alleges that Atlantic Lithium Ltd (ASX: A11) obtained key Ghana mining licenses by making secret payments and promises of payment to the immediate family of a high-level Ghana politician.

The short seller believes this will mean that the Ghanian government will not ratify Atlantic Lithium’s mining licenses, causing significant issues for Piedmont Lithium.

Blue Orca summarises:

We are short Piedmont because without Atlantic’s Ghana supply, Piedmont and any promise of near-term revenue from its much-hyped Tennessee facility are dead on arrival. Without Ghana, industry experts and even a former Piedmont senior executive have confirmed that Piedmont is unlikely to find a source of replacement spodumene.

Piedmont Lithium responds

This morning, Piedmont Lithium has responded to the allegations. It notes that Atlantic Lithium “outrightly refutes the allegations of impropriety made by the Short Report.”

The company also notes that “Atlantic’s recent application for a Mining License for its lithium project in Ghana excludes the two licenses purchased as part of its acquisition of Joy Transporters Ltd referred to in the Short Report, which do not form part of Atlantic’s defined resources for its Ghana lithium project.”

In addition, the company revealed that it believes its Tennessee facility could find alternative sources of spodumene should it be required. It commented:

Piedmont has the right to purchase 50% of Atlantic’s production of spodumene concentrate from its Ghana lithium project, at market prices on a life-of-mine basis, and to earn a 50% interest in the Ghanaian projects. Piedmont currently contemplates utilizing spodumene concentrate from this offtake agreement as partial feed for its proposed Tennessee Lithium hydroxide plant.

However, if for any reason Piedmont does not exercise its right to this offtake supply, the Company is confident that alternative sources of spodumene concentrate would be available to feed the Tennessee facility, as current and future spodumene producers seek to feed the growing U.S. electric vehicle market and qualify for the benefits available under the Inflation Reduction Act of 2022.

The post Piedmont Lithium share price sinks following short attack response appeared first on The Motley Fool Australia.

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More reading

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• Piedmont Lithium share price frozen amid short-seller attack
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• Why A2 Milk, Piedmont Lithium, QBE, and Super Retail shares are racing higher

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

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While interest rates are improving, there isn’t a savings account of term deposit that could match the potential returns on offer from the ASX stock named below.

In fact, if you’re patient, you could be earning over $1,000 in passive income from a $10,000 investment next year.

$1,000 income from this ASX stock

If you were to invest $10,000 into Mineral Resources Ltd (ASX: MIN) shares right now, you would receive 112 shares based on the current share price of $89.01.

According to a note out of Bell Potter, its analysts are expecting the mining and mining services company to pay fully franked dividends per share of $3.73 in FY 2023. This means that those 112 shares would provide investors with income of approximately $420.

But it gets much better in FY 2024. Thanks to the company’s booming lithium operations, the broker is expecting a huge jump in the Mineral Resources dividend to a fully franked $9.41 per share.

If this forecast is accurate, those 112 shares would yield a massive $1,053 in dividends.

And if you continue to hold onto this ASX stock in FY 2025, Bell Potter reckons you’ll be benefiting from another dividend increase to $9.60 per share. This would generate $1,075 in passive income from those 112 shares.

What about capital gains?

Another positive is that Bell Potter believes fair value for the Mineral Resources share price is notably higher than current levels.

It has a buy rating and $110.00 price target on its shares.

If this ASX stock were to climb to that level, your 112 shares would have a market value of $12,320. That’s a 23% return on your original investment even before the dividends start rolling in.

The post Investing $10k in this ASX stock could generate passive income of over $1k per year appeared first on The Motley Fool Australia.

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More reading

• Forget high interest savings accounts and buy these ASX 200 dividend shares with huge yields: analysts
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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