Tag: Motley Fool

  • Why CBA, Coronado Global, Domino’s, and St Barbara shares are dropping today

    A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.

    A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped into the red. At the time of writing, the benchmark index is down 0.4% to 7,309.4 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Commonwealth Bank of Australia (ASX: CBA)

    The CBA share price is down 2% to $99.50. This has been driven by the banking giant’s shares trading ex-dividend on Wednesday. Eligible shareholders can now look forward to receiving CBA’s $2.10 per share fully franked interim dividend at the end of next month on 30 March.

    Coronado Global Resources Inc (ASX: CRN)

    The Coronado Global share price is down over 5% to $2.01. This follows the release of the coal miner’s full-year results this morning. Coronado Global reported a 66.2% increase in revenue to US$3,571.5 million and a 307.4% jump in net profit to US$771.7 million. The latter was a touch short of Goldman Sachs’ estimate of US$780 million.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The Domino’s share price has crashed 25% to $53.79. Investors have been hitting the sell button in a panic today after the pizza chain operator’s performance deteriorated in December and led to an even weaker than expected half-year result. The company has been struggling in its battle with inflation.

    St Barbara Ltd (ASX: SBM)

    The St Barbara share price is down 10% to 57.5 cents. This follows the release of the gold miner’s half-year results, which revealed a 52% decline in gross profit to $70 million and a statutory loss of $407 million. The latter reflects the non-cash impairment of its Atlantic and Simberi operations.

    The post Why CBA, Coronado Global, Domino’s, and St Barbara shares are dropping today appeared first on The Motley Fool Australia.

    4 ways to prepare for the next bull market

    It’s a scary market. But staying in cash when inflation is surging likely won’t do investors any good either.

    And when some world-class companies have pulled back considerably from their recent highs… All while their fundamentals remain unchanged…

    It begs the question…

    Do you have these 4 stocks in your portfolio?

    See The 4 Stocks
    *Returns as of February 1 2023

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    Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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  • 2 ASX 200 mining shares getting totally hammered on results announcements

    plummeting gold share priceplummeting gold share price

    Two S&P/ASX 200 Index (ASX: XJO) mining shares are tumbling as much as 9% on the release of earnings today. That’s despite one posting a whopping 300% jump in profits.

    Let’s take a closer look at the news seemingly driving them deep into the red on Wednesday.

    Right now, the ASX 200 is trading 0.28% lower at 7,316 points.

    2 ASX 200 mining shares tumbling on earnings today

    The St Barbara Ltd (ASX: SBM) share price is suffering on the release of the company’s first-half earnings, tumbling 9.4% to trade at 58 cents.

    The ASX 200 gold mining share posted a $70 million gross profit – down 52% – amid higher operating costs and lower production.

    It also posted a $407 million statutory loss for the half – down from the prior comparable period’s (pcp) $14 million profit. The company didn’t declare a dividend for the period.

    St Barbara managing director and CEO Dan Lougher commented on today’s release, saying:

    Our financial results reflect the operational difficulties we have endured during the first half of the financial year, exacerbated by the non-cash impairment of Atlantic and Simberi. However, there is plenty to look forward to in the second half of FY23 and beyond.

    Indeed, the company announced plans to merge with peer Genesis Minerals Ltd (ASX: GMD) and demerge its non-Leonora assets in December.

    Joining the ASX 200 mining share in the red today is its coal producing peer Coronado Global Resources Inc (ASX: CRN). Its stock is down 5.4% right now, trading at $2.015.

    It comes after the company dropped its full-year earnings, detailing a 66% jump in revenue, reaching US$3.6 billion, and a US$772 million profit – up 307% year-on-year. That saw it declaring a 5 US cent per share dividend for the period.

    The lift in earnings was mainly due to soaring coal prices. Indeed, its average realised price per tonne of metallurgical coal sold was US$265.80. That’s nearly double that of the prior year.

    Meanwhile, the energy producer saw its saleable production and sales volumes each fall 7%.

    Commenting on the results, managing director and CEO Gerry Spindler said:

    Our record financial results and returns have occurred despite the impacts to production from considerable wet weather conditions in Queensland and global economic circumstances that have driven significantly higher inflation.

    Expectations are that weather patterns will improve in 2023 and global inflationary impacts will ease, which should translate to improved production and costs for our business.

    I remain extremely confident in our ability to address all challenges presented to the company and in our ability to continue to provide enhanced value and returns to all shareholders.

    Coronado expects coal prices to stay high. It hopes to produce between 16.8 million metric tonnes and 17.2 million metric tonnes in 2024. It also expects to realise a mining cost per tonne sold of between US$84 to US$87.

    The post 2 ASX 200 mining shares getting totally hammered on results announcements appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of February 1 2023

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    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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  • Why Origin, Santos, Service Stream, and WiseTech shares are racing higher

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and taken a tumble on Wednesday. In afternoon trade, the benchmark index is down 0.3% to 7,314.1 points.

    Four ASX shares that aren’t letting that hold them back today are listed below. Here’s why they are charging higher:

    Origin Energy Ltd (ASX: ORG)

    The Origin share price is up 13% to $7.91. This follows the release of an update on the takeover approach by a consortium comprising Brookfield Asset Management and MidOcean. Although the consortium has dropped its offer by 10 cents to $8.90 per share, this has come as a big relief to investors. There had been concerns that the consortium was going to walk away from talks.

    Santos Ltd (ASX: STO)

    The Santos share price is up 3.5% to $7.05. This follows the release of the energy producer’s full-year results. Santos reported a 65% increase in revenue to US$7.8 billion and a 160% jump in underlying profit to US$2.5 billion. The latter was actually a touch short of expectations, but that hasn’t stopped investors snapping up shares today.

    Service Stream Ltd (ASX: SSM)

    The Service Stream share price is up 9% to 65 cents. Investors have been buying this essential network service provider’s shares after the release of its half-year results. Service Stream reported a 75.5% increase in revenue to $993.6 million and a 40.1% lift in underlying EBITDA to $55 million. This was driven by strong growth across all of its segments.

    WiseTech Global Ltd (ASX: WTC)

    The WiseTech share price has rebounded from a poor start and is up 4% to $58.17. This morning, this logistics solutions company reported a 35% jump in half-year revenue to $378.2 million and a 40% jump in underlying net profit after tax to $108.5 million. And while it has trimmed its full-year earnings guidance, it is still expected to be 19% to 29%.

    The post Why Origin, Santos, Service Stream, and WiseTech shares are racing higher appeared first on The Motley Fool Australia.

    FREE Beginners Investing Guide

    Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

    For over a decade, we’ve been helping everyday Aussies get started on their journey.

    And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

    Yes, Claim my FREE copy!
    *Returns as of February 1 2023

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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 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 Santos dividend just rocketed by 78%. Here’s the lowdown

    Happy man holding Australian dollar notes, representing dividends.

    Happy man holding Australian dollar notes, representing dividends.

    If you invested in Santos Ltd (ASX: STO) for its dividend payout you’ll like what the S&P/ASX 200 Index (ASX: XJO) energy stock reported today for its full 2022 financial results.

    Here’s why.

    Santos dividend boosted by 78%

    There were a number of noteworthy highlights in the Santos full-year results.

    These included a 160% year on year increase in underlying profit, which came in at US$2.5 billion.

    The big profit boost and record annual revenue of US$7.8 billion was fuelled by record production of 103.2 million barrels of oil equivalent (mmboe). That’s an increase of 12% from 2021 production levels.

    Which brings us to the big Santos dividend.

    On the back of those strong results, the board declared a final unfranked dividend of 15.1 US cents per share. That’s up a whopping 78% from the final dividend in 2021.

    While the dividend was declared in US currency, ASX investors will receive the payout in Aussie dollars.

    At the time of writing, AU$1 is equal to 68.4 US cents, meaning the Santos dividend, if paid out today, would equate to just under 22.1 Aussie cents per share.

    That may not be precisely what ASX investors receive, mind you.

    Santos will determine the US dollar exchange rate for the payout on 2 March.

    If you’d like to receive the boosted dividend, you’ll need to own shares before Monday, 27 February. That’s when the stock trades ex-dividend.

    Investors can expect to be paid on 29 March.

    And interested investors can participate in Santos’ dividend reinvestment plan (DRP).

    The post The Santos dividend just rocketed by 78%. Here’s the lowdown appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Santos Limited right now?

    Before you consider Santos Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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    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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  • Why is the Star Entertainment share price on ice today?

    A person wrapped in warm clothing with head, eyes and face covered by a hat, glasses and a scarf is coated in a layer of snow and ice. representing Strike Energy's trading halt todayA person wrapped in warm clothing with head, eyes and face covered by a hat, glasses and a scarf is coated in a layer of snow and ice. representing Strike Energy's trading halt today

    It’s been a pretty disappointing day for ASX shares and the ASX 200 Index so far this Wednesday. At the time of writing, the ASX 200 has slipped by 0.31% to under 7,315 points. But one ASX 200 share, perhaps mercifully, is sitting this session out. That would be the Star Entertainment Group Ltd (ASX: SGR) share price.

    Yesterday, this ASX 200 casino operator and gaming company closed at $1.52 a share. And that’s where it will be staying, at least for a while. This is due to Star announcing a trading halt for its shares this morning before market open.

    Yes, in an ASX release today, Star announced that its shares would be put on ice.

    Why?

    Star share price on ice as capital initiatives announced

    Well, Star Entertainment has told investors that “the Trading Halt is necessary as The Star expects to make an announcement to ASX regarding capital structure initiatives“.

    As such, the shares will remain halted until either 24 February or until “such time as The Star releases an announcement to ASX in relation to the capital structure initiatives”.

    And that’s all we know for now.

    Of course, the Star share price has had a truly awful month. Back on 13 February, the company released an earnings and guidance update which spooked investors mightily.

    Star told the markets that it is anticipating a non-cash impairment charge of between $400 million and $1.6 billion in its half-year results, depending on the impact of the proposed changes to New South Wales casino duty.

    It also declared that it is expecting to report full-year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) between $330 million and $360 million.

    Investors were not impressed, to say the least. On the day this guidance came up, the Star share price cratered by a horrendous 20.74%, and lost another 13.4% the following day too, reaching a record-low share price of $1.28 in the process:

    Until yesterday, the Star share price had recovered somewhat from these lows. But it will interesting to see what investors make of this latest announcement. Or indeed exactly what kind of “capital structure initiatives” Star has up its sleeve.

    The post Why is the Star Entertainment share price on ice today? appeared first on The Motley Fool Australia.

    FREE Investing Guide for Beginners

    Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

    For over a decade, we’ve been helping everyday Aussies get started on their journey.

    And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

    Yes, Claim my FREE copy!
    *Returns as of February 1 2023

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

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  • What took a 24% bite out of the Dominos’ dividend?

    asx pizza share price represented by hand taking slice of pizza

    asx pizza share price represented by hand taking slice of pizza

    The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has come crashing down to earth on Wednesday.

    In afternoon trade, the pizza chain operator’s shares are down 21% to $56.23.

    This follows the release of the company’s half-year results, which fell short of the market’s already low expectations.

    But the Domino’s share price isn’t the only thing in freefall today. This morning, the company revealed that it would be slashing its dividend.

    The Domino’s board has elected to cut its interim dividend by a disappointing 23.8% to 67.4 cents per share.

    Why has the Domino’s dividend being cut?

    Domino’s was forced to cut its dividend in response to a sizeable profit decline during the first half.

    For the six months ended 31 December, Domino’s reported a 1.2% increase in sales to $1.97 billion but a 21.5% decline in underlying net profit after tax to $71.7 million.

    This poor form was driven by the company’s failure to combat inflation effectively. The company’s CEO, Don Meij, explained:

    Given the challenging conditions and the effect on our franchisees we felt it was necessary to lift prices, including applying some surcharges. This was successful in protecting franchisee profitability, however given the speed of the change it was difficult to forecast the effect on customer repurchasing rates, especially where customers order less frequently such as Japan or Germany.

    It meant while we saw an initial benefit to franchisees’ unit economics, specific customer groupings, particularly in delivery, reduced their ordering frequency which resulted in December trading being significantly below our expectations.

    And while management suspects that the company may fall short of its medium term same store sales growth and store expansion targets in FY 2023, it remains positive on the future and expects to return to positive same store sales growth once it is able to balance the value equation for customers.

    All being well, this could mean that the Domino’s dividend returns to growth again in FY 2024.

    The post What took a 24% bite out of the Dominos’ dividend? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Domino’s Pizza Enterprises Limited right now?

    Before you consider Domino’s Pizza Enterprises Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Domino’s Pizza Enterprises Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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    Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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  • Why did this ASX mining share just crash 64%?

    A miner wearing a high-vis vest and orange hardhat bows his head and puts his hands on his head and screams as the Hawsons Iron share price falls today despite a new progress report on its flagship projectA miner wearing a high-vis vest and orange hardhat bows his head and puts his hands on his head and screams as the Hawsons Iron share price falls today despite a new progress report on its flagship project

    ASX mining share FYI Resources Ltd (ASX: FYI) is having a day to forget.

    The small-cap mining stock closed on Friday at 16 cents per share before entering a trading halt pending an announcement.

    On making that announcement and exiting the trading halt today, the FYI Resources share price plunged 64%. Shares are currently trading for 5.8 cents apiece.

    Here’s what’s happening.

    Why are investors selling off the ASX mining share today?

    FYI Resources is under heavy selling pressure after the company reported that Alcoa of Australia Limited (a subsidiary of Alcoa Corporation, the world’s eighth-largest producer of aluminium) has withdrawn as a project partner for FYI’s high purity alumina (HPA) development strategy.

    FYI affirmed its committed to progressing the HPA project development and said it would now resume control of its HPA production plans.

    In 2021, Alcoa of Australia executed a binding term sheet with the ASX mining share to jointly develop HPA production. Alcoa pitched in some US$5 million for the stage one development activities.

    With Alcoa now stepping aside, FYI will retain joint access to all HPA project IP, data and information, assets, and customer relationships developed during the project.

    Commenting on the development sending the ASX mining share plunging today, FYI Resources managing director Roland Hill said:

    While this is not the outcome we envisaged, the HPA project has advanced considerably, benefitting from Alcoa’s rigour and US$5 million investment. FYI recognises the value proposition of the strategy and views regaining control and management of the project as an opportunity.

    Looking ahead, Hill added, “FYI intends to adopt a project schedule with emphasis on an accelerated timelier approach to development. We have a highly experienced team that can move the project forward.”

    The company said it is “adequately funded” with just over $10 million in treasury to continue its small-scale production and demonstration development work.

    FYI Resources share price snapshot

    As you can see in the chart below, the FYI Resources share price was solidly in the green for 2023…until today.

    With the big intraday fall factored in, the ASX mining share is now down 59% year to date.

    The post Why did this ASX mining share just crash 64%? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Fyi Resources Limited right now?

    Before you consider Fyi Resources Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fyi Resources Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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    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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  • Bought $1,000 of South32 shares in 2015? Here’s how much passive income you’ve made

    Miner holding cash which represents dividends.Miner holding cash which represents dividends.

    Did you invest in South32 Ltd (ASX: S32) shares when the company split from BHP Group Ltd (ASX: BHP) to float on the ASX in 2015? If you did, you’ve nearly doubled your money.

    South32 was spun out of the iron ore giant in 2015, taking many of its alumina, aluminium, coal, manganese, nickel, silver, lead, and zinc assets with it.

    As part of the demerger, BHP investors were offered one share in South32 for every share they held in BHP.

    South32’s first day on the ASX saw its stock closing at $2.05. Nearly eight years later, the S&P/ASX 200 Index (ASX: XJO) mining share was trading for $4.58 apiece as of yesterday’s close – representing a 123% gain.

    That means $1,000 invested in May 2015 would today be worth around $2,230.46.

    But what about the dividends handed out by the now-mining giant over its listed life? Let’s take a look.

    All dividends offered to those holding South32 shares

    Here are all the dividends paid to those invested in South32 shares since it listed, rounded to the nearest tenth of a cent:

    Suncorp dividends’ pay date Type Dividend amount
    October 2022 Final and special 20.7 cents and 4.4 cents
    April 2022 Interim 11.9 cents
    October 2021 Final and special 4.8 cents and 2.7 cents
    April 2021 Interim 1.8 cents
    October 2020 Final 1.4 cents
    April 2020 Interim 3.3 cents
    October 2019 Final 4.1 cents
    April 2019 Interim 9.6 cents
    October 2018 Final 8.7 cents
    April 2018 Interim 9 cents
    October 2017 Final 8 cents
    April 2017 Interim 4.8 cents
    October 2016 Final 1.3 cents
    Total:   96.5 cents

    As readers can see, each South32 share has yielded 69.5 cents of dividends over its life. That means our figurative $1,000 parcel has likely brought in $338.465 of passive income.

    Considering both the payouts and the South32 share price’s gains, investors have seen a return on investment (ROI) of 157%.

    And that’s before considering the franking credits that have come with nearly all the ASX 200 company’s dividends. They could have brought tax benefits for some investors.

    Further, reinvesting the payouts could have seen an investor compound their returns further.

    South32 shares currently trade with a 7.1% dividend yield.

    Looking forward, the company’s next dividend will be worth 4.9 US cents and will be paid in early April.

    The post Bought $1,000 of South32 shares in 2015? Here’s how much passive income you’ve made appeared first on The Motley Fool Australia.

    Should you invest $1,000 in South32 Limited right now?

    Before you consider South32 Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and South32 Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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    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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  • Should I buy BHP’s shares after the ASX 200 miner’s latest update?

    Worker in hard hat looks puzzled with one hand on chin

    Worker in hard hat looks puzzled with one hand on chinBHP Group Ltd (ASX: BHP) shares are having a relatively flat session.

    In afternoon trade, the ASX 200 mining giant’s shares are trading 0.1% lower at $48.24.

    This means the BHP share price is now down 10% from its recent high.

    Should you buy BHP shares following its update?

    According to a note out of Morgans, its analysts were disappointed with the Big Australian’s first-half result and notes that it fell well short of expectations. It commented:

    BHP reported a softer start to FY23 than we expected, with inflationary pressures and added inventory costs contributing to lower first half earnings. 1H23 missed consensus estimates by 5% at both EBITDA and EPS.

    In light of this, the broker believes investors should keep their powder dry and wait for a better entry point.

    The note reveals that its analysts have retained their hold rating with a trimmed price target of $46.70. This implies potential downside of 3.2% from current levels. Morgans adds:

    Post the 1H23 result we maintain our HOLD rating. We continue to view BHP as offering exposure to China re-opening, with high quality earnings and a healthy dividend. Although at current levels it appears trading around fair value territory.

    It’s a similar story over at Goldman Sachs. Its analysts have retained their neutral rating with a trimmed price target of $48.00 on BHP’s shares. The broker commented:

    BHP is currently trading at ~6x NTM EBITDA vs. global peers (including RIO, GLEN & AAL) at ~5x EBITDA, and at ~1.1x NAV vs. RIO at ~0.9x NAV. Although we believe this premium vs. peers can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore), high returning copper growth, and lower iron ore replacement & decarbonisation capex, we highlight potential downside to our PT of A$48.0/sh.

    The post Should I buy BHP’s shares after the ASX 200 miner’s latest update? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you consider Bhp Group, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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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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  • Here’s why the AGL share price is dipping on Wednesday

    A wallet with a one hundred dollar bill poking out sits on top of an electricity meter with the numbers rapidly going up, representing power prices in Australia rising as we ponder whether the Origin Energy share price will go up as a resultA wallet with a one hundred dollar bill poking out sits on top of an electricity meter with the numbers rapidly going up, representing power prices in Australia rising as we ponder whether the Origin Energy share price will go up as a result

    To start with, most ASX 200 shares are having a rough time today. At present, the S&P/ASX 200 Index (ASX: XJO) is down by 0.43% at around 7,300 points. But the AGL Energy Limited (ASX: AGL) share price is seemingly having a worse day than most.

    AGL shares closed at $6.95 yesterday. But today, the ASX 200 energy generator and retailer opened at $6.93 a share and has fallen down to $6.88. That’s a drop of just over 1% – more than double the falls of the broader market.

    But it’s not as bad as it looks. AGL shares are falling today for one of the best reasons to have an ASX 200 share fall in value – the company has just traded ex-dividend.

    AGL share price falls as investors book in dividend

    Earlier this month, AGL announced its latest earnings to the market, covering the first half of FY2023. As we covered at the time, it was a fairly brutal report for shareholders to read.

    AGL reported that its underlying net profit after tax (NPAT) fell by a horrendous 55% from the previous year to $87 million for the half. And AGL revealed that it would be bringing home a statutory loss after tax of $1.1 billion.

    The company’s dividends did not get through unscathed either. This year’s interim dividend comes in at 8 cents per share, unfranked. That’s a 50% cut from last year’s 16 cents per share dividend.

    So today, AGL shares have traded ex-dividend for said shareholder payment. This means that any new investors in AGL from today are not eligible to receive this latest dividend.

    As such, the value of this payment has now left the AGL share price, which is probably why we are seeing the shares lose a big chunk of value on the share market today.

    This latest dividend from AGL brings its total payouts for the past 12 months to an unfranked 18 cents per share. That gives the AGL share price a dividend yield of 2.62% right now.

    The post Here’s why the AGL share price is dipping on Wednesday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Agl Energy Limited right now?

    Before you consider Agl Energy Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Agl Energy Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of February 1 2023

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

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