Tag: Motley Fool

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Data#3 Limited (ASX: DTL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $8.95 price target on this information technology solutions provider’s shares. This follows the release of a trading update which revealed that Data#3 expects to deliver first half profit before tax at the top end of its guidance range. Goldman notes that this is ahead of its estimate and implies year over year growth of at least 24%. Outside this, Goldman is positive on its outlook thanks to government and enterprise IT spending and its position as an expert in cloud migrations, software, and cybersecurity. The Data#3 share price is trading at $7.30 on Wednesday.

JB Hi-Fi Limited (ASX: JBH)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this retail giant’s shares to $55.00. This follows a half year trading update that was well ahead of Citi and consensus estimates. Combined with the update from Super Retail Group Ltd (ASX: SUL), the broker believes consumer health is better than the market’s thinking heading into the second half. The JB Hi-Fi share price is fetching $47.95 this afternoon.

Rio Tinto Ltd (ASX: RIO)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this mining giant’s shares to $134.40. This follows the release of the company’s latest quarterly update. Goldman was pleased with Rio Tinto’s record iron ore production in the quarter and its guidance for an 8% increase in FY 2023. The Rio Tinto share price is trading at $121.78 at the time of writing.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why Ampol, Block, JB Hi-Fi, and Telix shares are racing higher
• ASX 200 mining shares: To buy or not to buy?
• 5 things to watch on the ASX 200 on Wednesday
• Top ASX value shares to buy in 2023
• 5 ASX All Ords shares cracking new 52-week highs on Tuesday

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi. 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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Searing inflation, unrelenting interest rate rises, and an economy walking a recessionary tightrope. The landscape of 2023 is an unfamiliar one for anyone that began building a portfolio this side of the GFC.

Many have resorted to labelling this tightening environment as the ‘new normal’. But for it to be new, it needs to be the first of its kind — but is that really the case for the set of conditions investors are now facing?

The Motley Fool’s chief investment officer, Scott Phillips, suggests otherwise. In chatting with Nabtrade’s Gemma Dale on the latest Your Wealth podcast, Phillips gives his reasoning on why this might be more suitably dubbed the ‘old normal’.

So, how can we better prepare our portfolios for a return to a more conventional share market?

Inflation and interest rates matter

If you were hoping that the New Year marked the end of inflation’s influence on ASX shares, you might be disappointed.

In answering Gemma Dale’s question on whether the hidden tax — alongside interest rates — will make an impact on investments this year, Phillips responded:

[Interest] rates matter to the price of the assets that I buy […], rates matter to the amount of debt a company can affordably carry, and what it can do with that debt; and what my investment thesis looks like with those rates.

Inflation matters because pricing power matters. If you are a business that can’t pass on higher costs, you have no choice but to deliver lower margins, [and] lower profits.

While this might seem like uncharted territory for some, Phillips says this is more akin to the ‘normal economic circumstance’ of the 1980s and early 1990s. A period of time where some level of ongoing inflation was expected and interest rates moved up and down — not just down.

So, what does that mean for investing in ASX shares and portfolio construction?

Build a resilient portfolio

Importantly, the answer isn’t to try and predict winners based on a specific economic situation a year from now. Instead, Phillips opined that a more reasonable approach to this ‘old normal’ is by taking a holistic view of the companies you’re investing in.

Think about the sort of companies you own or might want to invest in. Think about their resilience in the face of a range of economic circumstances. If you look at your company and say, if this happens, it’ll be great… but if that happens, it’ll be terrible. […] I don’t think that’s the smartest way to go about it because I don’t think you want to be in a situation where you you have only one way to win and a very clear way, unfortunately, also to lose.

Essentially, the best companies to invest in are those that can continue to grow through most — if not all — environments that they are faced with. Whereas, companies that are dependent on ultra-low interest rates for their survival are, by nature, less resilient.

Finally, the Motley Fool CIO highlighted some ASX shares that could be well-placed to grow through this ‘old normal’ during the podcast. Companies such as Domino’s Pizza Enterprises Ltd (ASX: DMP), Lovisa Holdings Ltd (ASX: LOV), Resmed CDI (ASX: RMD), and Cochlear Limited (ASX: COH).

On the flip side, Phillips cautioned listeners on price takers, saying “I’d be really careful of businesses that don’t bring pricing power to the table.”

The post How to prepare your portfolio for the ‘old normal’: Scott Phillips appeared first on The Motley Fool Australia.

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More reading

• Why HUB24, Lovisa, Redbubble, and Warrego shares are sinking today
• Goldman Sachs says these ASX 200 blue chip shares are buys
• Buy QBE and this ASX 200 blue chip share: broker
• Are ASX 200 retail shares on sale in 2023?
• Waiting for ASX shares to bottom? Why you could miss out on a stock market rally

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 positions in and has recommended Cochlear, Domino’s Pizza Enterprises, Lovisa, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear, Domino’s Pizza Enterprises, and Lovisa. 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 National Australia Bank Ltd (ASX: NAB) share price is in the green today and up almost 5% over the past month. NAB shares are currently trading at $31.74, up 0.22% for the day so far.

As we head into the February/March earnings season, the big four ASX bank share is due to release its first-quarter FY23 trading update on 16 February.

Meantime, we await the Reserve Bank’s first interest rate decision of 2023 on Tuesday 7 February.

Most commentators predict another 25-basis point increase. Generally speaking, rate rises can be good for bank shares because it means the banks can charge their home loan borrowers more interest.

The downside of rate rises is fewer new home loans are taken out as more buyers fail serviceability requirements, and it can raise the number of bad debts too.

The case for buying NAB shares

As my Fool colleague James reports, Goldman Sachs is a fan of NAB shares. The broker rates them a buy with a 12-month price target of $35.41.

In addition, Goldman is expecting NAB shares to deliver a $1.73 per share dividend in FY23.

Last week, the broker gave three reasons to buy NAB shares, starting with its large commercial lending exposure.

Goldman said:

Our Buy rating on NAB is predicated on: i) NAB providing the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term, ii) our expectation that commercial lending will be better insulated from competitive pressures particularly prevalent in mortgage lending.

The broker also said the bank has made superior strides in its cost management initiatives compared to its peers. Goldman said this has “allowed the highest levels of productivity over the last three years”.

About $400 million in productivity savings is expected in FY23.

Another big four bank is better, says this broker

According to The Australian, Morgan Stanley reckons Westpac Banking Corp (ASX: WBC) shares are a better choice than NAB shares.

The broker thinks that banks’ profitability and valuations are “harder to predict” in today’s inflationary economy.

In a recent note, Morgan Stanley said:

For now, margin expansion and resilient credit quality underpin the earnings outlook. However, the size and speed of the tightening cycle creates the prospect that weaker volume growth, declining margins, higher costs and rising loan losses weigh on the banks’ share price performance in the second half.

In terms of NAB shares specifically, Morgan Stanley has an equal-weight rating and a $30 price target.

The broker likes NAB’s growing track record of execution, its operating performance, and margin improvements.

In its full-year results released in November, NAB reported an 8.3% bump in its statutory net profit. It also reported an improving net interest margin (NIM) with a final quarter exit margin of 1.72%.

Several other banks also recorded raised exit NIMs as a result of rising interest rates.

Morgan Stanley has given Westpac shares an overweight rating and a price target of $24.

The broker likes Westpac’s “upside to consensus margin estimates from higher rates, a differentiated cost outlook and good progress on the cost reset plan”.

It also notes “signs of improving franchise performance, a relatively low risk profile, low investor expectations and supportive trading multiples”.

The post Are NAB shares a good investment ahead of earnings season? appeared first on The Motley Fool Australia.

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More reading

• Earn passive income with these ASX 200 dividend shares – experts
• Morgans names 2 of the best ASX 100 shares to buy now
• Up 20% in 6 months, is the Westpac share price now fully valued?
• 3 ASX 200 shares I own for big dividends in 2023
• How I’d invest my very first $500 in ASX shares in 2023

Motley Fool contributor Bronwyn Allen has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs 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 All Ordinaries Index (ASX: XAO) is back in the green on Wednesday, driven higher by four shares leaping to new 52-week highs.

Right now, the All Ordinaries Index is up 0.12%, trading at 7,606.9 points.

Let’s take a closer look at four shares trading at their highest point in more than a year today.

4 ASX All Ordinaries shares soaring to 52-week highs

The Stanmore Resources Ltd (ASX: SMR) share price is on the up and up today, gaining 5% at its intraday peak to hit an all-time record high of $3.55.

The coal miner has been on a major roll over the last 12 months, gaining more than 230% in that time.

Joining the coal miner in the green is All Ordinaries biopharmaceutical share Clinuvel Pharmaceuticals Limited (ASX: CUV). It soared 3% earlier today to reach $26.65 – the highest it’s been since this time last year.

The last 12 months have been a rollercoaster for the healthcare stock. Six months before it soared to today’s high, the stock hit a low of $13.16.

Clinuvel isn’t the only All Ordinaries biopharma share posting 52-week highs today.

The share price of Neuren Pharmaceuticals Ltd (ASX: NEU) also surged to a multi-year high of $9.08 earlier today. That marked a 1.6% gain on its previous close.

The last time the stock traded at such levels was in 2007 – before the Global Financial Crisis took hold of markets around the world.

The final ASX All Ordinaries share soaring to long-forgotten highs is Aroa Biosurgery Ltd (ASX: ARX). It surged to $1.20 in afternoon trade – a 1.7% gain on its previous closing price.

The company listed on the ASX following its $45 million initial public offering (IPO) in mid-2020. Investors who got on board in its IPO did so for just 75 cents per share.

The post 4 ASX All Ordinaries shares hitting new 52-week highs today appeared first on The Motley Fool Australia.

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More reading

• 2 little-known ASX 300 shares with big potential: expert
• 5 ASX All Ords shares cracking new 52-week highs on Tuesday
• 2 ASX All Ords shares cracking new 52-week highs on Tuesday
• These were the 5 top-performing ASX All Ords shares of 2022
• 3 ASX All Ordinaries shares defying today’s downturn to rocket higher

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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The Core Lithium Ltd (ASX: CXO) share price is heading in the right direction at last on Wednesday.

In afternoon trade, the lithium developer’s shares are up 5% to $1.07.

Though, as you can see on the chart below, the Core Lithium share price is still trading 43% lower than its November peak of $1.88.

Why is the Core Lithium share price rebounding?

Investors have been snapping up shares today despite there being no news out of the company.

Though, it is worth noting that a number of developers are rising this afternoon. This includes Argosy Minerals Limited (ASX: AGY), Lake Resources N.L. (ASX: LKE), and Sayona Mining Ltd (ASX: SYA).

This may potentially have been driven by the release of a quarterly update out of Allkem Ltd (ASX: AKE), which revealed that it has continued to command strong prices for its lithium.

Allkem reported an average of US$46,706 per tonne for its lithium carbonate during the second quarter, which was up 16% from the first quarter. In addition, the lithium giant’s spodumene concentrate came in 5% higher quarter on quarter at US$5,284 per tonne.

In addition, Allkem revealed that third party lithium carbonate sales commanded a price of US$53,013 per tonne and it expects similar pricing for the current quarter. This is the price the company is getting for uncontracted lithium.

Investors may be optimistic that Core Lithium will be commanding similarly strong prices for its lithium by the time its Finniss Lithium Project in the North Territory is up and running.

The company is aiming to commence spodumene concentrate production at Finniss in the first half of 2023.

The post Why is the Core Lithium share price rebounding 5% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 mining shares: To buy or not to buy?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 3 catalysts for Core Lithium shares to rip higher in 2023
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why are ASX 200 lithium shares struggling on Monday?

Motley Fool contributor James Mickleboro has positions in Allkem. 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 Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX, going off of total funds under management. This ETF from Vanguard has more than $10 billion of ASX investor dollars in its custody. So it must be doing something right.

So let’s look at five reasons why I’d consider adding to my existing position in this popular ASX ETF.

Five reasons I’d buy the Vanguard Australian Shares ETF today

Simplicity

The Vanguard Australian Shares ETF is a single investment on the ASX, with a single ticker code. When you’re investing in this ETF, you’re really investing in the 300 companies that it holds in its underlying portfolio.

Yes, this fund is an index fund, mirroring every holding in the S&P/ASX 300 Index (ASX: XKO). As such, if you want a broad slice of the Australian share market, investing in the Vanguard Australian Shares ETF is one of the easiest ways to accomplish it.

Diversity

We’ve probably all heard the phrase ‘don’t put your eggs in one basket’. This is commonly used in investing to tout the benefits of diversification. Most investors will tell you that spreading your cash over different types of companies is a great way to reduce risk in your portfolio.

A typical investor might do this by holding bank shares, mining shares, grocers, telcos, and healthcare companies.

But with the Vanguard Australian Shares ETF, this diversification is built in. This ETF covers every corner of the ASX share market, with exposure to all of the above industries, and more.

Sure, you are getting a lot of banks and miners compared to everything else. But it is still a reasonably well-diversified investment.

Dividend income

ASX shares are well-known for paying dividend income. Receiving income from your investments is a beautiful thing. It enables us to have a source of cash flow we can easily reinvest back into more shares, or else use to pay our bills if in retirement.

Luckily, because the Vanguard Australian Shares ETF holds so many dividend payers in its portfolio, it can pass on this dividend income to its own investors.

It also doles out a dividend distribution every three months too. On current pricing, this ETF’s distributions over the past 12 months give it a trailing yield of almost 7%.

The Vanguard Australian Shares ETF is cheap

One of the biggest pitfalls of investing in funds like the Vanguard Australian Shares ETF is the fees the providers charge. Fees can eat into your returns over time. So it’s important to make sure you are getting bang for your bucks.

In this ETF’s case though, the fees are highly competitive. Vanguard charges investors 0.1% per annum for investing in this ETF, which is on the low side of the ASX ETF sector. That works out to be $10 per year for every $10,000 invested.

Returns

Last, but certainly not least, we have returns. There’s little point in investing in ASX shares if you’d get a better return by leaving your money in the bank. Fortunately, in this ETF’s case, it has certainly delivered better returns than cash has over a long time horizon.

As of 31 December 2022, investors have enjoyed an average return of 7.09% per annum over the past five years. Over the past 10, this stretches to 8.54% per annum. That’s a pretty decent return for a single, simple, diversified, relatively cheap, income-producing investment.

The post 5 reasons I’d consider buying the Vanguard Australian Shares Index ETF (VAS) appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $5,000 in high-yield ASX shares to earn a second income
• 3 ASX 200 shares I own for big dividends in 2023
• Invested $1,000 in the Vanguard Australian Shares ETF (VAS) 5 years ago? Here’s how much dividend income you’ve received
• Here’s why 2023 will be a huge year for passive income
• Generations of Aussie investors own this ASX ETF. Do you?

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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 S&P/ASX 200 Index (ASX: XJO) has shaken off yesterday’s sluggish performance with another day of tentative gains so far this Wednesday. At the time of writing, the ASX 200 has added another 0.1%, putting the index up to just under 7,400 points. But it’s been even better for some ASX 200 shares.

So let’s discuss three such shares that have just cleared new 52-week highs

3 ASX 200 shares hitting new 52-week highs on Wednesday

Worley Ltd (ASX: WOR)

ASX 200 resources engineering company Worley is first up. Worley shares are on fire today, with the company recording a solid 1.55% gain so far today to $15.71 a share at the time of writing. But earlier this morning, Worley rose as high as $15.75, which is the stock’s new 52-week high.

Worley has been at these kinds of levels before, but this is the highest the stock has climbed since the company touched over $16 back in early 2020. Despite no ASX announcements out in 2023 so far, Worley shares have risen by more than 6% since the start of the year.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share making new highs today is wine producer Treasury Wine Estates. Treasury shares are up a decent 0.56% so far this session to $14.36 each.

But Treasury rose as high as $14.38 around midday today, which is the company’s new 52-week high. This is also a new post-COVID high for the company, which hasn’t gotten above the $15 mark since January 2020.

The Treasury share price might be benefitting from the reopening of China, a key market for the company. Treasury shares are also up big in 2023 so far, having risen nearly 10% since New Year’s Day.

Qantas Airways Limited (ASX: QAN)

Finally today, we have ASX 200 travel share and national icon, Qantas. Like Treasury, investors seem to be seeing Qantas in a new light following the announcement that China is opening back up.

Since hitting a 52-week low of $4.21 back in August last year, Qantas shares have taken to the skies. The company is now up close to 60% from that August low, including the 2.2% it has added today.

Qantas shares are currently going for $6.69 each, which is the airline’s new 52-week (and post-COVID) high. The Qantas share price is now up a pleasing 12.5% in 2023 year to date.

The post 3 ASX 200 shares smashing new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Why is this ASX 200 mining share halted today?
• Cheap ASX shares: A rare chance to get rich?
• Should ASX 200 investors buy Qantas shares today?
• Can ASX 200 coal shares really deliver dividend yields of over 10% in FY24?
• 5 things to watch on the ASX 200 on Wednesday

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 Treasury Wine Estates. 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 record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,396.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Ampol Ltd (ASX: ALD)

The Ampol share price is up 4% to $29.74. Investors have been buying this fuel retailer’s shares following the release of a fourth quarter trading update. Ampol revealed that its fourth quarter group RCOP earnings before interest and tax is expected to be slightly ahead of the third quarter result.

Block Inc (ASX: SQ2)

The Block share price is up 3.5% to $106.41. This follows a strong session for the payments company’s US listed shares on the NYSE overnight. This may have been driven by a broker note out of Barclays, which named Block as one of its best ideas for 2023.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 3% to $48.01. This may have been driven by the release of a broker note out of Morgans. According to the note, the broker has retained its add rating with an improved $53.00 price target. Morgans said: “Although trading conditions will be more difficult in 2H23, we believe JBH is well placed to ride out the turbulence and deliver shareholder value over the medium-term.”

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 7% to $6.96. Investors have been buying this radiopharmaceuticals company’s shares following the release of its quarterly update. Telix reported a 41% increase in quarterly revenue to $78.2 million, which led to the company generating positive free cash flow from operating activities.

The post Why Ampol, Block, JB Hi-Fi, and Telix shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares making big moves following quarterly updates
• Guess which ASX 200 biotech share saw revenue jump 41% last quarter
• 5 things to watch on the ASX 200 on Wednesday
• Top ASX value shares to buy in 2023
• Here’s why the JB Hi-Fi share price is smashing the ASX 200 today

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Jb Hi-Fi. 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 share price of S&P/ASX 200 Index (ASX: XJO) miner Nickel Industries Ltd (ASX: NIC) isn’t going anywhere today.

The nickel pig iron turned nickel matte producer has kicked off a $673 million capital raise to help fund two major acquisitions.

Additionally, the stock may have caught the market’s attention with the miner’s quarterly report. It was also released today, along with details of the unfortunate deaths of two construction contractors working at the company’s Oracle Nickel Project in Indonesia.

The Nickel Industries share price has been halted at its previous close of $1.12. And that’s where it’s expected to stay until the market opens tomorrow morning.

Let’s take a closer look at the avalanche of news from the ASX 200 mining share today.

ASX 200 nickel share halted amid EV battery agreement

The Nickel Industries share price is halted amid news the company has executed an electric vehicle battery supply chain strategic framework agreement with its major shareholder, Shanghai Decent.

It has also made agreements with the investment company to buy a 10% interest in two nickel-producing assets.

The first will be an indirect stake in PT Huayue Nickel Cobalt (HNC), to be purchased from Shanghai Decent’s affiliate Newstride for $386 million. HNC is a high-pressure acid leach project in the Indonesia Morowali Industrial Park.

Nickel Industries also plans to buy another 10% stake in Oracle, bringing its interest to 80%. It will pay $107 million to Shanghai Decent for the extra hold.

As part of the strategic agreement, Nickel Industries has also forked out $57 million for options to collaborate with the investment company.

That could see the ASX 200 nickel miner participating in the development of a nickel sulphate and electrolytic nickel plant using the HPAL process, dubbed the DAWN HPAL+ Project.

It would also give it the option to invest in and construct a low-grade to high-grade nickel matte converter at Oracle for US$40 million.

$673 million capital raise kicks off

To fund the acquisitions, the ASX 200 nickel miner is currently undergoing a $264 million institutional placement.

New shares are being offered for $1.02 apiece under the raise – an 8.9% discount to the stock’s previous close.

Another conditional placement would see Newstride snap up around $386 million worth of shares at the same price. Meanwhile, approximately $21 million would be bought by Shanghai Wanlu Investment Co and around $2 million will go to non-executive director Mark Lochtenberg.

The latter placement is subject to shareholder approval and, in the case of Newstride, the Foreign Investment Review Board’s approval.

Finally, a share purchase plan is expected to raise up to $29 million.

Quarterly report

But preceding the major news from the ASX 200 nickel miner today was its quarterly report.

Nickel Industries achieved record nickel metal production in the December quarter, coming in at 23,072 tonnes – a 13.8% quarter-on-quarter jump.

It also produced its maiden nickel matte, which is suitable for use in batteries.

It posted earnings before interest, tax, depreciation, and amortisation (EBITDA) of US$106.1 million from operations last quarter.

Its EBITDA margins also improved from US$2,261 a tonne in the September quarter to US$4,146 a tonne in the December quarter on the back of improved contract pricing and lower cash operating costs.

However, the company also announced the deaths of two construction workers at Oracle. An investigation into the deaths is ongoing, as well as a review into how the site’s safety measures can be improved.

The post Why is this ASX 200 mining share halted today? appeared first on The Motley Fool Australia.

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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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The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up slightly to 7,388 points.

Four ASX shares that have not been able to follow the market higher today are listed below. Here’s why they are sinking:

HUB24 Ltd (ASX: HUB)

The HUB24 share price is down 6.5% to $24.95. In response to this investment platform provider’s “weaker than expected” quarterly update on Tuesday, analysts at Citi have retained their neutral rating but cut their price target to $29.00. HUB24’s funds under administration was 2% lower than Citi’s estimates.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 2% to $25.29. This morning, analysts at Morgan Stanley downgraded the retailer’s shares to an equal-weight rating with a $25.00 price target. The broker has concerns that demand could be easing.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 12% to 50 cents. This ecommerce company’s shares have been sold off following the release of another disappointing update. Redbubble revealed that trading conditions have been “increasingly challenging” during the first half. This has led to the company reporting an $18 million operating loss for the half, down from an operating profit of $10.5 million a year earlier.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is down 2.5% to 37 cents. This is despite there being no material news out of the company today. However, investors appear to have been betting on a bidding war inflating the takeover price for the energy explorer. They may now be concerned that the war is over and the takeover offer price won’t rise beyond current levels.

The post Why HUB24, Lovisa, Redbubble, and Warrego shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares making big moves following quarterly updates
• Are ASX 200 retail shares on sale in 2023?
• Waiting for ASX shares to bottom? Why you could miss out on a stock market rally
• Still shopping, share price not dropping: Lovisa shines among 3 best ASX 200 retail shares of 2022
• Falling inflation! Could the party be back on for ASX 200 retail shares?

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 Hub24, Lovisa, and Redbubble. The Motley Fool Australia has positions in and has recommended Hub24. The Motley Fool Australia has recommended Lovisa. 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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