Tag: Motley Fool

If you’re busy constructing a retirement portfolio, then you may be on the lookout for some high quality ASX dividend shares to buy. One unstoppable ASX dividend share that I believe could act as the foundation to build a portfolio around is Domino’s Pizza Enterprises Ltd (ASX: DMP).

Domino’s Pizza Enterprises is the largest Domino’s franchisee outside of the United States. It holds the master franchise rights to the Domino’s brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark and Taiwan. At the end of FY 2022, the company had a network of approximately 3,400 stores.

Why could it be a dividend share to buy?

Prior to FY 2022, Domino’s had increased its dividend each year for over a decade. And were it not for the pandemic and the war in Ukraine, this stellar run would likely be continuing today. However, unfortunately, inflationary pressures have hit the company hard and weighed on its performance and margins over the last 12 months.

The good news is that the headwinds the company is facing won’t be around for long. Furthermore, management recently revealed it believes the company’s sales performance will be back in line with medium-term targets by the end of the current financial year.

In light of this, I think now would be a good time for investors to consider adding this dividend share to their retirement portfolio. Especially with the Domino’s share price falling so heavily this year, as you can see below.

This decline means that the short-term dividend yields on offer with Domino’s shares are now quite reasonable. For example, Morgans is forecasting partially franked dividends per share of $1.55 in FY 2023 and $1.89 in FY 2024. Based on the current Domino’s share price, this equates to yields of 2.4% and 2.9%, respectively.

But I wouldn’t be buying Domino’s shares for its short-term yields. I would be buying and holding this ASX dividend share for the potential long-term yields.

Long term outlook

Domino’s has grown its store network materially over the last decade and is aiming to do it all over again. Over the next 10 years, it aims to more than double the size of its network, before acquisitions, to 7,250 stores.

Ceteris paribus, more than doubling your store network would more than double your existing sales. But Domino’s isn’t settling for that. It has set itself an annual same-store sales growth target of 3% to 6%.

And if it can deliver margin improvements over the next decade, I believe it is conceivable that, combined with new store openings and solid same-store sales growth, Domino’s could triple its earnings and dividend over the next decade.

Based on FY 2022’s dividend of $1.56 per share, that would mean a dividend of $4.68 per share. Which equates to a dividend yield of approximately 7.3% based on current levels.

Together with the potential share price gains over the period, I think this makes Domino’s an ASX dividend share to buy for the long term.

The post Building a retirement income portfolio? I’d buy this unstoppable ASX dividend share appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The cheap ASX shares to buy for dividends: broker
• ASX 200 correction: A once-in-a-lifetime chance for supercharged passive income!
• 10 ASX shares to buy in 2023
• Why Domino’s, New Hope, PolyNovo, and Telstra shares are pushing higher today
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. 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 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.

from The Motley Fool Australia https://ift.tt/BzfQRWO

The Nick Scali Limited (ASX: NCK) share price has been through a big fall in 2022. I believe that the 30% drop for the company makes it a leading ASX dividend share contender for 2023 and beyond.

One of the most useful things about a share price drop is that not only does it make the valuation cheaper, but it also means the dividend yield is boosted.

For example, if a business with an 8% dividend yield sees a 10% fall in the share price, then the yield becomes 8.8% for prospective investors.

This is one of the main reasons why I think the Nick Scali share price could represent a strong dividend opportunity for 2023 and beyond.

Big dividends expected

Only the Nick Scali board can decide what the dividend payments in 2023 are going to be. But, analysts can have a guess.

The business has increased its dividend every year since 2013. I’m not expecting dividend growth to continue forever, and possibly not in FY23, but I think the last decade has shown the company’s dividend credentials in various economic climates, as well as a commitment to paying attractive dividends.

On Commsec, the forecast is that Nick Scali will pay an annual dividend per share of around 83 cents in FY23. This would translate into a grossed-up dividend yield of 10.8%.

It’s worth noting that the dividend estimate for FY24 is around 70 cents, so a reduction could happen in the future. But, this would still result in a grossed-up dividend yield of 9.1%.

Pleasing ongoing financial numbers

One of the main reasons why the Nick Scali dividend could grow again in FY23 is because the ASX dividend share is still seeing strong financial numbers.

In the four months to the end of October, sales revenue was $194 million, reflecting “a continuation of the record deliveries achieved in the fourth quarter”. October year to date sales revenue was 74% above the same period in the prior year, which was before the Plush acquisition in November 2021.

Group written sales orders for the four months were $148 million, 55% above the prior year. Nick Scali written orders were 21.7% above the first four months of the prior year.

Based on delivery levels at the time, it is expecting net profit after tax (NPAT) for the first half of FY23 to be in the range of $56 million to $59 million, up between 57% to 66%.

In other words, despite all the commentary about an economic slowdown, Nick Scali is still seeing growth. The second half of FY23 may be different, but an annual result is made up of 12 months, not just the second half.

Long-term growth initiatives

While there may be uncertainty in the shorter term, I like the long-term plans of the business to help grow overall profitability.

The ASX dividend share had a total of 108 stores between Nick Scali and Plush at the end of FY22. That breaks down to 57 Nick Scali stores in Australia and five in New Zealand, as well as 46 Plush stores in Australia.

The long-term plan is to have 73 Nick Scali stores in Australia and 13 in New Zealand, for a total of 86. Plush could have between 85 to 90 stores in Australia, and 5 to 10 stores in New Zealand. This could mean a total of 186 stores combined, a rise of 72%. It’s expecting to open at least six stores in FY23.

The ASX dividend share is slowly buying properties around the country. For example, it spent $9 million on a multi-purpose site in Townsville. It’s going to relocate an existing Nick Scali showroom and develop a new distribution centre facility to support growth of both brands in regional Queensland.

Online continues to be a promising division. A full e-commerce offering was launched in Australia in May 2022, driving online written sales orders in June and July. In FY22, the company said that Nick Scali online written sales orders were $29.3 million, with an incremental earnings before interest and tax (EBIT) contribution from online transactions totalling $15.6 million.

More online sales could come with good profit margins.

I think that the above plans can help the ASX dividend share’s long-term profit growth and dividends.

The post My top wildly undervalued ASX dividend king to buy in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Atlas Arteria, Cleanaway, Nick Scali, and Tyro shares are pushing higher
• Why I think Warren Buffett would love this ASX dividend share
• Why Nanosonics, Nick Scali, NRW, and Tyro shares are charging higher
• Why Kogan, Nick Scali, PointsBet, and Sayona Mining shares are pushing higher
• Why is this ASX 300 retail share soaring 13% today?

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 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.

from The Motley Fool Australia https://ift.tt/JcjpFZP

If you’re looking to boost your passive income, then you may want to look at the shares listed below.

These ASX 200 shares pay shareholders dividends every three and six months, respectively, and have been tipped to grow their payouts in the coming years. Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX 200 dividend share to consider is HomeCo Daily Needs.

It is a property investment company with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Goldman Sachs is a big fan of the company and is tipping some big dividends in the coming years. It expects this to be underpinned by the shift to omni channel retailing and additional external growth opportunities.

The broker is forecasting dividends of 8.3 cents per share in FY 2023 and 8.5 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.31, this will mean yields of 6.3% and 6.5%, respectively. That could be a nice boost to your passive income!

Another positive is that Goldman sees decent upside for HomeCo Daily Needs’ shares. It currently has a buy rating and $1.57 price target on them.

Macquarie Group Ltd (ASX: MQG)

Another ASX 200 dividend share that could boost your passive income is investment bank Macquarie.

Analysts at Morgans are positive on the company. This is due largely to the quality of Macquarie’s operations and its exposure to long-term structural growth areas such as infrastructure and renewables.

Morgans has also highlighted that Macquarie has an opportunity to “gain market share in Australian mortgages” and profit from “recent market volatility through its trading businesses.”

The broker is forecasting partially franked dividends of $7.07 per share in FY 2023 and $7.47 per share in FY 2024. Based on the current Macquarie share price of $171.04, this will mean yields of 4.1% and 4.35%, respectively.

Morgans has an add rating and $215.00 price target on the company’s shares.

The post Buy these ASX 200 dividend shares for a passive income: brokers appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 40% sale! 2 cheap ASX shares to buy for a better 2023: fundie
• To retire early, I’d invest $100 each week in ASX 200 shares
• Here are 2 of the best ASX dividend shares to buy: Morgans
• Positive view on Macquarie shares ‘would seem obvious’: fundie
• ‘Back a winner’: Expert names his 3 best ASX shares for 2023

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

from The Motley Fool Australia https://ift.tt/n53QU2l

It’s shaping up to be another brutal day for the All Ordinaries Index (ASX: XAO) this Thursday. At the time of writing, the All Ords has lost another 0.78%, putting the index down to just over 7,365 points.

ASX investors might be wondering when the ‘Santa rally’ will kick in, now that the All Ords has lost more than 2.4% since the start of December.

But it’s not all bad news on the ASX today. So here are three big winners that the markets are throwing up.

3 All Ords shares bucking the market downturn

Chalice Mining Ltd (ASX: CHN)

All Ordinaries mining exploration company Chalice is one ASX All Ords share that is having a cracking time of it this Thursday. Far from being dragged down by the broader market, Chalice shares have gained a whopping 14.36% at the time of writing, putting this company at $6.37 a share, as you can see below:

This seems to be in response to a promising update the company gave to investors this morning. As we covered at the time, Chalice has revealed that drilling at its Hooley Prospect site has intersected “a significant PGE-nickel-copper-cobalt-gold mineralisation”. It seems investors are very excited at this news.

Magnis Energy Technologies Ltd (ASX: MNS)

Next up, we have All Ordinaries battery technology company Magnis. Its shares are also defying the selloff today, with the Magnis share price up a pleasing 6.94% at present to 38 cents per share, as you can see below:

With Magnis shares, it’s unclear what’s going on today. There has been no fresh news or announcements from the company since 2 December.

Earlier this month, Magnis did announce that it is seeking funding to expand its iM3NY lithium-ion battery facility in New York, with a confirmation that it has commissioned bank HSBC to assist in this regard. Perhaps excitement from this development is helping to boost investor sentiment today.

Bellevue Gold Ltd (ASX: BGL)

Finally today, we have ASX All Ords gold share Bellevue. The Bellevue share price has taken off today and is currently up a healthy 7.51%, putting the company at $1.14 a share:

This is an interesting one. Bellevue Gold shares were in a trading halt for most of the week, only coming off yesterday. This was to facilitate a $60 million institutional placement of shares, which has now been conducted successfully. 

Upon the resumption of trade yesterday, Bellevue Gold shares plummeted more than 11.5%, so perhaps today’s rise means that investors took things too far with this selloff.

The post It’s not all bad news on the ASX All Ordinaries today. Here are 3 big winners appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX gold shares rocketing higher on Thursday
• Chalice Mining share price surges 11% on new copper and nickel find
• Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping
• Why is the Bellevue Gold share price on ice today?
• Here are the top 10 ASX 200 shares today

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.

from The Motley Fool Australia https://ift.tt/y2czVZQ

The Pilbara Minerals Ltd (ASX: PLS) share price is out of form on Thursday.

In afternoon trade, the lithium miner’s shares are down almost 5% to $4.49.

Why is the Pilbara Minerals share price sinking?

Pilbara Minerals shares could be falling today because of a broker note out of Goldman Sachs this morning.

That note has warned investors that lithium prices could be heading materially lower from the second half of calendar year 2023.

Here’s a summary of what Goldman Sachs’ team is expecting from spodumene (6% grade) prices:

• 2022 US$4,233
• 2023 US$4,330
• 2024 US$800
• 2025 US$800

This is expected to be driven by a significant increase in production globally. In fact, the broker estimates that by 2025, global lithium demand will grow to ~1,300kt LCE but lithium production will increase to ~1,700kt LCE.

Are its shares good value now?

Unfortunately, Goldman Sachs doesn’t see enough value in the Pilbara Minerals share price to recommend it as a buy.

According to the note, the broker has initiated coverage on its shares with a neutral rating and $4.50 price target. This is broadly in line with where Pilbara Minerals shares have fallen to this afternoon.

It commented:

We are Neutral-rated on PLS as we see incremental capex spend and near time prices which are supportive of strong FCF yield more than priced into the stock and it is trading broadly in line with peers.

While near-term prices support a strong c. 10-15% FCF yield over and above planned incremental capex spend, we see this as priced in trading at 1.3x NAV on GSe LT US$1,000/t spodumene (peer average 1.3x) implying current pricing persists for ~2 years.

The post Why is the Pilbara Minerals share price having such a shocker on Thursday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s the lithium price forecast through to 2025
• ‘Lithium investment is really just beginning’: KPMG
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares 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 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.

from The Motley Fool Australia https://ift.tt/jKtDXEi

The Woodside Energy Group Ltd (ASX: WDS) share price is down 3.2% in early afternoon trade.

The S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $36.00 per share and is currently trading for $34.84 per share.

With oil prices down again overnight, energy stocks are broadly underperforming today. At the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.3% compared to a 0.7% loss posted by the benchmark index.

Factoring in today’s intraday losses, the Woodside share price is down 6.5% since the closing bell sounded on 30 November.

So, what can ASX 200 investors expect next?

What’s ahead for the ASX 200 oil and gas company?

Looking ahead to the rest of December, the biggest impact on the Woodside share price is going to be the price of crude oil and natural gas. That’s with the company’s rather underwhelming third-quarter production guidance delivered last month now already factored into current valuations.

As for crude oil prices, Brent crude has dipped from US$79.35 per barrel yesterday to US$77.44 per barrel today. The 2.4% drop sees Brent crude trading for another new low for 2022.

It was only back in March that Brent was fetching right around US$128 per barrel.

While our crystal ball is no clearer than yours, crude prices over the remainder of December are likely to continue battling recent headwinds.

Those include investor concerns over a slowing global economy, alongside the G7 nations imposing a price cap on Russian oil exports.

Supplies also appear to be building in the world’s top economy, likely due to lower demand. Yesterday the US Energy Information Administration (EIA) reported an increase in distillate and gasoline inventories.

And according to Rebecca Babin, a senior energy trader at CIBC Private Wealth Management, energy investors are taking a cautious approach.

“There is literally no risk appetite to buy the dip in crude right now. This is just snowballing into outsize moves,” Babin said (quoted by Bloomberg).

Barring any unexpected events, it’s unlikely crude oil will see a strong rally in December. That will likely see the Woodside share price struggle to post the strong gains the company enjoyed for much of 2022.

Though one tailwind worth noting is China’s moves to reopen from its COVID zero policies. That may not lead to an immediate boost in energy demand, but heading into 2023, the removal of citywide lockdowns should see Chinese consumers and businesses burning a lot more oil and gas.

Woodside share price snapshot

As you can see in the chart below, the Woodside share price is up an impressive 54% in 2022. To put that in some context, the ASX 200 is down 5% year to date.

The post The Woodside share price is down 6% in December. What’s next? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Woodside share price slides as oil sinks to 2022 low
• 5 things to watch on the ASX 200 on Wednesday
• If I bought $10,000 Woodside shares at the start of the year, how much would they be worth now?
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• Leading brokers name 3 ASX shares to buy today

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.

from The Motley Fool Australia https://ift.tt/yXrAiz5

The broader ASX is struggling today but gold shares are outperforming. Right now, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has lifted 2.2%.

Meanwhile, the All Ordinaries Index (ASX: XAO) is down 0.72%. Looking to the bigger end of town, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.73%.

The sector’s gain follows a decent night for gold prices. Gold futures price rose 0.9% to US$1,798 an ounce overnight while spot gold ended the United States’ session at around US$1,787 an ounce.

But which ASX gold shares are leading the charge on Thursday? Let’s take a look at three posting gains of as much as 11%.

These 3 ASX gold shares are glittering today

First off the bat are shares in$29 million explorer Odyssey Gold Ltd (ASX: ODY). Its share price is soaring 11.36% to trade at 4.9 cents right now.

Its gains come amid news drilling at the company’s Tuckanarra joint venture project’s Highway Zone has produced more pleasing results.

Assay results from six holes of the 21-hole drilling program have returned significant findings. Odyssey managing director Matt Briggs commented:

These results build upon the outstanding shallow results … received over the last few months.

Bellevue Gold Ltd (ASX: BGL) shares are also rocketing on Thursday, gaining 7.5% to trade at $1.145 at the time of writing.

The stock plummeted 12% yesterday after breaking a two-session trading halt with news of a successful $60 million placement.

The market appears to be taking advantage of Wednesday’s tumble today.

Finally, shares in ASX 200 gold favourite St Barbara Ltd (ASX: SBM) are leaping higher despite the company’s silence. Right now, the stock is up 4.35% at 64.7 cents.

However, the company won’t be wearing its crown for much longer. It will be removed from the ASX 200 in the upcoming quarterly rebalance, to take effect on 19 December.

Of course, that means funds tracking the index will be forced to offload the stock in the coming weeks. That means, as per the law of supply and demand, the near future could be rough on the gold miner’s share price.

The post 3 ASX gold shares rocketing higher on Thursday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX mining shares have had their dividend yields slashed the most in 2022?
• Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping
• Why is the Bellevue Gold share price on ice today?
• Why Beach, Block, Magellan, and St Barbara shares are dropping
• Guess which gold share is being booted out of the ASX 200

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.

from The Motley Fool Australia https://ift.tt/AVzXbNl

The Woolworths Group Ltd (ASX: WOW) share price is up 0.4% as we head into the lunch hour.

Woolworths shares closed yesterday trading for $34.17 and are currently changing hands for $34.29 apiece.

Woolworths, and indeed most ASX consumer staples shares, are outperforming the S&P/ASX 200 Index (ASX: XJO), with the ASX 200 down 0.7% at this same time.

What are ASX 200 investors considering?

Atop the broader bullish trend in consumer staples stocks, the Woolworths share price is outperforming despite preliminary competition concerns raised by the Australian Competition and Consumer Commission (ACCC) today.

In a release this morning, the ACCC outlined concerns over Woolworths’ proposed acquisition of the independent supermarket operating as SUPA IGA in Karabar and co-located liquor store operating as Liquor Boss, located in New South Wales.

Woolworths and SUPA IGA Karabar are currently competitors in the area.

Commenting on the concerns, ACCC commissioner Liza Carver said:

Competition between supermarkets is important in ensuring different product ranges, promotions, and service offerings. We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of groceries in the local area.

Within a 5 kilometre radius of SUPA IGA Karabar, it would reduce the number of operators of supermarkets with a significant size and range from four to three, leaving only Woolworths, Coles and ALDI.

Carver noted similar concerns over Woolworths’ proposed liquor store acquisition. Concerns which the Woolworths share price looks to be shrugging off.

“We are also considering whether the acquisition raises similar concerns in relation to liquor stores, by removing the Liquor Boss as an independent competitor to major liquor store operators,” she said.

Back in 2008, the ACCC also opposed Woolworths’ proposed acquisition of the Karabar Supermarket. At the time, the supermarket had different owners and traded under the ‘Supabarn’ banner.

Woolworths share price snapshot

The Woolworths share price, as you can see in the chart below, is down 11% in 2022. That underperforms the 5% losses posted by the ASX 200 so far this calendar year.

The post What’s impacting the Woolworths share price on Thursday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 10 ASX shares to buy in 2023
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• What’s in store for the Woolworths share price in December?
• Why did the Woolworths share price have such a ripper November?
• Dividends! Goldman Sachs says these ASX 200 shares are buys for income investors

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.

from The Motley Fool Australia https://ift.tt/SqgjhWV

The Chalice Mining Ltd (ASX: CHN) share price has been a very strong performer on Thursday.

In morning trade, the mineral exploration company’s shares are up over 11% to $6.20.

This latest gain means the Chalice Mining share price has rebounded over 40% since this time last month, as you can see below.

Why is the Chalice Mining share price charging higher?

Investors have been scrambling to buy the company’s shares this morning following the release of a promising update on drilling activities at the 100%-owned Julimar NiCu-PGE Project in Western Australia.

According to the release, drilling activities at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation in initial drilling.

Management advised that sulphide mineralisation has been intersected in all five reconnaissance holes from three drill sites over ~1.8km of strike length. Assays are pending for a further nine holes and downhole electromagnetics are currently underway, after which a more definitive interpretation can be made regarding the scale and significance of the newly discovered mineralisation.

And while it notes that the geology and mineralisation at Hooley is quite variable, the high-grade mineralisation encountered so far in initial reconnaissance drilling is considered highly encouraging and highlights the prospectivity of this section of the Julimar Complex.

All in all, this is another promising update that appears to demonstrate the world class potential of the Julimar Complex.

Looking ahead, the company advised that exploration will continue along the Complex targeting extensions to known mineralised zones as well as potential new shallow high-grade zones.

It is also notes that it is possible that different styles of mineralisation (or higher-grade mineralisation) could be intersected along the complex, potentially contributing to the significant long-term value-creation that a world-class mineral district can create.

The post Chalice Mining share price surges 11% on new copper and nickel find appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising

from The Motley Fool Australia https://ift.tt/xEOXtvU

The Downer EDI Ltd (ASX: DOW) share price is plummeting today after the company downgraded its guidance and revealed a historical accounting error with a potential $40 million impact.

The engineering and construction company has identified historical misreporting of its Australia utilities business’ revenue and work in progress in one of its maintenance contracts.

It also revealed it no longer expects to meet its prior profit guidance following a spate of severe weather.

After opening 29% lower at $3.39, the Downer share price tumbled to a low of $3.31 – marking a 31% plunge. It has since recovered slightly to trade 21.35% lower at $3.775 at the time of writing.

Let’s take a closer look at the news weighing on the S&P/ASX 200 Index (ASX: XJO) share today.

What’s happening with the Downer share price?

The Downer share price is plummeting to a new post-pandemic low as the market reacts to major news on the company’s upcoming earnings.

Irregularities in historical revenue reporting identified

Downer has revealed newly found issues with its past revenue reporting could result in a historical overstatement of pre-tax earnings of between $30 million and $40 million at the end of November 2022.

The company has begun a detailed investigation into the issues that appear to relate to the period between September 2019 and November 2022.

The overstatement appears to have accumulated over financial years 2020, 2021, 2022, and 2023.

Any potential ongoing impact is yet to be determined.

Guidance downgrade

Downer also provided a trading update this morning. The company previously anticipated its underlying post-tax profit would grow between 10% and 20% in financial year 2023. However, such expectations have since been binned.

Downer CEO and managing director Grant Fenn commented on the release decimating the company’s share price today, saying:

Although the business has a general skew to the second-half, we think that the challenge for the last seven months of [financial year 2023] has become too large.

Our road services and utilities businesses have been heavily impacted by weather and all businesses have been battling with staff shortages and supply chain issues.

These issues are dissipating but not in time for 2023 earnings.

Discounting any impact of the accounting irregularities, Downer now expects its full-year underlying profit to come in at between $210 million and $230 million.

Though, that assumes no further disruptions, including those from COVID-19, weather, or labour shortages.

The company will provide another update when it drops its half-year earnings in February.

Downer share price snapshot

The Downer share price is currently 38% lower than it was at the start of 2022. It has also dumped 36% since this time last year.

For comparison, the ASX 200 has fallen 5% year to date and 3% over the last 12 months.

The post Why is the Downer share price sinking 20% on Thursday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why CogState, Downer, Temple & Webster, and Woodside shares are dropping

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.

from The Motley Fool Australia https://ift.tt/LzeEgnj