Tag: Motley Fool

The BHP Group Ltd (ASX: BHP) share price has gone backwards by 15% in 2024. After a difficult couple of months for the ASX mining share, is it time to buy?

BHP has suffered from a falling iron ore price, as well as large one-off costs in its FY24 first-half result which included a write-down of its nickel assets, and more costs allocated for the Samarco disaster in Brazil.

Is the BHP share price a buy?

According to reporting by The Australian, the broker Citi has changed its rating on the ASX iron ore share to a buy, though its price target was unmoved at $46.

A price target is where the broker thinks the share price will be in 12 months.

At the current BHP share price – which is up more than 2% today at the time of writing – that would suggest a potential rise of close to 7% over the next 12 months. Any dividends paid would be a bonus on top of that.

Citi analyst Paul McTaggart said that BHP “now looks cheap enough” based on normalised valuation multiples.

The Australian reported McTaggart noted the enterprise value to earnings before interest, tax, depreciation and amortisation (EBITDA) ratio is 5 times, compared to the long-term average of 6.3 times. The price to cash flow ratio is 6.4 times, compared to the long-term average of 8 times.

In other words, if we look back at history, BHP is looking materially cheaper than it has in the past, based on those two ratios.  

However, at the same time, Citi didn’t say that BHP was the cheapest ASX iron ore share. McTaggart explained:

We stay buy rated on Rio Tinto Ltd (ASX: RIO) and note it is still the cheapest of the large iron ore exposures with the highest mid-term production growth.

Other valuation metrics

According to the estimates on Commsec, the BHP share price is valued at 10 times FY24’s estimated earnings with a possible grossed-up dividend yield of 7.9% in FY24. We’ll have to see if Citi is right about the positive outlook for this ASX share over the next year.

The post Is the BHP share price now cheap enough to buy after falling 15% in 2024? 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

• How much could a $300,000 ASX share portfolio pay in dividends?
• Here’s the iron ore price forecast through to 2027
• After a rough start to 2024 these 3 ASX 200 mining stocks are looking cheap to me
• How much passive income will I get from shares vs. property?
• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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/htN9ULc

The DroneShield Ltd (ASX: DRO) share price is on the move again on Thursday.

In morning trade, the counter drone technology company’s shares were up as much as 9% to 75.5 cents.

However, its shares have since pulled back and are now trading only a touch higher.

What’s going on with the DroneShield share price?

Investors were bidding the company’s shares higher this morning after it announced another major contract win.

According to the release, DroneShield has received a repeat order of $4.3 million from a U.S. Government customer for a number of its handheld C-UAS systems.

The company is moving quickly and expects the delivery to be complete over the next 15 days, using available stock on hand.

It highlights that it has been working with this customer for several years, with a number of smaller preceding orders. However, this is the first material contract from the customer.

The even better news is that “subsequent material larger orders are expected in near term.”

Though, the exact timing and quantum of future orders will be advised to market as further information becomes available.

DroneShield’s US CEO, Matt McCrann, commented:

DroneShield products have undergone extensive evaluations from a number of U.S. Government agencies in the last several years, and we’re honored by the customer relationship we have and pleased to start seeing the results of these efforts.

In addition to market leading product performance, the ability for us to rapidly deliver DroneShield solutions was important to the customer. We’re proud to be able to do so in support of their urgent operational requirements, as drone threats continue to rapidly escalate.

While this is great news, it seems that a touch of market volatility has started to overshadow it, causing the DroneShield share price to give back its gains.

The post DroneShield share price higher on major US government order 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

• Brokers name 3 ASX shares to buy now
• DroneShield share price down 36% in 6 days. Should you buy the dip?
• Why DroneShield, Magellan, Platinum, and Zip shares are rising today
• Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher
• Why this leading broker just upgraded DroneShield 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 DroneShield. 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/IqLpm6a

The ASX isn’t only a great place to grow your wealth, but also somewhere you can use your wealth to generate huge passive income from dividends.

But just how much income could you receive from a portfolio? Let’s take a look and see what could be possible from a $300,000 investment portfolio.

Wealth generation

Firstly, if you’re lucky enough to already have a portfolio valued at $300,000, you can skip this section.

But if you don’t, let’s quickly look at how you could potentially get there.

It’s worth noting that how long it takes will depend upon your starting balance, how much you can invest, and the performance of ASX shares.

Over the last few decades, ASX shares have generated an average return of approximately 10% per annum including dividends.

There’s no guarantee that this will be the case in the future, but as it is in line with long-term averages on Wall Street, we’re going to assume that this trend continues for the purpose of our calculations.

If you can afford to invest $12,000 a year into ASX shares and earn the market return (and reinvest your dividends), you will get to the $300,000 mark after just over 12 years. Investing less (or more) will alter the timeline.

ASX dividends from $300,000

Now we’re all on the same page, let’s move onto the next step.

Investors have a few options with their portfolio. They can settle for the average dividend yield of the ASX, which is normally around 4%, or they can focus on high yield ASX shares.

If you go for the standard 4% dividend yield, you can expect to receive $12,000 of dividends from your ASX shares.

But if you focus on high yield ASX shares you can generate even more income.

High yield options

One easy way to do this is the Vanguard Australian Shares High Yield ETF (ASX: VHY). It gives you exposure to a portfolio filled with many of the biggest payers on the Australian share market.

This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Fortescue Ltd (ASX: FMG), and Transurban Group (ASX: TCL).

At present, it trades with a dividend yield of 5.1%. This means that a $300,000 investment portfolio would produce $15,300 of income.

But it isn’t likely to stop there. Over the last five years, the ETF has gained 25% excluding dividends. If it did the same in the future, your $300,000 portfolio would grow to be worth $375,000.

And earning a 5.1% dividend yield on that amount would mean annual dividend income of $19,125.

The post How much could a $300,000 ASX share portfolio pay in dividends? 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 iron ore price forecast through to 2027
• 3 high-yield ASX dividend shares that pay cash every quarter
• Here is the profit forecast to 2026 for CBA shares
• Buy these ASX ETFs for a second income
• After a rough start to 2024 these 3 ASX 200 mining stocks are looking cheap to me

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 Transurban Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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/4xYtzIi

There’s been some big moves in the telco industry on Thursday.

This will either be good news of bad news depending on whether you own Superloop Ltd (ASX: SLC)  or Aussie Broadband Ltd (ASX: ABB) shares. That’s because they are heading in very different directions.

In early trade, the Aussie Broadband share price is down 25% to $3.24. Whereas the Superloop share price is up 34% to a 52-week high of $1.41 this morning.

And the company to thank (or blame) for these big moves is Origin Energy Ltd (ASX: ORG).

What’s going on with Aussie Broadband and Superloop shares?

As readers may be aware, Origin has been offering broadband services for a few years.

It has been doing this through a white label agreement with Aussie Broadband. However, Origin has terminated the white label wholesale agreement effective 12 April 2024.

Aussie Broadband estimates that the agreement will contribute $14 million to EBITDA in FY 2024 despite ending before the end of the financial year. So, this does create a bit of a dent in the company’s earnings.

Management notes that the two parties had been in discussions about a new deal, but it would have generated less earnings in the future.

Superloop seals deal

Superloop shares are rallying today after it secured the wholesale agreement with Origin.

It is an exclusive six-year wholesale contract which will see the migration of Origin’s broadband customer accounts, currently 130,000 and growing, onto Superloop’s network. The transition of Origin’s current subscriber base is expected to occur during FY 2025.

The contract is expected to add in excess of $19 million of annualised EBITDA once the current subscriber base is fully transitioned, with further upside based on Origin’s rapidly growing broadband customer base.

Origin issued shares

As part of the deal, Superloop is issuing Origin a large number of shares in the company. It has issued 9,847,690 Superloop shares upfront on signing.

It will then issue another 9,847,690 shares on the completion of the migration of 130,000 customers, and up to another $30 million of Superloop shares subject to achieving further customer growth milestones. It has also granted 55,672,002 options upfront on signing.

Superloop CEO, Paul Tyler, said:

Securing the Origin contract is a key progress milestone in Superloop’s three-year growth strategy. It delivers a step-change in our customer numbers and cements our market position as a leading wholesale broadband and backhaul provider. In order to create strong alignment and pursue growth in broadband customers, we are delighted to welcome Origin as a shareholder and to issue it an option to acquire further shares.

Finally, in other news, Superloop has upgraded its EBITDA guidance for FY 2024 to $51 million to $53 million (from $49 million to $53 million).

The post Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%? 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

• Long-term investing: 3 top ASX stocks you can buy for under $20 a share
• Key takeouts for ASX shares this earnings season: CBA analysis
• Passive income watch: The ASX stocks dishing out the biggest dividend boosts this earnings season
• Which ASX shares delivered the biggest profit jumps of the earnings season?
• 34 ASX 200 shares with ex-dividend dates next week

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 Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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/vyniH6k

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) did its part in the “Magnificent Seven” in 2023, playing an outsized role along with the other six stocks in driving the market higher. In 2024, its role appears much diminished as the stock is down. It might have even further to fall in the near term as sentiment about Tesla is turning negative. Wells Fargo analyst Colin Langan recently downgraded the stock to the equivalent of a sell rating and cut his firm’s price target to $125.

Langan previously had a hold rating on Tesla with a price target of $200 per share. Tesla shares have already dropped roughly 30% in 2024 as lagging demand and competition for electric vehicle (EV) buyers have eroded profits.

Is it time to sell Tesla?

If Langan is right, Tesla shares will reach a level last seen in January 2023. While Tesla continued to ramp up production and sales during 2023, it was also a year of rising competition. That led to price reductions on its electric cars to help spur sales. The result was higher revenue as volume grew compared to 2022, but lower profit margin and free cash flow.

Langan and his team think that trend will continue in 2024. In a note to clients, he wrote “We expect volume to disappoint as price cuts are having a diminishing impact on demand.” He believes the result will be lower-than-expected vehicle deliveries and sees 2024 net earnings coming in more than 30% below current analyst estimates.

Most notable is the fact that the analyst now sees vehicle delivery volume flat in 2024 versus 2023. Tesla delivered about 1.8 million EVs last year. Langan also projects that level will remain the same for 2025 as well.

If those projections turn out to be accurate, it’s likely that he will be proven right that Tesla stock can drop another 28% from its current level. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 Wall Street analyst thinks Tesla stock is going to $125. Is it a sell? 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

• How to make 7% interest while deciding which ASX shares to buy
• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• Why did the Tesla share price just tumble 7%?
• Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven
• Buy and hold these ASX ETFs for 10 years or more

Howard Smith has positions in Tesla. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/s6vXFLN

Appen Ltd (ASX: APX) shares have been on a rollercoaster ride this week.

Speculation that the artificial intelligence (AI) data services company was a takeover target caused its shares to rocket on Tuesday.

But then news that the non-binding takeover offer on the table from Innodata Inc (NASDAQ: INOD) was significantly less than expected caused Appen’s shares to crash back down to Earth.

Unfortunately, this decline has continued on Thursday after the company released a further update on the takeover proposal.

In early trade, the Appen share price is down 17% to 80 cents.

Appen shares sink on takeover update

As you might have guessed from the share price reaction, this update is not a good one.

According to the release, Appen has been informed that Innodata has walked away from talks and withdrawn its offer for the company.

Innodata appears upset that news of its offer was leaked to the investment community.

It informed Appen that it was withdrawing the indicative proposal on the basis that it was intended to remain confidential.

It is also worth noting that investors in the United States didn’t respond positively to news of the offer. Innodata’s shares on the Nasdaq index crashed 16% the day the proposal was made public.

They didn’t appear to believe that acquiring a company going through such a difficult period would be a smart move by management. Particularly given that Innodata is still operating at a loss.

What now?

With these takeover talks over, Appen will go back to focusing on its turnaround.

It has advised that it will continue to update shareholders in accordance with its continuous disclosure obligations.

Appen shares are down by 67% over the last 12 months.

The post Appen shares plunges 17% after takeover collapse 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 are Appen shares crashing 21% today?
• Appen share price on watch following takeover offer
• Big news about to drop: Appen share price put on ice following 41% surge
• Appen share price tumbles amid ongoing losses for the ASX AI stock
• Guess which beaten-up ASX 300 tech stock is rocketing 15% today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. 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/hm9bfBp

The Myer Holdings Ltd (ASX: MYR) share price is pushing higher on Thursday.

At the time of writing, the department store operator’s shares are up 5.5% to 84 cents.

This follows the release of the company’s half-year results.

Myer share price higher despite profit decline

• Total sales down 3% to $1,829.1 million
• Cost of doing business up 1.6% to $449.4 million
• EBITDA down 10.4% to $215.7 million
• Net profit after tax down 19.9% to $52 million
• Fully franked interim dividend of 3 cents per share

What happened during the half?

For the six months ended 27 January, Myer reported a 3% decline in sales to $1,829.1 million.

This was driven largely by store closures, which offset a 0.1% increase in comparable sales growth and a 2% lift in online sales to $390.1 million. The latter now represents 21.3% of total sales, which is up from 20.3% a year earlier.

The biggest disappointment for investors will no doubt be its profits. Myer’s EBITDA was down 10.4% to $215.7 million and its net profit after tax dropped 19.9% to $52 million.

This led to the company’s board cutting its fully franked interim dividend by 25% to 3 cents per share.

Management commentary

Myer’s CEO, John King, was pleased with the half given the macroeconomic challenges. He said:

The Customer First Plan continues to deliver for Myer despite the macro economic conditions. We were able to achieve a strong comparable sales outcome, cycling our best ever 1st half sales on record in FY2023 and saw improvements in our market share across both stores and online.

Our underlying profit result has remained robust despite the impacts from our Brisbane Store closure and increased promotional cadence. The ramp up of our new National Distribution Centre in Q4, continued roll out of new shopping experiences and brands, tight inventory management and continued focus on newness in 2H, will help with momentum into the second half.

Board changes

It has been revealed that John King will be stepping down from the role as CEO in the coming months and incumbent chair, Ari Mervis, will exit with immediate effect.

The Myer board has appointed independent non-executive director, Olivia Wirth, as its executive chair to drive the company’s next phase of growth.

Myer’s executive general manager of stores, Tony Sutton, has been promoted to the new executive position of chief operating officer, reporting to Ms Wirth.

Its current independent non-executive director, Dr Gary Weiss AM, will become deputy chair and lead independent director.

Outlook

During the first six weeks of the second half, department store comparable sales are up 4.9% over the corresponding period.

Outgoing CEO, John King, said:

Like all retailers, we continue to remain cautious about the macro-economic environment, however, we are encouraged with our results for the first six weeks of 2H, and have a strong program of deliverables to roll out during the half as part of our Customer First Plan.

In other news, the company is looking at potentially offloading its sass & bide, Marcs, and David Lawrence businesses. It has appointed advisors to commence a strategic review.

The Myer share price remains down almost 20% over the last 12 months.

The post Myer share price charges higher on half-year results and major board changes 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

• Own Westpac shares? The bank may be looking for a new CEO
• I think they can! 3 ASX shares that can keep chugging higher
• Arafura share price halted ahead of blockbuster funding news
• Could Liontown shares really rally another 32%?
• Analysts say these ASX dividend shares are strong buys

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/ma9loKz

Westpac Banking Corp (ASX: WBC) shares are in the headlines today on speculation that the ASX bank share’s current CEO, Peter King, may be on the way out this year.

Peter King was appointed as the Westpac CEO in April 2020 after holding the role on an acting basis between December 2019 and March 2020. He joined Westpac in 1994 after holding various roles, including chief financial officer.

Is Peter King leaving?

According to reporting by The Australian, Westpac is actively looking to replace Peter King by the end of the year.

In recent meetings with the new chair Steven Gregg, a few investors and analysts were told that Westpac is searching for a new boss, The Australian‘s sources said.

While a change was expected to happen eventually, the speed of the shift may surprise some investors.

Up until now, Westpac hasn’t publicly acknowledged it’s looking for a new CEO, though in July it did suggest a change may occur within a few years. When contacted by The Australian, a spokesman for the bank reportedly declined to comment.

Has the Westpac share price done well?

Thanks to the recent rally of the Westpac share price, it’s up more than 10% since King became the acting CEO. But, it has risen more than 70% since Peter King was appointed as the official CEO.

The recent FY24 first quarter was not exactly inspiring, with the core net interest margin (NIM) of 1.80% falling 4 basis points (0.04%) compared to the second half of FY23.

The underlying net profit after tax (NPAT), which excludes notable items, was $1.8 billion and it was flat compared to the quarterly average of the FY23 second half. The actual net profit was $1.5 billion, down 6% on the FY23 second-half quarterly average.

Time will tell how the bank performs in this rising-arrear environment and what a new CEO can bring to the table.

Westpac share price snapshot

Since the start of 2024, the Westpac share price is up close to 20%.

The post Own Westpac shares? The bank may be looking for a new CEO 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

• How much passive income will I get from shares vs. property?
• Should you wait for a dip to buy ASX 200 bank shares?
• If I’d put $5,000 in Westpac shares at the start of 2024, here’s what I’d have now
• Here’s how the ASX 200 market sectors stacked up this week
• A 10% dividend yield from Westpac shares? Here’s how these income investors achieved it!

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/Fwnj1Vh

It has been a great time to be an investor in the ASX share market. Lots of businesses have seen their share prices climb – I think there are some that can keep rising and outperforming.

ASX shares that are delivering good underlying operational growth are appealing to me because I think they can keep driving shareholder value higher.

Despite their recent strong performance, I rate the ASX shares below as buys.

Tuas Ltd (ASX: TUA)

The Tuas share price has climbed 82% in the last six months.

The Asian ASX telco share is making great progress – in FY23 it generated $86.1 million of revenue and $31.1 million of earnings before interest, tax, depreciation and amortisation (EBITDA). Then, in the first quarter of FY24, it made $26.7 million of revenue and $11 million of EBITDA.

If we annualise those quarterly numbers, it’s already on track to deliver good growth compared to FY23.

But, I don’t think it’s finished growing – the business reported ongoing active services growth – it has added more than 50,000 active services each quarter in the last three quarters. The average revenue per user (ARPU) keeps growing too – FY23 ARPU was $9.37, while the FY24 first quarter ARPU was $9.53.

If users, ARPU and profitability keep growing, I think the ASX share has a very promising future. Growth into other Asian countries is also a possibility, in my mind.

Nick Scali Limited (ASX: NCK)

Nick Scali is a growing furniture retailer, which operates both the Nick Scali business and Plush. The Nick Scali share price is up 33% from 1 December 2023 as it recovers from investor pessimism about retail spending and the economy due to the cost of living.

But, things are looking more positive for the company with the economy remaining resilient and demand holding up. In its HY24 result, the company reported that written sales orders of $58.9 million were up 3.6% compared to January 2023.

It has a promising future with its ongoing store rollout for both of its businesses in Australia and New Zealand. Online sales growth is also promising because of the high potential profit margin.

Nick Scali normally has a generous dividend yield, which can add to the potential returns.

GQG Partners Inc (ASX: GQG)

GQG is a large and growing fund manager that offers investors a few different investment strategies, including US shares, global shares, international shares and emerging market shares. The GQG share price is up around 40% in six months.

It has done an impressive job of outperforming its global benchmarks over the long term with its investment funds, which are attracting net funds under management (FUM) inflows every month.

In the ASX share’s update for February 2024, GQG revealed its FUM had grown to US$137.5 billion, up from US$127 billion at January 2024. For the year to date, meaning the first two months of 2024, it saw US$3 billion of net inflows.

If FUM keeps rising, then growing revenue and profit can keep powering the business higher, in my opinion.

The post I think they can! 3 ASX shares that can keep chugging higher 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

• 3 high-yield ASX dividend shares that pay cash every quarter
• Got $10,000 to invest? How to turn it into monthly income
• Why Cettire, GQG, Mesoblast, and Nine Entertainment shares are falling today
• Up 7%: This All Ords stock reported some big ASX news today
• Cash kings: 2 top ASX dividend shares that pay quarterly

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 recommended Nick Scali. 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/pSUXq8j

The Arafura Rare Earths Ltd (ASX: ARU) share price is expected to be out of action on Thursday.

That’s because yesterday the rare earths developer requested a trading halt until the market open on Friday.

Why is the Arafura share price halted?

The company requested the trading halt so that it could prepare an announcement relating to debt funding for the Nolans Project in the Northern Territory. Its request states:

The Company is seeking a trading halt pending an announcement to the market regarding debt financing support; b) The Company requests the trading halt remain in place until the earlier of the Company releasing an announcement in relation to debt financing support or the commencement of trading on Friday 15 March 2024.

What’s going on?

While the details of the debt funding have not been released to the market yet, there are reports claiming that Arafura is about to get a huge cash injection from the government.

According to the AFR, the Albanese government is expected to announce an $840 million package of loans and grants to support the development of the Nolans Project.

This will be the Labor government’s largest single financial commitment in the critical minerals sector and brings taxpayers’ exposure to rare earths mining and processing to over $2 billion. Previously the government has supported the development of the Eneabba project owned by Iluka Resources Limited (ASX: ILU) in Western Australia.

Arafura’s funding reportedly includes approximately $495 million in loans from the Critical Minerals Facility, $200 million from the revamped Northern Australia Infrastructure Facility, and upwards of $115 million in federal export financing.

Prime Minister, Anthony Albanese, is quoted saying:

This will create local jobs and economic opportunities, helping Australian and Territory companies and workers capture more value from the game-changing critical minerals deposits we have here.

The Arafura share price is down 72% over the last 12 months.

The post Arafura share price halted ahead of blockbuster funding news 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

• Could Liontown shares really rally another 32%?
• Analysts say these ASX dividend shares are strong buys
• If I buy $8,000 of Challenger shares, how much passive income will I receive in 2024?
• Is the Vanguard Australian Property Securities Index ETF (VAP) a good investment?
• Here’s the iron ore price forecast through to 2027

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/0GpS1nv