Tag: Motley Fool

The CSL Limited (ASX: CSL) share price has been edging higher in recent weeks. But could it see even further gains as it grows profit?

One expert has outlined why the business could see a promising future.

Writing in an article on Livewire, Kristiaan Rehder from Kardinia Capital said that the end of easy money and the normalising of conditions means that markets are now rewarding stock pickers “more than ever”.

He noted there has been a reduction of the price-to-earnings (p/e) ratio, which is “well-progressed”. Though there have not been “meaningful earnings downgrades across the broader Australian market”.

Kardinia Capital is expecting further p/e multiple contraction “coupled with earnings downgrades,” making for a “challenging investment environment”.

Rehder said that, in this market, companies with a track record and earnings quality “come to the fore, giving an advantage to a well-structured investment process with a more disciplined approach”.

Rehder then picked some ASX shares the investment team believes could outperform over the next five years, including CSL shares.

Strong tailwinds

The fund manager describes the business as developing “plasma-derived and recombinant therapies to treat serious diseases”. Further, it “manufactures influenza vaccines and treats iron deficiency and kidney disease following its recent acquisition of Vifor”.

One of the things that attracted Kardinia Capital was that CSL’s management has “proven adept at maintaining high returns,” with a return on invested capital (ROIC) of at least 20%. The fund manager attributed that to “consistent product development and innovation to drive growth into existing and new markets”.

Another positive element to the business, in the fund manager’s eyes, is that the company has a high market share in industries that have “strong tailwinds”.

Double-digit earnings growth predicted

At the moment, CSL has higher levels of debt because of the amount of funding it needed to acquire the Vifor business. The business raised about $7 billion in a capital raising, though the total acquisition price represented US$11.7 billion, or AU$16.4 billion, at the time of the deal.

However, the fund manager believes that “strong cash flows” will help gearing return to a “more manageable level”.

Rehder said that the CSL share price is trading on a “high earnings multiple”. But, the fund manager suggests the valuation is attractive. That’s because the pharma is “expecting double-digit earnings growth over the next few years as plasma collections recover post-pandemic”.

Recent CSL share price movements

Over the past month, CSL has gone up by around 4%.

The post Looking to buy CSL shares? Why this fundie is tipping ‘double-digit earnings growth’ 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 drug with the ‘potential to become a blockbuster’ for this ASX 200 healthcare company: Citi
• Can the CSL share price crack $300 before the year’s out?
• 3 ASX shares to buy in a sector ready to explode: expert
• Why is the CSL share price smashing the ASX 200 on Thursday?
• Are CSL shares a good buy right now?

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 positions in and has recommended CSL Ltd. 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/XY4vyq8

A little-known ASX energy share is leading the charge higher today.

Heading into the lunch hour the All Ordinaries Index (ASX: XAO) is down 0.3% while the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.3%.

However, ASX oil and gas junior Bass Oil Ltd (ASX: BAS) just rocketed an eye-popping 154.1%. This came after the ASX energy share reported it had identified a “significant gas resource”.

Shares were placed in a trading halt in late morning pending a further announcement, which was just released. That clarified a few typos from the original release, which stated “billions” of barrels of oil rather than “millions”.

ASX energy share leaps on gas discovery

Investors sent the Bass Oil share price soaring after the explorer reported on the results from an independent geological assessment conducted by Fluid Energy Consultants.

According to the release, Fluid identified a potential gas in place of 21 trillion cubic feet (TCF) along with 845 million barrels in place of condensate/oil. The gas and oil potential sits in Bass’s 100% owned PEL 182 site, located in the Cooper Basin in South Australia.

The ASX energy share stated that gas from deep coals, lying below 2,500 metres, represents a new significant gas play in the Cooper Basin as well as a potential new material source of gas for the Australian market.

Commenting on the development, Bass Oil managing director, Tino Guglielmo said:

This is a very exciting development for Bass and its shareholders. At a time when the domestic gas market continues to face huge challenges meeting demand, this new potential gas resource represents a credible material contributor of gas to the domestic market.”

A new gas resource of this kind is able to be commercialised efficiently due to the mature infrastructure of the Cooper Basin.

What’s next?

As far as what’s next for the ASX energy share, Bass said it is studying the best commercialisation strategies to progress the opportunities at PEL 182. Among the options, the company said it is considering self-funding, farmout, and third-party investment.

The post Guess which ASX energy share just rocketed 154% on a new gas discovery 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 is the A2 Milk share price thrashing the ASX 200 on Wednesday?
• Can ASX lithium shares really keep dining out at these price levels?
• Could this top ASX 100 share be the best of an ‘extremely cheap’ sector?
• Are ANZ shares really on track to offer a 7% dividend yield?
• Are Core Lithium shares suddenly on the nose?

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/2E8JfAs

The A2 Milk Company Ltd (ASX: A2M) share price is pushing higher again on Wednesday.

In afternoon trade, the infant formula company’s shares are up almost 3% to $6.03.

This compares favourably to the performance of the ASX 200 index, which is down 0.5% today.

It also means the A2 Milk share price is now up over 14% since this time last month.

Why is the A2 Milk share price smashing the ASX 200 index?

The company’s shares are charging higher today despite there being no news out of it.

However, it is worth noting that A2 Milk’s shares have been performing positively since the company was granted approval to sell its infant formula in the US market.

In addition, A2 Milk commenced its NZ$150 million on-market share buyback last week.

According to the latest update on its buyback, the company bought back 196,859 shares on Monday, bringing the total to date to 2,157,870 shares. That’s the equivalent of approximately NZ$14 million based on today’s price, which is less than 10% of its planned buyback.

This could be an indication that A2 Milk is in the market again today, picking up more shares and driving the price higher.

Are its shares good value?

Bell Potter still sees value in A2 Milk’s shares at the current level.

Earlier this month, the broker retained its buy rating with a $6.80 price target. This suggests potential upside of almost 13% for investors over the next 12 months.

The post Why is the A2 Milk share price thrashing the ASX 200 on Wednesday? 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

• Can this help A2 Milk pick up the pieces in China?
• Here are the top 10 ASX 200 shares today
• Has the worst been and gone for A2 Milk shares?
• Here are the top 10 ASX 200 shares today  
• Why A2 Milk, Cettire, Lottery Corp, and Weebit Nano shares are rising

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 A2 Milk. 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/OXoqYQN

Lithium demand is showing “no signs of slowing” according to ANZ research analysts.

ASX lithium shares include Core Lithium Ltd (ASX: CXO), Allkem Ltd (ASX: AKE), Lake Resources N.L. (ASX: LKE), Sayona Mining Ltd (ASX: SYA) and Pilbara Minerals Ltd (ASX: PLS).

So what could impact the fortunes of ASX lithium shares in the future?

What is ahead for ASX lithium shares?

Core Lithium shares have exploded 179% in the past year, while Allkem shares have surged 52%. Lake Resources shares have leapt 16% in the last 52 weeks, while Sayona shares have soared 56%. Meanwhile, the Pilbara Minerals share price has rocketed 102.5% ahead. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has jumped nearly 15% in the last year.

However, ASX lithium shares suffered in the market on Tuesday and some are continuing to fall today.

For example, Core Lithium shares fell more than 15% on Tuesday and are down nearly 2% today.

Pilbara Minerals shares descended 9% on Tuesday but are climbing 1% today.

Lake Resources shares descended 7% on Tuesday and are 0.28% in the red at the time of writing.

Research analysts at ANZ have highlighted multiple factors that could be positive for ASX lithium shares in the future.

Commodity strategists Daniel Hynes and Soni Kumari, in a recent research note, highlighted that China’s lithium carbonate imports are on the rise. Analysts said:

Demand for battery minerals shows no signs of slowing. Retail sales of new energy vehicles in China jumped by 75% y/y in October to 556,000 units.

China’s imports of lithium carbonate were up 21% m/m in August. 

Another potential boost for lithium could be the US Reduction Act.

Further, strategists highlighted the benefit of US President Joe Biden’s Inflation Reduction Act. This Act provides tax breaks for new electric vehicle purchases.

Under the legislation, the critical minerals used in the EV batteries must come from the US or a country with a free trade agreement with the USA. This could be an opportunity for Australia.

Commenting on this incentive, analysts said:

The US’s Inflation Reduction Act has spurred producers and battery manufacturers to look at capitalising on possible incentives that the new legislation provides to countries with free trade agreements with the US.

Imports of lithium carbonate subsequently surged 86% m/m in August. This comes as supply disruptions from Sichuan’s power issues persist. 

What else?

Analysts at Macquarie are still positive on lithium shares despite the falls on Tuesday, the Financial Review reported. Lithium carbonate futures fell 6.2% on Tuesday on the Wuxi Stainless Steel Exchange but have since jumped 1.5%, analysts noted. Macquarie said:

Despite near-term future price volatility, we believe buoyant lithium prices present potential for valuation upside to all lithium names under our coverage universe.

In other news, Indonesia is in talks with Australia on a potential lithium partnership, The Australian reported earlier this week. Australian Prime Minister Anthony Albanese has joined multiple global leaders in Bali for a G20 Leaders’ Summit this week. Responding to questions on the potential of critical mineral partnerships including Lithium on Tuesday, Albanese said:

Indonesia will grow, along with India, next year’s host of the G20, to be in the top four economies in the world over coming decades.

There’s enormous opportunity for Australia. There’s enormous goodwill. And the fact that Australia has the largest business delegation here at the B20 is a sign of that.

The post Can ASX lithium shares really keep dining out at these price levels? 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

• Are Core Lithium shares suddenly on the nose?
• The future of ASX lithium shares: Are investors looking through rose-coloured glasses?
• Pilbara Minerals share price higher on maiden dividend news
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday

Motley Fool contributor Monica O’Shea 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/Auvh325

The Suncorp Group Ltd (ASX: SUN) share price opened lower today and is currently down 1.26% at $11.73.

Other ASX financial shares are mostly in the red this morning as well. The benchmark S&P/ASX 200 Index (ASX: XJO) is down 0.47%.

One expert reckons ASX insurance shares are “extremely cheap” and is backing Suncorp ahead of the rest.

Why is the Suncorp share price cheap?

Paul Taylor, the portfolio manager for Fidelity’s Australian Equities Fund, says insurance is “by far” one of the cheapest sectors in the market today, alongside ASX energy shares and materials shares.

He points out that insurers are raising their premiums in today’s inflationary environment.

Taylor said:

The insurance sector is… extremely cheap and with premiums on the rise, we believe the general insurance sector is well positioned for growth.

The Fund has significant over-weight positions in… Suncorp.

The Suncorp business is changing

Taylor says his team has been “recession-proofing” their fund by structuring it into these areas.

They are essential goods and services, cheap sectors, and self-help businesses (i.e., those that can, or are, making positive pivots to adapt to today’s economy and/or strengthen their position).

Taylor reckons Suncorp shares are not only cheap but also that the company is in self-help mode, given it is trying to sell its banking business to Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Taylor explains:

Suncorp has been simplifying its business and, with the sale of the bank, will become a very focused general insurance business.

This greater business focus should bring considerably improved valuation metrics.

Suncorp is currently seeking government approval for the $4.9 billion takeover deal.

As fellow Fool Brooke reported last month, Suncorp and ANZ are hoping to complete the deal in the second half of 2023.

Suncorp plans to return most of the expected $3.21 per share profit to its shareholders.  

Suncorp share price snapshot

Brooke also reports that insiders have been taking advantage of the fallen Suncorp share price.

Last month, two company directors bought a combined $320,000 worth of shares. At the time, the Suncorp share price was in the $10 range.

Their new holdings are already up by more than 10%.

The Suncorp share price is up 12.5% over the past month and up 2.2% in the year to date.

By comparison, the ASX 200 is up 6.65% over the past month and down 6.35% in 2022 so far.

The post Could this top ASX 100 share be the best of an ‘extremely cheap’ sector? 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

• Are ANZ shares really on track to offer a 7% dividend yield?
• ASX 200 bank shares: fundie picks winners and losers of the big four
• Could the flurry of recent takeover bids mean ASX 200 shares are going cheap right now?
• Here’s why the ANZ share price could be a good value pick for dividends
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited. 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/Ei5d7YX

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares already boast the highest dividend yield of the S&P/ASX 200 Index (ASX: XJO) big four banking stocks.

And it could be set to grow its offerings, according to top brokers. Indeed, one tips the smallest big four bank to grow its dividends by 20% in coming years.

Right now, the ANZ share price is $24.09.

Let’s take a closer look at what experts believe the future could hold for the banking share and its dividends.

Could ANZ shares offer a 7% dividend yield in FY24?

The ANZ share price could be in for a good run in coming years, as could the banking stock’s dividends, if these experts are to be believed.

Two top brokers have responded well to the bank’s recent full-year earnings.

ANZ posted a $7.1 billion profit and $6.5 million of cash earnings from continuing operations for financial year 2022 in late October. Excitingly, it also revealed an exit net interest margin (NIM) of 1.8%.

Citi said such a NIM is “likely to drive material consensus revenue upgrades, and we think the street upgrades core earnings”, as my Fool colleague James reports. Meanwhile, Goldman Sachs said:

Today’s result suggested that while ANZ’s NIM is likely to peak at higher levels than we previously forecast, this peak is also likely to come through earlier.

ANZ also offered investors a 74 cent per share final dividend, lifting its full-year offerings to $1.46 per share. That leaves the stock trading with a 6% dividend yield at the time of writing.

And that could be gearing up to grow. Citi tips ANZ to pay out $1.66 per share in financial year 2023 and $1.76 per share in financial year 2024.

At its current share price, a $1.76 full-year offering would see ANZ shares trading with a 7.3% dividend yield.

However, the broker also has a $29.25 price target on the stock. At such a level, $1.76 in dividends would see ANZ trading with a 6% yield.

The post Are ANZ shares really on track to offer a 7% dividend yield? 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 this top ASX 100 share be the best of an ‘extremely cheap’ sector?
• ASX 200 bank shares: fundie picks winners and losers of the big four
• Could the flurry of recent takeover bids mean ASX 200 shares are going cheap right now?
• Here’s why the ANZ share price could be a good value pick for dividends
• ASX 200 bank shares: Buy, hold, or fold?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs. 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/i9QL6u8

Core Lithium Ltd (ASX: CXO) shares have been among the top performers over the past 12 months, rocketing 172%.

That’s across a period where the S&P/ASX 200 Index (ASX: XJO) lost 4%, mind you.

So, you’re unlikely to fund any longer-term shareholders complaining.

But are there headwinds brewing for this leading ASX lithium stock?

Are Core Lithium shares suddenly on the nose?

In late morning trade, Core Lithium shares are down 4.3% at $1.50.

This follows a horror day yesterday, which saw the miner close down 15.8%. That, in turn, followed a stellar run higher on Monday, where the share price gained a whopping 11.7%.

It appears investors are trying to sort out the near-term trajectory of this top ASX lithium stock alongside the wider outlook for lithium prices heading into 2023.

Those same uncertainties saw US lithium giant Albemarle Corporation (NYSE: ALB) close down 6.5% overnight while rival Livent Corp (NYSE: LTHM) dropped 6.8%.

What is the outlook for lithium prices?

Core Lithium shares have been a clear beneficiary of rocketing lithium prices amid the global EV boom that’s driven a sharp increase in demand for the battery-critical metal.

Much of that demand comes from China, a world leader in EV production.

And China happens to be where some of the big uncertainty is coming from. Uncertainty that looks to be roiling the Core Lithium share price this week.

Yesterday, The Australian Financial Review cited Credit Suisse analyst Saul Kavonic, who pointed to a potential decrease in lithium demand from China as driving a 7% fall in lithium carbonate futures on the Wuxi Stainless Steel Exchange.

Kavonic said there was “speculation in China that a major cathode producer might have slashed production targets and some Chinese firms forecasting softening in the market later in 2023”.

As for where the lithium price is heading next and what type of headwinds or tailwinds Core Lithium shares can expect, that depends on who you ask.

What do the experts say?

Goldman Sachs remains rather bearish on its outlook.

According to Aditi Rai, global commodities strategist at Goldman (courtesy of the AFR):

With downstream overcapacity and slowing EV sales likely to become increasingly apparent over the course of next year, we expect downward pressure on the lithium price to build on surplus cues, particularly from the second half of 2023 onward.

Macquarie has a decidedly more bullish take.

The broker noted that lithium carbonate futures on the Wuxi Stainless Steel Exchange have gained 1.5% since the prior day’s selloff and expects prices to remain “buoyant”.

“Despite near-term future price volatility, we believe buoyant lithium prices present potential for valuation upside to all lithium names under our coverage universe,” Macquarie analysts said.

Although downtrading Core Lithium shares to a neutral rating yesterday, Macquarie has a price target of $1.80 for the stock. That’s 20% above the current share price.

The post Are Core Lithium shares suddenly on the nose? 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 future of ASX lithium shares: Are investors looking through rose-coloured glasses?
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why are ASX 200 lithium shares hitting the dirt on Tuesday?
• Why is the Core Lithium share price falling 12% on Tuesday?

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/GR2y8aj

The OZ Minerals Limited (ASX: OZL) share price has been paused on Wednesday.

This follows a request for a trading halt from the copper miner prior to the market open this morning.

Why is the OZ Minerals share price paused?

OZ Minerals requested a trading halt this morning for the following reason:

In accordance with ASX Listing Rule 17.1, the Company requests the trading halt pending an announcement by the Company in relation to a potential change of control transaction.

The copper miner has requested that its shares remain halted until the earlier of the commencement of trade on Friday or the release of an announcement.

What’s going on?

As readers may be aware, back in August, BHP Group Ltd (ASX: BHP) made a $25.00 per share offer to acquire OZ Minerals.

Despite this being a 32% premium to the OZ Minerals share price at the time, it wasn’t enough for the miner’s board.

With the assistance of its financial and legal advisers, the board unanimously determined that the indicative proposal significantly undervalued OZ Minerals and was not in the best interests of shareholders.

OZ Minerals CEO, Andrew Coles, also highlighted that the company has “a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations.” Coles further noted that these minerals “are in strong demand particularly for the global electrification and decarbonisation thematic” and that the proposal failed to sufficiently recognise these attributes.

What’s the latest?

While nothing has been confirmed from either party, the rumour on the street is that BHP has returned with an improved offer in the high $20s.

This compares to the current OZ Minerals share price of $26.30.

Whether this will be enough to get due diligence access, we’ll find out in the coming days. Though, it is worth noting that some analysts have previously stated that an offer closer to $40.00 may be required to get a deal over the line.

The post OZ Minerals share price halted amid possible new BHP takeover bid 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

• 2 ASX dividend giants to buy now: brokers
• How I’d aim to generate a growing passive income from dividend shares
• Why are ASX 200 mining shares going nuts on Monday?
• Why is the BHP share price having such a ripper day?
• Are ASX share investors getting their mojo back?

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/ruLnD0v

If you’re hoping to bag the next dividend from Westpac Banking Corp (ASX: WBC) shares, there’s no time to waste. Westpac, along with the other ASX big four bank shares, is famous for its dividends. It is one of the largest and most widely-held ASX shares on the market, perhaps for this reason.   

But Westpac has had some hiccups when it comes to its dividend payments in recent years. For one, it was the only ASX bank to skip a dividend entirely during the COVID crash of 2020.

But all that is in the rearview mirror now, and Westpac has been building back its dividend with a vengeance.

Its latest payout, the final dividend for FY2022, is due to hit investors’ bank accounts on 20 December next month. It will be a payment worth 64 cents per share, fully franked. That represents a healthy rise from last year’s final dividend of 60 cents per share, as well as the interim dividend of 61 cents per share that investors received in June.

In fact, it will be Westpac’s largest post-COVID dividend since the December 2019 payment of 80 cents per share.

Want Westpac’s latest dividend? Better get in quick

But if investors wish to net themselves this dividend payment, they will have to be quick. That’s because Westpac is due to trade ex-dividend for this payment tomorrow. When a company goes ex-dividend, it effectively means that any new investors from that date are not eligible to receive the dividend payment in question.  

This means that Westpac shares bought today will come with an entitlement to next month’s dividend cheque. Those bought tomorrow will not.

So we can expect a sizeable drop in the Westpac share price tomorrow reflecting this loss of value for new investors. Shareholders will then have until 21 November to decide if they wish to participate in Westpac’s dividend reinvestment plan (DRP) and receive additional shares in lieu of a cash payment.

This payment will give Westpac shares a dividend yield of 5.24% at the time of payment, based on the current (at the time of writing) Westpac share price of $23.88.

The post Hoping to bag the latest Westpac dividend payment? Here’s what you need to know 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

• 2 ASX dividend giants to buy now: brokers
• ASX 200 bank shares: fundie picks winners and losers of the big four
• 3 reasons the Westpac share price is great value: Goldman Sachs
• 4 ASX 200 shares trading ex-dividend next week
• 5 of the craziest things making news on the ASX this week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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/7QPIEdx

This year has been astronomical for ASX lithium shares as many market watchers seemingly hope surging demand will continue to bolster the price of the battery-making material sky-high.

Despite posting notable tumbles yesterday, the share prices of some of the market’s favourite lithium stocks have rocketed in 2022. Take a look:

• Core Lithium Ltd (ASX: CXO) shares have soared 149% this year
• Those of Pilbara Minerals Ltd (ASX: PLS) have jumped 37%
• Stock in Allkem Ltd (ASX: AKE) has gained 27% year to date
• That of Sayona Mining Ltd (ASX: SYA) has jumped 68%
• Finally, the Liontown Resources Ltd (ASX: LTR) share price has lifted 17%

But a few wary voices are warning investors the lithium train’s meteoric gains might not continue as others predict. Could those invested in ASX lithium shares be looking through rose-coloured glasses?

Are fans of ASX lithium shares wearing rose-coloured glasses?

The seemingly continuous hype surrounding lithium might be clouding the real challenges in the material’s supply, according to Schroders head of Australian equities Martin Conlon. He points to two factors with the potential to weigh on the sector.

First, mining lithium is a carbon-intensive activity. Lithium is hard to come by in large quantities. As a result, a lot more mining has to happen to produce lithium than, say, iron ore.

That means electric vehicles might only reach true carbon neutrality after 100,000 kilometres on the road. Which leads to Conlon’s second point.

Policies designed to push uptake of electric vehicles faster than miners can produce lithium “risk being counter-productive”, he says. Conlon continues:

Stratospheric [lithium] prices are vastly higher than needed to incentivise new supply and are therefore difficult to rationalise on any fundamental basis.

Nevertheless, if governments insist on attempting to create additional (often artificial) demand assisted by subsidies to appease the voracious appetite for rapid climate action, there is an obvious possibility large amounts of global taxpayer money will be transferred to ‘green metal’ producers.

The wager in purchasing lithium and many other battery material exposures at present is firmly in the hands of ongoing ill-considered government intervention.

Could yesterday’s tumble be just the beginning?

Meanwhile, ASX lithium shares had a disastrous day on the market on Tuesday.

Of course, their tumbles might have had something to do with profit-taking. Word China will ease certain COVID-19 restrictions sent materials stocks soaring on Monday, boosting shares in some lithium favourites as much as 11.7%. Such gains might have proven too tempting for some investors.

Though, there may have been more to yesterday’s suffering than initially met the eye.

It might have been spurred by bearish sentiment from Goldman Sachs.

The broker believes demand for lithium will continue this year. However, it expects the market to slip into surplus from the second half of 2023, as The Motley Fool reports. Analysts reportedly forecast that lithium supply could be 40,000 tonnes greater than annual demand by 2025. That would likely be dire for ASX lithium shares’ balance sheets.

Additionally, according to Credit Suisse analyst Saul Kavonic, courtesy of the Australian Financial Review, the plunge might have been driven by falling lithium carbonate futures on the Wuxi Stainless Steel Exchange. Kavonic reportedly said the fall came amid news:

[A] major cathode producer might have slashed production targets and some Chinese firms [are] forecasting softening in the market later in 2023.

Still, plenty of brokers remain bullish on lithium. Macquarie, for one, recently tipped spodumene prices to reach US$6,500 a tonne.

The post The future of ASX lithium shares: Are investors looking through rose-coloured glasses? 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

• Pilbara Minerals share price higher on maiden dividend news
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why are ASX 200 lithium shares hitting the dirt on Tuesday?
• Why is the Pilbara Minerals share price tumbling 10% on Tuesday?

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 positions in and has recommended Goldman Sachs. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Schroders (Voting). The Motley Fool Australia has recommended Macquarie Group Limited. 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/DSj5ykn