Tag: Motley Fool

The good news for income investors is that there are a number of exchange traded funds (ETFs) that have been set up to provide access to large groups of dividend shares through a single investment.

Two such ETFs are listed below. Here’s why they could be top options for income investors:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The BetaShares S&P 500 Yield Maximiser could be a top option for income investors.

This ETF give investors exposure to the 500 largest companies listed on Wall Street. And while the S&P 500 index doesn’t have the biggest average yield, this ETF’s ‘covered call’ strategy changes all of that.

That’s because using the strategy, the ETF is expected to earn quarterly income that is significantly greater than the dividend yield of the underlying share portfolio over the medium term.

Among the companies included in the fund are giants such as Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and Walmart. At the time of writing, its units were providing investors with a trailing 6.6% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is another ETF that could be a good option for income investors.

There’s nothing particularly fancy about the way this ETF is run, it simply does exactly what it says on the tin. It provides investors with exposure to ASX-listed shares that have higher than average forecast dividends.

One thing the ETF does do, though, is restrict the proportion invested in any one industry to 40% and 10% for any one company. This ensures that investors are holding a diverse collection of dividend shares.

Included in the fund are the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 6.3%.

The post 2 ETFs for ASX investors to buy for big 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

• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market
• How regularly does the Vanguard Australian Shares ETF (VAS) pay dividends?
• Is the Vanguard Australian Shares ETF fighting off inflation?
• Why did the Vanguard Australian Shares Index ETF perform strongly in October?
• 2 excellent ETFs for ASX investors in November

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 positions in and has recommended BetaShares S&P500 Yield Maximiser and Telstra Corporation 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/PIYzNXZ

Sandfire Resources Ltd (ASX: SFR) shares soared by 5.25% on Thursday to finish the session at $4.21 apiece.

The ASX 200 copper miner reached an intraday high of $4.24 — a 6% bump on yesterday’s close — after announcing it has appointed a new CEO.

Drum roll, please…

What news lifted the Sandfire Resources share price today?

Sandfire announced this morning that Brendan Harris, a highly experienced mining executive, will become its new CEO and managing director on 3 April next year.

Harris will replace founding CEO Karl Simich, who finished up with the company on 30 September after 15 years at the helm. He remains the ASX 200 copper miner’s largest individual shareholder.

Sandfire conducted a global search to identify the best candidate to lead the copper miner from here.

Who is Brendan Harris?

Harris has extensive experience as an exploration geologist and was previously a senior executive with BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32).

He was South32’s first chief financial officer after the company was formed following the BHP demerger in 2015.

Most recently, he was South32’s chief human resources and commercial officer. In that job, he was responsible for global commodity marketing, procurement, and human resources.

He joined BHP in 2010 and was the company’s global head of investor relations.

Before that, he worked in investment banking and held various roles. They included an executive director at Macquarie Securities, where he led the metals and mining research team.

In a statement, Sandfire Resources said:

Mr Harris brings a broad range of leadership, commercial and technical skills to Sandfire, particularly in the management and operations of a diversified international mining business, and he has a deep understanding of the future-facing metals required to sustainably decarbonise the global economy.

His appointment positions Sandfire to execute the next phase of its growth strategy and capitalise on its emerging position as a multi-mine producer of copper, a critical metal required to support the world’s transition toward renewable energy and net-zero emissions.

Sandfire will pay Harris a fixed salary of $1.2 million, including superannuation. There are short-term and long-term incentives on top.

What’s next for the ASX 200 copper miner?

Investors are clearly relieved to have a new CEO sorted out, given the share price bump today.

The ASX 200 copper miner announced the departure of Simich on 30 September.

In a statement, Sandfire said the board and Simich agreed it was “a logical time for a leadership transition as Sandfire continues the next phase of its growth path as an international copper miner”.

The company says it has now achieved three successful quarters at its MATSA Copper Operations.

Sandfire acquired the MATSA project in September 2021 in a “transformational” acquisition costing it US$1.865 billion.

The ASX 200 copper miner is now “focusing on further optimising and enhancing the MATSA operation”.

It is also preparing to deliver its new Motheo Copper Mine in Botswana, with commissioning expected in the June quarter of 2023.

Sandfire Resources share price snapshot

Sandfire is having a great week, with its share price up 16% since Monday.

The rising copper price has likely contributed to the share price bump. Copper hit a four-month high today of $3.72 per pound.

The copper price is up 7% over the past week but down 15% year over year, according to Trading Economics data.

Shares in the ASX 200 copper miner are down 38% in the year to date.

This is an underwhelming performance against the S&P/ASX 300 Metal & Mining Index (ASX: XMM), which is down 2% over the same period.

The post This ASX 200 copper miner has just snagged an ex-BHP and South32 exec as CEO, and its shares leapt 5% 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

• Here are the top 10 ASX 200 shares today
• Why Lycopodium, Origin, Perpetual, and Sandfire shares are charging higher
• 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

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton 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/xbUEmTL

The S&P/ASX 200 Index (ASX: XJO) broke its winning streak on Thursday. The index closed 0.5% lower at 6,964 points.

That was despite a roaring performance from the S&P/ASX 200 Utilities Index (ASX: XUJ).

The three-stock-strong sector posted a 13.5% gain today as the Origin Energy Ltd (ASX: ORG) share price rocketed on news the company’s board was likely to accept a proposed takeover bid.

Unfortunately, the sector’s gain wasn’t enough to offset losses in other major categories.

The S&P/ASX 200 Energy Index (ASX: XEJ), for instance, lost 2% as oil prices slipped once more.

The Brent crude oil price fell 2.8% to US$92.65 a barrel overnight while the US Nymex crude oil price slipped 3.5% to US$85.83 a barrel.

The S&P/ASX 200 Materials Index (ASX: XMJ) also fell 1.2% on Thursday, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) slumped 1.9%.

All in all, five of the ASX 200’s 11 sectors posted gains today. But which ASX 200 share outperformed all others to take out today’s top spot? Keep reading to find out.

Top 10 ASX 200 shares countdown

It likely comes as no surprise that today’s biggest gain was posted by the Origin share price.

The energy giant’s stock launched 35% after its board revealed it would accept a proposed $9 per share bid put forward by Brookfield Asset Management and MidOcean Energy.

The consortium has been granted due diligence in hopes it will follow its proposal with a binding acquisition offer.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Origin Energy Ltd (ASX: ORG)	$7.83	34.77%
Perpetual Limited (ASX: PPT)	$33.40	14.82%
News Corp (ASX: NWS)	$25.05	8.72%
Sandfire Resources Ltd (ASX: SFR)	$4.21	5.25%
Computershare Limited (ASX: CPU)	$27.07	4.12%
Evolution Mining Ltd (ASX: EVN)	$2.43	3.4%
Core Lithium Ltd (ASX: CXO)	$1.60	2.24%
De Grey Mining Limited (ASX: DEG)	$1.245	2.05%
HUB24 Ltd (ASX: HUB)	$24.91	1.92%
A2 Milk Company Ltd (ASX: A2M)	$5.83	1.75%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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

• This ASX 200 copper miner has just snagged an ex-BHP and South32 exec as CEO, and its shares leapt 5%
• Guess which ASX ETF is up 13% so far this week?
• Here are the 3 most traded ASX 200 shares on Thursday
• Why Lycopodium, Origin, Perpetual, and Sandfire shares are charging higher
• Can ASX 200 gold share Evolution Mining really surge another 30% on top of recent gains?

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 Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. 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/VzWn80S

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.

What happened

Shares of Amazon (NASDAQ: AMZN) took another step down today, even though there was no company-specific news about the tech giant. Instead, a broader sell-off seems to be weighing on the stock for two reasons.

First, fears of a recession are likely growing after Meta Platforms said it was laying off 13% of its staff. And second, a rout in the cryptocurrency market continued after FTX, one of the biggest exchanges, was on the verge of collapse after Binance backed out of a rescue deal.      

Amazon stock finished the day down 4.3%, while the Nasdaq lost 2.5%.

So what

While Amazon doesn’t have direct exposure to the layoffs at the Facebook parent or the collapse in the crypto market, it arguably has more exposure to consumer and business spending than any other company. It’s the second-largest U.S. company by revenue (behind Walmart), and much of its business depends on consumer discretionary spending and businesses spending on cloud infrastructure and advertising.

The company’s fourth-quarter guidance indicated significant headwinds from the macro environment, as guidance called for revenue growth of just 2%-8% in the fourth quarter. On the earnings call, CFO Brian Olsavsky noted caution in spending in both its e-commerce division and Amazon Web Services, the cloud infrastructure unit. 

After the latest quarterly update, the company looks vulnerable to a recession.

Now what

In addition to a slowdown to in the growth of the business, Amazon’s valuation also seems like a concern to investors at this point. The stock is still expensive according to traditional metrics, and only one of its three core business segments, AWS, is consistently profitable.

Though shares are now down more than 50% from last-year’s peak, they could fall further if the overall economic outlook continues to deteriorate.              

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

The post Why Amazon stock finished lower today 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

• Why Amazon stock dropped last week
• Should investors buy the dip on Amazon stock?
• Amazon is proving why it’s a Buffett stock
• Is Amazon stock a buy now?
• Why Amazon is plunging today

Jeremy Bowman has positions in Amazon and Meta Platforms, Inc. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Meta Platforms, Inc., and Walmart Inc. The Motley Fool Australia has recommended Amazon and Meta Platforms, Inc. 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/Egl8bDN

The S&P/ASX 200 Index (ASX: XJO) has had a pretty decent week so far, bar today’s miserly performance. Since the end of last week’s trading, the ASX 200 has gained a healthy 1% or so. So it may be surprising to find out that one ASX exchange-traded fund (ETF) has risen by a whopping 13% over the same period. That ETF is none other than the VanEck Gold Miners ETF (ASX: GDX).

This ETF from provider VanEck does what it suggests on the tin: invests in a portfolio of gold mining shares.

But not just ASX gold miners. Sure, you will find Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST), and some other ASX peers. But this fund holds gold miners from all around the world. More than 50% of its weighted portfolio is actually held in Canadian miners.

A further 20% hail from the United States. As such, it is other names like Newmont Corp, Barrick Gold, and Wheaton Precious Metals that dominate the VanEck Gold Miners ETF”s portfolio.

Overall, this ETF has 49 underlying holdings within it.

So why has the VanEck Gold Miners ETF had such a cracking week?

Why has the Vaneck Gold Miners ETF soared 13% this week?

Well, for an ETF to rise like this, its underlying companies usually have to be rising in value as well. And lo and behold, we see that Newmont, the fund’s largest holding, is up by 5.7% over the week so far. Barrick Gold is up around 8%, a similar amount to Evolution Mining Ltd (ASX: EVN). This is largely thanks to the price of gold itself appreciating over this period.

Further, since most of the VanEck Gold Miners ETF’s holdings are domiciled outside Australia, the value of the fund is also influenced by currency movements. Over the past week, we have also seen the Australian dollar drop against the US dollar. This would boost the returns of this ETF even further. That’s because most of the companies are priced in non-Australian dollar terms.

So all of these factors probably explain why the VanEck Gold Miners ETF has had such a stellar run this week. But despite this, the ETF remains down by around 5.6% this year to date.

The post Guess which ASX ETF is up 13% so far this week? 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 3 most traded ASX 200 shares on Thursday
• Can ASX 200 gold share Evolution Mining really surge another 30% on top of recent gains?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Wednesday

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining 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/E4RKW7A

1) Growth stocks have taken a pummeling these last 12 months, with seemingly no let-up in sight. As witnessed by the fall in the Xero Limited (ASX: XRO) share price today, a high-quality stock that was down 50% over the past 12 months (before today), can still tumble another 11%… and potentially more.

Xero reported revenue grew 31% over the past six months, but that translated into only an 11% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA). Free cash flow was just $NZ15.6 million as the company continues to reinvest to drive long-term shareholder value.

Problem is, when your market capitalisation is close to $10 billion, and in these times of higher interest rates when the market wants to see a decent level of cash generation, a few million dollars of free cash flow isn’t going to pass muster.

To some, Xero may offer value, given the lifetime value of a customer is around seven times its cost of acquisition. But it’s going to take a long time for the company to grow into its valuation, and in this market, patience is not a strong point. It will likely be many years before the Xero share price gets back to the heady days of $150.

2) If ASX growth shares are on the nose, value shares must be the way to go.

There’s no shortage of companies that look like great value, trading on single-digit earnings multiples and very attractive dividend yields.

Company	Price-to-earnings (P/E) ratio	Yield
BHP Group Ltd (ASX: BHP)	7.6	12.3%
Woodside Energy Group Ltd (ASX: WDS)	8.1	8.6%
Fortescue Metals Group Limited (ASX: FMG)	6.4	12.4%
JB Hi-Fi Limited (ASX: JBH)	10.2	7.3%
Magellan Financial Group Ltd (ASX: MFG)	6.4	18.5%
Codan Limited (ASX: CDA)	8.4	7.1%
Adairs Ltd (ASX: ADH)	9.7	8.0%

Data from S&P Capital IQ, P/E multiple based on last twelve months earnings. Dividend yield is historical, not forecast.

If only stock picking was this easy… 

Looking forward, each company has its challenges. When it comes to investing, there’s always a catch.

Commodity prices are hard to predict, and typically the time to buy mining stocks is at the bottom of the cycle, not near the top, as is the case now due to booming oil, iron ore and coal prices.

Retailers have some serious headwinds ahead as sharply higher interest rates start to put a bite on retail spending. As to what extent, we’re all just guessing at this stage.

By lengthening your time horizon, you put the odds more in your favour. 

Will JB Hi-Fi be generating higher profits in five years’ time than now? You’d imagine so, but how much higher? Only 20% higher translates into a less than 4% compound annual growth rate (CAGR). But 50% higher is a much more attractive 8.5% CAGR, with dividends on top. Any expansion in its earnings multiple would be jam on top of the cake.

Obviously, Magellan Financial Group will not be trading on a forecast dividend yield of anything like 18.5%. Its forward dividend yield could be closer to 0%. Will we look back five years from now at Magellan’s enterprise value of around $700 million versus its funds under management of $50 billion and think this is a value stock? Maybe.

3) Even legendary value investor Anton Tagliaferro is struggling to find obvious value.

Interviewed by Livewire Markets, the founder of Investors Mutual said with the recent stock market rally, it’s become more difficult to uncover the value gems.

Tagliaferro says Aurizon Holdings Ltd (ASX: AZJ) continues to impress, saying the rail haulage company has very stable revenues with long-term contracts. 

“Obviously, the coal sector’s doing very well, so its customers are doing very well, which helps when you’re negotiating prices. And Aurizon has a very good management team.”

While, on a trailing basis, not as cheap as the companies listed above, this ASX share trades on a modest 14.5 times earnings and a trailing franked dividend yield of 5.8%.

The post Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch… 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

• Don’t panic! Here are 7 reasons we can avoid a recession: AMP
• Why Block, Lake Resources, Pendal, and Xero shares are dropping today
• China’s property crash has decimated the iron ore price. So what’s the outlook for Rio Tinto shares?
• Own BHP shares? Here are key takeaways from the miner’s AGM
• Why is the Woodside share price being whittled away today?

Motley Fool contributor Bruce Jackson has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO and Xero. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and Xero. The Motley Fool Australia has recommended Aurizon Holdings Limited and JB Hi-Fi 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/9IQg3Aw

If you have room for some new investments, then you might want to consider the two ASX 200 shares listed below.

Both are rated highly by one of Australia’s leading brokers, Morgans.  Here’s why its analysts are bullish on these ASX 200 shares:

IDP Education Ltd (ASX: IEL)

The first ASX 200 share that Morgans is a fan of is this student placement and language testing company.

With its shares down 18% since the start of the year, the broker believes they are trading at a very attractive level for investors. Particularly given its belief that IDP will grow its earnings per share by a compound annual growth rate (CAGR) of 38.2% over the next two years. It commented:

IEL’s recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage and acquisitions (especially IELTs distribution) can see IEL compound growth long-term. Value has emerged, however IEL’s near-term multiples see the stock susceptible to short-term volatility.

Morgans currently has IDP Education on its best ideas list for November with a $31.10 price target.

Pro Medicus Limited (ASX: PME)

Another ASX 200 share that the broker has on its best ideas list is this health imaging technology company.

The broker likes Pro Medicus due to the quality of its offering and favourable long term industry tailwinds. Like IDP, Morgans is expecting this to drive very strong earnings growth (CAGR of 23.8%) over the next two financial years. It commented:

We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world’s largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term. We view the business as best-in-class as it heads into CY22 with a step-change in billable contracts following the significant volume and value of contracts signed over the last 12-18 months. The recent market weakness in high growth tech names has provided an opportunity for reasonable entry points.

Morgans has an add rating and $58.18 price target on the company’s shares.

The post Morgans names 2 fast-growing ASX 200 shares to buy now 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 2 of the best ASX growth shares to buy: Morgans
• US$10 billion was just wiped from the value of Atlassian. How are ASX 200 tech shares responding?
• Leading fund manager names the 3 ASX stocks that drove its returns higher in October
• Two 5-bagger health tech ASX shares ready to rocket again: expert
• WAM visited 150 companies in October. Here are 5 ASX shares they are super positive on right now

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 Idp Education Pty Ltd and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. 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/9iZ6QYl

The Hawsons Iron Ltd (ASX: HIO) share price is slipping on Thursday, down 9.09% to 10 cents per share in afternoon trading

Today’s movement brings further pain to shareholders, who have had to endure a 74% decline in the Hawsons Iron share price over the past month alone.

What’s whacking the Hawsons Iron share price today?

The answer is likely to be the same issue whacking the major ASX iron ore shares today: China.

There’s no price-sensitive news out of the small-cap miner today. However, it did lodge its presentation from the Noosa Mining Investor Conference with the ASX for shareholders to review.

The bigger issue for the iron ore miner today is the ongoing discussion about China’s economic slowdown.

As we reported earlier, China’s property sector has been decimated. This had led to lower construction activity and demand for steel, which has lowered the demand for Australian iron ore.

China’s economy is also slowing because lockdowns enforced under the COVID-zero policy are disrupting industrial activity.

Over the past 18 months, this has led to a dramatic fall in the price of iron ore.

According to the Australian Financial Review (AFR), Reserve Bank deputy governor Michele Bullock says these two issues are among the bank’s top concerns for the health of the Australian economy.

What’s going on with the iron ore price?

Iron ore has gone from a record-high price of about US$240 per tonne in May 2021 to US$91.50 per tonne today.

That directly affects the earnings of every Australian iron ore business, regardless of whether they export to China specifically.

Today, Rio Tinto Limited (ASX: RIO) shares are down 0.4% to $98.21. BHP Group Ltd (ASX: BHP) shares are down 1% to $40.75. The Fortescue Metals Group Limited (ASX: FMG) share price is down 1.6% to $16.85.

Michael Slack of MCA writes on Livewire that the iron ore price could go down further due to an impending oversupply. As a result, his fund is underweight on iron ore companies.

Slack said:

Looking forward, we see growth in iron ore supply, particularly out of Australia, Brazil and Africa, exceeding growth in Chinese demand thereby pushing the iron ore market into surplus and impacting price.

If China continues along this path and allows the property sector to wallow, iron ore pricing and resource companies may suffer along with it.

Why has the Hawsons Iron share price lost 80%?

Hawsons Iron’s woes don’t just stop at the falling value of iron ore.

Some company-specific things are going on that have caused a massive drop in the share price.

As my Fool colleague Brooke reported, Hawsons announced it was pressing the pause button on its flagship project last month.

The need to preserve cash forced the decision to slow activity on the Hawson Iron Project’s bankable feasibility study (BFS).

Shareholders had a negative reaction. In fact, they went crazy. The share price tanked 62% on the day of the news and it hasn’t recovered since.

Prior to the announcement, Hawsons Iron had been one of the success stories of the S&P/ASX All Ordinaries Index (ASX: XAO) in 2022.

While most ASX shares had been falling this year, the Hawsons Iron share price had gone up 118% before the fateful news.

At today’s Noosa Mining Conference, managing director Bryan Granzien said Hawsons had a “world-class resource” project. It is located in the Braemar iron region about 60km southwest of Broken Hill.

He reminded investors that it has a current JORC 2012 Resource of 3.9 billion tonnes at 12.3 DTR% for 481 Mt of concentrate. Hawsons also has a trademarked ‘Supergrade’ iron ore product with 70% Fe.

The post Why is the Hawsons Iron share price tanking 9% today? 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

• China’s property crash has decimated the iron ore price. So what’s the outlook for Rio Tinto shares?
• Own BHP shares? Here are key takeaways from the miner’s AGM
• The Fortescue share price has leapt 17% in November. Here’s why it may not last
• Why is the Fortescue share price bolting out of the gate on Wednesday?
• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals 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/zTn3eaI

The S&P/ASX 200 Index (ASX: XJO) seems to be on the cusp of giving up its recent winning streak, and is suffering a mild fall today thus far. At the time of writing, the ASX 200 has suffered a loss of 0.47% and is back down to around 6,970 points.

But rather than dwelling on all that, let’s instead take a deeper look into these falls by checking out the ASX 200 shares that are topping the market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Evolution Mining Ltd (ASX: EVN)

First up today is ASX 200 gold share Evolution. Evolution Mining has seen a sizable 16.43 million of its shares exchanged on the ASX so far this Thursday.

There’s been no news out of Evolution today. So the likely cause of this trading volume is the pleasing share price gains that Evolution shares are enjoying. The gold miner is currently up by a healthy 3.83% at $2.44 after gold prices rose overnight.

Core Lithium Ltd (ASX: CXO)

Our next ASX 200 share today is the lithium producer Core Lithium. This Thursday has seen a notable 17.27 million Core shares swapped at present. With no news out from this company either, we can again assume that it is the Core Lithium share price that is responsible for these volumes.

Core Lithium has indeed had a bumpy day. The lithium share started the trading session deep in the red, but has steadily recovered to put it at $1.59 a share at present, up 1.73% for the session.

Origin Energy Ltd (ASX: ORG)

Last but certainly not least today, we have ASX 200 energy utility share Origin Energy. Origin has had a hefty 39.89 million shares change owners thus far today. This is almost certainly the result of the seismic share price movement we have witnessed today.

At present, Origin shares are up a whopping 35.28% at $7.86 each. As we covered earlier, this comes after the company received a takeover offer at $9 a share from Brookfield Asset Management and MidOcean Energy. No wonder so many shares are flying around.

The post Here are the 3 most traded ASX 200 shares 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Lycopodium, Origin, Perpetual, and Sandfire shares are charging higher
• Can ASX 200 gold share Evolution Mining really surge another 30% on top of recent gains?
• Are ASX 200 lithium shares the new recession-proof investment?
• 3 ASX 200 shares shooting the lights out on Thursday
• Why are CBA shares so high right now?

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/AkpFPZB

It has been a rough year for the ASX share market, though AMP Ltd (ASX: AMP) shares have been one of the few to rise strongly, up by more than 20%.

The global economy is going through a difficult time with inflation, higher interest rates, challenging changes in foreign currency markets and expectations of a slowing of growth.

Australia may seem to face a tricky situation. Households are being slugged with much higher loan repayments and a number of commodity prices have fallen, including the iron ore price with Chinese demand reducing.

But, it’s not all doom and gloom. Shane Oliver, an expert from AMP, shares his view about why things may not be too bad.

Solid business investment outlook

He pointed to ongoing strong business investment plans.

Oliver said that ‘real’ business investment is expected to grow by around 5% over the year ahead, with the Australian Bureau of Statistics capital spending intentions survey showing a 15% increase compared to a year ago.

Home building work pipeline

Construction is an important part of the Australian economy. While approvals to build new homes have fallen “about 25%”, he noted that there is still a large pipeline of work yet to be completed “with home completions yet to catch up” with the surge in approvals through COVID-19.

This will “likely provide a floor for home building”, preventing a plunge.

National income boost from energy

Energy prices are one of the biggest causes of inflation in the country, but this is actually helping national income thanks to the earnings of energy ASX shares and other energy companies. We’ve seen the profits of Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) soar.

This helped the budget deficit by $48 billion in the last financial year and is expected to help by $42 billion in this financial year, giving the Australian government more financial flexibility.

Slower RBA increases

The latest increase in the cash target rate was 0.25%, even though there were a number of voices calling for a 0.50% increase.

Oliver noted that the RBA will do what it takes to return inflation back to normal, “while keeping the economy on an even keel”. This 0.25% increase could strike “the right balance between doing too much and too little”.

It could be worth pointing out that a number of ASX financial shares have done well in recent weeks. AMP shares are up more than 10%, Commonwealth Bank of Australia (ASX: CBA) shares are also up more than 10% while Westpac Banking Corp (ASX: WBC) shares are up around 10%.

Potential for lower Aussie dollar

The Australian dollar has already fallen against the US dollar this year. However, if the prices decline for the commodities that Australia exports, then this could lead to further falls for the Australian dollar.

Why would that be a good thing for the Australian economy? Oliver suggests that this would make the exports more competitively priced, as it did in the GFC.

He also pointed out that the Chinese zero COVID policy could be lifted, a positive example being the relaxation of PCR test requirements in some regions. An end to the zero COVID policy “could result in a sharp rebound in Chinese growth” which could then boost global growth and Australian growth.

Rebound of immigration

Now that Australia’s border is open again, the federal budget is expecting net immigration of 235,000, after negative net immigration in FY21.

Immigration, according to Oliver, will “help ease the labour shortage and tight jobs market… Which in turn will help head off a surge in wages growth to levels well beyond those consistent with the inflation target.”

Comparatively less inflation

On this point, Oliver made the point that if the Australian economy remains resilient, the RBA may need to increase interest rates even more to slow demand.

But, he believes that the RBA won’t need to increase the interest rate too much more for a few different reasons.

Oliver pointed out that Australian wages are not growing like they are in other countries, energy prices have not gone up as much as in Europe, inflation expectations remain relatively low, other central banks are doing some of the heavy lifting, and US price pressures are starting to slow which “should benefit Australia which is following US inflation with a six-month lag”.

Slower interest rate increases and a lower peak would probably help AMP shares, and plenty of other valuations, thanks to less damage being done to household budgets and less pressure on share prices. In theory, higher interest rates are meant to push down the value of assets because investors can get a higher risk-free rate of return from government bonds.

The post Don’t panic! Here are 7 reasons we can avoid a recession: AMP 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 Woodside share price being whittled away today?
• Why are CBA shares so high right now?
• Worried about your income in retirement? Take a look at these 3 ASX 200 dividend shares
• ASX 200 bank shares: Buy, hold, or fold?
• 5 things to watch on the ASX 200 on Thursday

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 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/Tm0MqkO