Tag: Motley Fool

Yesterday we posed the question, “Is the blistering rally in S&P/ASX 200 Index (ASX: XJO) bank shares overdone?”

Today we have our answer.

It’s not.

At least, not yet.

The big four bank stocks have been on fire over the past half year.

And despite a growing chorus of financial analysts concerned with valuations and cautioning that the rally is getting ahead of itself, all the big four banks are in the green again today.

In fact, all four are notching fresh 52-week highs.

Here’s how the big four ASX 200 bank shares are tracking at the time of writing today and over the past six months:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are up 0.3% today and up 17.1% in six months at $29.12
• National Australia Bank Ltd (ASX: NAB) shares are up 0.7% today and up 20.3% in six month at $37.45
• Westpac Banking Corp (ASX: WBC) shares are up 0.3% today and up 27.9% in six months at $27.01
• Commonwealth Bank of Australia (ASX: CBA) shares are up 0.8% today and up 18.2% in six months at $119.23

For some context the ASX 200 is up 0.3% today and has gained 8.2% over six months.

And it’s not just the big banks themselves posting new highs.

The VanEck Vectors Australian Banks ETF (ASX: MVB) is up 0.7% today. That sees the exchange-traded fund (ETF) up 18.7% in six months and trading at a fresh all-time high.

MVB is exclusively invested in Aussie banks.

Atop the big four ASX 200 bank shares, it holds Macquarie Group Ltd (ASX: MQG), Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ).

And yes, all three of these bank stocks are also marching higher today!

What’s sending ASX 200 bank shares to new highs?

Atop the broader market strength today, investors are upping their bets on interest rate cuts from the Reserve Bank of Australia (RBA) following yesterday’s weak economic growth figures.

Data from the ABS indicated Australia’s GDP grew by 0.2% in the fourth quarter of 2023 and 1.5% over the full year. And that tepid growth only came thanks to the supersized immigration intake driving a rapid population increase. Per capita GDP actually declined 1.0% from 2022.

That could bolster the case for earlier rate cuts, which could in turn help ASX 200 bank shares boost their earnings if they opt not to pass those full cuts on to borrowers.

The Aussie banks also look to be catching some tailwinds out of the United States.

Yesterday, US Federal Reserve chair Jerome Powell remained cagey on just when the world’s top central bank will begin easing.

But he excited investors when he said (quoted by Reuters), “We expect inflation to come down, the economy to keep growing. If that’s the case, it will be appropriate for interest rates to come down significantly over the coming years.

Separately, Powell fuelled exuberance for US bank stocks, and potentially ASX 200 bank shares, when he indicated that existing plans to make US banks hold more capital were likely to be scaled back.

As you’d expect, this came as welcome news to the US banking industry, which believes it is already sufficiently capitalised to withstand any potential financial shocks.

The post Why are the big 4 ASX 200 bank shares leaping to new 52-week highs today appeared first on The Motley Fool Australia.

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More reading

• CBA share price marching higher amid ‘difficult news’
• Buy these ASX dividend stocks with yields of 5% to 7.5%
• How investing $100 per week can create $2,000 in annual ASX dividend income
• Is the blistering rally in ASX 200 bank shares overdone?
• ANZ shares push higher amid asset sale and dividend bump hopes

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Building a sturdy investment portfolio capable of compounding doesn’t need to be an exhaustive exercise. Some will draw upon an endless list of complex, jargon-filled metrics to analyse ASX stocks.

Yet, the stock-picking process can be far more straightforward and intuitive by checking a handful of basic features of a business. I firmly believe in the Pareto Principle, which asserts that 80% of the output comes from 20% of the input. In the investing context, if you can focus on that critical 20%, deciding which shares to buy becomes far less cumbersome.

From my experience, here are six of the most influential criteria for deciding which stocks to buy.

Selecting outstanding ASX stocks

1) Natural attraction

The first trait I look for in a company is an organic demand for its products or services — bonus points if its customers are fanatical. This is usually a good sign that what is being sold is valuable and desired by people.

Additionally, the more ‘natural attraction’ there is, the less artificial interest needs to be generated. This translates to reduced spend on marketing and advertising, leading to better margins for the company.

An example of this is Tesla Inc (NASDAQ: TSLA). With an almost cult-like following, the electric vehicle maker barely advertisers, yet still sells over a million cars.

2) Margin monster

I will usually look for ASX stocks touting high margins. This is partially related to the above point on organic demand but might also arise from competitive advantages.

Whether it be brand power, scale benefits, network effects, etc. A high margin is a marker of a moat being present. Moats — and their associated high margins — are wonderful for investors because they often provide above-average returns over the long run.

For instance, CAR Group Limited (ASX: CAR) — the owner of digital marketplace Carsales — routinely achieves net margins above 30%. This is arguably a byproduct of its market leadership and inherent network effect.

3) Fortified foundations

The next feature I look for in an ASX stock before I buy is a rock-solid base business.

I don’t want to invest a large sum of money into a company that is ‘still trying to figure things out’. In my eyes, this presents an enormous risk if it doesn’t all come together as planned.

The legendary value investor, Benjamin Graham, coined the term ‘margin of safety’ in the 1930s. There is little in the way of a margin of safety when a company has yet to prove its core offering. And if history has shown anything, you don’t need to invest in the most speculative pockets to achieve monumental returns.

4) Optionality

A valuable trait for an investment is optionality. A business with multiple avenues in its future can reduce the risk of stagnation and obsolescence.

Apple Inc (NASDAQ: AAPL) is a great example of a company that expanded upon its core business. For a long time, Apple solely made and sold computers. However, the skills and expertise housed within were translatable to other tech devices, which soon became the iPhone, the iPad, the Apple Watch, etc.

5) Alignment

The people behind an ASX stock is critical. A company is only as good as the people running it. So it goes without saying that its important those people are incentivised to make good decisions.

Share ownership among management and key personnel is a simple way to link the two. In contrast, a salary doesn’t offer the same level of alignment with shareholders.

A CEO can collect a large pay packet regardless of their performance. Whereas, remuneration tied to the company’s shares means there’s a clear incentive to deliver shareholder returns. For this reason, I will usually scout out companies with high insider ownership.

6) Appealing price

It might be last on the list, but it’s no less important than the rest. Paying a reasonable price for an investment is always a factor in buying shares. That doesn’t mean necessarily turning my nose up at anything with a price-to-earnings (P/E) ratio above 30.

As the famed Warren Buffett has quipped, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” An investor can be much more lenient on the price for a slice of an exceptionally high-quality business.

On the flip side, there’s almost no price cheap enough for a terrible company.

The post How to choose ASX stocks: 6 simple traits I look for before I buy appeared first on The Motley Fool Australia.

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More reading

• Why Life360, Evolution Mining, Magnetic Mining, and Zip shares are rising today
• 3 things about Wesfarmers stock every smart ASX investor knows
• The Betashares Crypto Innovators ETF (CRYP) is up 37% in a month. Is it too late to buy?
• Bell Potter says these ASX 200 stocks are strong buys for March
• Guess which ASX healthcare stock is rocketing 97% on big FDA news

Motley Fool contributor Mitchell Lawler has positions in Apple and Tesla and has the following options: long June 2025 $510 calls on Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Tesla. The Motley Fool Australia has recommended Apple and Car Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.3% to 7,755.8 points.

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

Life360 Inc (ASX: 360)

The Life360 share price is up 4.5% to $11.89. Investors have been buying this location technology company’s shares this week after brokers responded positively to its FY 2023 results release. For example, Goldman Sachs reiterated its buy rating with an improved price target of $14.20. This implies further upside of almost 20%.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 2% to $3.27. Investors have been buying Evolution and other ASX gold shares again today after the price of the precious metal hit a new record high. Traders were bidding the gold price higher overnight on rate cut optimism. In other news, the gold miner reported some insider buying this morning.

Magnetic Resources NL (ASX: MAU)

The Magnetic Resources share price is up 12% to $1.09. This follows the release of the pre-feasibility study of the 100% owned Lady Julie Gold Project in Western Australia. The study confirms that Lady Julie is a financially robust project with low-cost, high margin gold production of 720,000 ounces over a nine-year life of mine.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 10% to $1.29. Investors have been buying this payments company’s shares after it was the subject of a bullish broker note out of UBS. According to the note, the broker has upgraded Zip’s shares to a buy rating with a $1.43 price target. UBS has been impressed with the company’s performance in the US. Its previous rating was neutral with a lowly 36 cents price target.

The post Why Life360, Evolution Mining, Magnetic Mining, and Zip shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Zip share price up 58% in 7 trading days! What’s going on?
• Why DroneShield, Magellan, Platinum, and Zip shares are rising today
• Is it too late to join the booming ASX gold rush?
• 5 things to watch on the ASX 200 on Wednesday
• The gold price just reached its highest level ever: Which miners are buys?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Wesfarmers Ltd (ASX: WES) stock is one of the most appealing blue-chip options in my opinion. There are a few key reasons why I like it so much.

The company owns a number of businesses including Bunnings, Kmart, Officeworks, Target, Priceline, Instantscripts, Silk Laser Australia and many more.

But, it’s not just a collection of businesses that are delivering shareholder returns by luck. There are some great underlying factors.

Strong returns on investment

Wesfarmers has been operating for many decades. Every year it has to make a choice about what it wants to put its money toward within its businesses to try to maintain and grow its market position and improve its customer offering.

Making good choices has enabled Wesfarmers to build very impressive businesses.

Wesfarmers is able to tell us how much profit it’s making on money invested in each business with the return on capital (ROC) metric and it says how much profit it makes on retained shareholder money with the return on equity (ROE) metric.

In the FY24 first-half result, it reported a ROC of 65.8% for Bunnings and 58.8% for Kmart Group. These are great numbers, they show strong performance and quality while also indicating how profitable additional investments could be in the future.

Wesfarmers, as a whole, reported a ROE of 31.4% for the HY24 result. That’s a big underlying driver of Wesfarmers stock. If it can keep re-investing at that rate of return ,the future is very bright.

Ongoing diversification

Wesfarmers is making significant progress on diversifying its revenue away from Australian retailers.

Its (Kmart) Anko products are being sold in Canada, and it wants to expand in the US and Asia.

It’s making acquisitions in the healthcare space, which is exposed to ageing tailwinds.

Wesfarmers is working on a lithium project called Mt Holland, which gives it exposure to the global decarbonisation efforts.

I like that Wesfarmers can invest in whatever sector it wants to where it sees an opportunity.

Impressive goals

Wesfarmers has a key goal of delivering “a satisfactory return to shareholders”. It defines ‘satisfactory’ as being in the top quartile of total shareholder return (TSR) over the long-term. In other words, it wants to be within the top 25% performers of ASX shares.

It wants to grow the dividend for shareholders, assuming the profit, cash flow and balance sheet allows.

Wesfarmers stock is usually on target with those objectives, but it’s not guaranteed of course.

The post 3 things about Wesfarmers stock every smart ASX investor knows appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares to buy for an effortless path to financial freedom
• 3 ASX 200 shares I think could grow to be bigger than BHP one day
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock
• 5 ASX 200 shares that boosted their dividends this earnings season

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The rise of the BetaShares Crypto Innovators ETF (ASX: CRYP) over the past few months has been nothing short of extraordinary.

Almost a year ago, this exchange-traded fund (ETF) was going for just $1.80 per unit. But today, those same units are being priced at $4.87 at the time of writing. Not only is that a 1.25% gain for the trading day thus far, but it also puts CRYP units up by approximately 170% since that last 52-week low of $1.80.

This cryptocurrency-focused ETF has also gained 37.2% over the past month alone. That’s an extraordinary return for any investment over just a few weeks.

Looking at gains like this, it’s hard not to feel just a little envious.

But should investors hold back from this ETF today, given the massive increase that’s already taken place in this space? After all, it’s not too often that we see such a strident march up in value for an ASX ETF.

Or does the BetaShares Crypto Innovators ETF remain a buy today?

Well, to answer those questions, let’s look at why this ETF has shot the moon in recent months.

What’s behind the Crypto Innovators ETF’s extraordinary performance?

The Betashares Crypto Innovators ETF doesn’t invest in cryptocurrencies like Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) itself. So don’t think you are gaining exposure to these digital tokens directly by buying this ASX ETF.

However, CRYP does give ASX investors access to a portfolio of companies that are all involved with the production and use of cryptocurrencies.

Some of its top holdings include Coinbase Global Inc (NASDAQ: COIN), MicroStrategy Inc (NASDAQ: MSTR) and Marathon Digital Holdings Inc (NASDAQ: MARA).

Cryptocurrency enthusiasts, and most ASX investors for that matter, would be aware that digital tokens like Bitcoin and Ethereum have been surging in value in recent months.

Bitcoin itself is up almost 50% over the past month alone and has recently exceeded its 2021 all-time highs. One Bitcoin is now worth more than $100,000 in our local currency, and more than US$66,000.

So although CRYP’s ASX units don’t benefit directly from these price rises, it does benefit indirectly as investors push up the value of stocks like cryptocurrency exchange platform Coinbase, and crypto miner Marathon Digital Holdings.

Coinbase stock is up almost 200% over the past six months alone, while Marathon has gained more than 83%.

So with its top holdings rocketing in value like this, it’s no surprise to see the Betashares Crypto Innovators ETF soar to new heights.

Is there still time to buy CRYP units on the ASX?

Well, that’s the $100,000 question. If you believe cryptocurrencies like Bitcoin have further to climb, then perhaps you’d be justified with an investment in this ASX ETF right now.

For all I, or anyone else knows, Bitcoin could continue to surge, which would, in all likelihood, make today to be a great time to buy the Crypto Innovators ETF.

However, I am personally staying on the sidelines. Looking at Bitcoin and other cryptocurrencies’ history, it’s pretty obvious that this space is highly volatile. We’ve seen massive price upswings before, but these have usually been followed by an equally massive sell off.

I’m not prepared to bet that this time will be any different. The best time to buy a cyclical ETF like CRYP is when other investors don’t want a bar of it (12 months ago for example). Not when everyone is throwing money at it.

I could be wrong here. But it’s a call I’m happy to make.

The post The Betashares Crypto Innovators ETF (CRYP) is up 37% in a month. Is it too late to buy? appeared first on The Motley Fool Australia.

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More reading

• 4 hot ASX ETFs smashing all-time highs on Thursday
• Here are 3 exciting ASX tech ETFs to buy right now

Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Coinbase Global, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betashares Crypto Innovators ETF, Bitcoin, Coinbase Global, and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you have room in your portfolio for some new additions in March, then it could be worth checking out the ASX 200 stocks listed below.

They have just been named as “preferred” picks by the team at Bell Potter. Here’s what the broker is saying about them:

Coles Group Ltd (ASX: COL)

A new addition to its preferred picks list is supermarket giant Coles.

The broker was impressed with Coles’ stronger than expected first-half profit and sees plenty of opportunities for management to improve profitability further. It said:

We add Coles to our preferred stock panels following its 1H24 financial result where Coles reported 1H24 EBIT of $1,064 million, ~5% ahead of our estimates and consensus. Management has multiple levers to profit improvement including: 1) Private label positioning attracting price conscious consumers, 2) further reductions in theft rates through technology and operational improvements, 3) growing Coles 360 media income off a low base, and 4) productivity improvements enabled by investments in Witron automated DCs etc. Coles remains our preferred Supermarket with our FY25 forecasts ~5% above consensus.

Bell Potter has a buy rating and $19.00 price target on the company’s shares.

Transurban Group (ASX: TCL)

Another ASX 200 stock that has been named as a strong buy by analysts at Bell Potter is toll road operator Transurban.

Bell Potter believes it is well-positioned for low-risk growth thanks to its inflation-linked revenue stream. It said:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group’s current pipeline of growth projects is $3.3 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

The broker has a buy rating and $15.60 price target on Transurban’s shares.

The post Bell Potter says these ASX 200 stocks are strong buys for March appeared first on The Motley Fool Australia.

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More reading

• 2 buy-rated ASX dividend stocks for income investors in March
• 2 ASX 200 dividend shares that could be strong buys this month
• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• How is the Coles share price down 3% today?
• 3 all-star ASX dividend stocks I’d own in retirement to combat falling interest rates

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

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A little-known ASX healthcare stock is setting the bar sky-high today.

In morning trade on Thursday, the All Ordinaries Index (ASX: XAO) is up 0.2%, while shares in this biopharmaceutical company just rocketed 96.9% to 13 cents apiece.

The ASX healthcare stock closed on Monday trading for 6.6 cents. Shares entered a trading halt on Tuesday and Wednesday ahead of today’s big United States Food and Drug Administration (FDA) announcement.

Any guesses?

If you said Immuron Ltd (ASX: IMC), give yourself a virtual gold star.

Here’s what’s got ASX investors excited today.

Why are ASX investors sending the Immuron share price soaring?

Investors are bidding up the ASX healthcare stock after the company reported it was proceeding to a Phase 3 registration strategy with the US FDA for its patented Travelan drug.

Travelan will be the first product developed with Immuron’s platform technology to proceed into Phase 3 clinical trials.

This comes after interim clinical results confirmed that a single daily dose of Travelan was effective in preventing moderate to severe diarrhea after subjects were exposed to enterotoxigenic Escherichia coli (ETEC).

The company designed the Phase 2 study to compare the preventative effects of one dose per day relative to the standard recommended three daily doses.

In January 2022, the US Department of Defense awarded the ASX healthcare stock $4.8 million to assist with evaluating a dosing regimen best suited to US troops deployed in developing countries.

The company said the latest interim analysis summarised the completed data for 60 subjects of the current clinical study. Management expects the final clinical study report will be completed in the second half of 2024.

Immuron said it is exploring non-dilutive funding opportunities for its Phase 3 clinical trial.

How has the ASX healthcare stock been tracking longer-term?

Immuron shares are often thinly traded. And they frequently see some sizeable moves higher or lower following price-sensitive news.

With today’s big intraday gains factored in, the ASX healthcare stock is up 62.5% in 12 months.

The post Guess which ASX healthcare stock is rocketing 97% on big FDA news appeared first on The Motley Fool Australia.

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More reading

• Bell Potter says these ASX 200 stocks are strong buys for March
• Zip share price up 58% in 7 trading days! What’s going on?
• CBA share price marching higher amid ‘difficult news’
• Up 90% in a year, why is this ASX 300 uranium stock suddenly halted?
• Why is the Rio Tinto share price tumbling into the red?

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.

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The Zip Co Ltd (ASX: ZIP) share price is having another positive session.

In morning trade, the buy now pay later (BNPL) provider’s shares are up almost 8% to $1.26.

This latest gain means that Zip’s shares are now up 58% in the space of almost a week.

Why is the Zip share price taking off?

Investors have been scrambling to buy the company’s shares since the day after the release of its results last week.

As reminder, Zip reported a 28.9% increase in revenue to $430 million and group cash EBTDA of $30.8 million. The latter was up from negative $33.2 million a year earlier.

The initial market reaction to the results was poor, with the Zip share price tumbling deep into the red on the day. But from the following day, its shares have not looked back.

This may have been driven partly by a broker note out of Ord Minnett, which praised the result and labelled Zip’s shares as a buy with an improved price target of $1.08.

What about today’s gain?

Today’s gain appears to have been driven by an even more bullish broker.

According to a note out of UBS, its analysts have upgraded the company’s shares to a buy rating and lifted their price target to $1.43 from a lowly 36 cents.

Based on the current Zip share price, this implies potential upside of almost 14% for investors.

UBS has been impressed with Zip’s improving profitability and user growth in the key United States market. Particularly given that the latter has been achieved while keeping its bad debts below its target rate.

And with the broker believing that margins can improve from cost control efforts and new product launches, it is feeling very positive on the company’s outlook.

The post Zip share price up 58% in 7 trading days! What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Why DroneShield, Magellan, Platinum, and Zip shares are rising today
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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 Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price is in the green today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $118.31. In morning trade on Thursday, shares are changing hands for $118.82 apiece, up 0.43%.

For some context, the ASX 200 is up 0.22% at this same time.

This comes amid some “difficult” news from CommBank.

What’s happening with CommBank?

The CBA share price is in the green this morning after its Western Australian subsidiary, Bankwest, announced it will transition to a digital bank in 2024.

Bankwest traces its history all the way back to 1895. It was acquired by CBA 16 years ago.

The digital shakeup will see 45 Bankwest branches shuttered by October 2024. Fifteen additional regional Bankwest centres will be converted to CBA branches. Management expects that to be complete by the end of 2024.

CBA noted that 97% of all Bankwest transactions are already completed digitally. But that doesn’t mean the transition will be painless for everyone.

“I understand this will be difficult news for some of our customers,” Bankwest executive general manager Jason Chan said.

He said the bank was introducing “a range of support measures to help our customers who are regular branch users carefully through this transition”.

CBA doesn’t expect the digital transformation to result in any job losses.

According to Chan:

Our branch colleagues have invaluable knowledge and experience, and they will all be offered opportunities to access the next generation of banking jobs so they can continue to support customers nationwide from in their own communities.

CommBank is hoping the transformation will cut its overall costs. This could help support profit margins and the CBA share price amid stiff ongoing competition in the lucrative Aussie mortgage markets.

As for Bankwest, Chan said it was here to stay.

“Bankwest is now 129 years old, and we’ll continue to evolve in the years to come to ensure we remain a sustainable, growing, and successful WA-based business, and a major WA employer, in a highly competitive national banking sector,” he said.

CBA share price snapshot

The CBA share price has been a very strong performer over the past year.

Shares in the ASX 200 bank stock are up 19% over 12 months, almost four times the gains posted by the benchmark index.

The post CBA share price marching higher amid ‘difficult news’ appeared first on The Motley Fool Australia.

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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.

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Deep Yellow Limited (ASX: DYL) shares have been exceptionally strong performers over the last 12 months.

During this time, the ASX 300 uranium stock has raced 90% higher.

To put that into context, if you had invested $20,000 a year ago, you would now have $38,000.

During this time, despite rampant media speculation, the uranium developer resisted temptation to raise funds.

Until now.

ASX 300 uranium stock to raise funds

This morning, Deep Yellow requested a trading halt. Its request states:

Deep Yellow is in the process of finalising arrangements in relation to a capital raising. Deep Yellow anticipates that the trading halt will be required until the earlier of the commencement of trading on Monday, 11 March 2024 or the release of an announcement by the Company regarding a capital raising.

What is the company raising?

As things stand, the ASX 300 uranium stock has not released to the market what it is seeking to raise or why it is raising funds.

However, the AFR is reporting that the company is seeking to raise a massive $250 million from investors. This comprises a $220 million institutional placement and a $30 million share purchase plan for retail shareholders. Though, Deep Yellow will reportedly need shareholder approval for some of its institutional placement.

According to the report, Deep Yellow is seeking to raise the funds from institutional investors at $1.225 per new share.

While this represents a modest discount of 3.5% to the prevailing share price, it is a 25% discount to where its shares were trading just a month ago. So, shareholders may be a touch disappointed with the timing.

The funds are expected to be used to support the development of Deep Yellow’s Tumas project in Namibia. The company is targeting 3.75 million pounds of annual uranium production from Tumas, putting it in a strong position to benefit from sky-high prices.

The post Up 90% in a year, why is this ASX 300 uranium stock suddenly halted? appeared first on The Motley Fool Australia.

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More reading

• What Dutton’s nuclear push could mean for ASX uranium shares
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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.

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