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  • Why Cogstate, Mayne Pharma, Race Oncology, and Whitehaven Coal are charging higher

    A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.

    A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.

    The S&P/ASX 200 Index (ASX: XJO) has resumed its downward trend on Wednesday. In afternoon trade, the benchmark index is down 0.8% to 6,442.4 points.

    Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

    CogState Limited (ASX: CGS)

    The CogState share price was up 51% to $2.12 before being paused from trade. Investors appear to have been scrambling to buy the neuroscience technology company’s shares after Japanese drugmaker Eisai released phase 3 data on its experimental drug for Alzheimer’s disease. That data showed that the drug has helped slow cognitive decline in patients in the early stages of the illness. Cogstate has an agreement with Eisai.

    Mayne Pharma Group Ltd (ASX: MYX)

    The Mayne Pharma share price is up 6% to 27 cents. This morning this pharmaceutical company announced the appointment of its new CEO. Mayne Pharma has appointed Shawn Patrick O’Brien to the top job. The company notes that O’Brien has more than 35 years of global pharmaceutical industry experience building successful enterprises. This includes several senior leadership roles at AstraZeneca.

    Race Oncology Ltd (ASX: RAC)

    The Race Oncology share price is up almost 5% to $2.01. This follows news that the oncology company has developed a new formulation of Zantrene that enables peripheral (arm or leg vein) intravenous (IV) delivery to patients. Management highlights that this novel and improved formulation provides clinicians with an easier to use alternative to the current central line formulation of Zantrene. It feels the formulation has greater market potential.

    Whitehaven Coal Ltd (ASX: WHC)

    The Whitehaven Coal share price is up 4% to $8.79. This morning the team at Macquarie retained its outperform rating and lifted its price target on the coal miner’s shares by 20% to $12.00. Macquarie made the move after upgrading its earnings estimates to reflect stronger than expected thermal coal prices.

    The post Why Cogstate, Mayne Pharma, Race Oncology, and Whitehaven Coal are charging higher appeared first on The Motley Fool Australia.

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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 CogState Limited. The Motley Fool Australia has positions in and has recommended CogState Limited. 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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  • ASX lithium share QX Resources soars 70% on ex-Lake Resources MD appointment

    A man in a suit and glasses guffaws at his computer screen in bewilderment.A man in a suit and glasses guffaws at his computer screen in bewilderment.

    The share price of tiny ASX lithium hopeful QX Resources Ltd (ASX: QXR) is taking off on news the company has appointed former Lake Resources NL (ASX: LKE) managing director Steve Promnitz.

    Promnitz fled the S&P/ASX 200 Index (ASX: XJO) lithium developer in June, seemingly selling his 10.2 million shareholding in the company shortly afterwards.

    But Lake Resources’ loss appears to be QX Resources’ gain. The ASX lithium and gold developer’s stock is roaring higher after the company announced its new boss.

    The QX Resources share price is soaring 69.7% right now to trade at 5.6 cents.

    Let’s take a closer look at the news driving the ASX lithium share higher on Wednesday.

    QX Resources share price surges on MD appointment

    The QX Resources share price is rocketing higher today. Its gain comes after the company announced Promnitz will take the reins of the growing Western Australia and Queensland-focused mineral developer.

    The former Lake Resources boss will take up the newly created managing director role at the lithium and gold hopeful.

    On his appointment Promnitz said he was looking forward to his new challenge, adding:

    I plan to advance [QX Resources’] current assets and expand the focus on battery minerals by drawing on my extensive networks and skills from the past six years in the battery minerals sector.

    QX Resources noted Lake Resources was a $1 million private company when Promnitz stepped into his former role. By the time he departed, the now-ASX 200 company was said to be worth around $2.1 billion.

    QX Resources chair Maurice Feilich also commented on the company’s new leader, saying:

    QX Resources has assembled a quality portfolio of near drill-ready lithium hard-rock assets in Western Australia with some very promising geology. As well, our gold assets in Queensland hold considerable unlocked value and growth for future development.

    QX Resources’ board decided now is the right time to appoint a managing director to fast-track the development of these assets while also assessing new battery minerals projects that complement the portfolio.

    We are confident that [Promnitz] can drive QX Resources to the next stage of its growth and development.

    The post ASX lithium share QX Resources soars 70% on ex-Lake Resources MD appointment appeared first on The Motley Fool Australia.

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

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  • How does Zip plan to become a cash flow positive ASX company?

    A young boy with a sombre face looks down at the zip fastener at the bottom of his jacket as he concentrates on unfastening the clasp.A young boy with a sombre face looks down at the zip fastener at the bottom of his jacket as he concentrates on unfastening the clasp.

    The Zip Co Ltd (ASX: ZIP) share price is down 0.44% today to 68 cents. What a shocker this company has had in 2022. The Zip share price is down 84% in the year to date and down 90% over the past 12 months.

    That’s nothing short of a horror story for ASX shares investors. Worse than Poltergeist. Worse than Freddy Kruger. In fact, worse than the two of them put together, with the shower scene from Psycho on top. Am I getting carried away here?

    At any rate, Zip shareholders are tired. And clearly, Zip management is also fed up with how things have been going.

    As my Fool colleague Mitch has previously reported, Zip is changing course. It’s going from seemingly being all about ballooning company growth to wanting positive cash flow and profitability.

    In July, Zip and Sezzle Inc (ASX: SZL) mutually agreed to abandon plans to merge. Zip is also closing its Singapore and United Kingdom businesses, which form part of its non-core ‘rest of world’ market.

    This will leave the company clear to focus on its two core markets — Australia and New Zealand (ANZ) and the United States — at least for a while.

    Zip has mapped out its strategy to become cash flow positive in its annual report released today.

    A simplified strategy is the first step

    In its annual report, Zip explains its plans to simplify the business and focus on the best bits:

    We have reviewed and refined our priorities with a focus on accelerating our path to profitability and have made progress with our three strategic priorities – sustainable growth, unit economics and cost management.

    Our FY23 strategy is to allocate capital and focus effort on areas of our business that demonstrate the right characteristics to accelerate our path to profitability.

    Specifically, we have simplified our strategy to focus on core markets ANZ and the US which are either already generating positive cash EBTDA or have a clear and near path to positive cash EBTDA; and products with proven market fit and sustainable unit economics.

    So, what’s the plan to positive cash flow?

    Zip outlined three key elements in its path to positive cash flow and group profitability. They are growth in the ANZ and US businesses, an improvement in unit economics, and reducing the global cost base.

    One way it plans to grow in ANZ and the US is by continuing to recruit new enterprise merchants. Its most recent big player sign-ups include Best Buy Co Inc, Bed Bath & Beyond Inc, Footlocker, Inc, JB Hi-Fi Limited (ASX: JBH), Qantas Airways Limited (ASX: QAN), and Virgin Australia. The company says it now has more than 90,000 merchants. That’s a 77% increase year over year (yoy).

    Attracting new customers is another way. In FY22 in ANZ, Zip signed up 400,000 net new customers to grow to 3.2 million in total. In the US, Zip’s customer base grew by 45% yoy to 6.4 million.

    For the record, the ANZ business has been cash flow positive for four years and had a record profit in FY22. The US business is not yet there but has “a clear and near-term path to achieving positive cash flow”, according to Zip.

    In terms of improving unit economics, Zip is “targeting a reduction in cash cost of sales as a percentage of TTV to 4.0%-4.5% in the medium term with improving credit performance a key driver”.

    It also aims to reduce processing costs and offer customers increased payment flexibility. This includes personalised repayment schedules and enhancing the rewards program.

    Zip says: “As part of our strategic review, we are also working through and will finalise actions related to our remaining non-core global businesses, reducing group cash burn.”

    Zip said its balance sheet is “strong with available cash and liquidity of $278.6 million as of 30 June 2022″.

    Furthermore: “With our current plan, we believe this is sufficient capital to see us through to group positive cash flow.”

    BNPL still in its infancy as a payments system

    Zip says buy now, pay later is only in its infancy worldwide, so the future looks bright:

    The COVID-19 pandemic accelerated the rise in the use of digital wallets and the addressable opportunity for BNPL remains significant, with BNPL expected to be the fastest growing ecommerce payment method over the next two years.

    As consumers are increasingly seeking products that are fair, transparent and provide seamless customer experiences we expect continued market penetration of BNPL as a payment method.

    Across our core markets, ANZ and the US, penetration is less than 2% of the total addressable market with significant opportunity, particularly in the US which is still early stage and expected to more than double by 2025.

    The post How does Zip plan to become a cash flow positive ASX company? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bronwyn Allen has positions in Qantas Airways Limited and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Best Buy, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Foot Locker. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended 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.

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  • Critical Resources share price lifts on ‘some of the highest grades released by an ASX listed lithium company’

    A miner in hardhat and high visibility clothing makes a thumbs up symbol against a blue sky.A miner in hardhat and high visibility clothing makes a thumbs up symbol against a blue sky.

    The Critical Resources Ltd (ASX: CRR) share price is higher on Wednesday following the company’s latest drilling results.

    At the time of writing, the base metals and lithium exploration company’s shares are up 4.35% to 7.2 cents apiece.

    Critical Resources encounters visual spodumene

    Investors are bidding up the Critical Resources share price after the company revealed further thick, high-grade intercepts at the Mavis Lake lithium project in Canada.

    According to its announcement, Critical Resources advised assay results confirmed exceptionally high-grade lithium oxide.

    Management highlighted the drill hole results, which included up to 3.36% of Li2O (lithium oxide) within the main zone of Mavis Lake.

    So far, Critical Resources has now drilled around 11,680 metres in its 2022 campaign.

    This is expected to reach up to 15,000 meters later this year.

    The company is undergoing initial discussions with consultants to perform metallurgical test work as well as resource modelling.

    The assay results of two recently drilled holes are expected to be received sometime in the middle of next month.

    Critical Resources non-executive director Alex Cheeseman commented:

    To follow our last results with another set of such high-grade assays is an excellent outcome for the Company, and further builds our confidence in delineating a JORC compliant resource in the near term.

    We believe the last few rounds of assay results have been the some of the highest grades released by an ASX listed lithium company so far in 2022, this sets us up well to continue advancing the project and transition Critical Resources into a potential lithium project developer.

    About the Critical Resources share price

    Since this time last year, the Critical Resources share price has accelerated by more than 90%.

    The company’s shares hit a 52-week high of 14 cents in January, before losing ground in the months after.

    Based on today’s price, Critical Resources commands a market capitalisation of approximately $108 million.

    The post Critical Resources share price lifts on ‘some of the highest grades released by an ASX listed lithium company’ appeared first on The Motley Fool Australia.

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    Motley Fool contributor Aaron Teboneras 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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  • Are short sellers right about the Lake Resources share price?

    A young woman looks at something on her laptop, wondering what will come next.A young woman looks at something on her laptop, wondering what will come next.

    Short sellers have been clamouring onboard Lake Resources N.L. (ASX: LKE) in 2022, likely on the assumption its share price will soon fall.

    The stock’s short position has increased from around 0.1% at the start of the year to sit at 10% at last count.

    The Lake Resources share price has fallen 16% over the same period to trade at 91 cents today.

    For context, the S&P/ASX 200 Index (ASX: XJO) has also dumped 15% year to date.

    So, could short sellers be right about the future of the Lake Resources share price? Let’s take a look.

    Short sellers sceptical of Lake Resources share price

    The Lake Resources share price has faced increasing pessimism over recent months, with short interest in the stock increasing around 10,000% year to date.

    And such cynicism likely wasn’t helped by a scathing attack from activist short seller J Capital in July.

    J Capital authored a report which stated, among many critiques, that the direct lithium extraction technology intended to be used at the company’s Kachi Project wouldn’t work as predicted. It also took aim at the company’s management, saying insiders had been selling millions of dollars of stock.

    The company clapped back against such claims, but its response seemingly hasn’t been enough to appease short sellers.

    Additionally, the company’s former managing director Steve Promnitz abruptly abandoned the company in June, seemingly selling all his stock in the lithium hopeful. As an aside, Promnitz has today been appointed managing director of lithium and gold developer Qx Resources Ltd (ASX: QRX).

    And now, the company is in a dispute with its project partner Lilac Solutions over the details of an earn in agreement.

    Of course, all of the above has likely rang alarm bells for Lake Resources investors. And many of the happenings were also a red flag for experts.

    TMS Capital’s Ben Clark and Marcus Today’s Henry Jennings dubbed Lake Resources’ shares a sell rating last month, Livewire reports.

    Commenting on the bearish outlook, Clark said, courtesy of the publication:

    It’s got a mine in Argentina, which will probably need close to a billion dollars spent on it to get it into production. It’s still some years away from production and who knows what the lithium price is by then?

    Jennings continued, reportedly saying:

    [Promnitz] went off into the sunset, selling his … shares almost instantly. That doesn’t usually happen. Usually, they make some personal reasons.

    So for me, there are much better lithium stocks to play, so at the moment, it’s a sell.

    The post Are short sellers right about the Lake Resources share price? appeared first on The Motley Fool Australia.

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

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  • AGL share price rallies despite sustained pressure from $68 billion super fund

    asx company executive with multiple fingers all pointing at himasx company executive with multiple fingers all pointing at him

    The AGL Energy Limited (ASX: AGL) share price is outperforming the market even as one of Australia’s most influential super funds is putting pressure on the company.

    The $68 billion healthcare superfund, HESTA, is warning AGL’s board that its soon-to-be-released decarbonisation plan better be good, as reported by the Australian Financial Review.

    The market seems to have cast an early verdict. The AGL share price is up 3.12% to $6.61 while the S&P/ASX 200 Index (ASX: XJO) is 0.88% lower during afternoon trade.

    AGL share price coping with the pressure

    However, HESTA itself is under pressure from members to explain why it doesn’t sell its entire holdings in AGL. HESTA’s chief executive Debby Blakey is trying to convince them that engagement is better than divestment. She said:

    We are seeking to learn more about how they will mitigate climate risk, how they will reduce emissions and how they will manage the situation, support the transition and align with that 1.5 degree transition pathway.

    More board changes could be afoot

    There have been significant management changes since AGL’s failed plan to split itself into two companies. HESTA voted against the demerger and there could be more changes to the board. This is because HESTA has not decided who to back when directors seek re-election.

    But given the turmoil that has already rocked the AGL share price since the Mike Cannon-Brookes-led campaign against AGL’s spilt, investors do not seem too perturbed.

    More ASX shares in the climate firing line

    If it’s any consolation to AGL’s board, it won’t be the only ASX company that HESTA is pressuring. The fund will write to all S&P/ASX 300 (ASX: XKO) companies in its portfolio asking them to outline plans to tackle climate change, social inequality, and biodiversity.

    The letter will warn companies that those who don’t have a fit-for-purpose plan will face a revolt from HESTA. This could include uncomfortable shareholder resolutions, votes against directors, and HESTA dumping their shares.

    The fund, which has 950,000 members, has a 2050 net-zero target for its investment portfolio. It also has a 50% carbon reduction interim target set for 2030 (the baseline year is 2020).

    HESTA’s move comes at a time when several large cap ASX companies have been accused of greenwashing. That means they are only paying lip service to their climate commitments for PR and marketing purposes.

    AGL share price snapshot

    The AGL share price is under more scrutiny than most on the climate front due to its ownership of coal-fired power plants.

    But the market sees value in the shares given they’ve rallied 16% over the past year. In contrast, the ASX 200 has fallen over 11% in the same period.

    On the other hand, longer-term investors are probably underwater on their investment. The AGL share price was trading at more than $20 in early 2020.

    The post AGL share price rallies despite sustained pressure from $68 billion super fund appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brendon Lau 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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  • Why Warren Buffett loves this US stock

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

    A happy family playing video games smiles and laughs together

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

    As one of the most successful stock pickers in history, Warren Buffett regularly inspires investors around the world. Some of those folks may be interested to know that Buffett’s holding company, Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B), has taken a targeted interest in video game powerhouse Activision Blizzard, Inc. (NASDAQ: ATVI) throughout 2022. 

    At the end of 2021, Berkshire Hathaway owned roughly 1.8% of Activision Blizzard. Buffett increased his stake in the games company more than once in 2022, with shares growing from 64.3 million to 68.4 million in August — or about 8.7% of Activision. Let’s take a look at why it has captured Buffett’s interest.

    A possible deal with Microsoft 

    Buffett’s move to increase his investment in Activision Blizzard was prompted by Microsoft Corporation‘s (NASDAQ: MSFT) announcement in January that it would acquire the gaming company for $95 per share in an all-cash transaction valued at $68.7 billion. The deal would be the biggest the gaming industry has ever seen, and thus attracted scrutiny from regulators around the world. Buffett garnered criticism back in April when Berkshire Hathaway first increased its investment in the company, as analysts believed the move was a gamble in the face of pending regulatory decisions.

    However, Buffett’s move to load up on Activision stock was a vote of confidence that the deal will be completed. The acquisition requires approval from various countries to ensure it does not lead to Microsoft becoming overly dominant in the video game market. The concern stems from Activision’s franchise Call of Duty, the world’s second-best-selling game series. In 2020 alone, more than 200 million people bought a total of $3 billion worth of products related to the franchise.

    Under Microsoft’s control, those games could give it a significantly greater edge in attracting players to its consoles and services over those of its competitors. While Activision Blizzard’s game library would be a lucrative asset for Microsoft, the company is unlikely to become all-controlling in the market. Even with this acquisition, it would be just the third-largest video game company after Tencent and Sony — a fact that bodes well for the deal’s regulatory approval.

    On Aug. 22, Saudi Arabia’s regulator became the first authority to give the acquisition its stamp of approval. However, Microsoft most crucially needs sign-offs from the world’s three main regulators: the U.S. Federal Trade Commission (FTC), the United Kingdom’s Competition and Markets Authority (CMA), and the European Commission. Each of them has the power to block the deal or impose conditions. 

    What will the acquisition mean?

    As the Activision Blizzard acquisition would be an all-cash deal, investors in the gaming company would see their shares disappear from their portfolios, replaced with the cash value if the purchase goes through. Activision Blizzard stock sits at about $75 a share and has fluctuated in the range of $75 to $79 over the past month.

    Consequently, prospective buyers stand to profit by a little over 26% at Microsoft’s purchase price of $95 a share. The Berkshire Hathaway stake is currently worth about $5.1 billion, which will become $6.4 billion if the deal goes through.

    Even if the acquisition does not occur, Activision Blizzard shares may still make a smart, long-term buy. The share price is still 28% below the height it reached in February 2021, before it began to plummet following negative reports about the company’s treatment of its employees. Additionally, Buffett purchased a stake in Activision Blizzard before the Microsoft deal was announced, an indication that he believes in the outlook for the video game company.

    How likely is regulatory approval? 

    The CMA revealed on Sept. 15 that it planned to take an even more “in-depth” approach to its regulatory process, moving into phase two of its investigation. The British antitrust authority has expressed concerns that Microsoft’s Activision Blizzard acquisition would be anti-competitive. The CMA’s next step will examine whether the deal means that Microsoft could “withhold or degrade” Activision’s content from competing consoles or services and whether it will “raise barriers to entry and foreclose rivals in cloud gaming services.”

    The main concern is that Microsoft will make Call of Duty exclusive to its Xbox consoles. However, Microsoft has already asserted that it has no plans to do so, which should mitigate antitrust concerns. It’s possible that regulators could approve the deal with the stipulation that Activision titles cannot be made exclusive to Xbox consoles — a condition that would not devalue the deal for Microsoft. 

    Both parties have expressed optimism that the deal will go through. Activision Blizzard CEO Bobby Kotick said on Sept. 1 that the process is “generally moving along as expected,” and said he expects it to be complete by June 2023. All in all, there seems to be a great deal of positivity surrounding the Activision acquisition, which has only been strengthened by Buffett’s confidence in the stock. Now might be the best time to buy. 

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

    The post Why Warren Buffett loves this US stock appeared first on The Motley Fool Australia.

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    Dani Cook 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 Activision Blizzard and Microsoft. The Motley Fool Australia has recommended Activision Blizzard. 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.



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  • Experts reveal 2 ASX shares primed for growth despite a slowing economy

    one man in a classic navy blue business suit lies atop a wheelie office shair while his colleage, also in a navy business suit, grabs him by the legs and propels him forward with both of them smiling widely as though larking about in the office.one man in a classic navy blue business suit lies atop a wheelie office shair while his colleage, also in a navy business suit, grabs him by the legs and propels him forward with both of them smiling widely as though larking about in the office.

    Two experts have revealed a couple of ASX shares that could perform strongly if the looming recession hits.

    Forager Australian Shares Fund senior analyst Alex Shevelev and founder Steve Johnson gave their picks as part of a podcast posted on Livewire yesterday. The episode focused on how investors could continue to grow their portfolios amid rising interest rates and price increases for essential goods and services.

    According to the pair, consumer spending, in general, is anticipated to slow down, with more money being earmarked in people’s budgets for paying down existing debt instead of splurging on discretionary items.

    So, let’s not keep you in suspense. Below we uncover the companies and why these experts think they could insulate portfolios in the current climate.

    RPMGlobal Holdings Ltd (ASX: RUL)

    RPM provides software to clients in the mining industry. Shevelev stated that its revenues are subscription-based and are unlikely to be affected by the predicted headwinds felt by everyday consumers.

    Shevelev said:

    RPM is another large investment in the portfolio, software for mining companies. And that has performed very well to date in terms of attracting new subscription revenue to the business. And it feels like that business is not going to stop because of all these macro factors. Yes, commodity prices being dramatically lower would be a hindrance, but the current levels or levels marginally below are sufficient to continue growing. There’s a lot more stock specific factors at play here rather than just the overall arching macro themes.

    Some of this optimism may be chalked up to RPM expecting record sales growth for FY23 as part of its guidance in its FY22 annual report. If the milestone is reached, it will be the fourth time it has done so over the last four consecutive years.

    Readytech Holdings Ltd (ASX: RDY)

    Readytech is a software-as-a-service (SaaS) company that provides payroll, human resources, education, and other cloud solutions. Shevelev believes this company will also be shielded from the downside of inflationary pressures and could even benefit from them.

    Shevelev said:

    [Readytech] will not be facing a consumer who was seeing less money in their pocket. It will be facing an organisation that has reasonably steady revenues, that has a focus on keeping its systems up to date because those systems often help them to save money and be more efficient with their internal processes.

    And, in fact, companies like that are now taking advantage and actually increasing their product pricing to their customers because they are seeing some inflationary pressure and they’re actually able to pass that through to their customers.

    Readytech outlined plans for further expansion into the justice sector in its financial report for FY22, providing further stability to its earnings through blue-chip government contracts.  

    The post Experts reveal 2 ASX shares primed for growth despite a slowing economy appeared first on The Motley Fool Australia.

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    Motley Fool contributor Matthew Farley 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 RPMGlobal Holdings and Readytech Holdings Ltd. The Motley Fool Australia has recommended RPMGlobal Holdings and Readytech Holdings Ltd. 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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  • Up 200% so far this year, is it too late to buy Whitehaven shares now?

    A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

    A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

    The Whitehaven Coal Ltd (ASX: WHC) share price has been a big performer for shareholders in 2022.

    Whitehaven shares have risen by 225% in the year to date. It’s up by another 5% today.

    This year the business has benefited from the rising coal prices as countries look to find alternative sources of energy away from Russia.

    Whitehaven has been rewarding investors with shareholder returns through a significantly bigger dividend as well as an ongoing share buyback.

    Why is the Whitehaven share price powering higher today?

    The ASX coal share could also be benefiting from a positive broker note out of Macquarie.

    Macquarie has increased its price target by 20% to $12 for the coal miner. That implies the Whitehaven share price could rise by more than 30% over the next year.

    So why is the broker more confident in the coal miner’s share price?

    According to reporting by The Australian, Macquarie has an improved outlook for thermal coal prices because of the market deficit and the willingness of some wealthy countries to “pay a premium to secure energy supply”.

    It has increased its 2022 thermal coal price forecast by 25% to US$410 per tonne and the 2023 price forecast is also up to US$367.50 per tonne.

    Macquarie’s estimate for Whitehaven’s earnings per share (EPS) has increased by 28% for FY23 and between 100% to 200% for FY24 to FY27.

    Does that mean big dividends could continue?

    It certainly seems so, according to Macquarie.

    Whitehaven’s final FY22 dividend per share was a fully franked dividend per share of 40 cents. That dividend alone equates to a grossed-up dividend yield of 6.4%.

    Macquarie’s dividend estimates put the grossed-up dividend yield of Whitehaven at 16.9% for FY23 and 19.8% for FY24. If those estimates prove accurate, then the next couple of years look very promising for shareholders. However, the coal price and profitability aren’t expected to stay this high forever.

    Is the Whitehaven share price good value?

    Macquarie thinks so, with its price target of $12 and an outperform rating.

    In terms of the price/earnings (p/e) ratio, Macquarie’s numbers put the Whitehaven share price at under three times for FY23 and FY24. Of course, time will tell whether Whitehaven is able to generate the profits that it’s projected to make.

    The Russian invasion of Ukraine was an unexpected event and I think it’s worth keeping in mind that it’s possible that something else unexpected could lead to another major change.

    The post Up 200% so far this year, is it too late to buy Whitehaven shares now? appeared first on The Motley Fool Australia.

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    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 Macquarie Group Limited. 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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  • Why is the Core Lithium share price sinking 9% today?

    A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.

    The Core Lithium Ltd (ASX: CXO) share price is deep in the red on Wednesday despite no announcements from the company.

    At market open, the lithium producer’s shares were hovering in positive territory before plummeting to an intraday low of $1.065 a share.

    Currently, the Core Lithium share price is $1.085, down 8.82%.

    Let’s take a look at what could be driving the fall in the company’s share price.

    Core Lithium shares retreat

    Investors are selling off Core Lithium shares amid a mixed session across the ASX Indices.

    With the S&P/ASX 200 Materials Index (ASX: XMJ) edging 0.72% lower at the time of writing, a number of lithium companies are struggling.

    Shares in Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE) are down 3.3% and 2.86%, respectively.

    One reason for the Core Lithium share price tanking more than its peers might be that investors are taking profit.

    The company’s shares have risen 175% in a year, and are up 85% in 2022.

    Since the start of the month, before its abrupt fall on 13 September, Core Lithium shares rocketed by more than 30%.

    The company released a business update to shareholders yesterday, noting that first production at its Finniss Lithium Project isn’t far away.

    In addition, management advised it is following the footsteps of peer Pilbara Minerals Ltd (ASX: PLS). This will see Core Lithium auction off its first direct ship ore spodumene shipment from Finniss before the end of 2022.

    However, shareholders didn’t seem too fazed about the update, sending Core Lithium shares 8.7% lower yesterday.

    Core Lithium share price snapshot

    Adding to today’s fall, the Core Lithium share price has tumbled more than 24% in a week.

    Based on today’s price, Core Lithium commands a market capitalisation of approximately $1.9 billion.

    The post Why is the Core Lithium share price sinking 9% today? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals 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.

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