Tag: Motley Fool

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.

The transformation of the world’s vehicle fleet to being powered by electricity is one of today’s biggest growth trends. In 2021, sales of new light-duty fully electric vehicles (EVs) nearly doubled in the United States from the prior year, while overall light-duty vehicle sales increased by only 3%, according to government figures. International EV growth was also strong. 

The great news for investors is that this secular trend is still in its early stages. The percentage of the world’s light-duty vehicles on the road that are all-electric or plug-in hybrids is still very low. At the end of 2021, this figure was less than 2%. 

Tesla, Inc. (NASDAQ: TSLA) was instrumental in ushering in the EV revolution and still has a potentially long runway for growth. Investors also have many other options to gain exposure to this space. Two stocks that have strong long-term growth potential are those of lithium producer Albemarle Corporation (NYSE: ALB) and EV maker Rivian Automotive, Inc. (NASDAQ: RIVN).

Albemarle: A profitable and dividend-paying EV play

There are many publicly traded companies involved in the EV supply chain, but not many are profitable, pay a dividend, and have substantial current exposure to EVs. Albemarle fits this bill. 

The U.S.-based company is one of the world’s top producers of lithium, a component of the lithium-ion batteries that power EVs. While it’s not an EV pure play, its lithium business is the largest of its three segments (it accounted for 60% of total sales in the second quarter), and the bulk of the lithium it produces is used to make EV batteries.

Albemarle’s results have come roaring back following being hurt during the earlier stages of the pandemic. Excluding the fine chemistry services segment it sold last year, sales have surged 98% over the one-year period through the second quarter. The main driver has been the rocketing price of lithium, whose supply is tight and seems poised to stay that way for some time. In Q2, revenue and adjusted earnings per share jumped 91% and 288%, respectively, year over year.

Albemarle stock’s dividend is yielding 0.55%, as of the market’s close on Sept. 23. Even a modest dividend can make a big difference over time. Over the last decade, the stock’s total return was 488% (versus 207% for the S&P 500) — and 82 percentage points were contributed by the dividend. 

Rivian: A promising relatively newly public EV maker 

The number of pure-play EV makers that have gone public in recent years keeps growing. Rivian is one of the newcomers that has a good shot at surviving and thriving. It’s a U.S.-based company that held its initial public offering in November 2021. 

Rivian was the first company to launch a mass-produced electric pickup truck, which should give it a first-mover advantage. Its partnerships with two big names should also prove to be positives. It has an order from Amazon.com, Inc.(NASDAQ: AMZN), which owns a sizable stake of Rivian, to produce 100,000 custom-designed electric delivery vans. And earlier this month, the company and premium automaker Mercedes-Benz announced plans to create a joint venture to build a European factory that will manufacture electric vans for both companies.

Demand for Rivian’s vehicles is robust, but its production has been constrained by the supply shortage that has plagued the auto industry. Last month, management said this issue has begun to ease and reaffirmed its 2022 production forecast of 25,000 total vehicles. 

In the second quarter, Rivian produced 4,401 vehicles and delivered 4,467 vehicles. These numbers were up from 2,553 and 1,227, respectively, in the first quarter. It ended the quarter with about 98,000 preorders from U.S. and Canadian consumers for its two consumer vehicles, the R1T pickup and R1S SUV. 

Investors should keep a close watch on Rivian’s production numbers and its liquidity situation. 

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

The post 2 high-growth electric vehicle stocks to consider buying (other than Tesla) 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 popped on Monday
• This stock market investment strategy made money 100% of the time over the last century
• Are you attracted to ASX losers?
• Here’s why splitting up Amazon could mean huge returns for shareholders
• Is Tesla stock recession-proof?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Beth McKenna 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 Amazon and Tesla. The Motley Fool Australia has recommended Amazon. 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/vlf5X06

The Betmakers Technology Group Ltd (ASX: BET) share price has endured a tough couple of weeks, down more than 25% from the close of 12 September to the present day.

Some of its peer companies are also down during this period, including Ainsworth Game Technology Limited (ASX: AGI), which has fallen 7%. Cettire Ltd (ASX: CTT) has suffered a 22% loss.

More broadly, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has also dipped more than 7% during this time, and the S&P/ASX 200 Index (ASX: XJO) has fallen by a similar amount%.

The correlation between Betmakers’ fall and that of the wider market is undeniable, but there could also be other underlying forces at play here. Let’s investigate what those might be.

Interest rates rise, and shares fall

The first thing which might be going on is that cyclical shares like Betmakers are generally the first to be discounted when investor sentiment starts heading south and rise again when positive sentiment returns.

The omen that seems to have spooked investors is rising interest rates in the US, which puts pressure on the valuations of companies downwards.

This is especially true for companies considered more speculative, such as tech start-ups and other companies still working toward reaching breakeven profitability. This includes companies such as Betmakers, which reported a $1.62 million loss year to date in its most recent quarterly activities report in July.

Additonally, in its full-year results released last month, the company reported a 371% increase in revenue to $91.7 million, but its earnings before interest, tax, depreciation, and amortisation (EBITDA) loss was almost as much at $86 million. The Betmakers share price fell 3.7% the day the results were released on August 26 and has been struggling ever since.

Short-sellers pile on

Data also suggests that short-sellers believe Betmakers could fall to lower levels. The Fool reported that the company’s short interest stood at 13.5% on 19 September.

Short interest is another litmus test of investor sentiment, with higher levels reflecting a more pessimistic expectation that the company’s shares will perform poorly in the future.

Putting this 13.5% figure into perspective is that the typical short interest for stocks in the S&P 500 Index (SP: .INX) has ranged between 1.6% and 2.9% over the last decade.

Thus, it seems that investors are parking their cash into companies involved in more defensive sectors with an established history of delivering earnings growth throughout the economic cycle.

Another popular option is to invest in shares that pay considerable dividends to help offset portfolio devaluation during a downturn.

Betmakers share price snapshot

In early trading on Tuesday, the Betmakers share price is up 2.3% to 31.2 cents.

However, Betmakers shares are down around 62% year to date. Meanwhile, the ASX 200 is down 15% over the same period.

The company’s market capitalisation is $285.05 million.

The post Why has the Betmakers share price tumbled 25% in 2 weeks? 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 are the 10 most shorted ASX shares
• Here are the 10 most shorted ASX shares
• Why has the Betmakers share price crashed 15% in a month?
• Here are the 10 most shorted ASX shares
• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?

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 Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Cettire 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/JsLoCVA

The Core Lithium Ltd (ASX: CXO) share price is edging lower on Tuesday.

In morning trade, the lithium developer’s shares are down 1% to $1.24.

Why is the Core Lithium share price falling today?

The Core Lithium share price is falling on Tuesday despite the release of a business update.

According to the release, the Finniss Lithium Project is close to making its first shipment of spodumene.

Management advised that preparations are underway for Core’s first shipment of direct ship ore spodumene from the project before the end of 2022.

The company is planning to follow the lead of Pilbara Minerals Ltd (ASX: PLS) by selling this shipment via a tender process using a digital exchange platform. The company decided to go down this route due to the “high level of interest in Finniss ore.”

Drilling update

Also failing to lift the Core Lithium share price today was news that high grade spodumene bearing pegmatite has been intersected in multiple holes at the BP33 prospect, up to 830 metres below surface.

This is promising as the proposed BP33 underground mine will be the second mine at the Finniss project.

Core has already been granted environmental approval for BP33 from the Environmental Protection Authority (EPA). The next goal is getting the Mine Management Plan approved. It has been submitted to the Department of Industry, Tourism and Trade, which represents the final step to complete the approvals process.

Core’s CEO, Gareth Manderson, was pleased with recent developments. He commented:

Core Lithium continues to demonstrate progress towards building a great lithium business through the delivery of the Finniss Project to production and the ongoing work to prove up our resources to support future operations. Finniss will come online at a time of high lithium demand.

Core has significantly increased exploration and resource expansion funding to grow the resource at Finniss. The diamond drilling results from BP33, the second lithium mine planned at Finniss, demonstrates the value of this investment. Spodumene bearing pegmatites were intersected in multiple holes at BP33. Importantly, these intersections sit well outside of the current BP33 Mineral Resource and will likely contribute to a positive Mineral Resource update.

The post Core Lithium share price falls despite business update 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 Core Lithium share price cratering 9% on Monday?
• Here’s which ASX lithium shares investors have been loading up on this month
• Which ASX lithium shares are performing best in 2022?
• Why has the Core Lithium share price cratered 15% in a week?
• Guess how many companies in the ASX 300 actually make no money

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

from The Motley Fool Australia https://ift.tt/IquUA6C

The AGL Energy Ltd (ASX: AGL) share price is edging lower amid the company paying out its latest dividend today.

The energy company’s shares are currently down 0.23% to $6.405 apiece.

For context, the S&P/ASX 200 Index (ASX: XJO) is hovering in positive territory after yesterday’s sell-off. The benchmark index is up 0.26% to 6,486 points.

AGL pays out interim dividend

On 19 August, AGL reported a mixed performance in its full-year results for the 2022 financial year.

In summary, revenue jumped 20.8% to $13.22 billion compared to the prior corresponding period.

However, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 27% to $1.21 billion.

This led to net profit after tax (NPAT) declining by 58% to $225 million.

AGL acknowledged the challenging energy industry and market conditions but noted that its underlying profit after tax was within guidance.

Nonetheless, the board declared an unfranked final dividend of 10 cents per share to be paid today. This is a large drop from the 34 cents that was paid out in the previous final dividend (FY 2021).

When calculating against the current share price, AGL is trailing on a dividend yield of 4.07%.

AGL has a dividend reinvestment plan (DRP) in place but opted not to apply it to the latest dividend.

AGL share price summary

While moving in circles during recent times, the AGL share price is up 4% in 2022.

When looking at the last 12 months, its shares have travelled further in the green to post a gain of 8.4%.

AGL has a price-to-earnings (P/E) ratio of 5.23 and commands a market capitalisation of roughly $4.3 billion.

The post The AGL dividend is being paid today. Here’s the lowdown 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

• 5 things to watch on the ASX 200 on Tuesday
• Despite all the recent noise, is it business as usual for AGL shares?
• What’s next for AGL shares following the company’s latest shake-up?
• AGL share price dips following changing of the guard
• AGL share price slides amid shareholder revolt

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.

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

On announcing Australia had entered a recession in 1990, then treasurer Paul Keating uttered the now notorious line “this is a recession Australia had to have”. More than three decades on, the United States (US) appears to be teetering on a recession born from a similar economic situation.

Australia’s 1990s recession was brought about, in part, by efforts to reduce inflation.

Nowadays, the US Federal Reserve is hiking interest rates in a bid to fight the same measure. It upped the nation’s benchmark rate by 0.75% to a range of 3% to 3.25% last week.

The move came just weeks after US inflation was found to have come in higher than expected in August.

And experts are tipping more pain to come. Most of the US’s Federal Open Market Committee expect interest rates to surpass the 4.5% priced into markets, my Fool colleague Bernd reports.

Could the US be about to suffer through an inevitable recession as Australia did in the 1990s?

Is the US on the path to recession?

It’s been more than thirty years since Keating heralded a recession as one that “Australia had to have”. Though, it was a sentence the then treasurer later admitted he regretted, saying:

[I]t did not reflect the government’s policy, and it was a statement which seemed too uncaring at the time. The government was never after a recession. Policy was only about a slowdown.

Right now, the US is looking at a vastly different environment than Keating once did, despite some notable parallels. One major difference, for example, is low US unemployment, coming in at 3.7% in August.

Still, some experts are tipping the US to enter a recession in the near future.

Ophir Asset Management director Andrew Mitchell is one such expert. He recently noted, courtesy of The Australian:

We think it is very likely the US will end in recession. The Federal Reserve’s reputation is on the line and [chair] Jerome Powell is most likely to overcorrect and go too tight on monetary policy, which will have damaging effects on the global economy.

Barclays is reportedly also predicting a US recession. It expects the interest rate to peak at a target range of 4.5% to 4.75% in February, driving a “shallow recession”, the Australian Financial Review reports.  

But not all is dire…

Fortunately, Australians, and ASX fans, still have plenty to be hopeful of.

HSBC chief economist for Australia, New Zealand, and global commodities Paul Bloxham tipped Australia to dodge the worst of a global economic slowdown ahead of his keynote presentation at Flight Centre corporate’s Illuminate 2022 conference. He said:

While inflation is running at around 8% in US and 9% in Europe, its growth in Australia has fortunately been slower. We forecast Australia will avoid a recession, unlike some other countries.

Additionally, investors might find comfort in predictions that, if the US does fall into a recession, it will likely be a tame one.

Morgan Stanley chief investment officer of wealth management Lisa Shalett says inflation-triggered recessions are generally less severe than others, continuing:

Aside from the pandemic-induced 2020 recession, other recent recessions have been credit-driven.

By contrast, excess liquidity, not debt, is the most likely catalyst for a recession today. 

The difference is important for investors. Historically, damage to corporate earnings tends to be more modest during inflation-driven recessions.

Beyond that, the words of The Motley Fool Australia’s chief investment officer Scott Phillips could bring comfort to anxious investors.

Phillips correctly points out, despite market crashes, recessions, pandemics, and many more apparently disastrous events, the ASX has gained an average of 9% annually over the last three decades. He writes:

In a world where people want to tell you, at every turn, how complex and difficult investing can be, I humbly disagree … I think the future is bright, not because there are no obstacles for us to climb, but despite the fact there are obstacles to climb.

It has always been thus. And that’s the lesson of economic and stock market history.

The post Could the US be heading for a recession it ‘has to have’? 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

• Santos share price higher on $2.2 billion PNG deal
• Here are 2 ASX All Ords shares going ex-dividend tomorrow
• Why Amazon stock popped on Monday
• Why I think right now is a great time to buy the Betashares Nasdaq 100 ETF
• Newcrest share price hits 6-year low. Expert predicts more pain to come

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.

from The Motley Fool Australia https://ift.tt/4EUqfg8

The Santos Ltd (ASX: STO) share price is pushing higher on Tuesday morning.

At the time of writing, the energy producer’s shares are up 2% to $7.02.

What’s going on with the Santos share price today?

Investors have been bidding the Santos share price higher today after a positive announcement offset further weakness in oil prices.

According to the release, Santos has received a binding conditional offer from Kumul Petroleum to acquire a 5% project interest in PNG LNG for an asset value of US$1.4 billion (A$2.2 billion). This includes a proportionate share of project finance debt of approximately US$300 million.

Kumul Petroleum is Papua New Guinea’s national oil and gas company and an existing partner in the PNG LNG project.

Should the sale go ahead, it would increase the equity interest of Kumul Petroleum to approximately 22%. This supports the Papua New Guinea’s government objectives for the people of Papua New Guinea to have a greater equity interest in the development of their natural resources.

Santos will be left with a 37.5% interest in the project.

What’s next?

The offer is conditional on Kumul Petroleum obtaining the waivers of certain pre-emptive rights by all PNG LNG project participants under the project operating agreement. It is also subject to customary conditions including necessary regulatory approvals and Kumul Petroleum securing financing.

If it does complete, the proposed transaction will have an effective date of 31 December 2022. This will mean that Santos retains all 2022 cash flows.

Santos managing director and CEO, Kevin Gallagher, believes the sale represents an opportunity to build strategic alignment for the future development of PNG’s natural gas resources. He commented:

PNG LNG is a low-cost and low emissions intensity asset that contributes strong cash flows to the project participants and economic and social benefits to the nation. Following the transaction, Santos would maintain a 37.5 per cent interest in this world-class project. Santos has been a committed partner in PNG for over 40 years, involved in more than 30 different licenses and has significant community partnerships and projects across the nation.

As part of the deal, Santos and Kumul Petroleum will negotiate a heads of agreement to further collaborate on the development of Kumul’s regional capacity and capability. This includes carbon emission reduction opportunities to achieve net-zero operations.

The post Santos share price higher on $2.2 billion PNG deal 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

• 5 things to watch on the ASX 200 on Tuesday
• Why is the Santos share price sinking 5% today?
• 5 things to watch on the ASX 200 on Monday
• 2 surprising ASX shares to buy for the energy transition: Wilsons
• Own Santos shares? Get ready to receive your dividends

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

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

As we near the end of the month, the number of companies in the S&P/ASX All Ordinaries Index (ASX: XAO) turning ex-dividend is dwindling.

Nonetheless, there will be two high-yielding ASX All Ords shares going ex-dividend tomorrow.

In other words, these companies will be taking away entitlements to their upcoming dividend payments. Let’s check them out.

Myer Holdings Ltd (ASX: MYR)

First up, ASX retail share Myer will be trading tomorrow without a fully franked final dividend of 2.5 cents per share.

That means that today will be the last day to lock in this dividend. As of tomorrow, investors buying Myer shares will be doing so without entitlements to the upcoming dividend, which will be paid on 7 November.

But accordingly, Myer shares will likely drop tomorrow as the value of the dividend leaves the share price.

Myer operates on a slightly different financial calendar than the rest of the ASX. Its financial year ends in July, so the department store handed in its FY22 results a couple of weeks ago.

Despite 11% of trading days in lockdown, Myer achieved total sales of nearly $3 billion, up 12% from the prior year.

Adjusted net profit after tax (NPAT) more than doubled to $60 million, capped off by Myer’s best second-half profit result in the company’s history.

Prior to this year, Myer last doled out dividends in FY17. It reinstated dividends back in February when announcing its first-half 2022 results, with CEO John King commenting:

Myer will pay a dividend for the first time in four years, demonstrating our confidence in the momentum being built as we move into the second half, with a return to sales growth in the first five weeks of second half with trade up 15.2% and a strong platform of future initiatives that are yet to be delivered as part of the Customer First Plan.

In the end, Myer declared total dividends of 4 cents per share in FY22, fully franked. This means that Myer shares are currently spinning up an eye-catching trailing dividend yield of 7.1%. Including franking credits, this yield grosses up to 10.2%.

Cedar Woods Properties Limited (ASX: CWP)

Next up, property developer Cedar Woods is another ASX All Ords share going ex-dividend tomorrow. 

The company released its FY22 results last month, hiking its final dividend by 7% to 14.5 cents, fully franked.

Investors on Cedar Woods’ share registry at the end of today will receive this payment on 28 October.

FY22 was a year of growth for Cedar Woods. Revenue lifted by 11% to $333 million, while NPAT came in ahead of guidance at $37 million, up 14% from the prior year.

The company noted that its projects experienced ‘good’ demand during the year across the four states it operates in and most product types. However, sales rates have weakened in recent months in response to interest rate increases.

Nonetheless, the company entered FY23 with $500 million of presales contracts. Around 70% of these contracts are expected to settle in FY23.

The profit growth Cedar Woods achieved in FY22 translated to an uplift in dividends. Across the financial year, the company raised its total dividends by 4% to 27.5 cents, fully franked. This represents a dividend payout ratio of roughly 60% of NPAT.

Based on current prices, this ASX All Ords share is printing a trailing dividend yield of 6.7%. With the benefit of franking credits, this yield dials up to 9.6%.

The post Here are 2 ASX All Ords shares going ex-dividend tomorrow appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ords shares that marched higher on Friday
• Myer share price falls despite FY22 profit surge
• Why Leo Lithium, Myer, Neuren, and Peter Warren shares are rising today
• Down 80% since listing, could this ASX retail share be set for a mega-merger?

Motley Fool contributor Cathryn Goh 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/u645vqQ

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.com, Inc. (NASDAQ: AMZN) climbed higher Monday morning, adding as much as 3.1%. As of market close, the stock was still up 1.2% — even as each of the major stock indexes slumped.

The catalyst that sent the e-commerce giant higher was reporting the company will hold a second Prime Day sale this year, which will kick off in just weeks.

So what

In a press release that dropped early this morning, the company introduced Amazon’s Prime Early Access Sale, a shopping event exclusively for Prime members, which will be held on Oct. 11-12. “The new 48-hour event gives Prime members exclusive early access to holiday deals,” the company said in a statement. The sale will have items from popular brands, including Peloton Interactive, Inc. (NASDAQ: PTON) and New Balance, while also offering the lowest prices of the year on a variety of other products.

The sale will be available in 15 countries — including the U.S. — “giving members a chance to kick off the holiday shopping season early with hundreds of thousands of deals.” As part of the event, Amazon is providing a Top 100 list, which will include “the season’s most popular and giftable items.”

Furthermore, members will be provided with “early access” to check out the holiday gift guides and early deals beginning today. Initial promotions include a four-month free trial of Amazon Music Unlimited, a free one-year subscription to Just Eat Takeway.com‘s Grubhub+, or a third-generation Echo Dot for $0.99.

Now what

Since it was introduced in 2015 to celebrate the company’s 20th anniversary, Amazon Prime Day has become a customer-favorite event, spawning a multitude of copycats and imitators. While the company keeps details about the financial results of the event quiet, estimates suggest that Prime Day (which is now a two-day event) generated record sales of $12 billion in 2022. It’s important to view that in context, however, as it’s just a drop in the bucket compared to the $470 billion in revenue Amazon generated last year.

Still, given the growing importance of its annual sale, it’s not too surprising that Amazon would double down on the event — much to the delight of its shareholders.

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

The post Why Amazon stock popped on Monday 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 stock market investment strategy made money 100% of the time over the last century
• Are you attracted to ASX losers?
• Here’s why splitting up Amazon could mean huge returns for shareholders
• Is Tesla stock recession-proof?
• Why Amazon and these other leading tech stocks fell today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon and Peloton Interactive. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Peloton Interactive. The Motley Fool Australia has recommended Amazon. 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/YpZltS2

The Betashares Nasdaq 100 ETF (ASX: NDQ) has fallen far enough that I believe it’s a very worthwhile investment opportunity.

Aside from currency effects, this exchange-traded fund (ETF) simply tracks the combined return of 100 of the largest non-financial businesses on the NASDAQ stock exchange in the US.

At the time of writing, the Betashares Nasdaq 100 ETF has fallen by around 27% since the start of 2022. That’s a hefty decline for a large group of businesses in less than a year.

There are probably a few key reasons for the decline.

Inflation and interest rates

The share market is meant to have a bit of volatility sometimes. But, things have been particularly rough this year as inflation proved no longer to be “transitory” and remained stubbornly strong.

General price stability is one of the important factors for a good economy. Central banks don’t want to let inflation become entrenched. So, they are raising interest rates to try to bring things under control.

In January 1990, the Reserve Bank of Australia (RBA) interest rate was 17.50%. During COVID-19, that dropped to just 0.1% (though there were a whole bunch of interest rate cuts in between).

Why do interest rates matter so much? Legendary investor Warren Buffett once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

In other words, interest rates have a key role in influencing asset prices.

Why I think it’s a good time to buy Betashares Nasdaq 100 ETF

The Betashares Nasdaq 100 ETF has fallen a long way this year. I like investing in businesses and investments that have good long-term prospects, at a good price.

In my opinion, a number of the businesses in the ETF’s portfolio are among the best in the world at what they do. We’re talking about names like Apple, Microsoft, Amazon, Tesla, Alphabet, Meta Platforms, Nvidia, Costco, Adobe, PayPal, ASML and Moderna.

I believe that this group of businesses can continue to perform well over the long term as they maintain and grow their competitive advantages, expand into new geographies and launch new services or products.

When is a great time to buy shares? I think it’s when the asset price is at its lowest. Who knows if it’s going to go any lower? I don’t know, but I do think the current level is a good price for a long-term investment.

One of the attractive factors about this ETF is that its portfolio can steadily keep changing and evolving as new, promising businesses enter that top 100 list.

I’ve been buying shares this week, I think this could be a really useful time to be investing because of the lower prices.

The post Why I think right now is a great time to buy the Betashares Nasdaq 100 ETF 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

• You might be surprised by how much the BetaShares NASDAQ 100 ETF pays in dividends
• Here’s why I think these ASX tech shares are buys in September
• 2 outstanding ETFs for ASX investors to buy next week
• Here’s why the BetaShares NASDAQ 100 ETF has tanked 4% today
• 3 excellent ETFs for beginner investors to buy

Suzanne Frey, an executive at Alphabet, 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Meta Platforms, Inc., Microsoft, Nvidia, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. and has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Nvidia, and PayPal Holdings. 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/skhRUKa

The Newcrest Mining Limited (ASX: NCM) share price has had a really tough time in 2022. Over the last six months, it’s down by 41%. Ouch.

Considering it’s one of the ASX’s biggest gold miners, that’s a painful drop.

Things are not turning out well for investors in gold miners this year. It’s strange because two factors are happening which are meant to help gold and gold miners shine.

Inflation is high, and gold is typically thought of as an inflation hedge. Gold is also seen as a defensive asset class that can provide stability while ‘risky’ assets like shares and property suffer. Both of those things are happening, yet Newcrest is languishing.

When looking at all of the returns this year within the S&P/ASX 200 Index (ASX: XJO), collectively, gold miners have not done well. The ASX 200 index itself is down 15% this year, while the Newcrest Mining share price is down 35%.

Time to jump on the gold miner?

Expert Elio D’Amato from Spotee Connect certainly doesn’t think the Newcrest share price is an opportunity.

On The Bull, he rated the business as a sell. He explained:

The US dollar is expected to remain stronger for longer, so the gold bulls may have to wait for eagerly anticipated inflation trades.

Gold production guidance of between 2,100,000 ounces and 2,400,000 ounces in fiscal year 2023 is weaker than we expected. All in sustaining costs of between US$930 an ounce and $US1,070 an ounce is higher than we anticipated. Other stocks appeal more at this time.

In its FY22 result, Newcrest gave that guidance and also explained what was included in that all-in-sustaining cost (AISC) expenditure.

Newcrest said the cost guidance includes approximately 6% to 8% of inflationary impacts to operating costs, 12 months of costs relating to Brucejack and the impact on costs of increased mining and throughput rates at Cadia and Lihir.

The miner also stated:

Continued pressure on capital costs is expected due to competition for labour from infrastructure projects together with the acute inflationary pressures experienced globally across a range of input costs such as energy and steel, which has been factored into the FY23 guidance.

Newcrest uses multiple levers to manage operating and capital cost pressures in the current inflationary environment and continues to evaluate cost estimates as it progresses its feasibility studies.

This guidance comes after an 8% drop in revenue and a 27% decline in earnings per share (EPS) in FY22.

However, perhaps unsurprisingly, management is confident about the future. The leadership pointed to its global organic growth portfolio, with Cadia, Red Chris, Havieron and Lihir all expected to reach key study milestones throughout FY23.

It was also noted that the business has a “substantial and increasing exposure to copper”, which was described as a critical metal of the future with a “positive long-term outlook that will allow” the company to participate in the decarbonisation global shift.

Newcrest share price snapshot

Over the past month, Newcrest shares have fallen 9%. They are also down 31% over the past 12 months.

The post Newcrest share price hits 6-year low. Expert predicts more pain to come 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

• 5 things to watch on the ASX 200 on Monday
• The market has been hating on this ASX 200 share in 2022. Here’s why I still love it
• Why is the De Grey share price struggling this week?
• 5 things to watch on the ASX 200 on Friday
• Why Imugene, Link, Newcrest, and Zip shares are dropping

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

from The Motley Fool Australia https://ift.tt/NlHmE2R