Tag: Motley Fool

  • Goldman Sachs warns that the New Hope share price could crash 40%

    Coal miner with dirty face in a mine

    Coal miner with dirty face in a mine

    The New Hope Corporation Limited (ASX: NHC) share price was on form again on Friday.

    The coal miner’s shares continued their impressive run with a 3% gain to $6.33.

    That’s despite the ASX 200 index falling 1.9% following a broad market selloff.

    Today’s gain means that the New Hope share price is now up a remarkable 173% since the start of the year.

    Can the New Hope share price keep rising?

    One leading broker believes the New Hope share price is now seriously overvalued following its strong run.

    According to a note out of Goldman Sachs, its analysts have put a sell rating and $3.80 price target on the coal miner’s shares.

    This implies potential downside of 40% for investors over the next 12 months.

    What did the broker say?

    Goldman was pleased with New Hope’s full year results release from earlier this week. It commented:

    NHC reported FY22 underlying EBITDA of A$1.58bn (vs. unaudited $1.56bn pre-disclosed) for FY22 and NPAT of A$1.0bn, in-line with GSe and 1% ahead of VA consensus of A$992mn. […] NHC paid a final dividend of A56cps (incl. A25cps special), slightly below GSe of ~A60cps and took total payout to ~70% of NPAT. NHC stated they expect to continue paying special dividends but are also assessing share buybacks as they believe NHC stock is undervalued.

    However, the broker doesn’t agree with management on the New Hope share price being undervalued. It explained:

    We rate NHC a Sell on: 1. Valuation: The stock is trading at c.2.0x NAV (A$3.00/sh) and is discounting a long-run thermal of >US$145/t (real) vs. our US$75/t estimate (based on our view of long run global marginal costs).

    2. Only modest near term production growth: while NHC operates the low cost high margin 10Mtpa Bengalla thermal coal mine in NSW, the company has only modest production growth potential at Bengalla (which we already model), and its 5Mtpa New Acland Stage 3 (NAC3) project is still pending the final approval of the Associated Water Licence. At full production Malabar will only deliver 0.9Mtpa of met coal to NHC.

    It is also worth noting that Goldman Sachs doesn’t expect coal prices to remain as high as they are for too much longer. This could put pressure on its shares if its prediction proves accurate. It commented:

    NHC expect thermal coal prices to remain at current/elevated levels (>US$400/t) for at least the next 6-12 months (vs. GSe US$200/t for CY23) and noted the upcoming Northern hemisphere winter as a driver.

    The post Goldman Sachs warns that the New Hope share price could crash 40% appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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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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  • 3 ASX All Ords shares that marched higher on Friday

    A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price todayA graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today

    The S&P/ASX All Ordinaries Index (ASX: XAO) closed in the red on Friday, down 1.9% to just below 6,789 points. But as is often the case, a few ASX All Ords shares defied the index and ramped higher today.

    Let’s take a look.

    KMD Brands Ltd (ASX: KMD)

    The first All Ords share we’ll take a look at today is KMD Brands. Formerly known as Kathmandu Holdings, KMD Brands is the mob behind popular retail brands Kathmandu, Rip Curl, and Oboz. Today the KMD Brands share price had a 1.66% bump to 92 cents. There was no news from the company today. However, on Tuesday it released its FY22 full-year results and announced a final dividend of 3 NZ cents per share.

    KMD Brands reported a 6.5% bump to its gross underlying profit, compared to FY21, at NZ$576.7 million. But operating expenses were 12.2% higher, contributing to a 33.7% dip in underlying net profit after tax (NPAT). Given the impact of COVID lockdowns on ASX retail shares, perhaps the market expected worse and that’s why KMD shares have risen by almost 4% this week.

    Myer Holdings Ltd (ASX: MYR)

    Myer had a rocking day on the market closing up 3.5% to 59 cents. This one is a bit of a mystery though. There’s been no price-sensitive news from the All Ords retail giant today, or even this week.

    Last week Myer dropped its FY22 full-year report, in which the company revealed an NPAT of $60.2 million, 103.8% higher than FY21 (adjusted for Jobkeeper). It declared a final dividend of 2.5 cents per share. So far in FY23, CEO John King says Myer has had “… our best sales start to a financial year since 2006”.

    Paradigm Biopharmaceuticals Ltd (ASX: PAR)

    This ASX biotech share was another star performer amongst the All Ords shares today. The Paradigm Biopharmaceuticals share price rose by 1.6% to $1.27. While today’s price movement is also a mystery, we note that a change of director’s interest notice was filed on Monday for CEO and Founder Paul Rennie.

    The notice showed Rennie participated in the company’s recent entitlement offer by purchasing 100,410 shares through a personal investment trust and another 133,435 shares through his superannuation fund. The total consideration was more than $300,000. The entitlement offer raised $66 million. The capital raise will be used to support the company’s phase 3 clinical program and other activities through to 2024.

    The post 3 ASX All Ords shares that marched higher on Friday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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  • 2 ASX 200 retail shares ravaged following US rate decision

    Falling ASX retail share price represented by sad shopper sitting in mall.Falling ASX retail share price represented by sad shopper sitting in mall.

    ASX 200 retail shares JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) had a rough end to the week.

    JB Hi-Fi shares fell 4.36% on Friday, while Harvey Norman shares descended 4.66%. For perspective, the S&P/ASX 200 Index (ASX: XJO) slipped nearly 1.9% on Friday.

    Let’s take a look at what may have impacted ASX 200 retail shares.

    Interest rate rise

    ASX 200 shares, including retail shares, struggled on Friday following grim news out of the United States. The US Federal Reserve lifted interest rates by 0.75%. More rate hikes are planned and there are fears of a recession.

    Higher interest rates not only increase borrowing costs for companies, they can also dampen retail spending as consumers have less available cash.

    The Reserve Bank of Australia often takes its lead from the US Federal Reserve. Commenting on the prospect of the RBA lifting rates in the Australian Financial Review, BetaShares chief economist David Bassanese said:

    It now seems more likely than not that the RBA will lift rates by 0.5 per cent in October.

    Meanwhile, AMP’s Shane Oliver is predicting retail sales will rise “just 0.1% in August” after lifting 1.3% in July, the publication reported.

    Share price snapshot

    The JB Hi-Fi share price has fallen nearly 16% in a year, while Harvey Norman shares have slipped nearly 19%.

    For perspective, the ASX 200 has fallen nearly 11% in the past year.

    The post 2 ASX 200 retail shares ravaged following US rate decision appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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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  • Down 65% from its all-time high, are Domino’s shares a deliciously-priced buy?

    Young couple having pizza on lunch break at workplace.Young couple having pizza on lunch break at workplace.

    Shares of Domino’s Pizza Enterprises Ltd (ASX: DMP) have faltered in 2022. Domino’s shares now rest at 52-week lows to finish the week of trade.

    After an impressive run, shares in the pizza giant reached all-time highs in September 2021, before tumbling in vertical fashion, much like many other ASX shares.

    Domino’s now rests at $53.25 per share, more than 67% off the previous high of $161.98.

    TradingView Chart

    What’s happened to Domino’s shares?

    It’s been a series of unfortunate events for the pizza giant. Most prominently, the broad sell-off in equity markets has been unkind to the share.

    With the shift away from risk assets this year, more safe-haven assets such as the US dollar have flourished, leaving shares well behind.

    Spurring the downside has been two central themes – inflation, and rising interest rates. Neither are good for retailers such as Domino’s and their shares.

    As such, the stage was already set for a difficult year come 2022.

    Then, the global pizza brand came in with a weak set of numbers in its FY22 results. It grew sales 4.6% globally year over year to $3.92 billion. However, this carried through to a 12.5% decrease in after-tax profit to $165 million.

    This is classic of the impacts of inflation – greater revenues, due to the higher price of units sold, however, these costs are also recognised at the margin level for the company.

    As a result of its FY22 performance, investors haven’t been keen to nibble at each consecutive drop in its share price.

    Despite this, brokers still advocate buying the stock. Seven out of 14 analysts recommending it’s a buy, and the remaining seven saying to hold, per Refinitiv Eikon data.

    The consensus price target from this list is $79.57, down from $89.35 in June. Nonetheless, the price target suggests a correction in the Domino’s share price, should they be right.

    Citi certainly feels it’s a buy, and remains positive on the medium- to long-term outlook for the company. Consequently, it feels investors could be getting shares at a good price when fishing at its 52-week lows.

    Citi values the company at $84.40, well above the consensus target.

    Alas, we will have to wait and see the next moves yet, and if the analyst’s projections eventually are reflected in Domino’s share price.

    The post Down 65% from its all-time high, are Domino’s shares a deliciously-priced buy? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow 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 Dominos Pizza Enterprises 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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  • The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why?

    a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.

    The Fortescue Metals Group Limited (ASX: FMG) share price has beaten the broader market by a significant margin this afternoon.

    Shares in the iron ore miner closed 1.33% higher at $16.76 on Friday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) was steep in the red, posting a hefty 1.87% loss.

    The S&P/ASX 200 Materials Index (ASX: XMJ) also struggled, closing the day with a 0.49% loss.

    So why is Fortescue green in a sea of red?

    Investors may be staying optimistic amid the company’s massive $9.2 billion decarbonisation plans that were announced on Tuesday. Fortescue intends to emit zero terrestrial emissions from its iron ore operations by 2030, which will confer the company several benefits.

    First, it will reportedly derisk its product as governments use increasingly heavy-handed tactics to get emissions under control, including by issuing penalties. Staying behind the ball now may prevent Fortescue from being blindsided by fines and possible restrictions on its operations later.

    There may also be more tangible benefits for the company to offer a net-zero product.

    Increased demand

    ASX lithium shares like Vulcan Energy Resources Ltd (ASX: VUL) are building an economic moat by exploring lithium geothermal extraction methods that release no emissions into the atmosphere. It’s posited that Vulcan’s output may command higher prices over lithium produced from hard-rock mining.

    A carrot and stick situation may unfold where governments may favour or even enforce that companies buy from aspiring net-zero producers such as Fortescue and Vulcan. This, in turn, would shrink the total supply of net-zero elements and commodities, creating further scarcity.

    My Fool colleague James also notes that Fortescue expects to realise significant cost savings from the transition to net zero.

    Decreased costs

    Fortescue expects to save $US818 million per year by 2030. It’s expected to recoup its multi-billion dollar investment by 2034.

    Cost savings will reportedly be seen from the company moving away from fossil fuels and instead relying on renewable energy generators. Its savings will also be boosted by Australian carbon credit units and not paying carbon offset purchases.

    In practice, the company will deploy renewable energy generators and green-powered vehicles for its fleet and mining equipment. Studies are underway to harness wind and solar energy sources at its exploration sites.

    Fortescue share price snapshot

    The Fortescue share price is down 15.57% year to date. Meanwhile, the S&P/ASX 200 Index is down 13.37% over the same period.

    The company’s market capitalisation is $51.6 billion based on the current share price.

    The post The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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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 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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  • Allkem share price sinks 5% amid Mexico lithium deposit speculation

    Falling ASX share price represented by shocked Investor looking at phone.Falling ASX share price represented by shocked Investor looking at phone.

    The Allkem Ltd (ASX: AKE) share price has had a tough end to the week.

    Allkem shares fell 5.3% today to $14.84. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) dropped 0.49% today.

    Let’s take a look at what could be impacting the Allkem shares.

    Allkem among ASX lithium shares to struggle on Friday

    The Allkem share price may have fallen today, but it was not alone among ASX lithium shares. The Core Lithium (ASX: CXO) share price fell 1.96% today, while Sayona Mining Ltd (ASX: SYA) fell 5% and Pilbara Minerals Ltd (ASX: PLS) dropped 1.82%.

    News out of Mexico could add to lithium supply in the future, potentially putting downward pressure on lithium prices.

    The nation has a lithium deposit that could be worth billions, Reuters reports.

    A lithium deposit in the Mexican state of Sonora is said to be worth 12 trillion Mexican pesos, according to the government. This is equivalent to $909 billion Australian dollars.

    On 24 August, Mexican president Andrés Manuel López Obrador set up a state company, LitioMx, to mine lithium. This is due to operate in February, 180 days after the decree to set up the new company was published.

    The Allkem share price hit a yearly high of $15.99 on 13 September. Allkem is involved in multiple lithium projects including the Olaroz, Sal de Vida and Cauchari projects in Argentina, the Mt Cattlin project in Western Australia, the Naraha project in Japan, and the James Bay project in Canada.

    Bell Potter rates Allkem as a buy and has placed a $21.58 price target on the company’s share price.

    AKE share price snapshot

    The Allkem share price has lifted 67% in the past year, while it has gained 43% year to date.

    For perspective, the ASX 200 Materials Index has gained nearly 0.9% in the past year.

    Allkem has a market capitalisation of $9.46 billion based on the current share price.

    The post Allkem share price sinks 5% amid Mexico lithium deposit speculation appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Allkem Limited right now?

    Before you consider Allkem Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Allkem Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of September 1 2022

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

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  • Could this be good news for Flight Centre shares?

    Two adults and a child look happy as they walk through airport with child sitting on suitcase.Two adults and a child look happy as they walk through airport with child sitting on suitcase.

    The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red today, but could the renewed interest in international travel spell good news?

    The travel company’s share price closed trading at $15.41, a 2.96% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished down 1.92% today.

    Let’s take a look at the outlook for Flight Centre shares.

    International traffic numbers increase

    Flight Centre shares may be down today, but they are not alone among ASX travel shares. The Qantas Airways Limited (ASX: QAN) share price is down 1.91% today, while Webjet Limited (ASX: WEB) shares descended 3.04%.

    International passenger traffic in July soared 1229.9% from 154,692 in July 2021 to 2.057 million in July 2022, BITRE data shows. However, traffic in July was 45% lower than July 2019.

    Overall, passenger traffic for the year ended July 2022 was 8.425 million, nearly 600% more than the year ended July 2021. But this is still 80% less than the 42.146 million passengers who travelled to and from Australia in the year ended July 2019. However, the international borders only fully opened on 21 February this year.

    Meanwhile, demand for passports may also be a good sign for ASX travel shares. Passport applications are averaging 12,000 a day, according to a Foreign Affairs and Trade department spokesman and cited by 7 News. This compares to 7,000 to 9,000 prior to COVID-19.

    Flight Centre was the most shorted share on the ASX last week, as my Foolish colleague James reported Monday.

    Flight Centre share price snapshot

    The Flight Centre share price has fallen 23% in the past year, while it has lost 12% in the year to date.

    In comparison, the ASX 200 has shed 10.8% in the past year.

    Flight Centre has a market capitalisation of more than $3 billion based on the current share price.

    The post Could this be good news for Flight Centre shares? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Flight Centre Travel Group Limited right now?

    Before you consider Flight Centre Travel Group Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre Travel Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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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  • This board member pulled the trigger on more Mesoblast shares

    A middle-aged woman sits in contemplation over a tablet device considering information about ASX shares and deep in thought.A middle-aged woman sits in contemplation over a tablet device considering information about ASX shares and deep in thought.

    The Mesoblast Limited (ASX: MSB) share price is down 2.3% today to 85 cents.

    This fall is in line with the S&P/ASX All Ordinaries Index (ASX: XAO), which has dipped 2.26% at the time of writing.

    Which director has bought Mesoblast shares?

    The only news out of Mesoblast this month relates to two company directors buying more shares.

    The latest purchase is by William Burns, who is the non-executive vice chair of the ASX biotech company.

    Burns picked up 22,000 shares on 13 September. He paid an average price of approximately 91 cents per share for a total consideration of $20,020.

    According to the change of director’s interest notice, this takes his total holdings to 85,000 shares and 220,000 options.

    About a week earlier, Mesoblast’s newest director Jane Bell more than doubled her holdings.

    As my Foolish colleague James reported, the non-executive director purchased 133,333 shares on market on 7 September.

    According to the change of director’s interest notice, she paid an average price of approximately 83 cents per Mesoblast share.

    That equates to a total consideration of $109,999.73. This increased her holdings to 247,618 shares.

    As James points out, ASX investors generally perceive insider buying as a positive sign. After all, no one knows a company better than its directors, and Bell is certainly optimistic about Mesoblast’s future.

    When appointed in August, Bell said:

    I look forward to joining the Mesoblast Board at such an exciting stage in the company’s transition to a commercial organization, with its deep cell therapy product pipeline.

    The potential FDA approval and launch in the US market of the first allogeneic cell therapy is an incredibly exciting opportunity for me to be involved with and I look forward to using my background and experience to make a strong contribution.

    Mesoblast share price snapshot

    Mesoblast shares are down 51% over the past 12 months. In 2022, they have fallen 39%.

    The ASX biotech share is currently trading close to its 52-week high of 88 cents.

    The post This board member pulled the trigger on more Mesoblast shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Mesoblast Limited right now?

    Before you consider Mesoblast Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mesoblast Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor Bronwyn Allen has positions in Mesoblast 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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  • Why is the Liontown share price diving 5% on Friday?

    Rede arrow on a stock market chart going down.Rede arrow on a stock market chart going down.

    The Liontown Resources Limited (ASX: LTR) share price is powering down on Friday despite no announcements from the company.

    At market open, shares in the lithium producer were trading around $1.62 before quickly heading south as the day went on.

    Currently, the share price is fetching at $1.568 apiece, down 4.71%.

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

    What’s driving Liontown shares lower?

    Investors are bidding down the Liontown share price as the market digests the latest rate hike by the US Fed Reserve.

    This could potentially mean that Australia also will lift interest rates yet again in 2 weeks’ time.

    The negative sentiment appears to be impacting the wider materials sector.

    For context, the S&P/ASX 200 Materials Index (ASX: XMJ) is down by 1.01% today, and 3.81% for the week.

    In addition, a large number of lithium shares are also in the red.

    Allkem Ltd (ASX: AKE) and Sayona Mining Ltd (ASX: SYA) are both down 6%.

    Earlier this week, Liontown provided an update to the ASX stating it further strengthened its board.

    The inclusion of highly experienced lawyer Adrienne Parker will bring legal, commercial and business knowledge to Liontown.

    Management has been busy progressing the development of the Kathleen Valley Lithium Project in Western Australia. First production is expected to be achieved sometime in Q2 2024.

    Liontown shares fell 2.66% despite the positive news as concerns weighed in about a forced recession from the US central bank.

    Liontown share price summary

    Despite its recent falls, the Liontown share price is up 10% over the past 12 months.

    When looking at year-to-date, however, the share is down 5%.

    Based on today’s price, Liontown commands a market capitalisation of approximately $3.61 billion.

    The post Why is the Liontown share price diving 5% on Friday? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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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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  • Here are the 3 most heavily traded ASX 200 shares on Friday

    blue arrows representing a rising share price ASX 200

    blue arrows representing a rising share price ASX 200

    Well, it’s turning out to be a rather awful end to the trading week this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has shed a horrible 2.03%, putting the index down to just around 6,565 points.

    But instead of letting that ruin our weekends, let’s instead take a look at the ASX shares that are currently at the peak of the ASX 200’s share trading volume charts, according to investing.com.

    The 3 most traded ASX 200 shares by volume this Friday

    Cleanaway Waste Management Ltd (ASX: CWY)

    A relatively rare appearance from waste disposal company Cleanway marks our first highly-traded ASX 200 share today. So far this Friday, a hefty 11.2 million Cleanaway shares have been recycled on the markets. We’ve seen no news out of the company so far during this session.

    So perhaps this huge volume can be put down to the movements of the Cleanaway share price itself. Cleanaway shares have taken a hit today, but are still outperforming the broader markets with their loss of 1.64% at $2.70 a share.

    Telstra Corporation Ltd (ASX: TLS)

    Next up this Friday is ASX 200 telco Telstra. A sizeable 15.27 million Telstra shares have been called in so far during today’s session. Telstra hasn’t been immune to the woes of the share market today either.

    The telco has presently lost a sobering 1.95% at $3.76 per share. Perhaps the woes revealed today in the broader telco space are also influencing Telstra’s share trading volumes as well.

    Pilbara Minerals Ltd (ASX: PLS)

    Our third, final and most traded ASX 200 share today is none other than lithium producer Pilbara Minerals. This Friday has seen a notable 26.23 million Pilbara shares bought and sold on the share market thus far. This appears to be the result of some potent volatility in the Pilbara share price itself.

    The company initially opened well in the green this morning, rising as high as $5.03 a share. But the losses of the markets appear to have quickly sapped investors’ confidence. Pilbara shares are now down a nasty 3.04% at just $4.79 a share.

    The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation 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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