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The Bank of Queensland Limited (ASX: BOQ) share price has been falling in recent weeks. It’s down almost 10% since August 2022 and this year it has dropped by 17%.

As one of S&P/ASX 200 Index‘s (ASX: XJO) bank shares, readers may be wondering why BOQ shares are falling when interest rates are rising. Aren’t banks meant to earn more profit in a rising interest rate environment?

It’s true that bank profitability has been falling as interest rates hit record lows. The competition was and perhaps is, fierce in the sector. This was hurting the net interest margins (NIM) of the banks.

What’s a NIM? It’s a profitability measure to show the difference between the interest rate that banks are lending out money for, compared to the interest rate cost of funding those loans (funding can come from sources like savings accounts).

NIMs may well rise in the coming reporting periods for banks like BOQ, however, investors may have been initially taken off guard by how quickly central banks were planning to increase interest rates.

Some investors may be worried about how Australian households are going to manage significantly higher mortgage payments.

Is this bad news for the BOQ share price?

Tim Haselum from Catapult Wealth doesn’t think so, in-fact he rated BOQ as a buy on The Bull. Why? Haselum said:

We believe the banks are facing reducing loan volumes, but we aren’t concerned about impairments, as households appear to be in sound financial shape. We like the ME Bank recovery story and see further synergies ahead. Potential net interest margin improvements amid the company’s undemanding price/earnings multiple presents a buying opportunity.

So, in his opinion, investors have become too fearful about the financial consequences of rising interest rates.

What is the valuation?

Haselum mentioned that the company has an “undemanding’ price/earnings (P/E) ratio.

According to the estimates on CMC Markets, the bank is expected to generate earnings per share (EPS) of 74 cents in FY22 and 73.1 cents in FY23.

So, based on those numbers, the BOQ share price is valued at 9.3 times FY22’s estimated earnings and 9.4 times FY23’s estimated earnings.

Don’t forget about the BOQ dividend

Banks like to pay attractive dividends to shareholders, so let’s have a look at what BOQ is expected to pay over the next couple of financial years.

According to CMC Markets, BOQ is expected to pay a grossed-up dividend yield of 9.5% in FY22 and 10.1% in FY23.

The post Down 17% so far this year, is the Bank of Queensland share price a cheap buy? appeared first on The Motley Fool Australia.

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More reading

• 2 bargain finance ASX shares to buy (not big banks): experts
• Down 7% in a month, are Bank of Queensland shares a bargain buy?
• Do Bank of Queensland shares pay better dividends than the ASX 200 big four?
• Analysts name 2 ASX 200 dividend shares to buy
• Here’s what a top broker is saying about the Bank of Queensland share price

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.

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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part two of this edition, we’re joined by Jesse Curtis, fund manager of the $4.1 billion Centuria Industrial REIT (ASX: CIP), Australia’s largest domestic pure-play industrial real estate investment trust. Today, Curtis looks at the threats and opportunities ahead for investors in listed industrial property.

The Motley Fool: In the first part of our interview, you mentioned property can act as an inflation hedge. And that 20% of the Centuria Industrial REIT’s portfolio is linked to CPI rent reviews. How do you see interest rates playing out over the next 12 to 24 months?  

Jesse Curtis: We acknowledge that inflation has changed the interest rate environment and created a level of uncertainty right across the market. What we’re assuming in our FY23 funds from operation [FFO] guidance is an average interest rate of 3% over the course of FY23. Whilst we might see short-term volatility, we expect that we’ll see interest rates normalise towards the back end of next year.

It’s also important to note that our gearing currently sits at 33% at an average interest coverage ratio of 5.4%. Both provide significant headroom to our debt covenants.

MF: In FY23, CIP expects to pay a dividend yield of 16 cents per share (cps). That would mark another year with a yield above 5%. Are you adjusting your investment and leasing strategies in the logistics markets to achieve this with higher rates and inflation in mind?  

JC: We’ve maintained a consistent strategy since taking over management of the industrial fund five years ago. And that’s to own a high-quality portfolio of urban industrial infill assets where we see the highest tenant demand and the lowest amount of supply that can be added. And that’s enabled us to deliver income and capital growth to our investors.

But in the higher inflation environment with limited vacancy across industrial markets, what we’re finding is the opportunity to extract higher rental growth across the portfolio. That can be done via re-leasing or by executing on our value add strategies. With near zero vacancy in our portfolio, we’re finding we can really stretch that rental growth theme.

MF: Have you noticed an increase in tenants struggling to meet their rental obligations?

JC: We’ve focused on building a portfolio with very strong customers paying the rent. The likes of Woolworths Group Ltd (ASX: WOW), Telstra Corp Ltd (ASX: TLS), Australia Post and Arnott’s. We have blue-chip customers paying the rent.

As part of our strategy, we’ve sought to add short WALE [weighted average lease expiry] urban infill assets in the portfolio that give our investors the opportunity to capture that rental growth.

So, we have a nice balance of secure income and also the opportunity to capitalise on our near-term expiring leases to capture strong rental growth in the market.

Overall, we have occupancy of over 99% and a WALE of more than eight years providing good income certainty.

MF: Can you share some of your other successful strategies?

JC: What’s been a really successful strategy for us has been consolidating landholdings in these urban infill markets. We now have 10 examples across the portfolio where we’ve consolidated either neighbouring or precinct assets.

This provides our investors with a number of opportunities. On one side, it allows us to leverage our network, in effect, by being able to move tenants within the portfolio and within markets by having diversity in both size and asset type. This strategy reduces downtime and increases our tenant retention.

On the other side, it also provides our investors with long-term development opportunities. By consolidating sites of scale, not only does this provide the opportunity to develop more modern industrial facilities but also maintains holding income on the existing buildings, providing us with great flexibility.

MF: What’s the biggest threat for investors in listed industrial assets in the year ahead?

JC: No one can hide from higher interest rates. The biggest risk is if the RBA doesn’t provide a soft landing and if we start to see inflation tick up.

MF: And what’s the biggest opportunity?

 JC: The market for industrial remains extremely strong.

We’ve got structural tailwinds, such as e-commerce, that will continue to drive tenant demand. There’s no greater correlation than increased e-commerce spend and the need for warehousing to store products. We’re going to continue to see that demand coming through the market.

We’ve also seen a trend of onshoring or re-shoring of both manufacturing and storage operations. Every tenant we speak to needs more space to store more inventory on hand and prevent supply chain disruptions.

We’re seeing very large e-commerce brands, as well as local brands, making next day or second-day delivery promises within their product range. They need warehousing space close to a population in order to be able to deliver on those promises. That’s resulted in a lot more storage happening in infill industrial markets, where CIP has focused its portfolio, due to proximity to a large population within a short drive time.

These are all long-standing trends that will provide the environment for strong industrial rental growth.

**

If you missed part one of our interview series with Jesse Curtis, you can find that here.

(You can find out more about the Centuria Industrial REIT here.)

The post The biggest threats and opportunities for ASX industrial REITs revealed: fund manager appeared first on The Motley Fool Australia.

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More reading

• How this ASX 200 REIT is delivering 5% plus dividend yields: fund manager

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Don’t worry, you’re not the only one feeling this way.

This year has indeed been scary and confusing for investors of ASX shares. Inflation, interest rates, wars and the economy are all playing on our minds and we’ve seen most non-mining ASX shares plunge in value.

In uncertain times like these, one way to clear the head is to buy stocks of companies that are leaders in their markets and integral to the lives of Australians.

This reduces doubt around volatility of demand if the economy does go backwards from the pressures of rising mortgage repayments.

This week some experts picked out exactly two such ASX shares to buy right now:

A quality business going for cheap

Online jobs classifieds site Seek Limited (ASX: SEK) provides services that most adult Australians would have used at some stage.

The share price, though, has lost almost 40% so far this year.

For Catapult Wealth portfolio manager Tim Haselum, this dip just presents a golden buying opportunity.

“The shares have fallen from $24.64 on August 11 to trade at $20.96 on September 15. We believe Seek offers value at these levels,” Haselum told The Bull.

“Investors can consider buying this employment and education company on weakness, as it was recently trading below pre-COVID-19 levels at a time of tight labour markets.”

The drop in the Seek share price comes even as the underlying business is doing fine, according to Haselum.

“The company is investing in its IT systems. Revenue from continuing operations grew by 47% in fiscal year 2022.”

SG Hiscock portfolio manager Hamish Tadgell told The Motley Fool earlier this month that he’s warm on Seek shares after the recent discounting.

“The market’s clearly been debating how much this company could be priced or impacted for a recession… Seek did very well coming out of COVID, really tight labour markets. Everyone’s looking to put people on and jobs,” he said.

“We think it’s a quality business with some very strong longer-term growth prospects.”

Headwinds will pass soon

Australians love an outdoor lifestyle. And such recreation became even more popular during the COVID-19 years as the pandemic forced consumers to holiday within their own states.

Four-wheel-drive accessories provider ARB Corporation Limited (ASX: ARB), therefore, did very well out of the lockdown era. The stock skyrocketed a phenomenal 307% from March 2020 to November 2021.

But as the world shifted to a post-COVID lifestyle in 2022, ARB shares have dropped more than 44%.

Ouch.

Wilsons investment advisor Peter Moran isn’t too worried about ARB’s prospects though.

“This 4-wheel drive accessories supplier has been impacted by a shortage of new vehicles, supply chain issues and staff sick leave due to COVID-19,” he said.

“However, growth is expected to resume as these issues subside.”

Moran’s team is also a fan of the company’s expansion progress outside of Australia. 

“There is potential for additional growth through a recently announced commercial partnership with Toyota North America,” he said.

“This adds to its partnership with Ford, which is still in its early stages. We retain an overweight rating.”

The post ‘Offers value’: Experts pick 2 quality ASX shares to buy at a 40% discount appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in September 2022
• 2 discounted ASX shares I’d buy now and one I wouldn’t touch: expert
• 5 things to watch on the ASX 200 on Wednesday
• Morgans names 3 of the best ASX shares to buy in September
• Ready for a storm: 3 ASX 200 shares with ironclad balance sheets

Motley Fool contributor Tony Yoo 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 ARB Corporation Limited and SEEK 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 Pilbara Minerals Ltd (ASX: PLS) share price will be on watch on Wednesday.

This follows the release of the lithium miner’s latest results from its battery material exchange (BMX) auction.

Pilbara Minerals share price on watch following BMX auction

As a reminder, Pilbara Minerals’ BMX digital auction is held monthly and allows buyers to bid for 5,000 dry metric tonnes (dmt) of lithium with a target grade of ~5.5% lithia.

Many lithium watchers keep a close eye on this auction as it gives the market an idea of what’s happening with lithium prices.

In July, Pilbara Minerals reported that it accepted the highest bid of US$6,188 per dmt for delivery in August.

It then experienced an increase in prices in August, receiving a winning bid of US$6,350 per dmt for delivery in September.

What’s the latest?

The good news for the Pilbara Minerals share price today is that the company’s latest BMX auction was a success.

According to the release, another cargo of 5,000 dmt at a target grade of ~5.5% lithia was presented for sale on the digital platform, with delivery expected from mid-October.

Management advised that strong interest was received in both participation and bidding by a broad range of qualified buyers with a total of 22 bids received online during the 30-minute auction window.

While the number of bids has fallen from 67 a month earlier, this hasn’t stopped the company commanding a higher price. It advised that it intends to accept the highest bid of US$6,988 per dmt, which is an increase of 10% month on month.

On a pro rata basis for lithia content (and adjusted to be inclusive of freight costs), this equates to a price of ~US$7,708 per dmt (SC6.0, CIF China basis).

As with previous auctions, the company notes that the bidder is now required to enter a sales contract within 24 hours, pay a 10% deposit by the end of the week, and produce an irrevocable letter of credit from a recognised bank by late September.

The post Pilbara Minerals share price on watch following BMX lithium auction appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Is this prediction great news for ASX lithium shares?
• Is this the new frontier for ASX lithium shares?
• Pilbara Minerals share price racks up ninth all-time high for September
• Up 50% in a month, does the Pilbara Minerals share price ‘reflect too much optimism’?

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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 1.3% to 6,806.4 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to give back most of yesterday’s gains on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 83 points or 1.2% lower this morning. On Wall Street, the Dow Jones fell 1%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 0.9%. Investors were selling stocks ahead of the Fed’s interest rate decision.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor day after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.8% to US$84.19 a barrel and the Brent crude oil price has fallen 1.4% to US$90.73 a barrel. Traders appear concerned that rising rates could impact demand.

Pilbara Minerals’ BMX auction

The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch on Wednesday. This follows the release of the lithium miner’s latest digital lithium auction results. According to the release, the company intends to accept the highest bid of US$6,988 per dmt, which is an increase of 10% month on month.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.3% to US$1,673.4 an ounce. Traders were concerned that the Fed could make a bigger than expected rate hike.

Premier Investments results

The Premier Investments Limited (ASX: PMV) share price will be on watch on Wednesday when the retail conglomerate releases its full year results. According to a note out of Goldman Sachs, its analysts are expecting the Smiggle owner to report revenue of $1,416 million and EBITDA of $480.4 million.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Is this prediction great news for ASX lithium shares?
• Is this the new frontier for ASX lithium shares?
• Pilbara Minerals share price racks up ninth all-time high for September
• Have ASX 200 energy buyers missed the boat on Woodside shares?
• Up 50% in a month, does the Pilbara Minerals share price ‘reflect too much optimism’?

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 recommended Premier Investments 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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Renewable energy is undoubtedly a key thematic on the world stage right now. The shift to so-called ‘green’ sources of power generation has sparked some fairly interesting trends as well.

We’ve all heard about lithium-ion (li-io) batteries – it’s been hard not to – and the (emission-free) glamour that surrounds the electric vehicle space.

It’s no coincidence some of the best-performing ASX shares in 2022 are tied to lithium.

Then there are the other ‘traditional’ sources of renewable energy: solar, wind, geothermal, nuclear, etc.

It really is a new marketplace. Yet, the geopolitical fallback still involves hydrocarbons: oil and gas.

However, one form of clean energy you mightn’t be so familiar with is hydrogen.

Hydrogen is also doing the rounds and making a name for itself as a hot (or cold?) contender for top spot in the green energy stakes.

Let’s take a deep dive into the sector to strip out the fluff and put some flesh on the skeleton of the ASX hydrogen space. Read on.

Hydrogen for fuel?

Hydrogen is a chemical element with the easy-to-remember symbol ‘H’. It is, in fact, the lightest element on the periodic table.

In practical terms, it is a highly combustible and flammable gas that – like natural gas – can also be condensed into a liquid, albeit at roughly minus 253 degrees Celsius.

Hydrogen is found just about everywhere in nature. In particular, water (the classic H2O) and hydrocarbons, like methane, are very common sources.

The gas can also be produced from a variety of sources, such as natural gas, nuclear power, and even renewable energy like solar.

This gives rise to hydrogen’s ‘green’ credentials as hydrogen produced by electrolysis is a more energy-intensive process.

According to the United States Energy Department (USED), “Hydrogen is an energy carrier that can be used to store, move, and deliver energy produced from other sources”.

Hydrogen is also faring as a contender to power fuel cells of non-combustion engines. It can, as USED says, “power fuel cells in zero-emission vehicles”.

But just how efficient and effective is hydrogen at powering vehicles? And how does it stack up compared to ‘traditional’ fuel sources like oil?

Actually, quite well. According to USED:

A fuel cell coupled with an electric motor is 2–3 times more efficient than an internal combustion engine running on gasoline.

The energy in 2.2 pounds (1 kilogram) of hydrogen gas is about the same as the energy in 1 gallon (2.8 kilograms) of gasoline.

So then, does it have any advantage over lithium-ion electric vehicle batteries?

It seems to boil down to two factors: distance and refuelling time.

According to sustainability publisher youmatter: “While most fully electric vehicles can travel between [160–320 kilometres] on a single charge, hydrogen ones can get to [482 kilometres].”

However, there is far less of a gap when comparing premium lithium-ion EV batteries to the best hydrogen fuel cells. Indeed, most prominent EV manufacturers have opted to proceed down the battery-powered technology path.

Interesting debate

The push to discover and develop new forms of fuel for transport has sparked an interesting debate. While hydrogen is abundant on earth, it must undergo a process to separate it into its pure form, and then compress it into fuel cells.

Meanwhile, developing lithium-ion battery technology has led to a wave of new mining ventures on a global scale. Indeed, the International Energy Agency (IEA) says the auto industry will require 30 times the current amount of minerals to meet demand.

We are already seeing the effect this imbalance in supply and demand is causing. The price of lithium hit all-time highs again this week. There are also questions on the ongoing availability of these critical minerals.

And so the debate turns to what’s going to be the best at powering vehicles looking ahead, from a cost and feasibility perspective.

Australian mining figure Andrew Forrest, founder of Fortescue Metals Group Ltd (ASX: FMG), has been leading the hydrogen charge both on our shores and abroad via his investment vehicle Fortescue Future Industries (FFI).

Forrest is aiming to produce 15 million tonnes of green hydrogen by the year 2030, in line with targets set by the European Commission.

When quizzed on how he intends to finance the ambitious goal, he told The Financial Times Hydrogen Summit: “Look, I built $50 billion worth of iron ore infrastructure in the Pilbara…I am very used to executing large capital projects at a cost that is a fraction of what our competitors do,” The Financial Times reported.

He also took a shot at prominent lithium-ion battery proponents, adding: “[Tesla CEO] Elon Musk knows that almost every time a Tesla is plugged into almost every grid in the world, it is just burning coal and oil and gas…[and] it is doing nothing for the environment.”

What’s all this mean for ASX hydrogen shares?

Whilst there’s plenty to like about the future of hydrogen, it hasn’t yet made its mark on the ASX. In fact, the sub-sector continues to face heavy selling pressure.

Shares of Hazer Group Ltd (ASX: HZR), a company that conducts research and development into hydrogen-producing technology, are down 45% this year to date.

In July, the Hazer share price was crushed when the company reported a part for its commercial demonstration project had failed during fabrication.

Meanwhile, shares of Pure Hydrogen Corporation (ASX: PH2) have also headed south and are down 52% since January.

In contrast to the speculative mania setting the lithium/electric vehicle space alight over the past two years, the hydrogen fuel camp hasn’t secured anywhere near the hype.

The returns for both of these ASX hydrogen shares are plotted on the chart below against the S&P/ASX 200 Energy Index (ASX: XEJ), in red, over the past 12 months.

The diversion in performance is abundantly clear, perhaps as abundant as hydrogen is in the environment.

The post Are ASX hydrogen shares worth buying right now? appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price edges higher amid $9b ‘industry-leading decarbonisation strategy’
• Why China’s slowdown isn’t as bad as it looks for ASX 200 mining shares
• I would only sell my Fortescue shares if this happened
• 5 things to watch on the ASX 200 on Monday
• Could the latest news out of China bode well for ASX 200 iron ore shares?

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian share market has been flooded with lithium shares in recent years and it isn’t hard to see why.

With lithium found in abundance across the country and the white metal commanding mouth-watering prices, there’s a big incentive to dig it out of the ground.

The good news for many of these ASX lithium shares is that one leading analyst is tipping electric vehicle (EV) sales to grow exponentially in the coming years.

And given how the majority of lithium ends up being used in the EV market, this can only be good news for shares such as Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS).

What is being said about the EV market?

According to a note out of Cathie Wood’s ARK Invest, its analysts expect the electric vehicle market to grow quicker than expected.

Director of Research, Autonomous Technology & Robotics, Sam Korus, commented:

Delving into our EV forecast for the next five years, once again we can see the difference between the linear growth rates powering most forecasts and the exponential growth derived from Wright’s Law.

According to Wright’s Law, every cumulative doubling in the number of units produced results in a consistent percentage decline in costs that increases the affordability and uptake of new products like EVs. Driven from Wright’s Law increasing EV affordability, […] we are projecting that, in the absence of autonomous taxi platforms, EV sales will increase more than six-fold to 45 million units, or more than double the 20 million consensus expectation.

If this prediction is accurate, there sure will need to be a lot of lithium produced to build 25 million more EV batteries that consensus expectations.

This bodes well for Allkem and Pilbara Minerals, but also for lithium developers that are nearing the commencement of production such as Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR).

The post Is this prediction great news for ASX lithium shares? appeared first on The Motley Fool Australia.

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More reading

• Is this the new frontier for ASX lithium shares?
• Pilbara Minerals share price racks up ninth all-time high for September
• Up 50% in a month, does the Pilbara Minerals share price ‘reflect too much optimism’?
• Here are the top 10 ASX 200 shares today
• Why is the Allkem share price bolting out the gate on Monday?

Motley Fool contributor James Mickleboro has positions in Allkem 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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The Santos Ltd (ASX: STO) share price lifted today, but could it be on a trend to go higher in the future?

Santos shares rose 1.56% today to close at $7.83. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) jumped 1.99% today.

Let’s take a look at the outlook for Santos.

Is Santos a buy?

The Santos share price has soared 24% in the year to date. Santos shares hit a high of $8.76 in June before pulling back to the current share price.

Fairmont Equities managing director Michael Gable recommends the Santos share price as a “buy”.

In comments published on The Bull, Gable said he believes Santos will continue to benefit from higher energy prices “for some time”.

He added:

The share price is down from its June peak in response to a short-term retreat in the crude oil price.

However, this presents a buying opportunity, as the share price has recently firmed and is starting to resume its uptrend.

Santos is a major oil and gas producer. The company reported a 230% boost in statutory net profit after tax in FY22 to $1.167 billion.

Santos CEO Kevin Gallagher said: “Demand for our products has remained strong in both Australia and internationally, due to increased demand and shortages of supply from producing nations due to global underinvestment in new supply”.

Santos share price snapshot

Santos shares have soared 28% in the past year. In the last month, Santos shares have risen 4%, while they have lifted 1.56% in the past week.

Santos has a market capitalisation of more than $26 billion based on the current share price.

The post Is the Santos share price ‘starting to resume its uptrend’? appeared first on The Motley Fool Australia.

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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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It’s expected recycling of components used in batteries and electric vehicles will help keep EV production sustainable, according to the plans of overseas manufacturers.

Recycling is expected to ramp up once the production of new battery technologies reaches a critical mass, allowing enough components to be reused.

This could mean ASX lithium shares like Pilbara Minerals Ltd (ASX: PLS) and Argosy Minerals Limited (ASX: AGY) — and others with significant production volumes — may enjoy additional tailwinds as recycled materials keep production lines churning.

Some lithium shares, such as the world’s largest lithium producer Albermarle Corporation (NYSE: ALB), based in the US, are already planning to recycle components on Australian soil.

Recycling boom for lithium shares

Albemarle is planning a purpose-built 25,000-tonne production train exclusively for recycling materials from used batteries at its Kemerton lithium plant in Western Australia, as reported by the Australian Financial Review.

Recycling will also allow lithium shares like Albemarle to keep up with soaring demand. Albemarle CEO Kent Masters said the company cannot deliver products fast enough to keep up with its order book:

Every conversation I have with either battery or OEM [original equipment manufacturer] customers, they’re always asking, ‘when can I have more, and where can I get it? And they’re pounding the table around that, and we’re trying to respond to that.

Glencore PLC, a multinational commodities behemoth, has also invested heavily in the future recycling of lithium-ion batteries. The company has invested $US 200 million in Li-Cycle Holdings, a lithium-ion recycler. It’s made a joint venture agreement with Britishvolt to build a battery recycling plant in England, BusinessDay reported.

Recycling might not only fit with the green ethos of reducing emissions but could also become a necessity. Albermarle believes we’re just starting to see the wave of demand for lithium and EVs slowly build before the crest hits the market later this decade, as reported by The Australian.

Zero-carbon lithium creates further scarcity

Albermarle believes that lithium carbonate prices are expected to remain high with companies competing for limited supply. Adding to the scarcity is that governments may be likely to favour, or even impose, zero-carbon lithium extraction processes in a bid to reach emissions targets.

This, in turn, may increase the valuations of some ASX lithium shares such as Vulcan Energy Resources Ltd (ASX: VUL). The company is aiming to use environmentally-friendly geothermal extraction methods to produce lithium. It could see Vulcan’s product trading at a ‘green premium’ in the future.

The post Is this the new frontier for ASX lithium shares? 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 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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Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is the company behind the Altium Designer printed circuit board design (PCB) software.

Altium’s software is regarded as the best in the industry and is used by companies and organisations such as BAE Systems, Dell, Microsoft, NASA, and Tesla for the design of the PCBs found in electronic devices.

The company also has complementary businesses including Nexus and Octopart. The latter is a search engine for electronic and industrial parts, which has been a very strong performer over the last 12 months thanks to supply chain disruption.

Looking ahead, management remains very positive on its outlook and continues to target US$500 million in revenue by 2026. This will be more than double FY 2022’s revenue of US$220.8 million.

The team at Jefferies also appears confident on the company’s outlook. Its analysts currently have a buy rating and $38.13 price target on its shares. 

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share that has been tipped as a buy is software company Readytech.

It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

It highlights that its software brings together the best in people management systems to help customers navigate complexity, while also delivering meaningful outcomes.

Like Altium, the company has set itself some bold growth targets. Readytech is aiming for FY 2026 revenue of $140 million to $160 million. The top end will be double FY 2022’s revenue of $78.3 million.

Goldman Sachs appears confident the company will get there. In fact, it is forecasting revenue of $143 million in FY 2025, a year ahead of target. No forecast has been made for beyond that year, but the broker’s estimates appear to imply that it expects Readytech to hit the top end of its guidance range.

Goldman Sachs has a buy rating and $4.30 price target on its shares.

The post 2 top ASX growth shares that experts say are buys appeared first on The Motley Fool Australia.

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More reading

• 2 fantastic ASX 200 shares analysts say are buys
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• Why I’m seriously considering buying these ASX shares following today’s market crash
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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 Altium and Readytech Holdings Ltd. The Motley Fool Australia has recommended 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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