Rio Tinto Limited (ASX: RIO) is set to publish its quarterly production data results this week, and according to UBS, the iron ore giant is set to exceed expectations and meet its 2017 export targets.

UBS estimates Rio shipped 32.5 million tonnes over December 2017, 17% more than what was shipped in November.  

Rio's impressive export performance has been complemented by a rise of 36% in iron ore prices over the last 3 months. Competitors have also benefited from the surge, with Port Hedland (host to BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited's (ASX: FMG) operations) recording iron ore exports of 46.19 million tonnes in total in December 2017.  

Despite strong iron ore prices, BHP is lagging behind export predictions of 275 million to 280 million tonnes of iron ore from Western Australia in 2018, and Fortescue is predicted to produce export figures 8% lower than the September quarter due to unplanned maintenance last year.  

Rio, BHP and Fortescue are scheduled to announce production data from early this week.  

The post UBS: Rio Tinto Limited tipped to surge ahead on iron ore exports    appeared first on The Motley Fool Australia.

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On Thursday the  Coca Cola Amatil Ltd (ASX: CCL) share price hit a low of $7.63, its lowest price in nearly a decade.

Unfortunately for shareholders, Morgan Stanley seems to agree with the market, retaining the company's underperform rating and $8 share price target.  

Although Coca-Cola Amatil expects to maintain profits for the remainder of 2017, a $40 million investment into reduced prices, marketing, sales and technology will likely push down profits in 2018.

The company is attempting to rebalance its portfolio, which is currently weighted to carbonated soft drinks. Carbonated soft drink volumes are forecast to be in decline until 2025.  

Coca-Cola Amatil is planning to restore sales growth in an effort to speed up the reweighting of its portfolio with price cuts, new product launches, and new online or hospitality trade on the horizon.  

The post Why this leading broker is bearish on Coca Cola Amatil Ltd   appeared first on The Motley Fool Australia.

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Australia's largest listed bulk grain handler GrainCorp Ltd (ASX: GNC) recently announced an underlying net profit after tax of $142 million, a 168% increase on last year's report. The profit was in line with the range of the company's forecast of $130 million to $160 million.

Revenue for the period was also up, with an increase of 10% to $4.58 billion due to favourable weather conditions.  

Despite the good results, CEO Mark Palmquist announced expected declines in grain production this financial year due to dry weather forecasts across eastern Australia. With 60% of company revenues stemming from storage and handling across the east coast, this will make a dent in earnings in FY18.  

GrainCorp declared a final dividend of 15 cents per share for the period and shares were down 5% in Tuesday's trade.  

The post GrainCorp Ltd just doubled its annual profit appeared first on The Motley Fool Australia.

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Shares in Virgin Australia Holdings Ltd (ASX: VAH) soared as high as 22% on Friday after Wilson Asset Management chairman Geoff Wilson endorsed the stock at an investment conference. Wilson reportedly said Virgin is in the same position as Qantas Airways Limited (ASX: QAN) was three years ago and is on track for annualised savings of $350 million over the next three years.  

Shares in Virgin, at their worst, were down almost 30% this year and so far the company hasn't been able to make the most of gains made elsewhere in the industry. Despite this, things seem to be improving with Virgin reporting first quarter pre tax profit of $18 million, a vast improvement on last year's $3.6 million loss. Virgin has also raised more than $1 billion from its stakeholders this year, in an effort to pay off debt, cut costs, and improve cash flow.  

Analysts expect  Virgin  to post a pre-tax underlying profit of $74 million this year.

The post Top fund manager thinks it's time to buy Virgin Australia Holdings Ltd  appeared first on The Motley Fool Australia.

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Although Australia's tech sector is the smallest of 11 sector groupings by market capitalisation, there's no better time to take advantage of opportunities for home grown tech stocks.

Here are two tech stocks that are financially healthy, have been performing well, and have strong outlooks moving forward.  

Nextdc Ltd (ASX: NXT)  

Nextdc is a data centre provider offering a range of services to corporate, government and IT services companies. At the end of FY17 Nextdc posted a $23 million net profit, an increase of $21.2 million on last year. Nextdc's outlook for FY18 is 14%-25% in EBITDA growth. 

The company is also the first in Australia to receive the TCCF certification, meaning its B2 facility has the ability to withstand individual equipment failures or distribution path interruptions and maintain IT operations. Growth in demand looks promising, with shortages in Sydney's quality data centre offerings and increased offshore demand, making this one of the best tech shares to invest in on the ASX.  

The company's AGM will be held this week, so investors may hold off investing until then.  

WiseTech Global Ltd  (ASX: WTC) 

WiseTech Global services the logistics industry globally by providing software that monitors the movement of goods. Although the company only had its IPO last year it already has over 7,000 customers in more than 125 countries. The company has continued to pursue its aggressive global expansion plans, with recent acquisitions of two leading global rate management solution providers, Cargoguide and CargoSphere in September.  

WiseTech's revenue at the end of FY17 grew 50% on the previous year to $153.8 million, with a forecast of 30%-37% in revenue growth and EBITDA growth of 32%-39% for 2018. The company has more than tripled its market capitalisation to $3.45 billion since listing in 2016 and its strong growth profile and impressive global acquisition strategy make it a top pick this month.

The post 2 fast-growing tech shares every investor should know appeared first on The Motley Fool Australia.

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The Australian dollar suffered on Wednesday, dropping half a US cent following weaker-than-expected quarterly inflation data. With the Aussie dollar looking to remain below US80 cents, offshore earning companies could provide Australian investors the relief they need.

Companies that report profit in foreign dollars, or offshore earners, provide opportunities that can offset the challenges of Australia's small economy and the inflow of foreign competition.

With that in mind, here are three offshore earners worth buying today:

Corporate Travel Management (ASX: CTD)

Corporate Travel is a provider of travel management solutions to the corporate market with a presence throughout Australia & New Zealand, the USA and Asia. Corporate Travel shares have consistently delivered in the last couple of years and have returned more than 600% to shareholders.

Corporate Travel's international businesses have performed strongly with North American EBITDA growing 28% and European EBITDA up a whopping 202% for FY 2017. Analysts forecast the company to deliver underlying EBITDA between $120 million to $125 million in the next financial year.

Corporate Travel is currently trading at a PE ratio of 39.2.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates is a global wine company with an international portfolio of wines present in more than 70 countries. Last Monday the company's shares hit a record high of $15.23, an increase of almost 20% from August.

The company also unveiled the Penfolds g3 in Hong Kong this month as it continues to meet strong demand for Australian wines in the region. China remains Australia's most valuable wine market with exports increasing 42% on last year.

Treasury Wine currently trades at a PE ratio of 36.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure operates as a developer, manufacturer and distributor of gaming content, platforms and systems in Australia, New Zealand, the Americas and Japan. Aristocrat Leisure reported net profit in its March 31 report of nearly $250 million, or 56.9% growth.

The company announced in August its acquisition of Israeli game developer Plarium for US$500 million. The acquisition expands Aristocrat's market from around US$3.2 billion to almost US$25.4 billion.

Aristocrat currently trades at a PE ratio of 28.9.

The post 3 offshore earners to profit from a falling Aussie dollar appeared first on The Motley Fool Australia.

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Medusa Mining Limited (ASX: MML) gained 33% on Tuesday after releasing its third quarter report for 2017. Overall gold production was up 4% over second quarter figures and gold sales were up a whopping 33%, jumping 6,450 ounces on last year's figure to 27,602 ounces. 

The impressive news comes after a disappointing financial year for the mid-tier gold producer. The company reported a net consolidated loss of $79 million for the 2017 financial year, a stark contrast to the previous financial year's $56 million profit.

Medusa has recently had mine development plan issues with its flagship mine Co-O in the Philippines, with production falling 26% over the 2017 financial year.  

The company expects to maintain production at lower levels this year while it completes development of the new E15 service shaft, which will likely see swift improvements in performance come March 2018.  

The post Why Medusa Mining Limited shares skyrocketed 33% this week appeared first on The Motley Fool Australia.

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Homewares retailer Adairs Ltd (ASX: ADH) saw shares close at $1.53 down 2.2% on Friday following the announcement of a penalty from the Australian Securities and Investment  Commission  (ASIC) over the alleged breach of its continuous disclosure obligations.  

The corporate watchdog maintains that the disclosure breach occurred last year when Adairs failed to inform the ASX of its revised forecast figures in its 2017 full year guidance.  The retailer paid the $66,000 penalty, without any admission of liability.  

Adairs joins Rio Tinto Limited (ASX: RIO) and Bellamy Australia (ASX: BAL) in ASIC's stream of accusations regarding potential breaches of the Corporations Act. Bellamy's Australia also paid a $66,000 penalty earlier this month regarding its potential breaches in 2016. Rio Tinto's case is ongoing with the mining giant charged with fraud after allegedly overstating the value of its Mozambique coal assets.  

The post Why the Adairs Ltd share price is falling appeared first on The Motley Fool Australia.

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Bitcoin prices fell by the most in a month after the Commodity Futures Trading Commission's Lab ruled that virtual currency used in initial coin offerings (ICOs) are classified as securities and would be subject to regulatory oversight. The bitcoin market responded with coins falling 8.4% to a low of $US5,109.  

It is likely that Bitcoin will quickly recover if last month's performance is anything to go by.

Bitcoin prices reacted similarly last month after one of the largest Chinese exchanges announced it would ban ICOs, in a  national crackdown on virtual currencies. The announcement did little damage, over the medium term, with bitcoin hitting a record high of $US5,866 just a few weeks later.  

Tightening regulation in the US, China and Korea isn't slowing down sales in ICOs. Total funds raised by ICOs exceeded total funds raised via traditional equity financing for the first time in the second quarter this year, with the trend continuing in the third quarter.  

The post Could China sink the Bitcoin price? appeared first on The Motley Fool Australia.

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Unexpected cost pressures including a weaker US dollar, rising raw material costs and the environmental policy changes in China could increase South32 Ltd's (ASX: S32) costs beyond the full year expectations.  

While unit costs so far are in line with expectations, the company warned on Thursday that additional cost inflation could push costs upward for the rest of the year.

South 32's net cash position has increased $42 million in this quarter, despite the $US750 million capital management program and the prepayment associated with the increased acquisition with Arizona Mining.  

South32 also reconfirmed its output guidance across its operations, with lower volumes from its Queensland and South African energy coal business during the quarter due to planned maintenance and operational changes. 

Shares in South32 closed down 2.48% at $3.15 pm Thursday, after reaching an all-time high of $3.43 only two weeks ago.   

The post Why has UBS downgraded South32 Ltd shares?   appeared first on The Motley Fool Australia.

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Infant formula maker, Nuchev, may be preparing for an initial public offering to join the likes of A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL).  

The success of A2 Milk and Bellamy's Australia rides on their catering to niches in the infant formula market, A2 Milk focusing on A2-protein-based products and Bellamy's on organic formula products.

Nuchev could soon join these two share market stars cornering the goat-milk-based formula niche market. Nuchev sales are currently split evenly between Australian and Chinese markets, with its products already on shelves in Australian retail stores.  

Share prices in A2 Milk  are skyrocketing, up 290% from $1.84 to $7.18 in the past 12 months, while Bellamy's Australia has jumped from $6.30 in mid-July to $11.19 at close Tuesday.

The post The rise of infant formula: A2 Milk, Bellamy's and now Nuchev?   appeared first on The Motley Fool Australia.

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Rio Tinto Limited (ASX: RIO) shares have been frequently making an appearance on the ASX's list of 20 most shorted stocks in recent years.

Short positions for Rio's stock were 8.9% of total product in issue on Monday last week, compared to 3.5% on October 11, 2010.

In comparison, Fortescue Metals Group Limited (ASX: FMG), which was once the most shorted of the iron ore heavyweights could soon have the least short positions of the lot, with short sellers moving onto Rio Tinto and BHP Billiton Limited (ASX: BHP) instead.  

Why are short sellers turning away from Fortescue?   

Short sellers were previously drawn to Fortescue by its debt fueled expansion program and volatile commodity prices. The expansion program allowed for the building of infrastructure capable of producing 155  million tonnes of iron ore a year, while BHP and Rio were instead investing billions in assets that are now being sold off.

Fortescue now has one of the lowest iron-ore production costs in the sector and its shares returned 50% to investors over the last 5 years. With their de-gearing program now at full speed punters are looking elsewhere for opportunities.    

Why have short positions on Rio jumped in recent years?  

Arbitrage seekers 

Analysts suggest the growth in short positions in Rio Tinto could be attributed to traders seeking arbitrage between the company's Australian and London listed stocks. Rio's Australian shares are currently trading at a 10% premium to its London-listed stock, and shorting Rio's Australian shares could provide a tidy profit.  

Lower export forecasts 

Rio recently scaled back its export forecasts for iron ore after first quarter disruptions due to weather conditions and rail maintenance. The annual production target was also lowered for metallurgical coal following Cyclone Debbie in March.

Iron ore shipments from Australia's west coast are now expected to be about 330 million metric tonnes in 2017, falling short of the 340 million target for the year.  

Are shares in Australia's mining sector overvalued? 

Rio Tinto is currently leading a mining surge on the ASX as the sector benefits from strong demand in China and high commodity prices. Rio  closed at $70.55 on Monday, its highest closing price since February 2014. 

Some analysts believe shares in the sector may be overvalued because the market is over-estimating future demand for commodities.

The recent surges in demand and prices could only be cyclical and with analysts predicting Chinese steel consumption to slow in the next 10 years, the mining surge may very well be short-lived.  

The post Why are short positions in Rio Tinto Limited shares rising? appeared first on The Motley Fool Australia.

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Whitehaven Coal Ltd (ASX: WHC) in its September quarter update on Thursday announced that its coal sales surged 23% on last year's figure to 4.7 million tonnes. The figure surpassed analyst forecasts of 4.2 million tonnes.

Whitehaven reported lower coal prices than analysts had forecast, selling its thermal coal at a 3.2% discount on the quoted average of $94 per tonne.

Shares fell 2.8% to $3.77 at close Thursday in response. Regardless, Whitehaven shares continue to trade around five-year highs, thanks to strong thermal coal prices, which have averaged US$92.5 a tonne since the beginning of the month.

The mining sector is expecting demand and prices for thermal coal to remain strong, supported by an increase of 8% in coal demand in China and demand for higher quality coal from Taiwan's new power stations.

The post Why the Whitehaven Coal Ltd. share price is surging higher appeared first on The Motley Fool Australia.

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Mantra Group Ltd (ASX: MTR) entered into a binding agreement  to sell all its shares to Accor SA (EPA: AC) at  $3.96 on Thursday. The total offer is worth $4.02 per share if a 6 cent final dividend paid in 2017 is included.  

Mantra Group CEO Bob East said shareholders were supportive of the $1.18 billion deal, which will require the consent of 75% of voting shareholders and a majority of shareholders to participate. A vote on the proposed merger will likely be held in March next year, via a scheme of arrangement.

The deal will  create a hotel monolith with more than 300 hotels and more than 50,000 rooms, nearly five times the size of the closest competitor, Choice Hotels International Inc (NYSE: CHH). This will give the group a 15% market share.
Mantra Group shares closed at $3.88 on Thursday. 

The post Mantra Group Ltd says oui to Accor's $1.2b takeover bid appeared first on The Motley Fool Australia.

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The pain continues for Myer Holdings Ltd (ASX: MYR) investors after it  fell 1.34% on Wednesday closing at $0.735c a share. The retail giant has halved its value on the share market this calendar year and last week posted its worst profit since listing on the ASX in 2009.  

On Wednesday Myer announced incoming chairman Garry Hounsell will join the board following the company's Annual General Meeting (AGM) on November 24. Hounsell has been a part of a number of successful business transformations, including Qantas Airways Limited (ASX: QAN) and Treasury Wine Estates Ltd (ASX: TWE).  

Myer's challenge now is going to the AGM and putting forward Hounsell's credentials which have already been questioned by high-profile shareholder Solomon Lew.

Myer's shares rose sharply two weeks ago when Lew's Premier Investments Limited (ASX: PMV) told the market it had asked for details of Myer's share register ahead of the AGM and sparked speculation that a takeover bid was coming.

The post Is Myer Holdings Ltd a takeover target?    appeared first on The Motley Fool Australia.

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Australian almond producer Select Harvests Limited (ASX: SHV) shares closed at $5.27 Monday, up 25.5% after it announced it has rejected a $430.6 million takeover proposal from United Arab Emirates sovereign wealth fund Mubadala Investment Company PJSC. 

Select said the Mubadala offer significantly undervalued the company at $5.85 per share and was also highly conditional. The offer was 39% above the closing share price last Wednesday.  

Hot on the heels of the Mubadala offer, Select Harvests launched a share market capital raising for $65 million. Proceeds of the share issue would be used to reduce debt following the $26.4 million acquisition of Jubilee Orchards in southern Australia earlier in 2017.  

Foolish takeaway  

Select did not rule out the possibility of a revised offer by Mubadala, but there's no guarantee that Mubadala will come back with a better offer. While Select's success is dependent on fluctuations in the price of almonds and seasonal factors, the company seems well equipped to grow within an expanding agricultural market. Investors who can bear the volatility could see Select shares pay off in the long-term.  

The post Why the Select Harvests Limited share price is going nuts appeared first on The Motley Fool Australia.

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AMP Limited  (ASX: AMP) shares rallied on Tuesday trading up 3.5% after the stock was upgraded to outperform from neutral at Credit Suisse, despite the stock underperforming the market by 10% since its first half 2017 results announcement. 

In August, AMP announced a capital intensive growth strategy to buyback shares and pursue global growth plans for AMP Capital. After returning $200 million of the initially planned $500 million to shareholders, the financial services giant decided to pause the buyback.

Credit Suisse analysts report that the stock has experienced a price to earnings ratio contraction, most likely due to the pause in the buyback.  

Backing Credit Suisse's upgrade are two reinsurance deals made public in August , which will free up $500 million in capital by the end of 2017 in a bid to overcome its persistent life insurance underperformance problems.  

The post Why the AMP Limited share price is marching higher  appeared first on The Motley Fool Australia.

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BAML analysts have pinned Boral Limited (ASX: BLD) as the favourite for investors who want to ride the infrastructure boom and negate the losses of a slowing housing market. Boral closed at $6.65 on Tuesday and reported a 16% rise in net profit at the end of this fiscal year.  

Analysts report that of the large ASX-listed building and construction stocks, Boral is the cream of the crop, with share price forecasts of $7.60 in the next 12 months and earnings growth of 31% in 2017-18.  

Boral offers exposure to Australia's infrastructure spend and also to growing profit margins in its United States business. Engineers have forecast the Australian infrastructure boom could last longer than the mining boom with projects worth more than $100 billion projected over next 10 years on the East Coast.  

The post Bank of America Merrill Lynch: Boral Limited shares are a buy appeared first on The Motley Fool Australia.

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