Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 3.5% to 27.5 cents. Investors have been selling this semiconductor company's shares following the release of its quarterly update. The company once again revealed woeful cash receipts for the three months of just over US$100,000. Nevertheless, the company's CEO, Sean Hehir, remains positive. He said: "Exiting the prior quarter with milestone wins, the March quarter was important to advance critical engagements in anticipation of successful closes later this year. While closing more engagements at a consistent rate has taken longer than I expected or accept, I am confident we will close substantially more bookings in 2025 than we did in 2024."

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is down 3% to $6.26. This follows the release of the gold miner's quarterly update this morning. Catalyst Metals reported gold production of 24,329 ounces at an average all-in sustaining cost (AISC) of A$2,765 per ounce. While this was in line with guidance, it appears that the market was expecting more from the gold miner.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down over 6% to $19.56. This has also been driven by the release of a quarterly update from the gold miner. Gold sold totalled 385,000 ounces during the quarter at an AISC of A$2,246 per ounce (US$1,409 per ounce). This was softer than expected and has led to management downgrading its FY 2025 guidance. It now expects 1,630k to 1,660k ounces gold sold. This is down from its previous guidance range of 1,650k to 1,800k ounces gold sold. Management blamed this near term operational challenges at KCGM. In addition, its FY 2025 all-in sustaining cost guidance has been revised to A$2,100-A$2,200 per ounce. This is up from A$1,850-A$2,100 per ounce previously.

Pact Group Holdings Ltd (ASX: PGH)

The Pact Group share price is down 19% to 88.5 cents. Investors have been selling this packaging company's shares following the release of a business update. While Pact revealed that its continuing operations revenue was up 2.7% on the prior corresponding period for the first nine months of FY 2025, that wasn't the reason for the selling. The real reason was the bombshell news that the company intends to delist from the Australian share market. It said: "The Board considers that a delisting would enable PGH to focus more on its business operations and on delivering on its long-term business objectives."

The post Why Brainchip, Catalyst Metals, Northern Star, and Pact Group shares are tumbling today appeared first on The Motley Fool Australia.

Unfortunately for all of you patriots out there, my absolute best performers in recent years have not been ASX shares, but American stocks like Netflix, Duolingo, and Meta Platforms.

But I still do have some notable winners amongst my local holdings. So today, I'm going to discuss three of my best ASX shares and reveal which one I would buy more of today.

Three of my best ASX shares

First, we have packaging stock Pact Group Holdings Ltd (ASX: PGH). I bought Pact shares many years ago when they were trading at what was then a relatively cheap price. I bought a big chunk of Pact and, fortunately, sold out when the company hit a multi-year high in late 2021. Over just two years, I managed to bank a 150% gain.

I was very fortunate to sell out when I did, as Pact has subsequently run into some structural issues, and its shares have fallen below my buying point. Even so, this company remains one of my best ASX investments ever.

Wesfarmers Ltd (ASX: WES) is another ASX share that has done very well for me. I picked up Wesfarmers stock back in mid-2022 for around $40 a pop. Today, those shares are worth just under $76 each, meaning I've enjoyed a return of around 85% (even more when dividends are included).

Unfortunately, I didn't buy as many shares as I would have liked back then, and I have regretted it ever since. However, I view the Wesfarmers share price as a little lofty today. It's not so high as to prompt me to sell out, but I'm not comfortable adding any more capital to this position right now.

Last but not least

Finally, we have the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This exchange-traded fund (ETF) has been in my portfolio for many years and has more than doubled since I first bought it for just over $60 a unit back in 2018.

MOAT holds a portfolio of US stocks that all display characteristics of possessing a wide economic moat. A 'moat' is the Warren Buffett term that describes an intrinsic competitive advantage that a company can possess. This typically comes in the form of a strong, powerful brand, low-cost advantage, or having a product or service that consumers find difficult to avoid.

Given this ETF's diversified portfolio and uncharacteristically muted performance over the past 12 months, this is the one best performer in my ASX share portfolio that I would happily add to in today's market.

The post Here are 3 of my most profitable investments in ASX shares ever (and which one I'd buy more of right now) appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 3% to $1.53. Investors have been buying Beach and other ASX energy shares today after oil prices pushed higher on Friday. This has seen the S&P/ASX 200 Energy index rise 1% this afternoon.

Pact Group Holdings Ltd (ASX: PGH)

The Pact Group share price is up almost 23% to 84 cents. This follows news that the packaging company has received an improved takeover offer from Bennamon Industries. According to the release, Bennamon Industries has bumped its offer from $0.68 cash per share to $0.84 cash per share.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is up 8.5% to $9.05. This morning, this salary packaging and fleet management company announced a major contract win. According to the release, the company has been appointed as the South Australian Government's exclusive administrator of salary packaging services and novated leasing services. The contract commences on 1 July 2024 and services will be made available to approximately 110,000 South Australian Government employees.

Winsome Resources Ltd (ASX: WR1)

The Winsome Resources share price is up 6% to $1.11. This follows the release of the mineral resource estimate (MRE) for this lithium explorer's operation in Canada. According to the update, the maiden inferred MRE at the Adina Lithium Project is 59Mt at 1.12% Li2O across two adjacent large spodumene-bearing pegmatite zones. Management won't be stopping there, though. It has five drill rigs now operating with over 25,000 metres of additional infill and extensional drilling awaiting assay. It is targeting a MRE upgrade in the first half of 2024.

The post Why Beach Energy, Pact Group, Smartgroup, and Winsome Resources shares are rising appeared first on The Motley Fool Australia.

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

Delta Lithium Ltd (ASX: DLI)

The Delta Lithium share price is up over 3% to 76.5 cents. This morning, analysts at Bell Potter retained their speculative buy rating and $1.35 price target on the lithium explorer's shares. Its analysts aren't ruling out a takeover by Mineral Resources Ltd (ASX: MIN) in the future after the mining giant boosted its stake to 17.44%.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 1.5% to $3.05. Investors have been buying this lithium developer's shares after it announced the appointment of Monadelphous Group Ltd (ASX: MND) for the $100 million vertically integrated wet plant Structural, Mechanical, Piping and Electrical and Instrumentation contract. This is the last major construction contract and means Liontown remains on course to commence production in the middle of next year.

Pact Group Holdings Ltd (ASX: PGH)

The Pact Group share price is up 6% to 71.5 cents. This has been driven by news that its major shareholder, Kin Group, intends to make an unconditional 68 cents cash per share off-market takeover offer. With its shares rising beyond this level, it seems that some investors believe a better offer will be coming.

Starpharma Holdings Ltd (ASX: SPL)

The Starpharma share price is up 36% to 17.7 cents. Investors have been scrambling to buy the biotech company's shares after it released positive interim results from its phase 1/2 clinical trial of DEP irinotecan. The data shows encouraging durable signs of efficacy combined with excellent tolerability.

The post Why Delta Lithium, Liontown, Pact, and Starpharma shares are storming higher appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords packaging stock is up 8% to 73 cents.

What's going on with this ASX All Ords stock?

This morning, Pact Group revealed that it has received a takeover approach.

However, unlike most takeover offers that are a meaningful premium to the prevailing share price, this offer is broadly in line with where the ASX All Ords stock was already trading.

According to the release, major shareholder Kin Group intends to make an unconditional 68 cents cash per share off-market takeover offer for all the shares in Pact Group that it does not already own.

Kin Group is a diversified, global, long-term-focused investor ultimately controlled by the Geminder family.

Why would you accept this offer?

Kin Group notes that the offer provides shareholders with liquidity and certainty of an unconditional, all-cash offer at a price fractionally above yesterday's close price of 67.5 cents. It also notes that it allows shareholders to avoid any further risk associated with their investment.

In addition, the suitor highlights that it has a controlling interest of over 50% in Pact Group. As a result, it feels the prospect of a competing offer eventuating is highly unlikely. Though judging by the Pact Group share price jump today, some investors may not believe that is the case.

And despite evidently being very keen to acquire the ASX All Ords stock, Kin Group has been talking down the company, its prospects, and investment opportunities. It named five reasons why it thinks shareholders should accept its offer. Two of these are:

Pact faces a challenging environment, with supply chain disruptions, inflationary pressures, fluctuating resin prices, labour constraints and macroeconomic uncertainty.

Pact is now a smaller business with a reduced earnings base. Notwithstanding the sale of 50% of Pact's Crate Pooling Business, Pact will likely continue to have high debt in light of its ongoing capital expenditure plan. Accordingly, there is uncertainty about the prospect of future dividends in the short to medium term.

The ASX All Ords stock is down more than 50% over the last 12 months.

Pact response

The Pact board of directors advised that it is not yet in a position to make a formal recommendation to shareholders. As a result, it has advised shareholders to take no action at this stage.

The post ASX All Ords stock Pact Group jumps 8% on takeover news appeared first on The Motley Fool Australia.

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

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 6% to $6.81. Investors have been buying this auto parts retailer's shares following the release of its FY 2023 results. Bapcor reported a 9.7% increase in revenue to a record $2 billion. And while its underlying net profit after tax dropped 4.8% to $125.3 million, that hasn't put off investors. Particularly with management expecting a "solid underlying performance" in FY 2024.

Codan Limited (ASX: CDA)

The Codan share price is up over 4% to $7.99. Although Codan has delayed its full-year results release due to illnesses in its audit team, it has provided an update on its performance in FY 2023. Unaudited group revenue was down 10% and net profit after tax was down 35% to $65 million. The market appears to have been expecting a bigger earnings decline.

Mirvac Group (ASX: MGR)

The Mirvac share price is up 4% to $2.37. This morning, this property company released its full-year results and revealed earnings in line with guidance. Mirvac's operating earnings came in at 14.7 cents per share. Looking ahead, management expects a small decline in operating earnings in FY 2024 to 14 to 14.3 cents per share.

Pact Group Holdings Ltd (ASX: PGH)

The Pact share price is up 6.5% to 81 cents. Investors have been buying this packaging company's shares following the release of its FY 2023 results. Pact reported a 6% increase in revenue to $1,949 million and a 36% decline in net profit after tax to $45 million.

The post Why Bapcor, Codan, Mirvac, and Pact shares are racing higher appeared first on The Motley Fool Australia.

The Pact Group share price is currently 84 cents, up 10.5%.

In earlier trading, the ASX All Ordinaries share reached an intraday peak of 91 cents, up 19.7%.

The company reported a $7 million loss in FY23 compared to a profit of $12 million in FY22.

Sounds bad, so why is the Pact Group share price rising?

Let's investigate.

ASX All Ordinaries share shoots skyward on poor results

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand.

The company released its full-year FY23 results this morning.

Here are the key numbers:

• Revenue of $1.949 billion, up 6% on the prior corresponding period (pcp)
• Underlying EBIT of $145 million, down 7% pcp
• Reported net profit after tax (NPAT) of a loss of $7 million vs. a $12 million profit pcp
• Net debt of $586 million, $25 million higher than pcp
• Operating cash flow of $291 million
• No final dividend compared to a 5 cents final dividend in FY22

What else happened in FY23?

The company said its FY23 loss was the result of a non-cash impairment of $37 million (after tax) for property, plant and equipment across multiple platforms that it intends to replace.

Pact Group CEO Sanjay Dayal said it was pleasing to report revenue growth despite tightening economic conditions, softer demand from Asia, and weather events.

The recovery of costs, increasing demand for sustainable packaging, and contract wins contributed to the revenue bump.

Underlying EBIT fell within the revised guidance range issued in May, brought about partly by increased labour and domestic supply chain costs.

Investors were upset by the revision, with the ASX All Ordinaries share falling 13.5% on the day.

Why is this ASX All Ordinaries share rising today?

So, the question remains, why is this ASX All Ordinaries share price rising today?

Well, a revenue boost is always good, and it was a non-cash impairment that took the bottom line into the red.

It also must be said that many companies are reporting adverse impacts due to the inflationary economy this earnings season.

Often, we see a share price surge when the results — while still poor in comparison to FY22 — are not as bad as expected. So that may be happening for this ASX All Ordinaries share today.

What did Pact Group management say?

Pact Managing Director and CEO Sanjay Dayal said:

The impact of increasing inflation is reflected in softening demand for consumer products which has impacted particularly on volumes in our Packaging & Sustainability segment where we produce high-quality packaging containing recycled content.

We have experienced a change in customer buying patterns with a move towards bulk and private label buying which has had a positive impact on our Contract Manufacturing segment.

Our operating cash flow of $291 million was a highlight and reflects our disciplined approach to
reducing working capital.

What's next for this ASX All Ordinaries share?

Pact Group says it has made progress in all four key areas of its strategy to 'Lead the Circular Economy'.

This included investing in upgrades to Pact's packaging platforms to allow the production of high-quality recycled packaging for key customers like Woolworths Group Ltd (ASX: WOW) and Aldi.

This is primarily why the company's gearing was 3 times in FY23.

Pact will provide an update on FY24 trading conditions at its annual general meeting.

Pact Group share price snapshot

This ASX All Ordinaries share has fallen 17.5% in the year to date.

In comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) has risen 4.1%.

The post Why is the ASX All Ordinaries share surging 20% despite just declaring a loss? appeared first on The Motley Fool Australia.

The answer is that it's impossible to know just by looking at how the share price has plummeted in the recent past.

It's a cliche, but past performance is never an indicator of the future.

The simple fact is that how attractive a stock is depends on its future business prospects. Forget the past.

In fact, a depressed stock price for such a company could merely represent the once-in-a-lifetime chance to buy at a dirt cheap level.

The team at IML smaller companies fund reckons packaging company Pact Group Holdings Ltd (ASX: PGH) is a perfect example of this.

The Pact share price has lost its investors a horrifying 87% over the past five years.

Let's break down why IML analysts rate the ASX share as a buy right now:

Improving balance sheet and on the right side of history

Firstly, the IML team acknowledged in a memo to clients that Pact's latest results were not flattering.

"Pact Group, the leading rigid plastic packaging manufacturer in Australia & New Zealand, fell after reporting that its FY23 results will be negatively impacted by slower demand from retail and agricultural customers, with poor weather in New Zealand partly to blame."

But from here, the potential is on the upside.

"Pact is focused on improving its balance sheet and has a program underway looking at asset sales and cost reductions," read the IML memo.

"We continue to believe Pact's core rigid business remains at the forefront of plastic resin reuse and that the company has a solid outlook."

A tangible testimony to the growth capability of the recycling business was the recent signing of a big-name client.

"This was validated late in the quarter by the signing of Aldi as a reuse customer for its home brands, adding another significant customer to its plastics reuse program."

According to CMC Markets, three out of five analysts that currently cover Pact Group rate the stock as a buy.

The Australian Financial Review reported back in March that the old Credit Suisse (now part of UBS Group AG (SWX: UBSG)) slapped a share price target of $3.70 on Pact Group.

That's a crazy 444% upside from the current level.

The Motley Fool's Tristan Harrison last week named Pact as a potential beneficiary from the rapid rise of the circular economy.

"Statista numbers show the global waste recycling service market was US$55.1 million in size in 2020 and that it could grow to US$88 billion by 2030," he said.

"That's a rise of about 60%."

The post Down 87% in 5 years: The ASX share to buy for cheap now appeared first on The Motley Fool Australia.

First up though, just because a business has exposure to a tailwind doesn't automatically make it a good business. Investors should still evaluate a company's positives and negatives such as its valuation, management, its balance sheet, and other factors.

Having said that, these are three areas where ASX investors could benefit:

Circular economy

Statista numbers show the global waste recycling service market was US$55.1 million in size in 2020 and that it could grow to US$88 billion by 2030. That's a rise of about 60%.

Australian states, such as Victoria, are looking to recycle more of the waste that comes from households.

There are some businesses involved with the packaging transition, such as Amcor (ASX: AMC) and Pact Group Holdings Ltd (ASX: PGH).

There are also a couple of ASX shares involved in the recycling process, such as ASX small cap share Close The Loop Inc (ASX: CLG) which is expanding internationally, and Cleanaway Waste Management Ltd (ASX: CWY).

Growing superannuation balances

Another beneficial ASX investing trend is the steady growth of the superannuation pool of assets.

According to Challenger Ltd (ASX: CGF) data from Deloitte, the superannuation system had $3.3 trillion of assets in 2022. This is expected to grow to at least $9 trillion by 2042 — that would be growth of 270%.

As well as being driven by mandatory contributions, growth is also being spurred through voluntary contributions due to their tax efficiency. As well, super is also growing thanks to the compound return growth of its asset valuations.

Challenger is taking advantage of this by providing annuities. This allows retirees to turn their capital into a regular source of income, enabling them to establish that certainty.

There are several other ASX financial shares connected to the growth of superannuation wealth in Australia.

Australian Ethical Investment Ltd (ASX: AEF) shares could be another way to get exposure. This fund actually offers superannuation for its members. The number of its members is growing too.

Australian population growth

Australia's population is steadily growing. This can boost earnings for a wide range of businesses because it increases overall demand and total potential customer base.

According to Australian government projections, the national population was expected to reach 26.3 million at the end of FY23 and reach 29.9 million by the end of FY33. This is a rise of 13.7% over the next decade.

When we look at which companies could benefit from this ASX investing trend, I'm thinking about names like supermarket business Coles Group Ltd (ASX: COL), telco Telstra Group Ltd (ASX: TLS), Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES), pathology company Sonic Healthcare Ltd (ASX: SHL), building products business Brickworks Limited (ASX: BKW), and IGA supplier and hardware business Metcash Ltd (ASX: MTS).

The post 3 ASX investing trends to consider right now appeared first on The Motley Fool Australia.

Firstly, let's talk about what the business actually does.

Pact describes itself as a leader in the circular economy, with its packing, re-using and recycling solutions. It aims to create "smarter ways of reducing waste through reusing and recycling resources, therefore keeping them in circulation well into the future."

The re-use segment aims to eliminate single-use products. It offers a number of solutions including retailer garment hangers, fresh produce crates, steel drums, household wheelie bins and water tanks.

With its packing, it locally sources recycled materials for various categories like dairy, drinks, food, industrial, health and personal care.

Is the ASX All Ords stock an opportunity?

Over the past year, the Pact Group share price has dropped over 50%. That means it's now much cheaper than in 2022.

The broker Credit Suisse recently slapped an outperform rating on the business, with a price target of $3.70, according to the Australian Financial Review.

Outperform essentially suggests that the broker believes it's a buy.

A price target is where the broker thinks the share price will be in 12 months after the target was issued.

At the current Pact share price, that suggests the broker believes the ASX All Ords stock could rise by 235%.

Firstly, just remember that just because an expert says a share price is going to rise doesn't mean it's going to happen. It's just their opinion.

However, the fall of the Pact share price does present an exciting opportunity, if the recovery occurs. If a share price falls 50%, a recovery back to the former value is a rise of 100%. Credit Suisse is suggesting the price can recover back to September 2021 levels.

How is the business performing?

The latest result was the FY23 half-year result, which showed an 8% increase in revenue, while underlying earnings before interest and tax (EBIT) fell 8% to $75 million, though EBIT was higher than guidance.

The All Ords ASX stock is working on "cost recovery and removing costs" in the business.

However, the materials handling and pooling business was "significantly impacted by a downturn and destocking in the US and Europe garment retail sector, in addition to reduced demand from China because of COVID lockdowns." Volume in the pooling business was impacted by "adverse weather conditions impacting growing regions in Australia and New Zealand."

But, it did say that it's expecting an improvement in the materials handling and pooling segment, with its Sulo bins business expected to report growth on the back of "significant local council contract wins." The pooling business is expecting a recovery with a return to stable weather and growing conditions.

While debt is higher than the company would like, it decided not to pay a dividend so that it could reduce debt.

FY23 underlying EBIT is expected to be ahead of FY22's underlying EBIT.

Pact share price valuation

According to Commsec, the business is expected to generate 16.1 cents of earnings per share (EPS). This would put the ASX All Ords stock at just 7 times FY23's estimated earnings.

Commsec numbers suggest that the business could then generate 19.4 cents of EPS in FY24 and 19.8 cents of EPS in FY25. So, if those projections are correct, it's on a very low forward price/earnings (P/E) ratio.

The post Top broker tips 230% upside for this ASX All Ords stock you've probably never heard of appeared first on The Motley Fool Australia.

However, these two All Ords companies are outperforming their peers after reporting strong half-year results.

Pact Group Holdings Ltd (ASX: PGH)

This ASX All Ords share shot up a whopping 8.4% this morning to $1.10 after the packaging manufacturer reported its FY23 half-year results. The company's share price is currently 2.17% higher at $1.037.

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand with a growing overseas business.

Pact reported $998 million in revenue for the half, which was 8% up on the prior corresponding period (pcp) of 1H FY22.

Its underlying earnings before interest and taxes (EBIT) was $75 million, 3% above the top of its guidance range but down 8% pcp.

Underlying net profit after tax (NPAT) was $26 million, down 33% pcp but "in line with the performance of the business and increased finance costs", the company said.

The All Ords business said the recovery of costs and volume growth had driven the increased revenue.

It noted increased demand for sustainable packaging and recycled products, new contract wins, and contract re-pricing of existing contracts during the half.

The ASX All Ords share will not pay an interim dividend, reflecting "the desire to preserve cash to allow the Company to reduce debt and continue its capital program in line with its Vision to lead the Circular Economy".

Pact reiterated its guidance for FY23 underlying EBIT to be slightly ahead of FY22 underlying EBIT.

Redbubble Ltd (ASX: RBL)

Rebubble also reported its FY23 half-year earnings this morning. The ASX All Ords share was not out of the blocks as fast as Pact Group but is steadily climbing in lunchtime trade. The Redbubble share price is currently up 3.19% at 48.5 cents.

Redbubble is an online artwork and design marketplace selling a range of products. The All Ords company reported a 1% lift in revenue to $343.8 million for 1H FY23 compared to the pcp of 1H FY22.

Gross profit is down 6% at $101.3 million and the gross profit margin fell 2.5%.

Operating expenses excluding brand investment were 20% higher at $63.6 million.

Looking forward, Redbubble CEO Michael Ilczynski said:

Enhancing the Redbubble marketplace's content quality and search and discovery is a primary focus for the Group to ensure customers can find products among four billion listings which appeal to their
specific interests and needs.

We are uniquely positioned to benefit from recent improvements in AI, which could revolutionize search and discovery of artists' content and greatly enhance new and existing customers' experience.

Early signs are positive and we expect to roll-out implementation of this technology at scale this calendar year.

The post 2 ASX All Ords shares leaping higher with one up 8% on half-year results appeared first on The Motley Fool Australia.

Assumably, Geminder has been taking advantage of recent weakness in the Pact Group share price.

The ASX 300 and All Ordinaries Index (ASX: XAO) constituent has dumped nearly 25% of its value since this time last month. The Pact Group share price last traded at $1.65.

For context, the ASX 300 and the All Ords have each dropped close to 3% in that time.

Let's take a closer look at the ASX 300 insider's latest purchases and the company's shares' recent suffering.

ASX 300 insider forks out $9m on company's shares

Geminder is seemingly confident in the future of the Pact Group share price, indirectly investing an additional $9.3 million to buy an extra 5.7 million of the company's shares.

That represents an average price of around $1.64 for each share bought across six transactions.

Indeed, the parcel of shares attributed to the billionaire grew every trading day between 6 September and 13 September, according to ASX disclosures.

Germinder-led investment firm Kin Group was behind the buying.

Germinder, who is reported to have a net wealth of $1.45 billion – placing him at number 92 on the Australia Financial Review's 2022 Rich List – now backs approximately 166.67 million shares in the ASX 300 company, representing a 48% stake.

The buying spree comes after the Pact Group share price plummeted on the back of the company's full-year earnings.

The ASX 300 company's share price plunged 9% after it revealed its after-tax profits had tumbled 25% to $70 million in financial year 2022.

It also took a knife to its annual dividend payout, slashing it 55% to 5 cents per share.

The post Guess which rich lister has loaded up on $9m of their ASX 300 company's shares this month appeared first on The Motley Fool Australia.

As the August earnings season draws to a close, several ASX shares are trading ex-dividend this month.

The ex-dividend date is when investors must have purchased a company's shares beforehand to be eligible for the upcoming dividend. If you buy the shares on or after the ex-dividend date, the dividend will go to the seller.

Below, we take a look at the ASX All Ordinaries shares that are trading ex-dividend on Wednesday.

Telstra Corporation Ltd (ASX: TLS) shares will trade ex-dividend for the telco's 8.5 cents per share fully franked dividend. This will be paid to eligible shareholders on 22 September.

Pact Group Holdings Ltd (ASX: PGH) shares will also trade ex-dividend on Wednesday for the company's partially franked 1.5 cent per share final dividend. Shareholders will have to wait until 6 October to receive the packaging and recycling business's dividend payment.

SG Fleet Group Ltd (ASX: SGF) shares are set to trade without the rights to the fleet management company's full franked 6.81 cents per share final dividend. SG Fleet shareholders will be paid this dividend on 8 September.

Foolish Takeaway

To qualify for any of the above dividends, you'll need to make sure you buy the company's shares before the close of trade today.

After that, you will still qualify for the dividend even if you sell the shares tomorrow or at a later date.

The post 3 ASX All Ordinaries shares trading ex-dividend tomorrow appeared first on The Motley Fool Australia.

With a flurry of news and ASX announcements, it can be hard keeping up.

So, here's the lowdown on some of the biggest movers from ASX reporting season this week. 

You'll find links to our relevant Foolish earnings coverage for further reading.

The ASX winners

The Nearmap Ltd (ASX: NEA) share price soared above the clouds this week, propelling 30%. While the aerial imaging company lifted the lid on its FY22 results, it was a takeover bid that had the market excited. 

The Temple & Webster Group Ltd (ASX: TPW) share price was also on fire, lighting up 30% on Tuesday before eventually running out of steam to post a 7% gain across the week. Investors cheered as the online furniture retailer delivered 31% revenue growth in FY22 while its earnings margin came in at the high range of guidance.

The IPH Ltd (ASX: IPH) share price also hit a home run, finishing the week 17% higher. The market appears pleased with the company's global ambitions. Alongside its FY22 results, IPH announced a $387 million acquisition of Smart & Biggar, a leading Canadian intellectual property firm. This marks IPH's first expansion beyond the Asia Pacific region.

The Brambles Limited (ASX: BXB) share price also ended the week in the winners' column, pumping out a 12% gain. The logistics group shook off global supply chain challenges to deliver 9% sales growth in FY22, ahead of guidance, and boosted its final dividend.

Last but certainly not least, the BHP Group Ltd (ASX: BHP) share price punched in a 7% weekly rise, fortifying its crown as the ASX's largest company. The Big Australian beat expectations in FY22 as strong cash flow performance led to a juicy final dividend of US$1.75 per share.

The ASX losers

While Temple & Webster soared, the pain continued for fellow ASX e-commerce share Redbubble Ltd (ASX: RBL). The Redbubble share price suffered a steep 40% intraday fall on Wednesday after marketplace revenue dropped 13% and earnings reversed in FY22.

The Pact Group Holdings Ltd (ASX: PGH) share price also found itself under pressure, packaging up a weekly loss of 19%. COVID and supply chain challenges contributed to a 25% fall in the company's FY22 underlying profit. Pact Group also slashed its final dividend by 75%.

The week wasn't kind to the TPG Telecom Ltd (ASX: TPG) share price either, descending 13%. The ASX telco reported soft first-half results, impacted by restructuring and rising cost pressures.

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price also had a week to forget, stumbling 11% as investors were unimpressed by the company's FY22 results. The ASX bank's commentary around its net interest margin may have spooked the market.

Finally, the Beach Energy Ltd (ASX: BPT) share price failed to fire, slipping 8% across the week. The company's FY22 profits fell short of expectations and the ASX oil share warned investors that unit field operating costs would likely head north in FY23. 

Which ASX 200 shares are reporting next?

Gear up for another jam-packed week of ASX reporting season as a swarm of ASX 200 shares prepare to release their results.

According to our Foolish ASX reporting season calendar, some of the ASX blue-chip shares reporting next week include Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Qantas Airways Limited (ASX: QAN).

The post ASX reporting season weekly wrap: Winners and losers appeared first on The Motley Fool Australia.

The Pact Group share price opened at $2.03 this morning, down 6.9% on yesterday's closing price of $2.18. The shares have since fallen to $2.01, down 7.8% for the day so far as investors digest the news.

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand, with a growing footprint in Asia.

Let's take a look at their results.

Pact Group share price slides on profit drain

Here are the key points of Pact's results:

• Revenue of $1.838 billion, up 4% on the prior corresponding period of FY21 (pcp)
• Underlying earnings before interest and tax (EBIT) of $156 million, down 15% on pcp
• Underlying net profit after tax (NPAT) of $70 million, down 25% on pcp
• Net debt of $561 million, $24 million lower than pcp
• Final dividend of 1.5 cents per share with 65% franking to be paid on 10 October.

Pact Group said revenue was up due to "solid demand for sustainable packaging and recycled products".

It said a 25% drop in underlying NPAT was "due in part to the absence of one-off revenue in the Contract Manufacturing segment recorded in FY21".

The underlying EBIT for the contract manufacturing segment was in the negative at ($4 million) in FY22 compared to $24 million in FY21, a 117% drop.

The EBIT was down but in line with the guidance that Pact Group provided in its 1H FY22 update.

The total dividends paid in FY22 will amount to 5 cents per share compared to 11 cents in FY21.

What else happened in FY22?

Pact talked up its cost recovery initiatives, saying they "broadly offset" increased material prices and labour costs due to supply chain challenges and "the cost of the continuing impact of COVID-19".

In an investor presentation released with the results today, Pact Group said its vision was to "lead the Circular Economy through reuse, recycling and packaging solutions".

Progress on its circular economy strategy in FY22 included acquiring Synergy Packaging, a specialist manufacturer of PET and 100% recycled PET packaging for health and beauty packaging.

It also commenced operations at Circular Plastics Australia, a PET recycling facility in Albury-Wodonga. The facility has international food grade certification and produces recycled resin for Pact Group's joint venture partners.

Pact Group aims to be the largest PET plastic recycler in the Australasian market. In its statement, Pact said its recently announced sustainability partnership with Woolworths Group Ltd (ASX: WOW) is "proof that the company is the end-to-end provider of recycled content into recycled packaging".

Pact Group has set an emissions target to reduce scope 1 and 2 emissions by 50% by 2030 in Australia and New Zealand from an FY21 baseline. It also aims to increase its average recycled plastics to 30% by FY25.

The Pact Group share price halved in FY22. It reached a 52-week high of $4.63 in August 2021 after the company released its FY21 full-year results. It reached a 52-week low just last month of $1.80.

What did management say?

Pact Group managing director and CEO Sanjay Dayal said:

We achieved sound revenue during the 2022 financial year, against the backdrop of a challenging market and tough economic conditions. While we continue to see escalating demand for recycled content, our performance was impacted by higher costs of both input materials and labour, as well as additional costs due to the ongoing impact of COVID and supply chain disruption.

We were able to recover some of these costs during the latter half of the year and will continue to do so and our focus remains on cash flow generation.

What's next?

Pact Group said it expected a continuation of supply chain availability issues, rising raw material costs, and elevated energy prices in 1H FY23 before normalisation in 2H FY23.

As a result, the company expects underlying EBIT to "grow slightly in FY23".

Pact Group share price snapshot

The Pact Group share price is down 21% in the year to date.

This compares to a 7.5% fall in the S&P/ASX All Ordinaries Index (ASX: XAO).

The Pact Group has a market capitalisation of approximately $750 million.

The post Pact Group share price tumbles on 25% profit decline and halved dividends in FY22 appeared first on The Motley Fool Australia.

The recycling company's share price is down 0.96% so far today, currently trading at $2.07. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.16% higher in late morning trade.

Let's take a look at the deal between Pact and Woolworths.

Pact to work with Woolworths

The two companies are planning to work together to replace 18,000 tonnes of new plastic with local recycled plastic each year. This is forecast to reduce carbon emissions by 25,000 tonnes.

Pact will supply sustainable packaging made from recycled plastic for Woolworths products including milk bottles, meat trays, and drink bottles.

The partnership involves a multimillion investment in local recycling and manufacturing, according to the companies.

Pact CEO and managing director Sanjay Dayal said consumers and businesses are demanding recycled and recyclable plastic packaging. He added:

Plastic packaging that is designed effectively, that is recyclable and recycled properly in Australia can be used again and again, creating a truly local circular economy for plastics.

Woolworths uses recycled plastic when there is no viable alternative to plastic. Further commenting on the plan, Woolworths format and network development managing director Rob McCartney said:

We're working hard to remove plastic from packaging like our bakery trays, however it can be necessary to protect quality and food safety in some products – which is why replacing it with recycled plastic is the next best thing.

Pact share price snapshot

The Pact share price has lost more than 41% in the past year, while it has fallen 18% year to date.

In the past month, Pact shares have leapt nearly 9%.

For perspective, the benchmark ASX 200 index has shed about 8% in the past year.

The post Pact share price slides despite Woolies recycled packaging deal appeared first on The Motley Fool Australia.

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Investors Mutual Limited senior portfolio manager Simon Conn reveals 2 hot ASX shares to buy for years to come.

Hottest ASX shares

The Motley Fool: What are the 2 best stock buys right now?

Simon Conn: Pact Group Holdings Ltd (ASX: PGH) and TPG Telecom Ltd (ASX: TPG), which are both top-5 holdings in the fund. Both look cheap with good management, and I think are really well-positioned for the next 3 to 5 years.

MF: If the market closed tomorrow for 4 years, which stock would you want to hold?

SC: I think both those stocks are ones that you'd be happy to own for the next 4 years. I think they're both fundamentally very solid businesses, and well-managed, and have got really good businesses that are well-positioned to continue to grow and pay good income over the few years. 

I think the long-term structural trends for both industries, telco and packaging, are strong.

MF: They're both sectors that don't really go out of fashion, are they? There's always a demand for them.

SC: Well, that's the thing. We're seeing a lot of disruption in the economy, [with] startup companies. There's a lot of money around for startups or for new competitors, private equity-backed startups, so it's a very competitive market. So you need to have a really strong competitive advantage, and also an ability to fend off competition.

Pact has really positioned themselves well at the centre of this circular economy trend, which is a big megatrend. We're seeing a lot of consumer goods companies, such as Nestlé SA (SWX: NESN), Bega Cheese Ltd (ASX: BGA) and the like, moving to more sustainable practices, and that means using more recycled resin in their manufacturing. 

With Pact's recent result, they announced a couple of contracts that they've won using recycled resin in their manufacturing process. Actually, today, they're opening the Albury facility, which is their first reuse facility in the country, and that's a real strong theme, I think, which will play through.

They're the largest rigid plastic manufacturer in the country. That's a very defensive business, so they're effectively making the packaging. They just make sure that this enables fluids and liquid products to move from factory to the consumer or through industry. So whether it's milk bottles, yoghurt tubs, margarine containers, the like. 

Because of the nature of the product, it has very resilient demand, very consistent cash flows. The volatility obviously comes from the resin price, because obviously, they buy a lot of resin. If they can lock in more reused resin, that'll mitigate that cost, and because they've got the technology and the scale, they're the natural go-to partner for a lot of these companies looking for a partner in terms of that circular economy solution.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

SC: Jeez, that's a hard one. This game, every day is a battle. 

The COVID sell-off was a massive period of dislocation in the market, but I suppose not buying enough of these good-quality businesses, enough at the bottom. The share prices rallied very consistently off that, had a very sharp correction, and then they rallied very significantly. 

I suppose we should have bought more of the stocks we liked, because they all rallied significantly over the intervening 2 years.

MF: Did you have much cash in hand at the time?

SC: Yeah, look, what we did was we took the cash up to a reasonably high level, but there were numerous capital raisings, as you're aware, in 2019, and we'd used that to participate in a lot of the capital raisings, which was a good performance for the fund. 

We did use the cash quite significantly, but the consumer discretionary sector is obviously one that rallied significantly. I suppose in hindsight we could have had more exposure to that… I suppose we were surprised at how quickly the economy took off, to be honest.

MF: I think everyone's very keen to see, for the rest of this year, whether the same fast recovery happens or whether it's more of a traditional long recovery.

SC: I think the last few years have been very volatile, and the reality in the world is, I don't think that's changing, mate. 

We haven't seen a conflict like the scale of the one in Ukraine for many years, so many investors today have really no recollection of what this creates, and it's a long time since we've seen this sort of escalation of commodity prices, so I think that creates a new paradigm for investors. 

The other thing that's really compounding is that central banks around the world continue to hold rates at very low levels, where inflation is significant. Australia's not as bad as the US, but you've got virtually zero cash rate in the US, and yet you've got inflation [at] 5%, 7%. It's very negative real rates, and yet inflation is becoming more entrenched with the oil price at these sort of levels. 

It's a very tricky environment for many investors, and I think the markets remain volatile. So in that environment, I think you've just got to stick to good-quality companies that are making cash flow today. 

There's been a lot of companies in the market that have been bid up successfully, like concept [stocks], the PointsBet Holdings Ltd (ASX: PBH), or be it some of the more speculative tech stocks that don't make money, and never made money, and people have been thinking that they'll generate enough market presence to generate good cash or get taken over, effectively. But I think the market's appetite to keep funding these things is becoming less certain, and so I think there'd be more discipline around making money, being profitable. 

A great sign of having a profitable company is paying a dividend, so I think those companies will come back into vogue. I think that's definitely what we've seen over the last few months, the tech sector coming off and a lot of good-quality companies rerating.

The post 2 ASX shares that are on the right side of history: fund manager appeared first on The Motley Fool Australia.

While the Reserve Bank of Australia may downplay the impact of inflation here in Australia, any rise in US rates would force other central banks to consider doing the same.

This is because countries that are too out of step with the world's largest economy risk having their currency depreciate excessively — and worsen their own inflation.

This climate of fear means, according to Investors Mutual Limited director Anton Tagliaferro, that investors now must seek current cash flow.

"Replacement costs are rising, and financing costs will increase going forward," he wrote on the IML blog.

"Return thresholds will suddenly have bond rates of more than zero to compete with."

With this in mind, Tagliaferro named 3 ASX shares that are ideally equipped to thrive in a rate-rising environment:

• Aurizon Holdings Ltd (ASX: AZJ)
• Orica Ltd (ASX: ORI)
• Pact Group Holdings Ltd (ASX: PGH)

Growth shares will destroy your wealth, says fund manager

According to Tagliaferro, all 3 companies have been "shunned" in recent years by a market that's been obsessed with growth stocks.

"With interest rates rising, these stocks suddenly don't look so boring or dull as things normalise," he said.

"And as investors begin to appreciate real cash flows generated by companies in the next 2  to 3 years, as opposed to hoped-for cash flows in 10 or 20 years' time."

He said that share investors were at a crossroads now where they had to make sure growth assets didn't "destroy" their wealth.

"With interest rates almost certainly to be on the rise in 2022, the sustainability of the returns from growth and speculative stocks is likely to be severely tested."

Tagliaferro's fund is continuing to hunt for value ASX shares that have excellent current cash flow and "very positive outlook" over 3 to 5 years.

"We continue to focus on real companies which have a durable competitive advantage, and that typically have substantial real assets or long-term, monopoly-like licences — not start-ups."

The post Interest rate anxiety? 3 ASX shares to stay calm and carry on appeared first on The Motley Fool Australia.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:

DEXUS Property Group (ASX: DXS)

According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company's shares. The broker notes that a number of the company's peers have recently announced strong updates. While this is likely to bode well for Dexus' own performance, Citi isn't in a rush to change its rating. The broker has previously flagged potential for further weakness in office rental markets, which it feels is likely to feed into office asset pricing. The Dexus share price is trading at $11.44 this afternoon.

Insurance Australia Group Ltd (ASX: IAG)

A note out of UBS reveals that its analysts have downgraded this insurance giant's shares to a sell rating and cut the price target on them to $4.20. UBS is feeling bearish on the company's outlook, particularly given its lack of growth opportunities. In addition, the broker expects IAG to be impacted by a spike in claims. The IAG share price is fetching $4.36 on Tuesday.

Pact Group Holdings Ltd (ASX: PGH)

Analysts at Morgan Stanley have retained their underweight rating on this packaging company's shares and cut the price target on them to $2.70. According to the note, Pact is the broker's least preferred option in the space due to partly to its struggling Contract Manufacturing segment. It expects this business to weigh on its performance and has downgraded its earnings forecasts to reflect this. The Pact share price is trading at $2.44 today.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $92.50 price target on this banking giant's shares. Although Credit Suisse believes APRA's newly announced bank capital framework is a positive for the sector, it isn't enough for a change of rating. The broker continues to believe that CBA's shares are expensive at the current level and better value can be found elsewhere. The CBA share price is trading at $94.37 today.

Mineral Resources Limited (ASX: MIN)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company's shares. This follows news that it has signed an agreement with Hancock Prospecting and Roy Hill to investigate the development of a new iron ore export facility in Port Hedland. The broker doesn't appear convinced by the move and sees downside risks to it. Particularly given how this could support increased supply and weigh on iron ore prices. The Mineral Resources share price is fetching $45.33 this afternoon.

Pact Group Holdings Ltd (ASX: PGH)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.30 price target on this packaging company's shares. This follows the release of a trading update at its annual general meeting. That update revealed that its Contract Manufacturing business has been underperforming due to challenging trading conditions. This doesn't appear to be a surprise to Morgan Stanley, which has been negative on the business for some time. And while the Pact share price has now fallen well beyond the broker's price target, it doesn't appear to be in a rush to change its rating.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.