Three S&P/ASX 200 Index (ASX: XJO) shares will be trading ex-dividend next week.

Income investors take note.

If you want to receive the payouts, you'll need to own these ASX 200 shares at least one day before they trade ex-dividend. If you buy them after this date, the seller retains the dividend.

You should also be aware that a company's share price tends to fall by a similar amount to its per share payout once the stock trades ex-dividend.

With that said…

These three ASX 200 shares are trading ex-dividend next week

First up we have farm products company Elders Ltd (ASX: ELD).

The Elders share price closed yesterday at $10.40.

Elders' board declared a final dividend of 28 cents per share. The stock trades ex-dividend on Monday, making today the last day for investors to buy the ASX 200 share if they want that payout. The payment date is 16 December.

Elders also paid a 28 cent interim dividend, bringing its trailing yield to 5.4%, 30% franked.

The second ASX 200 share trading ex-dividend next week is Amcor PLC (ASX: AMC).

The international plastics packaging company trades ex-dividend next Tuesday, meaning investors will need to buy shares today or on Monday to receive the payout. The payment date is 13 December.

The most recent dividend the Amcor board declared was 19.4 cents. Amcor closed yesterday trading for $17.55 per share. With its other dividend payments factored in, Amcor trades on a trailing yield of 4.1%, unfranked.

Which brings us to ALS Ltd (ASX: ALQ), the third ASX 200 share that's going ex-dividend next week.

The professional technical services provider trades ex-dividend next Thursday, 24 November. That gives investors who want the 20.3 cents per share payout until Wednesday to buy shares. The payment date is 16 December.

ALS closed yesterday trading for $12.12 per share, giving it a trailing yield of 2.9%, unfranked.

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For more than a decade, investors became rich from ASX growth shares — but all that changed almost overnight late last year.

As the very infectious Omicron variant of COVID-19 struck the world in November, share markets turned against growth, and haven't really looked back since.

In such an environment, The Motley Fool has certainly noticed a big change in attention towards dividend shares.

The logic among investors seems to be that if capital growth is so anaemic, you might as well grab some income to make up for it.

However, the team at Wilsons had a stark warning for dividend hunters.

"However, high yield stocks have proven to underperform the market on a long-term view," its recent memo to clients read.

"We therefore believe a dividend strategy cannot solely rely on high yielding stocks to be successful."

The checklist for quality ASX dividend shares

For Wilsons analysts, it's imperative to search for businesses that grow dividends over time. That might mean sacrificing some yield now.

"We think selecting a dividend strategy by its initial yield is a poor choice because the growth of the dividend over time ultimately determines the income payouts in future years."

Also, a high current dividend yield tells nothing about the business performance or its outlook.

"Therefore, we think it is also paramount to consider companies based on their competitive positioning and industry backdrop, their earnings quality, and their long-term growth outlook."

Considering this, the team screened the S&P/ASX 100 [XTO] (ASX: XTO) for businesses that met the following criteria:

• Financial year 2025 dividend yield greater than 2%
• Positive or flat three-year forecast dividend per share compound annual growth rate
• Balance between growth and yield
• Predictable earnings supported by "relatively defensive demand" through economic cycles
• Decent moat or industry outlook
• No iron ore miners, which Wilsons believes to be in structural decline 

Using this screen, the team came up with 22 ASX shares that are providing 2023 financial year yields above 3%:

• Westpac Banking Corp (ASX: WBC)
• Australia and New Zealand Banking Group Ltd (ASX: ANZ)
• Scentre Group (ASX: SCG)
• APA Group (ASX: APA)
• Insurance Australia Group Ltd (ASX: IAG)
• National Australia Bank Ltd (ASX: NAB)
• Ampol Ltd (ASX: ALD)
• Transurban Group (ASX: TCL)
• Telstra Corporation Ltd (ASX: TLS)
• Woodside Energy Group Ltd (ASX: WDS)
• Mineral Resources Limited (ASX: MIN)
• Wesfarmers Ltd (ASX: WES)
• Medibank Private Ltd (ASX: MPL)
• Macquarie Group Ltd (ASX: MQG)
• Domino's Pizza Enterprises Ltd (ASX: DMP)
• Charter Hall Group (ASX: CHC)
• Carsales.Com Ltd (ASX: CAR)
• Treasury Wine Estates Ltd (ASX: TWE)
• ALS Ltd (ASX: ALQ)
• Steadfast Group Ltd (ASX: SDF)
• Woolworths Group Ltd (ASX: WOW)
• Seek Limited (ASX: SEK)

"Overall, we think it is worth taking a holistic view of total return when considering a dividend strategy," read the memo. 

"Investors should adopt a total return approach when selecting stocks for their portfolios by thinking long-term and understanding that earnings growth will support long-term dividend income."

The post 22 high-yield ASX dividend shares Wilsons is targeting appeared first on The Motley Fool Australia.

If you're trying to do better than the market, then inevitably you have to pick some ASX shares that other people aren't thinking of.

After all, if you just buy the stocks that everyone else has, you won't be beating the average.

Despite all the turmoil this year, or perhaps because of it, there are many ASX shares out there that have been oversold and unloved.

Here's a couple of examples that Morgans investment advisor Jabin Hallihan reckons are buys right now:

Quality with 'limited competition'

PWR Holdings Ltd (ASX: PWH) is not a household name, by any means. 

But the company has been around for four decades, making high-end cooling solutions for the car industry.

PWR's products are of such high quality that they are used by professional motor racing teams, such as in Formula 1 and NASCAR.

Morgans analysts love how this gives it excellent growth prospects and resilience to any economic downturns.

"With limited competition, customers are more focused on performance rather than price," Hallihan told The Bull.

"The company's results demonstrated competitive edge and dominant market positions. PWR Holdings has been successful at offsetting margin pressure."

Morgans has a $10.05 share price target, which is a 28% premium to where it closed on Tuesday.

While analyst coverage is sparse, at least Bell Potter and Evans & Partners agree with Hallihan's team. According to CMC Markets, both rate PWR shares as a strong buy.

Great growth prospects plus shareholder buyback

ALS Ltd (ASX: ALQ) is an even more obscure brand than PWR. But it provides services essential to the running of other companies: testing, inspection, and certification.

Hallihan was a fan of ALS' "strong" full-year result.

"Underlying net profit after tax of $264.2 million was up 42.1% on the prior corresponding period and at the top end of guidance," he said.

"Sample volumes are improving year-on-year, while inflationary pressures are passed onto customers via price rises."

With many of its clients in the resources industry, Hallihan likes ALS' exposure to long-term demand for commodities.

His team has a price target of $14.14, which is a 29% rise from the closing price on Tuesday.

On Monday, after Hallihan made his recommendation, ALS announced it would conduct a $100 million on-market share buyback.

"The buy-back program reflects our disciplined and efficient capital management program, the strong balance sheet and focus on returning excess capital to our shareholders," said chief executive Raj Naran.

"Our balance sheet retains significant capacity for organic growth, including existing capacity expansions previously announced for FY23, future acquisitions including a solid pipeline of opportunities, and capital management."

The post 2 under-the-radar ASX shares to pounce on right now: expert appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) shares had a wobbly start to today's session before steadying in the green this afternoon. The index closed 0.52% higher at 6,794.30 points.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) led the way today, gaining more than 3%.

It was driven higher by Link Administration Holdings Ltd (ASX: LNK)'s recommended $4.81 per share takeover bid and the surging Novonix Ltd (ASX: NVX) share price.

On the other end of the spectrum was the S&P/ASX 200 Energy Index (ASX: XEJ). It slumped almost 3% amid falling oil prices and results from some of the sector's biggest players.

Shares in both Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) slipped despite the companies posting seemingly strong earnings for the June quarter. Readers can find Santos' latest earnings here and Woodside's here.

The Brent crude oil price fell 0.4% to US$106.92 a barrel overnight, while the US Nymex crude price dropped 1.9% to US$102.26 a barrel.

All in all, seven of the ASX 200's 11 sectors were in the green at market close. But which shares posted the biggest gains? Keep reading to find out.

Top 10 ASX shares countdown

And the top-performing share in the ASX's 200 biggest companies by market capitalisation is, of course, Link Administration.

Coming in second best is Liontown Resources Limited (ASX: LTR). The company's share price has been on a roll lately, gaining around 26% over the last 30 days. Find out what the lithium stock has been up to here.

Today's biggest gains were made by these ASX shares:

Data as at 4.30pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

Rebounding from last week's losses, the ALS Ltd (ASX: ALQ) share price is heading north on Monday.

At the time of writing, the testing services company's shares are swapping hands at $10.36, up 1.97%.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.97% higher following a strong finish by Wall Street on Friday.

ALS insider buying action continues

In light of the recent slump, the company's non-executive director, John Mulcahy recently took advantage of ALS's share price weakness.

In a statement to the ASX, the company advised that Mulcahy purchased 25,000 ALS shares at a price of $10.276 apiece. This was conducted via an on-market trade on 14 July by Mulcahy's indirect interest, Juntos Investments Pty Ltd.

The transaction equates to the value of $256,900.

Following the latest purchase, this means that Mulcahy now holds a total of 79,027 ALS indirect shares across his holdings.

The buy-in comes after another insider, non-executive Leslie Desjardins, picked up 6,800 ALS shares in late May.

It seems that some members of the board believe that ALS shares are trading at bargain levels for the moment.

It is worth noting that the ALS share price touched a 52-week low of $9.96 on 13 July before slightly recovering lost ground today.

This is a sharp contrast from when it was trading at a year-to-date high of $13.76 on 5 April.

ALS share price summary

Despite today's gain, the ALS share price has fallen by 17% in the past 12 months.

In 2022, its shares are down 20%.

Based on today's price, ALS presides a market capitalisation of approximately $4.92 billion.

The post Guess how much one insider spent on this ASX 100 share in the past week appeared first on The Motley Fool Australia.

In morning trade, the testing services company's shares jumped a further 10% to 16.5 cents.

When the HRL share price reached that level, it had doubled in value over the last two trading sessions.

Why is the HRL share price surging higher?

Investors have been bidding the HRL share price higher today after the company announced an agreement with industry giant ALS Ltd (ASX: ALQ) regarding a takeover.

According to the release, the two parties have entered into a bid implementation agreement under which ALS will acquire all of the HRL shares it does not already own by way of an off-market takeover at 16 cents cash per share.

This follows yesterday's announcement, which revealed that ALS had tabled an unsolicited, non-binding indicative offer.

The two parties have also agreed to a deal protection regime that includes no shop and no talk rights. Furthermore, ALS has a right to match any superior offers and HRL has agreed a break fee of $800,000.

'A very good outcome' for shareholders

The HRL board is advising shareholders to accept the offer, subject to there being no greater offer made from a third party.

HRL's non-executive chair, Greg Kilmister, believes the offer is a very good outcome for shareholders. He commented:

The HRL Board is unanimous in its view that this transaction is in the best interests of HRL shareholders. In making this assessment, the Board has carefully considered a range of matters including its view of the intrinsic value of HRL taking into account the company's current position and future prospects, and the certainty for shareholders of this all-cash offer. We believe this transaction is a very good outcome for HRL's shareholders, and for stakeholders more broadly, including our customers, staff and suppliers.

The post HRL share price jumps 10% as board backs takeover from ALS appeared first on The Motley Fool Australia.

Which is what we're seeing today after it was revealed that ASX 200 share ALS Ltd (ASX: ALQ) – a global inspection and certification business – made such a takeover bid for HRL Holdings Ltd (ASX: HRL) on 30 May.

HRL, a small-cap laboratory service provider, said negotiations remain under discussion.

What is the ASX 200 share offering?

According to this morning's release, ALS pitched an unsolicited, non-binding indicative offer to acquire 100% of its smaller rival's shares for 16 cents cash per share.

That's a massive premium to yesterday's closing price of 8.2 cents. And investors took note, driving the HRL share price up to 14 cents, a gain of 70.8% today.

With 494.38 million shares outstanding, the ALS bid values HRL at just over $79 million.

However, the deal isn't done yet.

HRL stressed that discussions on the takeover offer are "preliminary and incomplete and no agreement has been reached in relation to any transaction". It said there are no guarantees that the two parties would reach an agreement and that a transaction will eventuate.

HRL said that following the takeover offer from ALS, it entered into a Process Deed on 7 June 2022. This gives the ASX 200 share the opportunity to undertake due diligence and negotiate transaction documentation on an exclusive basis to 20 July 2022.

The Board said shareholders didn't need to take any action regarding the ALS proposal. Shareholders will be informed of developments.

ALS is being advised by Highbury Partnership and Baker & McKenzie.

McCullough Robertson is acting as the legal adviser for HRL.

How have these 2 companies been tracking?

With today's huge 71% intraday leap factored in, the HRL share price is up 17% year-to-date.

Investors have responded less enthusiastically to the ASX 200 share making the takeover offer. The ALS share price is down 2% today, putting it down 18% for the calendar year.

By comparison, the ASX 200 is down 11% in 2022.

The post Guess which small-cap company is soaring 71% on a takeover bid from an ASX 200 share appeared first on The Motley Fool Australia.

A number of popular ASX 200 shares are falling today despite no news coming from the companies.

As we move through the month of June, we'll see a number of ASX shares trading ex-dividend.

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

Below, we take a look at the list of shares that are trading ex-dividend today.

Incitec Pivot Ltd (ASX: IPL) shares are down 2.71% to $3.59 after trading ex-dividend today.

The fertiliser and commercial explosives manufacturer recorded a robust half-year result last month.

As such, the board declared a fully-franked interim dividend of 10 cents per share. This will be paid to eligible shareholders on 5 July.

Champion Iron Ltd (ASX: CIA) shares are also going ex-dividend on Monday, hovering 2.42% lower to $7.65.

The Canadian miner released its full-year results in late May, delivering solid revenue and earnings growth.

The board announced an unfranked final dividend of C$0.10 (A$0.11) per share. But you will have to wait until 28 June for your payout if eligible.

ALS Ltd (ASX: ALQ) shares are also trading without the rights to the company's partially-franked final dividend.

At the time of writing, the company's share price is $12.59, down 1.64%.

The testing services company dropped its full-year results on 25 May, with the board declaring a 17 cent per share dividend.

Shareholders will be paid this dividend on 4 July.

The post 3 ASX 200 shares trading ex-dividend today appeared first on The Motley Fool Australia.

Today, the S&P/ASX 200 Index (ASX: XJO) struggled to find momentum as investors fled equities across nearly all sectors. At the end of the session, the benchmark index finished 0.69% lower at 7,105.9 points.

The headlines continue to be dominated by disconcerting developments at a macro level. Today, it was a combination of economic growth warnings from China and the US Federal Reserve suggesting it will be raising rates at the next two meetings.

Almost in unison, 10 of the 11 sectors sunk into the red today amid suppressed sentiment. The only portion of the market to escape the crimson fate was tech shares, buoyed by a takeover bid for Appen Ltd (ASX: APX).

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, ALS Ltd (ASX: ALQ) was the biggest gainer today. Shares in the testing, inspection, and certification company jumped 6.08% after releasing solid full-year results yesterday. The team at Morgans released a note this morning giving the company an 'add' rating. Find out more about ALS here.

The next best performing ASX share across the market today was Lake Resources Ltd (ASX: LKE). The lithium exploration company lifted 2.82% despite not releasing any announcements. Although, strength was prevalent across lithium names today. Uncover the latest Lake Resources details here.

Today's top 10 biggest gains were made in these ASX shares:

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today 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 pushing higher:

ALS Ltd (ASX: ALQ)

The ALS share price is up 4% to $12.49. This appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has upgraded this testing services company's shares to an add rating with a price target of $14.38. This follows the release of a solid FY 2022 result yesterday.

Appen Ltd (ASX: APX)

The Appen share price is up a massive 30% to $8.31. This has been driven by news that the artificial intelligence services company has received a takeover approach. Appen has received an unsolicited, conditional, and non-binding indicative proposal from Canada's TELUS International to acquire it for $9.50 per share. This values Appen at approximately $1.2 billion. While management has engaged with TELUS, it appears to be looking for a higher offer.

Objective Corporation Limited (ASX: OCL)

The Objective Corp share price is up 3% to $15.53. This morning this software company revealed that it has been awarded a five-year NZ$13 million contract from the New Zealand Police for the implementation of the Arms Information System. Objective's RegWorks will be used by New Zealand Police to manage the end-to-end regulation of registration and licensing for firearms.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is up 3% to $41.03. Investors have been buying this logistics solutions company's shares following a strong night on the tech-focused Nasdaq index. It isn't just WiseTech that is rising today. The S&P/ASX All Technology Index is up 1.1% this afternoon despite the ASX 200 tumbling into the red.

The post Why ALS, Appen, Objective Corp, and WiseTech shares are pushing higher appeared first on The Motley Fool Australia.

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

ALS Ltd (ASX: ALQ)

The ALS share price is up over 2.5% to $12.08. This follows the release of the testing solutions company's full year results this morning. ALS revealed a 23.9% increase in revenue to $2,182.3 million and a 42.1% jump in underlying net profit after tax of $264.2 million. The latter was at the top end of its $260 million to $265 million guidance range.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is up 7.5% to $3.13. This morning the horticulture company released a trading update at its annual general meeting. That update was relatively positive throughout and revealed that Costa remains on track to deliver on its previous guidance for calendar year 2022.

Superloop Ltd (ASX: SLC)

The Superloop share price is up 4% to 82 cents. Investors have been buying this telco's shares after it announced the acquisition of white label broadband provider Acurus for $15 million. The acquisition is expected to allow Superloop to expand white label broadband relationships and deliver profitable growth in its subscriber base. Acurus' white label platform supports the internet offerings behind major brands such as Energy Australia and Officeworks.

Worley Ltd (ASX: WOR)

The Worley share price is up 2% to $15.04. The catalyst for this was the announcement of two new contract wins. The first is the award of a contract for the fourth expansion of an integrated polyolefins complex in Ruwais, United Arab Emirates. The other is a contract by Heartwell Renewables for field engineering services for a greenfield renewable diesel plant in Hastings, Nebraska.

The post Why ALS, Costa, Superloop, and Worley shares are charging higher appeared first on The Motley Fool Australia.

The fund managers at Wilson Asset Management (WAM) have told investors about two compelling ASX shares that are in the portfolio.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

WAM Capital Limited (ASX: WAM) targets "the most compelling undervalued growth opportunities in the Australian market".

The WAM Capital portfolio has delivered an investment return of 15.8% per annum since its inception in August 1999, before fees, expenses and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAO) return of 8.7% per annum over the same time frame.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

ALS Ltd (ASX: ALQ)

ALS is described by WAM as a business that provides laboratory testing, inspection, certification, and verification solutions and services across multiple industries in more than 65 countries.

The fund manager noted that last month ALS revealed an upgrade to its guidance for FY22. The underlying net profit after tax (NPAT) guidance is now for a range between $260 million and $265 million.

WAM noted that the midpoint of this net profit guidance represents a 6.3% increase on the previous guidance. The cause of the increased guidance was "strong" geochemistry sample volume growth and price improvements within the ALS minerals division. There was also additional volume growth above pre-pandemic level volumes in the ALS life sciences division.

Wilson Asset Management's outlook for the company remains "strong," and it believes the ASX share will continue to benefit from increased demand for mineral exploration services over the medium-term.

Brickworks Limited (ASX: BKW)

Brickworks was the other business named by WAM. It makes a diverse range of building products in Australia and North America.

In March 2022, Brickworks announced its FY22 half-year result which included a record half-year statutory NPAT of $581 million. This was a 720% increase from the prior year and was reportedly better than what the market had been expecting.

WAM also noted that the ASX share's building material manufacturing division in Australia saw earnings before interest and tax (EBIT) jump by 66% to $27 million. The fund manager pointed out this was due to increasing sales momentum after COVID-19 lockdowns.

The fund manager believes that the industrial trust that Brickworks owns half of with Goodman Group (ASX: GMG) continues to be undervalued by the market even though there has been sustained growth which has been fuelled by the stronger tailwind for e-commerce.

Wilson Asset Management is positive on Brickworks, particularly because further sales of land into the property trust will lead to a large rise in rental income, helping grow earnings by double-digits for this division.

The post 2 ASX shares rated 'buy' by this top fund manager appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 on Friday:

BHP shares rise on unification plans

The BHP Group Ltd (ASX: BHP) share price is pushing higher today after revealing that it will proceed with its unification. This will see BHP make its ASX listing the primary listing. The BHP Board believes unification is in the best interests of shareholders. It will result in a corporate structure that is simpler and more efficient, reduces duplication and streamlines BHP's governance and internal processes.

CSL responds to acquisition speculation

The CSL Limited (ASX: CSL) share price is trading lower today after responding to speculation that is planning to acquire Swiss-based Vifor Pharma for ~$10 billion. The biotherapeutics giant said it regularly assesses strategic opportunities that can improve its business, improve the health of people around the world, and provide value to shareholders. But warned there is no certainty that any transaction will occur.

Transurban distribution declared

The Transurban Group (ASX: TCL) share price is pushing higher after declaring its distribution for the six months ending 31 December 2021. The toll road giant will be paying a distribution of 15 cents per stapled security. This is in line with the distribution it paid during the prior corresponding period.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the ALS Ltd (ASX: ALQ) share price with a 3% gain on no news. The worst performer has been the TPG Telecom Ltd (ASX: TPG) share price with a 6% decline. This follows news that founder David Teoh is selling down his holding.

The post ASX 200 (ASX:XJO) midday update: BHP higher on unification plans, TPG tumbles appeared first on The Motley Fool Australia.

Some of the companies that were the most devastated by the COVID-19 pandemic were those in the services sector.

Social restrictions were especially rough for ASX shares of businesses that rely on a physical presence to deliver their services.

But as the Australian population moves towards a 90% full vaccination rate, these companies are set to make a roaring comeback.

Wilson Asset Management analysts recently named 2 such ASX shares in that position:

No shortage of mining clients for this ASX company

Laboratory testing, inspection and certification services provider ALS Ltd (ASX: ALQ) has seen its shares rally more than 40% over the year… until last week.

The stock has dropped almost 9% since 15 November, which could make it a bargain.

Wilson senior investment analyst Shaun Weick certainly rates it as a current "strong buy", with many of its clients in the minerals sector.

"The backdrop for commodity exploration remains very strong. The company's increasing capacity by 15%," he told a WAM YouTube video.

"You're seeing price increases go through and you're also seeing mix evolve towards junior miners."

Weick added that his team thinks ALS' operating leverage is underappreciated.

"We also think the peers are providing a good read through on the life sciences side, which will also benefit from bolt-on [acquisitions]."

The WAM team is not the only one high on ALS. According to CMC Markets, 9 of 15 analysts rate the stock as a strong or moderate buy, with 5 recommending it as a "hold".

Overseas pickup a great omen for Australian market

International student placement provider IDP Education Ltd (ASX: IEL) has seen its shares rally more than 84% this year so far.

But Weick is expecting even further growth, with the industry already seeing "a very strong bounce back" as border restrictions melt away in the UK and Canada.

"We think [that] presents a very strong lead indicator as we look into Australia, where hopefully into calendar year 2022, our borders will be reopened and you'll see significant intakes of students."

IDP also has a division that conducts International English Language Testing System (IELTS) testing.

To complement this, IDP earlier this year acquired a testing business in India, which was bought for cheap in Weick's opinion.

"Going forward, we think there's still significant consolidation to play out here in terms of the global distribution of testing. We think this one's a buy."

Morgan Stanley analysts agree with WAM, labelling IDP shares as "overweight" with a $40.20 price target. The stock was trading at $37.33 on Wednesday morning.

The post 2 services ASX shares to buy right now: experts appeared first on The Motley Fool Australia.

While a good number of shares dropped lower with the market, some fell more than most. Here's why these were the worst performing ASX 200 shares last week:

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was the worst performer on the ASX 200 last week with a sizeable 10.9% decline. This was despite there being no news out of the sports betting company during the period. This decline means the PointsBet share price is down 24% since this time last month even though the company was recommended for a licence in New York.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price wasn't far behind with a decline of 9.5% over the five days. Investors were heading to the exits in their droves following the release of the banking giant's first quarter update. That update revealed a softer than expected profit and significant margin pressures. The latter was driven by higher liquid asset balances, home loan price competition, switching to lower margin fixed rate loans, and the continued impact of a low interest rate environment.

ALS Ltd (ASX: ALQ)

The ALS share price was out of form last week and dropped 7.7%. This followed the release of the testing services company's half year results. For the six months ended 30 September, ALS delivered a 57.7% increase in underlying NPAT from continuing operations to $127.1 million. However, management's guidance for full year underlying profit implies a slowdown in its growth in the second half. It is forecasting full year growth of ~30% to ~36%.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price was a poor performer and tumbled 7.6% last week. This may have been driven by weakness in the iron ore price. For example, ahead of trade on Friday, the iron ore price had fallen US$2.75 or 3.1% overnight to US$87.20 a tonne.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 today:

Crown jumps on takeover approach

The Crown Resorts Ltd (ASX: CWN) share price surging higher after it received a takeover approach from private equity firm, Blackstone. According to the release, Blackstone has made an unsolicited and non-binding proposal to acquire all of the shares in Crown by way of a scheme of arrangement at a price of $12.50 cash per share. This will be reduced by the value of any dividends or distributions declared or paid by Crown.

WiseTech falls on AGM update

The WiseTech Global Ltd (ASX: WTC) share price is ending the week deep in the red. This follows the release of the logistics solutions platform provider's annual general meeting presentation. In the presentation, management reaffirmed its guidance for FY 2022. It continues to expect revenue of $600 million to $635 million (18% to 25% growth) and EBITDA of $260 million to $285 million (26% to 38% growth). It appears as though the market was expecting a guidance upgrade.

Lithium miners fall

It hasn't been a good day for lithium shares. A number of ASX lithium shares are falling on Friday and are weighing on the index. Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) are both down around 3% at the time of writing. This may be due to profit taking from some investors after strong gains this year.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday by some distance is the Crown share price with a 16% gain following its takeover approach. The worst performer has been the ALS Ltd (ASX: ALQ) share price with a 4.5% decline. This is despite there being no news out of the testing services company.

The post ASX 200 (ASX:XJO) midday update: Crown jumps, WiseTech tumbles appeared first on The Motley Fool Australia.

What if you knew of a small-cap ASX share that was doing all the right things that its bigger rival did years ago?

If you could see how it could grow as big as the larger competitor, would you be tempted to buy in?

NovaPort Capital analyst Tim Binsted is certainly excited when he's fishing for small-cap "tiddlers that can grow into tomorrow's whales".

And he reckons he's just caught one.

"Laboratory and environmental services business HRL Holdings Ltd (ASX: HRL) is capitalised at just over $55 million and the journey of ASX-listed peer ALS Ltd (ASX: ALQ) — capitalised at more than $6 billion — gives some indication of the market opportunity."

A small-cap that's already profitable

A major upside of HRL, according to Binsted, is that it's in the black already.

"Unlike many early-stage businesses, HRL is already profitable," he said on the NovaPort blog.

"This meets a key criterion that NovaPort Capital looks for in emerging companies: cashflows that can fund growth without the downside risk associated with many high-growth, high cash-burn businesses."

Binsted showed a comparison of underlying earnings margins of HRL and its competitors, which showed it ranked 3rd in a field of 9.

"HRL generates margins that are very healthy when judged against a peer set of much larger businesses."

The business also has "a strong balance sheet with negligible debt", according to Binsted.

3 paths to growth

Binsted's team thinks HRL's testing capabilities in food and water quality and environmental hazards put it in an excellent position for growth.

There are 3 ways that it could grow:

• Investment in existing operations (new tests, equipment upgrade, new regions)
• Bolt-on acquisitions to expand services or customer demographics
• 'Transformational' acquisition for rapid expansion

According to Binsted, HRL is pursuing all 3 avenues.

"The recent acquisition of Water Testing Hawkes Bay in New Zealand, while small, demonstrates the capacity to continually expand the group's testing lines," he said.

"HRL is also investing in a joint venture with Milk Test NZ called Food Lab that has just commenced trading and will begin with a focus on the NZ dairy industry."

HRL leadership estimate Food Lab's addressable market is about NZ$40 million, to be fought over with 2 main competitors.

"Snaring a third of this market would be material given HRL's current revenues of around $35 million."

As for that massive transformational takeover, the chair of HRL is a man named Greg Kilmister.

"Kilmister was the chief executive of ALS Limited and took the business from a market cap of less than $400 million to more than $3 billion," said Binsted.

"That's the kind of steady hand that provides comfort in any big strategic moves or tough patches."

HRL has a clear plan

Binsted was impressed that HRL presented a very precise 3-year plan for growth during its recent financial year 2021 results announcement.

"This will require reinvestment, but we are willing to back management to use shareholder capital wisely and drive value-accretive growth."

The company has a software arm called Octfolio which Binsted's team thinks has tremendous potential.

"Octfolio's hazardous materials, workplace safety, and field management software generates just under $1 million in revenue. At that size, it has proof of concept and customer validation but is immaterial to earnings and valuation," the analyst said.

"With a re-energised sales focus, Octfolio could become a significant, and high value, revenue stream. Its current contribution is not valued by the market, so the upside is large relative to any downside."

Small-cap risk

Of course, Binsted reminded investors that no ASX share is a sure thing.

"Growth is not a right and markets are competitive. There are no guarantees that HRL's organic investment drive will bear fruit," he said.

"It is also possible that the share price will suffer near-term as the growth initiatives crimp current earnings ahead of any potential revenue growth."

HRL currently operates in "a comfortable niche", but desperately needs economies of scale to elevate to the next level.

"Failure to get to scale or a misguided acquisition in the quest to bulk up are 2 further risks to our investment thesis."

The post Why this small-cap ASX share can follow $6 billion rival appeared first on The Motley Fool Australia.

At the time of writing, the testing services company's shares are up 3% to $12.94.

Why is the ALS share price rising?

Investors have been bidding the ALS share price higher today after the release of its annual general meeting presentation and the announcement of an acquisition.

In respect to the former, the presentation took investors through the company's performance in FY 2021 and provided an update on trading so far in FY 2022.

ALS has started FY 2022 strongly and is expecting this to lead to solid first half profit growth. Management has provided guidance of first half underlying net profit after tax of between $115 million and $125 million. The midpoint of this guidance range represents a sizeable 49% increase on the prior corresponding period.

It advised that this reflects the strong start that it is seeing across its Life Sciences and Commodities divisions as volumes continue to improve as global activity increases.

Acquisition news

Not included in its first half guidance is the proposed acquisition of an initial 49% interest in NUVISAN, a pharmaceutical testing business with operations in Germany and France.

Management believes the acquisition provides it with the platform to expand its offering from quality control testing into 'upstream' services in research and development.

Growth in this area of the market is driven by major pharmaceutical companies outsourcing drug development research and testing due to increasing pricing pressure, lack of internal capability, and expertise from external providers.

ALS will initially acquire 49% of the equity in NUVISAN for a consideration of ~EUR145 million. It also has an exclusive call option to acquire the remaining equity from 1 January 2024. This option expires by 30 September 2026 at the latest.

Should this option be exercised, the remaining 51% equity in NUVISAN will be acquired at 13x adjusted EBITDA based on the 12 months preceding the purchase.

ALS' Managing Director and CEO, Raj Naran, commented "This is a significant expansion of our Life Sciences capability as we grow our presence in the strategically important Pharmaceutical market. This will allow us to move our service offering up the supply chain into drug development and research testing, which significantly expands our addressable markets. NUVISAN offers us a platform in the key markets of Germany and France which has long been an aspiration for our Life Sciences division."

The post Why the ALS (ASX:ALQ) share price is charging higher today appeared first on The Motley Fool Australia.

The ALS Ltd (ASX: ALQ) share price was one of the S&P/ASX 200 Index (ASX: XJO)'s best performers of last month. Shares in ALS ended May 17.4% higher than where they started.

The global testing, inspection and certification company's shares were driven by a debt refinancing agreement and its full-year results.

Let's take a look at the month that was for the ALS share price.

A productive May for the ALS share price

Debt refinancing

Early in May, ALS stated it had agreed to refinance its bank debt with multi-currency, "geographically diverse" revolving facilities.

The company's debt is valued at US$350 million.

The banks involved in the new facilities include ASX-listed Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC).

JP Morgan and the Bank of America (NYSE: BAC) are also involved in the facilities.

ALS stated the refinancing would provide more liquidity, and better support its growth strategy and funding requirements.

Full-year results

On the day ALS released its full-year results, the company's share price closed 12.8% higher than it did in the previous session.

ALS' results included 25% more earnings before interest, tax, depreciation, and amortisation (EBITDA) than the previous year.

A fall in both revenue and expenses saw ALS bring in $421.1 million over the 12 months ended 31 March 2021.

ALS said its decreased revenue was mainly caused by the Australian dollar's gains.

After expenses, ALS recorded a $174.1 million profit for the period.

The company will provide its shareholders with a fully franked interim dividend of 8.5 cents per share and a final 70% franked dividend of 14.6 cents.

The company also announced it has committed to repaying any COVID-19-related subsidies it has been given from various governments.

ALS share price snapshot

The ALS share price's performance over May continues its solid streak across 2021.

Currently, the ALS share price has gained 26.9% since the start of the year. It's also 70.6% higher than it was at this time last year.

The company has a market capitalisation of around $6 billion, with approximately 482 million shares outstanding.

The post The ALS (ASX:ALQ) share price gained 17% in May. Here's why appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) was on form in May and charged notably higher. The benchmark index rose for the eighth consecutive month, recording a 1.9% gain over the period to end at 7,162.6 points.

While a good number of shares climbed higher with the index, some posted stronger gains than others. Here's why these were the best performing ASX 200 shares in May:

Resolute Mining Limited (ASX: RSG)

The Resolute share price was the best performer on the ASX 200 in May with a 25.8% gain. This gain appears to have been driven largely by bargain hunters looking for undervalued options in the gold sector. After all, even after this strong gain, the Resolute share price down 23% year to date. Its shares were sold off earlier this year due to weak production and disappointing guidance. In addition to this, a solid rise in the gold price gave its shares a lift. Fellow gold miners Evolution Mining Ltd (ASX: EVN), Gold Road Resources Ltd (ASX: GOR), and Perseus Mining Limited (ASX: PRU) recorded gains of at least 17% in May thanks to the rising gold price.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price wasn't far behind with a monthly gain of 23.4%. This gain appears to have been driven by the release of a couple of bullish broker notes during the month. Both Macquarie and Credit Suisse upgraded its shares to an outperform rating on valuation grounds. Macquarie has a $1.70 price target and Credit Suisse has a $1.55 price target.

ALS Ltd (ASX: ALQ)

The ALS share price was a strong performer and recorded a 17.5% gain. The catalyst for this was the release of the global testing, inspection, and certification company's full year results. ALS reported a 5% decline in revenue to $1,761.4 million and a 1.5% reduction in underlying net profit after tax to $185.9 million. This was a significant improvement on its first half performance.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price was on form and charged 16% higher in May. Investors were buying the wine company's shares following the release of an investor update. According to the release, the company is expecting its earnings before interest, tax, and SGARA (EBITS) to be in the range of $495 million to $515 million in FY 2021. This was ahead of the market consensus estimate for EBITS. This went down well with analysts at Morgans. In response, the broker upgraded Treasury Wine's shares to an add rating with a $13.00 price target.

The post These were the best performing ASX 200 shares in May appeared first on The Motley Fool Australia.