1) So much for the extreme volatility some market watchers expected following the United States inflation figures, which came in slightly lower than expected.

The S&P 500 Index (SP: .INX) rose a modest 0.73% whilst the Nasdaq Composite (NASDAQ: .IXIC) index gained just over 1%. The ASX 200 is making headway in afternoon trade on Wednesday, with Block (ASX: SQ2) shares the biggest gainer, up 8.3%, but still down 41% over the past 12 months. 

The softer-than-expected US inflation print gives the green light to US Federal Reserve chair Jerome Powell to raise interest rates by 50 basis points overnight Wednesday.

The main game in town now for stock market watchers is predicting the terminal interest rate and when the Fed will start cutting interest rates.

Quoted on Bloomberg, Jason Katz, managing director and private wealth adviser at UBS, expects interest rates will stay higher for longer.

If they cut rates in the latter part of next year, that's going to be because they broke things along the way and things are ugly. So it's our view that the terminal rate lands anywhere between 5%-5.25% and remains there for the full calendar year.

Such an outcome would likely continue to put pressure on global stock markets, certainly for the first half of next year. Although the ASX 200 has had a good year, certainly when compared to the double-digit losses widely seen on Wall Street, you'd imagine there would be some comeuppance should US markets continue to fall.

2) Of course, not everyone shares the same views as Jason Katz – the divergence of opinion and thoughts is what makes a market.

"The coming year for investing may turn out to be better than many expect for stocks even though a recession appears likely," pros at Natixis Investment Management said Wednesday on MarketWatch.

"I'm bullish because everybody is bearish," said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Management Solutions. "The downside is already reflected in the market."

Simple is often best, especially given how hard it is to predict what might happen to the economy, to the consumer, to interest rates, to unemployment, to inflation, and more.

3) Writing in their November monthly update, the Surrey Australian Equities Fund said they "are positive on the outlook for Australian equities over the medium term".

Our view remains that inflation has been materially impacted by supply chain issues and as these normalise and higher interest rates take effect, inflation could ease and with it the recent sharpness of interest rate increases… Should rates increases start to slow and the US 10-year bond yield settles, we are positive on equity valuations.

The fund also notes, when it comes to small-cap stocks, positive recoveries often follow down years. 

In 2022, huge gains in resources stocks have helped offset massive losses in growth stocks, such that the S&P/ASX Small Ordinaries Index (ASX: XSO) is down "only" 19% so far this year. Adopting the simple technique of being bullish because everyone else is bearish, I'd guess a basket of beaten-down small-cap growth stocks will outperform in 2023.

I own more than my fair share of small-cap "dogs of 2022", although thankfully I haven't owned them all year, somewhat limiting my losses. 

Moving into 2023, I'm holding out recovery hopes for these dogs, with their one-year share price performance noted. In alphabetical order…

BlueBet Holdings Ltd (ASX: BBT) – down 73%

Field Solutions Holdings Ltd (ASX: FSG) – down 51%

Marley Spoon (ASX: MMM) – down 81%

Plenti Group Ltd (ASX: PLT) – down 64% 

RPM Automotive Group Ltd (ASX: RPM) – down 44%

Swoop Holdings Ltd (ASX: SWP) – down 77%

Hydration Pharmaceuticals Co Ltd (ASX: HPC) – down 72%

Touch Ventures Ltd (ASX: TVL) – down 64%

It's a motley group of companies, with little in common, apart from the devastating falls experienced by shareholders over the past 12 months.

That said, apart from Touch Ventures, which is an investment vehicle trading at a significant discount to its net asset value, they are all growing quickly, mostly have cash or little to no debt, and are either profitable or trade around break-even.

Here's hoping for a happier 2023 and beyond for these dogs, and to the micro-cap (and fun but risky, so please don't try this at home) portion of my portfolio. I look forward to reporting back on progress come this time next year. 

The post "Bullish because everybody is bearish" – here are 8 dogs of 2022 I'm backing for the win in 2023  appeared first on The Motley Fool Australia.

1. The terminal cash rate for this economic cycle will likely be around 4%. That means the Reserve Bank of Australia (RBA) will be largely done raising interest rates by around the middle of next year.

2. Elements of the equity markets will recover from their recent lows. In the US, I'd be looking at large-cap tech stocks like Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), and Meta Platforms Inc (NASDAQ: META). Australia is a little trickier, given commodity stocks have been strong, bank stocks relatively stable, and some tech stocks, even after their shellacking this year, still look expensive.

3. Many stocks will never again reach their 2021 all-time highs. Many former market darlings and COVID-19 beneficiaries would have to 10x from here to get back to where they traded at their peak. It just isn't going to happen. I'm looking at you Zip Co Ltd (ASX: ZIP), Sezzle Inc (ASX: SZL), and Redbubble Ltd (ASX: RBL), and they've got plenty of mates.

4. That said, some fallen heroes will stage remarkable recoveries, rising 300% or more from these depressed levels. I own a few that have taken big tumbles for which I hold out hope of recovery, and in more recent times, I've taken bites in a few beaten-down ASX small and microcap stocks that are still growing quickly.

Recovery hopefuls: Pinnacle Investment Management Group Ltd (ASX: PNI), Aussie Broadband Ltd (ASX: ABB)

Newer bites: Field Solutions Holdings Ltd (ASX: FSG), Alloggio Group Ltd (ASX: ALO), Mighty Craft Ltd (ASX: MCL)

5. The economy will slow as interest rate rises start to bite. This will put pressure on corporate earnings, particularly in consumer discretionary retailers like Harvey Norman Holdings Limited (ASX: HVN), Kogan.com Ltd (ASX: KGN), and Temple & Webster Group Ltd (ASX: TPW). Profit warnings will likely outpace profit upgrades.

6. Even though some companies are likely going to experience falling profits in FY23, in some cases this has already been priced into their cheap stock prices. I'm certainly no energy and commodity stock expert, and I'm always very conscious of their cyclicality, but Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) trading on 8 to 10% trailing fully franked dividend yields and on trailing single digit multiples have significant future falls in the iron ore and oil price already reflected in their share prices.  

7. On a trailing basis, some retailers look dirt cheap. At $2, the Dusk Group Ltd (ASX: DSK) share price trades at seven-times profit and on a fully franked dividend yield of 10%. The specialty retailer of home fragrance products didn't provide FY23 guidance given "ongoing uncertainty surrounding the macro-environment". Dusk is capitalised at $125 million, has $21 million cash, and no debt. 

8. If you believe the economy will recover (it always has done so in the past) and corporate profits will be higher three to five years from now (as they have been in the past), and that will translate to a higher stock market in the future (as it has done so in the past), one of the simplest investing strategies and processes is to dollar-cost average into a low-cost exchange-traded fund (ETF).

My favoured option is the Vanguard MSCI Index International Shares ETF (ASX: VGS). Since its inception in 2014, it has returned 11.4% per annum, something that would have turned an initial $10,000 investment into almost $23,000. The ETF holds stakes in large US companies, including Apple, Microsoft, Amazon, Tesla, Johnson & Johnson, and Exxon Mobil. 

If you want to throw in a local flavour, consider adding the Vanguard Australian Shares Index ETF (ASX: VAS). You'll get exposure to the big miners, the big banks, and the big supermarkets.

9. Interest rates will start turning lower around the third quarter of next year as the economy slows in response to standard variable mortgage rates of around 7.5 to 8%. Consumer confidence has already taken a big hit, dropping to its lowest level since April 2020 amid higher interest rates and surging inflation. 

To the points above, discretionary spend – retail, food and beverage, even travel – is about to take a hit.

10. The forward-looking stock market has already priced much of what's coming into the prices of individual stocks. It knows not how far spending will fall, nor how much some corporate profits will shrink. 

Just as the stock market is falling now, despite an economy with near-record-low unemployment, the forward-looking stock market will go higher in the face of a sharply weaker economy. Bad news is good news for the stock market.

In the meantime, volatility is likely to persist. There could even be another bear market from here, where the S&P/ASX 200 Index (ASX: XJO) falls a further 20%.

For stock pickers, use it to your advantage to add to your favourite existing stocks, and to throw a couple of new positions into your portfolio. 

For ETF investors, continue making regular (fortnightly or monthly) contributions, come hell or high water. With annualised returns potentially around the 8% level, an investment made today would double in nine years. 

It reminds me of the Bill Gates quote…

"Most people overestimate what they can do in one year and underestimate what they can do in ten years."

The post These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market appeared first on The Motley Fool Australia.

The Field Solutions Holdings Ltd (ASX: FSG) share price is heading north after the company announced its completed capital raise.

During late-afternoon trade, the regional telco carrier's shares are swapping hands for 18 cents a pop, up 9.09%.

Details of the share placement

Investors are buying up Field Solutions shares after the company released the latest results of its capital raising efforts.

In the release, Field Solutions advised it has received firm commitments to raise $20 million through an institutional placement. The offer was presented to institutional and professional investors at an issue price of 16.5 cents per share. This equates to approximately 121.2 million new ordinary shares being added to the company's registry.

Field Solutions highlighted that it received applications totalling more than $40 million, reflecting strong interest from institutional and sophisticated investors.

The company said it would allocate the proceeds towards funding the company's growth strategy and providing flexible opportunities when accelerating its network expansion.

Field Solutions will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval (78,472,768 shares). The company will use an extension to the listing rule (listing rule 7.1A) to issue the remaining shares with the additional 10% capacity (55,648,512 shares).

What did management say?

Field Solutions CEO Andrew Roberts said:

The additional funding will allow us to support working capital in the roll-out of our Regional Australia Network (RAN), covering 6 states and allow capability to extend further if opportunities arise to increase coverage and capability.

… To have outstanding support provided by significant cornerstone funds not previously invested, and further support from existing holders, this is a great boost to see such confidence in our vision to build a network for rural, regional and remote Australia.

Field Solutions share price review

Since listing in October, Field Solutions shares have accelerated to post a gain of more than 300%. The company's share price is about 14% off its 52-week high of 21 cents reached last month.

Based on today's price, Field Solutions presides a market capitalisation of roughly $100.1 million, with around 556.5 million shares on issue.

The post Here's why the Field Solutions (ASX:FSG) share price is roaring 9% today appeared first on The Motley Fool Australia.

The Field Solutions Holdings Ltd (ASX: FSG) share price is rising during late afternoon trade. This comes after the regional telco carrier announced it's received additional funding from the federal government.

Heading towards market close, the Field Solutions share price is up 6.67% to an intraday high of 16 cents.

What did Field Solutions update the ASX with?

Investors are buying Field Solutions shares following the company's latest release.

In a statement to the ASX, Field Solutions advised it has received $4.1 million from the federal government's Regional Connectivity Program Fund (RCP).

The Regional Connectivity Program Round 2 (RCP2) is a $106 million investment initiative to develop telecommunications infrastructure projects outside major cities. It's targeted at partnering with companies such as Field Solutions to provide connectivity for rural, regional and remote areas.

According to its statement, Field Solutions has been awarded further funding to build network infrastructure across four local government areas. They include regional towns Bourke, Carrathool, and Leeton in New South Wales, as well as Mareeba in Queensland.

Construction is scheduled to begin in September 2021, with revenue generated from the networks expected from H2 FY22 onwards. Field Solutions estimates revenue of roughly $11 million over the 7-year period through its build, own and operate agreements.

Pleasingly, the company noted it's been successful in 90% of its RCP applications and has been awarded a quarter of the total funding pool. This includes the previous Regional Connectivity Program Round 1 (RCP1), which saw $83 million handed out to deliver next-generation regional connectivity.

Field Solutions CEO Andrew Roberts commented:

These new networks will be the catalyst for FSG to deliver the next generation of rural connectivity, enabling 5G, mobility and IoT specifically for agribusiness and rural, regional and remote Australia.

We look forward to working with many underserviced local communities as part of RCP2.

Field Solutions share price summary

Field Solutions shares have accelerated by more than 370% during the last 12 months, and are up by 260% year-to-date. The company's share price reached a multi-year high of 21 cents last month, before some profit taking took place.

Based on current valuation, Field Solutions has a market capitalisation of about $89 million.

The post Why the Field Solutions (ASX:FSG) share price is up 6% today appeared first on The Motley Fool Australia.

The Field Solutions Holdings Ltd (ASX: FSG) share price is soaring today after the company shared news it has secured $20 million worth of government funding.

The Australian rural, regional and remote telecommunications carrier was awarded the funding by the Federal Government's Regional Connectivity Program Fund (RCP).

After the news broke, the Field Solutions share price soared 50%. It has since dropped to trade for 16 cents, which is still a gain of 10.71%.

Let's look closer at the news from Field Solutions.

Delivering broadband to previously underserviced Australian areas  

Field Solutions said the funding from RCP will help it deliver new networks in 5 states and territories where broadband and connectivity are lacking.

The telecommunications company will use RCP funding to build network infrastructure in 12 local government areas. The infrastructure will span New South Wales, Queensland, Victoria, Western Australia and the Northern Territory.

Construction on the projects is expected to begin in August 2021. Field Solutions hopes to have revenue coming in from them as early as the second half of the 2022 financial year.

Field Solutions' other projects include deploying 5G on selected networks and its aim to grow to more than 160 towers across Australia over the next 18 months.

The company estimates, across all its projects, its total grant funding pool will be in excess of $600 million. That number includes both state and federal funding.

Commentary from management

Field Solutions' CEO Andrew Roberts commented on the company's funding from RCP. He said:

[Field Solutions'] community approach to building telecommunications infrastructure has been recognised as a viable, cost-effective and forward looking way of delivering true broadband solutions for rural, regional and remote areas…

Our aim is to deliver feature rich, quality telecommunications services, equivalent to what is available in metropolitan areas.

Field Solutions share price snapshot

The Field Solutions share price is having a party on the ASX lately.

Currently, it's up by 325% year to date. It's also up by 750% over the last 12 months.

Field Solutions has a market capitalisation of around $76 million, with approximately 543 million shares outstanding.

The post Why the Field Solutions (ASX:FSG) share price shot up 50% today appeared first on The Motley Fool Australia.

Field Solutions Holdings Ltd (ASX: FSG) shares lifted today after the company announced a wholesale supply, management and partnership contract. At the market's close, the Field Solutions share price was trading hands at 8.8 cents, up 3.5%.

What did Field Solutions announce?

The Field Solutions share price jumped higher today after the company provided its positive update to the ASX.

According to its late afternoon release, Field Solutions has executed a wholesale supply, management and partnership agreement with FlipConnect.

Established in 2015, FlipConnect is a telecommunications and entertainment brand located in Australia, which provides internet and over-the-top TV entertainment.

FlipConnect will be the second major customer to take advantage of Field Solutions' virtual wholesale broadband agreement (WBA) product. The platform is designed to remove the costs of using internet service providers (ISP) or managed service provider (MSP) when delivering nbn services.

As a result, ISP companies such as FlipConnect can pay for backhaul, transit and termination on a per-subscriber model, while focusing on driving sales growth.

Terms of the deal

Under the deal, Field Solutions will deliver national nbn, network management, and orchestration services to FlipConnect. In return, FlipConnect will resell Field Solutions' products across its regional non-nbn fixed wireless network. This opens up new opportunities for Field Solutions in capturing new market share.

The contract will run for an initial three-year period and generate $24 million in revenue for Field Solutions. Project commencement is expected to occur sometime in April and will take around two months to complete.

Management commentary

FlipConnect CEO Steve Kotzohambos commented:

FSG's orchestration platform across nbn products, as well as voice, business and mobile services allows us to expand our offering and reach, which, combined with our excellent customer experience, gives us a truly unique and competitive advantage.

Field Solutions share price performance

The Field Solutions share price has accelerated by 340% in the last twelve months and is up 120% year to date. The company's shares reached a multi-year high of 9.1 cents this month before retreating to their current levels.

Based on the current share price, Field Solutions has a market capitalisation of about $45.4 million.

The post Field Solutions (ASX:FSG) share price lifts on partnership agreement appeared first on The Motley Fool Australia.

The Field Solutions Holdings Ltd (ASX: FSG) share price is rising in late afternoon trade. This comes after the company announced it had secured 5G spectrum for rural, regional and remote parts of Australia.

The telecommunications carrier and technology company provides connectivity for rural, regional and remote areas. It builds fixed wireless networks, employing technologies such as fibre and fixed wireless spectrum.

After reaching a multi-year high of 8.2 cents in morning trade, the Field Solutions share price is trading up 7.35% at 7.3 cents, at the time of writing.

What did Field Solutions announce?

In today's release, Field Solutions advised it has been allocated 5G millimetre wave spectrum (26GHz) to 85% of Australia's landmass.

The company currently operates networks in New South Wales, Queensland, Tasmania, Victoria, and the Northern Territory. A recent government contract award approved Field Solutions to develop infrastructure assets in rural areas across the grain belt region. The company estimated its network would cover more than 90,000sq km by the end of the year.

The granted licences will enable Field Solutions to deploy its network in locations that don't have 5G services. The company noted that the agricultural sector and a change in working trends were driving the increase in regional areas.

The company expects to start rolling out its 5G network within the next 6 months. Field Solutions revealed that deployment areas were based on local demand, government funding, and business strategy.

Words from the CEO

Field Solutions CEO Andrew Roberts welcomed the progress, saying:

FSG has secured 5G spectrum holdings to ensure that rural, regional and remote Australia is not left behind in the rollout of 5G services. We needed to secure this spectrum to ensure we can deploy superfast services within our target markets.

5G deepens our long-term commitment to the bush, and ensures FSG remains the leading provider of services for rural, regional and remote Australia.

Field Solutions share price review

After falling to a 52-week low of 1.8 cents in April last year, the Field Solutions share price has accelerated since. The company's shares reached a multi-year high of 8.2 cents today, reflecting a gain of more than 300%.

Based on the current share price, Field Solutions has a market capitalisation of close to $40 million.

The post Field Solutions (ASX:FSG) share price reaches multi-year high. Here's why appeared first on The Motley Fool Australia.

Field Solutions Holdings Ltd (ASX: FSG) shares are rocketing higher today following announcement of the company's latest government funding award. At the time of writing, the Field Solutions share price is sitting at 6.9 cents, up 15%.

What did Field Solutions announce?

The Field Solutions share price is on the run after the company announced it has been selected for a government funding program.

According to its release, Field Solutions advised it has been awarded $2.1 million in government funding. The funds were approved under the third round of the Digital Farm Grants Program by the Western Australia Government's Department of Primary Industries and Regional Development.

The Digital Farm Grants program is aimed at improving business and agricultural productivity through linking communities to the NBN in rural Western Australia. The state government is aiming to see expanded mobile coverage to support farming businesses in accessing smart farming technologies and practises.

Field Solutions revealed that the funds received will be allocated towards building its infrastructure in rural areas across Western Australia. This includes extending its network assets across the Grainbelt region. The Grainbelt region covers over 3,000 properties and businesses that have limited internet access.

The project is expected to commence in May this year, with revenues to flow sometime in the first half of FY22. The company estimates that over a 10 year period, it will accumulate revenues of roughly $27 million.

CEO commentary

Field Solutions CEO Andrew Roberts touched on a number of points, saying:

The awarding of the Digital Farm Grant has reinforced our decision to deliver services in WA.

The WA market is well suited to our fixed wireless infrastructure approach to serve rural, regional and remote communities and business.

We are currently expanding our network across southern and central Queensland. Once complete, our total surface area covered will be over 81,000 squared kilometres. This project in Western Australia will extend our network adding 8,000 squared kilometres to our coverage.

Our immediate focus is on the successful delivery of these new networks, however, concurrently we will be offering our complete suite of products, taking advantage of our nationwide network.

About the Field Solutions share price

The Field Solutions share price has risen over 270% in the last 12 months, reflecting positive investor sentiment.

Field Solutions shares had reached a 52 week low of 1.8 cents in March 2020. Based on the current share price, the company has a market capitalisation of around $39 million.

The post Why the Field Solutions (ASX:FSG) share price is jumping 15% today appeared first on The Motley Fool Australia.

The Field Solutions Holdings Limited (ASX: FSG) share price hit a multi-year high today after the company announced a partnership agreement with MyRepublic Australia Pty Ltd.

In late-morning trade, the Field Solutions share price shot up 54% to a high of 7 cents, before retreating to 5.3 cents at the time of writing, up 20.4%.

The telecommunications carrier and technology company provides connectivity for rural, regional and remote areas. It builds fixed wireless networks, employing technologies such as fibre and fixed wireless spectrum.

What's driving the Field Solutions share price?

The Field Solutions share price is up there among the top ASX performers today after its market update this morning. The company reported that it has signed a non-binding wholesale supply, management and partnership agreement with MyRepublic.

The deal is the culmination of 12 months spent by Field Solutions developing its virtual wholesale broadband (WBA) agreement product. The platform is designed to removed costs of using internet service providers (ISP) or managed service provider (MSP) when delivering nbn services.

In effect, ISP companies such as MyRepublic can pay for backhaul, transit and termination on a per subscriber model, while focusing on driving sales growth. 

Terms of the deal

Under the agreement, Field Solutions will provide National nbn point of interconnect (POI) backhaul, network management and orchestration services. This will also allow the company to expand nationally and into other government and enterprise sectors.

In addition, Field Solutions will resell some of MyRepublic's nbn products, and vice-versa, with MyRepublic reselling Field Solution's rural network products.

The contract is valid for a minimum term of 6 years, and is expected to generate around $45 million in revenue. The project is scheduled to begin next month, and will take between 6 to 9 months to complete.

Management commentary

Field Solutions CEO Andrew Roberts welcomed the deal, saying:

FSG's Virtual WBA is highly scalable and capable of managing nbn's consumer and business products for multiple ISPs and MSPs. Comprehensive connectivity nationwide to all 121 nbn's POIs allows us to deliver services in every state, helping to position us for growth opportunities.

MyRepublic's country manager for Australia, Ji Jing, added:

Given the unique Australian telco landscape, partnering with FSG gives us the opportunity to outsource the network management layer, in turn bolstering operational efficiency and sharpening our customer-centric focus.

FSG's orchestration platform across nbn products allows us to expand our offerings. We will also be able to leverage FSG's enterprise and rural networks, delivering business services as well as accelerating our delivery of consumer 1Gbps services. Combining this with our customer experience will enable us to offer a unique product in the market.

The post Here's why the Field Solutions (ASX:FSG) share price is up 20% today appeared first on The Motley Fool Australia.