This August is no ordinary month. Markets are hovering at all time high with further impetus given by signals from Federal Reserve that a rate cut could be close. Strong earnings from tech coming as the final stimulant.
ASX Recommendations become scarce as under such conditions, stocks with good fundamentals and good potential upside are hard to come by. However, two of the Best ASX Stocks to buy now, that have steam left and have the potential to grow further are
BHP Group Limited (ASX: BHP)
BHP's strong performance across its diversified portfolio of commodities in Q4 FY24 showed notable improvements across copper, iron ore, metallurgical coal, energy coal, and nickel production compared to the previous quarter, driven by operational efficiencies and favourable market conditions.
One of the Best Companies to Invest in ASX, BHP, achieved record iron ore production of 260 million tonnes, marking a 1% increase from the previous year. Copper production also saw significant growth, rising 9% year-on-year. Both commodities benefited from the higher average realized prices—iron ore at US$101.04/wmt (up 9%) and copper at US$3.98/lb (up 9%) compared to FY23.
BHP's strategic initiatives, including the divestment of non-core assets such as Blackwater and Daunia mines, signify a focused approach towards optimizing its portfolio for future growth. By streamlining operations and reallocating resources to core assets, BHP aims to enhance operational efficiency and profitability.
Liontown Resources Limited (ASX: LTR)
Liontown Resources Limited (ASX: LTR) made an announcement on 15 July 2024, stating that negotiations with BSIT had been successfully concluded, resulting in the execution of a comprehensive offtake agreement for the supply of spodumene concentrate from the Kathleen Valley Lithium Project in Western Australia.
On 2 July 2024, the company had disclosed a strategic partnership with LG Energy Solutions aimed at strengthening their collaboration in the global lithium sector. This partnership included the signing of a convertible note subscription agreement, an extended offtake agreement for high-quality lithium spodumene supply from the Kathleen Valley Project, and a downstream collaboration agreement to assess the feasibility of establishing a lithium refinery.
As part of this partnership, the company secured a US$250 million funding through Five-Year convertible notes at a conversion price of $1.80 per share, significantly enhancing its cash reserves to $501 million.
The company has seen a significant increase in assets, particularly in 2022, with its asset base growing from $15 million in 2021 to $487 million. This growth was mainly driven by acquiring and developing a more diverse portfolio of mining assets.
Among the Best Shares to Buy Right Now ASX, Liontown is poised to undergo a substantial period of transformation in the near future as it reaches a crucial milestone in its operational history by starting production at its flagship project. The company's secure offtake profile shields it from the volatility of the lithium industry, establishing a stable and robust growth foundation for its initial operational years. Additionally, the expansion plans at the project indicate the potential for significant long-term scalability through production growth.
Kogan.com Limited (ASX: KGN)
Kogan.com Limited continues its strong performance into the third quarter of FY24, demonstrating resilience and growth across several key metrics.
The company's subscription service, Kogan FIRST, saw substantial growth with over 472,000 subscribers by the end of March 2024, marking a robust 16% increase year-over-year. In terms of customer base, Kogan.com boasted a total of 2,660,000 active customers, comprising 1,950,000 for its main platform and 710,000 for Mighty Ape, illustrating a solid presence in the online retail market. Platform-based sales remained a significant contributor, accounting for 61.6% of gross sales during the quarter. This solidifies Kogan.com's position as a substantial player in the online retail sector.
Financially, Kogan.com maintained a strong position with cash reserves of $34.1 million as of 31 March 2024. Importantly, the company operated without any external debt, highlighting its robust financial health despite the decrease from the previous year's net cash position. Inventory management also showed efficiency, with total inventories amounting to $71.1 million, marking a 9.2% reduction year-over-year.
Kogan.com Ltd has strategically expanded since 2020, bolstering its market presence through acquisitions like Mighty Ape, Matt Blatt, and Brosa, while emphasizing recurring revenue from its Kogan Marketplace and loyalty program, Kogan FIRST. These initiatives have strengthened financial stability and diversified revenue streams. With over 2.66 million active customers and recent innovations such as Mighty Mobile and an Advertising Platform, Kogan.com is poised for sustained growth in online retail.
Source: Company's Report
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