Day: January 6, 2021

Here’s why the Orocobre (ASX:ORE) share price is on the move today

Cut outs of cogs and machinery with chemical symbol for lithium

It has been yet another very strong day for Australia’s leading lithium miners.

Investors have continued to pile into the industry on Thursday and have driven their shares notably higher.

For example, at the time of writing, the Galaxy Resources Limited (ASX: GXY) share price is up 8% and the Pilbara Minerals Ltd (ASX: PLS) share price is up 7.5%. Both have hit 52-week highs at one stage today.

This has been driven by optimism over lithium prices thanks to growing electric vehicle adoption and President-elect Joe Biden’s favourable policies on clean energy and renewable technology.

What about the Orocobre share price?

The Orocobre Limited (ASX: ORE) share price also climbed to a 52-week high on Thursday before fading as the day went on.

The softening of its shares today appears to have been caused by the release of a change of director’s interest notice this afternoon.

That notice revealed that its non-executive director, Richard Seville, has taken advantage of the recent rise in the Orocobre share price to offload some shares.

According to the notice, Mr Seville sold 208,656 shares through an on-market trade on 31 December. The director received a total consideration of $939,080.11 for the parcel of shares, which equates to an average of approximately $4.50 per share.

However, it is worth noting that the director still has a considerable holding, which means his interests are still firmly aligned with shareholders.

Following this sale, Mr Seville owned a total of 5,333,953 Orocobre shares. Which, based on the current Orocobre share price of $5.04, have a market value of just under $27 million today.

Where next for the Orocobre share price?

One broker that believes the Orocobre share price has now peaked is Ord Minnett. Last month its analysts put a hold rating and $3.45 price target on its shares.

While it believes lithium prices have now bottomed, it isn’t as positive as the market on near term demand. Especially given the significant latent short term supply.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the Boart Longyear (ASX:BLY) share price is rocketing 50% today

rising asx bank share prices represented by bankers partying in board room

The Boart Longyear Ltd (ASX: BLY) share price has been the top percentage riser on the ASX so far today. This comes after the company announced it has engaged the services of a world-renowned advisor to provide it with strategic recommendations.

At the time of writing, the Boart Longyear share price is racing 52.94% higher to $1.04. This is just below its intraday high of $1.05 that was achieved mid-morning.

What did the company announce?

The Boart Longyear share price is gaining significant interest today with investors scrambling to get in on the action.

Prior to the market’s open this morning, Boart Longyear advised it has engaged multinational investment bank and financial services firm Rothschild & Co to assist with the company’s strategic direction.

The decision to seek advisory support from Rothschild comes as Boart Longyear is looking to tackle its debt obligations. Net debt recorded at the end of the September period stood at $823 million, increasing $67 million from financing costs.

The company’s current debt facilities are expected to mature during the second-half of 2022. Management said that possible options to service the growing debt profile could include refinance or recapitalisation.

CEO commentary

Boart Longyear CEO Mr Jeff Olsen commented on the company’s position, saying:

It is important for the company to start exploring all available options to address its future debt maturities and set us up to take advantage of future growth opportunities. There are clear signs that the mining and metals market is seeing increased activity as demonstrated through recent investments in our sector with major mining houses signalling increased exploration spend.

We are also seeing intermediate and junior miners accessing capital through significant equity raisings allowing them to get out and explore for tomorrow’s resources.

Boart Longyear share price snapshot

Despite today’s meteoric rise, over the past 12 months, the Boart Longyear share price has dropped nearly 40%.

Reaching a 52-week high of $1.75 last January, Boart Longyear shares took a dive following the onset of the pandemic. Furthermore, throughout the second half of 2020, and prior to today’s rise, the company’s shares had barely managed any significant recovery. It’s also worth noting that the Boart Longyear share price hit an all-time low of 29.5 cents just last month.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers name 3 ASX shares to buy right now

broker Buy Shares

Most brokers are still taking a well-earned break over the holiday period, so broker notes are few and far between right now.

In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.

Three buy ratings you might want to pay attention to are listed below:

Appen Ltd (ASX: APX)

According to a note out of Wilsons, its analysts have retained their overweight rating but cut the price target on this artificial intelligence services company’s shares to $32.11. The broker made the move after Appen downgraded its earnings guidance last month due to COVID-19 impacting demand from some of its larger customers. Wilsons believes the impact will be short term and expects Appen to bounce back once the pandemic passes. The Appen share price is trading at $23.93 on Thursday.

Healius Ltd (ASX: HLS)

Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this healthcare company’s shares to $4.40. According to the note, the broker has been pleased with its performance in FY 2021 and believes Healius is one of only a handful of value options on the Australian share market. So much so, it feels the company should be considered a core holding in 2021. Goldman expects consensus upgrades and multiple re-ratings to drive further stock performance through the mid-term. The Healius share price is changing hands for $3.79 today.

Kogan.com Ltd (ASX: KGN)

A note out of Canaccord Genuity reveals that its analysts have retained their buy rating and lifted the price target on this ecommerce company’s shares to $25.00. It was pleased with the company’s acquisition of New Zealand based online retailer Mighty Ape for $122 million. Canaccord Genuity believes there are a number of strategic rationales for the acquisition. This includes the potential for sizeable revenue and cost synergies. The broker has upgraded its earnings forecasts to reflect this. The Kogan share price is fetching $19.25 this afternoon.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the Afterpay (ASX:APT) share price is tumbling today

A man recoiling from his empty wallet in horror, indicating a major share price fall

The Afterpay Ltd (ASX: APT) share price has struggled in the new year, falling almost 10% in just the last two ASX market sessions. 

Tech-heavy Nasdaq selling off 

The Nasdaq Composite (INDEXNASDAQ: .IXIC) has fallen 0.61% despite the S&P 500 Index (INDEXSP: .INX) and Dow Jones Industrial Average (INDEXDJX: .DJI) pushing a respective 0.57% and 1.44% higher. 

The broad weakness in the tech sector is likely a result of changes in the balance of power in US politics. With the Democrats taking control of the Senate raising the threat of increased regulation. 

For two years, a Republican-controlled Senate bottled up a vast majority of legislation coming out of the Democratic-controlled House of Representatives. The control of the Senate will now spell good news for incoming President Joe Biden’s agenda on issues including healthcare, the environment, government reform and the economy. 

Experts see this victory as a potential broad rotation away from tech shares into more cyclical sectors such as banking, consumer staples and materials, similar to what the market experienced during November last year. 

S&P/ASX Information Technology (ASX: XIJ) follows suit

The S&P/ASX information Technology index has followed suit with sharp losses today, down 3.15% at the time of writing.

Some of the best performing ASX 200 tech shares from last year, including Xero Limited (ASX: XRO), Zip Co Ltd (ASX: Z1P) and Afterpay have struggled the most today. But taking a look at the bigger picture, the Afterpay share price ran more than 300% in 2020. 

The broader market is following the US, with the ASX 200 gaining 1.65%, at the time of writing, and more cyclical sectors such as financials, energy and materials running much higher. 

The Afterpay growth story in 2021 

Despite the Afterpay share price tanking this week, the company has a number of promising plans for the year ahead. This includes the pending approval for the acquisition of Pagantis in Europe and development of a strategy to tackle the South Asia market. 

Big brokers have also been bullish for the Afterpay share price, with Credit Suisse initiating a $124.00 price target in early December of last year. The broker anticipates a strong growth outlook to underpin strong financial performance and investor returns. 

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Returns as of 6th October 2020

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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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