Day: August 5, 2021

Why the Kogan (ASX:KGN) share price is soaring 10% this week

Cheering woman shopping online with credit card

Shares in Kogan.com Ltd (ASX: KGN) are soaring this week despite no news being released by the online retailer.

The Kogan share price is currently trading at $11.41 apiece. That’s almost 10% higher than it was at last Friday’s close.

Historically, Kogan has been a COVID-19 winner. With lockdowns currently ongoing in Australia’s 3 most populated states, could the market be expecting Kogan’s profits to spike once more?

Let’s take a closer look at what might be driving Kogan on the ASX.

COVID-19 winner?

The Kogan share price is rallying this week, and while it’s not gaining with the same intensity it did in March 2020, this latest lift may be happening for the same reasons.

Kogan shares started 2020 trading at $7.47. They slumped in the March COVID-19 market meltdown but, by the end of the 2020 financial year, had bounced up to $13.91. The upward trajectory didn’t stop there either, with the Kogan share price hitting a 52-week high of $25.57 in October.

Back then, Kogan’s gains were spurred by a series of record sales. There’s no news of the same right now.

However, Victoria last night joined Sydney and Southeast Queensland in locking down against the Delta variant.

Past lockdowns have spurred a switch in consumer retail habits from traditional brick-and-mortar to online shopping. As Kogan is the self-proclaimed largest online retailer in the country, investors might be rallying in case these lockdowns extend beyond their estimated endpoints.

Additionally, the company recently reported that it had solved inventory issues plaguing the Kogan share price.

That might also help to remove the brake on Kogan’s shares.

Kogan share price snapshot

Even with this week’s uptick, the Kogan share price is well below its golden days.

It has slipped 41% since the start of 2021 and is 39% lower than it was this time last year.

The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.

The post Why the Kogan (ASX:KGN) share price is soaring 10% this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and 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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Here are the top movers in the ASX 300 today

Five stacked building blocks with green arrows, indicating rising inflation or share prices

The S&P/ASX 300 Index (ASX: XKO) is flat today, despite some strong movers amongst the more popular companies.

At the time of writing, the ASX 300 is up 0.03% to 7,507 points.

It’s worth noting that the index hit a record high of 7,519 points yesterday.

Let’s take a look at which top ASX 300 shares are picking up steam during mid-afternoon trade.

Vulcan Energy Resources Ltd (ASX: VUL)

The first major mover in the ASX 300 is none other than Vulcan Energy. So far, this lithium company is continuing its positive run, surging 15.77% higher to $13.29. That means Vulcan Energy shares are now up 30% over the past week.

The company announced a 5-year partnership with major automobile manufacturer, Renault on Monday. In addition, Vulcan Energy also stated that its Zero Carbon Lithium project achieved a negative carbon footprint.

Z Energy Ltd (ASX: ZEL)

Another ASX 300 mover today is New Zealand-based fuel retailer, Z Energy, climbing 6% to $2.92. This comes despite the company not releasing any news today.

Z Energy’s last price sensitive announcement came back in late May regarding an agreement to an in-principal deal with The New Zealand Refining Company on import terminal conversion.

It appears investors are buoyant on the ASX 300 company’s share price, sending it 13% higher over the month.

Afterpay Ltd (ASX: APT)

Next up, the ASX 300 darling, Afterpay. The buy now, pay later (BNPL) giant is up 4.97% to $131.48.

Afterpay shares have been on the move this week following a takeover offer from Square Inc (NYSE: SQ) for $39 billion. As the United States payment company surged overnight, so too has Afterpay today.

Since 2 August, Afterpay shares have risen 14%, reflecting upbeat investor sentiment that the deal will go through. The Afterpay board unanimously voted in favour of the transaction.

The post Here are the top movers in the ASX 300 today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended 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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Why ASX 200 lithium shares are charging higher on Friday

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The S&P/ASX 200 (ASX: XJO) lithium shares are top performers on Friday following a solid session for the lithium sector overnight.

The largest ASX 200 lithium miners Galaxy Resources Limited (ASX: GXY)Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are retesting all-time highs again, up 2.31%, 2.48% and 2.41% respectively.

Why ASX 200 lithium shares running higher

The broader lithium and renewables sector is a hot space right now with no shortage of positive news.

On Thursday, President Joe Biden signed an executive order with hopes of making at least half of all new vehicles sold in 2023 electric, according to Reuters.

“The 50% target, which is not legally binding, won the support of U.S. and foreign automakers, which said that achieving it would require billions of dollars in government funding.”

Reuters quoted statements from major US automakers, with General Motors commenting it “aspires to end sales of new U.S gasoline-powered light duty vehicles by 2035” and Ford saying it plans “at least 40% of our global vehicle volume being all-electric by 2030.”

Many ASX 200 lithium shares have been calling out global electric vehicle adoption as a catalyst to drive a lithium demand surge.

Galaxy’s capital raising presentation back in November cited that “global EV sales [are] forecast to grow as high as 30% CAGR in the next decade” and also anticipated “robust demand for lithium in the mid-long term.

More recently, Pilbara Minerals set up an auction for 10,000 dry metric tonnes (dmt) of lithium spodumene concentrate on its Battery Material Exchange platform.

The company said that it received 62 online bids ranging from US$700/dmt to US$1,250/dmt free on board (FOB) during the three-hour auction window.

Pilbara Minerals accepted the highest bid of US$1,250/dmt.

By comparison, Pilbara Minerals said that spodumene prices were fetching between US$700 to US$975/dmt back in June this year.

Encouragingly, Tesla Inc (NASDAQ: TSLA) reported more than 200,000 vehicle sales during its second quarter results last week. The figure represents a 121% year-on-year increase, helping the company surpass US$1 billion in net income for the first time on record.

The post Why ASX 200 lithium shares are charging higher on Friday appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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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Here’s why the Woodside (ASX:WPL) share price is down 11% in the last 2 months

barrel of oil sitting on top of falling red arrow representing asx energy shares downgrade

The Woodside Petroleum Limited (ASX: WPL) share price has faced headwinds over the year to date. Over the last 2 months, Woodside shares have slipped around 10% into the red.

Whereas the S&P/ASX 200 Index (ASX: XJO) for instance, has spent the entire year in the green.

Here we uncover some of the pressures Woodside shares have faced over the last few months.

Conservation report findings

Back in early June, the Conservation Council of Western Australia (CCWA) released its report on Woodside’s Scarborough project.

In it, the CCWA said the project will have significant adverse impacts on WA’s environment and World Heritage sites.

For instance, it projects that Scarborough will produce as much greenhouse gas as 15 coal fired power stations, and will expand WA’s emissions by approximately 5%.

As a result, the CWWA has commenced court proceedings through the WA Supreme Court, in order to overturn the approvals granted at Scarborough.

The Woodside Petroleum share price has slipped around 10% into the red following this announcement.

Corrections and volatility in the price of oil

Woodside’s share price seemed to make a small recovery on the charts in the short time after the CWWA report was released.

However, in mid-June, the price of US Brent oil made a price correction back down from its soaring 2-year highs.

Recent strength in the US dollar has led to a cooling effect in the oil markets, as US monetary policy continues to remain in the spotlight.

The entire ASX-listed oil basket slipped into the red on the back of oil’s price correction. Given Woodside’s exposure to three offshore oil assets in Australia, it was a major under-performer during the back end of June.

Following the volatility of oil spot prices, Woodside shares sunk 8.5% into the red, reaching a low of $22.21.

In contrast, when the price of oil made its run back up to 3-year highs towards the beginning of July, the Woodside share price had climbed back up a further 8.5%, signifying the correlation between the two securities.

Exhibit 1. Woodside share price: Observe the Volatility From 4 June 2021 – Today

Source: Google Finance

As the saying goes, history doesn’t repeat, but it does rhyme. Alas, as we walked through the final stages of the second quarter, the price of black gold tumbled again, and Woodside shares tanked once more.

From their last peak in early July, Woodside shares have since fallen a further 9.5% to today’s trading.

Production updates didn’t go down well

Woodside also reported a 4% sequential decline from the quarter prior in its activities report back in July.

The decrease was put down to scheduled maintenance and the impact of adverse weather events.

On the contrary, Woodside realised a 15% quarter on quarter rise in its sales revenue to $1.285 billion. This boiled down to a 9% increase in delivered sales volume.

Despite hot oil markets and above-market realised oil prices, this wasn’t enough to sway investor sentiment. Woodside shares have edged around 6% lower since the announcement.

Foolish takeaway

The Woodside share price has been on the back end of several headwinds over the past few months.

These headwinds have undoubtedly carried through until today, where the company’s shares have lagged the broad index’s return.

Despite the volatility this year, Woodside shares are still up 6.5% over the past year.

The post Here’s why the Woodside (ASX:WPL) share price is down 11% in the last 2 months appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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