Day: October 3, 2021

Why is the Novonix (ASX:NVX) share price plunging 12% today?

The Novonix Ltd (ASX: NVX) share price has come off recent highs and is trading 12.82% down today at $5.71 apiece.

Novonix shares have marched downwards in the past week, after rallying almost 200% from July until the end of September.

Read on for more details.

What’s pushing Novonix shares lower today?

Novonix shares have been trending down since 29 September and have given away 17% in gains during this time.

There hasn’t been any market-sensitive news for the company. However, we can track the performance of the Novonix share price with the spot price of lithium, the battery metal that Novonix has exposure to.

Not much can be said about the price of lithium in 2021 other than it has shot out of the park over the last 12 months.

Prices for lithium contracts in the commodities markets have soared over 320% since this time last year to now trade at over US$25,000/tonne.

A huge up-step occurred in August, when lithium prices surged a further 80% to reach all-time highs of US$27,300 (at the current exchange rate) on 29 September.

Novonix’s share price correspondingly jumped to its all-time high of $6.86 on 29 September, after storming higher from its 2 August price of $2.83.

The correlation between Novonix’s share price and the price of lithium boils down to the fact that Novonix is an ASX resource share that produces a commodity.

That means it is a price-taker, in that it must accept the offered market prices (or forward prices) of the commodities it sells – in this case, lithium.

Lithium pricing has made a reversal of US$1,705/tonne since its highs on 29 September, which isn’t a small number in absolute or relative terms by any means.

Cross-checking this with Novonix’s share price chart, it’s easy to see the corresponding downward move on 29 September as the price of lithium began its descent.

This downward trend has rolled into the start of trade this week and, in light of this, would help explain why Novonix shares have slipped 11% into the red.

Novonix share price snapshot

The Novonix share price has been a tremendous outperformer on the ASX this year, booking gains of over 380% since 1 January.

This extends its gains in the past 12 months to over 475%, several times the return of the S&P/ASX 200 Index (ASX: XJO) rise of 25% in the same time.

The post Why is the Novonix (ASX:NVX) share price plunging 12% today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Novonix right now?

Before you consider Novonix, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Novonix wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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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The Regional Express (ASX:REX) share price is booming 8%. Here’s why

A boy hugs his dog with one arm and holds a big red plane in the air with the other in the beautiful sunshine.

The Regional Express Holdings Ltd (ASX: REX) share price is taking off despite silence from the airline.

However, news of Australia’s borders has been hitting the headlines over the weekend, spurred by an announcement made by Prime Minister Scott Morrison on Friday.

Late last week, Morrison declared Australia’s international borders would reopen in November – one month earlier than expected.

While the news may not affect Rex, which only operates domestic flights, it’s good news for the broader travel sector.

Additionally, the reintroduction of home quarantine may have boosted the market’s confidence in the reopening of domestic borders, many of which remain firmly shut due to ongoing outbreaks in parts of Australia.

No matter the reason, Rex’s stock is soaring today. At the time of writing, The Rex share price is $1.73, 8.81% higher than its previous close.

That’s significantly better than the broader market’s performance today. Right now, the S&P/ASX 200 Index (ASX: XJO) is up 1%, as is the All Ordinaries Index (ASX: XAO).

Let’s take a closer look at the news that might be boosting the market’s sentiment in the travel sector.

Rex share price soars on Monday

The Rex share price is soaring today despite no news from the airline.

In fact, it’s a good day for the ASX travel sector broadly. Perhaps the market is responding to the recent news from Prime Minister Scott Morrison.

On Friday, Morrison announced Australia will move to Phase C of the government’s roadmap out of COVID-19 within weeks.

Phase C will see vaccinated Australians free to travel in and out of the country. Morrison anticipates returning vaccinated travellers and those unable to be vaccinated will be able to quarantine at home for 7 days on their arrival following a trial currently being conducted in New South Wales and South Australia.

Additionally, all travel caps will be abolished and the federal government will facilitate flights to states undergoing home quarantine trials.

Unsurprisingly, the Rex share price isn’t the only ASX travel share to be well and truly in the green today.

Right now, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up 9.06%. While Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) shares are gaining 2.1% and 4.64%, respectively.

The post The Regional Express (ASX:REX) share price is booming 8%. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Regional Express right now?

Before you consider Regional Express, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Regional Express wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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Archer Materials (ASX:AXE) share price dives on capital raising update

A boy stands in still ankle-deep water brandishing a bow and arrow.

The Archer Materials Ltd (ASX: AXE) share price has come out of a trading halt today to backtrack mid-afternoon. This comes after the materials technology company provided an update on its recent equity raise.

At the time of writing, Archer shares are swapping hands for $1.60, down a sizeable 7.78%

Archer completes placement

One catalyst for today’s fall in the Archer share price could be investor concerns over an impending share dilution.

According to its release, Archer announced it has received firm commitments for its institutional placement to raise $15 million before costs. The company highlighted that it has strong support from both domestic and offshore institutional investors.

The offer will see approximately 10.3 million new ordinary shares issued at a price of $1.45 apiece. This represents a 16.4% discount to the last closing price of $1.735 on 30 September (before going into a trading halt).

Archer Materials will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows the company to issue up to an additional 15% of its total shares without shareholder approval.

The company will primarily use the proceeds to develop its CQ quantum computing chip and lab-on-a-chip biochip technologies. In particular, Archer will allocate the funds to:

  • Progressing its world-first technology development, including its CQ chip and Biochip
  • Utilising technology development infrastructure and facilities, R&D, people, and IP, to support pre-market development of the company’s technologies
  • Protecting intellectual property assets such as patents and international patent applications
  • Establishing and strengthening new and existing commercial partnerships in Australia and abroad
  • General working capital

Settlement of the new shares is expected on Thursday 7 October, with allotment scheduled for the next day.

In addition, Archer will launch a non-underwritten share purchase plan (SPP) of $5 million to be offered to eligible investors. The terms will be the same as the institutional placement.

The SPP closes on 28 October, with allotment of the new shares on 4 November.

About the Archer share price

Despite today’s falls, Archer shares have gained around 233% in the past 12 months. However, the company’s share price is around 50% off its all-time high of $3.08 from mid-August.

Based on valuation grounds, Archer presides a market capitalisation of $395.07 million, with almost 227 million shares outstanding.

The post Archer Materials (ASX:AXE) share price dives on capital raising update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Archer Materials right now?

Before you consider Archer Materials, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Archer Materials wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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. 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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Why ASX 200 travel shares are having a bumper day

A woman holds her arms out as a plane flies overhead

The S&P/ASX 200 Index (ASX: XJO) is up more than 1% right now, but the ASX 200 travel shares are having an even stronger start to the week.

Looking at the gains, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up more than 8%, the Corporate Travel Management Ltd (ASX: CTD) share price is up over 3%, the Webjet Limited (ASX: WEB) share price went up more than 5% and the Qantas Airways Limited (ASX: QAN) share price is up over 2%.

An even stronger reaction has been for the Helloworld Travel Ltd (ASX: HLO) share price, which is up around 12%.

What’s happening with the ASX 200 travel share?

There is an ongoing global recovery for the worldwide travel industry, with investors bidding up prices.

Internationally, global travel shares saw a large rise of share prices on Friday. For example, the United Airlines Holdings Inc (NASDAQ: UAL), share price increased around 8%, the Booking Holdings Inc (NASDAQ: BKNG), the Hilton Hotels Corporation (NYSE: HLT) share price rose 4.6% and the Marriott International Inc (NASDAQ: MAR) share price increased 5.3%.

Prior to some hopeful healthcare news, which I’ll get to later, the ASX 200 travel industry was already seeing a recovery, which was getting stronger as the months go on.

For example, Webjet said at the end of August that vaccine rollouts were underway and directly correlated to travel recovery. Management said the USA and UK vaccine rollout programs are well advanced, with the North American and European markets starting to open up. It also said that vaccine rollouts were expected to help in the 2022 calendar year, particularly in the US and UK, although the timing of removal of border restrictions is still uncertain.

ASX 200 travel share Corporate Travel said that it’s seeing momentum building in the northern hemisphere, with July delivering a record revenue result during this COVID era. The company also noted that domestic travel was quickly recovering in the UK, and the trend is expected to accelerate across Europe after the summer holiday period.

The “lucrative” trans-Atlantic and intra-European segments are opening or were expected to re-open in the first half of FY22.

Healthcare news

The ASX 200 travel share industry investors may also be taking into account an announcement regarding a potential COVID-19 treatment.

According to global media, such as reporting by the BBC, a new drug for treating COVID cuts the risk of hospitalisation or death by around half. It was reported that the tablet, called molnupiravir, was given to patients twice a day that had recently been diagnosed with the disease. This could be the first authorised oral antiviral medication for COVID-19.

The BBC reported that:

US drug-maker Merck said its results were so positive that outside monitors had asked to stop the trial early.

It said it would apply for emergency use authorisation for the drug in the US in the next two weeks.

Merck’s vice-president of infectious disease discovery, told the BBC: “An antiviral treatment for people who are not vaccinated, or who are less responsive to immunity from vaccines, is a very important tool in helping to end this pandemic.”

Time will tell how the ASX 200 travel share responds to this over the longer-term.

The post Why ASX 200 travel shares are having a bumper day appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Tristan Harrison 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 Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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