Day: October 13, 2021

The Silver Lake (ASX:SLR) share price is up 10% in the last week

rising gold share price represented by a green arrow on piles of gold block

The Silver Lake Resources Limited. (ASX: SLR) share price is gaining ground this afternoon and now trades 5% higher on the day at $1.65.

That caps off an impressive week for the gold-copper miner, having climbed a further 10% into the green this past week, ahead of the S&P/ASX 200 index (ASX: XJO)’s return of 1.89% in the same time.

What’s pushing Silver Lake shares higher today?

Whilst there’s been no market-sensitive information for the company today, Silver Lake shares have been on the move since late September, coming off a low of $1.28 near month’s end.

This uptrend has continued until today. Consequently, the company now trades back at its June-July 2021 price levels.

In the absence of any price-sensitive news, we have to look to the underlying commodity markets the company has exposure to in order to understand what might be fuelling this momentum.

Silver Lake’s main revenue stream is the sale of gold and gold-copper concentrate in Australia – the latter of which is used to derive both gold and the base metal copper.

As such, it is considered a price taker that must accept the going rates of the markets it sells into.

In the world of the commodity markets, this is often determined by the unseen forces of supply and demand, plus some fundamental factors – not too dissimilar from the financial markets.

However, specific to gold, this also has to do with the yellow metal’s status as a safe-haven asset in times of economic uncertainty.

Traditionally, in times of market turbulence, downturn, and so on, investors flock to open positions in the precious golden metal– either buying the bullion itself, futures contracts, or equities in gold mining companies – in a part of what is known as a “flight to quality”.

We’ve seen the culmination of these forces begin to take effect over the last month or so, particularly with the tapering of the US Federal Reserve bond purchase program; inflationary pressures induced from the pandemic; and the energy crisis that has begun to plague the UK and Europe.

As such, the price of gold has crept up from a previous low of US$1,726/t.oz on 29 September to now trade at US$1,789/t.oz at last check.

This upward move in gold pricing appears to have inflected positively on the broader ASX gold sector, with the S&P/ASX All Ordinaries Gold Index (XGD) also climbing 3.5% and 8.5% today and in the past week respectively.

That’s well ahead of the benchmark index’s paltry 1.8% return in this time.

In light of these relationships, and strengths in the broad ASX gold sector, the picture starts to form as to what is driving the Silver Lake share price today.

As the price of gold continues to gain strength in the near term, it appears investors who are bullish on gold are concurrently bidding up the gold miner’s share price.

Silver Lake share price snapshot

Despite rallying 20% in the last month and its past week’s gain, the Silver Lake share price has had a difficult year to date.

It has posted a loss of 8% since January 1, extending its bloodbath over the past 12 months to a loss of 31.5%.

These results are well behind the broad index’s return of around 19% in that time.

The post The Silver Lake (ASX:SLR) share price is up 10% in the last week appeared first on The Motley Fool Australia.

Should you invest $1,000 in Silver Lake Resources right now?

Before you consider Silver Lake Resources, 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 Silver Lake Resources 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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Why A2 Milk, HUB24, Netwealth, & Perseus shares are storming higher

share price rise

The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Thursday. In afternoon trade, the benchmark index is up 1.1% to 7,352.8 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 3.5% to $6.81. This infant formula company’s shares were given a boost this week by a positive update from Bubs Australia Ltd (ASX: BUB). That update revealed strong sales growth during the first quarter, which appears to indicate that the worst could be behind the infant formula market.

HUB24 Ltd (ASX: HUB)

The HUB24 share price is up 9% to $31.27. This follows the release of the investment platform provider’s first quarter update this morning. According to the release, HUB24 achieved record net inflows of $3 billion for the three months ended 30 September. As a result, at the end of the period, total FUA reached $63.2 billion.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price has jumped 16% to $16.55. As with HUB24, this strong gain has been driven by the release of this investment platform provider’s first quarter update. According to the release, Netwealth reported record net inflows of $4 billion for the quarter. This took Netwealth’s FUA to $52 billion, which represents an increase of 10.2% for the quarter.

Perseus Mining Limited (ASX: PRU)

The Perseus Mining share price is up almost 10% to $1.70. Investors have been buying the gold miner’s shares following the release of an update on exploration activities at its Yaouré Gold Mine in the Ivory Coast. The release reveals that recent results from infill drilling at Yaouré confirms strong potential for further mineral resources beneath the currently operating CMA open pit.

The post Why A2 Milk, HUB24, Netwealth, & Perseus shares are storming higher appeared first on The Motley Fool Australia.

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Motley Fool contributor 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 and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended A2 Milk and Hub24 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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Redbubble (ASX:RBL) share price sinks 13% following trading update

Side-on view of a fed-up man with his head on his laptop.

The Redbubble Ltd (ASX: RBL) share price is having a horrific afternoon on Thursday following the company’s latest trading update.

At the time of writing, the e-commerce company’s shares are down a sizeable 13.16% to $3.96. In contrast, the All Ordinaries Index (ASX: XAO) is up 1.14% to 7,658 points.

How did Redbubble perform?

In today’s release, Redbubble announced the results for its first quarter of the 2022 financial year.

The company reported a disappointing set of numbers across key metrics, despite improving performance from July to September. On the back of the results, the Redbubble share price tanked as low as $3.82 during the first hour of morning trade.

For the period ending 30 September, total revenue fell by 28% to $126.7 million. This predominantly came from marketplace revenue which also dropped by 28% to $105.9 million. Excluding mask sales, Redbubble achieved a lift from negative 11% in July to negative 2% in September.

Gross profit sank by 34% to $42.4 million, despite efforts to continue delivering initiatives to drive growth. Key strategic themes included:

  • Launch of Afterpay for customers in the US, Canada, UK, and Australia;
  • 13 loyalty experiments completed with 7 showing early positive retention signals;
  • Introduced search and recommendation experiment to improve discoverability of new artists and works; and
  • 18 new products and line extensions brought to market such as dad hats, baseball caps, desk mats, mouse pads, and iPhone 13 cases.

Further dragging down the overall result, earnings before interest, tax, depreciation and, amortisation (EBITDA) plummeted 85% to $3.9 million.

At the end of the quarter, Redbubble declared a cash balance of $109 million.

While the company noted the performance was in line with expectations, shareholders didn’t take the result too kindly, pushing the Redbubble share price into negative territory.

What’s ahead for Redbubble?

Looking towards the remainder of the financial year, Redbubble is forecasting a slow and steady return to pre-COVID 19 levels.

As such, FY22 marketplace revenue is forecasted to be a tad higher than FY21, mainly weighted towards the backend.

Furthermore, targeted investments are expected to affect gross margin, marketing, and operating expense lines. EBITDA margin as a percentage of marketplace revenue is projected to be in the mid-single-digit range for FY22.

Redbubble remains confident the medium to longer-term opportunity will enable it to accelerate its presence online.

About the Redbubble share price

Over the past 12 months, the Redbubble share price has tumbled by about 17%. It is also down around 30% year to date.

Redbubble has a market capitalisation of roughly $1.09 billion and has almost 296 million shares outstanding.

The post Redbubble (ASX:RBL) share price sinks 13% following trading update appeared first on The Motley Fool Australia.

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

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*Returns as of August 16th 2021

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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. 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 is the Xero (ASX:XRO) share price leaping 5% today?

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price

The S&P/ASX 200 Index (ASX: XJO) is enjoying a solid day of gains on the ASX boards so far this Thursday. At the time of writing, the ASX 200 is up a healthy 1.05% to 7,348 points. But that’s not quite as good as the Xero Limited (ASX: XRO) share price today.

Xero shares are currently up a pleasing 5% on the dot at the time of writing to $142.66 a share. That’s obviously a strong outperformance of the ASX 200 today. So why are Xero shares giving investors such strong gains?

Well, it’s not immediately clear what’s pushing Xero shares up so enthusiastically today. There are no news or announcements out of the company as of yet.

Xero shares join ASX tech surge

However, Xero is slotting into a clear trend that we are seeing on the share market this Thursday. Whilst the ASX 200 is in the green, it is ASX tech shares that seem to be doing most of the heavy lifting. Together with the ASX gold sector, tech shares are dominating the ASX 200’s gains today. The S&P/ASX All Technology Index (ASX: XTX) is up a robust 2.46% so far, with major constituents like Afterpay Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) all enjoying strong gains.

Afterpay and WiseTech Global in particular are very hot this Thursday. Afterpay shares are presently up by 4.73% to $120.96, an eerily similar figure to Xero. WiseTech is doing even better. This fellow WAAAXer is enjoying a massive 7.37% boost to $53.61 at the current time.

Despite all of these strong performances, there is not much in the way of major news out of any of them. This may indicate that we are seeing a market-wide appetite for ASX tech shares like Xero today. This sector did take the brunt of the market sell off we saw earlier this week. In fact, as my Fool colleague Kerry covered only back on Tuesday, these companies were all shedding between 3-6% on both Monday and Tuesday.

As tech shares, including the Xero share price often experience, it seems investors have gone from wanting nothing to do with them on Monday, to being desperate to add them by Thursday. Such is life on the ASX, one could say.

At Xero’s current share price, this cloud-based accounting software provider has a market capitalisation of $21.17 billion and a price-to-earnings (P/E) ratio of 1,095.

The post Why is the Xero (ASX:XRO) share price leaping 5% today? appeared first on The Motley Fool Australia.

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

Before you consider Xero, 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 Xero 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 Sebastian Bowen 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, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. 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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