Key points

• The Altium share price gained 33% in 2021
• Altium rejected an offer from US software giant Autodesk in June
• The technology company’s share price recovered from September to December

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The Altium Ltd (ASX: ALU) share price had a stellar 2021 after a slow start to the year.  

The company’s share price soared from $33.99 to $45.19, a 32.95% gain. Altium outperformed the S&P/ASX 200 Index (ASX: XJO) by about 46%.

Let’s take a look at what has weighed on the Altium share price in 2021.

Ups and downs with a strong finish

The Altium share price had a sluggish start to the year before blasting ahead in June. The share price then had its ups and downs in the second half of 2021 but finished on a high.

In the first five months of the year, the Altium share price sank. Between market close on 31 December 2020 and 28 May, the shares in the tech company dived 17%.

In May, the Altium share price dropped 19% in the first two weeks — between market close on 30 April and14 May. This was in line with the S&P ASX All Technology Index (ASX: XTX), which fell 13.41% in the same time period.

However, in June the company’s shares changed direction, lifting 39% between market close on 4 June and 7 June alone.

Driving this massive uplift was news a takeover offer from US software giant Autodesk Inc (NASDAQ: ADSK) had been rejected at the $38.50 per share price. The company believed the proposal undervalued the company.

In August, Altium shares slumped again by 16.69% between 25 August and 30 August. This price shed appeared to be driven by investor reaction to the company’s FY21 earnings report. Altium’s revenue increased by 1%, but its profit before tax declined by 7%.

The Altium share price then gained 44.93% between market close on 9 September and 31 December. Investors reacted well to the company’s annual meeting update in November.

CEO Aram Mirkazemi expressed optimism the company was on track to achieve its FY 2022 guidance of 16-20% revenue growth. Altium was also rated as a “buy” by multiple brokers.

Share price snapshot

The Altium share price has fallen 9% in the past month and nearly 4% in the past week.

Year to date, the company’s shares have fallen roughly 12%. In comparison, the All Technology Index has also fallen 8% since the start of the year.

Altium has a market capitalisation of about $5.2 billion based on its current share price.

The post Why did the Altium (ASX:ALU) share price gain 33% in a year? appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Wednesday
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. 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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If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in January, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

NEXTDC Ltd (ASX: NXT)

The first ASX 200 share to look at is NEXTDC. It is a leading data centre operator with a collection of world class centres across key capital city locations throughout Australia. Together with its potential expansion into Asia and Edge data centres and the structural shift to the cloud, NEXTDC has been tipped by a number of brokers to grow strongly in the coming years.

One of those is Citi. It is positive on the company’s outlook and has a buy rating and $15.40 price target on NEXTDC’s shares. This compares to the latest NEXTDC share price of $11.22.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Credit Suisse is bullish on SEEK. Its analysts currently have an outperform rating and $39.50 price target on its shares. This compares to the most recent SEEK share price of $29.65.

Westpac Banking Corp (ASX: WBC)

A final ASX 200 share that could be in the buy zone is Westpac. Australia’s oldest bank has been named as a buy by the team at Morgans. Its analysts believe the company’s shares offer “considerable value” following a recent decline. And while the broker acknowledges that Westpac’s margins have re-based notably lower, it remains positive due to its “expectation of significant cost out by FY24F.”

Morgans has an add rating and $29.50 price target on the bank’s shares. This compares to the current Westpac share price of $21.45.

The post Analysts name 3 ASX 200 shares that could generate strong returns appeared first on The Motley Fool Australia.

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• 2 buy-rated ASX 200 dividend shares with big yields
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• The NEXTDC (ASX:NXT) share price has tumbled 12% so far this year. Is it a buy?

Motley Fool contributor James Mickleboro owns NEXTDC Limited, SEEK Limited, and Westpac Banking Corporation. 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 recommended SEEK Limited and Westpac Banking Corporation. 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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Key points

• ASX hydrogen shares have just come off a roaring year, but there’re not without risks
• Acorn Capital portfolio manager Risk Squire warns the sector’s participants will likely face growing pains
• He cautions would-be investors to keep an open mind and consider the risks of buying into a changing space

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Hydrogen shares were all the rage in 2021, with some ASX small caps involved in the energy commodity surging as much as 1,300% – recorded by Province Resources Ltd (ASX: PRL) – last year.

But are shares focused on the low-carbon energy source still a good investment?  

That question was recently addressed by Acorn Capital portfolio manager Rick Squire. Here’s what Squire believes those that are bullish on hydrogen in 2022 should look out for.

What risks might face those investing in ASX hydrogen shares?

There’s no denying the future for hydrogen looks bright. As the world looks to decarbonisation, hydrogen – particularly, ‘green’ hydrogen, made using renewable energy – appears to hold answers to many tricky questions.

But, while no investment can be guaranteed, there are certain risks that come from investing in new industries.

In a piece published by Livewire, Squire offered 2 key insights that could be useful for ASX investors looking to get involved before hydrogen shares go ‘mainstream’.

The first, be aware of the market’s need for growth and the time that growth will likely take.

As Squire said, the market for hydrogen is currently small and it’s costly to manufacture the element.

While such issues are being actively addressed by those working in the space, others aren’t as easy to get around. Squire commented:

[H]ydrogen gas is highly flammable, has very low density, requires ultra-low temperatures to keep it liquid and has a propensity to leak and to weaken metal or polyethylene pipes. This makes storage and long-distance transportation less efficient than for liquified natural gas.

Bypassing these fundamental challenges will likely take time. Additionally, applications for hydrogen in key sectors, and even methods to commercially produce the element, could be a while away. Squire wrote:

[Fortescue Metals Group Limited (ASXL:FMG)] modified a dump truck to operate on green hydrogen, but it only ran for 20 minutes. Therefore, the initial application of green hydrogen will probably be very limited and small in scale. It will scale-up, but this will take time.

The second warning Squire gives to investors looking at ASX hydrogen shares points to the history of innovation. He noted:

When you look back at the adoption of major new technologies in the resources and energy sectors… the early movers were rarely the biggest winners.

Squire said his fund hasn’t ruled out investing in ASX hydrogen shares. Rather, it’s “consider[ing] the risks when playing with something very explosive”.

He also advised keen market watchers to keep an open mind when deciding where in the hydrogen space to invest.

While green hydrogen is seemingly all the rage, blue hydrogen ­– created using natural gas or coal-fired power – may well be “an important and commercially viable stepping-stone for the sector,” said Squire.

Paired with carbon capture and storage, he believes blue hydrogen could embody many of the emission-reduction benefits of its green sibling.

The post Are ASX hydrogen shares still a good investment in 2022? 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. 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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Key points

• The Ardea share price hit a new 52-week-high this week

• The miner has made a significant discovery at its Emu Lake site

• The company has found another fertile exploration space at the site

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The Ardea Resources Ltd (ASX: ARL) share price has seen a relatively stable 12 months… until now.

This morning, the miner released a positive report regarding its Western Australia exploration site, driving its share price up by as much as 58%.

It has since settled back down to close 77 cents — an increase of 50%.

So what’s so exceptional about this announcement that made the Ardea share price skyrocket?

Let’s take a look…

Significant drill discovery for Ardea

To bring you up to speed — Ardea is a multi-commodity miner with interests in Western Australia.

Its primary focus is to export its resources to the lithium-ion battery sector — meeting the growing demand for electric vehicles and storage.

Its main interests are the Kalgoorlie Nickel Project, the Goongarrie Hub (both being the largest source of nickel-cobalt in the developed world), and its exploration of nickel sulphide within the Eastern Goldfields — all located in WA.

This morning, Ardea announced had “confirmed a high-grade massive nickel-copper-PGE sulphide discovery” at its Emu Lake site within the Eastern Goldfields.

It has successfully found 2.72m at 5.42% nickel and 0.85% copper from a drill hole at 391.04 metres.

According to the miner, the drill site has shown “increased massive nickel and copper sulphide grade and thickness on an intact, basal dacite contact”.

Other zones discovered

It’s not just the sulphide discovery that has Ardea excited.

The company has also opened up an exploration incentive scheme to test the down plunge extension of today’s winning drill hole — an exercise which has been co-funded with the WA government.

It is set to commence exploration once a rig is made available.

Further, CSIRO is set to study the mineralisation of the nickel sulphite found at Emu Lake, determining the massive sulphide within the site.

In addition, the miner has found a precise new fertile target to pursue — deemed the Western Ultramafic-Dacite contact — in which it controls 20km of strike.

Ardea managing director, Andrew Penkethman said:

With Ardea holding 20km of fertile komatiite strike at Emu Lake, there is significant scope to extend this nickel sulphide discovery and make additional discoveries.

I acknowledge the Ardea team and partners such as CSIRO and Newexco for their input which has assisted in developing the Emu Lake “Thermal Erosion” nickel sulphide model which is a major exploration breakthrough for the company, as it has opened up a new search space.

Ardea Resources share price snapshot

Before today, the Ardea share price saw its largest spikes of the last 12 months in February and June 2021.

The first jump came after the miner announced the sale of its Bedonia East project to Moneghetti Minerals Limited, in order to focus on its Kalgoorlie site. The Ardea share price rose 15% in a few days, before dropping again, with announcing a 60 million tonne at 1.0% nickel resource estimate at Goongarrie.

Prices surged again in June, after the miner announced a large interception of nickel sulphide at Emu Lake.

At these two high points, the Ardea share price was at 60 cents and 59 cents respectively.

The company has a market capitalisation of $70.80 million and over 138 million shares issued.

The post Why the Ardea Resources (ASX:ARL) share price rocketed 50% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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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