Day: 16 May 2022

The Droneshield Ltd (ASX: DRO) share price is rocketing higher today.

Shares in the ASX tech company, which provides drone protection devices, are currently up 9.8% trading at 22.5 cents, having earlier posted gains of more than 14%.

Ukrainian demand buoys Droneshield share price

The Droneshield share price is leaping higher today amid news of strong demand for the company’s drone defence systems from Ukraine.

The company already supplies its anti-drone technologies to militaries, police, and private enterprises across the world.

But following Russia’s invasion of Ukraine, Droneshield’s CEO Oleg Vornik said (quoted by The Australian Financial Review), “We literally received a few dozen inquiries from various Ukrainian government agencies over the last month that we need Droneshield equipment.”

The company has already sent a shipment of hand-held drone detection devices and its Drone Gun to the embattled nation. The Drone Gun disables enemy drones by jamming their electronic frequencies.

A European nation, as yet anonymous, paid for the initial shipment of anti-drone devices that were delivered into Ukraine.

Vornik hopes the Aussie government will step up to help fund the next shipment.

“We are hopeful of getting the Australian government or maybe somebody else to get our gear funded so we can get it over there,” he said.

Take down the drones

Vornik explained that the Russian military does not yet control the skies above Ukraine. Instead, it is depending on drones with plenty of non-Russian parts for its battlefield planning.

“They would essentially scout in an area and see Ukrainian positions and then send artillery shells in that direction. Our equipment would take out those scouting drones,” he said.

Vornik continued (quoted by the AFR):

The fascinating thing with the Russian drones which may sound surprising is they use a lot of non-Russian parts. They use a lot of American parts, European parts, Chinese parts.

I was worried when we did the first sale because I wasn’t sure how effective our gear was going to be because we’ve never tested it against Russian technology before. But it seems because they are using a lot of foreign parts, our equipment is effective against it.

The feedback from the war front has been positive in terms of the impact against Russian drones.

Droneshield share price snapshot

The Droneshield share price has been a strong performer this year, up 25% since the opening bell on 4 January.

In comparison, the All Ordinaries Index (ASX: XAO) is down 8% year-to-date.

The post Droneshield share price leaps 10% amid strong Ukrainian demand appeared first on The Motley Fool Australia.

More reading

• DroneShield share price turbulent as revenue soars 89%

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Aussie markets have curled down on Monday after an initial spike. The All Ordinaries Index (ASX: XAO) is now trading just 20 basis points higher at 7,322.

Despite the mixed reaction from China’s latest economic data, these three shares have cruised past their former highs to reach new multi-year peaks. Let’s take a look.

Yancoal Australia Ltd (ASX: YAL)

Shares in Yancoal are trading in the green today and now rest at $5.57. Early in the session, the Yancoal share price nudged past $5.82, its highest mark since March 2018.

Coal shares have had a stellar run in 2022 thanks to the price of the black rock surging to multi-year highs.

In the last 12 months, the price of coal has climbed 297% and now trades at US$393 per tonne after bouncing from US$258 per tonne in March.

“Along with increasing demand for power generation with a resumption in economic activity after the coronavirus-induced slump,” Trading Economics says, “soaring natural gas prices in Europe and Asia in late 2021 boosted coal consumption.”

As such, coal players like Yancoal have rallied equally as hard and the company itself has climbed 114% this year to date.

Viva Energy Group Ltd (ASX: VEA)

Shares of Viva Energy are also strong today and have cruised past their highest level since August of 2019 at $2.84.

Investors recently began bidding up Viva Energy shares as the company saw strengths in its “refining and financial performance for the four months ended 30 April,” The Motley Fool reports.

It recorded a 65% year-on-year jump in its earnings before interest, tax, depreciation and amortisation (EBITDA) to $308 million.

It put the massive jump in pre-tax earnings down to the spread between its cost of crude oil and the market prices for refined products.

In the last 12 months, the Viva Energy share price has gained 42% and is up 20% this year to date.

Amcor (ASX: AMC)

Shares of global packaging company Amcor have glided upward in Monday’s session and now trade less than 1% higher at $18.44.

Despite no market-sensitive updates from the company, the Amcor share price has drawn away from the S&P/ASX 200 Materials Index (ASX: XMJ), which is down 79 basis points on Monday.

Nevertheless, momentum has been building for the Amcor share price these past few weeks, with the stock already taking out its previous 52-week high in last week’s trade.

In fact, since we rolled over into May it has climbed 10%, whilst the Materials index has extended heavy losses incurred the month before.

As such, during the past 12 months, the Amcor share price has neared a 16% gain and held onto an 11.6% gain this year to date.

The post 3 ASX All Ordinaries shares hitting multi-year highs on Monday appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares clocking multi-year highs on Thursday
• Why are these ASX coal shares having a top run today?
• Guess which 2 ASX All Ordinaries shares smashed 52-week highs amid today’s carnage
• Macquarie picks ASX 200 shares to buy in this volatile environment
• These were the best performers on the ASX 200 last week

Motley Fool contributor Zach Bristow 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 positions in and has recommended Amcor Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Zip Co Ltd (ASX: ZIP) share price followed the broader market up this morning before plummeting upon its fumble this afternoon.

The buy now, pay later giant’s stock surged 5.55% earlier today, reaching an intraday high of $1.05. Sadly, it soon tumbled to its intraday low of 95 cents – a 4% slump.

At the time of writing, the Zip share price has partially recovered to trade at 96 cents, 2.83% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.26% despite having gained as much as 1.1% earlier in the day.

Let’s take a closer look at what’s going on with the BNPL stock and the broader market on Monday.

What’s going on with the Zip share price?

The Zip share price rocked then rolled on Monday amid a broader market spin.

The ASX 200 launched upwards today before disappointing data from China stunted its rise.

COVID-19 lockdowns hit the nation in the pocket over April, as reflected in China’s National Bureau of Statistics data.

China’s unemployment rate rose to 6.1% while the cost of necessities rose rapidly last month. The nation’s total retail sales also fell 11.1%.

Turning to the tech sector, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently recording a 1.7% gain. Though, earlier this morning it was trading up to 4.25% higher.

While Zip isn’t technically a tech share, it can arguably be classed as one and generally performs in line with the tech sector.

Today’s best performing ASX 200 tech shares are Life360 Inc (ASX: 360), Block Inc (ASX: SQ2), and Xero Limited (ASX: XRO). They are currently up 4.84%, 3.73%, and 3.52% respectively.

Meanwhile, the sector’s worst performers are Tyro Payments Ltd (ASX: TYR), Codan Limited (ASX: CDA), and WiseTech Global Ltd (ASX: WTC), having slipped 4%, 2.47%, and 1% respectively.  

The Zip share price has tumbled 78% so far this year. It is also 86% lower than it was this time last year.

The post <strong>Why did the Zip share price just pop then drop?</strong> appeared first on The Motley Fool Australia.

More reading

• Blast off! Why is the Zip share price zooming on Friday?
• Zip share price tumbles 5% to another multi-year low
• ASX 200 tech shares are staging a remarkable recovery today
• It’s happened: Zip share price tumbles below $1 for first time since 2018
• These are the 10 most shorted ASX shares

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 positions in and has recommended Block, Inc., Life360, Inc., Tyro Payments, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up 0.3% to 7,097.2 points.

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

Brambles Limited (ASX: BXB)

The Brambles share price is up 11% to $11.59. This follows news that the logistics solutions company is having takeover talks with private equity giant CVC Partners. However, the company has stressed that it hasn’t received a proposal yet. Brambles also warned that there is no certainty that the discussions will lead to a binding proposal being received.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 3% to $1.18. Investors have been buying this lithium developer’s shares following a strong night for lithium shares on Wall Street on Friday. For example, lithium giants Albemarle, Sociedad Quimica y Minera de Chile (SQM), and Livent Corp rose 7%, 9.5%, and 12.5%, respectively, during Friday’s session.

Infomedia Limited (ASX: IFM)

The Infomedia share price has jumped 28% to $1.64. This has been driven by the news that the automotive industry software company has received a takeover offer. According to the release, the TA Consortium has offered $1.70 cash per share. This represents a 32.8% premium to the Infomedia share price prior to its trading halt.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 6% to $2.95. This morning the logistics company announced the completion of its off-market share buyback. Qube has bought back $400 million of shares at $2.59 per share. This represents 154 million shares, which equates to 8% of its shares outstanding. The buyback price comprises a capital component of $1.61 per share and a dividend component of 98 cents per share.

The post Why Brambles, Core Lithium, Infomedia, and Qube shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Why are ASX lithium shares off to such a flying start this week?
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance
• Here’s why the Brambles share price is rocketing 11% on Monday
• Why is the Core Lithium share price charging 7% higher?
• Infomedia share price rockets 30% following takeover approach

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. has positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ramsay Health Care Ltd (ASX: RHC) share price is climbing higher into the green today.

This comes as the private hospital operator provider made an announcement to investors on the ASX.

At the time of writing, Ramsay shares are swapping hands at $78.31, up 1.49%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is giving back all its gains achieved during early morning trade. The benchmark ASX 200 is currently trading at 7,086.9 points, up just 0.17%.

What did Ramsay announce?

In its statement, Ramsay confirmed the details of funding guarantee arrangements for the period between 1 January and 30 June 2022.

Announced by the French Government on 14 May, the company said the structure of the decree was similar to prior periods. However, mental health has been excluded in the latest scheme.

While the details regarding the arrangement have not been disclosed, the previous corresponding period’s decree provided a guarantee of revenue equal to the average monthly revenue earned from the government.

Pulled from the 2020 calendar year, the revenue was indexed and multiplied by the six months covered by the decree.

About the Ramsay share price

After trading fairly flat for most of 2022, the Ramsay share price suddenly rocketed to a 52-week high of $84.58 in April.

The 25% gain came after the company received a $14.8 billion takeover offer from a consortium of investors led by KKR.

The Ramsay share price is up around 22% over the past 12 months and is trading 9% higher year to date.

Based on today’s price, Ramsay commands a market capitalisation of roughly $17.93 billion and has 228.88 million shares on hand.

The post Why is the Ramsay share price smashing the ASX 200 on Monday? appeared first on The Motley Fool Australia.

More reading

• Ramsay Health Care share price on watch amid Bupa contract termination
• These were the best performing ASX 200 shares in April
• ASX 200 midday update: ResMed disappoints, PointsBet rockets higher
• Ramsay Health share price bleeds as profits plunge
• These were the best performing ASX 200 shares last week

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 recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mineral Resources Limited (ASX: MIN) share price has suffered in the past month, but could it recover?

The mining services provider’s shares have fallen more than 13% from $63.20 at market open on 19 April to their current share price of $54.74

Let’s take a look at the outlook for Mineral Resources.

Could the Mineral Resources share price go higher?

Mineral Resources may have had a tough month, but multiple brokers are optimistic about the company’s share price.

Goldman Sachs is positive on the outlook for the company that also has interests in lithium, iron ore, and manganese. Goldman recommends Mineral Resources as a buy and has a $73.80 price target on the company’s shares. This is nearly 35% more than the share price at the time of writing.

Analysts predict Mineral Resources [earnings before interest, tax, depreciation and amortisation] EBITDA could double to A$2 billion in FY 2023.

Macquarie has placed an $85 price target on Mineral Resources, the Australian Financial Review reported. This is a 55% upside on the current share price. Macquarie analysts, however, cautioned iron ore and lithium prices could weigh on future earnings. They said:

Movements in spot iron-ore and spodumene prices present the most material risk to our earnings forecasts for Mineral Resources.

Mineral Resources recently achieved milestone lithium production at the Wodinga project in Western Australia. The company is also exploring lithium at Mt Marion. Commenting on the news, CEO Paul Brown said: “Achieving first spodumene concentrate production at Wodgina is a great milestone.”

My Foolish colleague Bernd recently reported Tribeca Global Natural Resources CEO Ben Cleary prefers ASX lithium shares at lithium production stage. He noted Mineral Resources in one of the top two lithium share holdings held by the Tribeca Global Natural Resources Fund.

Share price snapshot

The Mineral Resources share price has surged 23% in the past year, but has fallen around 2.4% year to date.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 4% in a year.

Mineral Resources has a market capitalisation of about $10.3 billion.

The post The Mineral Resources share price has dumped 13% in a month. Time to dig in? appeared first on The Motley Fool Australia.

More reading

• Why are ASX lithium shares off to such a flying start this week?
• What will the lithium price be in 2025?
• Top brokers explain why not all ASX lithium shares are created equal
• Brokers name 3 ASX lithium stocks to buy now
• What’s dragging the Mineral Resources share price lower on Tuesday?

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 Scott Phillips.

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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted share on the ASX for another week after its short interest rose to 17.3%. Some traders appear to believe the market is too optimistic on the travel industry recovery.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest surge to 16.6%. This betting technology company’s shares have fallen heavily this year amid valuation and cash burn concerns.
• Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is down week on week. Uncertainty caused by a major change to this medical device company’s sales model in the United States has put pressure on its shares.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 10.6%. This is despite the medical device company reporting heavy insider buying recently. Though, there is a lag with short seller data, so we may not know if short sellers have been spooked into closing positions by the insider buying until next week.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.1%. Short sellers have been going after this ecommerce company due to its poor performance and rising competition from Amazon.
• EML Payments Ltd (ASX: EML) has seen its short interest remain flat at 10%. This payments company has become a target of short sellers after it downgraded its profit guidance following a tough third quarter. There are regulatory concerns also weighing on sentiment.
• Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. This online travel agent is releasing its half year results later this week. Judging by the increase in short interest, short sellers aren’t expecting a strong result or guidance.
• Appen Ltd (ASX: APX) has seen its short interest rise to 9.15%. There are concerns that Appen could be facing softening demand due to some companies taking parts of their machine learning in-house.
• AMA Group Ltd (ASX: AMA) has 9.1% of its shares held short, which is up week on week once again. There are concerns about this smash repair company’s high debt load and dwindling cash balance.
• Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 8.9%. A disappointing underperformance in FY 2022 and less effective marketing for ecommerce companies (from privacy changes) have been weighing on sentiment and Redbubble’s shares.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Polynovo share price today?
• What’s boosting the Flight Centre share price on Monday?
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance
• Top brokers name 3 ASX shares to buy next week
• These were the best performers on the ASX 200 last week

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. has positions in and has recommended Appen Ltd, Betmakers Technology Group Ltd, EML Payments, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and REDBUBBLE FPO. The Motley Fool Australia has positions in and has recommended EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AGL Energy Limited (ASX: AGL) share price has bounced back from a rough start on Monday. Its struggle comes amid more reports of activist organisations slamming the company’s planned demerger.

At the time of writing, the AGL share price is $8.42, 0.24% higher than its previous close.

Though, it spent much of this morning in the red, trading for as low as $8.36 – a 0.4% slip.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is recording a 0.22% gain on Monday.

Let’s take a closer look at the latest criticism aimed at the split that will see AGL’s energy retail business become AGL Australia and its generation business transform into Accel Energy.

AGL demerger faces more heat

The AGL share price has rebounded after a disappointing morning’s trade. Its recovery came amid reports that London-based activist investment firm Snowcap has once again voiced its disapproval of the company’s demerger.

If this all sounds a bit familiar, it’s likely because Snowcap released a dossier detailing its disapproval of the demerger in February. Then, it said the split was “value destructive and environmentally disastrous”.

It also said the AGL share price could have an upside of 30% to 60% if the company ditched its demerger and transitioned away from coal-fired power by 2030. And that view reportedly hasn’t changed.

A Snowcap spokesperson has been quoted by the Australian Financial Review commenting on the company’s demerger scheme booklet:

We were extremely underwhelmed – 356 pages and still not one good reason why AGL should split in two.

It’s increasingly apparent to us that the demerger exclusively serves the interests of AGL’s leadership and advisers, leaving shareholders to pick up the $260 million bill.

The activist firm also welcomed the 11.28% stake in AGL recently picked up by Mike Cannon-Brookes’ Grok Ventures.

It reportedly said it was “encouraged” to see a fellow shareholder both disapprove of the demerger and envisage a greener future for the company.

Similar sentiments have also come from the Australasian Centre for Corporate Responsibility (ACCR) and Greenpeace.

The former pointed to a 2021 shareholder vote wherein 54% of AGL investors urged the company to establish Paris Agreement-aligned emissions targets.

ACCR director of climate and environment Dan Gocher said AGL’s plan to demerge “ignores the majority of its shareholders”.

AGL share price snapshot

Despite plenty of controversy, the AGL share price has been performing well in 2022.

It has gained 33% since the start of the year, outperforming the ASX 200 by around 40%.

However, the company’s stock and the index are both approximately equal with where they were 12 months ago.

The post AGL share price bounces back amid latest demerger opposition appeared first on The Motley Fool Australia.

More reading

• How dependant on coal closure is the AGL share price?
• AGL share price lifts despite Greenpeace accusing leadership of being ‘caught with their pants down’
• Is Cannon-Brookes getting ready to pitch a third takeover bid for AGL shares?
• Own AGL shares? Expert warns Cannon-Brookes’ stake might not be all it seems
• Cannon-Brookes warns AGL dividends at risk from demerger

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 Scott Phillips.

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Last week’s US$45 billion stablecoin meltdown rippled across almost every crypto asset.

The biggest hits came for investors in TerraUSD (CRYPTO: UST), backed by digital token Terra (CRYPTO: LUNA).

You can find the details of last Wednesday’s crypto meltdown here.

But in a nutshell, UST is an algorithmic stablecoin that’s intended to be pegged to the US dollar. Part of the mechanism intended to keep it trading in line with US$1 was a system that enabled anyone holding UST to swap it out for US$1 worth of LUNA at any stage.

However, when investors lost confidence in the peg, the token entered a rapid spiral, tumbling to 30 US cents as LUNA fell far more.

The ripple effects of the selloff hit the rest of the market, seeing even the biggest tokens like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) sell off sharply. By the time the smoke cleared, the combined crypto sector had shed some US$270 billion.

What’s happening now?

Despite financing efforts by Terra to regain the dollar peg, the token is currently trading for a lowly 17.7 US cents.

As for LUNA? It’s down 99.99% since this time last week, worth 0.02594 US cents.

Commenting on the carnage, founding partner of Castle Island Ventures Matt Walsh said (as quoted by Bloomberg), “It’s something the scale of which crypto has really never seen in terms of a top-five project just absolutely imploding.”

In a caution to newbie crypto investors, managing partner at Multicoin Capital Kyle Samani added, “The biggest losers from all of this will be retail [investors] that didn’t understand the risks they were taking.”

Can regulators prevent another crypto stablecoin meltdown?

When that much money gets wiped off the boards in a matter of hours, you can bet it draws the attention of corporate regulators.

Speaking at the Financial Services Institute of Australasia event in Sydney on Friday, Reserve Bank of Australia deputy governor Michele Bullock warned of increasing risks to broader financial markets as the market valuations of stablecoin and other cryptos grow.

As the Australian Financial Review reports, Bullock noted that “stablecoins are not so stable any more”, adding that “the crypto world is causing problems for everyone at the moment… Everyone is nervous about the implications, particularly for consumers.”

Bullock said stablecoins “are not big enough at the moment to cause [a] financial stability issue”. However, she warned, “Their links to the financial system are increasing, so there is potential there for risks to rise, and rise quite quickly.”

Australian Prudential Regulation Authority chairman Wayne Byres agreed that stablecoins needed stronger regulation. But with most cryptos created outside of the traditional banking industry, Byres questioned whether agencies like APRA were suited for that role.

According to Byres (quoted by the AFR):

It is not obvious to me that the role that might be needed when it comes to stablecoins is necessarily one for the prudential regulator as such. But I think it is clear – and is certainly absolutely worthy of consideration – that as these sorts of digital currencies move more into the mainstream, that there is going to be some form of regulatory requirements.

Some will be protective and some will be helpful to facilitate an orderly market developing.

While crypto investors can almost certainly expect more regulations in the stablecoin segment, those could be some time coming.

In the meantime, be aware that just because a token is pegged to a certain fiat currency or asset, it’s no guarantee it will trade for that value.

The post Can regulators prevent another US$45 billion crypto stablecoin meltdown? appeared first on The Motley Fool Australia.

More reading

• 2 cryptocurrencies that could dwarf Shiba Inu
• Is the Bitcoin price heading all the way back down to US$20,000?
• How is the Bitcoin ETF (EBTC) performing compared to the ASX on Friday?
• Could the next crypto collapse flow through to ASX shares?
• Crypto crash: Why Bitcoin, Ethereum, and Dogecoin are struggling again

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Shares of battery technology company Novonix Ltd (ASX: NVX) have lifted on Monday and now trade 1.36% in the green at $3.73.

The Novonix share price has traded as high as $3.98 and as low as $3.71 up until the point of writing.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is trading more than 1.8% higher as ASX tech shares begin to show signs of life. Early in the day the tech index reached a 3.8% peak.

What’s up with Novonix shares?

Shares in the company have collapsed from their former glory after shifting downwards at pace over the last six months.

In that time, shares have crumbled from a high of $12.15 to their current levels – a collapse of 69%.

This year to date, shares have faltered 59.4%, meaning Novonix needs to rally ~150% to return to these former highs.

Brokers aren’t constructive on the stock either – it has extremely narrow coverage, and just one analyst, Morgans, advocates its clients to hold Novinix shares at present, according to Bloomberg data.

However, tech shares are showing signs of life once more on Monday. The index tracking the sector has levelled off in today’s session and is running in the green, resulting in a sector-wide rally across many beaten-down names.

As such, companies like Novonix are benefitting from the resurged confidence, as hungry investors look for a cheap meal during market hours on Monday.

Trading volume is also at 60% of its four-week average as investors continue bidding up Novonix shares on Monday.

Novonix share price snapshot

Despite its difficulties this year, the Novonix share price has held onto a 96% gain over the last 12 months.

In the past month, however, it has collapsed 39% into the red.

Based on the current share price, Novonix presides a market capitalisation of $1.78 billion.

The post Novonix share price fights to stay in the green on Monday appeared first on The Motley Fool Australia.

More reading

• These were the worst performers on the ASX 200 last week
• Why is the Novonix share price down 9% today?
• The Novonix share price just rebounded 13%. Is it a buy?
• Technophobia? Why ASX 200 tech shares are getting hammered again
• Why is the Novonix share price down 6% on Friday?

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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