Month: May 2022

The All Ordinaries Index (ASX: XAO) is putting in another good show today, up 0.9% in early afternoon trading.

While the 1.25% intraday lift by the benchmark is laudable, these two ASX All Ordinaries shares are rewarding shareholders with far bigger gains.

Next-generation semiconductor developer rockets 22%

Weebit Nano Ltd (ASX: WBT) develops next-generation memory technology for the semiconductor industry.

The Weebit share price is up 19.38% at the time of writing, having been up as much as 27% earlier in the day.

Today’s action sees the ASX All Ordinaries share returning a 12 month gain of 46%, while the share price is still down 3% in 2022.

With no news out from Weebit, it looks as if the company may have piqued investor interest at the International Memory Workshop taking place in Dresden, Germany this week. Weebit presented there yesterday.

As the Motley Fool reported earlier, Weebit Nano’s chief scientist Gabriel Molas appeared to outline test results of Weebit ReRAM in 28nm. This was to include details about the technology’s endurance and reliability at high temperatures.

Weebit’s ReRAM technology is based on silicon oxide, reported to be more efficient and cheaper than contemporary flash technology.

This ASX All Ordinaries share is soaring 35% today

You won’t find shareholders of AnteoTech Ltd (ASX: ADO) complaining today.

The ASX All Ordinaries share is up 33% on yesterday’s close, having posted early morning gains of up to 60%.

Despite that big surge, the AnteoTech share price remains down 57% in 2022.

Investors are bidding up the share price today after the nanotechnology-focused company released a positive announcement related to the global pandemic.

AnteoTech reported that it’s received European regulatory approval for its EuGeni COVID-19 Rapid Antigen Test.

As the Motley Fool reported this morning, “Management stated that the new registration is for the same core SARS-CoV-2 Ag Rapid Diagnostic Test registered in April 2021. However, this now covers multiple use claims to include combined nose and throat sampling and nasal mid-turbinate sampling.”

Judging by the ASX All Ordinaries share’s rocketing price, investors appear to believe the approval could have a material impact on the company’s future performance.

The post Why these 2 ASX All Ordinaries shares are surging more than 20% today appeared first on The Motley Fool Australia.

More reading

• Why the AnteoTech share price is rocketing 33% today
• Why is the Weebit Nano share price rocketing 23% higher?

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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News of billionaire mining prospector Mark Creasy buying a large position in Galileo Mining Ltd (ASX: GAL) has reportedly struck a mark of gold on the company’s share price this week.

Shares in the nickel and cobalt explorer have erupted with a 387% spillover into the green in the last 5 days of trading to date.

At the time of writing, the Galileo Mining share price is fetching 97.5 cents after another 23% gain on the day.

Who is Mark Creasy?

Mark Gareth Creasy is a mining entrepreneur whose been described as having the ‘midas touch’ when it comes to investing in prospective and wildcat mining companies.

The mining prospector has been active on Australian listed investments this year, acquiring an $857,000 stake in newly listed Australian Potash Ltd (ASX: APC) and now most recently, Galileo.

Mr Creasy was fortunate enough to find himself situated on The Australian Financial Review’s top 200 rich list for 2021.

Stake in Galileo Mining

According to filings from Galileo this week, Creasy sized up his position by 3 million shares, bringing his total exposure to 44,371,895 shares. Overall, this represents an interest of more than 26%.

He acquired the shares at an average of 58 cents per share for $1.74 million in total.

Creasy’s move follows Galileo’s discovery of significant palladium, platinum, copper, gold, and nickel mineralisation last week, at the Norseman project in WA.

The “thick and consistent zone of mineralisation, and the extensive prospective strike length, suggests the potential for a large mineralised system,” said Galileo Mining’s managing director, Brad Underwood at the time.

Evidently, Creasy was somewhat pleased with the results and there’s valid speculation he made the large upscale in his position on the back of this news.

And with a track record of identifying diamonds in the rough with prospective investments, Creasy’s vote is a seal of approval for Galileo Mining.

After this latest rally, the Galileo Mining share price has secured a more than 333% gain for the year to date.

The post The Galileo Mining share price has rocketed 380% in a week. But this billionaire is still buying up big appeared first on The Motley Fool Australia.

More reading

• Why is the Galileo Mining share price jumping 42% today?
• Why did the Galileo Mining share price tumble 18% in early trading on Thursday?
• Galileo Mining share price explodes 150% on major discovery

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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The Australia Foundation Investment Co Ltd (ASX: AFI), or AFIC, has long been a stalwart of the ASX boards. It originally opened its doors way back in 1928, and has been doing pretty much the same thing ever since. That would be investing in a broad portfolio of mostly blue-chip ASX shares for the benefit of its owners. Listed investment companies (LICs) like AFIC long pre-date the exchange-traded fund (ETF). Thus, they were one of the only options for passive investors once upon a time.

But these days, the game has changed. ETFs, particularly index funds, are today far more popular than LICs like AFIC. That’s despite some LICs (AFIC included) displaying an ability to beat an equivalent ETF over long periods.

But how does AFIC go compared against other LICs? It certainly isn’t the only LIC out there offering a passive investment strategy. Well, let’s check it out.

So, as of 30 April, AFIC has delivered a return of 14.8% over the preceding 12 months (including dividends and franking). It has also averaged a 13.3% return per annum over the past five years, and 12.8% over the past 10.

Is AFIC the best LIC on the ASX?

AFIC is certainly not the only LIC on the ASX that has been around a long time. Milton Corporation Ltd was another one, but it was absorbed by Washington H. Soul Pattinson and Co Ltd (ASX: SOL) last year. Argo Investments Limited (ASX: ARG) is still going, and, like AFIC, Argo has been around for decades (although not quite as long as AFIC).

Argo shares have returned 13.4% over the past year (again, to 30 April). Over the past five years, this LIC has managed an average return of 8.6% per annum. That rises to 10.3% per annum over the past 10. So AFIC’s looking pretty good against Argo.

But there is another popular LIC on the ASX – WAM Capital Limited (ASX: WAM), run by Wilson Asset Management. WAM Capital has only been around since 1999. It takes a different, more activist approach to earn dough for its investors. At the end of last month, WAM Capital shares had gone backwards by 3.4% over the preceding 12 months (again including dividends). Over the past five years, this LIC has managed an average return of 8.8% per annum. This rises to 12.9% over the past 10. However, these metrics are before fees, whereas the above LICs’ metrics include fees.

So again, it seems AFIC comes out on top here.

There are many, many LICs still on the ASX, so we can’t go through them all. But few have been around as long as AFIC, and even fewer have the long-term record of this LIC to boast of. Thus, on the metrics we’ve gone through, it’s possible to conclude that AFIC is a strong contender for the ASX’s best LIC today.

The post Is AFIC the best LIC on the ASX? appeared first on The Motley Fool Australia.

More reading

• 2 compelling All Ordinaries ASX shares this fund manager likes
• WAM Capital’s ASX founder has been buying shares. Here’s what we know
• How is the AFIC share price performing with the ASX 200 volatility?
• Why did the AFIC share price go backwards in April?
• Could AFIC shares be an ASX inflation hedge?

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company 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 S&P/ASX 200 Index (ASX: XJO) is continuing its green streak on Wednesday, helped along by shares in the companies below.

They have surged to their highest point in years today, with some reaching record highs.

At the time of writing, the ASX 200 is up 0.83%. That brings its gains for this week so far to 1.37%.

Let’s take a look at what’s sending these stocks to new multi-year highs.

3 ASX 200 shares trading at their highest in years

Amcor (ASX: AMC)

The Amcor share price is pushing higher again after the stock’s US counterpart surged overnight.

Amcor’s stock reached a record high of $18.98 on Wednesday. That represents a 2.37% increase on its previous closing price.

The packaging provider is dual-listed on both the ASX and the New York Stock Exchange.

While Australia slept, its New York listing – Amcor (NYSE: AMCR) – lifted 3% to close Tuesday’s session overseas at US$13.33 a share.

As both listings refer to the same company, it makes sense that the overnight movement in New York might have equated to a gain on the ASX today.

Worley Ltd (ASX: WOR)

The Worley share price is also in the green on Wednesday. It pushed upwards to reach $14.87 earlier today ­– a new post-pandemic high.

Today’s gains come after the ASX 200 energy share announced two pieces of exciting news.

Worley has won a three-year engineering and procurement services contract. The contract will see the engineering company supporting five Shell (LON: SHEL) assets in the Gulf of Mexico.

On top of that, the company announced it has signed a new agreement with its partner Avantium. The pair have agreed to develop a world-first, commercial-scale renewable plastics facility. The facility will produce up to 5,000 kilotonnes of furandicarboxylic acid – a recyclable building block for many chemicals and plastics – each year.

Whitehaven Coal Ltd (ASX: WHC)

Finally, ASX 200 coal producer Whitehaven Coal has seen its share price hit a new multi-year high of $5.35 today. That’s the highest it’s traded since 2018.

There’s been no news from the company today. However, the price of thermal coal rose 2.8% overnight to reach US$413.65 a tonne, according to CommSec.

That could go some way to explaining the stock’s gains today.

The post 3 ASX 200 shares smashing multiyear highs on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the best performing dividend shares in the ASX All Ords so far in 2022
• 2 ASX 200 shares smashing multi-year highs today
• What I love about these ‘boring’ ASX shares: fundie
• ASX 200 midday update: Brambles takeover talks end, resources shares charge higher
• My fund just went up 51%: This is how I did it

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 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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Much has been made of lithium in recent years. As the ‘key’ to a future filled with renewable energy, electric vehicles and absence of fossil fuels, this ‘green metal’ has been a major source of excitement and optimism for ASX investors in recent years. You only need to look at prominent lithium stock prices like Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) over the past year to two to see this in action.

Today, it can be said that lithium-ion batteries represent the peak of rechargeable battery technology. But what if this was to change? After all, it was only a decade or two ago that nickel-cadmium batteries were the dominant technology.

Well, lithium-ion batteries’ days might be numbered too, if an article from Chemistry World is to be believed.

According to the article, machine learning is being used to discover the next generation of battery materials. Prominent amongst these are fluoride-ion batteries. This technology, it is predicted, is “tipped by some to rival, or even replace, lithium-based [batteries]”.

Could lithium batteries become redundant?

Here’s some more of why fluoride-ion batteries have scientists so excited:

In theory, fluoride-ion systems are ideal for batteries in everything from electric vehicles to consumer electronics. That’s because fluoride ions are lightweight, small and highly stable. Fluoride is also cheaper than lithium and cobalt that are required for lithium-ion batteries. What’s more, calculations suggest that fluoride-ion batteries have potential for greater storage capacity than lithium-ion technologies.

If this technology becomes mainstream, it obviously has huge implications for lithium stocks. Lithium is a metal with all kinds of uses, of course. But if the metal does not play a huge role in the electrification of the world over the next decade or two, it’s arguably fair to say that a big chunk of the ‘lithium bull case’ could be flawed.

In saying that, there are reportedly still some massive barriers to fluoride-ion technology. The article describes research as “still in its infancy”. The chemistry is difficult, with “not many materials… known to conduct fluoride ions, a vital requirement”. However, scientists at the University of North Carolina in the United States are still working through these issues. Researcher Scott Warren told Chemistry World that, “we’ve just submitted a patent for some of the most exciting compositions” in their research into the new battery technology. Exciting stuff.

Who knows what the future for renewable energy and batteries looks like. But perhaps investors shouldn’t be so convinced lithium-ion batteries will always be the dominant technology.

The post Could this ‘extremely cheap’ material eventually replace lithium in batteries? appeared first on The Motley Fool Australia.

More reading

• Is AFIC the best LIC on the ASX?
• 3 ASX 200 shares smashing multiyear highs on Wednesday
• Why I would invest $10,000 into these ASX shares today
• Is the Zip share price set to hit another unhappy milestone this week?
• 2 top metaverse stocks I think are ready for a bull run

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. 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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Although the Australian share market is rebounding today, it’s still trading a long way from its recent highs. In light of this, now might be an opportune time to consider entering the market.

If you’re looking to invest $10,000 into the share market, then it could be worth considering the two ASX shares listed below. Here’s why I rate them as buys:

CSL Limited (ASX: CSL)

The first ASX share I would recommend investors look at is CSL. Particularly with the biotherapeutics giant’s shares down 15% from their highs. This weakness has been caused by concerns over plasma collection headwinds, which appear to be easing now.

In addition, at the same time that supply is increasing, the company is implementing the recently FDA-cleared Rika Plasma Donation System across its collection centres. This new technology has been designed to enable the collection of more plasma in shorter periods of time.

Looking further ahead, the company’s investment in research and development means it has a pipeline of potentially lucrative therapies to support its growth, along with the impending acquisition of Vifor Pharma.

All in all, this appears to have left CSL well-positioned to deliver solid earnings growth over the long-term, which could make its shares a great buy and hold option.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX share that could be a quality option for a $10,000 investment is Domino’s. It is one of the world’s largest pizza chain operators with approximately 3,200 stores across the ANZ, Asia-Pacific, and European regions.

Its shares have lost more than 40% of their value in 2022 for a number of reasons. These include a softer than expected performance during the first half in Asia, inflation concerns, and a de-rating of growth shares.

While this is disappointing, I think it could be a buying opportunity for long-term focused investors. Particularly given the company’s bold expansion plans and strong balance sheet.

The former sees Domino’s planning to grow its store network to 6,650 stores by 2033. Whereas the latter provides management with opportunities to pursue suitable acquisitions through its One Brand, One Focus strategy.

So, with Domino’s shares trading on much lower than average multiples at present, now could be an opportune time to pounce.

The post Why I would invest $10,000 into these ASX shares today appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price cheap compared to other ASX 200 shares?
• Why CSL shares are ‘going to deliver’ in 2022: fund manager
• ‘Future-proof your portfolio’: experts pick 3 quality growth ASX shares to buy
• Where next for the CSL share price?
• CSL share price cracks under Vifor Pharma acquisition delay

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 CSL Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 has hit multiple disappointing milestones in 2022 and it could be about to hit another.

It was only eight days ago The Motley Fool Australia reported the buy now, pay later (BNPL) stock had dipped below $1 for the first time in years.

And today we’re wondering if the stock will dip below the 90-cent mark – a milestone it hasn’t seen since 2018.

At the time of writing, the Zip share price is sitting at 90 cents, 2.17% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.83%.

Let’s take a closer look at what’s been going on with the BNPL share lately.

Could the Zip share price fall below 90 cents?

 The Zip share price is sitting at a new 52-week low right now, bang on the milestone 90 cents mark.

It’s a sight that not many would have expected to see at the start of 2022. The Zip share price ended last year at $4.33. Since then it has shed a massive 79%.

Over the same period, the ASX 200 has slipped 5% and the S&P/ASX 200 All Technology Index (ASX: XTX) has plummeted 31%.

At the same time, Zip’s ASX-listed BNPL peer Sezzle Inc (ASX: SZL) – which Zip is currently in the process of acquiring – has also tumbled 79%.

Over the last two weeks, the Zip share price has spent just three sessions in the green, falling 22% in that time, alongside the broader tech sector.

But Zip is falling behind its technology peers today. Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is boasting a 1.05% gain while the All Technology Index is up 1.67%.

However, the S&P/ASX 200 Financials Index (ASX: XFJ) – where Zip technically calls home – is down 0.18% at the time of writing.

The post Is the Zip share price set to hit another unhappy milestone this week? appeared first on The Motley Fool Australia.

More reading

• Why is the Zip share price down almost 25% in a month?
• Why did the Zip share price just pop then drop?
• 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

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 ZIPCOLTD FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The metaverse is a hot technology trend that’s currently in its early phases of growth, but it is expected to become massive in the long run thanks to its ability to connect people spread across the globe in 3D virtual worlds.

In simpler words, people can work, play, learn, and socialize within the metaverse from the comfort of their homes with the help of mixed reality devices that support both augmented reality and virtual reality. Not surprisingly, investments in this space are expected to grow rapidly in the coming years. A third-party estimate forecasts that the metaverse market could grow at an annual rate of nearly 48% through 2029, hitting a size of just over $1.5 trillion at the end of the forecast period.

Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) are two companies that can help investors win big from this trend. Let’s see why the metaverse could send the stocks of these tech giants on a bull run.

1. Nvidia

Nvidia stands to gain from the metaverse in multiple ways. In fact, the graphics specialist is already reaping the benefits of this emerging tech trend by powering Meta Platforms‘ (NASDAQ: FB) supercomputer that’s supposed to help support the metaverse’s growth. Meta’s Artificial Intelligence (AI) Research SuperCluster (RSC) supercomputer is powered by just over 6,000 Nvidia graphics processing units (GPUs). The supercomputer will eventually be powered by 16,000 Nvidia GPUs once Meta completes the expansion of the same.

Meta believes that “the work done with RSC will pave the way toward building technologies for the next major computing platform — the metaverse, where AI-driven applications and products will play an important role.” This means that the demand for Nvidia’s GPUs should ideally boom in the long run as data centers, servers, and supercomputers will have to be upgraded to tackle the real-time delivery of 3D content to millions of users around the globe.

This, however, is not the only opportunity for Nvidia in the metaverse. The company estimates that, along with chips, the metaverse will also create robust demand for enterprise software. According to Nvidia, the hardware and software opportunity together represent a $300 billion addressable market.

Now, we have seen how Nvidia tends to gain on the hardware side of things from the metaverse. The good part is that its software opportunity is also taking off. Known as the Omniverse, Nvidia already has a scalable development platform that allows creators and developers to make virtual worlds, especially digital twins — virtual replicas of physical objects and spaces in the real world.

What’s more, Nvidia claims that more than 400 companies have been evaluating the adoption of its Omniverse platform. Automotive giant BMW has tapped the Omniverse to create a digital twin of a factory, while Ericsson is using the platform to simulate and visualize 5G wireless networks before launching them.

All this indicates that Nvidia’s business could get a nice shot in the arm thanks to the metaverse, and that could play a substantial role in boosting the company’s already excellent pace of growth. Nvidia finished fiscal 2022 (which ended on Jan. 30) with a 61% year-over-year increase in revenue to $26.9 billion, and the metaverse opportunity indicates that it is scratching the surface of a massive opportunity.

Analysts expect Nvidia to clock annual earnings growth of 30% for the next five years, and the addition of opportunities such as the metaverse could help it grow at a faster pace and supercharge the stock in the long run.

2. Microsoft

Microsoft is another tech giant that’s on track to win from the metaverse in multiple ways, including the lucrative video gaming space.

Earlier this year, Microsoft announced that it would be acquiring Activision Blizzard in a deal worth $68.7 billion. While announcing the acquisition, Microsoft’s press release said that the “acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud, and will provide building blocks for the metaverse.” It is worth noting that Microsoft already has a solid base in the gaming business thanks to its Xbox consoles, the Game Pass video game subscription service, and a big library of gaming titles, thanks to its ownership of several gaming studios.

This puts Microsoft in a solid position to tap into the metaverse gaming opportunity, which is expected to grow at a terrific pace. Cryptocurrency asset management firm Grayscale estimates that virtual gaming worlds could generate $400 billion in revenue by 2025 as compared to $180 billion in 2020. Almost all the virtual gaming revenue will be generated by in-game spending, so Activision’s user base of 400 million will give Microsoft access to a large pool of players from whom it can drive incremental spending to power the growth of its gaming business in the metaverse.

Beyond gaming, Microsoft has already dived into the metaverse with Mesh for Microsoft Teams. This product, which is built on top of the popular Microsoft Teams collaboration tool, will allow people in different locations to attend meetings in immersive 3D spaces through their virtual avatars. Microsoft Teams has a user base of over 250 million, so the company can cross-sell its metaverse collaboration tool to a huge audience.

Meanwhile, Microsoft also plans to take advantage of the application of the metaverse in the industrial sector as well, where it plans to tap the growing demand for digital twins. This could turn out to be a smart move from Microsoft, given that the digital twin market is expected to generate $61 billion in revenue by 2027 as compared to $10 billion last year, according to Mordor Intelligence.

Throw in the company’s prospects in other lucrative markets such as cloud computing and video gaming, and it won’t be surprising to see Microsoft sustain its impressive growth in the long run. The company’s revenue was up 18% year over year in the third quarter of fiscal 2022 (ended March 31) to $49.4 billion, while adjusted earnings had shot up 14%.

Analysts expect Microsoft’s earnings to clock an annual growth rate of 16% for the next five years, but don’t be surprised to see it do better than that, thanks to lucrative growth drivers such as the metaverse. That’s why buying Microsoft stock looks like a no-brainer right now, as it is trading at 26 times trailing earnings, a discount to its five-year average multiple of 37. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 top metaverse stocks I think are ready for a bull run appeared first on The Motley Fool Australia.

More reading

• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Worried about inflation? Here’s what Warren Buffett says Berkshire Hathaway is doing
• Which ASX 200 shares have historically performed well during rising inflation?
• Is Nvidia stock a buy after falling 40% from all-time highs?
• Have ASX tech shares finally reached the bottom?

Harsh Chauhan has no positions in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Meta Platforms, Inc., Microsoft, and Nvidia. The Motley Fool Australia has recommended Activision Blizzard, Meta Platforms, Inc., and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Imugene Limited (ASX: IMU) share price has shot up during early afternoon trade.

This comes after the company announced an update on its phase 1 clinical trial of its novel cancer-killing virus, CF33-hNIS.

Developed by City of Hope, the oncolytic virus has demonstrated in shrinking solid tumours in preclinical laboratory and animal trials. This includes colon, lung, breast, ovarian and pancreatic cancer tumours.

City of Hope is one of the largest cancer research and treatment organizations in the United States.

At the time of writing, the clinical stage immuno-oncology company’s shares are 4.24% higher to 17.2 cents.

Imugene commences Vaxinia study

In its release, Imugene advised it has dosed the first patient in the phase 1 clinical trial of CF33-hNIS (Vaxinia).

This has stirred up excitement among investors, sending the Imugene share price higher.

Management noted the primary goal of the study is to evaluate the safety of CF33-hNIS when used in people with advanced solid tumours.

At first, a low dose of CF33-hNIS will be administered to cancer patients with metastatic or advanced solid tumours. This will be for those who have had at least two prior lines of standard of care treatment.

The investigational treatment will be delivered either as an injection directly into tumours or intravenously.

Once patients have been treated with CF33-hNIS and acceptable safety has been demonstrated, new study participants will progress to the next stage.

Those volunteers will receive the experimental oncolytic virus in combination with the immunotherapy pembrolizumab. The latter is an engineered antibody that improves the immune system’s ability to fight cancer-causing cells.

The study aims to recruit 100 patients across approximately 10 sites in the United States and Australia.

The trial is anticipated to run for approximately 24 months and will be funded from Imugene’s existing cash reserves.

Imugene managing director and CEO Leslie Chong commented:

The dosing of the first patient in our Vaxinia study is a significant milestone for Imugene and clinicians faced with the challenge of treatment for metastatic advanced solid tumours.

Professor Yuman Fong and the City of Hope team have provided outstanding research. In addition to the positive preclinical results, we’re incredibly eager to unlock the potential of Vaxinia and the oncolytic virotherapy platform.

Imugene share price snapshot

Despite today’s gains, the Imugene share price has been on a trending decline over the past 12 months. Its shares are down almost 50%, with year to date losses of around 57%.

The company’s shares hit a 52-week low of 15 cents last week, before moving in circles.

Based on the current price, Imugene has a market capitalisation of roughly $965.05 million.

The post Here’s why the Imugene share price just got a boost appeared first on The Motley Fool Australia.

More reading

• Why Imugene, Integrated Research, Monash IVF, and Step One shares are sinking
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance
• Why A2 Milk, Imugene, Liontown, and Magellan shares are tumbling lower
• These were the worst performers on the ASX 200 last week
• ASX 200 midday update: NAB disappoints, Qantas announces acquisition

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 Scott Phillips.

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ASX bargain shares aren’t easy to find despite the recent market sell-off. But two sectors stand out according to a top broker.

The sharp drop in the S&P/ASX 200 Index (ASX: XJO) and global equities over the past few weeks is driven by inflation fears, geopolitical risks and rising interest rates.

But those hoping for a sustained bounce could be disappointed as Macquarie Group sees limited upside.

ASX shares are no bargain buy

This is because the broker reckons ASX shares and United States equities are still expensive, even after the pullback.

Macquarie says:

Based on current real yields, the All-Industrials PE is ~10% too high, with >20% downside for Telecoms and Technology.

Even though US stocks have de-rated, valuations are still higher today than they were before the 20% correction in 4Q18.

Rising rates not priced fully priced into markets

The fourth quarter of 2018 was the last time the US Federal Reserve hiked rates and wound back quantitative easing.

The Reserve Bank of Australia (RBA) is joining its US counterpart in lifting rates. But the markets are not pricing in much of the monetary tightening, which will slow economic growth.

Macquarie adds:

The RBA and Fed are also early in their tightening cycles and are likely to hike at a faster pace over coming months to try and bring inflation under control.

We are yet to see the EPS downgrade cycle that comes from central bank hikes. There is also the risk the Fed hikes the US into a recession in 2023/24, and in this scenario, we caution the All-Industrials PE in recessions since 1960 was ~11x, less than the 18.2x in the 2020 COVID recession.

ASX shares to buy in this environment

However, this doesn’t mean there aren’t ASX value buys in this market. Macquarie highlights resources and defensives as two categories that its strategy portfolio is overweight in.

High commodity prices are one reason why the ASX 200 is outperforming the US benchmarks during this sell-off.

Macquarie believes this thematic will persist. It reckons China will launch a stimulus program to restart its economy, which will give Australia a further boost.

ASX value shares to put on your buy list

The ASX resources shares that Macquarie believes are best placed are the South32 Ltd (ASX: S32) share price, BHP Group Ltd (ASX: BHP) share price, and Rio Tinto Limited (ASX: RIO) share price.

These shares have high current earnings and further earnings per share (EPS) upside in FY23 if spot commodity prices stay where they are or move higher.

Other ASX shares that the broker is urging investors to buy include the Incitec Pivot Ltd (ASX: IPL) share price and Mirvac Group (ASX: MGR) share price.

The post Macquarie reveals 2 sectors where bargain ASX shares still exist appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares I have supreme confidence in: fund manager
• Is the Telstra share price cheap compared to other ASX 200 shares?
• Broker names 3 reasons the South32 share price could be cheap
• Why has the Rio Tinto share price dumped 14% in a month?

Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited, Macquarie Group Limited, Rio Tinto Ltd., and South32 Ltd. 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 Macquarie Group 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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