Day: September 23, 2022

The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why?

a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.

The Fortescue Metals Group Limited (ASX: FMG) share price has beaten the broader market by a significant margin this afternoon.

Shares in the iron ore miner closed 1.33% higher at $16.76 on Friday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) was steep in the red, posting a hefty 1.87% loss.

The S&P/ASX 200 Materials Index (ASX: XMJ) also struggled, closing the day with a 0.49% loss.

So why is Fortescue green in a sea of red?

Investors may be staying optimistic amid the company’s massive $9.2 billion decarbonisation plans that were announced on Tuesday. Fortescue intends to emit zero terrestrial emissions from its iron ore operations by 2030, which will confer the company several benefits.

First, it will reportedly derisk its product as governments use increasingly heavy-handed tactics to get emissions under control, including by issuing penalties. Staying behind the ball now may prevent Fortescue from being blindsided by fines and possible restrictions on its operations later.

There may also be more tangible benefits for the company to offer a net-zero product.

Increased demand

ASX lithium shares like Vulcan Energy Resources Ltd (ASX: VUL) are building an economic moat by exploring lithium geothermal extraction methods that release no emissions into the atmosphere. It’s posited that Vulcan’s output may command higher prices over lithium produced from hard-rock mining.

A carrot and stick situation may unfold where governments may favour or even enforce that companies buy from aspiring net-zero producers such as Fortescue and Vulcan. This, in turn, would shrink the total supply of net-zero elements and commodities, creating further scarcity.

My Fool colleague James also notes that Fortescue expects to realise significant cost savings from the transition to net zero.

Decreased costs

Fortescue expects to save $US818 million per year by 2030. It’s expected to recoup its multi-billion dollar investment by 2034.

Cost savings will reportedly be seen from the company moving away from fossil fuels and instead relying on renewable energy generators. Its savings will also be boosted by Australian carbon credit units and not paying carbon offset purchases.

In practice, the company will deploy renewable energy generators and green-powered vehicles for its fleet and mining equipment. Studies are underway to harness wind and solar energy sources at its exploration sites.

Fortescue share price snapshot

The Fortescue share price is down 15.57% year to date. Meanwhile, the S&P/ASX 200 Index is down 13.37% over the same period.

The company’s market capitalisation is $51.6 billion based on the current share price.

The post The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor Matthew Farley 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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Allkem share price sinks 5% amid Mexico lithium deposit speculation

Falling ASX share price represented by shocked Investor looking at phone.Falling ASX share price represented by shocked Investor looking at phone.

The Allkem Ltd (ASX: AKE) share price has had a tough end to the week.

Allkem shares fell 5.3% today to $14.84. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) dropped 0.49% today.

Let’s take a look at what could be impacting the Allkem shares.

Allkem among ASX lithium shares to struggle on Friday

The Allkem share price may have fallen today, but it was not alone among ASX lithium shares. The Core Lithium (ASX: CXO) share price fell 1.96% today, while Sayona Mining Ltd (ASX: SYA) fell 5% and Pilbara Minerals Ltd (ASX: PLS) dropped 1.82%.

News out of Mexico could add to lithium supply in the future, potentially putting downward pressure on lithium prices.

The nation has a lithium deposit that could be worth billions, Reuters reports.

A lithium deposit in the Mexican state of Sonora is said to be worth 12 trillion Mexican pesos, according to the government. This is equivalent to $909 billion Australian dollars.

On 24 August, Mexican president Andrés Manuel López Obrador set up a state company, LitioMx, to mine lithium. This is due to operate in February, 180 days after the decree to set up the new company was published.

The Allkem share price hit a yearly high of $15.99 on 13 September. Allkem is involved in multiple lithium projects including the Olaroz, Sal de Vida and Cauchari projects in Argentina, the Mt Cattlin project in Western Australia, the Naraha project in Japan, and the James Bay project in Canada.

Bell Potter rates Allkem as a buy and has placed a $21.58 price target on the company’s share price.

AKE share price snapshot

The Allkem share price has lifted 67% in the past year, while it has gained 43% year to date.

For perspective, the ASX 200 Materials Index has gained nearly 0.9% in the past year.

Allkem has a market capitalisation of $9.46 billion based on the current share price.

The post Allkem share price sinks 5% amid Mexico lithium deposit speculation appeared first on The Motley Fool Australia.

Should you invest $1,000 in Allkem Limited right now?

Before you consider Allkem Limited, 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 Allkem Limited wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor Monica O’Shea 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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Could this be good news for Flight Centre shares?

Two adults and a child look happy as they walk through airport with child sitting on suitcase.Two adults and a child look happy as they walk through airport with child sitting on suitcase.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red today, but could the renewed interest in international travel spell good news?

The travel company’s share price closed trading at $15.41, a 2.96% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished down 1.92% today.

Let’s take a look at the outlook for Flight Centre shares.

International traffic numbers increase

Flight Centre shares may be down today, but they are not alone among ASX travel shares. The Qantas Airways Limited (ASX: QAN) share price is down 1.91% today, while Webjet Limited (ASX: WEB) shares descended 3.04%.

International passenger traffic in July soared 1229.9% from 154,692 in July 2021 to 2.057 million in July 2022, BITRE data shows. However, traffic in July was 45% lower than July 2019.

Overall, passenger traffic for the year ended July 2022 was 8.425 million, nearly 600% more than the year ended July 2021. But this is still 80% less than the 42.146 million passengers who travelled to and from Australia in the year ended July 2019. However, the international borders only fully opened on 21 February this year.

Meanwhile, demand for passports may also be a good sign for ASX travel shares. Passport applications are averaging 12,000 a day, according to a Foreign Affairs and Trade department spokesman and cited by 7 News. This compares to 7,000 to 9,000 prior to COVID-19.

Flight Centre was the most shorted share on the ASX last week, as my Foolish colleague James reported Monday.

Flight Centre share price snapshot

The Flight Centre share price has fallen 23% in the past year, while it has lost 12% in the year to date.

In comparison, the ASX 200 has shed 10.8% in the past year.

Flight Centre has a market capitalisation of more than $3 billion based on the current share price.

The post Could this be good news for Flight Centre shares? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre Travel Group Limited right now?

Before you consider Flight Centre Travel Group Limited, 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 Flight Centre Travel Group Limited wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor Monica O’Shea 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 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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This board member pulled the trigger on more Mesoblast shares

A middle-aged woman sits in contemplation over a tablet device considering information about ASX shares and deep in thought.A middle-aged woman sits in contemplation over a tablet device considering information about ASX shares and deep in thought.

The Mesoblast Limited (ASX: MSB) share price is down 2.3% today to 85 cents.

This fall is in line with the S&P/ASX All Ordinaries Index (ASX: XAO), which has dipped 2.26% at the time of writing.

Which director has bought Mesoblast shares?

The only news out of Mesoblast this month relates to two company directors buying more shares.

The latest purchase is by William Burns, who is the non-executive vice chair of the ASX biotech company.

Burns picked up 22,000 shares on 13 September. He paid an average price of approximately 91 cents per share for a total consideration of $20,020.

According to the change of director’s interest notice, this takes his total holdings to 85,000 shares and 220,000 options.

About a week earlier, Mesoblast’s newest director Jane Bell more than doubled her holdings.

As my Foolish colleague James reported, the non-executive director purchased 133,333 shares on market on 7 September.

According to the change of director’s interest notice, she paid an average price of approximately 83 cents per Mesoblast share.

That equates to a total consideration of $109,999.73. This increased her holdings to 247,618 shares.

As James points out, ASX investors generally perceive insider buying as a positive sign. After all, no one knows a company better than its directors, and Bell is certainly optimistic about Mesoblast’s future.

When appointed in August, Bell said:

I look forward to joining the Mesoblast Board at such an exciting stage in the company’s transition to a commercial organization, with its deep cell therapy product pipeline.

The potential FDA approval and launch in the US market of the first allogeneic cell therapy is an incredibly exciting opportunity for me to be involved with and I look forward to using my background and experience to make a strong contribution.

Mesoblast share price snapshot

Mesoblast shares are down 51% over the past 12 months. In 2022, they have fallen 39%.

The ASX biotech share is currently trading close to its 52-week high of 88 cents.

The post This board member pulled the trigger on more Mesoblast shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Mesoblast Limited right now?

Before you consider Mesoblast Limited, 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 Mesoblast Limited wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor Bronwyn Allen has positions in Mesoblast Limited. 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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