Month: October 2022

S&P/ASX 200 Index (ASX: XJO) iron ore shares have taken a bit of a beating in recent months.

Over the past six months, the Rio Tinto Limited (ASX: RIO) share price has dropped 22%, the BHP Group Ltd (ASX: BHP) share price has declined 22% as well, the Fortescue Metals Group Limited (ASX: FMG) share price has fallen 32% and the Champion Iron Ltd (ASX: CIA) share price has dropped 35%.

It’s difficult for resource businesses to rise when the relevant commodity price is falling.

What’s going on with the iron ore price?

Reporting by the Australian Financial Review showed that the iron ore price continues to fall. The newspaper reported on a weekend note by S&P Global Commodity Insights which attributed a decline at the end of last week to “poor liquidity as most market participants showed a cautious buying behaviour”.

S&P also noted that the decline of the iron ore price reflected “poor margins” at Chinese steel mills.

The newspaper quoted TD Securities, which suggested that Chinese manufacturing is under pressure “on trade intensifies and amid renewed COVID flare-ups across the country. Additionally, property-sector weakness shows little sign of abating.”

However, TD Securities referred to “firmer steel demand”, which will “offer some solace” and that “autos production is another bright spot.” But, more lockdowns in some cities are expected to pressure the non-manufacturing purchasing managers’ index.

Liberum Capital said in a note that the outlook isn’t promising considering the Chinese real estate sector is going through troubles yet there is “relatively robust demand for commodities.”

In the note, Liberum Capital said:

We do not believe that this apparent versus actual demand mismatch is healthy or sustainable. Trade/price correction risk is building.

Is this a good time to invest?

Liberum Capital certainly doesn’t think so, with a selling rating on both BHP and Rio Tinto.

The broker UBS currently has a neutral rating on BHP, with a price target of $35.50. This rating was based on the risk that iron ore prices could keep falling

Macquarie has an outperform rating on BHP, with a price target of $45, though it did acknowledge that the wet weather could hamper production.

It’s a similar story with Rio Tinto. UBS has a neutral rating, with a price target of $90. However, Macquarie’s rating is also neutral on Rio Tinto, with a price target of $95.

On Fortescue, Macquarie rates the ASX 200 iron ore share as underperform, with a price target of just $14.50. Macquarie thinks that the iron ore price will be subdued over the next year or two.

Foolish takeaway

Time will tell what happens with the iron ore price. There could be a positive surprise in China.

Also, iron ore has been cyclical in the past – just look at 2016. It’s impossible to predict if or when the iron ore price could go back above US$100 per tonne, but I think times of heightened pessimism could prove to be the opportunistic time to look at these ASX 200 iron ore shares.

The post Could ASX 200 iron ore shares be heading for more pain? appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Bubs, EML, and Fortescue shares are falling today
• The BHP share price went backwards in October. Time to pounce?
• Why I chose to buy Fortescue shares over BHP
• Brokers say there’s more pain ahead for the Fortescue share price
• Why Brainchip, Calix, Fortescue, and ResMed shares are sinking

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Iluka Resources Limited (ASX: ILU)

According to a note out of Credit Suisse, its analysts have upgraded this mineral sands and rare earths miner’s shares to an outperform rating with a $10.00 price target. This broker was pleased enough with Iluka’s quarterly production and the strong prices it received. And while Credit Suisse has some small doubts over its production guidance, it isn’t enough to stop it from upgrading its shares. Particularly given its catalyst-rich schedule which it feels could drive its shares higher. The Iluka share price is trading at $8.68 on Monday.

Macquarie Group Ltd (ASX: MQG)

A note out of Morgans reveals that its analysts have retained their add rating on this investment bank’s shares with a trimmed price target of $214.30. This follows the release of a first half result which revealed a stronger than expected profit. Overall, Morgans highlights that Macquarie is a quality franchise, well exposed to structural growth areas, and is managing a more difficult FY 2023 environment well. The Macquarie share price is fetching $169.15.

ResMed Inc. (ASX: RMD)

Another note out of Morgans reveals that its analysts have retained their add rating on this sleep treatment company’s shares with a slightly lower price target of $37.00. Morgans was pleased with ResMed’s quarterly update, highlighting that its first quarter result was better than expected. So, with supply chain pressures easing, the broker believes that ResMed’s outlook is very positive. The ResMed share price is trading at $33.98 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Is the Macquarie share price a buy following the banking giant’s latest results?
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Is the Macquarie share price in the buy zone? Here’s what Goldman Sachs thinks
• Why Brainchip, Calix, Fortescue, and ResMed shares are sinking

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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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ASX lithium shares are bolting out of the gate on Monday via some renewed momentum, thereby pulling far ahead of their sector and the broader market.

Many lithium players in Australia are doing extremely well today. Here’s a quick glance at the numbers that some are generating right now:

• Pilbara Minerals Ltd (ASX: PLS) +5.13%
• Core Lithium Ltd (ASX: CXO) +4.10%
• Lake Resources N.L. (ASX: LKE) +5.58%

It should be noted that these share price movements are despite the materials sector being the second-worst-performing sector on Monday. The S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.41%.

And the market as a whole is enjoying a day in the green with the S&P/ASX 200 Index (ASX: XJO) showing a 0.83% gain.

There are more than a few reasons for investors to be feeling optimistic about ASX lithium shares thanks to a mixture of strong commodity prices, positive news stories, and glowing quarterly reports posted to the market recently. Let’s investigate.

Two ASX lithium shares post strong quarterly results

There are strong quarterly reports from the likes of Core Lithium Ltd (ASX: CXO) to help lithium shares beat the market this afternoon. The company said it expected its maiden spodumene concentrate production to be realised in the first half of FY23 and that its spodumene reserve estimates were boosted during the quarter.

Another ASX lithium share that shared good news with the market today was Lake Resources N.L. (ASX: LKE). In its quarterly activities report, Lake Resources stated it signed a new off-take agreement for up to 50,000 tonnes per annum of lithium carbonate and made progress with its lithium brine operations.

What else is going on?

On the demand front, the lithium carbonate contract for difference (CFD) price is hovering around its all-time high at 562500 Chinese yuan per tonne, according to Trading Economics. This CFD price has more than doubled since the start of 2022.

Meanwhile, China’s domestic consumption of lithium inputs could be set to increase further, according to excerpts from a Chinese navy study published by the South China Morning Post on Saturday.

China is reportedly replacing its lead-acid batteries with lithium-based alternatives, which could “significantly boost a submarine’s survival and combat abilities”, the article said. China has the largest submarine fleet in the world in proportion to its surface vessels.

The post Why are ASX lithium shares pulverising most of the market on Monday? appeared first on The Motley Fool Australia.

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More reading

• Qantas shares are up 13% this year, but could the CEO’s pay still be in jeopardy?
• Could this news be helping the Sayona share price light up today?
• TPG shares lift after revealing plans of ‘unlocking’ more value
• What sent the Imugene share price 6% higher this morning?
• Liontown Resources share price jumps higher on the release of quarterly activities report

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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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.

While tech stocks were hammered in 2022, the cloud computing industry barreled along at an impressive growth rate. According to research firm Gartner, the public cloud sector alone is estimated to grow 20% this year.

This amounts to nearly half a trillion dollars in 2022. Just a decade ago, global public cloud computing revenue was a mere $26.4 billion.

Given the cloud industry’s rapid expansion, competitors abound. Among the bigger players are tech giants IBM (NYSE: IBM) and Google Cloud, owned by Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).

Both are seeing strong growth in their respective cloud businesses. But if you had to choose between the two, which company offers the better investment opportunity? Let’s dig into each to arrive at an answer.

IBM’s cloud strategy

IBM spent the past few years reinventing itself into a hybrid cloud-focused company. In a hybrid cloud implementation, a business employs both public and private clouds, using the former to perform basic IT infrastructure tasks, such as hosting a corporate website, and the latter to secure confidential or critical data, including financial and customer records.

IBM was smart to focus on this area. The hybrid cloud market is forecasted to grow from $85.3 billion last year to $262.4 billion by 2027.

In addition, IBM’s impressive list of enterprise clients is an ideal fit for hybrid cloud solutions. Big Blue’s customers include the top ten banks, governments, and healthcare companies in the world. These industries need the security of a private cloud while capturing the cost savings of a public one.

IBM’s hybrid cloud strategy proved successful. In its third-quarter earnings report, IBM generated revenue of $14.1 billion, a 6% increase over 2021. This is the third consecutive quarter of year-over-year revenue growth despite macroeconomic headwinds, such as a strong U.S. dollar.

Big Blue also offers an attractive dividend, yielding about 4.8% at the time of this writing. The company can maintain this robust dividend thanks to its free cash flow (FCF). IBM expects to hit $10 billion in FCF this year, while dividend payments totaled about $6 billion over the trailing 12 months.

IBM has a strong dividend track record, paying consecutive quarterly dividends since 1916. It also raised its dividend in April, marking 27 consecutive years of dividend increases.

Alphabet’s Google Cloud approach

Alphabet is building its Google Cloud business in the same way it generated success for its famed Google search engine: by prioritizing customer acquisition and revenue growth over profitability.

That’s why Google Cloud is currently unprofitable, exiting the third quarter with an operating loss of $699 million. But its business is growing rapidly. In just three quarters this year, Google Cloud’s sales nearly matched all of 2021’s income, continuing a multi-year streak of rising revenue.

Time Period	Google Cloud Revenue	YOY Growth
Q1 through Q3, 2022	$19 billion	39%
2021	$19.2 billion	47%
2020	$13.1 billion	46%
2019	$8.9 billion	53%

Data source: Alphabet. YOY = year-over-year.

Google Cloud comprised only about 10% of Alphabet’s Q3 revenue, but it’s already ranked the third-biggest cloud computing company behind industry leaders Amazon and Microsoft. And Alphabet continues to aggressively invest in Google Cloud despite closing down other bets such as its Stadia video games division.

For instance, Alphabet acquired cybersecurity firm Mandiant in September for $5.4 billion, marking one of the company’s biggest acquisitions in its history. Mandiant will boost Google Cloud’s security in a world where remote workers grew from 23% of the American workforce before the coronavirus pandemic to nearly 60% in 2022.

Is IBM or Alphabet the better investment?

Both IBM and Alphabet have proven successful in their cloud endeavors, so investing in either is worthwhile. After all, the cloud computing industry is forecasted to grow from $706.6 billion last year to $1.3 trillion by 2025.

But if I had to choose one of these cloud computing companies to invest in, I would lean toward Alphabet despite IBM’s success and attractive dividend.

Google Cloud’s revenue is already edging past Big Blue. IBM’s hybrid cloud revenue over the past 12 months totaled $22.2 billion. Google Cloud’s revenue was $24.5 billion over the same time period.

Granted, Google Cloud’s success can be overshadowed by Alphabet’s digital advertising business, which accounted for $54.5 billion of its $69.1 billion in Q3 revenue. And the advertising industry is experiencing a downturn this year, leading Alphabet’s Q3 ad revenue to increase just 2.5% year-over-year.

But Alphabet’s ad business helps fund Google Cloud. Alphabet generated $63 billion in FCF over the past 12 months, while IBM expects to achieve a cumulative FCF total of $35 billion across three years, from 2022 to 2024.

Also, Alphabet possesses several factors, along with Google Cloud, that make the company an alluring investment, including its dominance in search advertising. Alphabet increased revenue 41% year-over-year in 2021, and its revenue continues to grow this year, reaching $206.8 billion over three quarters compared to $182.3 billion last year.

Google Cloud’s strong growth, Alphabet’s hefty FCF, and the company’s other areas of strength provide compelling reasons to make Alphabet the better choice for an investment in the rapidly rising cloud computing industry. 

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

The post Better cloud computing stock: IBM vs. Alphabet appeared first on The Motley Fool Australia.

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More reading

• Look for stocks with this balance sheet trait to outperform in the coming recovery
• Alphabet’s ad business slows to a trickle. Time to sell?
• Why are ASX 200 tech shares getting bashed around today?
• Why are Bitcoin, Ethereum, and Dogecoin leaping higher today?
• Why were Meta and Amazon stocks falling today?

Robert Izquierdo has positions in Alphabet (A shares), Amazon, IBM, and Microsoft. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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 Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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 Calix Ltd (ASX: CXL) share price is having another disappointing day.

In afternoon trade, the environmental technology company’s shares are down 9% to a 52-week low of $4.04.

This means the Calix share price is down 26% over the last two trading sessions.

Why is the Calix share price crashing?

Investors have been hitting the sell button since Calix announced that the Federal Government has withdrawn some major funding for a couple of projects.

According to the release, following the Budget, AusIndustry informed Calix that $11 million in grant funding announced by the former Government would be cancelled. These funds were going to support Calix’s project with Adbri Ltd (ASX: ABC) to develop low emissions lime.

But it gets worse. Building materials company Boral Limited (ASX: BLD) has advised Calix that another $30 million in grant funding from the former Government has also been cancelled. These funds were going to be use for a Carbon Capture, Use and Storage (CCUS) project utilising Calix’s cement and lime decarbonisation technology.

One small positive, which hasn’t been enough to keep the Calix share price from sinking, is that the current Federal Government has announced that it will be implementing a new Carbon Capture Technologies program. This will see the government provide $141.1 million over ten years as part of a realignment of investment in carbon capture technologies. Though, there’s no guarantee that Calix will receive any of this funding.

Is this a buying opportunity?

One broker that remains cautiously optimistic on the company is Shaw & Partners.

This morning the broker retained its buy rating but slashed its price target by 29% to $6.00. Based on the current Calix share price, this implies potential upside of almost 50% for investors over the next 12 months.

Shaw & Partners recently was the co-manager of Calix’s capital raising that raised $60 million via an institutional placement.

The post Why is the Calix share price stooping to a new 12-month low on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Calix, Fortescue, and ResMed shares are sinking
• Why did this ASX All Ordinaries share crash 18% today?
• 3 ASX 300 shares off to the races on Wednesday
• Why is the Calix share price frozen on Wednesday? (Hint: it involves Pilbara Minerals)

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 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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On the raw numbers, shareholders of Qantas Airways Limited (ASX: QAN) should be a happy lot. Qantas shares are up a healthy 13.3% over 2022 thus far. That’s a gain that far outstrips the S&P/ASX 200 Index (ASX: XJO)’s loss of 10%.

Sure, Qantas shares aren’t back to their pre-COVID levels of more than $7 a share. But all could agree that it has been a tough time for the airline in recent years. And Qantas did hit a new post-COVID high earlier this month.

Over the past 12 months, the Qantas share price is also in the green, having recorded gains close to 6%. Again, that’s a lot better than the ASX 200’s loss of 7.2% over the same period. And yet, some shareholders don’t seem to be happy with the company. Or at least with its CEO, Alan Joyce.

According to reporting in the Australian Financial Review (AFR) today, Qantas’ management looks set to face a backlash at the next annual shareholder meeting this Friday.

Qantas shares are having a good year, but AGM could be tense

The report alleges that Joyce and Qantas management could face a possible protest vote against proposed remuneration arrangements for Joyce and the airline’s senior management. This is due to one major proxy firm – ISS. ISS is recommending shareholders vote against the company’s present executive retention scheme. It is doing so from the belief that the set performance targets were not “sufficiently challenging”.

This scheme contains company targets such as cutting $1 billion worth of costs by June 2023 and a return to profitability by the 2023 financial year.

Under the terms, Joyce will be entitled to almost 700,000 Qantas shares, worth around $4 million.

In a report, ISS accused Qantas of giving investors a “false choice” on this vote:

The company intends to make a cash equivalent payment rather than an equity award if shareholder approval is not obtained… The CEO’s remuneration is set well above the market median and has been identified as a high concern for misalignment of pay with underlying company performance over the past three years.

Qantas’ management has reportedly dismissed these concerns, saying that ISS’ arguments “include companies that are far smaller and does not adequately recognise Mr Joyce’s experience or previous performance”.

However, ISS’ concerns are not shared by other proxy groups. Other groups like CGI Glass Lewis and the Australian Council of Superannuation Investors have not recommended stakeholders vote against the scheme.

So it will be interesting to see what happens at the annual general meeting this Friday.

The post Qantas shares are up 13% this year, but could the CEO’s pay still be in jeopardy? appeared first on The Motley Fool Australia.

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More reading

• Could this news be helping the Sayona share price light up today?
• TPG shares lift after revealing plans of ‘unlocking’ more value
• What sent the Imugene share price 6% higher this morning?
• Liontown Resources share price jumps higher on the release of quarterly activities report
• Is this ASX 200 share really offering a dividend yield above 30%?

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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The S&P/ASX 200 Index (ASX: XJO) is back on form on Monday. In afternoon trade, the benchmark index is up 0.85% to 6,842.8 points.

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

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 5% to $19.62. This follows the release of the biopharmaceutical company’s quarterly update. Clinuvel recorded its highest quarterly results from customer receipts since the commencement of commercial operations in Europe in June 2016 and United States in April 2020. The company’s receipts from customers for the quarter were $25.152 million, with net operating expenditures of $8.270 million and net operating cashflow totalling $17.338 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 18% to $2.05. Investors have been buying this document productivity software company’s shares after it received another takeover offer. Canadian graphics software company Alludo has offered $2.00 per share, which is 11% higher than Potentia Capital’s offer of $1.80 per share. Given that the Nitro share price is trading above the offer price, investors appear to believe a bidding war could ensue.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up 5% to $24.97. This has been driven by the release of a trading update from the retail conglomerate after the market close on Friday. That update reveals that global sales for the first 12 weeks of FY 2023 are up 42.8% on the prior corresponding period. This is also a 21.7% increase on the same ‘pre-COVID’ period during FY 2020.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 8% to $1.14. This follows news that the donation platform provider has accepted a NZ$1.34 (A$1.21) per share takeover offer from the Sixth Street and BGH Capital Consortium. This represents a 14.7% premium to the Pushpay share price prior to its trading halt and a 30.1% premium to where its shares were trading before its first takeover offer was received.

The post Why Clinuvel, Nitro, Premier Investments, and Pushpay shares are rising appeared first on The Motley Fool Australia.

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More reading

• Pushpay share price rips 9% ahead on takeover agreement
• Why the Nitro share price is leaping 18% on Monday
• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?
• Nitro share price halted amid improved takeover bid
• Up 7% today, could this ASX All Ords tech share be in for more takeover bids?

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 PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nitro Software Limited and Premier Investments 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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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.

“Space is hard” goes the old saw among space investors. But here’s a new truism you might want to memorize: Space is hard — and it can also be weird.

Investors got their latest lesson in just how strange space investing can get late last month, when NASA revealed that it’s planning a new mission to send a volunteer space mission into orbit to adjust the orbit of the Hubble Space Telescope — and potentially extend the telescope’s lifespan by another 15 to 20 years.  

Cue Elon Musk

It should surprise exactly no one to learn Elon Musk is at the center of this latest “weird space news” story. As NASA explains, the space agency has signed an agreement with SpaceX to study potentially sending a “Polaris Program” mission Crew Dragon spacecraft to Hubble, where it will dock with the telescope and use the engines on the Crew Dragon to lift Hubble to a higher orbit.  

For those not familiar with Polaris, this is the private space initiative set up by pilot, billionaire, and Shift4 Payments (NYSE: FOUR) CEO Jared Isaacman last year. Polaris was initially founded to run the Inspiration4 mission that sent four private astronauts (Isaacman captained the crew) to space for a three-day orbit of the Earth in September 2021.

It has since evolved into a multi-mission project that will launch at least three more times — all aboard SpaceX spaceships — and attempt to set records for the highest Earth orbit crewed mission ever flown, the first private spacewalk, and the first test of SpaceX Starlink laser-based communications from space, to space.  

Which brings us back to NASA — and Hubble.

As NASA advised late last month, Polaris and SpaceX have proposed running a mission “at no cost to the government,” aiming to potentially keep the 32-year-old Hubble Space Telescope in operation into the 2050s. Although there may be some risk in allowing private contractors to take control of the NASA satellite, the alternative is to allow Hubble’s orbit to decay naturally — in which case the spacecraft might fall back to Earth as early as 2030.  

And of course, the fact that the mission would be performed gratis for NASA just adds to the attraction.

Space volunteers

The volunteer nature of this mission, however, does raise some questions for space investors going forward. Chief among them: How are for-profit companies like Northrop Grumman, Boeing, and Lockheed Martin supposed to compete with a company like SpaceX if it’s — even only occasionally — going to run off and do volunteer work for NASA for free?

In this particular case of the Hubble mission, of course, it wouldn’t really be SpaceX volunteering its services. Rather, billionaire Isaacman — who is hiring the SpaceX Falcon 9 rocket ship for his flight anyway — will be picking up the tab.

But in future years, as the cost of spaceflight plummets (in and of itself a problem for space launch companies like the Boeing-Lockheed joint venture United Launch Alliance), the chance that SpaceX might do further missions for free, in order to ingratiate itself to its biggest customer, could rise.

After all, according to SpaceX, once it gets its Starship mega-rocket up and running, the cost of each launch could theoretically fall as low as $2 million — a relative rounding error that could prompt SpaceX to do some missions for free.

And SpaceX isn’t the only space company that’s begun performing science missions for free. Upstart small rocket company Rocket Lab (NASDAQ: RKLB), for example, is promising to send a space probe to Venus sometime next year. With funding provided by philanthropists, MIT, and Rocket Lab’s own cash, the mission could cost as little as $10 million — or about 2% of what NASA pays private contractors to conduct similar missions.  

What it means for investors

Suffice it to say: This is not how for-profit companies ordinarily operate.

And, yes, as a space fan myself — and as a taxpayer — I applaud the idea of private businesses using their own capital, and supplementing it with help from philanthropists, to advance the cause of space exploration. As an investor, however, I do wonder what this might mean for for-profit aerospace companies like Boeing, Lockheed, and Northrop.

The good news is that, according to data from S&P Global Market Intelligence, these three companies in total still enjoy annual “space” revenues in excess of $30 billion, largely paid for by NASA and other big space customers. For the time being at least, there seems to be more than enough paying work to go around.

As the cost of access to space falls, however, and new rivals become unpredictably — and illogically! — willing to do formerly paid-for space work for free, the economics of space investing could become increasingly uncertain.

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

The post Space investing just got weirder appeared first on The Motley Fool Australia.

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Rich Smith has positions in Rocket Lab USA, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lockheed Martin and Shift4 Payments, Inc. 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.

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

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The Sayona Mining Ltd (ASX: SYA) share price is up 2.13% this afternoon amid positive price movements for ASX lithium shares on Monday.

At the time of writing, shares in the lithium explorer are trading at 24 cents each.

Lithium shares are keeping the S&P/ASX 200 Materials Index (ASX: XMJ) in the green in afternoon trade. The index is up 0.31% but is one of the worst-performing sectors so far today.

Fellow lithium companies Pilbara Minerals Ltd (ASX: PLS) is up 3.7%, Core Lithium Ltd (ASX: CXO) is trading 3.88% higher, and Liontown Resources Ltd (ASX: LTR) is up 3.49%.

So why are ASX lithium shares defying the market sell-off in materials on Monday? Let’s investigate.

What’s going on with the Sayona Mining share price?

Something that could have lifted Sayona Mining’s share price to a modest gain is that many lithium companies released their quarterly reports today.

IGO Ltd (ASX: IGO) released its quarterly report this morning, which showed its profits have more than doubled for Q1 23.

My Fool colleague James notes that its success can be chalked up to record spodumene and nickel production.

The quarterlies of Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Lake Resources NL (ASX: LKE) were also well received by the market today.

This positive sentiment could be helping to keep lithium shares in the green, with the knowledge that demand for spodumene remains high.

Certainly, IGO wasn’t the only share involved in the production of components used for electric vehicles to report a positive outlook for the future.

Arafura Resources Limited (ASX: ARU) said its neodymium-praseodymium oxide (NdPr) output is likely to remain strong. It said Chinese aggression towards Taiwan could also lead manufacturers to value producers outside of China, such as in Australia.

Sayona Mining share price snapshot

The Sayona Mining share price is up 85% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is suffering from an 8% loss over the same period.

The company’s market capitalisation is around $1.99 billion.

The post Could this news be helping the Sayona share price light up today? appeared first on The Motley Fool Australia.

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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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The share price of All Ordinaries Index (ASX: XAO) lithium and sustainable metals developer Neometals Ltd (ASX: NMT) is outperforming on Monday.

Its gain follows the release of the company’s quarterly report, showing it burned through around $9.4 million in cash over the three months ended 30 September.

But the market’s seemingly more focused on the positive progress made by the developer of technology to produce sustainable battery metals.

Right now, the Neometals share price is up 2.8%, trading at $1.10.

Let’s take a closer look at today’s news from the All Ords lithium share.

This ASX All Ords lithium share is taking off today

The Neometals share price is joining many of its fellow ASX All Ords lithium shares in the green on Monday as a host of stocks post quarterly updates.

Here are the key takeaways from Neometals’ financial activities in its most recent quarter:

• Used $6 million in operating activities
• Spent $3.3 million in investing activities
• Used $16,000 in financing activities
• Ended the period with $50.8 million in cash and no debts

What else happened during the quarter?

Neometals’ 50%-owned Primobius booked its maiden recycling revenue last quarter.

Meanwhile, the company continued work at its core battery materials business units: its Lithium-ion Battery Recycling Operation, its Vanadium Recovery Project, and its Lithium Chemicals Project.

Additionally, results from trials using products from the company’s Barrambie Titanium and Vanadium Project are expected to be released next month.

Looking beyond that, the project’s pre-feasibility study is on track to be completed in December.

Neometals share price snapshot

The Neometals share price is gaining alongside many of its ASX All Ords lithium peers amid several quarterly updates.

Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Lake Resources NL (ASX: LKE) also dropped quarterlies today. They’re gaining 3.88%, 2.96%, and 3.76% respectively right now.

But unlike many of its ASX lithium peers, the Neometals share price has tumbled in 2022.

It’s dumped 33% year to date. Though, it has gained 10% over the last 12 months.

The post Guess which ASX All Ords lithium share is getting a boost today despite burning through nearly $10m 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 Scott Phillips.

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